Week 1 Summary Chapter 1, 2, 3
Chapter 1: Scope of marketing for New Realities
Financial success often depends on the marketing ability. At risk are those that fail to carefully monitor
their customers and competitors, continuously improve their value offerings and marketing strategies, or
satisfy their employees, stockholders, suppliers etc.
Marketing = about identifying and meeting human and social needs. ‘’Meeting needs profitably’’
Marketing management = the art and science of choosing target markets and getting, keeping, and
growing customers through creating, delivering,= =, and communicating superior customer value.
- Aim of marketing is to know and understand your customer
What is marketed:
Marketers market 10 main types of entities:
1. Goods
2. Services
3. Events
4. Experiences
5. Persons
6. Places
7. Properties
8. Organizations
9. Information
10. Ideas
A Marketer = someone who seeks a response - attention, a purchase, a vote, a donation - from
another party, called the prospect.
A market (also customer groups called by marketers) = a collection of buyers and sellers who transact
over a particular product or product class.
Needs are the basic human requirements such as air, food, water clothing etc. Wants are strong needs
for recreation, education, and entertainment.
1. stated needs = customer wants an inexpensive car
2. Real needs = customer wants car whose operating price, not initial price, is low
3. Unstated needs = customer expects good service from the dealer
4. Delight needs = customer would like extra GPS system in the car
5. Secret needs = customer wants friends to see him in the car
Marketers identify distinct segments of buyers by identifying demographic, psychographic and
behavioral differences between customers => then they decide which segment (target markets) => for
these target markets the firm develops a market offering that it positions in the targeted buyer’s minds.
Companies address customer needs by putting forth a value proposition = a set of benefits that
satisfy those needs.
,Marketing channels: to reach a target market, the marketer uses three kinds of marketing channels:
1. Communication channels, deliver and receive message
2. Distribution channels, help display, sell, or deliver physical products or services.
3. Service channels, these are used to carry out transactions with potential buyers (for example
warehouses, transportation companies, banks, insurance companies.
We can group communication options for interacting with customers into 3 categories:
1. Paid media = tv, magazines, sponsorships
2. Owned media = communication channels marketers actually own, like a company or a website
3. Earned media = are streams in which customers, the press etc communicate about the brand
Impressions are a useful metric for tracking the scope or breadth of a communication’s reach
Engagement = the extent of a customer’s attention and active involvement with a communication.
Value is primarily a combination of quality, service and price, called the customer value triad.
The marketing environment consists of:
1. Task environment = includes the actors engaged in producing, distributing, and promoting the
offering.
2. The broad environment = consist of six components: demographic environment, economic
environment, social-cultural environment, natural environment, technological environment and
political-legal environment.
There are 3 transformative forces in the marketplace:
1. Technology
2. Globalization
3. Social Responsibility, poverty, pollution, water shortage, climate change
Company Orientation Toward the Marketplace:
The evolution of the marketing philosophies:
- The production concept: it holds that customers prefer products that are widely available and
inexpensive. production and distribution efficiency
- The product concept: it proposes that customers favor products offering the most quality,
performance, or innovative features. Continuous product improvement
- The selling concept: it holds that consumers and businesses, if left alone, won’t buy enough of
the organization's product. => aggressively selling your product
- The marketing concept: the job is to find the right customers for your product. Based on
customer focus, and understanding needs and wants.
- The holistic marketing concept: is based on the development, design, and implementation of
marketing programs, processes and activities that recognize their breath and
interdependencies. Everything matters in marketing.
,Relationship marketing aims to build mutually satisfying long term relationships with key constituents
in order to earn and retain their business. Four key constituents for relationship marketing are,
customers, employees, marketing partners (channels, suppliers, distributors, dealers, agencies) and
members of the financial community (shareholders, investors, analysts).
Integrated marketing occurs when the marketer devises activities and programs to create,
communicate, and deliver value for customers such that ‘’the whole is greater than the sum of its
parts’’.
Key themes: (1) many different marketing activity can create, communicate and deliver value
(2) marketers should design and implement each marketing activity with all other activities in mind.
Internal marketing, an element of holistic marketing, is the task of hiring, training, and motivating able
employees who want to serve the customer well. There are marketing activities within the firm
Performance marketing requires understanding the financial and nonfinancial returns to business and
society from marketing activities and programs. Top marketers are increasingly going beyond sales
revenue to interpret what is happening to their shares, customer loss rate etc.
The 4 P’s:
People: reflects, in part, internal marketing and the fact that employees are critical to marketing
success
Processes: are all creativity, discipline, and structure brought to marketing management.
Programs: are all the firm’s consumer directed activities. These activities must be integrated such that
their whole is greater than the sum of all.
Performance: reflects, as in holistic marketing, the range of possible outcome measures that have
financial and nonfinancial implications (profitability as well as brand and customer equity).
Marketing Management Tasks
This picture summarizes the 3 major market forces, 2 key market outcomes, and 4 fundamental pillars
of holistic marketing that helps to capture the new marketing realities:
, With these concepts in place, we can identify a
specific set of tasks that make up successful marketing management and marketing leadership.
- Developing and implementing marketing strategies and plans
- Capturing marketing insights
- Connecting with customers
- Building strong brands
- Creating value
- Delivering value
- Communicating value
- Managing the marketing organization for long term success.
Chapter 2: Marketing strategies and Plans
Marketing and Customer Value:
Value chain = a tool for identifying ways to create more customer value.
- Five primary activities: inbound logistics, converting materials in final product, outbound
logistics (shipping out final product), marketing including sale, service
- Four support activities: procurement, technology development, human resource management,
firm infrastructure
It is the firm's task to examine its costs and performance in each value-creating activity, benchmarking
against competitors.
Many companies have partnered with specific suppliers and distributors to create a superior value
delivery network, also known as a supply chain.
The marketing plan is the central instrument for directing and coordinating the marketing effort,
operating at both strategic and tactical level. The strategic marketing plan lays out the target markets
and the firm’s value proposition. The tactical marketing plan specifies the marketing tactics, including
product features, promotions, merchandising, pricing, sales channels, and service.
