INF 3101

MARKETING AND CUSTOMER

CARE
Course facilitator:
Ibrahim A. Ibrahim: MBA -ITM, ADIT
ibrahim.ibrahim@suza.ac.tz

INTRODUCTION
Coverage expected at the end of this session:
Communicate value through effective
marketing strategy
Send an effective message to a variety of
client audience
Influence customer to the purchase
Develop effective marketing strategies fit
for different products

INTRODUCTION
Establish and maintain effective bond
with customers
Develop skills to communicate with
variety of audiences worldwide
Assess market opportunity and
increasing competitive advantage to the
organization.
Increase new customer base and retain
the existing customers
3

Why be concerned about

marketing?
everybody exists in the business environment
because s/he sales something. (Buskirk
and Buskirk, 1992)
To organisations/businesses, the above
implies that their success is very much
dependent on its marketing activities.

What a market is:

is a set of all actual and potential

buyers of a product (tangible goods
or services).

What a market is:

consists of all potential customers sharing a
particular need or want who might be willing
and able to engage in exchange in order to
satisfy that need or want.- (Kotler, 1996)

Defining marketing (1)

There are many definitions. Including:
1. The all-embracing function that
links the business with customer
needs and wants in order to get the
right product to the right place at the
right time.

Defining marketing (2)

2. The achievement of corporate goals
through meeting and exceeding
customer needs, better than the
competition.

Defining marketing (3)

3. The management process that
identifies, anticipates and meets
customer requirements efficiently
and profitably.

Defining marketing (4)

4. as the process by which companies
create value for customers and build
strong customer relationships in
order to capture value from
customers in return.

10

Defining marketing (5)

5. A social and managerial process by
which individuals and groups obtain
what they need and want through
creating and exchanging
products/services and value with
others"

11

Which definition is right?

In short, they all are. They all try to explain the essence of
marketing:

Marketing is about meeting the needs and wants of

customers

Is a business-wide function it is not something

that operates alone, away from other business activities
is about understanding customers and finding
ways to provide products (goods or services)
which meet customers demand
Attract new customers by promising superior value
Keep and grow current customers by delivering
satisfaction.
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What is Marketed?

13

What is Marketed?

Goods
Places
Properties
Organizations
Persons

Services
Events
Experiences
Information
Ideas

14

Marketing: Goods, Services

and Ideas
Consumer goods are
products purchased by
consumers for personal use
Industrial goods are
products used by companies
to produce other products
Services are intangible
products that can be
purchased
15

Marketing concepts
core concepts
A NEED is a basic underlying concept of
marketing, and can be defined as a "state
of felt deprivation of basic satisfaction
( Food, Clothing, Shelter, Belonging etc.
An unsatisfied need becomes a WANT
when a person looks for objects that will
satisfy the need.

Wants are desires for specific satisfiers of the

deeper needs.

Needs are few and wants are many

16

Marketing concepts
core concepts ..cont.
The estimated ability of a product to satisfy a
set of felt needs is referred to as VALUE (or
utility)

Value is the ratio between what the customer gets

and what he gives

While, the act of obtaining a desired product

from someone by offering something in return
after negotiations and agreement is
EXCHANGE.

17

Marketing concepts
core concepts ..cont.
DEMAND is a want for a specific product
supported by an ability and willingness to
pay for it.
PRODUCT: An offering that can satisfy a
need or want.

Goods; Services; Experiences; Events;

Persons; Places; Properties; Organizations;
Information; Ideas.

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Marketing concepts
core concepts ..cont.
SATISFACTION: Persons feelings of
pleasure or disappointment resulting from
comparing a products perceived performance
in relation to his or her expectations.
MARKET: The group of Buyers & Sellers
interested in negotiating the terms of
purchase / sale of goods or services.

19

Marketing concepts
The Production Concept
Holds that customers will favor
products that are available and
highly affordable
Here marketers focus on improving
production and distribution
efficiency

20

Marketing concepts
The Production Conceptcont.
Seems appropriate when:
1. Demand for a product exceeds
supply; or
2. When product cost is very high, and
improved productivity is needed to
bring costs down.
21

Marketing concepts
The Product Concept
Holds that customers will favor the
highest quality products with the
greatest performance and features
Here marketers focus on continuously
seeking out new product
improvements

22

Marketing concepts
The Selling Concept
Has the view that if left alone,
customers may not buy more of the
companys products or services
Aggressive selling tactics are
therefore sought as the means to
making more sales

23

Marketing concepts
The Marketing Concept
The organization concentrates on
finding out the needs and wants of its
target customers, and then delivers the
desired satisfactions more effectively
and efficiently than competitors
The focus of management is on the
customers ultimate satisfaction

24

Marketing concepts
The Societal Marketing Concept
Is similar to the marketing concept,
except that it also takes into account
the society's well-being
The organization should deliver the
desired satisfactions in a way that
maintains or improves the customers
and the society's well-being
25

Conclusion
Note that the first 3 philosophies production, product and selling are more
inclined on the firms side.
The last 2 concepts - marketing and societal
marketing are more inclined on the
customers side.
The commonality is that they all have the
same goal: organizational profit.
The choice on which philosophy to adopt
depends on the firms situation.
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Marketing Environment
Marketing Environment:
The actors and forces outside marketing that
affect marketing managements ability to build
and maintain successful relationships with
target customers
Environment offers both opportunities and
threats.
Marketing intelligence and research used to
collect information about the environment
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Marketing Environment
Microenvironment
Includes the actors close to the company that
affect its ability to serve its customers.
Macroenvironment
Involves larger societal forces that affect the
microenvironment.
Considered to be beyond the control of
the organization.

28

 Companys Internal Environment:

Areas inside a company.
Affects the marketing departments
planning strategies.
Marketing
Environment
All departments
must think consumer and
work
together to provide
superior customer
The
Companys
Microenvironment
value and satisfaction.

29

Marketing Environment

Actors in the Microenvironment

30

Marketing Environment
Actors
Marketing must
Microenvironment consider other parts of

1. The company
2. Suppliers
3. Marketing

intermediaries
4. Customers
5. Competitors
6. Publics

the organization
including finance, R&D,
purchasing, operations
and accounting
Marketing decisions
must relate to broader
company goals and
strategies
31

Marketing Environment
Microenvironment
Actors
1. The company
2. Suppliers
3. Marketing

intermediaries
4. Customers
5. Competitors
6. Publics

Provide resources
needed to produce
goods and services.
Marketers must watch
supply availability and
pricing
Effective partnership
relationship
management with
suppliers is essential
Most marketers treat
suppliers like partners.
32

Marketing Environment
Microenvironment
Actors
1. The company
2. Suppliers
3. Marketing

intermediaries
4. Customers
5. Competitors
6. Publics

Help to promote, sell and

distribute goods to final
buyers
Include resellers, physical
distribution firms,
marketing services
agencies and financial
intermediaries
Effective partner
relationship management
is essential
33

Marketing Environment
Microenvironment

Actors

1. The company
2. Suppliers
3. Marketing

intermediaries
4. Customers
5. Competitors
6. Publics

The five types of

customer markets
Consumer
Business
Reseller
Government
International

34

Marketing Environment
Microenvironment

Actors

1. The company
2. Suppliers
3. Marketing

intermediaries
4. Customers
5. Competitors
6. Publics

Conducting
competitor analysis
is critical for
success of the firm
A marketer must
monitor its
competitors
offerings to create
strategic advantage

35

Marketing Environment
Microenvironment

Actors

porter's five forces framework

1. The company
2. Suppliers
3. Marketing

intermediaries
4. Customers
5. Competitors
6. Publics
36

Marketing Environment
Microenvironment

Actors

1. The company
2. Suppliers
3. Marketing

intermediaries
4. Customers
5. Competitors
6. Publics

A group that has an

actual or potential
interest in or impact
on an organization
Seven publics include:

Financial
Media
Government
Citizen-action
Local
General
Internal
37

 The company and all of the other

actors operate in a larger
macroenvironment of forces that shape
opportunities and pose threats to the
Marketing
Environment
company.

The Companys Macroenvironment

38

Marketing Environment
The Companys Macroenvironment

39

 Demographic:
The study of human populations in terms of
size, density, location, age, gender, race,
occupation, and other statistics.
Marketers track
changing age and family
Marketing
Environment
structures, geographic population shifts,
The
Companys
Macroenvironment
educational
characteristics,
and population
diversity.

40

Interactive Student Assignment

Pair with another student to discuss the
following questions:
In what ways does the buying behavior of
you and your parents differ?
In what ways does the buying behavior of
you and your grandparents differ?
What selling strategies would work best for:
You
Your parents
Your grandparents
41

 Economic Environment:

Consists of factors that affect consumer purchasing

power and spending patterns.

Changes in Income

Income Distribution
1980s
consumption
frenzy
Marketing
Environment
Upper class
Middle class
The
Companys
Macroenvironment
1990ssqueezed consumer
Working class
2000s value marketing
Underclass
42

 Natural Environment:
Involves the natural resources that are
needed as inputs by marketers or that are
affected by marketing activities

Marketing
Trends

Environment

The
Shortages
of raw materials
Companys
Macroenvironment
Increased pollution
Increased government intervention
43

 Technological Environment
Changes rapidly.
Creates new markets and opportunities but also
turns many existing products extinct.
Challenge is to make practical, affordable
Marketing
Environment
products.
Safety
The regulations
Companys
resultMacroenvironment
in higher research
costs and longer time between conceptualization
and introduction of product.
44

 Political Environment
Consists of laws, government agencies and
pressure groups that influence or limit various
organizations and individuals in a given society
Legislation affecting businesses worldwide
Marketing
Environment
has increased
The
LawsCompanys
protect companies,
consumers and the
Macroenvironment
interests of society
Increased emphasis on socially responsible
actions
45

Marketing Environment
The Companys Macroenvironment
Political Environment
Includes Laws,
Government
Agencies, and
Pressure Groups
that Influence or
Limit Various
Organizations and
Individuals In a
Given Society.

Increasing Legislation
Changing Government
Agency Enforcement
Increased Emphasis on Ethics
& Socially Responsible Actions
46

 Political Environment
Consists of laws, government agencies and
pressure groups that influence or limit various
organizations and individuals in a given society
Legislation affecting businesses worldwide
Marketing
Environment
has increased
The
LawsCompanys
protect companies,
consumers and the
Macroenvironment
interests of society
Increased emphasis on socially responsible
actions
47

 Cultural Environment
Made up of institutions and other forces that
affect a societys basic values, perceptions,
preferences and behaviors.
Core beliefs and values are passed on from
Marketing
Environment
parents to children and are reinforced by
schools,
business, and
government.
The Companys
Macroenvironment

48

Marketing Environment
The Companys
Macroenvironment
Themselves

Identify with brands

for self-expression

Others
Recent shift from
me to we society

Organizations
Trend of decline in
trust and loyalty to
companies

Society
Patriotism on the rise

Nature
lifestyles of health and
sustainability (LOHAS)
consumer segment

Universe
Includes religion and
spirituality

49

Marketing Analysis
Managing the marketing function begins with a
complete analysis of the companys situation.
An organisations success is influenced by factors
operating in its internal and external environment.
An organisation can increase its success by adopting
strategies which manipulate these factors to its
advantage.
A successful organisation will not only understand
existing factors but also forecast change, so that it
can take advantage of change within the
environments in which it operates.
50

Marketing Analysis
The marketer should conduct a SWOT analysis
and PEST analysis
SWOT analysis:- An overall evaluation of the
companys strengths (S), weaknesses (W),
opportunities (O), and threats (T).
PEST analysis:- An overall evaluation of
Political (P), Economic (E), Social (S) and
Technological (T)

51

Marketing Analysis
The SWOT Analysis
A technique that enables a group or individual to move from
everyday problems and traditional strategies to a fresh
prospective.
SWOT analysis can be used to analyze internal and external
factors that can affect the marketing
Strengths The advantages you have over the competition
concerning this project.
Weaknesses The disadvantages you have internally compared
with your competitors.
Opportunities Current external trends which are waiting to be
taken advantage of.
Threats External movements which may cause a problem and
have a negative impact on your business.
52

Who needs SWOT Analysis?

2

When the team has not

met its
targets
Customer service can be
better
Launching a new business
unit to
pursue a new business
New team leader is
appointed

Business
Unit

Job Holder
1

When supervisor has issues

with
work output
Assigned to a new job
New financial year fresh
targets
Job holder seeks to improve
performance on the job

Company
3

When revenue, cost &

expense
targets are not being
achieved
Market share is declining
Industry conditions are
unfavorable
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Launching a new business
venture

How to conduct SWOT Analysis?

1. Analyse Internal &

External Environment

2. Perform SWOT Analysis

& Document

3. Prepare Action Plans

54

CASE STUDY

55

Marketing Analysis
The PEST Analysis
PEST stands for the analysis of the external factors which is
beneficial when conducting market research
PEST when broken down simply means analyzing the:

Political Laws, global issues, legislation and regulations which

may have an effect on your business either immediately or in the
future.
Economic Taxes, interest rates, inflation, the stock markets and
consumer confidence all need to be taken into account.
Social The changes in lifestyle and buying trends, media, major
events, ethics, advertising and publicity factors.
Technological Innovations, access to technology, licensing and
patents, manufacturing, research funding, global
communications.
56

CASE STUDY

MCDONALDS

57

POLITICAL
Health and Safety Guidelines
fast food consumption has been shown to increase
calorie intake, promote weight gain and elevate risk for
diabetes
criticised for caloric content, trans fats and portion sizes
Ecological/environmental issue
one of the largest consumers of paper products in the
US leading to millions of pounds of food packaging
waste littering roadways.
Home market and international pressure-groups
pushing for increased regulations to make companies
more responsible
Wars and conflicts
war between countries where the company operates
58

ECONOMIC
low set up costs leading to rapid
expansion
keeping the prices low for the
customers.
franchising facilitates set ups

McDonalds corporation provides financing

assistance and training for new franchise
owners to manage cash flow and keep
businesses profitable.
59

SOCIAL
Health fears
customers now opting for more healthier
options like SUBWAY which offers more
variety for health conscious customers.

Emphasis on food safety

60

TECHNOLOGICAL
Streamlining of processes to improve
efficiency
through technology enhancements such as FPI's
Help Desk Service, network and application
consolidation and other technology
implementations, operations of the company
are greatly improved

Marketing done by means of

television advertisements

Implemented technology to
improve supply chain management
61

STRATEGIES ADOPTED
McDonalds changed its image vastly by evaluating
the current menu and making changes to it from
using organic products to revising the whole menu
entirely by offering salads and vegetarian burgers.
The accurate and accessible nutrition information
help guests make informed menu choices.
Incorporated safety management systems,
including Good Manufacturing Practices (GMP), a
verified Hazard Analysis Critical Control Point
(HACCP) plan and crisis management, food
security and other applicable programs
62

STRATEGIES ADOPTED
Increase presence in Asian countries
When the first McDonald's opened in Beijing more
than a dozen years ago, 40,000 people lined up to
observe a Big Mac. It is growing faster in China than
in the United States. It owns & operates more than
600 stores across 105 cities in China. More than 100
more McDonald's stores will be added annually to
Chinese cities within the coming years.

Locally focused menu choices

In India McAloo Tikki, Paneer Salsa Wrap, McVeggie
In China - Szechwan-style spicy chicken wings,
seafood soup, oriental sauces etc
63

Marketing Mix
Marketing mix is the set of tactical marketing
tools that the firm blends to produce the
response it wants in the target market.
The marketing mix consists of everything the
firm can do to influence the demand for its
product
The tools can be collected into four groups of
variablesthe four Ps.
(i) Product
(iii) Price

(ii) Place
(iv) promotion
64

Marketing Mix elements

Marketing
Mix
Product
Product variety
Quality
Design
Features
Brand names
Packaging
Sizes
Services
Warranties

Price
List price
Discounts
Allowances
Payment period
Credit terms

Promotion
Sales promotion
Advertising
Sales force
Public relations
Direct marketing

Place
Channels
Coverage
Assortments
Locations
Inventory
Transport

65

Customers Perspective The 4 Cs

From the customers point of view, the first 4 Ps can be seen to

represent four benefits often called the 4 Cs

Cost
Communication

Price

Promotion

Place

Product

Convenience

Customers
Wants & Needs
66