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Summary Marketing: Business Economics BA1- VUB £8.54
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Summary Marketing: Business Economics BA1- VUB

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This is a summary of the marketing course in the first bachelor Business Economics at the VUB. I got 15/20 with this summary.

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  • September 15, 2022
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  • 2022/2023
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Business Economics- Bachelor 1: Marketing summary
Marketing: Creating customer value and -engagement
1. What is marketing?
 Definition: Marketing is the process by which companies engage
customers, build strong customer relationships, and create
customer value in order to capture value from customers in return.
 ‘Value creation’ & ‘Value appropriation’ of Existing and new
customers ( acquiring new customers, retain existing costumers)
 Empirical research has demonstrated that: Companies that use
strategic marketing planning, perform better financially

2. What is marketing not: Going against some common prejudices
 Marketing isn’t the same as ‘Sales’. Not just selling but also satisfying the costumers needs
and looking for solutions

Marketing Sales
Focus on long-term satisfying of customer Focus on short-term satisfying of customer
needs needs
Based to a larger extent on customer input in Based to only a limited extent on customer
designing the offering (co-creation) input in designing the offering
Puts the focus on stimulating demand Rather than focusing on stimulating demand, it
tends to focus more on satisfying existing
demand

 Marketing ≠ advertising -> advertising is only a form of marketing (promotion -> 1 of the 4
P’s).
 4 P’s -> product (variety, quality, design, features, brand name,
services), promotion (advertising, personal selling, sales promotion,
public relations), price (list price, discounts, payment period, credit
terms), place ( channels, locations, inventory, transportation).
 Marketing ≠ redundant in times of economic crisis -> don’t cut
marketing budget -> mistake during economic crisis. E.g. -> Heinz,
Tesco, Aldi – In pandemic lockdown 2020
 Not only for products and ‘non profit’ organizations -> marketing is
used by governments, churches, museums, charities, universities, hospitals -> not just ‘profit’
as central goal ( generating awareness, acquiring volunteers, inform the people)
 Marketing as ‘exchange’ is a 2 way diadic process. Exchange does not necessarily imply
merely paying a price (money). You can also pay in efforts, you can only create value if you
put an effort. Example -> the retailer gives goods and costumer service to the costumer and
the customer gives payment at retail price for goods.
 Value can only be created by co-creation between supplier and consumer -> supplier can
provide ‘value proposition’. Offer only has value for consumer upon usage within the goal of
satisfying one’s needs/wants/demand.
 Marketing ≠ only for profit  Short-term customer wants vs. Long-term customer well-
being.

,3. The marketplace and customer needs
 The marketing process 
 Aim of marketing is to know and understand the costumer so well that the products sells
itself.
 Watch out for marketing myopia! → Look beyond product, to underlying customer needs.
Sellers pay more attention to the products they offer than to the benefits of this product.
 Costumer Needs <-> wants <-> demand. Consumers have different needs/wants/demands.
What is valuable depends on consumer groups. Companies have limited resources and
cannot please all consumers and must select consumers to serve.
 Wants = human needs shaped by
culture/personality. When backed by
buying power wants -> demands.
 Market offering (services, products,
experiences) -> products, services,
persons, places, organizations,
information, ideas offered to a market to
satisfy a need or want of a consumer.
 Consumers face a broad array of products to satisfy their given needs.
 A market = all actual and potential buyers of a product/service.
 Markets and the marketing system  Each party in the system adds value, Arrows represent
relationships (with partners as well as with customers; external and internal) that must be
developed and managed to create customer value and profitable customer relationships.

4. A customer value-driven marketing strategy
 Selecting customers to serve (= dividing markets into segments and selected which one’s
they want to serve to be profitable) , choosing a value proposition ( how to differentiate itself
in the market) , marketing management orientations (design strategies to engage target
costumers).
 Marketing management = the art and science of choosing target markets and building
profitable relationships with them.
 Marketing Management Orientations  concepts under which organizations design and
carry out their marketing strategies to engage target customers and build profitable
relationships with them.

, 1) Production concept ( 1900 – production)  products available and highly
affordable, improving production and distribution efficiency ( the more efficiency ->
more production). Demand > supply.
2) Product concept ( 1915 – quality)  costumers favour Products with best quality,
performance, innovative features, Continuous product improvements
3) Selling concept ( 1930 – selling)  large-scale selling and promotion.
4) Marketing concept ( 1960 – need)  organizational goals depends on knowing
needs and wants of target markets and delivering satisfaction better than
competitors.
5) Societal marketing concept (1975 - environment)  Short-term customer wants vs.
Long-term customer well-being  deliver value to consumers in a way that
maintains/improves consumers wellbeing.

5. An integrated marketing plan
 From marketing strategy to action ( how can I
implement my strategy).
 The marketing mix -> product, price, promotion,
price.
 Designing the marketing mix (4Ps) bearing in mind 4Cs they represent

6. Engaging customer and managing customer relationships
 Customer relationship management (CRM) -> the overall process of building and
maintaining profitable customer relationships by delivering superior customer value and
satisfaction.
 Data -> knowing your customer
 Relevant targeting (person- and/ or location, time-adapted).
 Loyalty programs (financial structural, community-linked basis)
 Customer-perceived value -> the customer’s evaluation of the difference between all the
benefits and all the costs of a market offering relative to those of competitive offerings
 Customer satisfaction -> good CRM creates customer satisfaction -> satisfied consumers
stay loyal. The extent to which a product’s perceived performance matches a buyer’s
expectations. Setting the exceptions right, do not overpromise!
 Expectancy (dis)confirmation theory: P = E (performance = expectancy) -> consumer
satisfied (loyalty) , P > E -> consumer highly satisfied. , P < E -> consumer
dissatisfied (drop in loyalty)
 Marketers must careful set the right level of expectations. If they set expectations
too low -> fail to attract enough costumers. Too high -> buyers disappointed.
7. Customer engagement
 Marketing evolved from transaction- to relationship-orientation.
 Customer relationship management = more than stimulating (repeat) purchases
 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
 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.


8. Capturing value from customers

,  Customer lifetime value = the value of the entire stream of purchases a customer makes
over a lifetime of patronage
 Customer equity = the total combined customer lifetime values of all the company’s current
and potential customers. The more loyal the firm’s profitable customers -> higher the
customer equity.
 Customer Relationship Groups  Cost of customer acquisition >>> Cost of customer
retention, Within group of existing customers: diverse degree of profitability of the
relationship.


9. The changing marketing landscape
 Digital age  growth in digital technology -> changed way we live, communicate, share info,
… -> internet of Things (IoT -> everything and everyone is digitally connected).
 Digital social media marketing -> use of digital marketing tools as websites, media,
apps, email to engage consumers anywhere, anytime. Company reaches out to
customers with multiple websites, fb pages, ….
 Social media provides opportunities to extend customer engagement. Ideal platform
for real-time marketing.
 Dynamic environment
 Artificial intelligence  marketeers can use Al to analyse data at lightning speed and apply
insights to engage costumers in real time.
 Sustainable marketing  marketeers must develop sustainable marketing practices:
corporate ethics, social responsibility -> stricter demands on companies in the future. They
seek ways to profit by serving needs and long-run interest of customers/communities.




Marketing: Marketing Strategy & Marketing Environment
1. Company-wide strategic planning: Defining marketing’s role
 4 steps in strategic
planning:
 Levels of planning:
 Concern-/company
level e.g. Nestlé.

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