Summary of Marketing: An Introduction (ISBN: 9781292146508)
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Course
International Marketing (LBVP20DES1)
Institution
Hanzehogeschool Groningen (Hanze)
Book
Marketing
A summary of Marketing: An Introduction, chapters 1, 2, 3, 6, 7, 8, 9, 10, 12, 14 & 16 by Gary Armstrong and Philip Kotler with Marc O. Opresnik (ISBN 6508) using the Cornell note taking method. This summary was made specifically for Year 1, Period 3 of International Business at Hanze UAS but is s...
Marketing Lecture Chapter 1 & 2 Creating and Capturing Customer Value
Customer value: The perception of what a product or service is worth to a customer.
What’s marketing? The process by which companies create value for customers and build strong customer
relationships in order to capture value in return. Goals:
- Keep current customers by delivering satisfaction
- Attract new customers by promising superior value
What’s customer satisfaction? The extent to which the product’s perceived performance matches a buyer’s
expectations. Expectations are based on needs (for example: hunger), wants (subway
sandwich) and demands (when you can pay for it).
What’s market segmentation? Dividing a market into distinct groups of buyers who have different needs, characteristics
and who might require separate (marketing) programs.
What’s a market segment? A group of consumers who respond in a similar way to given marketing efforts.
- Example - Students don’t belong in the same market segment for bikes: they have different
preferences (blue, orange bikes) despite looking for budgets.
What is market targeting? The process of evaluating each market segment’s attractiveness and selecting one or
more segments to enter.
What’s positioning? Positioning = arranging for a product to occupy a clear and desirable place relative to
competing products in the minds of target consumers. E.g: in our minds we have
different associations with brands we use (hate, like, etc.). This is done by:
What’s differentiation? - Differentiation = differentiating the market offering to create superior customer
- Examples of this? value. Superior customer value can be done by low prices, you can also
differentiate by different functionalities, availability, etc.
How to design a marketing 1. Decide what customers you will serve. (Target market)
strategy? 2. How can you serve these customers best? (Value proposition ↓)
- The set of benefits or values a company promises to deliver.
You can’t focus on only one target group: a big family might need a big and small car for
big landscapes & small streets.
What does a marketing Understand the marketplace and customer needs → design a marketing strategy →
process look like? make a marketing program that delivers superior value → build profitable relationships
→ capture value from customers to create profits and customer equity (the end goal).
What is an integrated You can prepare an integrated marketing plan & program by using the marketing mix
marketing plan? tools: 4 Ps (product, price, place (distribution), promotion). An integrated plan means that
they all match: e.g a luxury product is not offered for a budget price in a supermarket.
What are the 5 alternate Organizations design & carry out their marketing strategies under 5 alternate concepts:
concepts? 1. Production concept: focus on production and distribution efficiency, it is usually
highly available and affordable (e.g producing only black cars).
2. Product concept: product focus (best quality, performance, etc).
3. Selling concept: focus on selling efforts (on increase of sales).
4. Marketing concept: focus on customer (value). This is the most popular concept.
5. Societal marketing concept: deliver value to customers in a way that improves
consumer’s and society’s well-being; sustainability, etc.
Value disciplines: customer intimacy, product leadership & operational excellence.
,What does the changing Economic uncertainties, growth in digital technology, rapid globalization, more
marketing landscape look sustainable marketing and more non-profit marketing. These factors have to be taken
like? into account otherwise risk of marketing myopia: mistake of paying more attention to
the specific products a company offers than to the benefits produced by these
products (blackberry for example).
, Chapter 3 Analyzing the Marketing Environment
What does depest stand for? DEPEST analysis: demographic, economic, political / legal, environmental, socio-cultural
and technological.
Porter’s 5 forces analysis: 1. Threat of new competitors
2. Threat of substitute products / services
3. Bargaining power of customers
4. Bargaining power of suppliers
5. Industry competitive intensity
SWOT analysis alone isn’t SWOT Analysis:
enough, you also need to
Internal Strengths: internal Weaknesses: internal
prioritize strengths,
capabilities limitations
weaknesses, opportunities,
etc.
External Opportunities: external Threats: current and
factors emerging external factors
Positive Negative
How to respond to the Responding to the Marketing Environment:
marketing environment? 2 - Reactive firms: passive, simply react to changes in the marketing environment
ways: - Proactive firms: manage the marketing environment via actions designed to
affect the publics and forces in the marketing environment: they lead markets.
Micro factors are internal factors: customers, suppliers, competitors, myopia (you don’t
look at what’s happening outside of your company), etc.
Macro factors are external factors: political, social, economic, etc.
Marketing myopia is the mistake of paying more attention to the specific products a
company offers than to the benefits and experiences produced by these products: a
manufacturer of quarter-inch drill bits may think that the customer needs a drill, but what
the customer really needs is the ability to make a hole in a surface.
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