Chapter 1 Foundations of Marketing

Chapter 1: Introduction to
Marketing
Ms. DANG THI MAI HUONG (SARAH)
Faculty of Economics and Management
International School of Thai Nguyen University
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Topic Outline
• Define marketing and outline the steps in the
marketing process
• Understanding the Marketplace and Customer
Needs
• Designing a Customer-Driven Marketing Strategy
• Preparing an Integrated Marketing Plan and
Program
• Building Customer Relationships
• Capturing Value from Customers
• The Changing Marketing Landscape
• The Importance of Marketing in Our Global
Economy


What Is Marketing?
Marketing is a process by which companies create
value for customers and build strong customer
relationships to capture value from customers in
return


• Marketing is the activity, set of institutions, and

processes
for
creating,
communicating,
delivering, and exchanging offerings that have
value for customers, clients, partners, and
society at large (According to American
Marketing Association)


 Marketing are activities of a company
associated with buying and selling a product or
service. It includes advertising, selling and
delivering products to people
Investopedia />

The Marketing Process


Understanding the Marketplace
and Customer Needs
Core Concepts
• Customer needs, wants, and demands
• Market
• Market offerings
• Customer Value and satisfaction
• Exchanges and relationships


Needs

• Human needs are the basic requirements.


Maslow’s Hierarchy of Needs


Maslow’s Hierarchy of Needs
• Physioligical needs:
• Physiological needs deal with the maintenance
of the human body. This lowest category
includes the most basic needs that are vital to
survival such as the need for food, air, water……


Maslow’s Hierarchy of Needs
• Safety needs:
• Safety needs are about keeping us safe from
harm. These needs include shelter, job
security……


Maslow’s Hierarchy of Needs
• Social needs or Belongingness:
• These are the needs for belonging, love as well
as for relationships with family and friends.
These needs are met through pleasing and
fulfilling relationship with others.


Maslow’s Hierarchy of Needs

• Esteem needs:
• After the more basic needs have been satisfied ,
esteem needs becomes important to an
individual.
• Esteem needs are for a higher position within a
group act to foster pride in their work and in
themselves as individuals.
• These needs include self-esteem, respect…..


Maslow’s Hierarchy of Needs
• Self-actualization:
• This is the highest level of Maslow’s hierarchy.
This level of needs pertains to what a person’s
full potential is and realizing that potential. “What
a man can be, he must be”. It’s the desire to
become everything.


Wants
 Wants are the desired which are not necessary
for survival of human beings.
 For example:
+) Many people want to have BMW car but most of
them do not have enough money to purchase it.
+) An American eat food but want to eat burger and
French fries.


Demands

 Demand is the willingness and ability of consumer
to purchase a product.
Example: Many people wants to have expensive car,
house and cloths but only few are able to buy it.


Look at the following pictures and distinguish
which pictures belong to needs and wants


Market
Markets are the set of actual and potential buyers
of a product or service
Market is an open place or a covered building
where buyers and sellers convene for the sale of
goods.
Example: famers’ market, meat market


• Market offerings are some combination of
products, services, information, or experiences
offered to a market to satisfy a need or want
• Marketing myopia is focusing only on existing
wants and losing sight of underlying consumer
needs


Customer Value and Satisfaction
Expectations
Customers

• Value and
satisfaction

Marketers
• Set the right level of
expectations
• Not too high or low


Exchange is the act of obtaining a desired
object from someone by offering something in
return


Designing a Customer-Driven
Marketing Strategy
Marketing management is the art and science of
choosing target markets and building profitable
relationships with them
– What customers will we serve?
– How can we best serve these customers?


Selecting Customers to Serve
Market segmentation refers to dividing the
markets into segments of customers
Target marketing refers to which segments to go
after

Selecting Customers to Serve
Demarketing is marketing to reduce demand
temporarily or permanently; the aim is not to
destroy demand but to reduce or shift it


Choosing a Value Proposition
• The value proposition is the set of benefits or
values a company promises to deliver to
customers to satisfy their needs