1. 050121 Principles of Marketing
Suwattana Sawatasuk

2. What is Marketing?

3. What is Marketing?
The process by which companies create value for customers and build strong customer relationships in order to capture value from customer in return.

4. Marketing Process
Create value for customers and build customer relationships
Capture value from customers in return
Understand the marketplace & customer needs & want
Design a customer-driven marketing strategy
Construct an integrated marketing program that deliver superior value
Build profitable relationships and create customer delight
Capture value from customers to create profits and customer equity 1 2 3 4 5

5. Understanding the Marketplace and Customer Needs

6. Customer Needs, Wants, and Demands = ?

7. Customer Needs, Wants, and Demands
Needs = States of felt deprivation
Basic physical needs for food, clothing, warmth, and safety
Social needs for belonging and affection
Individual needs for knowledge and self-expression

8. Customer Needs, Wants, and Demands
Wants = The form human needs take as shaped by culture and individual personality
Dandy needs food but wants to eat sushi at Fuji Restaurant.
When human wants are backed by buying power, wants become demands of products with benefits that add up to the most value & satisfaction.

9. Market Offerings–Products, Services, and Experiences
Market offering = some combination of products, services, information, or experiences offered to a market to satisfy a need or want

10. Marketing Management
The art and science of choosing target markets and building profitable relationships with them
There are 5 alternative concepts under which organizations design and carry out their marketing strategies:
the production, product, selling, marketing, and societal marketing concepts.

11. I. Production Concept
The idea that consumers will favor products that are available and that the organization should therefore focus on improving production and distribution efficiency.

12. II. Product Concept
The idea that consumers will favor products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements.

13. III. Selling Concept
The idea that consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort.

14. IV. Marketing Concept
The marketing management philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.

15. The Selling and Marketing Concepts Contrasted
Make & sell (inside-out)
Starting point
Focus
Means
Ends
The selling concept
Existing products
Selling & promoting
Profits through sales volume
Factory
Sense & respond (outside-in)
The marketing concept
Profits through customer satisfaction
Customer needs
Integrated marketing
Market
The set of actual & potential buyers of product or service

16. V. Societal Marketing Concept
The idea that a company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests.
Society
(Human welfare)
Societal marketing concept
Consumers
(Want satisfaction)
Company
(Profits)

17. Analyzing the marketing environment

18. Marketing Environment
The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers
2 Levels of marketing environment:
Microenvironment
Macroenvironment

19. Microenvironment
The actors close to the company that affect its ability positively or negatively to serve its customers—the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.

20. Microenvironment
The company – top management (mission, objectives, strategies, policies), R&D, purchasing, operations, and accounting
Suppliers
Marketing intermediaries
Competitors
Publics
Customers

21. Microenvironment The company
Suppliers – supply shortages or delays, labor strikes, rising supply costs
Marketing intermediaries
Competitors
Publics
Customers

22. Microenvironment The company Suppliers
Marketing intermediaries – firms that help company to promote, sell, and distribute its goods to final buyers includes resellers, distribution firms, marketing services agencies, and financial intermediaries
Competitors
Publics
Customers

23. Microenvironment The company Suppliers Marketing intermediaries
Competitors
Publics
Customers

24. Microenvironment The company Suppliers Marketing intermediaries
Competitors
Publics – any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives such as financial, media, government, citizen action, local, general, and internal publics
Customers

25. Microenvironment The company Suppliers Marketing intermediaries
Competitors
Publics
Customers – consumer markets, business markets, reseller markets, government markets, and international markets

26. Macroenvironment
The larger societal forces that affect the micro environment—demographic, economic, natural, technological, political, and cultural forces.

27. Macroenvironment
Demography – human populations in terms of size, density, location, age, gender, race, occupation and other statistics
Economic
Natural
Technological
Political
Cultural

28. Macroenvironment Demography
Economic – factors that affect consumer buying power and spending patterns such as income, cost of living, interest rates, and saving and borrowing patterns
Natural
Technological
Political
Cultural

29. Macroenvironment Demography Economic
Natural – shortages of raw materials, natural disaster, increased pollution, increased government intervention
Technological
Political
Cultural

30. Macroenvironment Demography Economic Natural
Technological – forces that create new technologies, creating new product and market opportunities
Political
Cultural
QR Code (2D Bar Code)

31. Macroenvironment Demography Economic Natural Technological
Political – laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society
Cultural

32. Macroenvironment Demography Economic Natural Technological Political
Cultural – forces that affect society’s basic values, perceptions, preferences, and behaviors

33. 1st Assignment: Your Lifestyle
Analyze 1 week in your life on activities, time frame, media you use or face regarding to these categories:
Home
Study
Travel
Rest

34. 1st Assignment : Analyze 1 week in your life on activities, time frame, media you use or face regarding to these categories:
Wake-up
Morning activities
(time/ place/ activity)
(time/ place)
Afternoon activities
(time/ place)
Evening activities (time/ place/ activity)
Bed
Mon
Tue
Wed
Thu
Fri
Sat
Sun