Summary
Marketing & Sales Summary Y1 Q1 Business Organisation
- Course
- Institution
- Book
Complete Marketing & Sales I summary for the first quarter test in year 1 of the International Business programme.
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Complete summary of book and lectures slides of Marketing I and II
-
Summary Principles of Marketing IB Y2Q2
-
Samenvatting marketing IBS jaar 1
Seller
Followkellym_x
Content preview
Marketing & Sales I SummaryMarketing = the process by which companies create value for customers and build strong customer
relationships in order to capture value from customers in return.
The marketing process: creating and capturing value
1. Understand the marketplace and customer needs
- Customer needs, wants and demands
Needs: physical (food, clothing, safety)
social (belonging, affection)
individual (knowledge, self-expression)
Wants: human needs that are shaped by culture and individual personality.
For example: A Dutch man needs food, but wants cheese.
Demands: is when human wants are backed by buying power.
- Market offerings: products, services and experiences
Market offerings = some combination of products, services, information or experiences
offered to a market to satisfy a need or want.
Also includes persons, places, organisations, information and ideas.
Services = activities, benefits or satisfaction offered for sale that are essentially
intangible and do not result in the ownership of anything (banking, airline,
hotel, home repair).
Marketing myopa = the mistake of paying more attention to the specific products a
company offers than to the benefits and experiences produced by
these products (many sellers make this mistake).
- Customer value and satisfaction
- Exchanges and relationships
Exchange = the act of obtaining a desired object from someone by offering something in
return (this is more than just buying or trading, for example: a social action
group wants idea acceptance).
1
, Build strong relationships by consistently delivering superior customer value.
- Markets
Market = the set of all actual and potential buyers of a product or service.
The buyers of a market share a particular need or want that can be satisfied through
exchange relationships.
Core marketing activities = consumer research, product development, communication,
distribution, pricing and service
Customer-managed relationships = buyers also carry out marketing so nowadays
marketers are also asking: ‘How can our customers
influence us?’
2. Designing a customer value-driven marketing strategy
Marketing management can design a customer value-driven marketing strategy.
Marketing management = the art and science of choosing target markets and building
profitable relationships with them.
To design this, 2 important questions:
- What customers will we serve (what’s our target market)? → (market segmentation,
target marketing)
- How can we serve these customers best (what’s our value proposition)? →
(differentiation and positioning, value proposition)
- Marketing management orientations
= the philosophy to design and carry out a marketing strategy that will be used to engage
target customers and build profitable relationships with hem. There are five alternative
concepts for this.
1. The production concept
The idea that consumers will favour products that are available and highly affordable;
therefore, the organisation should focus on improving production and distribution
efficiency.
Risk: Marketing myopia → companies run a major risk of focusing too narrowly on their
own operations and losing sight of the real objective – satisfying customer needs and
building customer relationships.
2. The product concept
The idea that consumers will favour products that are available that offer the most
quality, performance and features; therefore, the organisation should devote its energy
to make continuous product improvements.
2
, Risk: marketing myopa, when focusing only on improving the product.
They might improve the product to satisfy customer needs more, but maybe the
customer wants another product (substitutes). The manufacturer has to package,
price, place, and bring it to attention to still sell it.
3. The selling concept
The idea that consumers will not buy enough of the firm’s products unless the firm
undertakes a large-scale selling and promotion effort.
Typically practised by unsought goods (those that buyers do not normally think of buying,
such as life insurance or blood donations).
Risk: focuses on creating sales transactions rather than on building long-term, profitable
customer relationships.
4. The marketing concept
A philosophy in which achieving organisational goals depends on knowing the needs and
wants of target markets and delivering the desired satisfaction better than competitors do.
Customer-centred sense-and-respond philosophy
Customer-driven marketing → understanding customer needs better than they do their
selves and creating products that meet both existent and latent needs, now and in the
future.
5. The societal marketing concept
The idea that a company’s marketing decisions should consider consumers’ wants, the
company’s requirements, consumers’ long-run interests, and society’s long-run interest.
It should deliver value to customers in a way that is good for the consumer’s and society’s
well-being. This calls for sustainable marketing (think about Lush).
Shared value = creating economic value in a way that also creates value for society.
3. Preparing an integrated marketing program
The customer value-driven marketing strategy (point 2) outlines which customers the
company will serve (the target market) and how it will serve them (positioning and value
3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller kellym_x. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $6.43. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
70055 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now