Marketing
M. Ferauche
Course notes and syllabus summary
Academic Year 2022 - 2023
1
,Chapter 1
Introduction to Marketing
2
,Learning Outcomes
Define marketing and outline steps in the marketing process.
Explain the importance of understanding the marketplace and customers and identify the five
core marketplace concepts
Identify the key elements of a customer value-driven marketing strategy and discuss the
marketing management orientations that guide marketing strategy
Discuss customer relationship management and identify strategies for creating value for
customers in return.
Describe the major trends and forces that are changing the marketing landscape in this age of
relationships
Once Upon a Time
18th Century:
o Primitive societies aren’t self-sufficient anymore
Trade
o Start of first business relationships
o 1 buyer with needs >< 1 seller with solution
o Priority : artisans wanted to produce items that were answering to their clients
needs, then they negotiated the price.
19th – 20th Century:
o = Production Period
o Taylorism = A factory management system developed in the late 19th century to
increase efficiency by evaluating every step in a manufacturing process and
breaking down production into specialized repetitive tasks (qualified engineers).
o Huge demand & mass production and profitability
o Priority : producing the right product at the right price, “If we can build it, we can
sell it”
1920 – 1950:
o = Sales Period
o First business techniques
o More & more mass producers need to stand out Market research &
advertising
o First logos on products and shops
o “Marketing, through research, helps the engineer to plan the production and develop
what client is looking for, at a price he is ready to pay, where and when he wants it.”
1968: 1st TV Spot in France
3
, Media consumption: 20th Century >< Now :
When the first TV spots came out, media consumption was a family ritual. Everyone
watched together, at the same time, to the same things. Now it has become a lot more
complex. Media consumers have become heterogenous targets. Everyone looks at their own
interests, at different times,…
! “Marketing has changed more in the past 2 years than in the previous 50 ”!
! “Markets always change faster than marketing “!
What is marketing?
Marketing is sales or advertising = old-school definition of marketing !
Selling and advertising are only the tip of the marketing iceberg. Today, marketing must be
understood not in the old sense of making a sale – ‘telling and selling’ – but in the new
sense of satisfying customer needs.
Definitions:
1948: « The performance of business activities that direct the flow of goods and services
from producers to consumers »
focus on distribution, selling
70s: « The process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods, and services to create exchanges that satisfy individual and
organizational objectives. »
Adding client satisfaction, original strategic and operational marketing, focus on
manager’s tasks
2017: « Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers, clients,
partners, and society at large. »
Complete vision, adding of customer value, focus on all stakeholders
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
Value proposition = a set of benefits that a company promises to deliver to
customers to satisfy their needs, “Why should the consumer buy the company’s
brand rather than a competitor's?”
Marketing Management = The art and science of choosing target markets and
building profitable relationships with them
4
M. Ferauche
Course notes and syllabus summary
Academic Year 2022 - 2023
1
,Chapter 1
Introduction to Marketing
2
,Learning Outcomes
Define marketing and outline steps in the marketing process.
Explain the importance of understanding the marketplace and customers and identify the five
core marketplace concepts
Identify the key elements of a customer value-driven marketing strategy and discuss the
marketing management orientations that guide marketing strategy
Discuss customer relationship management and identify strategies for creating value for
customers in return.
Describe the major trends and forces that are changing the marketing landscape in this age of
relationships
Once Upon a Time
18th Century:
o Primitive societies aren’t self-sufficient anymore
Trade
o Start of first business relationships
o 1 buyer with needs >< 1 seller with solution
o Priority : artisans wanted to produce items that were answering to their clients
needs, then they negotiated the price.
19th – 20th Century:
o = Production Period
o Taylorism = A factory management system developed in the late 19th century to
increase efficiency by evaluating every step in a manufacturing process and
breaking down production into specialized repetitive tasks (qualified engineers).
o Huge demand & mass production and profitability
o Priority : producing the right product at the right price, “If we can build it, we can
sell it”
1920 – 1950:
o = Sales Period
o First business techniques
o More & more mass producers need to stand out Market research &
advertising
o First logos on products and shops
o “Marketing, through research, helps the engineer to plan the production and develop
what client is looking for, at a price he is ready to pay, where and when he wants it.”
1968: 1st TV Spot in France
3
, Media consumption: 20th Century >< Now :
When the first TV spots came out, media consumption was a family ritual. Everyone
watched together, at the same time, to the same things. Now it has become a lot more
complex. Media consumers have become heterogenous targets. Everyone looks at their own
interests, at different times,…
! “Marketing has changed more in the past 2 years than in the previous 50 ”!
! “Markets always change faster than marketing “!
What is marketing?
Marketing is sales or advertising = old-school definition of marketing !
Selling and advertising are only the tip of the marketing iceberg. Today, marketing must be
understood not in the old sense of making a sale – ‘telling and selling’ – but in the new
sense of satisfying customer needs.
Definitions:
1948: « The performance of business activities that direct the flow of goods and services
from producers to consumers »
focus on distribution, selling
70s: « The process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods, and services to create exchanges that satisfy individual and
organizational objectives. »
Adding client satisfaction, original strategic and operational marketing, focus on
manager’s tasks
2017: « Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers, clients,
partners, and society at large. »
Complete vision, adding of customer value, focus on all stakeholders
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
Value proposition = a set of benefits that a company promises to deliver to
customers to satisfy their needs, “Why should the consumer buy the company’s
brand rather than a competitor's?”
Marketing Management = The art and science of choosing target markets and
building profitable relationships with them
4
