Marketing: chapter 1
1.1. What is Marketing?
Marketing= is a social and managerial process by which individuals and groups obtain (verkrijgen) what
they need and what they want through creating and exchanging products and value with other.
Marketing starts by your customer.
- Business: to build and maintain profitable customer relationships with stakeholders.
- by being creative and selective
Creating value by…
Exchange
= the act of obtaining a desired object from someone by offering something in return.
Terms:
- 2 parties
- Each parties must hold something of value to offer
- Parties must want to deal with each other
Creates: Value, more consumption possibilities
Also creates win-win situation value is different for everyone.
Exchange gives options you did not have when you don’t do it.
Customers Value
=Consumer’s assessment (beoordeling) of the product’s overall capacity to satisfy their needs how much
a product or service is worth to a customer
- Perceived value (ervaren waarde)
- Utility doesn’t provide the whole picture emotions determine people’s choices.
- Benefits?
- Cost?
Ex. Tesla: benefits by economists: green image, reduce cost of gas Drawback: very expensive, long waiting
time. Perceived value : beautiful car, high image
British royal mail, stamp: next day delivery with the stamp 97% really the next day
Difference economist: economist want to go to 98%, marketing: advertise to change perspectives.
Where can marketing be applied? / What does marketing apply to?
Physical products ex: car, m&m, phone
Services ex: things they can do for us ing, google
Retail(=verkoop) ex: shops as Zara, Amazon
Experiences ex: Disneyland, Zoo
Events ex: Olympics, demonstrations
Film/music/theatre
Places ex: vacation advertisments
, Ideas ex: bob-campagne
Charities and non-profits ex : warmste week
People ex: Trump
Anywhere people have a choice between different things marketing applies.
1.2. What is the difference between customers and consumers?
- Customer: a buyer, client, shopper, obtains an offering, Broader group potential customer, who
has an influence
- Consumer: uses it /eats it
Consumers’ buying roles
- Initiator ‘who’s up for a drink after class ‘
- Influencer ‘ that’s a good idea but we went yesterday can we go to another bar’
- Decider ‘let’s go there at that time’
- Buyer ‘ I pay’
- User ‘ I drink’
- Gatekeeper : parents ‘be at home at 10’/ bar keepers ‘ you had to much’
Can all be one person : I buy, drink, decide,….
Example: consumer roles are important
Old spice
- Target: men who buys deo for men women
- Women buy things that smell nice
- Changed their tone targeted the women as buyers /deciders to buy for the man as users
1.3. Market orientation
= organisation-wide belief in delivering customer value. Not only marketeers job also the others parts of
the team. Has to live in the entire organisation.
Example : phone
Why do we need it?
- Understanding those needs better than consumers themselves create those needs
- Underline need of wanting to connect fear of missing out
- Hard for consumers to express that
- Marketeers job : connection the dots, that others don’t see what do they need /out of the box
thinking
Long term focus
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’ 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 center of everything you do
Try not to please all customers because it is impossible
1.4. Marketing’s intellectual roots
Influences
- Industrial economics influences
Supply and demand
Theories of income distribution, scale of operation, competition
- Psychological influences
How personality effects the products that we buy
Consumer behaviour, motivation research
- Sociological influence
How groups behave: class, motivation, culture
How communication passes trough opinion leaders
- Anthropological influences
Qualitative approaches in researching consumer behaviour
Ex: Intervieuws, trying to understand what is going on
- Computer science influences
Use AI to try to engage with or to collect / use data
Digitalization, apps
1.5. difference between sales and marketing
Selling and advertising is just what consumers see as advertising ( tip of the iceberg) we just see the
attempts that companies are making. There is a lot more behind it such as the choise of timing or the
pricing,…
Ex. Who is more successful Zara/ Benetton?
Considerations : Zara : more stores, see it more , cheaper but they understand the fear of missing out
and use it more collections , people who have FOMO will come more, understood there people, making
cheap clothes so that everyone can buy more. Rather than working with franchises they want to own al the
stores to be faster.
Not something we see as a consumer
Benetton: known for its controversial advertising they don’t understand there target
Aim of marketing
Design a product that sells itself , make it available, start from customers’ needs not from a product.
, Differences
marketing sales
Tends long-time satisfaction of customer needs Tends short-time s.
greater imput into customers design of offering (co- Lesser imput into customer design of offering
creation)
High focus on stimulation of demand More focused on meeting existing demand
1.6. What do Marketers do?
Core of marketing : generate customer insights and analysing them putting the customer at the heart of
their organisation , developing strategy
Technical competencies (vaardigheden)
- Invest in the brand
- Risk and reputation management
- Seak out partnerships
- Product management
- Measuring effectiveness
- Need to understand what an investment is
- Entrepreneurial skills
- Customer experience
- Marketing within organisation
marketers within organisations
- marketing put customers first
- marketing should develop further in enhancing a firm’s relationships with its customers
- marketing is present in all aspects of organization
- but marketers do not control all the marketing mix elements
they have to find a balance
CEO’s with a marketeers background outperform al other CEO’s in having a better strategy, long-term
vision,…
1.7. Marketing as exchange
value
importance of values that they can offer
- Brand , status that comes
with the brand, trust
stakeholders
Not only market to your customers but to a
broader world, invest in stakeholders : Stakeholders : people who have an interest in the organisation. Can
be : suppliers , public opinion , government , employees, students
Their importance/ values : discuss about prices, trust , funding, influence
Co-creation: Actively engaging these stakeholders .
Uses of marketing: ex. Antwerp : parents of students, businesses
