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Summary Foundations of Marketing
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Summary of 59 pages for the course Marketing at NHTV
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Marketing Summary Chapter 1 till 12Chapter 1: Nature of marketing
How do we produce products people want to buy?
= Satisfying the needs of the market. Different segments – different needs.
Market segments: group of people who have similar needs and wants
Marketing Mix:
Product
Price
Place
Promotion
Using an outside-in focus is more successful
Marketing concept has 3 key components:
1) Customer orientation
corporate activities are focused upon providing customer satisfaction
2) Integrated effort
all staff accept the responsibility for creating customer satisfaction
3) Goal achievement
the belief that corporate goals can be achieved through customer satisfaction
Customer value=perceived benefits – perceived sacrifices
Perceived benefits can be derived from the product, the associated service and the image of the
company.
Perceived sacrifice is the total cost associated with buying the product. This consists not just of
monetary costs, but also the time and energy involved in the purchase.
Delighting: offer things the costumer doesn’t expect.
Four forms of customer value:
Price value: cheaper as competitors (aldi, Ryanair)
Performance value: Quality
Emotional value: differentiate based on performance (what does the costumer think? Volvo=safe)
Relational value: Quality of the service
Customer relationship management (CRM)
= get to know the customer better and interact with them on a regular basis
Try to become a value leader customer value proposition or a unique selling point
Market-driven / outside-in firms: identify customers needs and build the resource profiles to meet
current and anticipated future demand.
,There are three different business orientations as stated below.
Efficiency: It does the right thing (low cost etc)
Effectiveness: Doing the right thing (operating in attractive markets)
Combination leads to optimum business success
, Chapter 3: Understanding Customer Behaviour
Three major types of buyers:
1. The industrial market concerns those companies that buy products and services to help them
produce other goods and services such as the purchase of memory chips for mobile
telephones
2. The reseller market comprises organizations that buy products and services to resell.
3. The government market consists of government agencies that buy products and services to
help them carry out their activities.
Understanding the behaviour of this array of customers requires answers to the following core
questions: Who/How/What/When/Where
Who buys
Five roles in the buying decision making progress.
1. Initiator: Person who begins the process of considering a purchase
2. Influencer: The person who attempt to persuade others in the group concerning the
outcome of the decision
3. Decider: The individual with the power and/or financial authority to make the ultimate
choice regarding which product to buy
4. Buyer: The Person who conducts the transaction; calls the supplier, visit the store
etc.
5. User: The actual consumer/user of the product
‘Pester power’ The process by which children influence their parents to buy something.
How they buy
Dominant paradigm in consumer behaviour is known as the information processing approach
(psychology)
Alternative paradigm: consumer culture theory (sociocultural/experiential activity)
Extended problem solving occurs when consumers are highly involved in a purchase. Post-
purchase dissatisfaction/cognitive dissonance.
Limited problem solving: consumer has experience with the product so the research may be mainly
internal through memory.
Habitual problem solving occurs in situations of low consumer involvement and a perception of
limited difference between brands.
Variety seeking behaviour in situations characterized by low product involvement but where there
are significant perceived differences between brands.(switching between brands)
The consumer decision-making process:
NEED RECOGNITION
Need recognition may be functional and occur as a result of routine depletion or unpredictably.
The need recognition stage has a number of implications for marketing.
1. Marketing managers must be aware of the needs of consumers and the problems they face.
2. Marketers should be aware of need inhibitors, that is, those factors that prevent consumers
from moving from need recognition to the next stage of the buying decision process.
3. Marketing managers should be aware that needs may arise because of stimulation.
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