STUDYGUIDE MARKETING
ERASMUS UNIVERSITY COLLEGE
2020
,PBL 1
Chapter 1
Value of marketing
By contributing to the bottom line, successful marketing also allows firms to more fully engage
in socially responsible activities
Marketing decision making
Marketing builds strong brands and loyal customer base, intangible assets that contribute to
the value of a firm. There is little margin for error in marketing.
The scope of marketing
Marketing is about identifying and meeting human and social needs.
Marketing 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.
Marketing The art and science of choosing target markets and getting, keeping and growing
managem customers through creating, delivering, and communicating superior customer value. We
ent sell cars
Social Marketing is a societal process by which individuals and groups obtain what they need
marketing and want through creating, offering and freely exchanging products and services of value
with others. Higher standing of living
What is marketed
(1) goods, (2) services, (3) events, (4) experiences, (5) persons, (6) places, (7) properties are
intangible rights of ownership to either real property (real estate) or financial property (stocks
and bonds). They are bought and sold, and these exchanges require marketing. (8)
organizations, (9) information, (10) ideas
Who markets
Marketers and prospects
Marketer someone who seeks a response (attention, purchase, vote) from another party, called the
prospect
Prospect a purchase, a vote, or a donation by a prospective client.
If two parties are seeking to sell something to each other, we call them both marketers.
There are eight demand states possible
1. Negative demand—Consumers dislike the product and may even pay to avoid it.
2. Nonexistent demand—Consumers may be unaware of or uninterested in the product.
3. Latent demand—Consumers may share a strong need that cannot be satisfied by an
existing product.
4. Declining demand—Consumers begin to buy the product less frequently or not at all.
5. Irregular demand—Consumer purchases vary on a seasonal, monthly, weekly, daily, or
even hourly basis.
6. Full demand—Consumers are adequately buying all products put into the marketplace.
7. Overfull demand—More consumers would like to buy the product than can be satisfied.
8. Unwholesome demand—Consumers may be attracted to products that have undesirable
social consequences.
In each case, marketers must identify the underlying cause(s) of the demand state and
determine a plan of action to shift demand to a more desired state.
Markets
Market A collection of buyers and sellers who transact over a particular product or product class
Structure of flows in a modern exchange
company
A simple marketing system
Key customer markets:
,Consumer Markets Companies selling mass consumer goods and establish a strong brand
image by developing a superior product or service, ensuring its availability, and backing it with
engaging communications and reliable performance.
Business Markets Companies selling business goods and services often face well-informed
professional buyers skilled at evaluating competitive offerings. Advertising and Web sites can
play a role, but the sales force, the price, and the seller’s reputation may play a greater one.
Global Markets Companies in the global marketplace navigate cultural, language, legal, and
political differences while deciding which countries to enter, how to enter each (as exporter,
licenser, joint venture partner, contract manufacturer, or solo manufacturer), how to adapt
product and service features to each country, how to set prices, and how to communicate in
different cultures.
Nonprofit and Governmental Markets Companies selling to nonprofit organizations with
limited purchasing
power such as churches, universities, charitable organizations, and government agencies need
to price carefully. Much government purchasing requires bids; buyers often focus on practical
solutions and favor the lowest bid,
Needs, wants and demands
Needs Basic human requirements (air)
Wants Human requirements directed to specific objects that might satisfy the need. Shaped by
our society
Demand Wants for specific products backed by an ability to pay
s
We can distinguish 5 types of needs:
1. Stated needs The customer wants an inexpensive car
2. Real needs The customer wants a car whose operating cost, not initial price, is low
3. Unstated needs The customer expects good service from the dealer
4. Delight needs The customer would like the dealer to include an onboard GPS system
5. Secret needs The customer wants friends to see him or her as a savvy consumer
Target markets, positioning and segmentation
For each target market, the firm develops a market offering that it positions in target buyer’s
minds as delivering some key benefit(s).
Segmentatio Classify consumers into groups with distinct needs or characteristics (1)
n Geographic, (2) Demographic, (3) Psychographic, (4) benefits sought, (5) behavioral
Targeting Determine which segment(s) to serve
Positioning Select key selling propositions for chosen segment How to be different from
competitors
Offering and brands
Value proposition The whole cluster of benefits the company promises to deliver customers.
Brand An offering from a know source
With an offering the intangible value proposition is made tangible.
Marketing channels types
Communication Deliver and receive messages from target buyers and include newspapers etc.
channels
Distribution Help display, sell or deliver the physical product or service(s) to the buyer or
channels user
Service channels Carry out transactions through warehouses, transportation companies, banks,
and insurance companies.
Communication options categories
Paid media TV, magazine and display ads, paid search – all allowing a company to show ad or
brand for a fee.
Owned communication channels marketers actually own e.g. brand brochure, facebook
media account
Earned are streams in which consumers, the press, or other outsiders voluntarily
media communicate something about the brand via word of mouth, buzz, or viral marketing
methods.
Impressions & engagement
Impressio Occur when consumers view a communication, are a useful metric for tracking the scope
, ns or breadth of a communication’s reach that can also be compared across all
communication types. Downside don’t provide any insight into the results of viewing
the communication
Engagem extent of a customer’s attention and active involvement with a communication. It
ent reflects a much more active response than a mere impression and is more likely to
create value for the firm.
Value & Satisfaction
Value Sum of tangible and intangible benefits and costs
Customer value Value of combination qsp (quality, service and price), increase with qs and
triad decrease with p
Satisfaction reflects a person’s judgment of a product’s perceived performance in
relationship to expectations
The buyer chooses the offerings he or she perceives to deliver the most value.
Supply chain
Supply Channel stretching from raw materials to components to finished products carried to
chain final buyers.
Competition
Competiti Includes all the actual and potential rival offerings and substitutes a buyer might
on consider
Marketing environment: task environment + broad environment
Task includes the actors engaged in producing, distributing, and promoting the offering company,
environm suppliers (includes insurance company), distributors, dealers and target customers.
ent
Broad Demographic environment, economic, social-cultural, natural, technological and political-legal
environm environment. Marketers must pay close attention to the trends and developments in these and
ent adjust their marketing strategies as needed.
Three transformative forces:
1. Technology
The old credo “information is power” is giving way to the new idea that “sharing information is
power.
2. Globalization
Through globalization the world (1) became a smaller place, (2) has made countries
increasingly multicultural and (3) has changed innovation and product development as
companies take ideas and lessons from one country and apply them to another.
3. Social responsibility
Marketing 3.0 model has moved beyond the product/consumer centric model of the past.
Three central trends are (1) increased consumer participation and collaborative marketing, (2)
globalization, and (3) rise of a creative society.
The organization’s task is thus to determine the needs, wants, and interests of target markets
and satisfy them more effectively and efficiently than competitors while preserving or
enhancing consumers’ and society’s long-
term well-being.
A dramatically changed marketplace
These three forces—technology, globalization, and social responsibility—have dramatically
changed the marketplace, bringing consumers and companies new capabilities. The
marketplace is also being transformed by changes in channel structure and heightened
competition.
New consumer capabilities
- Can use the internet as a powerful information and purchasing aid
- Can search, communicate and purchase on the move
- Can tap into social media to share opinions and express loyalty
- Can actively interact with companies
- Can reject marketing they find inappropriate we feel that products are similar less
brand loyalty or even more price and quality sensitive. Therefore we can block out
undesired marketing (on phone, zapping etc)
New company capabilities
