Summary
Summary marketing management
- Course
- Institution
Summary of both lecture and book content of marketing management eyar
[Show more]
Seller
Follow
lynouk
Content preview
Marketing Management for IBA – by Lynouk van HasselChapters 1-3, 6-8, 9, 10, 12, 14, 16
Chapter 1 Marketing – creating customer value and engagement
Marketing: The process by which companies engage customers, build strong customers
relationships, and create customer value in order to capture value from customers in return.
The marketing process exist out of a simple five-step model, in which the first four steps companies
work to understand customers and create customer value and build strong customer relationships.
The final step, companies reap the rewards of creating superior customer value.
Five-step model
1. Customer needs, wants and demands:
a. Human needs: States of felt deprivation such as, physical needs for food etc. They
are basic part of the human makeup.
b. Wants: Human needs that are shaped by culture and individual personality
c. Demands: Given their wants and resources people DEMAND products and services
which lead to satisfaction.
2. Market offerings – products, services and experiences: Combination of products etc to
satisfy a need or a want.
a. Marketing myopia: Some people make the mistake of paying more attention to the
specific products they offer than to the benefits and experiences produced by these
products.
3. Customer value and satisfaction: Customers form expectations about the value and
satisfaction that market offers and buy therefore.
a. Satisfied customers buy again and tell others about their good experiences.
b. Dissatisfied customers often switch to competitors and disparage the products to
other.
i. They are building blocks for developing and managing customer
relationships.
4. Exchanges and relationships
a. Exchange: the act of obtaining a desired object from someone by offering something
in return.
5. Markets: The set of all actual and potential buyers of a product or service.
a. Marketing means managing markets to bring about profitable customer
relationships. Nowadays marketing is carried out by sellers and buyers (former it
was only sellers) Two way affair:
i. Customer relationship management -> how can we influence customers?
ii. Customer-managed relationships -> how can our customers influence us?
Modern marketing system: see fig 1.2 (page 36)
Everyone is affected by environmental forces such as:Demographics, Economic, Natural,
Technological, Political, Social/cultural. Each party in the system adds value for the next level
Designing a Customer Value-Driven Marketing Strategy and plan:
Marketing management: The art and science of choosing target markets and building profitable
relationships with them.
1
© 2019, Lynouk van Hassel. All rights reserved.
,Two important marketing strategy concepts:
• What customers will we serve (what’s our target market?)
a. The company divide the market in customer segments and then decide which It will
target (target marketing).
b. The company know that they cannot serve everyone well and profitable, therefore
they select only customers that it can serve well and profitable (efficient).
• How can we serve these customers best (what’s our value proposition?)
a. Value proposition: the set of benefits or values it promises to deliver to consumers
to satisfy their needs.
Philosophy of marketing strategies can be divided into five alternative concepts that carry out the
marketing strategies of an organization:
❖ The production concept: The idea that consumers will favour products that are available and
highly affordable; therefore, the organization should focus on improving production and
distribution efficiency. Old strategy
❖ The product concept: The idea that consumers will favour products that offer the most
quality, performance, and features; therefore, the organization should devote its energy to
making continuous product improvements.This can also lead to marketing myopia.
❖ The selling concept: The idea that consumers will not buy enough of the firm’s product
unless the firm undertakes a large-scale selling and promotion effort.
o It carries high risks, it mainly focuses on creating sales transaction rather than on
building long-term, profitable customer relationships.
o The aim often is to sell what the company makes rather than to make what the
market wants.
❖ The marketing concept: Philosophy in which achieving organizational goals depends on
knowing the needs and wants of target markets and delivering the desired satisfactions
better than competitors do.
o Customer-centred sense-and-respond philosophy. (find the right products for your
customers.
o Customer diving marketing: Understanding customers’ needs even better than
customers themselves do and creating products and services that meet both existing
and latent needs, now and in the future.
❖ The social marketing concept: The idea that a company’s marketing decisions should
consider consumers’ wants, the company’s requirements, the consumers’ long-run interest,
and society’s long-run interest.
The marketing program: It builds customer relationships by transforming the marketing strategy
into action. This consist out of: (see chapter 2)
• The set of marketing tools. This is divided into four broad groups: four Ps. Product, price,
place, promotion.
• The firm’s marketing mix
Managing customer relationships
➢ Customer relationship management: The overall process of building and maintaining
profitable customer relationships by delivering superior customer value and satisfaction.
➢ Relationship building blocks: Customer value and satisfaction:
2
© 2019, Lynouk van Hassel. All rights reserved.
, o Customer perceived value: The customer’s evaluation of the difference between all
the benefits and all the costs of a marketing offer relative to those of competing
offers. They act on perceived value.
o Customer satisfaction: The extent to which a product’s perceived performance
matches a buyer’s expectations.
▪ Higher levels of customer satisfaction lead to greater customer loyalty which
results in better company performance.
▪ Delighted customers will be customer evangelist and brand advocated ->
they will spread a positive word about the product.
➢ Customer relationships levels and tools; There are different levels of customer
relationships.
➢ Customer engagement marketing: Making the brand a meaningful part of consumers’
conversations and lives by fostering direct and continuous customer involvement in shaping
brand conversations, experiences, and community. Due to help of the internet and social
media etc.
o Customer-managed relationships: Customers connect with companies and with
each other to help forge and share their own brand experiences.
o Brand advocacy: Satisfied customers initiate favourable interactions with other
about a brand.
o Marketing by attraction: Creating market offerings and messages that engage
consumers rather than interrupt them.
o The key to engagement marketing: Find ways to enter targeted consumers’
conversations with engaging and relevant brand messages.
➢ Consumer-generated marketing: Brand exchanges created by consumers themselves (both
invited and uninvited) by which consumers are playing an increasing role in shaping their
own brand experiences and those of other consumers.
o Disadvantages:
▪ Time consuming and costly process
▪ Consumers have so much control over social media content, inviting their
input can sometimes backfire.
➢ Partner relationship management: Working closely with others in other company
departments and outside the company to jointly bring greater value to customers.
Capturing customer value
Creating customer loyalty and retention
o Customer relationship management; the aim is to create not only customer
satisfaction but also customer delight. It is 5 times cheaper to keep an old customer
rather than exploiting a new one.
o Customer lifetime value: zthe value of the entire stream of purchases a customer
makes over a lifetime of patronage.
(Growing) share of customer: The portion of the customer’s purchasing that a company gets
in its product categories. To increase this: firms can offer greater variety to current
customers, or create programs to cross-sell and up-sell to market more products and
services to existing customers.
Customer equity: The total combined customer lifetime values of all of the company’s
customers. <- the ultimate aim of customer relationship management. The more loyal the
3
© 2019, Lynouk van Hassel. All rights reserved.
, firm’s profitable customers, the higher its customer equity. This may be a better measure of
a firm’s performance rather than sales of market share.
Building the right relationships with the right customers
o Strangers: Little fit between the company’s offering
and their needs. Low potential profitability and little
projected loyalty. Do not invest in them, make money
on every transaction.
o Butterflies: Potentially profitable but not loyal. Good
fit between company’s offering and their needs. High
profit potential. Enjoy the butterflies for the moment,
not convert them to loyal customers because this is
rarely successful.
o Barnacles: High loyal but not very profitable. Limited fit between their needs and
the company’s offerings. They are probably the most problematic customers. If they
cannot be made profitable they should be “fired”
o True friends: Both profitable and loyal. Strong fit between their needs and the
company’s offerings. Invest in continuous relationships to delight these customers
and engage, nurture, retain, and grow them.
Different types of customers require different engagement and relationship management strategies.
The goal is to build the right relationships with the right customers.
The changing marketing landscape
❖ The digital age: Online, mobile, and social media marketing.
❖ Social media marketing; Using digital marketing tools (e.g. social media) to engage
customers anywhere, at any time via their digital devices.
o Real-time marketing: Marketers engage consumers in the moment by linking brands
to important trending topics, events, causes, problems etc.
❖ Mobile marketing: Fastest-growing digital marketing platform. Engage customers anytime,
anywhere as they move through the buying process. Stimulate immediate buying, make
shopping easier, enrich the brand experience, reach on-the-go consumer or all of these.
❖ Big data and artificial intelligence: (IoT = internet of things)
o AI; machines that think and learn in a way that is the same as people do but with
more analytical capacity.
▪ AI can analyse an apply faster than human.
▪ Examples: chat boxes, siri from apple.
The growth of not-for-profit marketing; Read examples on page 53 and 54
Global marketing is now very important because the world has a rapid globalization. Today’s
customers expect companies to deliver value in a socially and environmentally responsible.
4
© 2019, Lynouk van Hassel. All rights reserved.
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 lynouk. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.54. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
73918 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now