PART 1: principles of marketing
Marketing principles and practice
Marketing = a social and managerial process by which individuals and groups obtain what they need
and want through crating and exchanging products and value with others
In business context: to build and maintain profitable customer relationships
Exchange = the act of obtaining a desired object from someone by offering something in return
• At least two parties
• Each must hold something of value to offer
• Parties must want to deal with each other
➔ Exchange creates value, gives people more consumption choices or possibilities
Customer value = the consumer’s assessment of the product’s overall capacity to satisfy his or her
needs
Costumer <-> consumer
• Costumer: the buyer, the purchaser …
• The consumer: the person who uses, eats, … the product
A company with marketing orientation = a company that recognises the importance of marketing
within the organization
Developing a 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
It doesn’t only involve the marketing function but also everyone gathering and responding to market
intelligence
➔ Customer orientation: creating superior value by continuously developing and redeveloping
offerings to meet customer needs
o Measure customer satisfaction
o Train front-line service staff
➔ Competitor orientation: organization to
develop an understanding of its
competitors’ short-term strengths and
weaknesses, and its own long-term
capabilities and strategies
➔ Interfunctional coordination: requires all
functions of an organization to work
togheter for long-term profit growth
MARKETING’S INTELLECTUAL ROOTS
Industrial economics influences
1
, • Supply and demand (price, quantity)
• Theories of income distribution, scale of operation, monopoly, competition … -> all come
from economics
Psychological influences
• Consumer behaviour, motivation research, information progressing … come from motivation
research
• Understanding of persuasion, consumer personality, customer satisfaction … -> fundamental
for the marketing function (marketing is about understanding customers’ needs)
Sociological influences
• How groups of people behave:
o Demographics -> how people form similar gender and age groups behave
o Class -> how people in different social positions within society behave
o Motivation -> why we do the things in the way that we do
o Customs -> general ways in which groups behave
o culture
• How communication passes through opinion leaders, …
• How we influence the way people think: propaganda research
Anthropological influences
• Qualitative approaches in researching consumer behaviour
Computer science influences (Netflix, chatbots, …)
DIFFERENCE BETWEEN SALES AND MARKETING
MARKETING APLLICATION AND RELEVANCE MARKETING PROCESS
Production period – Sales period – Marketing period – Societal marketing period
characterized by a focus characterized by a focus characterized by a more – characterized by a
on physical production and on personal selling advanced focus on the stronger focus on social
supply, where demand supported by market customer’s needs. This and ethical concerns in
exceeded supply. This research and advertising. phase took place after the marketing. This phase is
phase took place after the This phase took place after Second World War. taking place during the
industrial revolution. the First World War. ‘information revolution’ of
the late twentieth century.
1890s-1920s 1920s-1950s 1950s-1980s 1980s to present
Marketing sales
long-term satisfaction -> design and short-term satisfaction of customer needs
development of customer value processes -> value delivery process
greater customer input into design of lesser customer input into design of
offering offering 2
high focus on stimulation of demand focuses on meeting exsting demand
, 1. Physical products
2. Services
3. Retail
4. Experiences
5. Events
6. Film, music and theatre
7. Places
8. Ideas
9. Charities and non-profits
10. People
➔ Anywhere ‘buyers’ have a
choice
MARKETING AS EXCHANGE
Marketer E change arket
Industrial Economic goods services
Customers
organisa on Monetary payment
Organisa on
O alue
Customers
Universi es alue
everything that o ers a value
alue Stakeholders, Gouvernements,
Organisa on
Neighbours, arents, Companies
alue
What can customers and other stakeholders bring of value, other than purchases?
• Feedback
• Loyalty
• Share their experiences
• Mouth to mouth advertising
3
, aines et al.: Marke ng, th Edi on
4
Marketing principles and practice
Marketing = a social and managerial process by which individuals and groups obtain what they need
and want through crating and exchanging products and value with others
In business context: to build and maintain profitable customer relationships
Exchange = the act of obtaining a desired object from someone by offering something in return
• At least two parties
• Each must hold something of value to offer
• Parties must want to deal with each other
➔ Exchange creates value, gives people more consumption choices or possibilities
Customer value = the consumer’s assessment of the product’s overall capacity to satisfy his or her
needs
Costumer <-> consumer
• Costumer: the buyer, the purchaser …
• The consumer: the person who uses, eats, … the product
A company with marketing orientation = a company that recognises the importance of marketing
within the organization
Developing a 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
It doesn’t only involve the marketing function but also everyone gathering and responding to market
intelligence
➔ Customer orientation: creating superior value by continuously developing and redeveloping
offerings to meet customer needs
o Measure customer satisfaction
o Train front-line service staff
➔ Competitor orientation: organization to
develop an understanding of its
competitors’ short-term strengths and
weaknesses, and its own long-term
capabilities and strategies
➔ Interfunctional coordination: requires all
functions of an organization to work
togheter for long-term profit growth
MARKETING’S INTELLECTUAL ROOTS
Industrial economics influences
1
, • Supply and demand (price, quantity)
• Theories of income distribution, scale of operation, monopoly, competition … -> all come
from economics
Psychological influences
• Consumer behaviour, motivation research, information progressing … come from motivation
research
• Understanding of persuasion, consumer personality, customer satisfaction … -> fundamental
for the marketing function (marketing is about understanding customers’ needs)
Sociological influences
• How groups of people behave:
o Demographics -> how people form similar gender and age groups behave
o Class -> how people in different social positions within society behave
o Motivation -> why we do the things in the way that we do
o Customs -> general ways in which groups behave
o culture
• How communication passes through opinion leaders, …
• How we influence the way people think: propaganda research
Anthropological influences
• Qualitative approaches in researching consumer behaviour
Computer science influences (Netflix, chatbots, …)
DIFFERENCE BETWEEN SALES AND MARKETING
MARKETING APLLICATION AND RELEVANCE MARKETING PROCESS
Production period – Sales period – Marketing period – Societal marketing period
characterized by a focus characterized by a focus characterized by a more – characterized by a
on physical production and on personal selling advanced focus on the stronger focus on social
supply, where demand supported by market customer’s needs. This and ethical concerns in
exceeded supply. This research and advertising. phase took place after the marketing. This phase is
phase took place after the This phase took place after Second World War. taking place during the
industrial revolution. the First World War. ‘information revolution’ of
the late twentieth century.
1890s-1920s 1920s-1950s 1950s-1980s 1980s to present
Marketing sales
long-term satisfaction -> design and short-term satisfaction of customer needs
development of customer value processes -> value delivery process
greater customer input into design of lesser customer input into design of
offering offering 2
high focus on stimulation of demand focuses on meeting exsting demand
, 1. Physical products
2. Services
3. Retail
4. Experiences
5. Events
6. Film, music and theatre
7. Places
8. Ideas
9. Charities and non-profits
10. People
➔ Anywhere ‘buyers’ have a
choice
MARKETING AS EXCHANGE
Marketer E change arket
Industrial Economic goods services
Customers
organisa on Monetary payment
Organisa on
O alue
Customers
Universi es alue
everything that o ers a value
alue Stakeholders, Gouvernements,
Organisa on
Neighbours, arents, Companies
alue
What can customers and other stakeholders bring of value, other than purchases?
• Feedback
• Loyalty
• Share their experiences
• Mouth to mouth advertising
3
, aines et al.: Marke ng, th Edi on
4
