Summary Principles of Marketing, written in English. Contains chapters 1, 2 (not complete) 3, 7, 8, 9, 14.17 (not complete), 18 and 19 (not complete)
The reason why these chapters are not complete is because I don't have to learn them before my exams. Of course, this may be different for your e...
Principles of Marketing
Chapter 1. Marketing
Creating Customer value and engagement
Marketing – the process by which companies engage customers, build strong
customer relationships and create customer value in order to capture value from
customers in return.
The marketing process consists out of 5 steps:
Designing a
Engage customers
strategy
Customer Value driven Integrated Profitable
needs and Customer Delivers value relationships
wants driven Customer
delight
Understanding the Marketing
market place programme
This all will form the final step: Capture value from customers to create profit and
customer equity.
Customer needs – states of felt deprivation
Customer wants – the form human needs take as they are shaped by culture and
individual personality
Demands – human wants that are backed by buying power
These needs and wants are fulfilled by market offerings, these are some
combination of products, services, information or experiences offered to a market
to satisfy that need or want
But companies have to avoid marketing myopia, the mistake of paying more
attention to the specific products a company offers than to the benefits and
experiences produced by these products
,Designing a marketing strategy and plan can also be defined as marketing
management. In this step they choose a target group and try to build profitable
relationships with them.
To design this strategy, you have to answer 2 important questions:
1. Who is your target group?
2. How can we serve this target group?
The primary group of people that something, is designed to appeal to.
How to define your target group
- Look at your current customer base
- Check out the competition
- Analyze your product and service
- Choose specific demographics to target
To serve your target group you have to:
- Choose a value proposition (your promise)
- Choose a marketing orientation
o Production concept (available and highly affordable products)
o Product concept (products with high quality)
o Selling concept (large-scale selling and promotion effort)
o Marketing concept (knowing the needs and wants of target markets)
o Societal marketing concept (consider interests consumers and society,
company requirements and consumer wants)
Engaging and managing in customer relationships can be defined as the overall
process of building and maintaining profitable customer relationships by delivering
value and satisfactions.
This is quite the difficult task to do so, customers have a wide and various range of
products and or services to choose from. They will choose the company with the
highest customer-perceived value. This is the evaluation of the difference between
all the benefits between your marketing offer relative to competitors.
If you manage to have outstanding marketing and good products or services, the
customer satisfaction will be high. This is your aim.
There are different levels off maintaining customer relationships, e.g. companies
that reach out to their customers by social media while other companies are
getting more personal with their customers. It depends on your target market.
Speaking of social media, the digital age has given companies more opportunities
to get in touch with customers all around the world. This helps them get into a
deeper connection with their customers. This new way of marketing is called:
“customer-engagement marketing” The aim of this way of marketing is to make the
brand more meaningful to the consumers.
, A step further is that marketers want to create customer brand advocacy, this is a
specialized form of customer service. This can be as simple as Starbucks giving
their customers the feeling that they are part of a community.
It is also important to capture value from customers. This can be done by:
- Creating customer loyalty and retention
- Growing share of the customer
- Building customer equity
As stated before, we are living in the digital age and that brings a lot of new
opportunities for companies e.g.
- Social media marketing (website, Facebook, Instagram, You-tube etc.)
- Mobile marketing (fastest growing platform, e.g. Starbucks with their mobile
app)
- Big data
- Artificial intelligence (Siri, Alexa, Amazon Echo)
Because of the changing marketing landscape, companies also have to deal with
global competition. European and Asian multinationals like Nestle and Toyota have
done well with their marketing that they also sell in the US. But so, has McDonalds
from the US in European and Asian countries.
Chapter 2: Company and Marketing strategy
Strategic planning – the process of developing and maintaining a strategic fit
between the organization’s goals and capabilities and its changing marketing
opportunities.
To define a market-oriented mission, the company has to answer to the following
questions:
1. What is our business
2. Who is the customer
3. What do our customers value?
4. What should our business be?
These questions can form the vision and mission statement of a company.
A mission statement – a statement of the organization’s purpose and what they
want to accomplish in the larger environment.
A company vision – is what they want to accomplish in the future
The company needs to turn its broad mission statement into several objectives for
each level of managements.
After all these things have been settled, the company must now think about their
business portfolio, this is the collection of businesses and products that make up
the company.
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