Marketing
1.Marketing Principles and Practice
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.
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.
Exchange creates value, gives people more consumption choices or possibilities
Difference customer and consumer?
Customer= is a buyer, purchaser, patron, client
Difference? --> The customer obtains an offering, but the consumer uses it!!
Customer value: the consumer’s assessment of the product’s overall capacity to satisfy his or her
needs.
Market orientation
- Organisation-wide belief in delivering customer value
- Understanding consumer needs even better than consumers themselves do
- Creating products that meet existing and latent needs, now or in future
Customer orientation: creating superior value by continuously developing and redeveloping offering
to meet customer needs
Competitor orientation: develop an understanding of its competitors’ short-term strengths and
weaknesses.
Interfunctional coordination: require all functions of an organization to work together for long-
term profit growth.
,Customer Centricity IS!!!
- NOT trying to please ALL customers
- Fulfilling needs in a PROFITABLE way
Marketing’s Intellectual Roots
1. Industrial economics influences:
- Supply and demand (price, quantity)
- Theories of income distribution, scale of operation, monopoly, competition, …
2. Psychological influences
- Consumer behaviour, motivation research, information processing
- Persuasion, consumer personality, customer satisfaction, …
3. Sociological influences
- How groups of people behave: Demographics, class, motivation, customs, culture
- How communication passes through opinion leaders, …
4. Anthropological influences
- Qualitative approaches in researching consumer behavior
5. Computer science influences
- Digitization, recommendation systems, apps, …
, Differences between Sales and Marketing?
Sales emphasizes the process of ‘product push’ by creating distribution incentives for both
salespeople and customers to make exchanges.
Marketing focuses on creating ‘product pull’, by stoking demand among customers and consumers.
Marketing as a exchange
Industrial Economic goods & services Customers
organisation
Monetary payment
Value
Organisation Customers
Value
Value
Organisation
Stakeholders
Value
Co-creation
, The marketing process
Maslow’s pyramid of needs
Selecting a target market
- Market segmentation
- Target marketing
Value proposition
“Why should customers buy our brand in stead of competitors’?”
• Differentiation
• Positioning
1.Marketing Principles and Practice
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.
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.
Exchange creates value, gives people more consumption choices or possibilities
Difference customer and consumer?
Customer= is a buyer, purchaser, patron, client
Difference? --> The customer obtains an offering, but the consumer uses it!!
Customer value: the consumer’s assessment of the product’s overall capacity to satisfy his or her
needs.
Market orientation
- Organisation-wide belief in delivering customer value
- Understanding consumer needs even better than consumers themselves do
- Creating products that meet existing and latent needs, now or in future
Customer orientation: creating superior value by continuously developing and redeveloping offering
to meet customer needs
Competitor orientation: develop an understanding of its competitors’ short-term strengths and
weaknesses.
Interfunctional coordination: require all functions of an organization to work together for long-
term profit growth.
,Customer Centricity IS!!!
- NOT trying to please ALL customers
- Fulfilling needs in a PROFITABLE way
Marketing’s Intellectual Roots
1. Industrial economics influences:
- Supply and demand (price, quantity)
- Theories of income distribution, scale of operation, monopoly, competition, …
2. Psychological influences
- Consumer behaviour, motivation research, information processing
- Persuasion, consumer personality, customer satisfaction, …
3. Sociological influences
- How groups of people behave: Demographics, class, motivation, customs, culture
- How communication passes through opinion leaders, …
4. Anthropological influences
- Qualitative approaches in researching consumer behavior
5. Computer science influences
- Digitization, recommendation systems, apps, …
, Differences between Sales and Marketing?
Sales emphasizes the process of ‘product push’ by creating distribution incentives for both
salespeople and customers to make exchanges.
Marketing focuses on creating ‘product pull’, by stoking demand among customers and consumers.
Marketing as a exchange
Industrial Economic goods & services Customers
organisation
Monetary payment
Value
Organisation Customers
Value
Value
Organisation
Stakeholders
Value
Co-creation
, The marketing process
Maslow’s pyramid of needs
Selecting a target market
- Market segmentation
- Target marketing
Value proposition
“Why should customers buy our brand in stead of competitors’?”
• Differentiation
• Positioning
