1. MARKETING PRINCIPLES & PRACTICE
1.1 WHAT IS MARKETING?
Marketing is a social and managerial process by which individuals and groups obtain what they
need and want through creating and exchanging products and value with others.
= build and maintain profitable customer relationships with stakeholders
Exchange obtaining a desired object from someone by offering something in return
− 2 parties
− Something of value to offer
− Want to deal with each other
Customer value: how much a product or service is worth to a customer
− Benefits?
− Costs?
− Perceived value?
Applications marketing:
− Physical products
− Services
− Retail
− Experiences
− Events
− Film, music, theatre
− Places
− Ideas
− Charities & non-profits
− People
→ anywhere buyers have a choice
1.2 WHAT IS THE DIFFERENCE BETWEEN CUSTOMERS AND CONSUMERS?
Consumers’ buying roles
− Initiator: initiates idea
− Influencer: influences
− Decider: ultimate buying decision
− Buyer: actual purchase
− Payer: pays
− User: consumes
− Gatekeeper: controls access
1.3 MARKET ORIENTATION
= a strategic focus on identifying consumer needs and desires in order to define new products to
be developed
e.g., cars instead of faster horses
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,The 3 components of market orientation
− Customer orientation
Developing and redeveloping offerings to meet customer
needs. So, we should measure customer satisfaction on a
continuous basis and train our service staff
− Competitor orientation
understanding of its competitors’1 short-term strengths and
weaknesses, and its own long-term capabilities and
strategies
− Interfunctional coordination
requiring all an organization’s functions to work together for
long-term profit growth
Customer centricity
= you put the customer at the centre of everything you do
→ try NOT to please ALL customers because it is impossible
1.4 MARKETING’S INTELLECTUAL 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
. Persuasion2, 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, …
1.5 DIFFERENCES BETWEEN SALES AND MARKETING
Marketing Sales
long-term satisfaction short-term satisfaction
greater input into customer design of offering lesser input into customer design of offering
high focus on stimulation of demand low focus on stimulation of demand
More focused on meeting existing demand
United colors of Benetton
ZARA
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,1.6 WHAT DO MARKETERS DO?
Marketing competencies:
Marketing within organizations
− Enhancing a firm’s relationships with its customers
− 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
1.7 MARKETING AS EXCHANGE
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, What can customers and other stakeholders bring of value, other than purchases?
1.8 THE MARKETING MIX AND THE 4P’S (P. 23)
Product Customer
Price Cost
Place Convenience
Promotion Communication
1.9 THE EXTENDED MARKETING MIX
Physical evidence: the tangible components of services were strategically important.
Process: services from the start till the customer received their product (and even after)
People : the workers and their impact
Personalisation
1.10 RELATIONSHIP MARKETING, SERVICE-DOMINANT LOGIC AND CO-CREATION
Relationship marketing: process in which the company builds, maintains and enhances strong,
valuable relationships with customers and other stakeholders
→ loyal customers
. will increase their purchases over time
. are cheaper to promote to
. who are happy with their relationship with a company refer it to others
. are prepared to pay a (small) price premium
CRM (= Customer relationship management): The process of acquiring3 detailed information of
individual customers and carefully building and managing customer relationships by delivering
superior value.
Marketing automation is a technology that allows companies to streamline, automate, and
measure marketing tasks and workflows, so they can increase operational efficiency and grow
revenue faster.
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