Marketing Concept

Customer
Satisfaction =
Perceived Value
Cost Incurred
Customer Satisfaction is a
person’s feelings of
pleasure or disappointment
resulting from comparing a
product’s perceived
performance (or outcome)
in relation to his or her
expectations.
 Types of Satisfaction

• Functional Satisfaction
• Psychological Satisfaction
• Utility Satisfaction
Functional Satisfaction
Psychological Satisfaction
 Utility - Adding Degrees of
Satisfaction
o n Possession utility To
t i tal
fac Sa
tis Place utility tis
Sa fac
t al tio
n
T o Time utility

Form utility

Oriental rug

Store has it in
stock
Delivered to your
home
Pay with your VISA
card
 Simple Marketing System

Communication

Goods/services
Industry Market
(a collection (a collection
of sellers) Money of Buyers)

Information
The Marketing Mix
 The Four Ps

Marketing
Mix

Place
Product (Distribution)

Price Promotion
 Product
 There are many things to consider when
choosing a product to sell:

What do people want?
 What services should be included with the
sale of a product?
PRODUCT IS A SET OF TANGIBLE AND INTANGIBLE
ATTRIBUTES THAT LEADS TO CUSTOMER
SATISFACTION

 TANGIBLE

 GENERIC PRODUCT

 CORE PRODUCT

 FORMAL PRODUCT

 AUGMENTED PRODUCT
 Price
The price is what the customer must give
up to receive the product. It often is
necessary to try different prices
periodically to see which prices provide
the best financial returns.
 Place
(also known as distribution)
 It is important to make sure that there is
enough of a product on hand to sell.

Fro instance, if there is a sale, then enough of
a product should be available so that
customers can be satisfied.
 Definition of Place

 The place element of the marketing mix

involves decisions about the location in
which goods & services can be purchased

 The distribution channels through which they

pass from producer to final user, and the
physical distribution methods used
 The Basic Model of Communications

Encoding Decoding

Sender Receiver
Message and
Medium
Noise Noise

Feedback
Five Promotional Mix Elements

■ Advertising
■ Personal selling (sales)
■ Public relations
■ Publicity
■ Sales promotion
 Three Principal Goals of Promotion

■ To inform.
■ To persuade.
■ To remind.

RIP acronym = Remind - Inform - Persuade