S1 Introduction

5/1/2021
PRINCIPLES OF MARKETING
Lecturer: Assoc.Prof.Dr. Nguyen Thi Tuyet Mai
Chapter One
Creating Customer Value and

engagement
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Introduction
• Study
 BA: NEU
 MBA: Boise State University
 Ph.D. (in marketing): National University of Singapore
• Teaching
 National Economics University (NEU)
 National University of Laos
 Washington State University (USA)
 Chuo University; Doshisha University (Japan)
• Research & consulting
 Marketing (consumer behavior & macromarketing)
 Entrepreneurship
 Knowledge creation & management
 Working: Faculty of Business Management
Creating and Capturing

Customer Value
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
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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
The customers
• What do customers buy?

Benefits!
• Where is the value of a
product found?
In the customer’s
mind!
• People are different with
different needs, wants & tastes.
Therefore, product values are
different.
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Important Point: don’t

focus on the product,
focus on the benefit
Ad suggests that drinking

more orange juice can
fight cancer
The product is juice, but

the benefit is health
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Definition of Marketing
• Marketing is the management

process for identifying,anticipating
and satisfying customer
requirements profitably
(….requirements whilst achieving the
goals of the organisation)
The Chartered Institute of Marketing
Definition of Marketing
• The object of a business is not to

make money. The object of a
business is to serve its customers -
the result is to make money
John Frazer- Robinson 1998
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Understanding the Marketplace

and Customer Needs
Core Concepts
• Customer needs, wants, and demands
• Market offerings
• Customer Value and satisfaction
• Exchanges and relationships
• Markets
Key concepts in marketing
Marketing
concept
Exchange and
Relationship
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and Customer Needs
Customer Needs, Wants, and Demands
• States of deprivation
• Physical—food, clothing, warmth, safety
Needs • Social—belonging and affection
• Individual—knowledge and self-expression
• Form that human needs take as they are shaped by

Wants culture and individual personality
Demands • Human wants backed by buying power
Give examples!

and Customer Needs
• 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
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and Customer Needs
Customer Value and Satisfaction
Expectations
Customers
• Value and
satisfaction
Marketers
• Set the right level of
expectations
• Not too high or low

and Customer Needs
Exchange is the act of obtaining a

desired object from someone by offering
something in return
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and Customer Needs
Markets are the set of actual and

potential buyers of a product or service
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?
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Marketing Strategy
Selecting Customers to Serve
Market segmentation refers to dividing

the markets into segments of customers
Target marketing refers to which
segments to go after
Marketing Strategy
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
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Marketing Strategy
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
Marketing Strategy
Marketing Management Orientations
Production Product Selling Marketing Societal

concept concept concept concept concept
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Pepsi
Social
Marketing concept Production
concept
Marketing
Modern concepts Product
Marketing concept
New concept
Selling
concept
Marketing Strategy
Production concept is the idea that

consumers will favor products that are
available or highly affordable
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Marketing Strategy
Product concept is the idea that

consumers will favor products that offer
the most quality, performance, and
features. Organizations should
therefore devote its energy to making
continuous product improvements.
Marketing Strategy
Selling concept is the idea that

consumers will not buy enough of the
firm’s products unless it undertakes a
large scale selling and promotion effort
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Marketing Strategy
Marketing concept is the idea that

achieving organizational goals depends
on knowing the needs and wants of the
target markets and delivering the
desired satisfactions better than
competitors do
Marketing Strategy
Societal marketing concept is the idea

that a company should make good
marketing decisions by considering
consumers’ wants, the company’s
requirements, consumers’ long-term
interests, and society’s long-run
interests
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Preparing an Integrated Marketing

Plan and Program
• The marketing mix is the set of tools
(four Ps) the firm uses to implement its
marketing strategy. It includes product,
price, promotion, and place.
• Integrated marketing program is a
comprehensive plan that communicates
and delivers the intended value to
chosen customers.
Building Customer Relationships

Customer Relationship Management
(CRM)
• The overall process of building and

maintaining profitable customer
relationships by delivering superior
customer value and satisfaction
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Relationship Building Blocks: Customer
Value and Satisfaction
Customer Customer
perceived value satisfaction
• The difference • The extent to
between total which a
customer value product’s
and total perceived
customer cost performance
matches a
buyer’s
expectations
Partner relationship management

involves working closely with partners in
other company departments and
outside the company to jointly bring
greater value to customers
HOW?
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Partner Relationship Management
• Partners inside the company is every
function area interacting with customers
– Electronically
– Cross-functional teams
• Partners outside the company is how
marketers connect with their suppliers,
channel partners, and competitors by
developing partnerships
The New Marketing Landscape
Major Developments
Rapid
Digital age
globalization
Ethics and
Not-for-profit
social
marketing
responsibility
17

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5/1/2021

Lecturer: Assoc.Prof.Dr. Nguyen Thi Tuyet Mai

Creating Customer Value and

Creating and Capturing

Marketing is a process by which

• What do customers buy?

Important Point: don’t

Ad suggests that drinking

The product is juice, but

• Marketing is the management

The Chartered Institute of Marketing

• The object of a business is not to

Understanding the Marketplace

Key concepts in marketing

Understanding the Marketplace

• Form that human needs take as they are shaped by

Demands • Human wants backed by buying power

Understanding the Marketplace

• Market offerings are some

Understanding the Marketplace

Understanding the Marketplace

Exchange is the act of obtaining a

Understanding the Marketplace

Markets are the set of actual and

Marketing management is the art and

Market segmentation refers to dividing

Demarketing is marketing to reduce

• The value proposition is the set of

Production Product Selling Marketing Societal

Production concept is the idea that

Product concept is the idea that

Selling concept is the idea that

Marketing concept is the idea that

Societal marketing concept is the idea

Preparing an Integrated Marketing

Building Customer Relationships

• The overall process of building and

Building Customer Relationships

Building Customer Relationships

Partner relationship management

Building Customer Relationships

The New Marketing Landscape

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