Marketing
Chapter 1: Marketing Principles and Practice
Objectives:
Define the marketing concept
Understand the concepts of exchange in marketing and the marketing mix
Explain how marketing has developed over the twentieth century and into the twenty-first century.
Describe the three major contexts of marketing application, i.e. consumer goods, business-to-
business, and services marketing
Understand the positive contribution marketing makes to society
1.1 What is Marketing?
The primary goal ⇒ Understand and meet customer needs to create value and build a connection with your
customers
Definition: 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 relationships with stakeholders
What does marketing apply to?
- Physical products (beverages, food, …)
- Services (banking, transportation, netflix, cloud storage like google drive … )
- Retail (selling goods and services to customers directly)
- Experiences (pairi daiza, disneyland …)
- Events (Olympic games, festivals …)
- Film, Music and theater
- Places (Travel destinations, cities …)
- Ideas (don’t drink and drive, …)
- Charity and non-profit (ice-bucket challenge to draw attention, warmste week… )
- People (Donald Trump, Kardashians … )
⇒ Marketing applies to anywhere “buyers” have a choice.
,1.2. What is the difference between customers and consumers?
→ Customer buys, Consumer uses
Consumers buying rules:
Payer (company’s credit card) buyer (Employee)
Example of using different buyer roles to target a marketing campaign: Old Spice → Targeting women for a
product for men
1.3. Market Orientation
Definition: “The organization-wide generation of market intelligence pertaining to current and future
customer needs, dissemination of the intelligence across the departments, and organization-wide
responsiveness to it” (Kohli and Jaworski, 1990: 6).
⇒ All departments of a company start from the customer’s needs (organization-wide), they focus on how
needs change throughout time (market intelligence)
The three components of market orientation:
1) Customer orientation (What are the customer’s needs?)
2) Competitor orientation (try create value better than the competitors)
3) Interfunctional coordination (working together between different functions)
Idea: don’t try to please all customers, but focus on a certain segment
,1.4 Differences between sales and marketing
Sales: Product push, short-term focus on satisfaction of customer needs
Marketing: Product pull long-term focus on satisfaction of customer needs, high focus on
stimulation of demand
Sales (Acquisition) VS Marketing (Retention)
Tip of the iceberg:
What customers know:
What customers might know:
What customers don’t know:
1.5 What do marketers do?
Placing the customer at the center of a company’s operations and decision-making processes
⇒ Generate customer insights
⇒ Develop marketing strategy
Marketing within organizations:
→ puts customers first
→ enhance a firm’s relationship with its customers
→ All departments play a role in creating, delivering and satisfying customers
, 1.6 Marketing as exchange
Exchange = the act of obtaining a desired object from someone by offering something in return
▪ At least two parties
▪ Each must hold something of value to offer
▪ Parties must want to deal with each other
⇒ Exchange creates value, gives people more consumption choices or possibilities
Customer value: the consumer’s assessment of the product’s overall capacity to satisfy his or her needs
= Ratio between benefits and costs (monetary and non-monetary)
⇒ How well a product meets a consumer’s needs
Value is subjective and depends on the individual customer
(Example: Iphone ⇒ benefits, costs a lot, used to the system?)
Exchange of value:
Outcomes of creating customer value:
→ Repeat purchases
→ Positive word-of-mouth (brand ambassadorship)
→ Customer loyalty and retention
→ Growing market share
→ Growing share of customer
→ Building customer equity (= total value over a lifetime)
Chapter 1: Marketing Principles and Practice
Objectives:
Define the marketing concept
Understand the concepts of exchange in marketing and the marketing mix
Explain how marketing has developed over the twentieth century and into the twenty-first century.
Describe the three major contexts of marketing application, i.e. consumer goods, business-to-
business, and services marketing
Understand the positive contribution marketing makes to society
1.1 What is Marketing?
The primary goal ⇒ Understand and meet customer needs to create value and build a connection with your
customers
Definition: 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 relationships with stakeholders
What does marketing apply to?
- Physical products (beverages, food, …)
- Services (banking, transportation, netflix, cloud storage like google drive … )
- Retail (selling goods and services to customers directly)
- Experiences (pairi daiza, disneyland …)
- Events (Olympic games, festivals …)
- Film, Music and theater
- Places (Travel destinations, cities …)
- Ideas (don’t drink and drive, …)
- Charity and non-profit (ice-bucket challenge to draw attention, warmste week… )
- People (Donald Trump, Kardashians … )
⇒ Marketing applies to anywhere “buyers” have a choice.
,1.2. What is the difference between customers and consumers?
→ Customer buys, Consumer uses
Consumers buying rules:
Payer (company’s credit card) buyer (Employee)
Example of using different buyer roles to target a marketing campaign: Old Spice → Targeting women for a
product for men
1.3. Market Orientation
Definition: “The organization-wide generation of market intelligence pertaining to current and future
customer needs, dissemination of the intelligence across the departments, and organization-wide
responsiveness to it” (Kohli and Jaworski, 1990: 6).
⇒ All departments of a company start from the customer’s needs (organization-wide), they focus on how
needs change throughout time (market intelligence)
The three components of market orientation:
1) Customer orientation (What are the customer’s needs?)
2) Competitor orientation (try create value better than the competitors)
3) Interfunctional coordination (working together between different functions)
Idea: don’t try to please all customers, but focus on a certain segment
,1.4 Differences between sales and marketing
Sales: Product push, short-term focus on satisfaction of customer needs
Marketing: Product pull long-term focus on satisfaction of customer needs, high focus on
stimulation of demand
Sales (Acquisition) VS Marketing (Retention)
Tip of the iceberg:
What customers know:
What customers might know:
What customers don’t know:
1.5 What do marketers do?
Placing the customer at the center of a company’s operations and decision-making processes
⇒ Generate customer insights
⇒ Develop marketing strategy
Marketing within organizations:
→ puts customers first
→ enhance a firm’s relationship with its customers
→ All departments play a role in creating, delivering and satisfying customers
, 1.6 Marketing as exchange
Exchange = the act of obtaining a desired object from someone by offering something in return
▪ At least two parties
▪ Each must hold something of value to offer
▪ Parties must want to deal with each other
⇒ Exchange creates value, gives people more consumption choices or possibilities
Customer value: the consumer’s assessment of the product’s overall capacity to satisfy his or her needs
= Ratio between benefits and costs (monetary and non-monetary)
⇒ How well a product meets a consumer’s needs
Value is subjective and depends on the individual customer
(Example: Iphone ⇒ benefits, costs a lot, used to the system?)
Exchange of value:
Outcomes of creating customer value:
→ Repeat purchases
→ Positive word-of-mouth (brand ambassadorship)
→ Customer loyalty and retention
→ Growing market share
→ Growing share of customer
→ Building customer equity (= total value over a lifetime)
