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Summary Marketing Management Fundamentals
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Chapter 1 up to and including 10 i have started chapter 12, but haven't finished yet
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Marketing 1
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Marketing Management for IBA
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AMSIB IBMS/IBL YEAR 1: Marketing Management Fundamentals
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Summary marketing management fundamentalsChapter 1 Marketing creating and capturing costumer value
Previewing the concepts
The aim of marketing is to create value for costumers in order to capture value from customers in return.
Today’s successful companies have one thing in common: they are strongly costumer focused and heavily
committed to marketing. These companies share a passion for understanding and satisfying customer
needs in well-defined target markets. In these fast-changing times, it’s more important to build strong
customer relationships based on real and enduring costumer value.
What is marketing?
Marketing is managing profitable customer relationships. The goal of marketing is to attract new customers
by promising superior value and to keep and grow current customers by deliver satisfaction.
In recent years, marketers have assembled a host of new marketing approaches do more than just blast
out messages to the masses. Behind it all is a massive network of people and activities competing for you
attention and purchases.
Marketing defined
Marketing is satisfying customer needs. Selling and advertising are only part of a larger marketing mix- a
set of marketing tools that work together to satisfy customer needs and build customer relationships.
Marketing is a social and managerial process by which individuals and organizations obtain what they
need and want through creating and exchanging value with others. Marketing involves building profitable,
value laden exchange relationships with customers. Marketing is also defined as a process by which
companies create value for costumers and build strong customer relationships in other to capture value
from customers in return.
The marketing process
A five-step model of marketing process for creating and capturing customer value.
Create value for customers and build customer relationships Capture value from
customers in return
Understand the Design a customer- Construct an Build profitable Capture value from
marketplace and driven marketing integrated relationships and customers to
customer needs Strategy marketing program create customer create profits and
and wants that delivers delight customer equity
superior value
Understanding the Marketplace and customer Needs
5 core customer and marketplace concepts:
1. Needs, wants, and demands
2. Market offerings
3. Value and satisfaction
4. Exchanges and relationships
5. Markets
Customer needs, wants and demands
- Needs are stats of felt deprivation. They include basic physical needs, social needs and individual
needs.
- Wants: the form human needs take as they are shaped by culture and individual personality. Are
shaped by one’s society and are described in terms of objects that will satisfy those needs.
- Demands: given their wants and resources. when backed by buying power, wants become
demands.
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,Market offerings- products, services, and experiences
Consumers’ needs and wants are fulfilled through market offerings- some combination of products,
services, information, or experience offered to a market to satisfy a need or want. They are not limited to
psychical products, they also include services- activities or benefit offered for sale that are essentially
intangible and do not result in ownership or anything.
Marketing myopia: paying more attention to the specific products they offer than of the benefits and
experiences produced by these products. They focus only on existing wants and lose sight of underlying
customer needs.
Smart marketers look beyond the attributes of the products and services they sell. by orchestrating
several services and products, they create brand experiences for customers.
Customer value and satisfaction
Customers usually face a broad array of products and services that might satisfy a given need. Customers
form expectations about the value and satisfaction that various market offerings will deliver and buy
accordingly. Customer value and customer satisfaction are key building blocks for developing and
managing customer relationships.
Exchanges and relationships
Marketing occurs when people decide to satisfy their needs and wants through exchange relationships.
Exchange is the act of obtaining a desired object from someone by offering something in return.
Marketing consist of actions taken to create, maintain, and grow desirable exchange relationships with
target audience involving a product, service, idea, or other object. Companies want to build strong
relationships by consistently delivering superior customer value.
Markets
Market: the set of actual and potential buyers of a product or service. Marketing means managing
markets to bring about profitable customer relationships. Marketing activities are the activities to creating
these relationships. Toda’s marketers must also deal effectively with customer-managed relationships.
Major environmental forces
Company
Marketing Final
Suppliers intermediaries
Consumers
Competitors
This figure shows the main elements in a marketing system. Marketing involves serving a market of final
consumers in the face of competitors. The company and competitors research the market and interact
with customers to understand their needs. Then they create and send their market offerings and messages
to consumers, either directly or through marketing intermediaries. Each arty in the system adds value for
the next level. The arrows represent the relationships that must be developed and managed.
Designing a customer-driven marketing strategy
Once it fully understands consumers and the marketplace, marketing management van design a customer-
driven marketing strategy. Marketing management: the art and science of choosing target markets and
building profitable relationships with them. The marketing manager’s aim is to find, attract, keep and
grow target customers by creating, delivering, and communicating superior customer value.
Selection customer to serve
The company has to decide whom it will serve, it does this by diving the market into segments of
customers (market segmentation) and selecting which segments it will go after (target marketing).
Marketing managers are trying to serve all customers that it van serve well and profitably, they have to
decide which customers they want to target and on the level, time and nature of their demand. Simply put,
marketing management is customer management and demand management.
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, Choosing a value proposition
The company must also decide how it will serve targeted customer- how it will differentiate and position
itself in the marketplace. A brand’s value proposition is the set of benefits or values it promises t deliver to
costumers to satisfy their needs. Companies must design strong value propositions that give them the
greatest advantage in their target markets.
Marketing management orientations
There are 5 alternative concepts under which organizations design and carry out their marketing
strategies: the production, product, selling, marketing and social marketing concepts.
- Production concept
Costumers will favour products that are available and highly affordable; therefore management should
focus on improving production and distribution efficiency. The production concept can lead to marketing
myopia. Companies adopting this orientation run a major risk of focusing too narrowly on their own
operations and losing sight of the real objective-satisfying customer needs and building customer
relationships.
- The product concept
Holds that customer will favour product that offer the most in quality, performance, and innovative
features. Under this concept, marketing strategy focuses in making continuous product improvement are
important parts of most marketing strategies. Focussing only on the company’s products can also lead to
marketing myopia.
- The selling concept
Holds that consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling
and promotion effort. Is typically practiced with unsought goods- those that buyers do not normally think
of buying. These industries must be good at tracking down prospects and selling them on a product’s
benefits. It focuses on creating sales transactions rather than on building long-term, profitable customer
relationships. The aim often is to sell what the company makes rather than making what the market
wants.
- The marketing concept
Holds that achieving organizational goals depends on knowing the needs and wants of target markets and
delivering the desired satisfactions better than competitors do. Customer focus and value are the paths to
sales and profits. The job is not to find the right customers for your product but to find the riht product
for your customers.
The selling concept takes an inside-out perspective. It
starts with the factory, focuses on the company’s existing
products, and calls for heavy selling and promoting to
obtain profitable sales. It focuses primarily on customer
conquest-getting short-term sales with little concern
about who buys or why. In contrast, the marketing
concept takes an outside-in perspective. The marketing
concept starts with well-defined customer. It yields
profits by creating relationships with the right customer based on customer value and satisfaction.
The societal marketing concept
The societal concept holds that marketing strategy should deliver value to customers in a way that
maintains or improves both the customer and society’s well being. It calls for sustainable marketing,
socially and environmentally responsible marketing that needs the present needs of consumers and
business while also preserving or enhancing the ability o future generations to met their needs. Even
more broadly many leading business and marketing thinkers are now preaching the concepts of shared
value, which recognizes that societal needs, not just economic needs, define markets. The concept of
shared value focuses on creating economic value in a way that also creates value for society.
Preparing an integrated marketing plan and program
The company’s marketing strategy outlines which customer it will serve and how it will create value for
these customers. Next, the marketers develops and integrated marketing program that will actually
deliver the intended value to target customer. The marketing tools the firm uses to implement its
marketing strategy. The major marketing mix tools are classified into four broad groups, called the four Ps
or marketing (product, price, place and promotion). To deliver on its value proposition, the firm must firm
must first create a need-satisfying market offering (product). It must then decide how much it will charge
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