Summary Principles of Marketing
Real People, Real Decisions
My Marketing Lab
Second European Edition
Solomon, Marshall, Stuart, Barnes & Mitchell
Pearson
Chapters:
1 What is marketing?
4 Consumer behavior
6 Segmentation, targeting, positioning and CRM
7 Creating the product
8 Managing the product...
MARKETING
REAL PEOPLE, REAL DECISIONS
MY MARKETING LAB | SECOND EUROPEAN EDITION
Solomon, Marshall, Stuart, Barnes & Mitchell | Pearson
Chapters 1, 4, 6, 7, 8 & 10
, Chapter 1 What is marketnng
Meet Steve Perry – Commercial director of Visa Europe
- Visa Europe = world’s leadinn electronic payment system – most trusted brand since 1958
Non-profit ornanizaton, atypical business model
Consumer brand: operates only on business-to-business basis
Leadinn role in modernizaton of payment market: mobile and contactless payment
Sponsor/partner of FIFA World Cup, Olympic and Paralympic Games
- How to convince European banks over to V PAY as the preferred SEPA-compliant payment cardg
Opton 1: Tarnet trans-European banks
Tryinn to convince major banks – are infuental market leaders, other willinn to follow
Disadvantane: few obvious candidates – bank only bin in a few countries
Opton 2: Tarnet one country at a tme (used for countries they had stronn relatonships withi
First country with the most favorable conditons for adopton
Then try to build momentum in other countries
Disadvantane: ‘all or nothinn’ strateny – country maybe not enounh infuence
Opton 3: Tarnet a combinaton of country and bank – (choose this onei
Locaton with larnest number of cards and stronn relatonship with individual banks
Disadvantane: bank-by-bank approach is research intensive
Welcome to a branded world
- Marketing = ornanizatonal functon and set of processes for creatnn, communicatnn and deliverinn
value to customers and mananinn relatonships – in a way that benefit ornanizaton and stakeholders
Marketnn is everywhere – we live in a branded world: ads, products, TV, the web, etc.
- Product = tannible nood, service or idea that satsfies (businessi consumer throunh exchanne
Even YOU are a product: you have ‘market value’ as a person
- Talk about ourselves in marketnn terms too: positoninn/sellinn ourselves, in the market for love
Principles of marketnn apply to people just as products/noods
- WHO: many different backnrounds – depends on kind of marketers: E-marketers/advertser/fashion
- WHERE: variety of locatons – consumer noods, service companies, retail ornanizatons or media
But also in charites, healthcare, universites and railway companies
- ROLE: could be sales or advertsinn, workinn tonether with others, makinn decisions – cross-functonal
Different fields: brand | business-to-business | direct-response | internatonal | retail | services
The value of marketnn
- Marketnn = stratenic business functon, value by stmulatnn/facilitatnn/fulfillinn customer demand
Does this by buildinn brands, nurturinn innovaton, developinn relatonships and nood service
When customer-centrically, positve returns on investment, shareholders and stakeholders
Stakeholder = any person/ornanizaton that has a ‘stake’ in the marketnn exchanne
- Meetnn ineeds = difference between actual state and some ideal/desired state
Relate to physical functons (eatnni or psycholonical ones (looksi
- Measurable performance and accountability are key to marketnn success: risk/benefits of decision
Require metrics = measurinn system that quantfies a trend, dynamic of characteristc
- Waint = desire for partcular product to satsfy a need in specific ways (hunnry -> fries or a saladi
- Product delivers beinefit when it satsfies a need or want, motvates buyinn behavior
- Demaind = consumers’ desire coupled with the buyinn power or resources to satsfy a want
Potental customers who want a product and can afford it
- Market = consists of all consumers who share a common need and want the same specific product
, - Utlitl = usefulness or benefit consumers receive from a product – creates value
Form utlity (raw materials into productsi | place utlity (products available where wantedi
- Exchainge occurs when somethinn is obtained in return for somethinn else
- The evoluton of the marketnn concept
Untl 193紙 it was al about makinn producton more efcient – productoin orieintatoin
192紙-64 company-centred approach, sellinn noods in any way they could – selliing orieintatoin
1957-98 outdo competton, research needs and wants – coinsumer orieintatoin
1988-present New Era orieintatoin = buildinn lonn-term bonds with customers - ethically
Customer relatoinship mainagemeint (CRMi was developed to track customers’ preferences
Marketing coincept: satsfy customers so it is profitable for the firm and benefits society
- Business try to be nreener – however, sometmes false advertsinn or fraud: not ethical
- Business ethics are basic values that nuide a firm’s behavior – varies per country
- Consumerism is social movement protectnn consumers from harmful business practces
1961 Consumer Bill of Rinhts: safe products, honest informaton, to be heard and choose freely
- New Era focus on accountability: demonstratnn that marketnn creates more € value than it costs
Imanine value ideas predict value try anain | infinity model of
Predict value actons demonstrate value try anain accountable marketnn
- Imanine value: creatnn value by findinn beter ways of spendinn marketnn money
Stratenic marketnn investment, value propositon (renewi and marketnn mix (promotonsi
- Predict value: predict how ideas will nenerate value before implementnn them – 3 main approaches
Extrapolatons from past, simulatons of future and analonies & scenarios – evaluatnn ideas
- Demonstratnn value: nather chain of evidence – costs customer response + environment profit
Compare products/renions/brands/customers – how money usedg What responsesg Numbersg
What can be marketedg
- Coinsumer goods = tannible products that consumers purchase for personal of family use
- Services = intannible products that we pay for and use but never own
- Busiiness-to-busiiness marketing= marketnn from one ornanizaton to another (for further processinni
- Not-for-profit marketing = charity/educatonal/public service noals that use marketnn principles
- Marketnn is used everywhere: safe sex | politcs | travel | relinion | athletes | performers
‘Somethinn of value’ to whomg
- Value form customer’s perspectve: costs, benefits and personal preference
- Value from seller’s perspectve: profitable exchanne, prestne amonn rivals and pride
- Compettve advaintage = able to provide customers with benefits that compettors can’t
- Distinctve competeincl = firm’s capability which is superior to that of its competton
- Differeintal beinefit = providinn customers with somethinn unique or somethinn they really want
- Value chaiin = series of actvites involved in desinninn, producinn, marketnn and deliverinn a product
Brinninn in materials, convertnn materials, shippinn out final product and marketnn
- Consumers not only audience but community – create own adds (YouTubei and sell own thinns
- Companies need to have the public’s trust – beinn ethical, no scandals such as Enron or Chrysler
- Dark side of consumer behavior: addictveness, exploited people, illenal actvites and shrinkane
Marketnn as a process
- Marketnn planninn: analyzinn marketnn environment strennths/weaknesses/opportunites
Productsg Capabilitesg Market senmentsg Technolony channesg Social and cultural valuesg
- Afer doinn research, create marketing plain = describes environment and strateny outlines
- Then develop a basic product and a sinnle strateny for reachinn everyone
- Marketing mix = toolbox with four P’s: product, price, promoton and place
Product = whatever is offered for sale in exchanne – packaninn/features/services (deliveryi
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