BUS2010F
MARKETING 1
2019
These notes include summaries of Lectures 2-23, as well as important points from
the course readings.
Use these in conjunction with the formal lecture slides.
Kate Scholtz
SCHKAT034
,THE MARKETING PROCESS
WHAT IS MARKETING?
DEFINITIONS:
(1) The process by which firms create value for customers and build strong
relationships in order to capture value from customers in return.
(2) 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.
(3) Anticipating and satisfying consumer needs by means of mutually beneficial
exchange processes, and doing so profitably and more effectively than
competitors by means of efficient managerial processes.
THE MARKETING PROCESS
(1) Understand the Marketplace
(2) Design a customer-driven marketplace
(3) Construct an integrated marketing programme
(4) Build profitable relationships
(5) Capture value from consumers
1. UNDERSTANDING THE MARKETPLACE
MARKET OFFERINGS
1. Products: the physical products sold and marketed by business
2. Services: activities or benefits offered for sale that are essentially intangible and
do not result in the ownership of anything.
3. Experiences: enhancing a product or service offering with an experience to
increase product value and consumer satisfaction.
2. DESIGNING A CUSTOMER-DRIVEN MARKETPLACE
Marketing management: the art and science of choosing target markets and building
profitable relationships with them.
- Marketing managers aim to find, attract, keep and grow target customers by
creating, delivering and communicating superior customer value.
- They choose which consumers the business will serve and how best to serve them.
1. Select customers to serve (this leads to the first two steps of STP)
2. Choose a value proposition (this leads to the third step of STP)
3. Employ a marketing management orientation (throughout the business)
- Marketing strategies will be formulated around the chosen marketing
management orientation. Determines how value will be delivered to customers.
Kate Scholtz BUS2010F 2019
,MARKETING MANAGEMENT ORIENTATIONS
THE PRODUCTION CONCEPT
The idea that consumers will favour products that are available and highly affordable,
and that the firm should therefore focus on improving production and distribution
efficiency.
The focus is therefore on mass production.
THE PRODUCT CONCEPT
The idea that consumers will favour products that offer the most quality, performance
and features, and that the firm should therefore devote it energy to making continuous
product improvements.
The focus is therefore on product innovation.
THE SELLING CONCEPT
The idea that consumers will not buy enough of the firm’s products unless it undertakes a
large-scale selling and promotion effort.
The focus is on product promotion.
THE MARKETING CONCEPT
The idea that achieving a firm’s goals depends on the needs and wants of target markets
and delivering the desired satisfactions better than competitors do.
The focus is therefore on creating consumer value.
THE SOCIETAL MARKETING CONCEPT
A principle of enlightened marketing that holds that a firm should make good marketing
decisions by considering consumer’s wants, the firms’ requirements, consumer's long-run
interests and society’s long- run interests.
The focus is on being a sustainable business – meeting the triple bottom line.
An integrated marketing program details how value will actually be delivered to
target customers. It turns marketing strategies into marketing tactics.
To do this, marketers use the marketing mix.
4. BUILD PROFITABLE RELATIONSHIPS
Customer Relationship Management (CRM): The overall process of building and
maintaining profitable customer relationships by delivering superior value and
satisfaction.
Partner Relationship Management: Working closely with partners in other departments
of the firm and outside the firm to jointly bring greater value to customers.
5. CAPTURE VALUE FROM CUSTOMERS
This involved capturing value from customers in the form of current and future sales,
market share and profits. We want to create customer loyalty and retain them for future
profits.
Customer lifetime value (CLV): the value of an entire stream of purchases that a
consumer would make over a lifetime of patronage.
Kate Scholtz BUS2010F 2019
, Customer equity: the total combined discounted CLV of all the firm’s customers.
THE NEW MARKETING LANDSCAPE
THE NEW DIGITAL AGE
Rapid technological advancement changes the way firms bring value to their customers.
RAPID GLOBALISATION
Advances in communication and transport technology has led to a more global
marketplace.
ETHICS AND SOCIAL RESPONSIBILITY
Consumers are increasingly demanding that businesses be socially and ethically
conscious.
NOT-FOR-PROFIT MARKETING
There has been massive growth in the marketing of not-for-profit organisations, like
universities.
Kate Scholtz BUS2010F 2019
MARKETING 1
2019
These notes include summaries of Lectures 2-23, as well as important points from
the course readings.
Use these in conjunction with the formal lecture slides.
Kate Scholtz
SCHKAT034
,THE MARKETING PROCESS
WHAT IS MARKETING?
DEFINITIONS:
(1) The process by which firms create value for customers and build strong
relationships in order to capture value from customers in return.
(2) 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.
(3) Anticipating and satisfying consumer needs by means of mutually beneficial
exchange processes, and doing so profitably and more effectively than
competitors by means of efficient managerial processes.
THE MARKETING PROCESS
(1) Understand the Marketplace
(2) Design a customer-driven marketplace
(3) Construct an integrated marketing programme
(4) Build profitable relationships
(5) Capture value from consumers
1. UNDERSTANDING THE MARKETPLACE
MARKET OFFERINGS
1. Products: the physical products sold and marketed by business
2. Services: activities or benefits offered for sale that are essentially intangible and
do not result in the ownership of anything.
3. Experiences: enhancing a product or service offering with an experience to
increase product value and consumer satisfaction.
2. DESIGNING A CUSTOMER-DRIVEN MARKETPLACE
Marketing management: the art and science of choosing target markets and building
profitable relationships with them.
- Marketing managers aim to find, attract, keep and grow target customers by
creating, delivering and communicating superior customer value.
- They choose which consumers the business will serve and how best to serve them.
1. Select customers to serve (this leads to the first two steps of STP)
2. Choose a value proposition (this leads to the third step of STP)
3. Employ a marketing management orientation (throughout the business)
- Marketing strategies will be formulated around the chosen marketing
management orientation. Determines how value will be delivered to customers.
Kate Scholtz BUS2010F 2019
,MARKETING MANAGEMENT ORIENTATIONS
THE PRODUCTION CONCEPT
The idea that consumers will favour products that are available and highly affordable,
and that the firm should therefore focus on improving production and distribution
efficiency.
The focus is therefore on mass production.
THE PRODUCT CONCEPT
The idea that consumers will favour products that offer the most quality, performance
and features, and that the firm should therefore devote it energy to making continuous
product improvements.
The focus is therefore on product innovation.
THE SELLING CONCEPT
The idea that consumers will not buy enough of the firm’s products unless it undertakes a
large-scale selling and promotion effort.
The focus is on product promotion.
THE MARKETING CONCEPT
The idea that achieving a firm’s goals depends on the needs and wants of target markets
and delivering the desired satisfactions better than competitors do.
The focus is therefore on creating consumer value.
THE SOCIETAL MARKETING CONCEPT
A principle of enlightened marketing that holds that a firm should make good marketing
decisions by considering consumer’s wants, the firms’ requirements, consumer's long-run
interests and society’s long- run interests.
The focus is on being a sustainable business – meeting the triple bottom line.
An integrated marketing program details how value will actually be delivered to
target customers. It turns marketing strategies into marketing tactics.
To do this, marketers use the marketing mix.
4. BUILD PROFITABLE RELATIONSHIPS
Customer Relationship Management (CRM): The overall process of building and
maintaining profitable customer relationships by delivering superior value and
satisfaction.
Partner Relationship Management: Working closely with partners in other departments
of the firm and outside the firm to jointly bring greater value to customers.
5. CAPTURE VALUE FROM CUSTOMERS
This involved capturing value from customers in the form of current and future sales,
market share and profits. We want to create customer loyalty and retain them for future
profits.
Customer lifetime value (CLV): the value of an entire stream of purchases that a
consumer would make over a lifetime of patronage.
Kate Scholtz BUS2010F 2019
, Customer equity: the total combined discounted CLV of all the firm’s customers.
THE NEW MARKETING LANDSCAPE
THE NEW DIGITAL AGE
Rapid technological advancement changes the way firms bring value to their customers.
RAPID GLOBALISATION
Advances in communication and transport technology has led to a more global
marketplace.
ETHICS AND SOCIAL RESPONSIBILITY
Consumers are increasingly demanding that businesses be socially and ethically
conscious.
NOT-FOR-PROFIT MARKETING
There has been massive growth in the marketing of not-for-profit organisations, like
universities.
Kate Scholtz BUS2010F 2019
