050121 Principles of Marketing Suwattana Sawatasuk

What is Marketing?

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.

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

Understanding the Marketplace and Customer Needs

Customer Needs, Wants, and Demands = ?

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

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.

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

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.

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.

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.

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.

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.

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

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)

Analyzing the marketing environment

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

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.

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

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

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

Microenvironment The company Suppliers Marketing intermediaries Competitors Publics Customers

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

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

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

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

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

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

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

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

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

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

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