MARKETING
PRINCIPLES
AND
STRATEGIES
Objectives
1. Define and understand
marketing;
"Why do people buy what they
buy? What drives their choices?"
What is a
Market?
Market
A market is a platform, space, or system
where buyers and sellers come together to
exchange goods, services, or information.
This exchange can happen physically (e.g.,
a marketplace or store) or virtually (e.g.,
online marketplaces or digital platforms).
What is Marketing?
•Managing profitable customer relationships
•Satisfying customer needs
•Marketing is a social and managerial process by which
individuals and organizations obtain what they need and
wants through creating and exchanging value with
others.
•The process by which companies create value for
customers and build strong customer relationships to
capture value from customers in return.
Understanding the
Marketplace and Customer
needs
As a first step, marketers need to
understand customer needs and wants and
the marketplace in which they operate. We
examine five core customer and
marketplace concepts: need, wants, and
demands; market offerings (products,
services, and experiences; value and
Customer Needs, Wants and
Demands
Human needs/Customer needs – refer to the essential
requirements, expectations, and desires that customers seek to
fulfill when purchasing products or services.
Wants - refer to the specific desires, preferences, or choices
customers express to satisfy their underlying needs.
Demands - refer to the specific products, services, or
experiences that customers are both willing and able to purchase
to satisfy their needs and wants. Demands are influenced by a
combination of customer needs, wants, and their purchasing
power.
Market Offerings – Product,
Services and Experience
Consumers’ needs and wants are fulfilled
through market offerings – some combination
of products, services, information, or
experiences offered to a market to satisfy a
need or a want. Market offerings are not limited
to physical products. They also include services
- activities or benefits offered for sale that are
essentially intangible and do not result in the
Customer Value and
Satisfaction
Customer Value is more about the objective
comparison between what customers get and what
they give up. It's a pre-purchase concept that helps
customers decide whether the product is worth
considering.
Customer Satisfaction is a post-purchase concept
that focuses on the overall experience after customers
have used the product or service. It's directly
influenced by how well the customer’s expectations
Exchange and Relationships
Exchange - refers to the fundamental process in marketing where
two or more parties give something of value to each other in order
to satisfy their respective needs or wants. It is the act of trading
goods, services, or value in return for something else—usually
money, but it can also involve time, effort, or other resources.
Relationship - the approach of building long-term relationships
with customers rather than focusing solely on individual
transactions. It is about creating a connection and ensuring
customer satisfaction over time, which often leads to repeat
business and customer loyalty.
Markets
In marketing, a market refers to a group of
potential customers or entities who have the
desire, ability, and willingness to purchase a
product or service. Markets can be defined in
many ways, such as by geography,
demographics, behaviors, or other
characteristics. Understanding markets is
essential for businesses to tailor their marketing
Types of Market
Consumer market - This is the market where products and
services are sold to individual consumers for personal use.
Business Market (B2B - Business to Business) - In this
market, businesses sell products or services to other businesses.
Industrial Market - This is a subset of the business market
where goods are sold to organizations that use them to produce
other products.
Reseller Market - Involves businesses that buy products to sell
them again rather than using them for production.
Government Market - Government agencies
and institutions that purchase goods and services
for public use or to serve government functions.
International Market - This market involves
businesses selling products or services across
national borders.
