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 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 12345 Create value for customers and build customer relationships Capture value from customers in return

5. UNDERSTANDING THE MARKETPLACE AND CUSTOMER NEEDS

6. 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

7. 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.

8. 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

9. 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.

10. 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.

11. 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.

12. 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.

13. 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.

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

15. 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. Societal marketing concept Society (Human welfare) Company (Profits) Consumers (Want satisfaction)

16. ANALYZING THE MARKETING ENVIRONMENT

17. 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

18. 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.

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

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

21. 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

22. Microenvironment The company Suppliers Marketing intermediaries Competitors Publics Customers

23. 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

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

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

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

27. 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

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

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

30. 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

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