Summary of the mandatory literature of the course Marketing Management. Gary Armstrong and Philip Kotler — Marketing, An Introduction. Pearson, Global Edition. Fourteenth Edition, 2020.
marketing management marketing marketing plan management entrepreneurship entrepreneurship and management entrepreneurship and innovation law minor business sciences
Connected book
Book Title:
Author(s):
Edition:
ISBN:
Edition:
More summaries for
Marketing.. an introduction - Pease
Summary of Marketing: An Introduction (ISBN: 9781292146508)
Marketing full Summary
All for this textbook (9)
Written for
Universiteit Leiden (UL)
Rechtgeleerdheid en Minor Bedrijfswetenschappen
Marketing Management
All documents for this subject (2)
Seller
Follow
paulinepeeters99
Reviews received
Content preview
Literature Marketing Management
Universiteit Leiden
Prof. Dr. J. I. van der Rest
September – October 2020
Source:
Gary Armstrong and Philip Kotler – Marketing, An Introduction. Pearson,
Global Edition. Fourteenth Edition, 2020.
DEFINING MARKETING AND THE MARKETING PROCESS – WEEK 1
Chapter 1 – Marketing
The aim of marketing is to create value for customers in order to capture value from customers in
return. At Emirates, they apply a customer value-driven marketing engagement. The company
capitalized a small city-state to build a fast-growing and profitable hub-based business model. They
satisfy a customer’s needs in well-defined target markets. They motivate the whole company and not
only parts of the company.
Defining marketing
Simply put, marketing in engaging customers and managing profitable customer relationships:
attracting new customers by promising value and to keep and grow current customers by delivering
value. Most people are aware of the traditional forms of marketing, such as tv ads or email ads. But
in recent years, marketers have assembled a host of new marketing approaches. These new
approaches reach customers directly and want to enrich your experiences with the brand.
Selling and advertising are only the tip of the marketing iceberg. The marketer tries to engage in
consumer behaviour, understands their needs, develops products that provide superior customer
value. “the aim of marketing is to make selling unnecessary”. Marketing is a social and managerial
process by which individuals and organisations obtain what they need and want through creating
and exchanging value with others. The process by which companies engage customers, build strong
customer relationships and create customer value in order to capture value from customers in
return.
The marketing process
1. Understand the marketplace and customer needs and wants
a. Het begrijpen van de markt en het consumenten gedrag
2. Design a customer value-driven marketing strategy
a. Ontwerpen van een consument waarde-gedreven marketing strategie
3. Construct an integrated marketing program that delivers superior value
a. Realiseren van een geïntegreerd marketing plan dat hoge waardes voorziet
4. Engage customers, build profitable relationships and create customer delight
a. Het betrekken van klanten, winstgevende relaties vasthouden en het creëren van
klant tevredenheid
5. Capture value from customers to create profits and customer equity
, a. Waarde vasthouden van klanten om winst en klant gelijkheid te creëren
Step 1
Needs are basic part of the human makeup, wants however are the form human needs take as they
are shaped by culture/society and individual personality – an american needs food but wants a Big
Mac. When wants are backed with buying power, they become demands. Companies go to great
lengths to understand customer needs, wants and demands. Customer’s needs and wants are
fulfilled through market offerings. Sellers often suffer from marketing myopia by paying more
attention to the specific products they offer than to the benefits and experiences produced by these
products. They focus only on existing wants and lose sight of underlying customer needs. Customer
value and customer satisfaction are building blocks for developing and managing customer
relationships.
Marketing occurs when people decide to satisfy their needs and wants through exchange
relationships (ruilen). The market is a set of all actual and potential buyers of a product or service.
Marketing means managing markets to bring about profitable customer relationships. Today’s digital
technologies have empowered consumers and made marketing a truly two-way affair. Marketing
involves serving a market of final consumers in the face of competitors. The company and the
competitor research the market and interact with consumers to understand their needs. Each party
in the system adds value for the next level. Arrows represent relationships that must be developed
and managed to create customer value and profitable customer relationships.
Step 2 and step 3
Marketing management is defined as the art and science of choosing target markets and building
profitable relationships with them. The marketers aim is to engage, keep and grow target customers
by creating, delivering and communicating superior customer value. Selecting customers to serve – A
company must first decide whom it will serve, by dividing the market into segments. Marketing
managers know that they cannot serve all customers in every way, the company wants to select only
customers that it can serve well and profitably. Choosing a value proposition – A company must also
decide how it will serve targeted customers (differentiation and positioning). Companies must design
strong value propositions that give them the greatest advantage in their target markets. Marketing
management orientation – Designing strategies that will engage target customers and build
profitable relationships with them. There are five alternative concepts under which organisations
design and carry out their marketing strategies: production, product, selling, marketing, and societal
marketing concepts.
, - The production concept: consumers will favour products that are available and highly
affordable. Management, therefore, should focus on improving production and distribution
efficiency (oldest orientation)
- The product concept: consumers will favour products that offer the most in quality,
performance and innovative features. Marketing strategy focuses on making continuous
product improvements. However, only focusing on the company’s products can lead to
marketing myopia
- The selling concept: consumers will not buy enough of the firm’s products unless it
undertakes a largescale selling and promotion effort. Typically practiced with unsought goods
– life insurance or blood donation. The risk is that it focuses on creating sales transactions
rather than on building long-term customer relationships – selling what the company makes,
rather than what the market wants.
- The marketing concept: achieving organisational goals depends on knowing the needs and
wants of target markets and delivering the desired satisfactions better than competitors do.
The job is not to find the right customers for your product, but find the right product for your
customers – contradicting the selling concept.
- The societal marketing concept: it questions if the pure marketing concept overlooks possible
conflicts between consumer short-run wants and consumer long-run welfare. It holds that
marketing strategy should deliver value to customers in a way that maintains or improves
both the consumer’s and society’s well-being. This concept recognizes that societal needs,
not just economic needs, define markets. It is a concept of shared value.
o a balance of three considerations: company profits, consumer wants, and society’s
interests
Step 4
Customer relationship management is perhaps the most important concept of modern marketing. In
the broadest sense, customer relationship management is the overall process of building and
maintaining profitable customer relationships by delivering superior customer value and satisfaction.
A customer buys from the firm that offers the highest 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 competing offers. However, customers often do not judge values and costs accurately they
act on perceived value. Customer satisfaction depends on the product’s perceived performance
relative to a buyer’s expectations. Customer-engagement goes beyond just selling a brand to
consumers. Its goal is to make the brand a meaningful part of consumer’s conversations and lives.
Greater consumer empowerment means that companies can no longer rely on marketing by
intrusion – instead they must practice marketing by attraction, creating market offerings and
messages that engage consumers rather than interrupt them. One form of customer-marketing is
consumer-generated marketing, by which consumers themselves play roles in shaping their own
brand experiences and those of others. increasingly, companies are inviting consumers to play a
more active role in shaping products and brand content.
When it comes to creating customer value and building strong customer relationships today’s
marketers know that they cannot go alone, they must work closely with a variety of marketing
partners. Working close with partners in other company departments and outside the company to
jointly bring greater value to customers.
Step 5
, To capture value from customers, good customer relationships need to be created and managed.
satisfied customers remain loyal and talk favourable to others. good customer relationship
management can also help marketers increase their share of customer. The value of a company
comes from the value of its current and future customers. Customer relationship management takes
a long-term view. Companies want to not only create profitable customers but also own them for
life. The ultimate aim is to produce high customer equity. This is the total combined customer
lifetime values of all of the company’s current and potential customers. It is a measure of the future
value of the company’s customer base. Whereas sales and market share reflect the past, customer
equity suggests the future.
Chapter 2 – Company and marketing strategy
Good marketing strategy means more than just growth, sales and profits. It is fruitful to pursue a
customer-driven strategy. Rolex has performed a strategy that has made the brand synonymous with
precision, achievement, robustness and reliability. Rolex watches give the people that wear it a sense
of belonging to a special/exclusive group of achievers. The exclusive network and limited number of
stores allows Rolex to tightly control its market to strengthen its position by limiting production even
as demand increases. Confident that customers are willing to pay the highest prices it sets, it offers
no discounts, price reductions or special sales. promotion tools convey a consistent positioning and
message – Rolex purchasers are wealthy, attractive and active and lead interesting lives – a
statement of success.
Each company must find the game plan for long-run survival and growth – strategic planning. it is the
process of developing and maintaining a strategic fit between the organisation’s goal and capabilities
and its changing marketing opportunities. This process starts with defining the company mission.
This mission is then turned into setting the company’s objectives and goals. Still at the corporate
level a business portfolio is designed. At the business unit, product and market level there is
marketing planning and other functional strategies. A company’s mission should not be states as
making more sales or profits. Instead the mission should focus on customers and the customer
experience the firm seeks to create. furthermore, the company needs to turn its broad mission into
detailed supporting objectives for each level of management.
Business portfolio
Guided by the company’s mission statement and objectives, management now must plan its business
portfolio – a collection of business and products that make up the company. The best portfolio fits
the company’s strengths and weaknesses to opportunities in the environment. Business portfolio
involves two steps. First the company must analyse its current business portfolio and determine
which businesses should receive more, less, or no investments. Second, it must shape the future
portfolio by developing strategies for growth and downsizing.
- Analysing the current business portfolio
o The process by which management evaluates the products and businesses that make
up the company
o Strategic business units: key businesses that make up the company. The company
has to make use of its strength
The Boston Consulting Group Approach
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 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 paulinepeeters99. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £5.97. You're not tied to anything after your purchase.
