MARKETING PRINCIPLES (MP) UNIT 02: CBM 102 - MARKETING PRINCIPLES - PowerPoint PPT Presentation

Unit 02: CBM 102 MARKETING PRINCIPLES (MP)

UNIT 02: CBM 102 - MARKETING PRINCIPLES (MP) LEARNING OUTCOMES Understand the concepts and scope of marketing 2.1 2.2 Understand the elements of the marketing mix 2.3 Explain the concept of Segmentation, Targeting and Positioning 2.4 Describe the types of marketing research and stages of consumer behaviour

LESSON ONE Understand the concepts and scope of marketing

What is Marketing? DEFINITION Identifying Marketing is the management process responsible for identifying , anticipating and satisfying Customer needs customers’ requirements profitably Satisfying Anticipating (Chartered Institute of Marketing)

EVOLUTION OF THE CONCEPTS  Production Concept  Product Concept  Selling Concept  Marketing Concept

MARKETING MYOPIA IS A MISTAKE! Marketing myopia is a term coined by Theodore Levitt. A business suffers from marketing myopia when a company views marketing strictly from the standpoint of selling a specific product rather than from the standpoint of fulfilling customer needs.

THE MARKETING CONCEPT The marketing concept is a management philosophy that ‘achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do’ . (Philip Kotler – 12 th edition) Marketing concept Customer orientation Integrated effort Goal achievement

The Societal Marketing Concept Organization task is to determine the needs wants and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumers and society’s well -being Two other responsibilities were highlighted in the above concept: 1. Company should follow ethics 2. Companies should look after the society and nature (Corporate Social Responsibility - CSR)

Question Identify 3 benefits of following marketing concept?

Customers 1. Customer value 2. Customer satisfaction 3. Customer loyalty

1. CUSTOMER VALUE Customer value is dependent on how the customer perceives the benefits of an offering and the sacrifice that is associated with its purchase. Customer value = Perceived Benefits – Perceived Sacrifice

2. CUSTOMER SATISFACTION Customer satisfaction occurs when perceived performance matches or exceeds expectations

3. CUSTOMER LOYALTY Customer loyalty is both an attitudinal and behavioral tendency to favor one brand or an organisation over all others

Question Discuss why customers purchase/visit the following products/services/places?  Keells Supermarket  Sampath Bank  HSBC credit cards  Anchor butter  Maruti cars

WHAT IS RELATIONSHIP MARKETING? Relationship marketing is the process of creating, building up and managing long-term relationships with customers, distributors and suppliers. It aims to change the focus from getting customers to keeping customers.

INTERNAL MARKETING Internal Marketing (IM) is an ongoing process that occurs strictly within a company or organization whereby the functional process is to aligns, motivates and empowers employees at all management levels to consistently deliver a satisfying customer experience . Any time a customer interacts with an employee, it affects their overall satisfaction. Therefore, customer satisfaction is deeply dependent on the performance of a company's staff. IM is the use of the appropriate tools of marketing to create a suitable culture, usually one which places the customer at the centre of what the firm does.

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