Introduction to Marketing

  • Instructor: UAungChitKhin, Founder/President
  • Qualifications: MBA (Nottingham), Dip M, PG Dip M (CIM)

Key Concepts in Marketing

Identification and Anticipation of Requirements

  • Current and Future Requirements: Marketing plays a crucial role in identifying, anticipating, and satisfying customer needs and wants.
  • Definition of Marketing:
    • Marketing is defined by the Chartered Institute of Marketing as the management process responsible for identifying, anticipating, and satisfying customer requirements profitably.

Customer Expectations

  • Key Elements:
    • Price & Promotion
    • Experience the 7Ps Marketing Mix
  • Perceived Costs vs. Perceived Benefits:
    • Balance between perceived costs and benefits is essential for customer satisfaction.
    • Marketing should aim to manage both sides: promise just enough but deliver more to delight customers.
    • Reduction of perceived costs while increasing value is crucial for building customer loyalty and generating recommendations leading to repeat purchases.

Core Definitions in Marketing

  • Needs: Basic human requirements like food, shelter, and safety.
  • Wants: Specific desires shaped by culture and individual personality (e.g., wanting a hamburger instead of just food).
  • Demand: When wants are backed by purchasing power.
  • Customer Value: The perception of what a product or service is worth to a customer versus the possible alternatives.
  • Company Value: The financial evaluation of an organization's worth which can be improved with customer satisfaction and loyalty.

Business Philosophies in Marketing

Product Orientation

  • Definition: A philosophy believing that quality products will sell themselves.
  • Criticism: The notion of quality is subjective and varies from customer to customer.
  • Context: Commonly seen in technology-driven companies.

Selling Orientation

  • Definition: Assumes that aggressive sales techniques will ensure success, e.g., "a good salesman can sell a refrigerator to an Eskimo".
  • Focus: Prioritizes short-term sales targets over customer relationships.

Marketing Orientation

  1. Customer Focus: Starts and ends with customers; prioritizes customer information and satisfaction.
  2. Organizational Integration: Involves the entire team in ensuring customer satisfaction and profitability.
  3. Mutually Profitable Exchanges: Strives for win-win situations, offering high customer value at a low cost to the business.

Evolution of Marketing Strategies

The Old Way of Marketing

  • Process:
    • Make
    • Sell
  • Objective: Short-term profit.

The New Way of Marketing

  • Focus: Creating and Capturing Customer Value.
  • Goals:
    • Understand the marketplace and customer needs and wants.
    • Create value for customers and develop strong customer relationships.
    • Design a customer-driven marketing strategy.
    • Construct an integrated marketing program that delivers superior value.
    • Build profitable relationships and create customer delight.
    • Capture value from customers, resulting in profits and customer equity.

The 7Ps and 7Cs Marketing Mix

  • 7Ps:

    • Product: What is being sold
    • Price: Cost to the customer
    • Place: Where it is available
    • Promotion: Communication strategies used
    • People: Those involved in the transaction
    • Process: The flow of activities leading to delivery
    • Physical Evidence: Tangibles that support service delivery

  • 7Cs:

    • Customer Value: Focus on value delivered to the customer.
    • Cost: The total cost to the customer, not just the price.
    • Convenience: Ease of access to products/services.
    • Communications: Information exchanges, ensuring clarity and understanding.
    • Consideration: Customer involvement in the process.
    • Coordination: Internal synchronisation of efforts across teams.
    • Confirmation: Proof of service quality and delivery satisfaction.