Marketing Lecture Notes
Week 1
Marketing process in 5 steps:
(Creating value)
1) Understanding the marketplace and customer needs and wants
2) Design a customer-driven marketing strategy
3) Construct a program/mix that delivers superior value
4) Build profitable relationships and create customer delight
(Capturing value)
5) Capture value from customers to create profits and customer equality
Misconception 1: Value is always created and captured by business
The role of the
company can
change, and
consumers can
initiate too.
Misconception 2: marketing always ends with the sale of products and services
We are increasingly moving to a
circular economy. E.g. recycling a
bottle of product by refilling it.
Stahel’s types of economies:
1) Linear economy
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,- Flows like a river
- Ownership + liability for risks and waste to pass to the buyer at point to
2) Circular economy
3) Performance economy
Performance economy: product-as-a-service “I don’t need a drill, I need a hole!”
Sustainable development goals agreed on by the UN
Good life goals
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,Chapter 1 - Introduction to marketing Management
Mission statement
To define its mission, a company should address
Peter Drucker’s classic questions:
- What is our business?
- Who is the customer?
- What is the value to the customers?
- What will our business be?
- What should our business be?
What is marketing?
- Marketing is about identifying and meeting human and social needs
- “meeting needs profitably.”
- American Marketing Association:
- 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. We see marketing management as the art and science of choosing target
markets and getting, keeping, and growing customers through creating, delivering, and
communicating superior customer value. Co-creation of value among consumers and with
businesses and the importance of value creation and sharing have become important themes
in the development of modern marketing thought
- selling is not the most important
- It is to know and understand the customer so well the product fits him and sells itself-Drucker
What is marketed?
- Goods
- Services
- Events
- Experiences
- Persons
- Places
- Organizations
- Information
- Ideas
Who markets?
- A marketer is someone who seeks a response—attention, a purchase, a vote, a donation—
from another party, called the prospect
- To a market = customer group
- Need market: e.g. the dieting market
- Product market: e.g. shoe market
- Demographic market: e.g. millennials
- Geographic market: e.g. Chinese market
- Voter market
- Labor market
- Donor market
- Four key customer markets: consumer, business, global and nonprofit
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, Core Marketing concepts
Needs, wants and demands
- Needs become wants when an object might satisfy their needs
- Our wants are shaped by our society
- Demands are wants backed by the ability to pay
- Companies must take how many people can actually buy rather than want
- We can distinguish five types of needs:
- Stated needs (The customer wants an inexpensive car.)
- Real needs (The customer wants a car whose operating cost, not initial price, is low.)
- Unstated needs (The customer expects good service from the dealer.)
- Delight needs (The customer would like the dealer to include an onboard GPS system.)
- Secret needs (The customer wants friends to see him or her as a savvy consumer.)
Target markets, positioning, and segmentation
- Marketers identify distinct segments of buyers by identifying demographic, psychographic, and
behavioral differences between them.
- They then decide which segment(s) present the greatest opportunities.
- For each of these target markets, the firm develops a market offering that it positions in target
buyers’ minds as delivering some key benefit(s).
Offerings and Brands
- Companies address customer needs by putting forth a value proposition, a set of benefits that
satisfy those needs.
- The intangible value proposition is made physical by an offering, which can be a combination of
products, services, information, and experiences.
- A brand is an offering from a known source
Marketing Channels
- To reach target market - 3 types of channels (choosing best mix is hard):
- Communication channels (deliver a message)
- news, magazines, radio, tv, internet…
- Distribution channels (help display, deliver and sell physical products to buyer or user)
- Internet, mail, phones, distributes, retailers, agents
- Service channels (to carry our transactions with potential buyers)
- Warehouses, transportation companies, banks, insurance companies…
Paid, Owned and Earned Media
- Group communication options for interacting w customers into 3 categories:
- Paid media: TV, magazine, display ads, sponsorships
- Owned media: communication channels marketers own
- Earned media: consumers, press.can communicate the brand “buzz”
Impressions and engagement
- Marketers now think of three “screens” or means to reach consumers: TV, Internet, and mobile.
- Impressions, which occur when consumers view a communication, are a useful metric for
tracking the scope or breadth of a communication’s reach that can also be compared across all
communication types
- However: don’t provide any insight into the results of viewing the communication.
- Engagement is the extent of a customer’s attention and active involvement with a
communication, which is more likely to create value for the firm.
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