Summary of book Foundations of Marketing 5th edition and lecture slides

Summary
- Foundations of Marketing 5th edition
- Lecture sheets*
* The titles of content of lecture sheets have this layout


Inhoud
Chapter 1 Nature of Marketing ............................................................................................................... 2
Chapter 2 The global marketing environment ........................................................................................ 6
Chapter 3 Understanding Customer Behavior ...................................................................................... 10
Chapter 5 Marketing Segmentation, Targeting and Positioning ........................................................... 16
Chapter 4 Marketing Research and Customer Insights ......................................................................... 23
Chapter 6 Value through Products and Brands ..................................................................................... 28
Chapter 7 Value through Services, Relationships and Experiences ...................................................... 38
Chapter 8 Value Through Price.............................................................................................................. 42
Chapter 9 Distribution: Delivering Customer Value .............................................................................. 45
Chapter 10 Integrated Marketing communications 1: Mass Communications Techniques ................ 52
Chapter 11 Integrated Marketing communications 2: Direct communication Techniques.................. 61
Chapter 12 Digital Marketing ................................................................................................................ 66




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,Chapter 1 Nature of Marketing
What is marketing?

“Marketing is the delivery of value to customers at a profit.” (Fahy & Jobber 2015, p. 9)
Marketing concept The achievement of corporate goals through meeting and exceeding
customer needs better than the competition.

Marketing evolution

Production era -> selling era -> customer era -> societal era

Key components of the ‘modern’ marketing concept:

1. Customer orientation Company activities are focused on providing customer satisfaction:
The fulfillment of customers’ requirements or needs.
2. Integrated effort Achievement of customer satisfaction relies on integrated effort. All
staff accept its responsibility.
3. Goal achievement Management must believe that corporate goals can be achieved
through satisfied customers.

Thee value positions (Treacy and Wiersema):

1. Product leadership Focus on core processes of invention, product development and
market exploitation.
2. Customer intimacy Focus on core processes of solution development, result management
and relationship management.
3. Operational excellence Focus on processes for end-to-end product supply and basic services
that are streamlined and optimized to minimize cost and provide
hassle-free service.

Customer value Perceived benefits – perceived sacrifice
Perceived benefits Benefits derived from product
Perceived sacrifice Total cost associated with buying the product

Creating customer satisfaction -> Kano model separates characteristics that cause dissatisfaction,
satisfaction and delight:

▪ Must bes Expected and taken for granted.
▪ More is better Takes satisfaction past neutral into the positive satisfaction range.
▪ Delighters Unexpected characteristics that surprise the customer.




2

,Forms of customer value:

1. Price value Product is perceived being cheaper than those offered by competitors.
2. Relational value Quality of service received by customer.
▪ Lifetime value of a customer: recognition by company of potential sales,
profits and endorsements that come from a repeat customer that stays
for several years with the company.
▪ Customer relationship management (CRM): system to get to know
customers better and to interact with them on regular basis.
3. Emotional value Brands in mind of consumer.
4. Performance value Functionality and perceive quality level.

Customer value proposition Clear statement of the differential benefits offered by a service or
product.

Business orientations:

▪ Marketing orientation Implementing of marketing concept
Customer needs -> market opportunities -> marketing products and services -> customers
▪ Production orientation Focuses on production capabilities. Fits production and selling era
Production capabilities -> manufacture product -> aggressive sales effort -> customers
▪ Sales orientation
Products and services -> aggressive sales effort -> customers
▪ Customer orientation
Customer needs -> potential market opportunities -> marketing products and services ->
customers

Societal marketing concept Idea that company’s marketing decisions should consider consumers’
wants, company’s requirement, consumers’ long-ream interests and
society’s long-run interest.

Market-driven/outside-in firms Seek to anticipate as well as identify consumer needs and build the
resource profiles necessary to meet current and anticipated future
demand.




3

, Marketing planning Process by which businesses analyze the environment and their
capabilities, decide upon courses of marketing in action and
implement those decisions.




Business mission Broadly defined, enduring statement of purpose that distinguishes a
business from others of its type.

Differential strategy Selection of one or more customer choice criteria, and positioning the
offering accordingly to achieve costumer value.

Marketing audit Organizations current situation: objectives, strategies and activities.

Presenting outcomes of a market through a SWOT analysis (strengths, weaknesses, opportunities and
threats facing the organization).

Source
Strengths Weaknesses Internal (controllable)
Opportunities Threats External (uncontrollable)


Marketing objectives derived from results of marketing audit and SWOT analysis two types:

▪ Strategic trust Decision which products to sell in which markets.
Product growth strategies: Ansoff Matrix
- Market penetration or expansion
- Product development
- Market development




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