Principles of
Marketing - I
Module 1
Dr. Neha Singh Agarwal
Marketing: Creating Customer Value & Engagement
What is Marketing?
Understanding the Market place and Customer needs
Designing a customer value-driven marketing strategy
Managing customer relationships and capturing customer value
Tell me Marketing Campaign
that you really really liked?
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What is
Marketing
anyway?
Social Media Print and Video Ads
Retail Research
Personal Branding/PR
and sooo much more…
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[Link]
Marketing is a Quality
Convenience
process by which
companies create Affordability
value for customers Brag Value?
and build Strong
Customer
Relationships in
order to capture
Money
value from (Profits)
customers in return. Word of
Customer
Mouth
Equity
- Philip Kotler
The Gamut of Marketing
Market research, branding, advertising, sales The American Marketing Association (AMA) has stated that, marketing is the activity, set of
promotion, and other marketing activities are institutions, and processes for creating, communicating, delivering, and exchanging offerings that
all necessary for this goal. have value for consumers, clients, partners, and society at large.
Marketing vs.
branding vs.
advertising
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Marketing vs. Branding vs. Advertising
Marketing is how a business plans to reach people and get
them interested in its products or services.
Advertising is when a business pays to show messages (like
ads on TV or social media) to promote something.
Branding is how a business creates its unique look, name, and
feel so people remember and trust it.
Some examples of
Genius out-of-box
marketing strategies
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Burger King’s Marketing Masterstroke
Campaign – “Whopper Detour”
Burger King’s Whopper Detour promotion used
geofencing technology to reportedly mark 14,000
McDonald’s locations across the US.
Unlocked when users came within 600 feet of a
McDonald’s restaurant, all they had to do was download
BK’s app, drive to McDonald’s and automatically receive a
mobile coupon for a 1-cent Whopper.
Burger King’s Marketing Masterstroke
PC: [Link]
Burger King’s Marketing Masterstroke
Mobile sales tripled during the promotion with more than
500,000 Whoppers redeemed (more than 40 times Burger
King’s past digital-coupon-redemption record).
Burger King’s app rose to #1 in the US Google Play and
Apple app stores in 48 hours.
After the promotion, Burger King continued to sell twice
the amount through its app compared to sales before the
campaign.
Redbull’s Empty Cans Strategy
Campaign – “Rubbish Bins”
Over the span of a couple of months, the team filled
London’s rubbish bins with empty cans of Red Bull. Not
only this, but they gave out free samples to DJs and left
cans lying around outside of clubs.
Consumers assumed that Red Bull was popular for a
reason, which steadily began to influence purchasing
decisions. Seeing empty cans repeatedly made people
feel they were missing out on something popular or
exclusive.
Why did it work
The outcome
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What can be Marketed?
Several categories can be marketed, such as goods, services, events, experiences, persons, places, properties, organizations,
information, and ideas.
Goods Services
THE MARKETING PROCESS
Engage Customers
Understanding
and Build Profitable
Customers
Relationships
Design a Customer Construct an
Value Driven Integrated
Strategy Marketing Mix
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1. Understanding
the Marketplace
and Customer
Needs
Needs, wants and demands of the consumers
Needs are states of felt deprivation.
Conclusion
Needs Human needs are nothing but basic requirements that include food, clothing
and shelter. Needs are things that meet the
basic essential requirements of
Example: Food, Education, Healthcare.
people.
Wants are the form human needs take as they are shaped by
culture and individual personality. Wants are requests made for a
specific type of items.
Wants
Example: A consumer needs food to survive, but she/he may want a
hamburger from Wendy's. Demands are requests for specific
products that the buyer has the
Many people want to own a Jaguar, but only a few can afford to buy one. capacity to buy.
Demands Demand comes in to picture here.
Demands are human wants that are backed by buying power.
Market, Market Offerings, and Exchange
A Market is set of actual and potential buyers.
Market offerings are some combination of products,
services, information, or experiences offered to a market
to satisfy a need or want.
Exchange is the act of obtaining a desired object from
someone by offering something in return.
Customer Value and Customer Satisfaction
4. Customer Value difference between the total benefits expected from a product or service
and the total costs incurred to obtain it.
5. Customer Satisfaction difference between the actual performance experienced by a
customer and their expectations
Actual Performance
The Footwear was very (of the product) Customer Customer
comfortable, lasted me 5 good Satisfaction Retention
years, and I got a lot of
compliments.
I expected the footwear to not Expected Benefits
hurt, and last at least 2 years.
Customer
Value
I Bought a footwear worth
Cost Incurred to (perceived
5,000, after a lot of searching benefits)
obtain the product
6. Marketing myopia is focusing only on existing wants and losing sight of underlying
consumer needs.
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[Link]
2. Designing a
customer value
driven marketing
strategy & plan
Why Stress on Customers?
Building strong customer relationships
What is the revenue of Amazon?
7,15,09,840 Rupees
Per Minute
Second largest in the world
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Timeline
sold
consumer
Started as video games AWS
electronics, Amazon
an online and other (Amazon Kindle e- Amazon
software, Music and Amazon Air
bookseller multimedia Web reader Echo
homeware, Prime Video 2023
(1995) in 1998 Services) 2007 2014
toys and 2014
more 2006
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Building strong
customer relationships
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• Jeff Bezos in 1999
• [Link]
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1. Makes each customer’s interaction uniquely personal – even
without human interaction
2. Large offerings – huge selection, good value, low prices
3. Community – browse, research, share opinions & reviews
4. Going above & beyond – One click purchase
- same day delivery
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Marketing Strategy
To design a winning Marketing Strategy, two
Questions needs to be answered:
1) What customers will we serve?
(Target Market)
2) How can we serve these
customers best? (Value Proposition)
The concept of Value Proposition
A brand’s value proposition is the set of
benefits or values it promises to deliver to
customers to satisfy their needs.
Value Proposition can arise out of product
characteristics, or can be made up through
good marketing. Ex. Perfumes/Deos
For Ex. Amazon’s Value Proposition is:
Variety, low cost, ease of use, delivery speed
Change in Value Propositions over the years
Societal
Production Product Selling Marketing
Marketing
concept concept concept concept
concept
Selling Vs. Marketing Concept
Inside Out
Approach
Outside In
Approach
Societal Marketing Concept
Societal marketing:
The company’s marketing
decisions should consider
consumers’ wants, the
company’s requirements,
consumers’ long-run
interests, and society’s
long-run interests.
3. Construct
an Integrated
Marketing Mix
The concept of Integrated Marketing Mix
The marketing mix is comprised of a set
of tools known as the four Ps:
• product
• price
• promotion
• Place
Integrated marketing program—a
comprehensive plan that communicates
and delivers intended value
NIKE – IMC Example
Advertising Digital Marketing Personal Selling Co-Branding
Public Relations –
Sales Promotions Guerilla Marketing Community Engagement
Sponsorships
4. Managing
Customer
Relationships
and Capturing
Customer Value
Managing Customer
Relationships and
Capturing Customer Value
Customer relationship management—
the overall process of building and
maintaining profitable customer
relationships by delivering superior
customer value and satisfaction
(refer to Amazon’s Case discussed in the
beginning)
Managing Customer
Relationships and Capturing
Customer Value
Customer-Engagement Marketing
Fosters direct and continuous customer
involvement in shaping brand
conversations, experiences, and
community.
Can you think of companies that have used Facebook,
Twitter, Instagram, Snapchat, or other social networks
for marketing purposes
Managing Customer
Relationships and
Capturing Customer Value
Consumer-Generated Marketing
(UGC)
Brand exchanges created by consumers
themselves.
Consumers are playing an increasing
role in shaping brand experiences.
Class Activity: Reposition a Brand
• Form a group
• Choose a brand of your liking
• Understand the current Target Audience and Value Proposition
through research
• Identify a new segment the brand has not yet captured. Craft a
new value proposition statement that speaks directly to this
segment.
• Suggest how the brand can tweak its offerings, communication,
or distribution to align with this new proposition.
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