MARKETING
1 Marketing principles and practice
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 from someone by offering smt in return
➢ Marketers offer smt with value, customer offers money/relationships/trust… in return
➢ Creates value
➢ Gives more consumption choices/possibilities
Customer value: the consumers assessment of the products overall capacity to satisfy the needs
➢ Perceived value, not always objective
Economist approach to value is to maximize utility, but value is more 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
- Components
o Customer orientation: concerned with creating
superior value by continuously developing and
redeveloping offerings to meet customer needs,
meaning that we should measure customer
satisfaction on a continuous basis and train front-
line service staff
o Competition orientation: requiring an organization to develop an understanding of its
competitors’ short-term strengths and weaknesses, and its own long-term capabilities and
strategies
o Interfunctional coordination: requiring all an organization’s functions to work together for
long-term profit growth
➔ Long-term profit focus
Customer centricity
- Not trying to pleas all customers
- Fulfilling needs in a profitable way: create value for the target audience
Marketing roots
- Industrial economics influences
o Supply and demand (price, quantity)
o Theories of income distribution, scale of operation, monopoly, competition,…
- Psychological influences
o Consumer behaviour, motivation research, information processing
o Persuasion, consumer personality, customer satisfaction,…
- Sociological influences
o How groups of people behave: demographics, class, motivation, customs, culture
o How communication passes through opinion leaders,…
- Anthropological influences
o Qualitative approaches in researching consumer behaviour
- Computer science influences
, o 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
Marketing Sales
- Tends towards long-term satisfaction of - Tip of the iceberg
customer needs - Tends towards short-term satisfaction of
- Tends to greater input into customer design customer needs; part of the value delivery
of offering (co-creation) process as opposed to designing and
- Tends to high focus on stimulation of development of customer value processes
demand - Tends to lesser input into customer design
of offering
- Tends to low focus on stimulation of
demand; more focused on meeting existing
demand
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
The core competencies of the marketer are to generate
customer insights, champion the customer (defend
customers needs) and hence customer focus and develop
marketing strategy
, Marketing applies to industrial organisation
but also other organisations, like charities
The market is not only customers but
stakeholders are also involved
Ex. university: students are customers but
businesses, sponsors, media, government
and parents are stakeholders
Co-creation: active involving of stakeholders
and customers
Needs
- “Marketing is about the customer and its needs”
- Solution to a need and not just focusing on 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
- Positioning
Triple value proposition
- Practical: how does this brand improve my life?
- Social/environmental: how does this brand help me make a difference
in the world?
- Tribal: how does this brand connect me to a community that shares my
values, hopes and aspirations
Marketing mix
Shifting from a company perspective to putting the focus on the customers needs
➢ From PPPP (product, price, place, promotion) to CCCC (customer, cost, communication,
convenience)
, Personalisation
- Starbucks writes your name on the cup
- Netflix had it’s home page personalized
Marketing automation MA
“A category of technology that allows companies to streamline, automate and measure marketing tasks and
workflows, so they can increase operational efficiency and grow revenue faster”
MA: transforming people who might be interested, possible customers into customers
Customer relationship marketing CRM
Acquiring detailed information of individual customers and building and managing customer relationships by
delivering superior value
Collecting information through touch points
- Moments of purchase
- Contacts with sales teams
- After sales service
- Website visits
- Payments
- Surveys
Very important term in modern marketing
Selective relationship management
Customer lifetime value: prediction of all the value a business will derive from their entire relationship with a
customer
Maximizing profit over customer’s lifetime
Losing customer: losing lifetime’s worth of purchases and referrals
Customer delight
More than satisfaction
Creating emotional affinity for a product or service beyond just a rational preference
➢ Creating high customer loyalty
Outcomes of creating customer value
- Satisfaction leads to positive word of mouth
- Customer loyalty and retention
- Growing market share, growing share of customer
- Building customer equity
1.4 Marketing’s impact on society
Micromarketing
The study of the effect that marketing processes, activities and institutions have on the economy and society
