armstrong_mai13_inppt_01

Marketing Overview

• Authors: Gary Armstrong, Philip Kotler, Marc O. Opresnik

• Edition: Thirteenth Edition, Global Edition, Pearson

• Focus: Creating customer value and engagement

Learning Objectives

• 1-1: Define marketing and outline the steps in the marketing process.

• 1-2: Explain the importance of understanding the marketplace and customers, identifying the five core marketplace concepts.

• 1-3: Identify key elements of a customer value-driven marketing strategy and discuss marketing management orientations.

• 1-4: Discuss customer relationship management, strategies for creating and capturing value.

• 1-5: Describe major trends and forces changing the marketing landscape in the age of relationships.

What Is Marketing?

• Definition: Marketing is engaging customers and managing profitable customer relationships.

• Goals of Marketing:

  • Attract new customers by promising superior value.

  • Retain and grow current customers by delivering satisfaction.

Forms of Marketing

Traditional Marketing

• Focus on making a sale.

• Abundance of products in shopping centers.

• Utilizes television, magazine, and direct-mail ads.

Contemporary Marketing

• Focus on satisfying customer needs.

• Makes use of engaging websites, mobile apps, blogs, videos, and social media.

• Engages customers directly, personally, and interactively.

The Marketing Process

• Steps Include:

  • Understand the marketplace and customer needs.

  • Create value for customers and build relationships.

  • Design a customer value-driven marketing strategy.

  • Construct an integrated marketing program that delivers superior value.

  • Engage customers and capture value from them.

Understanding the Marketplace and Customer Needs

Five Core Marketplace Concepts

1. Needs, Wants, and Demands

2. Market Offerings (Products, Services, Information)

3. Value and Satisfaction

4. Exchanges and Relationships

5. Markets

Needs, Wants, and Demands Explained

• Needs: States of felt deprivation (e.g., physical, social, individual).

• Wants: Needs shaped by culture and individual personality.

• Demands: Wants that are backed by buying power.

Market Offerings

• Consists of products, services, information, or experiences offered to satisfy needs.

• Marketing Myopia: Focus on specific products rather than the benefits and experiences they provide.

Customer Value and Satisfaction

• Customers have expectations about value and satisfaction from market offerings.

• Satisfied customers are likely to repurchase; dissatisfied ones may turn to competitors.

• Importance of setting the right expectations:

  • Low expectations may fail to attract buyers.

  • High expectations may lead to disappointment.

Exchanges and Relationships

• Exchange: Act of obtaining a desired object by offering something in return.

• Marketing focuses on creating, maintaining, and growing desirable exchange relationships.

• Strong relationships are built on consistently delivering superior customer value.

Markets

• Comprised of all actual and potential buyers of a product.

• Customer-managed relationships: Emphasizes consumer engagement and interaction.

Designing a Customer Value-Driven Marketing Strategy

• Marketing Management: Involves choosing target markets and building relationships.

• Key Elements: Market segmentation, target marketing, and choosing a value proposition.

Marketing Management Orientations

1. Production Concept

2. Product Concept

3. Selling Concept

4. Marketing Concept

5. Societal Marketing Concept

Marketing Mix

• Four Ps of Marketing:

  • Product: What to offer.

  • Price: How much to charge.

  • Place: Where to sell.

  • Promotion: How to communicate about the product.

Customer Relationship Management (CRM)

• Focuses on delivering superior value and satisfaction.

• Customer-perceived value: Evaluation of a marketing offer relative to competitors.

• Customer satisfaction: Alignment of product performance with expectations.

Creating Customer Loyalty and Retention

• Importance: Retaining customers is economically beneficial.

• Customer Lifetime Value: Total purchases a customer makes over their lifetime.

• Customer Defections: Can lead to significant losses due to lost lifetime value.

Customer Engagement Marketing

• Makes the brand a relevant part of consumers’ lives.

• Requires companies to market by attraction, engaging through meaningful conversations.

Major Trends Shaping Marketing Landscape

1. Digital Age: Leveraging online and mobile platforms.

2. Changing Economic Environment: Increased focus on value and practicality post-recession.

3. Growth of Not-for-Profit Marketing: Effective marketing strategies attracting support and engagement.

4. Rapid Globalization: Local and global perspectives affecting marketing decisions.

5. Sustainable Marketing: Need for corporate ethics and social responsibility.

Updated Marketing Process Model

• Additional Considerations:

  • Researching customers and marketplace.

  • Managing marketing information and data.

  • Partner relationship management.

  • Ensuring environmental and social responsibility.

Review Questions

• 1-1: Define marketing and outline the marketing process.

• 1-2: Discuss the importance of needs, wants, and demands in shaping marketing activities.

• 1-5: Explain technology's impact on marketing.