College aantekeningen
Marketing - Class Notes All Chapters
- Instelling
- Katholieke Universiteit Leuven (KU Leuven)
All chapters of the Marketing Course at Ku Leuven Brussels.
[Meer zien]Voorbeeld 4 van de 59 pagina's
Voorbeeld 4 van de 59 pagina's
In winkelwagen
Voorbeeld van de inhoud
1Chapter 1: What is Marketing?
Objectives:
• To define “Marketing”
• To describe the development of the marketing concept.
• To explain how marketing activities fit in with the other business disciplines
• To illustrate the concept of ‘Product’ and the concept of ‘Market’
• To introduce the marketing concept in 4 questions:
1. On what pillars is marketing founded?
2. What purposes does marketing want to achieve?
3. What is the strategy to reach this goal?
4. How is the marketing strategy managed?
About Marketing
Marketing is indeed about creating exchanges between those who have it and those who want it and
indeed this process is quite demanding for both parties to be successful. And no, marketing is much
more than an academic synonym for advertising and/or sales.
Marketing Is the covering term given to all activities which occur at the interface between the
organization and its customers.
• The aim of marketing as a discipline is to ensure that customers will conduct exchanges with
the marketer’s organization rather than with the other key competitors.
• To do this effectively, marketers must provide those customers with what they want to buy,
at prices which represent value for money in the most convenient way possible.
Defining Marketing
The actual and worldwide accepted definition of Marketing as published by the leading American
Marketing Association reads as follows:
- Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and
society at large.
Firstly, we should note that marketing is an activity, rather than an outcome. Essentially, it is the things
that an organization does in order to achieve corporate goals. Ex. KU Leuven developed a website.
The term “set of institutions" refers to any possible organized structure such as a company, a
department, a law, a tool, in short, any form of an established structure, that we could combine, link
to each other and use in a marketing perspective.
- Ex. KU Leuven –an organization- developed a website –a tool- conform to the European GDPR
directive –a law. Together they form a set of institutions.
“Processes" are series of actions in a specific sequence that are taken in order to achieve a result. For
example: The development of the website went through a process from draft, to demo, to final version.
- This part of the definition highlights that it is not just a department or a function but much
more than that. Marketing is an organized series of activities interacting between structures
“Marketing is the activity, set of institutions, and processes for creating, communicating, delivering,
and exchanging offerings that have value for customers, clients, partners, and society at large.”
- This part of the definition highlights the key outcomes of marketing. The final goal of any
organization. The ket-word here is “value" referring to suitable products that provide benefits
and solutions to the marketplace. The activity of “creating” points to research and
development of our offerings, the word “communicating" obviously refers to our
communication and promotion, and the word “delivering" refers to our distribution channels.
“exchanging" refers to actually achieving some form of sale in the marketplace – where we typically
exchange a product for a return, that is, a price or any other effort the customer has to provide.
, 2
“Marketing is the activity, set of institutions, and processes for creating, communicating, delivering,
and exchanging offerings that have value for customers, clients, partners, and society at large.”
- The final part of the definitions stresses the various stakeholders to whom we want to
provide value and “customers” are obviously a key targeted group.
- “Clients" is a broader term which suggests a profit as well as a non-profit focus. This is
important because marketing activities extend beyond simply profit motivated firms. Many
non-government organizations, not-for-profit firms and even government institutions, and
locations and events and ideas, and so on – are marketed. Therefore, the word “clients"
reflects a broader perspective beyond just customers.
- “Partners" refers to the array of supporting businesses and relationships that are critical in
achieving commercial success. Partners would include suppliers, wholesalers, retailers, as
well as consultants, legal advisers, strategic partners, and so on.
- “Society at large" reflects the current trend towards firms providing overall value to the
broader community, rather than being simply focused upon their own profitability. It is a
reflection of the shift to the societal marketing concept (ecology, sustainability, equality,
culturalism, ...).
By comparing this definition with its previous versions, you will notice that some key components or
words ‘disappeared’.
Exploring the ‘evolution’ of this definition shows us that:
- From the academic point of view: Marketing has evolved from improvising opportunism to
a science.
- From the managerial point of view: Marketing evolved from transactional performance to a
management competence, further to an integrated business process.
- From a societal point of view: Marketing evolved from a pure economical exchange
facilitating competence to a pronounced social responsibility.
To close this definition section please watch this short presentation by the father and encyclopedist of
modern marketing, dr. Philip Kotler:
Marketing = CCDVTP.
How do organizations market their products?
The focus of how to market products has gone through a series of evolutionary stages. Today, we
recognize 5 stages:
, 3
Stage 1- Production Orientation:
• The evolution of marketing theory starts with production orientation:
• Production orientation is the view that the route to corporate success lies in
production efficiency, getting production costs as low as possible (usually by
manufacturing in very large volume) in order to reduce costs and prices.
• This orientation had its beginnings at the start of the Industrial Revolution. Up until the 19th.
century, almost everything was hand-made and made to measure. Clothing was produced by
tailors to almost exact measurements or was made at home, houses and vehicles were
produced to customer specification, and relatively few items were standardized. Producing in
this way is relatively expensive, consequently prices were high for most goods and people
owned correspondingly fewer things. When machines were introduced to speed up the
manufacturing process, costs dropped to perhaps one tenth of the cost of customized
products, so that prices could also be cut provided enough goods could be sold. The longer the
production run, the lower the costs and consequently the greater the profit.
• Customers were prepared to accept items that were not exactly meeting their needs, since
prices were a fraction of what they would have had to pay for the perfect, tailor-made article.
For manufacturers, the key to success was therefore ever more efficient and low-cost
production, but at the cost of meeting individual customers’ needs.
In short:
• The production concept is based on the approach that a company can increase supply as it
decreases its costs via mass production and economies of scale - decreased production cost
per unit- maximizing profits. Companies that use the production concept have the belief that
customer’s wants are restricted to products that are accessible and affordable.
• Because people wanted fridges to keep their food and drinks cool and safe, manufacturers
started to produce fridges in mass. They came in 1 size and in 1 color to keep costs low, but
people were happy to get one.
Stage 2- Product Orientation:
• Product orientation is the view that an ideal product can be produced that will have all the
features any potential customer might want.
• This orientation is thought to be a result of oversupply of basic goods. Once everyone already
owned the core benefits of the products concerned, customers got bored and manufacturers
needed to provide something different in order to keep sales and profits going.
• Products with more features, made to a higher quality standard, began to be introduced.
The drawback of this approach is that the price of the product increases dramatically, and
customers are not always prepared to pay for features they will never use.
In short:
• This concept works on an assumption that customers prefer products with greater quality and
with more features. So, companies develop a product of greater quality and offering more
features, which usually turns out to be expensive.
• More and more people wanted something else. Some wanted a fridge combined with a freezer,
in another color than white, some other preferred a built-in model. So, manufacturers started
to enlarge their assortment with better equipped but more expensive fridges. People were
happy again because of this diversity.
Stage 3- Sales Orientation
• This concept is based on the idea that manufacturing companies can produce far more goods
than the market can accept. Sales-oriented companies assume that people do not want to buy
goods unless they are persuaded to do so.
• Sales orientation relies on several assumptions:
1. That customers do have plenty of alternatives (competing products and brands) to
choose from.
2. That they must be persuaded by all kinds of incentives such as price cuts, promotions,
sales talk.
3. That they like it that way.
, 4
In short:
• The selling concept focuses on making an actual sale of the product in a context of heavy
competition. Selling concept focuses on making every possible sale of the product, regardless
of the quality of the product or the need of the customer.
The selling concept highlights that customers would buy a company’s products only if the
company were to sell these products aggressively.
• There is nothing wrong by promoting a product but ethical and legal borders cannot be
crossed. This concept gave Marketing and Sales a “bad name” and generated the consumerism
movement and all sorts of legal consumer protections.
Stage 4- Marketing Orientation
• Marketing orientation means being driven by customer needs: this is sometimes also called
customer orientation. Companies that are truly marketing oriented will always start with the
customer’s needs ...whatever the business problem.
• Customers can be grouped according to their different needs, and a slightly different product
offered to each group. This type of differentiation allows the company to provide for the needs
of a larger group in total, because each target segment of the market is able to satisfy its needs
through purchase of one or other of the company’s products.
• The underlying assumption of marketing orientation is that customers want to satisfy their
needs and will be willing to buy products that do so. Customer need includes a need for
information about the products, advice about product usage, availability of products and so
forth. Customer need therefore goes beyond the basic functional benefits of the product itself
appealing to emotions such as status.
• Marketing orientation also implies that customer needs are the driving force throughout the
organization. Decisions within the organization, in every department from manufacture
through to delivery, need to be taken in consideration of customer needs at every stage.
In short:
• A company that believes in the marketing concept places the consumer at the center of the
organization. All activities are geared towards the consumer. A business aims to understand
the needs and wants of a customer. It executes the marketing strategy according to market
research beginning from product conception to sales.
• Instead of producing first and then trying to sell, marketing-oriented companies first research
what customers want and then start producing it.
• By focusing on the needs and wants of a target market, a company can deliver more value
than its competitors. This means that a brand is so strong that customers would always prefer
your brand to others’.
Stage 5- Social Marketing Orientation
• The most recent stage in the evolution of marketing theory is societal marketing. Societal
marketing includes the concept that companies have a responsibility for the needs of society
as a whole. Should include environmental impact & the impact of their products on non-users.
• Societal marketers believe that sustainability is a key issue since it is of no help to the long-
term survival of the firm if natural resources are used too quickly. Long-term results of use of
the product are also considered, in terms of their impact on the environment. For example, a
car manufacturer might aim to make cars quieter in operation rather than simply improving
the soundproofing for its occupants and ignoring the needs of people who live near major
roads.
In short:
• This is the latest marketing concept. While the societal marketing concept highlights the needs
and wants of a target market and the delivery of better value than its competitors, it also
emphasizes the importance of the well-being of customers and society as a whole.
• The societal marketing concept calls up on marketers to build deontological and ethical
considerations into their marketing practices. They must balance and juggle the often
conflicting criteria of company profits, consumer want satisfaction, and public interest.
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
√ Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, Bancontact of creditcard voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper martadelgado. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €5,69. Je zit daarna nergens aan vast.
Is Stuvia te vertrouwen?
4,6 sterren op Google & Trustpilot (+1000 reviews)
Afgelopen 30 dagen zijn er 67474 samenvattingen verkocht
Opgericht in 2010, al 14 jaar dé plek om samenvattingen te kopen