Marketing chapter 1: Marketing Principles and Practice
Objectives
1. Define the marketing concept
2. Explain how marketing has developed over the twentieth century and into the twenty-first century.
3. Describe the three major contexts of marketing application, i.e. consumer goods, business-to-business, and
services marketing.
4. Understand the positive contribution marketing makes to society.
1.1 What is marketing?
Marketing
- = A social managerial process by which groups/individuals obtain what they need and want through creating
and exchanging product with value
- → building and maintaining profitable customer relationships
Exchange
- = The act of obtaining a desired object (=smt of value) from someone by offering smt in return
→ Marketers offer smt with value, customer offers money/relationship/trust/… in return
- Creates value
- Gives more consumption choices/possibilities
Value
- Customer value: the consumers assessment of the products overall capacity to satisfy the needs
→ perceived value
- Economist approach = maximize utility, but value is mare than utility alone consumers pay for more than just
the utility
Market orientation
- Organization wide belief in delivering customer value
- Understanding customer needs better than the customer themselves → creating products to meet existing
and latent needs (now or in the future; e.g. the first cell phones)
- Components
o Customer orientation: customer first
o Competition orientation: stay ahead, work off their ideas long-term profit focus
o Interfunctional coordination: work as a whole
Assessment = beoordelingsprogramma
Latent needs = not obvious needs, when the customer doesn’t know they would need it
,Customer centricity
- Not trying to please ALL customers
- Fulfilling needs in a profitable way → create value for the target audience
Marketing roots
- Industrial economics influences:
▪ Supply and demand (price, quantity)
▪ Theories of income distribution, scale of operation, monopoly, competition, …
- Psychological influences
▪ Consumer behaviour, motivation research, information processing
▪ Persuasion, consumer personality, customer satisfaction, …
- Sociological influences
▪ How groups of people behave: Demographics, class, motivation, customs, culture
▪ How communication passes through opinion leaders, …
- Anthropological influences
▪ Qualitative approaches in researching consumer behaviour
- Computer science influences
▪ Digitization, recommendation systems, apps, …
Development of marketing
- Production (demand > supply) → sales ( create demand, advertising) → marketing (customer’s need first)→
social marketing (impact on society, positive contribution).
Differences marketing and sales
- Sales = tip of the iceberg
,1.2 Marketing: Application and relevance
Marketing applies anywhere “buyers” have a choice
- Physical products, services, retail, experiences, events, places, film, ideas, charities, people
1.3 Marketing Process
The need to understand the market place and its
needs
Stakeholders example University:
Parents, professors, the government,
companies,… anyone who has an interest
in the organization
Get stakeholders involved
, Needs
- “Marketing is about the customer and its needs” Maslow pyramid of needs
- Solution to a need focusing on just the product
- Underlying needs (meaning, experience,..)
Marketingaanbod: Combinatie van producten, diensten,
informatie of ervaringen die aan een markt worden aangeboden
om een behoefte of wens te bevredigen
Selecting a target market
- Market segmentation
- Target marketing
Value proposition
“Why should customers buy our brand instead of competitors
- Differentiation (guest lecture: YUKI)
- Positioning (associating your brand with fun, safety,…)
Triple Value Proposition
- Example: Patagonia → donating Black Friday sales to charity
o Connecting to community
o Receiving value by people wearing the brand, not through profits with this action
Marketing mix
- Shifting from a company perspective to putting the focus on the customers needs
- PPPP -> CCCC
Personalisation (examples)
- Starbucks: writes your name on the cup → value the customer (→ writing name wrong)
- Netflix: home page personalized → they know what you watched, they adept everything to you and your
- Artificial intelligence
PPPP = product, price, place, promotion
CCCC= customer, cost, communication, convenience
