Marketing
CHAPTER 1: MARKETING PRINCIPLES AND PRACTICE OBJECTIVES
1.1 What is marketing?
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.
- I buy because it brings something in my life, we are exchanging values.
o It’s about being profitable not by being pushy, but by developing relationships.
- 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 2 parties
- Each must hold something of value to offer, the process of exchange creates value
- Parties must want to deal with each other
Exchange creates value, gives people more consumption choices or possibilities.
Value
Customers value: the consumer’s assessment of the product’s overall capacity to satisfy his or her
needs.
- It’s the customer who decides the price, if you have a really special phone, but nobody
wants it. Your phone will have no value.
It’s probably not a good idea to buy a Tesla if we look in terms of utility. So we can’t use utility if
we want to explain why people buy the car. A lot of brand we don’t buy just because they are
practical, but also because they come with a certain status.
- The perception (what people think of the brand) is really important.
o Value is in the mind of the customer.
Market orientation
Organization-wide belief in delivering customer value
- Marketing department can have good ideas but they need a CEO to help them put it out.
They need an IT department to make the marketing.
Understanding customers’ needs even better than consumers themselves do
- Before people didn’t want to be reached when they were out, so people thought why do
we need a smartphone. But the needs change, and that’s part of the marketers job.
Creating products that meet existing and latent needs, now or in the future
- “If I would have asked people what they wanted, they would have said faster horses”:
Henry ford
o People couldn’t image what a car was/could do
,To have a market orientation you need things:
- Long-term profit focus: you need to try to get a long term relationship with your customers.
You shouldn’t try to sell the most as possible in a short time.
o Customer orientation
o Competitor orientation
o Interfunctional coordination
Customer centricity is also not trying to please all customers:
- Fulfilling need in a profitable way
Marketing’s intellectual roots
- Industrial economics influences:
o Supply and demand (price, quantity)
o Theories of income distribution, scale of operation, monopoly, competition, …
- Psychological influences
o Consumer behaviour, motivation research, information processing
o Persuasion, consumer personality, customer satisfaction, …
- Sociological influences
o How groups of people behave: Demographics, class, motivation, customs, culture
o How communication passes through opinion leaders, …
- Anthropological influences
o Qualitative approaches in researching consumer behavior
- Computer science influences
o Digitization, recommendation systems, apps, …
Production period – Sales period – Marketing period – Societal marketing
characterized by a characterized by a characterized by a period – characterized
focus on physical focus on personal more advanced focus by a stronger focus on
production and supply, selling supported by on the customer’s social and ethical
where demand market research and needs. This phase took concerns in marketing.
exceeded supply. This advertising. This phase place after the Second This phase is taking
phase took place after took place after the World War. place during the
the industrial First World War. ‘information
revolution. revolution’ of the late
twentieth century.
1890s-1920s 1920s-1950s 1950s-1980s 1980s to present
,Selling in marketing is just the tip of the iceberg, what is really important is under the surface.
1.2 Marketing: Application and relevance
1. Physical products
2. Services
3. Retail
4. Experiences, events, film, music and theater, places, ideas, cahrities and non-profits,
people Marketing applies anywhere “buyers” have a choise
1.3 The marketing process
A functional map for marketing
At the core competencies we need to understand the customers, because it’s the only way we can
create value.
Next we have technical competencies, what do we say about the brand, how do we say it, witch
channels doe we use?
Behavioral competencies, what does a market need to know: he needs to work together with the
entire organization, he needs te get the CEO on board, he need to know some economics.
, Everyone who has an impact or influence on the organization are stakeholders. And the reason why
they are important is because they have an impact on how much value we can create. For the
university it are not just the students, but also the parents, the government for the subsidies, the
neighbors,…
Value
What can customers and other stakeholders bring of value, other than purchases?
- You can talk about the brand to your friends, family.
- We can give feedback if they give the compagnie gives a good value.
- There is loyalty, because if you do your bachelor here, you will probably also do your
master here.
The marketing process
Foto dia 53
Needs are key
Markering is a solution to a need, rather than focusing on a product
- If I’m trying to sell a drill, I’m not just trying to make a hole in my wall. I just want to make
my house a bit prettier. Are there other ways to do that, yes.
Don’t focus only on wants, focus on the underlying needs
Look beyond attributes
- You will pay more because of the advertising.
Create brand meaning of experiences
CHAPTER 1: MARKETING PRINCIPLES AND PRACTICE OBJECTIVES
1.1 What is marketing?
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.
- I buy because it brings something in my life, we are exchanging values.
o It’s about being profitable not by being pushy, but by developing relationships.
- 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 2 parties
- Each must hold something of value to offer, the process of exchange creates value
- Parties must want to deal with each other
Exchange creates value, gives people more consumption choices or possibilities.
Value
Customers value: the consumer’s assessment of the product’s overall capacity to satisfy his or her
needs.
- It’s the customer who decides the price, if you have a really special phone, but nobody
wants it. Your phone will have no value.
It’s probably not a good idea to buy a Tesla if we look in terms of utility. So we can’t use utility if
we want to explain why people buy the car. A lot of brand we don’t buy just because they are
practical, but also because they come with a certain status.
- The perception (what people think of the brand) is really important.
o Value is in the mind of the customer.
Market orientation
Organization-wide belief in delivering customer value
- Marketing department can have good ideas but they need a CEO to help them put it out.
They need an IT department to make the marketing.
Understanding customers’ needs even better than consumers themselves do
- Before people didn’t want to be reached when they were out, so people thought why do
we need a smartphone. But the needs change, and that’s part of the marketers job.
Creating products that meet existing and latent needs, now or in the future
- “If I would have asked people what they wanted, they would have said faster horses”:
Henry ford
o People couldn’t image what a car was/could do
,To have a market orientation you need things:
- Long-term profit focus: you need to try to get a long term relationship with your customers.
You shouldn’t try to sell the most as possible in a short time.
o Customer orientation
o Competitor orientation
o Interfunctional coordination
Customer centricity is also not trying to please all customers:
- Fulfilling need in a profitable way
Marketing’s intellectual roots
- Industrial economics influences:
o Supply and demand (price, quantity)
o Theories of income distribution, scale of operation, monopoly, competition, …
- Psychological influences
o Consumer behaviour, motivation research, information processing
o Persuasion, consumer personality, customer satisfaction, …
- Sociological influences
o How groups of people behave: Demographics, class, motivation, customs, culture
o How communication passes through opinion leaders, …
- Anthropological influences
o Qualitative approaches in researching consumer behavior
- Computer science influences
o Digitization, recommendation systems, apps, …
Production period – Sales period – Marketing period – Societal marketing
characterized by a characterized by a characterized by a period – characterized
focus on physical focus on personal more advanced focus by a stronger focus on
production and supply, selling supported by on the customer’s social and ethical
where demand market research and needs. This phase took concerns in marketing.
exceeded supply. This advertising. This phase place after the Second This phase is taking
phase took place after took place after the World War. place during the
the industrial First World War. ‘information
revolution. revolution’ of the late
twentieth century.
1890s-1920s 1920s-1950s 1950s-1980s 1980s to present
,Selling in marketing is just the tip of the iceberg, what is really important is under the surface.
1.2 Marketing: Application and relevance
1. Physical products
2. Services
3. Retail
4. Experiences, events, film, music and theater, places, ideas, cahrities and non-profits,
people Marketing applies anywhere “buyers” have a choise
1.3 The marketing process
A functional map for marketing
At the core competencies we need to understand the customers, because it’s the only way we can
create value.
Next we have technical competencies, what do we say about the brand, how do we say it, witch
channels doe we use?
Behavioral competencies, what does a market need to know: he needs to work together with the
entire organization, he needs te get the CEO on board, he need to know some economics.
, Everyone who has an impact or influence on the organization are stakeholders. And the reason why
they are important is because they have an impact on how much value we can create. For the
university it are not just the students, but also the parents, the government for the subsidies, the
neighbors,…
Value
What can customers and other stakeholders bring of value, other than purchases?
- You can talk about the brand to your friends, family.
- We can give feedback if they give the compagnie gives a good value.
- There is loyalty, because if you do your bachelor here, you will probably also do your
master here.
The marketing process
Foto dia 53
Needs are key
Markering is a solution to a need, rather than focusing on a product
- If I’m trying to sell a drill, I’m not just trying to make a hole in my wall. I just want to make
my house a bit prettier. Are there other ways to do that, yes.
Don’t focus only on wants, focus on the underlying needs
Look beyond attributes
- You will pay more because of the advertising.
Create brand meaning of experiences
