1. MARKETING PRINCIPLES & PRACTICE
1.1 WHAT IS MARKETING?
What is the primary goal of marketing?
1. Increase sales through aggressive promotion
2. Understand and meet customer needs to create value
3. Create advertisements for products
4. Ensure that products are cheaper than those of the competitions
Marketing defined
Marketing is a social and managerial process by which individuals and groups obtain what they need
and want through creating and exchanging products and value with others.
In business context: To build and maintain profitable relationships with stakeholders
B2B vs B2C
B2B = business to business
B2C = business to customer
What does marketing apply to?
• Physical products
• Services
• Retail (= stores that sell goods to customers)
• Experiences
• Events
• Film, music, theatre
• Places
• Ideas
• Charities & non-profits
• People
→ anywhere buyers have a choice
1.2 WHAT IS THE DIFFERENCE BETWEEN CUSTOMERS AND CONSUMERS?
Customers vs consumers
Customer: the person who buys a product
consumer: the person who use the product
Consumers’ buying roles
,e.g. Advertising men's shampoo targeted at women, so they’ll tell their partner to buy it, …
1.3 MARKET ORIENTATION
Market orientation
The organization-wide generation of market intelligence pertaining to current and future customer needs,
dissemination of the intelligence across the departments, and organization-wide responsiveness to it” (Kohli and
Jaworski, 1990: 6).
▪ Organization-wide belief in delivering customer value
▪ Create products to meet existing and latent needs
e.g., cars instead of faster horses
The 3 components of market orientation
− Customer orientation
Developing and redeveloping offerings to meet customer
needs. So, we should measure customer satisfaction on a
continuous basis and train our service staff
− Competitor orientation
understanding of its competitors short-term strengths and
weaknesses, and its long-term capabilities and strategies
− Interfunctional coordination
requiring all an organization’s functions to work together for
long-term profit growth
Customer centricity is also…
= you put the customer at the center of everything you do
Not trying to please all customers
Fulfilling needs in a profitable way
=> focus on your target group instead of pleasing all your customers because it’s impossible
,1.5 DIFFERENCES BETWEEN SALES AND MARKETING
Marketing Sales
long-term satisfaction short-term satisfaction
greater input into customer design of offering lesser input into customer design of offering
high focus on stimulation of demand low focus on stimulation of demand
More focused on meeting existing demand
Sales: Product push, short-term focus on satisfaction of customer needs
Marketing: Product pull, long-term focus on satisfaction of customer needs, high focus on stimulation of demand
Sales is more short-term, aiming to sell as much as possible as quickly as possible, while marketing ensures that
the product meets the needs of customers and has value for them, so that they will readily return to purchasing
the product repeatedly, building a strong brand and convincing them to buy it.
Acquisition vs retention
If you acquire customers, you need to be able to retain them in the long term.
Retention is cheaper than acquisition.
Tip of the iceberg
• What consumers see is only a fraction of companies’ overall business strategies
United colors of Benetton
ZARA
, 1.5 WHAT DO MARKETERS DO?
Marketing competencies
Placing the customer at the center of a company’s operations and decision-making processes
• Generate customer insights
• Develop marketing strategy
Marketing within organizations
▪ Marketing inherently puts customers first
▪ Marketing should enhance a firm’s relationships with its customers
▪ Marketing is present in all aspects of an organization since all departments play a role in creating, delivering,
and satisfying customers
▪ Marketers do not control all the marketing mix elements
▪ CEOs with a marketing background outperform CEOs from nearly all other backgrounds when it comes to
being socially responsible, inclusive, and having a strong strategy and long-term vision
▪ They have a better overall reputation than business leaders from nearly all other areas (Tesseras, 2021)
1.1 WHAT IS MARKETING?
What is the primary goal of marketing?
1. Increase sales through aggressive promotion
2. Understand and meet customer needs to create value
3. Create advertisements for products
4. Ensure that products are cheaper than those of the competitions
Marketing defined
Marketing is a social and managerial process by which individuals and groups obtain what they need
and want through creating and exchanging products and value with others.
In business context: To build and maintain profitable relationships with stakeholders
B2B vs B2C
B2B = business to business
B2C = business to customer
What does marketing apply to?
• Physical products
• Services
• Retail (= stores that sell goods to customers)
• Experiences
• Events
• Film, music, theatre
• Places
• Ideas
• Charities & non-profits
• People
→ anywhere buyers have a choice
1.2 WHAT IS THE DIFFERENCE BETWEEN CUSTOMERS AND CONSUMERS?
Customers vs consumers
Customer: the person who buys a product
consumer: the person who use the product
Consumers’ buying roles
,e.g. Advertising men's shampoo targeted at women, so they’ll tell their partner to buy it, …
1.3 MARKET ORIENTATION
Market orientation
The organization-wide generation of market intelligence pertaining to current and future customer needs,
dissemination of the intelligence across the departments, and organization-wide responsiveness to it” (Kohli and
Jaworski, 1990: 6).
▪ Organization-wide belief in delivering customer value
▪ Create products to meet existing and latent needs
e.g., cars instead of faster horses
The 3 components of market orientation
− Customer orientation
Developing and redeveloping offerings to meet customer
needs. So, we should measure customer satisfaction on a
continuous basis and train our service staff
− Competitor orientation
understanding of its competitors short-term strengths and
weaknesses, and its long-term capabilities and strategies
− Interfunctional coordination
requiring all an organization’s functions to work together for
long-term profit growth
Customer centricity is also…
= you put the customer at the center of everything you do
Not trying to please all customers
Fulfilling needs in a profitable way
=> focus on your target group instead of pleasing all your customers because it’s impossible
,1.5 DIFFERENCES BETWEEN SALES AND MARKETING
Marketing Sales
long-term satisfaction short-term satisfaction
greater input into customer design of offering lesser input into customer design of offering
high focus on stimulation of demand low focus on stimulation of demand
More focused on meeting existing demand
Sales: Product push, short-term focus on satisfaction of customer needs
Marketing: Product pull, long-term focus on satisfaction of customer needs, high focus on stimulation of demand
Sales is more short-term, aiming to sell as much as possible as quickly as possible, while marketing ensures that
the product meets the needs of customers and has value for them, so that they will readily return to purchasing
the product repeatedly, building a strong brand and convincing them to buy it.
Acquisition vs retention
If you acquire customers, you need to be able to retain them in the long term.
Retention is cheaper than acquisition.
Tip of the iceberg
• What consumers see is only a fraction of companies’ overall business strategies
United colors of Benetton
ZARA
, 1.5 WHAT DO MARKETERS DO?
Marketing competencies
Placing the customer at the center of a company’s operations and decision-making processes
• Generate customer insights
• Develop marketing strategy
Marketing within organizations
▪ Marketing inherently puts customers first
▪ Marketing should enhance a firm’s relationships with its customers
▪ Marketing is present in all aspects of an organization since all departments play a role in creating, delivering,
and satisfying customers
▪ Marketers do not control all the marketing mix elements
▪ CEOs with a marketing background outperform CEOs from nearly all other backgrounds when it comes to
being socially responsible, inclusive, and having a strong strategy and long-term vision
▪ They have a better overall reputation than business leaders from nearly all other areas (Tesseras, 2021)
