Gedetailleerde samenvatting van alle gegeven lectures Marketing 1 in studiejaar .
Bij het maken van deze samenvatting is het boek 'Principles of Marketing' (ISBN: 1132) gebruikt, zoals aangeraden door de lecturer
Marketing summary Principles of Marketing 18th edition
Marketing Management summary of the entire course
Summary: Principles of Marketing 18e Global Edition - Marketing (MAN-BCU2008)
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Vrije Universiteit Amsterdam (VU)
Economics And Business Economics
Marketing 1 (E_BK1_MK)
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Lecture 1: Introduction to 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.
The concept of ‘dual value creation’ means that there are different options for customers,
customers make their decision on the value they get (price, expert advice in a shop, looks,
additional services). When you purchase the specific product you give value back to the
company by buying the product → value creation for the company.
Marketing in a Nutshell → creating and capturing value: create value for customers and build
customer relationships to be able to capture value from customers in return. Creating value
for customers has multiple steps: (1) understand the marketplace and customer needs and
wants, (2) design a customer value-driven marketing strategy, (3) construct an integrated
marketing program that delivers superior value, (4) engage customers, build profitable
relationships, and create customer delight.
The five core marketplace concepts:
1. Needs, wants and demands: needs are things you need, so for example food when
you are hungry. These needs lead to wants these wants are shaped by our
environment/culture/personality for example you want to eat a vegetarian burger.
These wants lead to demands; this means that you are willing to give something of
your value (for example money) to buy the product.
2. Market offerings: products, services, and experiences: these are all a
commodity. A product is a physical object you buy, a service is labor. A service is
also skill based (some hairdresser is better than others). Experiences are for
example holidays. These three things have in common that they create value for the
customer.
3. Value and satisfaction: customers form expectations about the value and
satisfaction of market offerings (satisfied customers buy again, dissatisfied customers
switch to competitors).
4. Exchanges and relationships: 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 to make the consumers trust
you.
5. Markets: A market is the set of actual and potential buyers. Consumers ‘market’
when they: search for products, interact with companies to obtain information, and
share their experiences.
Marketing myopia is management’s failure to recognize the scope of its business. So this
happens when a company is more focused on selling the product than to sell what it means
to a customer → product oriented and not customer oriented. For example Blockbuster video
was only focused on their product so selling DvDs in a physical store instead of satisfying
the customers in other ways like mailing DvDs.
The key elements that guide marketing strategy:
Marketing management is the art choosing target markets and building profitable
relationships with them:
What customers will we serve (target market)?
How can we best serve these customers?
A value proposition refers to the value a company promises to deliver to customers should
they choose to buy their product.
Selling and marketing concepts contrasted: The selling concept goes as follows: Factory
→ existing products → selling and promoting → profits through sales volume. The marketing
concept goes: Market → customer needs → integrated marketing → profits through
customer satisfaction. So the marketing concept focuses on satisfying customers, while the
selling concept focuses on the sale of products (Marketing myopia).
,The company’s marketing decisions should consider (1) consumers' wants, (2) the
company’s requirements,(3) consumers’ long-run interests, and (4) society’s long-run
interests.
The marketing mix is a combination of factors that can be controlled by a company to influence
consumers to purchase its products. It consists of a set of tools known as the four P’s: product,
place, price, promotion.
Key concepts for creating and capturing value:
Customer relationship management: the overall process of building and
maintaining profitable customer relationships by delivering superior customer value
and satisfaction.
Customer-perceived value: the difference between total customer perceived
benefits and customer cost.
Customer satisfaction: the extent to which perceived performance matches a
buyer’s expectations.
Customer engagement marketing: a marketing strategy that focuses on increasing
the engagement your customers have with your brand by delivering personalized
messages and interacting with customers.
Consumer-generated marketing: is the type of marketing in which companies invite
their consumers to develop Content for the company's marketing campaign or review
their products
Partner relationship management: is a combination of software, strategies, and
web-based capabilities which help a vendor to manage partner relationships.
Customer lifetime value: is a measurement of how valuable a customer is to your
company, not just on a purchase-by-purchase basis but across the whole
relationship.
Share of customer: the share the company gets out of the customers’ purchasing
their offerings (supermarkets share of stomach. Car companies share of garage).
Customer equity: is the total of lifetime values of all of the firm's customers. The
more loyal the customer, the more is the customer equity.
Customer relationship groups: Building the Right Relationships with the Right
Customers. In order to fulfill the marketing strategy and capture maximum value from
customers, the firm must build the right relationships with the right customers
Lecture 2: Company and marketing strategy
When you do marketing it is important to have a strategic planning. This is the process of
developing and maintaining a strategic fit between the organization’s goals and capabilities,
and changing marketing opportunities. 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.
A company also should have a mission statement; the organization's purpose; what it
wants to accomplish in the larger environment.
The company needs to turn its broad mission into detailed supporting objectives for each
level of management.
Designing business portfolio:
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.
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. The first step in portfolio analysis is to identify the subunits of
, a company called the strategic business units (SBUs); An independently operating part of
the organization that sells a range of products to a specific group of customers and is itself
responsible for the development and implementation of the strategy. An SBU can be a
company division, a product line within a division, or sometimes a single product or brand.
The company next assesses the attractiveness of its various SBUs and decides how much
support each deserves.
Using the now-classic Boston consulting group (BCG) approach, a company classifies all its
SBUs according to the growth-share matrix. On the vertical axis market growth rate is set.
On the horizontal axis the relative market share is set (a measure of company strength in the
market). The growth-share matrix defines four types of SBUs:
1. Stars: are high-growth, high-share businesses or products.
They often need heavy investments to finance their rapid
growth. Eventually their growth will slow down, and they turn
into cash cows.
2. Cash cows: are low-growth, high-share businesses or
products. 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: are low-share business units in high-growth
markets. 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: are low-growth, low-share businesses and products. They may
generate enough cash to maintain themselves but do not promise to be large
sources of cash.
Once the company has classified its SBUs, the company must determine what role each will
play in the future. The company can pursue one of four strategies for each SBU: (1) build,
(2) hold, (3) harvest, (4) divest. As time passes, SBUs change their positions in the growth-
share matrix. Many SBUs start out as question marks and move into the star category if they
succeed. They later become cash cows as market growth falls and then finally die off or turn
into dogs toward the end of the life cycle.
This is a good way of identifying a company’s SBUs but there are also problems with this
growth-share matrix approach:
Difficulty in defining SBUs and measuring market share and growth
Time consuming
Expensive
Focus on current businesses, not future planning
Designing the business portfolio:
Marketing has the main responsibility for achieving profitable growth for the company.
Marketing needs to identify, evaluate, and select market opportunities and lay down
strategies for capturing them. One useful device for identifying growth opportunities is the
product/market expansion grid. This grid consists of four sides:
1. Market penetration: company growth by increasing sales of current products to
current market segments without changing the product
2. Market development: company growth by identifying and developing new market
segments for current company products.
3. Product development: company growth by offering modified or new products to
current market segments.
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