chapter1: Marketing principles and practice
introduction:
every product/ service is promoted to you for a particular need
marketers should ask itself questions (what social contributions do this offering make, are
there any substitutes better?,...) to design, develop and deliver customers offerings
1. What is marketing?
delivering value to customers
understand and meet customer needs to create value
AND: persuade(overtuigen) you to buy it + do it better then you competitors
→ customer have value for you
important: changing perceptions that customers have of your product
there are 3 definitions:
- CIM, AMA → marketing is a management process
→ the most companies have a different department for marketing, but it has
to be a service across the departments
- a French perspective
marketing is een sociaal en managementproces waarin individuen of groepen krijgen wat ze
willen en nodig hebben door producten en waarde te creëren en uit te wisselen
company → have offerings for the customers
offering = benefits a company design to meet customers’ needs
important: satisfying needs of customer in the long way and build a relationship with them
professionals persuade you to buy offerings, rather from competitors
there are numerous of definitions of marketing
→ management process, activity, department, across departments, …
but: important → focus on customers’ requirements and deliver value
companies have offers for customers = all benefits the company designs to meet the needs
in terms of a good or service or combination
satisfying customers in the long term is very important
you need to do market research to do so and environmental scanning
be superior to your competitors
importance of market segmentation and positioning
1.1 What does marketing apply to?
- physical products
- services (diensten leveren aan klanten die ontastbare producten hebben)
- retail → selling immediately products/ services to customers → physical store
, - experiences
- events
- film, music, theater
- places
- ideas → concepts that can do good for society
- charity and non - profit (warmste week)
- people
marketing applies every situations where buyers have the choice
1.2 what is the difference between customers and consumers?
customer (klant) = buyer, purchases it (from shop/ online/ from other buyers)
consumer (consument) = person who uses/ consume the product
→ sometimes it is the same person, sometimes not
buying roles: important as a marketer to know who buys your product, customer or
businesses
● initiator → the consumer who first recognized the need. the one with the buying idea
M: emphasizing how a product addresses their needs
● influencer → everyone who has an influence on the decision (not only influencers/
people who give advice in the store/ people with experience)
M: working together with the influencers. weet als marketeer wie belangrijk is in de
beslissing om hem te overtuigen
● deciders → make buying decision. persoon met controle over uitgaven
M: make the decision-making process easy
● buyer → physical act of buying the product
M: make the purchasing process easy
● payer → funds the products → decides how to pay
M: offer various payment methods
● user → consumer = person who uses the product
M: give user support, gather feedback
● gatekeeper → first look at all information, so that the next person (decider) doesn’t
have to look at all of it. A filter for information. decides what information comes with
who. bv. receptionist die binnenkomende communicatie screent
M: communicate with gatekeeper
→ Als marketeer rekening houden met elke koper rol, voor iedereen aparte berichten nodig
(weten wie beslissing maakt, wie de informatie krijgt,...)
,1.3 market orientation
market orientation makes organization more profitable (long and short run)
starts from the customers needs (current and future),
is not the same as marketing orientation (focus on importance of marketing)
al de markt informatie met betrekking tot de huidige en toekomstige behoeften van de klant,
verspreiden over heel de organisatie die er allemaal zo snel mogelijk op moeten reageren
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
→ customer central of organization
every department in the organization need to have this in mind
and needs to respond on that needs asap
→ we don’t always know what they need
but: you need to find it as a marketers
then you can survival and make a competitive advantage
the three components of market orientation
● customer: needs of customers are centralized in the company → constantly
developing offerings to meet customers' needs. you have to listen to you customers
and adjust the product for them (measuring the satisfaction)
● competitor: create value to customers and do it better than the competitions → know
what are the strengths and weaknesses of competitors
● interfunctional: functions/ departments in company need to work together, good
communication → for long-term profit growth
→ it takes a long time to develop a market orientation which can influence the changes on
the market + needs senior management support + a good team
customer centricity (klantgerichtheid) is also:
- not focus on all customers → target the needs of a certain segment
- fulfilling needs, and still make profit
1.4 marketing’s intellectual roots (wortels van marketing)
marketing develops over time in organization + in history
there are different opinions about where and when marketing is developed
(20th century, end of the 19th century, …)
marketing has developed as a result of practitioner (beoefenaar) influence but also other
disciplines: as a marketer you need to take care of all this things
, - industrial economic: economische concepten (perfecte concurrentie, afstemmen van
vraag en aanbod) liggen ten grondslag van het marketingconcept → bepalen van prijs
en hoeveelheid, monopolie, inkomensverdelingen, concurrentie, …
- psychological : understanding buyer psychology is important → motivations,
consumer behavior, persuasions,...
- sociological: how groups of people behave: demographic, class, culture,...
+ how we influence how people thinks
- anthropological: qualitative approaches (kwalitatieve benaderingen) in research in
consumer behavior
- computer science: digitization → influence marketing (better websites, apps,...)
1.5 differences between sales and marketing
sales: product push → push product on to customers (not because they want it)
short-term focus on satisfaction of customers need + focus on existing demand
exchanging between customer and salespeople
houden zich bezig met de verwerving van de aanbieding nadat ze al zijn ontworpen
(aanmoedigen van klanten om aanbod te kopen)
marketing: product pull → customers want the product (they want them)
long term focus + high focus on stimulation of demand
marketing → offer is designed + redesigned for customers insight and co creation to meet
the long-term needs (communication)
houden zich bezig met het ontwerp, ontwikkelen, leveren van het aanbod door de klant te
begrijpen
→ 2 functions must be integrated (both are important in achieving market orientation and
improvement in business performance
sales moet ook input hebben in de ontwerp/ ontwikkelingsfase → zijn kennis is ook belangrijk
voor het marketingproces
acquisition vs retention
- sales is about acquisition → attracting customers to your product. strategies to get the
attention of new customers. op korte termijn de behoefte van de klanten bevredigen
- marketing is retention → retain (behouden) the customers. building strong
relationships with the cus so they stay loyal and buy things again and create value
introduction:
every product/ service is promoted to you for a particular need
marketers should ask itself questions (what social contributions do this offering make, are
there any substitutes better?,...) to design, develop and deliver customers offerings
1. What is marketing?
delivering value to customers
understand and meet customer needs to create value
AND: persuade(overtuigen) you to buy it + do it better then you competitors
→ customer have value for you
important: changing perceptions that customers have of your product
there are 3 definitions:
- CIM, AMA → marketing is a management process
→ the most companies have a different department for marketing, but it has
to be a service across the departments
- a French perspective
marketing is een sociaal en managementproces waarin individuen of groepen krijgen wat ze
willen en nodig hebben door producten en waarde te creëren en uit te wisselen
company → have offerings for the customers
offering = benefits a company design to meet customers’ needs
important: satisfying needs of customer in the long way and build a relationship with them
professionals persuade you to buy offerings, rather from competitors
there are numerous of definitions of marketing
→ management process, activity, department, across departments, …
but: important → focus on customers’ requirements and deliver value
companies have offers for customers = all benefits the company designs to meet the needs
in terms of a good or service or combination
satisfying customers in the long term is very important
you need to do market research to do so and environmental scanning
be superior to your competitors
importance of market segmentation and positioning
1.1 What does marketing apply to?
- physical products
- services (diensten leveren aan klanten die ontastbare producten hebben)
- retail → selling immediately products/ services to customers → physical store
, - experiences
- events
- film, music, theater
- places
- ideas → concepts that can do good for society
- charity and non - profit (warmste week)
- people
marketing applies every situations where buyers have the choice
1.2 what is the difference between customers and consumers?
customer (klant) = buyer, purchases it (from shop/ online/ from other buyers)
consumer (consument) = person who uses/ consume the product
→ sometimes it is the same person, sometimes not
buying roles: important as a marketer to know who buys your product, customer or
businesses
● initiator → the consumer who first recognized the need. the one with the buying idea
M: emphasizing how a product addresses their needs
● influencer → everyone who has an influence on the decision (not only influencers/
people who give advice in the store/ people with experience)
M: working together with the influencers. weet als marketeer wie belangrijk is in de
beslissing om hem te overtuigen
● deciders → make buying decision. persoon met controle over uitgaven
M: make the decision-making process easy
● buyer → physical act of buying the product
M: make the purchasing process easy
● payer → funds the products → decides how to pay
M: offer various payment methods
● user → consumer = person who uses the product
M: give user support, gather feedback
● gatekeeper → first look at all information, so that the next person (decider) doesn’t
have to look at all of it. A filter for information. decides what information comes with
who. bv. receptionist die binnenkomende communicatie screent
M: communicate with gatekeeper
→ Als marketeer rekening houden met elke koper rol, voor iedereen aparte berichten nodig
(weten wie beslissing maakt, wie de informatie krijgt,...)
,1.3 market orientation
market orientation makes organization more profitable (long and short run)
starts from the customers needs (current and future),
is not the same as marketing orientation (focus on importance of marketing)
al de markt informatie met betrekking tot de huidige en toekomstige behoeften van de klant,
verspreiden over heel de organisatie die er allemaal zo snel mogelijk op moeten reageren
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
→ customer central of organization
every department in the organization need to have this in mind
and needs to respond on that needs asap
→ we don’t always know what they need
but: you need to find it as a marketers
then you can survival and make a competitive advantage
the three components of market orientation
● customer: needs of customers are centralized in the company → constantly
developing offerings to meet customers' needs. you have to listen to you customers
and adjust the product for them (measuring the satisfaction)
● competitor: create value to customers and do it better than the competitions → know
what are the strengths and weaknesses of competitors
● interfunctional: functions/ departments in company need to work together, good
communication → for long-term profit growth
→ it takes a long time to develop a market orientation which can influence the changes on
the market + needs senior management support + a good team
customer centricity (klantgerichtheid) is also:
- not focus on all customers → target the needs of a certain segment
- fulfilling needs, and still make profit
1.4 marketing’s intellectual roots (wortels van marketing)
marketing develops over time in organization + in history
there are different opinions about where and when marketing is developed
(20th century, end of the 19th century, …)
marketing has developed as a result of practitioner (beoefenaar) influence but also other
disciplines: as a marketer you need to take care of all this things
, - industrial economic: economische concepten (perfecte concurrentie, afstemmen van
vraag en aanbod) liggen ten grondslag van het marketingconcept → bepalen van prijs
en hoeveelheid, monopolie, inkomensverdelingen, concurrentie, …
- psychological : understanding buyer psychology is important → motivations,
consumer behavior, persuasions,...
- sociological: how groups of people behave: demographic, class, culture,...
+ how we influence how people thinks
- anthropological: qualitative approaches (kwalitatieve benaderingen) in research in
consumer behavior
- computer science: digitization → influence marketing (better websites, apps,...)
1.5 differences between sales and marketing
sales: product push → push product on to customers (not because they want it)
short-term focus on satisfaction of customers need + focus on existing demand
exchanging between customer and salespeople
houden zich bezig met de verwerving van de aanbieding nadat ze al zijn ontworpen
(aanmoedigen van klanten om aanbod te kopen)
marketing: product pull → customers want the product (they want them)
long term focus + high focus on stimulation of demand
marketing → offer is designed + redesigned for customers insight and co creation to meet
the long-term needs (communication)
houden zich bezig met het ontwerp, ontwikkelen, leveren van het aanbod door de klant te
begrijpen
→ 2 functions must be integrated (both are important in achieving market orientation and
improvement in business performance
sales moet ook input hebben in de ontwerp/ ontwikkelingsfase → zijn kennis is ook belangrijk
voor het marketingproces
acquisition vs retention
- sales is about acquisition → attracting customers to your product. strategies to get the
attention of new customers. op korte termijn de behoefte van de klanten bevredigen
- marketing is retention → retain (behouden) the customers. building strong
relationships with the cus so they stay loyal and buy things again and create value
