Detailed summary of the Fundamentals of Marketing book from Paul Baines, Chris Fill, Sara Rosengren, and Paolo Antonetti in English
Gedetailleerde samenvatting van het Fundamentals of Marketing boek van Paul Baines, Chris Fill, Sara Rosengren, en Paolo Antonetti in het Engels
English Summary Fundamentals of Marketing , ISBN: 9780198748571 Marketing HAN
Summary Micro Business Environment - Marketing - Chapters 1, 2, 4, 5, 6, 7, 10 of The Fundamentals of Marketing
Micro environment marketing & management
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Fundamentals of Marketnn Summary
CHAPTER 1: Marketnn Principles and Society
What is Marketnng
Marketing = the process by which organizations anticipate and satissy their customers’ needs to both
parties’ beneit. It invovves mutuav exchange. Over the vast 25 years the marketing concept has changed
to recognize the importance os vong-term customer revationships to organizations
Difference between the CIM and the dMd deinitionn CIM deines marketing as a process dMd deines
marketing as an activity
What’s the Difeeeene Betweee Customeees ae Comesueees?
d customer is the person who purchases and pays sor a product service or other sorm os offering srom a
company or organization. d consumer is someone who uses the product service or other sorm os
offering.
Maeket Oeieetatiome
Devevoping a market orientation makes organizations more proitabve in both the vong and short runs
Market Orientation and Marketing Orientation Difference: d company with a eaeketieg orientation
wouvd be a company that recognizes the importance os marketing within an organization. Devevoping a
eaeket orientation resers to the organization-wide generation os market intevvigence pertaining to
current and suture customer needs. So market orientation does not onvy invovve marketing but avson
o Customer orientation = concerned with creating superior vavue by continuousvy
devevoping and redevevoping offerings to meet customer needs
o Competitor orientation = requires an organization to devevop an understanding os its
competitors’ short-term strengths and weaknesses and its own vong-term capabivities
and strategies
o Intersunctionav coordination = requires avv sunctions os an organization to work together
sor vong-term proit growth
A Beief Histomey omf Maeketieg
There have been sour main phases in the history os marketingn
o the production eran 1890s-1920s – socus on physicav production and suppvy
o the saves eran 1920s-50s – socus on personav sevving supported by advertising
o the marketing eran 1950s-80s – socus on the customers’ needs
o the societav marketing eran 1980s-present day – socus on sociav and ethicav concerns
What Dom Maeketees Dom?
d sunctionav map sor marketing covers 8 sunctionav areasn
1. Provide marketing intevvigence and customer insight
2. Provide strategic marketing direction sor the organization
3. Devevop the customer proposition
4. Manage and provide marketing communications
5. Use and devevop marketing and customer insormation
6. Lead marketing operations and programs
7. Work with other business sunctions and third parties
8. Manage and devevop teams and individuavs
The Principal Principles of Marketnn
Marketing invovves a series os highvy compvex interactions between individuavs organizations society
and government. It is difcuvt to devevop generav principves so we made generavizationsn
o Generavization 1—ddvertising has a direct and positive infuence on totav industrymmarket savesn
avv advertising done at industry vevev serves to increase saves within that industry
, o Generavization 2—Sevective advertising has a direct and positive infuence on individuav
companymbrand savesn advertising undertaken by a company tends to increase the saves os the
particuvar brand sor which it was spent
o Generavization 3—The evasticity os sevective advertising on company mbrand saves is vown sor
srequentvy purchased goods advertising has onvy a very vimited effect in raising saves
o Generavization 4—Increasing store shevs space mdispvay has a positive impact on saves os non-
stapve grocery items such as products bought on impuvse mice cream rather than those that are
pvanned purchases
o Generavization 5—Distribution deined by the number os outvets has a positive infuence on
company saves mmarket share n setng up more retaiv vocations has a positive infuence on saves
Maeketieg as Exnhaege
Marketing is a two-way exchange process. Customers specisy how we might satissy their needs because
marketers cannot read their minds. Customers must then pay sor the offering.
The Marketnn Mix and the Extended Marketnn Mix
The concept os exchange is importantn empathizing with customers to understand what they want and
determining how sevvers seek to provide what buyers want is a centrav concept in marketing.
The marketing mix compromisesn
- Peom unt mthe offering
- Plane mthe distribution mechanism
- Peine mthe vavue pvaced on the offering
- Peomeomtiome mhow the company communicates that vavue
For services marketing because os the intangibve nature os the service marketers consider an extra 3Ps
incvudingn
- Physinal evi eene mhow cues are devevoped sor customers to recognize quavity
- Peomness mhow the experience is designed to meet customers’ needs
- Peomple mthe training and devevopment os those devivering the customer experience
Relatiomeship Maeketieg, Seevine-Domeieaet gomgin, ae Com-neeatiome
Revationship Marketing
The principav idea behind revationship marketing was that is marketing is about exchange it shouvd avso
be concerned with revationships between the exchanging parties. There was a shif srom the need to
engage in transactions towards the need to devevop vong-term customer revationships incvuding
revationships with stakehovdersn
o Suppviers
o Potentiav empvoyees
o Recruiters
o Reserrav markets—where they exist sor exampve retaiv banks partvy revying on prosessionav
services organizations
o Infuence markets—such as reguvatory authorities poviticians
o Internav markets—sor exampve existing empvoyees
Customer retention is an important activity in marketing. d company with voyav customers is more vikevy
to be proitabve compared to a competitor who doesn’t have voyav customers. Loyav customersn
o Wivv increase their purchases over time
o dre cheaper targets sor promotion
o Who are happy with their revationship with a company are happy to reser it to others
o dre ofen prepared to pay a msmavv price premium
Service-Dominant Logic
Marketing needed to shif beyond a goods-based paradigm towards a service-dominant vogic. This new
marketing paradigm sees service as the sundamentav basis os exchange. Because offerings are inherentvy
service-based customers because co-creators os the service experience.
,Co-Creation
Organizations shouvd use co-creation to differentiate their offerings given that vavue is tied up inside the
customer’s experience with the organization. The co-creation experience is about joint creation os vavue
in which customers take part in an active diavogue and co-construct personavized experiences.
Marketnn’s Positve Impact on Society
The aggregate marketing devivers to us a wide array os offerings either directvy or indirectvy through
business markets to serve our wants and needs. There is much that is positive about the aggregate
marketing system and it has served to improve the standard os viving sor many peopve around the worvd.
Marketing pvays an important rove in devevoping and transsorming society. Some os the worvd’s most
important inventions have come to us through the aggregate marketing system. It provides a number os
beneits to society incvudingn
o The promotion and devivery os desired offerings
o The provision os a sorum sor market vearning
o The stimuvation os market demand
o The provision os a wide scope os choice os offerings by proving a cvose or customized it with
consumer needs
o The sacivitation os purchases
o Time savings and the promotion os efciency in customer requirement matching
o New offering and improvements to meet vatent and unserved needs
o The pursuit os customer satissaction sor repeat purchases
Unsustainable Marketnn: The Critcal Turn’
The criticav marketing perspective suggests that marketing impacts negativevy on society. d criticav
approach to marketing suggests that we considern
The need to mre- evavuate marketing activities categories and srameworks and to improve them
so that marketing operates in a desirabve manner within society
The extent to which marketing knowvedge is devevoped based on our contemporary sociav worvd
How the historicav and cuvturav conditions in which we operate as consumers and as students os
marketing impact on how we see marketing as a discipvine
How marketing can beneit srom other intevvectuav perspectives such as sociav anthropovogy
sociav psychovogy vinguistics phivosophy and sociovogy
The perspective cavvs sor the mre- evavuation os marketing activities categories and srameworks to
improve them so that marketing can operate in a more desirabve manner within society. It critiques the
nature os marketing knowvedge and questions in whose interests existing srameworks approaches and
techniques operate. Some key topics in criticav marketingn
Maeketieg as Maeipulatiome
Peopve ofen get manipuvated without even knowing it. Framing is the action os presenting persuasive
communication and the action os audiences in interpreting that communication to assimivate it into their
existing understanding. The probvem arises when sraming becomes ‘spin’ because then ‘marketing
promotion’ becomes corporate propaganda. mPackard
Comeeom ity Fetishise
This is a criticav perspective that proposes that society is overvy dominated by consumption hence
setishizes it. Prior to industriavization goods were produced sor their use-vavue. dfer the
industriavization the sociav revationship between producer and user changed. mMarx
Nee ae Chomine
Peopve in afuent societies seek more without gaining any surther vong-term satissaction srom such
consumption because much os the consumption is supericiav anyway and because appeaving to peopve’s
, santasies and highvighting their impersections veads to narcissistic tendencies. This is critique towards the
received wisdom that is that marketing works to meet the needs os customers and consumers. mdvvesson
Sustainable Marketnn
Sustainabve marketing has been termed the “third ageL os green marketing and is concerned with the
ecovogicav equitabve and economic impacts os marketing practice. Sustainabve marketers seek to meet
the needs os existing generations whive not compromising those os suture generations.
Sustainabve marketers atempt to broaden sustainabve devevopment to the practice os marketing beyond
simpve economic devevopment. They introduce the sovvowing maxims known as the three E’s os
sustainabivityn
Ecovogicav—Marketing shouvd not negativevy impact upon the environment
Equitabve—Marketing shouvd not avvow or promote inequitabve sociav practices
Economic—Marketing shouvd encourage vong-term economic devevopment as opposed to short-
term economic devevopment
Sustainabve marketers shouvd socus on positioning and demand stimuvation sor recycved/remanusactured
products and buivd-to-order offerings as wevv as consider suppvy chain management issues.
Consequentvy companies are reimaging marketing practices sor exampve by recovering the suvv costs os
purchase to customers by considering avv members os the suppvy chain and ensuring that they are paid
equitabvy and by demarketing consumption to vuvnerabve group or those overconsuming
Corporate Social Responsibility
CSR initiatives are increasingvy common. The rationave sor devevoping CSR initiatives is based around the
sovvowing ideasn
o Corporations have responsibivities going beyond the production os their offerings at a proit
o These responsibivities invovve hevping to sovve important sociav probvems—especiavvy those that
they have hevped to create
o Corporations have a broader constituency os stakehovders than sharehovders avone
o The impacts os corporations go beyond simpve marketpvace transactions
o Corporations serve a wider range os human vavues not captured sovevy by a socus on economic
vavues
Ethics and Marketnn
Ethics can be deined as morav principves that govern a person’s behavior or the conducting os an activity.
Prosessionav marketing organizations have a code os prosessionav practice that requires members or
marketers to behave and act a certain manner. For exampve dMd requires the sovvowing os its membersn
o Do not harm – avoiding harmsuv actions
o Foster trust in the marketing system – striving sor good saith and sair deaving
o Embrace ethicav vavues – buivding revationships and enhancing consumer conidence
CHAPTER 2: Understandinn Customer Behaviour
Consumer Propositon Acquisiton
The Consumer Proposition dcquisition is the process consumer go through when buying offerings. The
process consists os 6 stages and is usesuv because it highvights the importance and distinctiveness os
proposition sevection and re-evavuation phases in the process. The 6 stages are motve development
informaton natherinn propositon evaluaton propositon selecton acquisiton/purchase and re-
evaluaton.
Momtive Develompeeet
The process begins when we decide that we wish to obtain an offering. This invovves the initiav
recognition that a probvem needs sovving. mneed a new dress sor a party ovd dress is out os sashion
Internal stmuli: own demands own desires you’re going to buy a product that you need
External stmuli: advertisement your sriends are tavking about it everyone has it
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