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1ZEUA0 New product marketing total summary
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1ZEUA0 New product marketing This summary is from the year It is a total summary (chapters 1 - 12)
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Lecture notes Principles of marketing (BUS12) Foundations of Marketing
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lOMoARcPSD|10571533Summary New Product Marketing
Brief table of contents
CHAPTER 1 THE NATURE OF MARKETING .............................................................................................................................. 2
CHAPTER 2 THE GLOBAL MARKETING ENVIRONMENT ............................................................................................................ 8
CHAPTER 3 – UNDERSTANDING CUSTOMER BEHAVIOR........................................................................................................ 16
CHAPTER 4 – MARKETING RESEARCH & CUSTOMER INSIGHTS ............................................................................................. 27
CHAPTER 5: MARKET SEGMENTATION, TARGETING AND POSITIONING ............................................................................. 34
CHAPTER 6: VALUE THROUGH PRODUCTS AND BRANDS ...................................................................................................... 39
CHAPTER 7: VALUE THROUGH SERVICES, RELATIONSHIPS AND EXPERIENCES .................................................................... 44
CHAPTER 8: VALUE THROUGH PRICING .............................................................................................................................. 48
CHAPTER 9: DELIVERING CUSTOMER VALUE ....................................................................................................................... 51
CHAPTER 10: INTEGRATED MARKETING COMMUNICATIONS 1: MASS COMMUNICATIONS TECHNIQUES ........................... 57
CHAPTER 11: INTEGRATED MARKETING COMMUNICATIONS 2: DIRECT COMMUNICATION TECHNIQUES .............................. 64
CHAPTER 12: DIGITAL MARKETING ..................................................................................................................................... 67
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Chapter 1 the nature of marketing
Spotify started off with the principle of scarcity, where users could only sign up for Spotify when they were
invited
by a friend to do so. This led to a lot of word-to-mouth advertisement and provided a massive user base.
Gymshark built up through a combination of extensive activity on its social media channels. Athletes gave
feedback and promotion for samples. Offline marketing, pop up events.
The newspaper industry was once all-powerful and the main means by which consumers learned about what
was happening in the world. It continued to thrive with the arrival of radio and television, and complemented
these media.
The activities of companies reflect and shape the world we live in. Marketing is at the center of a business
success, because marketing is at the center of change in the world. Successful companies both get customers but
also keep them. If you don’t have customers, you don’t have a business.
The goal of marketing is long-term customer satisfaction.
Because the purpose of business is to create and keep customers, it has only two central functions – marketing
and innovation. The basic function of marketing is to attract and retain customers at a profit.
Why marketing is important:
- The failure of companies is often due to the lack of attention to customer needs
- The costs of attracting new customers are much higher than retaining existing ones.( six times higher)
- There is a need to build strong relationships with customers and to monitor and understand the
competition
What is marketing?
Marketing concept = the achievement of corporate goals through meeting and exceeding customer needs
better than the competition
Three conditions have to be met before marketing concept can be applied:
1. Company activities need to focus on providing customer satisfaction – companies generally look more
inwards which can let them lose sight of the fast changing needs of the customer.
2. The achievement of customer satisfaction relies on integrated effort – all departments need to work
together
3. To make the integrated effort work, management needs to believe that corporate goals can be achieved
through satisfied customers
Thus companies can have an inward looking view (focus on making things and internal efficiency) or an
outward looking view (first try to understand what customers truly value). By maintaining an outside-in focus,
companies can understand what customers value and how to consistently innovate new sources of value that
keeps bringing them back.
The nature of customer value
Customer value = perceived benefits – perceived sacrifice
- It is framed as a dual exchange concept. First, in order to be successful, firms have to create perceived
value for customers. But customers also return value to firms, both directly through purchases and
indirectly through referrals, word-of-mouth promotion, and even suggestions for product and service
modifications. Above and beyond these ideas of value as exchange, the concept can also be considered
at a societal level, in terms of benefit from both the individual’s and society’s point of view
- Perceived benefits: can be derived from the product, (for example, the hotel room and
restaurant), the associated service (for example, how responsive the hotel is to the specific needs
of customers) and the image of the company (for example, is the image of the company/product
appealing?). conveying benefits is important marketing task & central to positioning and branding
- Perceived sacrifice: total cost associated with buying the product This consists not just of
monetary costs, but also the time and energy involved in the purchase. For example, with hotels, good
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location can reduce the time and energy required to find a suitable place to stay.
The potential psychological cost of not making the right decision can lead to uncertainty which
means that people perceive risk when buying which needs to be taken into account with marketing
Companies have to make sure their offer exceeds in value compared to their competition, but also that the
expectations meet the actual performance to create customer satisfaction. In a high competitive environment
of today, companies need to exceed the expectations of customers.then they will recommend it to friends.
Kano Model
- Helps to understand the concept of customer satisfaction
- helps to separate characteristics that cause dissatisfaction, satisfaction and delight
- Must be are expected and taken for granted
- More is better take it pas neutral into positive satisfaction
- Delighters unexpected characteristics that surprise the customer
Four forms of customer value
- Price value; one of the most powerful customer motivations to purchase is because a product is
perceived as being cheaper than those offered by competitors.
- Performance value; other costumers are more concerned with product performance. They look for the
last features and are attracted to products by their functionality and quality levels.
- Emotional value; nowadays it’s hard for firms to differentiate products based on performance
elements, the difference between brand is in the mind of the consumer and this is the emotional
value. These differences are created through marketing. Huismerk chocola of milka
- Relational value; this is about the quality of service received by the customer.(mobile phone provider)
When a customer finds a good quality service provider it can mean that the customer stays with them
for a long time, thus a strong relationship.
o Lifetime value of a customer; potential value in sales, profits or endorsements that a customer
that stays customer for multiple years can bring a company.
o CRM – Customer Relationship Management; used more and more to get to know customer
better and interact with them
Challenge for companies is to become value leader in one of these four dimensions, thus present a clear
customer value proposition. Usually companies only specialize in one dimension to avoid confusing marketing
messages. → clearly defined customer value proposition or unique selling point (USP), this is the reason ppl
return.
Marketing; is the delivery of value to customers at a profit.
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- It became a data driven discipline
The development of marketing
Marketing can be traced back to the Industrial Revolution.
marketing orientation: companies with a marketing orientation focus on customer needs as the
primary drivers of organizational performance
Production orientation: focused on current production capabilities. The purpose of the organization is to
develop products or services and it is the quality and innovativeness of these offerings that are considered to
be the key to success.
sales orientation: a business approach that focuses on the development of products and services and the
aggressive selling of these offerings as the key to success
Sales focus: marketing should be focused on ensuring that customers buy our offerings. art of mass
production created a high surplus of products and aggressive sales efforts.
Customer-oriented companies: get close to customer and try to understand them. Close contact with
customers is important to understand the changes in their needs.
Satisfied customers are important because they will tell others about their positive experience.
Up and coming is the societal marketing concept (or sustainable marketing); the marketing strategy should
deliver value to customers in a way that maintains or improves both the consumer’s and society’s value well-
being. Companies need to participate in CSR activities.
Market-driven or outside-in firms; seek to anticipate as well as identify consumer needs and build the resource
profiles necessary to meet current and anticipated future demand.
Marketing planning and strategy
Marketing needs to be done consistently, because markets change.
Marketing planning; the process by which businesses analyze the environment and their capabilities, decide
upon courses of marketing action and implement those decisions. Key questions:
- Where are we now?
- Where would we like to be?
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