Marketing Nathalie Dens
Marketing Principles and Practice
What is marketing?
- Marketing
= 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
o Business context:
to build and maintain profitable customer relationships with stakeholders
o Applies anywhere ‘buyers’ have a choice: events, people, products, …
- Exchange
= The act of obtaining a desired object from someone by offering something in return
o At least 2 parties: each hold something of value to offer and must want to deal with
each other
Exchange creates value, gives people more consumption choices or possibilities
- Value
o Customer value:
the consumer’s assessment of the product’s capacity to satisfy their needs
o Perceived value:
how much it costs, the time/effort it takes to get the product
o Not always objective
- Consumer buying rules
= the one using an offering
o Initiator: initiates idea
o Influencer: influences
o Decider: ultimate buying decision
o Buyer: the one buying = customer
o Payer: pays
o User: consumes
o Gatekeeper: controls access
1
, Marketing Nathalie Dens
- Market orientation
= Organization-wide belief in delivering customer value
o Understanding consumer needs better than consumers themselves
o Creating products that meet existing and latent (underlying) needs
o Developing a market orientation:
Customer orientation:
creating superior value by continuously (re)developing offerings to meet
customer needs
Competitor orientation:
develop an understanding of its competitors’ strengths and weaknesses, and
its own capabilities and strategies
Interfunctional coordination:
requiring all the organization’s functions to work together for long-term
profit growth
Customer centricity:
not trying to please all customers, fulfilling needs in a profitable way
Marketing’s intellectual roots
- Influences:
o Industrial economics
Supply and demand (price, quantity)
Theories of income distribution, scale of operation, monopoly, competition,
…
o Psychological influences
Consumer behavior, motivation research, information processing
Persuasion, consumer personality, customer satisfaction, …
o Sociological influences
How groups of people behave: Demographics, class, motivation, customs,
culture
How communication passes through opinion leaders, …
o Anthropological influences
Qualitative approaches in researching consumer behavior
o Computer science influences
Digitization, recommendation systems, apps, …
- Sale vs marketing
o Sale = tip of the iceberg
short-term satisfaction, lesser input into customer design of the product, focus on
meeting existing demand
o Marketing
understanding your customers so well that you design a product that sells itself,
long-term satisfaction, greater input into customer design (co-creation), focus on
stimulation of demand
2
Marketing Principles and Practice
What is marketing?
- Marketing
= 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
o Business context:
to build and maintain profitable customer relationships with stakeholders
o Applies anywhere ‘buyers’ have a choice: events, people, products, …
- Exchange
= The act of obtaining a desired object from someone by offering something in return
o At least 2 parties: each hold something of value to offer and must want to deal with
each other
Exchange creates value, gives people more consumption choices or possibilities
- Value
o Customer value:
the consumer’s assessment of the product’s capacity to satisfy their needs
o Perceived value:
how much it costs, the time/effort it takes to get the product
o Not always objective
- Consumer buying rules
= the one using an offering
o Initiator: initiates idea
o Influencer: influences
o Decider: ultimate buying decision
o Buyer: the one buying = customer
o Payer: pays
o User: consumes
o Gatekeeper: controls access
1
, Marketing Nathalie Dens
- Market orientation
= Organization-wide belief in delivering customer value
o Understanding consumer needs better than consumers themselves
o Creating products that meet existing and latent (underlying) needs
o Developing a market orientation:
Customer orientation:
creating superior value by continuously (re)developing offerings to meet
customer needs
Competitor orientation:
develop an understanding of its competitors’ strengths and weaknesses, and
its own capabilities and strategies
Interfunctional coordination:
requiring all the organization’s functions to work together for long-term
profit growth
Customer centricity:
not trying to please all customers, fulfilling needs in a profitable way
Marketing’s intellectual roots
- Influences:
o Industrial economics
Supply and demand (price, quantity)
Theories of income distribution, scale of operation, monopoly, competition,
…
o Psychological influences
Consumer behavior, motivation research, information processing
Persuasion, consumer personality, customer satisfaction, …
o Sociological influences
How groups of people behave: Demographics, class, motivation, customs,
culture
How communication passes through opinion leaders, …
o Anthropological influences
Qualitative approaches in researching consumer behavior
o Computer science influences
Digitization, recommendation systems, apps, …
- Sale vs marketing
o Sale = tip of the iceberg
short-term satisfaction, lesser input into customer design of the product, focus on
meeting existing demand
o Marketing
understanding your customers so well that you design a product that sells itself,
long-term satisfaction, greater input into customer design (co-creation), focus on
stimulation of demand
2
