Overview
This lecture introduces marketing concepts, its importance, the marketing process, and key terminology that forms the foundation for further study in marketing.
What is Marketing?
- Marketing is the process of creating value for customers and building strong customer relationships to capture value in return.
- It involves understanding customer needs and wants, designing customer-driven marketing strategies, and developing marketing programs.
Importance of Marketing
- Marketing is crucial for attracting customers, building brand loyalty, and achieving organizational goals.
- Businesses need effective marketing to identify and respond to changing market demands.
The Marketing Process
- The five-step marketing process includes: understanding the marketplace and customer needs, designing a customer-driven strategy, preparing an integrated program, building relationships, and capturing value from customers.
- Successful marketing requires balancing company objectives with the needs and wants of the target market.
Core Marketing Concepts
- Needs are states of deprivation, while wants are needs shaped by culture and personality.
- Demands are wants backed by buying power.
- Market offerings consist of products, services, and experiences offered to satisfy needs and wants.
- Value and satisfaction are influenced by customer expectations and perceived benefits.
- Exchange is the act of obtaining a desired object by offering something in return; marketing consists of actions to build and manage customer relationships.
The Marketplace and Customers
- The marketplace includes all potential customers who share a need or want and are willing and able to buy.
- Marketers must identify and understand target markets to effectively meet customer needs.
Key Terms & Definitions
- Marketing — the process of creating customer value and relationships to capture value from customers.
- Market Offering — a product, service, or experience offered to satisfy a need or want.
- Needs — basic human requirements, such as food, clothing, and shelter.
- Wants — needs shaped by culture and personal preferences.
- Demand — wants backed by purchasing power.
- Exchange — obtaining a desired object by offering something in return.
- Customer Value — the difference between benefits gained and costs to obtain a product or service.
Action Items / Next Steps
- Review the five-step marketing process in detail.
- Reflect on how marketing adds value in real-world examples.