Basic Marketing Process

Fundamentals of Marketing
Lecture 3
Basic Marketing Process
Md. Shayekh Munir

The Marketing Process
Create value for customers and
build customer relationships
Capture value from
customers in return
Understand the Design a Construct an Build profitable Capture value

marketplace and customer-driven integrated from customers to
relationships and
marketing program
customer needs marketing create customer create profits and
that delivers
and wants strategy superior value delight customer equity
This Figure presents a simple, five-step model of the marketing

process. In the first four steps, companies work to understand
consumers, create customer value, and build strong customer
relationships. In the final step, companies reap the rewards of
creating superior customer value. By creating value for
consumers, they in turn capture value from consumers in the
form of sales, profits, and long-term customer equity.
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:
(1) needs, wants, and demands;
(2) market offerings (products, services, and experiences);
(3) value and satisfaction;
(4) exchanges and relationships; and
(5) markets.
1. Needs, Wants, and Demands
Need: State of felt deprivation including physical,
social, and individual needs.
• Physical needs: Food, clothing, shelter, safety

• Social needs: Belonging, affection
• Individual needs: Learning, knowledge, self-
expression
Want: Form that a human need takes, as

shaped by culture and individual
personality.
• Wants + Buying Power = Demand

2. Market Offering
Needs & wants are fulfilled through a Marketing Offering:

• Products:
– Persons, places, organizations, information, ideas.
• Services:
– Activity or benefit offered for sale that is essentially intangible and
does not result in ownership.
• Experiences:
– Consumers live the offering.
3. Value and Satisfaction
Value = Benefits/Cost
Where, Benefits = (Functional + Emotional) benefits
And, Costs = (Monetary + Time + Energy + Psychic) costs
Customer satisfaction Dependent on the product’s perceived

performance relative to a buyer’s expectations.
Care must be taken when setting expectations:
• If performance is lower than expectations, satisfaction is low.
• If performance is higher than expectations, satisfaction is high.
Customer satisfaction often leads to consumer loyalty.
Some firms seek to DELIGHT customers by exceeding expectations.
Factors That Affect Customer
Satisfaction
Friendly Employees Courteous Employees
Helpful Employees Knowledgeable Employees

Overall
Customer
Satisfaction Accuracy of Billing
Quick Service
Billing Clarity Billing Timeliness
Courteous Employees
Good Value Competitive Pricing
4. Exchanges and Relationships
Marketing occurs when people decide to satisfy needs and wants through
exchange relationships. Exchange is the act of obtaining a desired
object from someone by offering something in return. In the broadest
sense, the marketer tries to bring about a response to some market
offering. The response may be more than simply buying or trading
products and services. A political candidate, for instance, wants votes,
a church wants membership, an orchestra wants an audience, and a
social action group wants idea acceptance.
Marketing consists of actions taken to build and maintain desirable

exchange relationships with target audiences involving a product,
service, idea, or other object. Beyond simply attracting new customers
and creating transactions, companies want to retain customers and
grow their businesses. Marketers want to build strong relationships by
consistently delivering superior customer value. We will expand on the
important concept of managing customer relationships later in the
chapter.
Ethical Exchanges
• Exchanges must be
done in socially
responsible way
• Both buyer and seller
should consider
impact on society and
environment
Seller Buyer
Markets
• The concepts of exchange and relationships lead to the
concept of a market. A market is the set of actual and
potential buyers of a product or service. These buyers
share a particular need or want that can be satisfied
through exchange relationships.
• Marketing means managing markets to bring about

profitable customer relationships. However, creating these
relationships takes work. Sellers must search for buyers,
identify their needs, design good market offerings, set
prices for them, promote them, and store and deliver
them. Activities such as consumer research, product
development, communication, distribution, pricing, and
service are core marketing activities.
A Simple Marketing System
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Fundamentals of Marketing

Md. Shayekh Munir

Understand the Design a Construct an Build profitable Capture value

This Figure presents a simple, five-step model of the marketing

• Physical needs: Food, clothing, shelter, safety

Want: Form that a human need takes, as

• Wants + Buying Power = Demand

Needs & wants are fulfilled through a Marketing Offering:

Customer satisfaction Dependent on the product’s perceived

Helpful Employees Knowledgeable Employees

Billing Clarity Billing Timeliness

Marketing consists of actions taken to build and maintain desirable

• Marketing means managing markets to bring about

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