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Marketing summary Principles of Marketing 18th edition
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Marketing Management summary of the entire course
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Summary: Principles of Marketing 18e Global Edition - Marketing (MAN-BCU2008)
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MARKETING FUNDAMENTALSBBA 1
,CHAPTER 1: CREATING CUSTOMER VALUE AND
ENGAGEMENT
What is Marketing?
Marketing: a process by which companies create value for customers and build a
strong customer relationship in order to capture value from customers in return.
- Aims to satisfy customer needs.
- Managing profitable customer relationships.
- Attract and keep new customers.
Understanding the Marketplace and Customer Needs
Needs: states of deprivation, basic
physical needs.
Wants: the form human needs take as
they are shaped by culture and individual
personality.
Demands: human wants that are backed
by buying power.
Product: anything that can be offered to
a market to satisfy a need or want.
- Goods: tangible.
- Services: intangible and
ephemeral.
- Mixture: some combination of
goods and services at the
same time (e.g., restaurant)
Marketing offers: some combination of product, services, information, or
experiences offered to a market to satisfy a need or want.
Exchange: 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.
Marketing System:
Each party in
the system
adds value to
the next level.
,Market: the set of all actual and potential buyers of a product or service → buyers
share wants and needs that can be satisfied through exchange relationships.
Designing a Customer Value-Driven Marketing Strategy and Plan
Marketing management: the art and the science of choosing target markets and
building profitable relationships with them.
↪︎ Aim: engage, keep and grow target customers.
The marketing manager must answer two questions (marketing strategy):
1. What customers will we serve (target market)?
- Market segmentation
- Target market
2. How can we serve these customers well (value position)?
o Companies must design strong value propositions to differentiate
and position themselves in the marketplace. This will give them the
greatest advantage in their target markets.
Marketing management wants to design strategies that will engage customers and
build profitable relationships → integrated marketing programs (marketing
strategies into action).
There are 5 alternative concepts under which organizations design and carry out
their marketing strategies:
- Production concept: consumers will favor products that are available and
highly affordable; therefore, the organization should focus on improving
production and distribution efficiency. (e.g., Lenovo) → can lead to marketing
myopia.
- Product concept: consumers will favor products that offer the most quality,
performance and features; therefore, the organization should devote its
energy to making continuous product improvements. → can lead to marketing
myopia.
- Selling concept: consumers will not buy enough of the firm’s products unless
the firm undertakes a large-scale selling and promotion effort.
- High risks. It focuses on creating sales transactions rather than on
building long-term, profitable relationships. It assumes that customers
who are coaxed into buying the product will like it.
- Marketing concept: achieving organizational goals depends on knowing the
needs and wants of target markets and delivering the desired satisfactions
better than competitors do.
- Customer driving marketing: understanding customer needs even
better than customers themselves do. (e.g., Apple)
- Societal marketing concept: a company’s marketing decisions should
consider consumers’ wants, the company’s requirements, consumers’
long-run interests and society’s long-run interests.
- Shared value: societal needs, not just economic needs, define markets
, Marketing mix: set of marketing tools the firm uses to implement its marketing
strategy.
Managing Customer Relationships and Capturing Customer Value
An Expanded Model of the Marketing Process
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