Principles of Marketing

A Global Perspective

CHAPTER 1
Introduction to Marketing

Pham Vu Thuy Chi FPT School of Business

Learning Objectives
After studying this chapter, you should be able to:

1. Define marketing and outline the steps in the marketing process

2. Explain the importance of understanding customers and the marketplace, and identify the five core marketplace concepts 3. Identify the key elements of a customer-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy

4. Describe the major trends and forces that are changing the marketing landscape in this age of relationships

Warm-up Game

How many brands do you encounter in a normal day?

Take-away
You cant get very far into a day without bumping into marketing and what the whole marketing system does for you. It affects every aspect of our lives often in ways we dont even consider

Marketing is about bringing values to customers and to the society

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

What is Marketing?
The Marketing Process

Step 1 - Understanding the Marketplace and Customer Needs

Needs, wants, demands

markets

Marketing offerings

5 core concepts

Exchanges and relationships

Value and satisfaction

Step 2 - Designing a Customer-Driven Marketing Strategy

Marketing Management
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?

Step 2 - Designing a Customer-Driven Marketing Strategy

What orients your marketing strategy?

The Product

Sales Revenue

Production Process

Customers

Social values

Designing a Customer-Driven Marketing Strategy

Marketing Management Orientations
Production concept

Product concept
Selling concept

Marketing concept Societal concept

Step 3 - Preparing an Integrated Marketing Plan and Program

An integrated marketing program is a comprehensive plan that communicates and delivers the intended value to chosen customers.

Step 4 - Building Customer Relationships

Customer relationship management (CRM) is the overall process of building and maintaining profitable customer relationships by delivering superior value and satisfaction.

Step 5 - Capturing Value from Customers

Creating Customer Loyalty and Retention
Customer lifetime value is the value of the entire stream of purchases that the customer would make over a lifetime of patronage.

Building Customer Equity

Customer equity is the total combined customer lifetime values of all of the companys customers.

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New Marketing Trends

Group Presentation
In your opinion, what is the most significant change in marketing in recent years?
Provide examples to illustrate your points What are the advantages of this new trend and the challenges to business?

The New Marketing Landscape

Major Developments
Digital age Globalization

Ethics and social responsibility

Not-for-profit marketing

The New Marketing Landscape

The New Digital Age
More values to customers

Market research
Learning about and tracking customers Create new customized products

Distribution
Communication Video conferencing Online data services

The New Marketing Landscape

The New Digital Age Internetcreates marketplaces and marketspaces
Information Entertainment

Communication Social Networking

Social Media Revolution

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The New Marketing Landscape

Rapid Globalization The world is smaller.

Think globally, act locally.

The New Marketing Landscape

The Call for More Ethics and Social Responsibility

Marketers are being called upon to take greater responsibility for the social and environmental impact of their actions in a global economy.

The New Marketing Landscape

The Call for More Ethics and Social Responsibility

Social marketing campaigns encourage energy conservation and concern for the environment or discourage smoking, excessive drinking, and drug use.

The New Marketing Landscape

The Growth for Not-for-Profit Marketing Colleges

Hospitals Museums Zoos

Orchestras Religious groups

Summary
Key concepts in marketing The marketing process

The new marketing landscape Read Reviewing the Concepts

Marco Breu, Brian S. Salsberg, and H Thanh T (2010). Growing up fast: Vietnam discovers the consumer society. McKinsey Quarterly. August 2010. (Optional)

Homework
Applying the Concepts Q1
Discussing the Concepts Q6