Marketing now one PART Chapter 1 Marketing Chapter

Marketing now one PART • Chapter 1: Marketing • Chapter 2: Sustainable marketing • Chapter 3: Strategic marketing Principles of Marketing FIFTH EUROPEAN EDITION Kotler, Armstrong, Wong, Saunders

Video Case: Land Rover (1) • What is the company doing in response to the challenges of globalisation and environmental sustainability? • What is the company’s strategy to remain successful and to compete with the global, volume car manufacturers and the numerous new competitors in the SUV segment originally pioneered by Land Rover? Principles of Marketing 5 e, © Pearson Education 2008 2

Video Case: Land Rover (1) Principles of Marketing 5 e, © Pearson Education 2008 3

Video Case: Land Rover (2) • How and why does the company position the Land Rover brand across global markets such as North America, Africa and emerging countries like China? Principles of Marketing 5 e, © Pearson Education 2008 4

Video Case: Land Rover (2) Principles of Marketing 5 e, © Pearson Education 2008 5

CHAPTER one Marketing Principles of Marketing FIFTH EUROPEAN EDITION Kotler, Armstrong, Wong, Saunders

Previewing concepts (1) • Define marketing and outline the steps in the marketing process • Explain the importance of understanding customers and the marketplace and identify the core marketplace concepts • Identify the key elements of a customer-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy Principles of Marketing 5 e, © Pearson Education 2008 7

Previewing concepts (2) • Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return • Describe sustainable marketing and the major trends and forces that are changing the marketing landscape Principles of Marketing 5 e, © Pearson Education 2008 8

Prelude case: Ryanair Principles of Marketing 5 e, © Pearson Education 2008 9

What is marketing? Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. Principles of Marketing 5 e, © Pearson Education 2008 10

Figure 1. 1 A simple model of the marketing process Understand the marketplace and customer needs Design customer-driven marketing strategy Construct an integrated marketing programme Build profitable relationships and create customer delight Capture value from customers to create profits and customer equity Principles of Marketing 5 e, © Pearson Education 2008 11

Core concepts: Understanding the marketplace and customer needs • • • Needs, wants and demands Market offering Value, satisfaction and quality Exchanges, transactions and relationships Markets and the marketing system Principles of Marketing 5 e, © Pearson Education 2008 12

Market offerings are not limited to physical products Principles of Marketing 5 e, © Pearson Education 2008 13

What is customer value? Customer value is the consumer’s assessment of the product’s overall capacity to satisfy his or her needs. Principles of Marketing 5 e, © Pearson Education 2008 14

What is customer satisfaction? Customer satisfaction is the extent to which a product’s perceived performance matches expectations. If the product’s performance falls short of expectations, the buyer is dissatisfied, but if performance matches or exceeds expectations, the buyer is satisfied. Principles of Marketing 5 e, © Pearson Education 2008 15

Figure 1. 2 Elements of a modern marketing system Principles of Marketing 5 e, © Pearson Education 2008 16

What is marketing management? Marketing management is the art and science of choosing target markets and building profitable relationships with them. Principles of Marketing 5 e, © Pearson Education 2008 17

Selecting a target market Principles of Marketing 5 e, © Pearson Education 2008 18

Value propositions Principles of Marketing 5 e, © Pearson Education 2008 19

Marketing management orientations Production concept Product concept Selling concept Marketing concept Societal marketing concept Sustainable marketing concept Principles of Marketing 5 e, © Pearson Education 2008 20

Figure 1. 3 Selling and marketing concepts Principles of Marketing 5 e, © Pearson Education 2008 21

Figure 1. 4 The societal marketing concept Principles of Marketing 5 e, © Pearson Education 2008 22

Figure 1. 5 The sustainable marketing concept Principles of Marketing 5 e, © Pearson Education 2008 23

Components of an integrated marketing plan • Determine target customers • Create value • Plan marketing mix – – Product Price Place Promotion Principles of Marketing 5 e, © Pearson Education 2008 24

What is customer relationship management? Customer relationship management is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. Principles of Marketing 5 e, © Pearson Education 2008 25

Prius creates customer value Principles of Marketing 5 e, © Pearson Education 2008 26

Outcomes of creating customer value • • Customer loyalty and retention Share of market Share of customer Customer equity Principles of Marketing 5 e, © Pearson Education 2008 27

Figure 1. 4 Customer relationship groups Principles of Marketing 5 e, © Pearson Education 2008 28

The new marketing landscape • Sustainability • Not-for-profit marketing • The electronic marketplace • The global marketplace Principles of Marketing 5 e, © Pearson Education 2008 29

The steps in the marketing process • • (1) analysing marketing opportunities (2) selecting target markets (3) developing the marketing mix (4) managing the marketing effort Principles of Marketing 5 e, © Pearson Education 2008 30

What’s to come • Part 1 • Part 2 – Marketing – Sustainable market – Strategic marketing • Part 3 – The environment – Markets – Marketing research • Parts 4 -7 – Relationship marketing – Segmentation and positioning – Competitive strategy – The marketing mix Principles of Marketing 5 e, © Pearson Education 2008 31

Figure 1. 7 Influences on marketing strategy Principles of Marketing 5 e, © Pearson Education 2008 32

Market leader strategies Market leader Market challenger Market follower Market nicher Principles of Marketing 5 e, © Pearson Education 2008 33

Figure 1. 8 The four Ps Principles of Marketing 5 e, © Pearson Education 2008 34

Four Ps or Four Cs • • Product Price Promotion Place • Customer needs/wants • Cost to the customer • Communication • Convenience Principles of Marketing 5 e, © Pearson Education 2008 35

Figure 1. 9 An expanded model of the marketing process Principles of Marketing 5 e, © Pearson Education 2008 36

Discussing the concepts • Why should we study marketing? • What role does marketing play in satisfying human desires? • What are the differences between the marketing management orientations? • What key challenges face businesses today? • Is the societal marketing concept good for society? Principles of Marketing 5 e, © Pearson Education 2008 37