Marketing year 1 quarter 1:
Week 2 Summary book chapter 1:
Marketing process in 5 steps:
1. Understand the marketplace and customer needs. (research customers and the market
place)
2. Design a marketing strategy based on the customers behavior. (Marketing segmentation and
targeting: select consumers to serve)
3. Construct a marketing program. (build brands, create value, manage demand and supply)
4. Build profitable relationships with customers and keep them happy.
5. Capture value from customers to create profits and customer equity (the lifetime and value
of a customer)
Customer needs, wants and demands:
Needs: things a human needs, such as food clothing, safety, warmth knowledge.
Wants: human needs shaped by culture, individual personality.
Demands: human want that backed by buying power.
A successful business gets close to their customers by finding out what they do and understand their
needs, wants and demands.
Marketing offerings: Products, services, information of experiences offered to a market to satisfy a
need of a want.
Marketing myopia: the mistake that marketeers make by paying more attention to the wants of the
customers than what they actually need. They pay more attention to the products than the benefits
of the product and the experiences produced by these products.
Customers choose a product out of the broad market from expectations about the value and
satisfaction of the product/ service. It is important that marketeers set the right level of expectations.
This way people won’t get disappointed or the product/ service attracts to less.
The market is the place where demand and supply meet each other.
Sellers on the market must engage (bezighouden) buyers, identify their needs, design good market
offers, set prices, promote, store and deliver.
Marketing management: After understanding the consumers and the marketplace marketeers have
to choose a target market and build profitable relationships with them. What kind of consumers are
we going to serve and how can we do that the best way?
Step 1 Market segmentation: dividing the market in to groups of consumers.
Step 2 Target marketing: choose which segment you’re going to serve.
Step 3 Value proposition: what differentiate one brand from another.
,There are 5 marketing management organizations:
Production concept: the idea that consumers prefer products that are available and highly
affordable. The company focuses on improving the production and distribution.
Product concept: Making continuous product improvements. Focus on quality. The idea that
costumers will value the products that offer the most quality and performance. F.e. oil, banking.
Selling concept: Focused on selling and promotion skills to sell what the company has instead of
focusing on what the market wants. Creating sales transactions instead of building long term
business relationships. Unsought goods. F.e. insurance, phone subscription.
Marketing concept: knowing the needs and wants of the market and deliver them better than
competitors. Customer focused to achieve profits. Finding the right product for your customers
instead of finding the right customers. F.e. Ikea
Societal marketing concept: looking for a balance between the long term interests of the consumer
(satisfaction), the company (profits) and the society (human welfare). Bv. Body shop, lush, tony
chocolony.
Summary book Chapter 20 (p. 611 + 612) Sustainable marketing
Sustainable marketing concept: A way of marketing that makes choices that are good for the society
and the environment, that meet the needs of present consumers and businesses and preserves (in
stand houden) and enhances (verijken) the ability of future generations to meet their needs.
Differences between marketing concepts:
The difference between the sustainable marketing concept and the marketing concept is that
the marketing concept only focuses on what the customer wants now. This doesn’t serve the
future interests of the consumers. The sustainable marketing concept focusses on both.
The societal marketing concepts only focuses on the future and the sustainable concept
focuses on the future and the present.
Week 3 Chapter 8 PowerPoint summary:
Product: Everything that can be offered to a market that might satisfy a want or a need:
Pure tangible good: A high physical good, low services. For example Paper.
Pure non-tangible services: High service, low physical goods. For example Netflix
Everything in between. For example experiences.
, 3 levels of a product:
1. Core product: What are the benefits that our product is giving to our customers. Which
needs are fulfilled by the product? For example A phone gives you communication. A car
gives you transport.
2. Actual product: The physical good or delivered service that you actually get. What is the
actual product? Features, design, packaging, quality level, brand name?
3. Augmented product: Extra services and benefits beyond the core and actual product.
Warranty, delivery.
Service: Any activity or benefit that is offered that is intangible (immaterieel) and does not lead to
ownership of anything. For example a vacation, the dentist, a lecture.
4 service characteristics:
Intangibility: Services cannot be seen, tasted, felt, heard of smelled before they are purchased. For
example undergoing cosmetic surgery, getting a haircut.
Inseparability: Services cannot be separated from their providers. Services are first sold and then
produced and consumed at the same time.
Variability: The quality of the service depends on who provides it and when, where and how. One
employee can provide a better service than the other.
Perishability: Services cannot be saved for later sale or use. The service of a hairdresser can’t be
saved for another day.
Reaction of marketeers on the characteristics:
Intangibility Try to find physical proof of what the customer can expect. The quality of the place,
people and price can help. Or communications of earlier purchases.
Inseparability Facilitate an active role for the consumer. For example ask the consumer what they
want. Let them give input in the service so the get a better result in the end.
Variability Call for procedures and guidelines. (a certain way the service had to be delivered) This
way the difference between services is limited.
Perishability Offer special prices/ deals so the services get used optimistically.
Durable products: Products that are used for a longer time and survive for many years. For example
a fridge of a couch.
Non-durable products: Products that are consumed quickly and are used one or a few times. For
example beer, soap.
Consumer products: Products that are bought by final customers for personal consumption.
Convenience/ fast moving goods: products that people buy frequently, fast and without
much thought. F.E. rice, milk.
Shopping products: less frequently purchased products that people compare carefully on
price, quality and style. F.E. furniture, phones, clothing.
Specialty products: Products you buy for a special occasion. One in al life time purchases. For
example honeymoon, surgery.
Unsought products: Products that people of don’t know exist. F.E. Funeral insurance, blood
donations.
