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Marketing Fundamentals Notes
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All concepts of the book Principles of Marketing from Chapter 1 to 11 are thoroughly covered.
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MARKETING FOR E&BE | Summary (RUG)
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Samenvatting Principles of Marketing, ISBN: 9781292220178
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Summary Exam Material Marketing Year 1 Endterm EBE
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MARKETING FUNDAMENTALS SESS 1-12CHAPTER 1
MARKETING
• Marketing is a process by which companies create value for customers and build strong
customer relationships in order to capture value from customers in return.
• Marketing is the overall of the company actions, focused on clients with the unique
objective of profitability.
• Advertising but much more
• Aims to satisfy customer needs
• Deals with customers: managing profitable customer relationshipsmm
• The twofold goal of marketing is to attract new customers by promising superior value
and to keep and grow current customers by delivering satisfaction.
• Sound marketing is critical to the success of every organization
• Bagozzi - Marketing as Exchange
• Arndt - Marketers must concentrate on doing what they do best, which is matching
supply and demand, moving the consumer from need to want to demand
• The process of planning and executing the conception, pricing, promotion and
distribution of ideas, goods, and services to create exchanges that satisfy individual and
organizational objectives
• Marketing is meeting needs (and wants) profitably
MARKETPLACE AND CUSTOMER NEEDS
• Needs are states of felt deprivation.
• Wants are the form human needs take as they are shaped by culture and individual
personality.
• Demands are human wants that are backed by buying power.
• Market is set of actual and potential buyers.
• Consumers market when they:
• search for products
• interact with companies to obtain information
• make purchases
NEEDS
, MARKETING TERMS
• Marketing offers: Some combination of product, services, information, or experiences,
offered to a market to satisfy a need or want. Can be a good, service or both.
• Exchange is the act of obtaining a desired object from someone by offering something
in return. Marketing actions try to create, maintain, and grow desirable exchange
relationships.
• Transaction: A trade of value between two parties
• Market: the entire set of actual or potential people or organizations who might or will
buy or obtain your product offering
• Marketing is about building and maintaining exchange relationship with target
audiences.
• Selecting Customers to Serve : As a marketer, you're not always trying to increase
demand. Some marketing jobs involve demarketing, or reducing or shifting demand for
a particular product or service.
VALUE AND SATISFACTION
• Value: difference between the value of the costumer gains from owning and using a
product and the cost of obtaining it.
• The company must also decide how it will serve targeted customers—how it will
differentiate and position itself in the marketplace.
• A brand’s value proposition is the set of benefits or values it promises to deliver to
consumers to satisfy their needs.
• Customer satisfaction: Depends on how well the product lives up to the customer
expectations.
• Perception is the key word. A satisfied customer is one who perceives your product to
be of value and to have satisfied the need felt.
,• Marketing myopia : many sellers make the mistake of paying more attention to the
specific products they offer than to the benefits and experiences produced by these
products.
MARKETING RPOCESS
MAKRETING MANAGEMENT
• Marketing management is the art and science of choosing target markets and building
profitable relationships with them.
• What customers will we serve (target market)?
• How can we best serve these customers (value proposition)?
• Orientations: there are five alternative concepts under which organizations design and
carry out their marketing strategies.
ORIENTATIONS
1. Production Concept: When demand is high, keep producing enough of the item to
reduce the cost of producing it. Sometimes this approach is effective, and even today
some things are most effectively marketed this way (but generally it's not the best way
to sell something.
2. Product concept: Consumers will favor products that offer the most quality
performance, features. But, defining your business by the product you sell rather than
by what your customer needs is the classic "Better Mousetrap" trap. Just because you
build it does not mean they will come.
3. Selling concept : Companies must undertake a large scale sales and promotion effort
in order to make their consumers buy. Ex: insurance, blood donations.
4. Marketing concept : Determining needs and wants of target markets delivering the
desired satisfaction. Customer focus and value are path to sales and profit.
5. Societal Marketing concept : Mk should also improve the consumer´s and society´s
well being. Marketing today includes the obligation to examine societal issues as well.
Ex : Bangladesh, or the fact that in some countries the fastest growing market for
cigarettes is 12 year-old girls
CUSTOMER RELATIONSHIP MANAGEMENT
• CRM : the process of building and maintaining profitable customer relationships by
delivering superior customer value and satisfaction.
• Customer lifetime value: the value of the total purchases that a customer would make
over a life time of patronage.
• Customer perceived value: the difference between total customer value and total
customer cost.
• Customer satisfaction: the extend to which a product's perceived performance matched
a buyer´s expectations
, • Share of customer : share of the customer purchasing in their product categories. Share
of wallet, share of stomach, of garage, travel…
BUILDING CUSTOMER RELATIONSHIPS
• Customer equity: the total combined customer lifetime values of all company´s
customers
• Different types of customers require different relationship management strategies. The
goal is to build the right relationships with the right customers.
• Butterflies are potentially profitable but not loyal. There is a good fit between the
company’s offerings and their needs.
• True friends are both profitable and loyal. There is a strong fit between their needs and
the company’s offerings.
• Barnacles are highly loyal but not very profitable. There is a limited fit between their
needs and the company’s offerings.
• Strangers show low potential profitability and little projected loyalty. There is little fit
between the company’s offerings and their needs.
MARKETING IN THE CRISIS
• The new consumer values and consumption patterns due to the crisis will likely remain
for many years to come. Even as the economy strengthens, consumers continue to spend
more carefully and sensibly.
• They are focusing on value-for-the-money, practicality, and durability in their product
offerings and marketing pitches
• The challenge is to balance the brand’s value proposition with the current times while
also enhancing its long-term equity.
NON-FOR-PROFIT ORGANIZATIONS
• Big increase in marketing for these organizations
• Sound marketing can help them attract membership, funds, and support.
• Government agencies have also shown an increased interest in marketing
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