Samenvatting Principles of Marketing, Global Edtion, ISBN: 9781292341132 Marketing For E&be (EBP033A05)
92 views 11 purchases
Course
Marketing For E&be (EBP033A05)
Institution
Rijksuniversiteit Groningen (RuG)
Book
Principles of Marketing
This summary contains all the chapters of the book 'The principles of marketing, Global Edition' 18th edition. It is very easy to read my grade for the test was a 7,8. For a lower price, you can send an email to;
Marketing summary Principles of Marketing 18th edition
Marketing Management summary of the entire course
Summary: Principles of Marketing 18e Global Edition - Marketing (MAN-BCU2008)
All for this textbook (60)
Written for
Rijksuniversiteit Groningen (RuG)
Bsc Economics And Business Economics
Marketing For E&be (EBP033A05)
All documents for this subject (5)
Seller
Follow
inezleemrijse
Reviews received
Content preview
Marketing is engaging customers and managing profitable customer relationships.The twofold goal of marketing
is to attract new customers by promising superior value and to keep and grow current customers by delivering
value and satisfaction.
Hence, we define marketing as the process by which companies engage customers, build strong customer
relationships, and create customer value in order to capture value from customers in return.
1.2 Explain the importance of understanding the marketplace and customers and identify the five core
marketplace concepts.
As a first step, marketers need to understand customer needs and wants and the marketplace in which they
operate. We examine five core customer and marketplace concepts:
(1) needs, wants, and demands;
(2) market offerings (products, services, and experiences);
(3) value and satisfaction;
(4) exchanges and relationships; and
(5) markets.
1. Needs, wants and demands:
Human needs are states of felt deprivation. They include basic physical needs for food, clothing, warmth, and
safety; social needs for belonging and affection; and individual needs for knowledge and self expression.
Wants are the form human needs take as they are shaped by culture and individual personality. Wants are
shaped by one’s society and are described in terms of objects that will satisfy those needs. When backed by
buying power, wants become demands . Given their wants and resources, people demand products and services
with benefits that add up to the most value and satisfaction.
2. Market offerings (products, services, and experiences)
Consumers’ needs and wants are fulfilled through market offerings —some combination of products, services,
information, or experiences offered to a market to satisfy a need or a want. Market offerings are not limited to
physical products. They also include services. 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. These sellers suffer
from marketing myopia . They are so taken with their products that they focus only on existing wants and lose
sight of underlying customer needs. They forget that a product is only a tool to solve a consumer problem.
3. Value and Satisfaction
Consumers usually face a broad array of products and services that might satisfy a given need. How do they
choose among these many market offerings? Customers form expectations about the value and satisfaction that
various market offerings will deliver and buy accordingly. Satisfied customers buy again and tell others about their
good experiences. Marketers must be careful to set the right level of expectations. If they set expectations too
low, they may satisfy those who buy but fail to attract enough buyers. If they set expectations too high, buyers will
be disappointed. Customer value and customer satisfaction are key building blocks for developing and managing
customer relationships.
4. 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. In the broadest
sense, the marketer tries to bring about a response to some market offering.
5. Markets
The concepts of exchange and relationships lead to the concept of a market. A market is the set of actual and
potential buyers of a product or service. These buyers share a particular need or want that can be satisfied
through exchange relationships. Marketing means managing markets to bring about profitable customer
relationships. Consumers do marketing when they search for products, interact with companies to obtain
information, and make their purchases. Thus, in addition to customer relationship management, today’s marketers
must also deal effectively with customer-managed relationships. Marketers are no longer asking only “How can
we influence our customers?” but also “How can our customers influence us?” and even “How can our customers
influence each other?”
1.3 Identify the key elements of a customer value–driven marketing strategy and discuss the marketing
management orientations that guide marketing strategy.
We define marketing management as the art and science of choosing target markets and building profitable
relationships with them. The marketing manager’s aim is to engage, keep, and grow target customers by creating,
delivering, and communicating superior customer value.
,To design a winning marketing strategy, the marketing manager must answer two important questions: What
customers will we serve (what’s our target market)? and How can we serve these customers best (what’s our
value proposition)?
The company must first decide whom it will serve. It does this by dividing the market into segments of customers
(market segmentation) and selecting which segments it will go after (target marketing). Simply put, marketing
management is customer management and demand management.
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.
There are five alternative concepts under which organizations design and carry out their marketing strategies: the
production, product, selling, marketing, and societal marketing concepts.
The production concept holds that consumers will favor products that are available and highly affordable.
Therefore, management should focus on improving production and distribution efficiency.
The product concept holds that consumers will favor products that offer the most in quality, performance, and
innovative features. Under this concept, marketing strategy focuses on making continuous product
improvements.
Many companies follow the selling concept , which holds that consumers will not buy enough of the firm’s
products unless it undertakes a large-scale selling and promotion effort. The selling concept is typically practiced
with unsought goods—those that buyers do not normally think of buying, such as life insurance or blood
donations.
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. Under the marketing concept,
customer focus and value are the paths to sales and profits. Instead of a product centered make-and-sell
philosophy, the marketing concept is a customer-centered sense-and-respond philosophy. The job is not to find
the right customers for your product but to find the right products for your customers.
The societal marketing concept questions whether the pure marketing concept overlooks possible conflicts
between consumer short-run wants and consumer long-run welfare.
The concept of shared value focuses on creating economic value in a way that also creates value for society.
Companies should balance three considerations in setting their marketing strategies: company profits, consumer
wants, and society’s interests.
The major marketing mix tools are classified into four broad groups, called the four Ps of marketing: product,
price, place, and promotion. To deliver on its value proposition, the firm must first create a need-satisfying market
offering (product). It must then decide how much it will charge for the offering (price) and how it will make the
offering available to target consumers (place). Finally, it must engage target consumers, communicate about the
offering, and persuade consumers of the offer’s merits (promotion).
1.4 Discuss customer relationship management and identify strategies for creating value for customers
and capturing value from customers in return.
The first three steps in the marketing process— understanding the marketplace and customer needs, designing a
customer value–driven marketing strategy, and constructing a marketing program—all lead up to the fourth and
most important step: engaging customers and managing profitable customer relationships.
Customer relationship management is the overall process of building and maintaining profitable customer
relationships by delivering superior customer value and satisfaction. It deals with all aspects of acquiring,
engaging, and growing customers.
A customer buys from the firm that offers the highest customer-perceived value —the customer’s evaluation of
the difference between all the benefits and all the costs of a market offering relative to those of competing offers.
Important: They act on perceived value.
Customer satisfaction depends on the product’s perceived performance relative to a buyer’s expectations.
The new marketing is customer-engagement marketing — fostering direct and continuous customer
involvement in shaping brand conversations, brand experiences, and brand community. Customer-engagement
marketing goes beyond just selling a brand to consumers. Its goal is to make the brand a meaningful part of
consumers’ conversations and lives. Thus, marketers are now embracing not only customer relationship
management but also customer managed relationships, in which customers connect with companies and with
each other to help forge and share their own brand experiences. Beyond building brand loyalty and purchasing,
marketers want to create customer brand advocacy , by which satisfied customers initiate favorable interactions
with others about a brand. Greater consumer empowerment means that companies can no longer rely on
marketing by intrusion. Instead, they must practice marketing by attraction—creating market offerings and
messages that engage consumers rather than interrupt them.
,One form of customer-engagement marketing is consumer generated marketing , by which consumers
themselves play roles in shaping their own brand experiences and those of others. As consumers become more
connected and empowered and as the boom in digital and social media continues, consumer brand engagement
—whether invited by marketers or not—will be an increasingly important marketing force.
In addition to being good at customer relationship management, marketers must also be good at partner
relationship management —working with others inside and outside the company to jointly engage and bring
more value to their customers. Traditionally, marketers have been charged with understanding customers and
representing customer needs to different company departments. However, in today’s more connected world,
every functional area in the organization can interact with customers. Rather than letting each department go its
own way, firms must link all departments in the cause of creating customer value. Marketers must also partner
with suppliers, channel partners, and others outside the company. Marketing channels consist of distributors,
retailers, and others who connect the company to its buyers. The supply chain Author Comment describes a
longer channel, stretching from raw materials to components to final products that are carried to final buyers.
Through supply chain management, companies today are strengthening their connections with partners all along
the supply chain. They know that their fortunes rest on how well their entire supply chain performs against
competitors’ supply chains.
The first four steps in the marketing process outlined in Figure 1.1 involve engaging customers and building
customer relationships by creating and delivering superior customer value. The final step involves capturing value
in return in the form of sales, market share, advocacy, and profits.
Creating Customer Loyalty and Retention
Satisfied customers remain loyal and talk favorably to others about the company and its products. The aim of
customer relationship management is to create not only customer satisfaction but also customer delight. Loyal
customers spend more and stay around longer. Research also shows that it’s five times cheaper to keep an old
customer than acquire a new one -> customer lifetime value.
Growing Share of Customer
Beyond simply retaining good customers to capture customer lifetime value, good customer relationship
management can help marketers increase their share of customers —the share they get of the customer’s
purchasing in their product categories.
Building Customer Equity
Companies want to not only create profitable customers but also “own” them for life, earn a greater share of their
purchases, and capture their customer lifetime value.
What Is Customer Equity?
The ultimate aim of customer relationship management is to produce high customer equity. Customer equity is
the total combined customer lifetime values of all of the company’s current and potential customers. As such, it’s
a measure of the future value of the company’s customer base. Clearly, the more loyal the firm’s profitable
customers, the higher its customer equity. Customer equity may be a better measure of a firm’s performance
than current sales or market share. Whereas sales and market share reflect the past and present, customer
equity suggests the future.
1.5 Describe the major trends and forces that are changing the marketing landscape in this age of
relationships.
In this section, we examine the major trends and forces that are changing the marketing landscape and
challenging marketing strategy. We look at four major developments: the digital age, the growth of not-for-profit
marketing, rapid globalization, and the call for sustainable marketing practices.
Online, social media, and mobile marketing are having a huge impact on customer engagement. The key is to
blend digital approaches with traditional marketing to create a smoothly integrated marketing strategy and mix.
Artificial intelligence (AI) has burst onto the marketing scene. AI involves machines that think and learn in a way
that looks and feels human but with a lot more analytical capacity. Marketers can use AI to analyze data at
lightning speed and apply the insights to engage customers in real time and help them through the buying
process.
What is marketing? Simply put, marketing is the process of engaging customers and building profitable customer
relationships by creating value for customers and capturing value in return.
2.1 Explain company-wide strategic planning and its four steps.
This is the focus of strategic planning —the process of developing and maintaining a strategic fit between the
organization’s goals and capabilities and its changing marketing opportunities.
Marketing planning occurs at the business-unit, product, and market levels. It supports company strategic
planning with more detailed plans for specific marketing opportunities.
, A mission statement is a statement of the organization’s purpose—what it wants to accomplish in the larger
environment. A clear mission statement acts as an “invisible hand” that guides people in the organization.
2.2 Discuss how to design business portfolios and develop growth strategies.
Guided by the company’s mission statement and objectives, management now must plan its business portfolio
—the collection of businesses and products that make up the company. The best business portfolio is the one
that best fits the company’s strengths and weaknesses to opportunities in the environment.
Business portfolio planning involves two steps. First, the company must analyze its current business portfolio and
determine which businesses should receive more, less, or no investment. Second, it must shape the future
portfolio by developing strategies for growth and downsizing.
The major activity in strategic planning is business portfolio analysis, whereby management evaluates the
products and businesses that make up the company. The company will want to put strong resources into its more
profitable businesses and phase down or drop its weaker ones.
Management’s first step is to identify the key businesses that make up the company, called strategic business
units (SBUs).
The company next assesses the attractiveness of its various SBUs and decides how much support each
deserves.
The purpose of strategic planning is to find ways in which the company can best use its strengths to take
advantage of attractive opportunities in the environment. For this reason, most standard portfolio analysis
methods evaluate SBUs on two important dimensions: the attractiveness of the SBU’s market or industry and the
strength of the SBU’s position in that market or industry.
A company classifies all its SBUs according to the growth-share matrix. On the vertical axis, market growth rate
provides a measure of market attractiveness. On the horizontal axis, relative market share serves as a measure
of company strength in the market. The growth-share matrix defines four types of SBUs:
1. Stars: They often need heavy investments to finance their rapid growth. Eventually their growth will slow
down, and they will turn into cash cows.
2. Cash cows: These established and successful SBUs need less investment to hold their market share.
Thus, they produce a lot of the cash that the company uses to pay its bills and support other SBUs that
need investment.
3. Question marks: They require a lot of cash to hold their share, let alone increase it. Management has to
think hard about which question marks it should try to build into stars and which should be phased out.
4. Dogs: They may generate enough cash to maintain themselves but do not promise to be large sources
of cash.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller inezleemrijse. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.37. You're not tied to anything after your purchase.
