Chapter 1: Marketing Principles and Practice
1.1. What is Marketing?
= a social and managerial process by which individuals and groups obtain what they need & want through
creating and exchanging products and value with others.
(business) to build and maintain profitable customer relationships with stakeholders
Exchange = act of obtaining a desired object from someone by offering sth in return
• Two parties
• Each must hold sth of value to offer
• Parties must want to deal with each other
Creates value, gives people more consumption choices/ possibilities
Value = costumers assessment (beoordeling) e.g: Tesla
= perceived value (waargenomen)
1) Physical products (cars, food, iMac)
2) Services (ING, Google)
3) Retail (Zara, Mediamarkt, Amazon)
4) Experiences (Pairi Daiza, Disneyworld)
5) Events (Tomorrowland)
6) Film, music & theater (La La Land)
7) Places (Stad Antwerpen)
8) Ideas (Don’t drink & drive)
9) Charities & non-profits (De warmste week)
10) People (famous: Trump, politics)
Marketing applies … (van toepassing) => anywhere “buyers” have a choice
1.2 What is the difference between customers and consumers?
Customer = buyer/ klant Consumer = user/ verbruiker
Consumers’ buying roles: initiator: initiates idea / influencer: influences /decider: ultimate buying decision/
buyer: actual purchase (daadwerkelijke aankoop)/ user: consumes/ gatekeeper: controls access
(poortwachter controleert toegang)
e.g: old spice (shampoo: poster with girl fewer trigger to buy/ video with man: more)
1.3 Market Orientation
= organization-wide belief in delivering customer value (leveren klantenwaarde)
= Understanding consumer needs even better than consumers themselves do
= Creating products that meet existing and latent needs, now or in future
(Kohli and Jaworski, 1990)
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, The three components of market orientation (figure 1.1)
Competitor = concurrent
➔ The simple
average of the scores of the three components is the market orientation score
- Customer orientation: meet customer needs, measure customer satisfaction on a
continuous basis and train front-line service staff
- Competitor orientation: which requires an organization to develop an understanding of its
competitors’ short-term strengths and weaknesses, and its own long-term capabilities and
strategies
- Interfunctional coordination: which requires al functions of an organization to work together
for long-term profit growth
Customer centricity (klantgerichtheid) is also … => NOT trying to please ALL costumers => fulfilling needs
in a profitable way (behoeften vervullen winstgevende)
1.3 Marketing’s intellectual roots
Industrial economics influences:
• Supply & demand (price, quality)
• Theories of income distribution, scale of operation, monopoly, competition …
Psychological influences:
• Consumer behaviour motivation research, information processing
• Persuasion, consumer personality, costumer 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 behavior
Computer science influences: Digitization, recommendation systems, apps, …
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,1.4 Differences between Sales & Marketing
Sales = shorter (tip of the iceberg)
Marketing = longer (under the top)
“The aim of marketing is to make selling superfluous.” -
Peter Drucker (doel marketing = verkopen overbodig makn)
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, 1.5 What do Marketers do?
Functional map for professional marketing
competencies
Marketing within organizations:
- Marketers do not control all the marketing mix elements.
- Marketing is present in all aspects of an organization, since all departments play a role in creating,
delivering and satisfying customers (Gummesson, 1990)
Core competencies of the marketer: generate customer insights, champion the customer & hence
customer focus and develop marketing strategies
Sheth and Sisodia have recommended that marketers might reform their reputation by:
- Showing more integrity, gratitude (dankbaarheid), recognition (herkenning), and humility towards,
and building real trust with customers
- Building a true dialogue with customers and respecting their privacy
- Striving for authenticity by really personalizing customer offerings rather than only appearing to do
so
- Asking for forgiveness in the occasional instance in which their judgement lapses and they treat
customers badly
- Having the courage to stop over-promising and under-delivering
- Showing respect for customer, competitors and supplier
Understand the marketplace and customer needs: (samenvatting K)
“Marketing is not about you. It is about your customers an the needs our customers have.
1.6 Marketing as exchange
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