MARKETING
CHAPTER 1: MARKETING PRINCIPLES AND PRACTICE
OBJECTIVES:
1. Define the marketing concept
2. Understand the concepts of exchange in marketing and the marketing mix
3. Explain how marketing has developed over the twentieth century and into the twenty-first century.
4. Describe the three major contexts of marketing application, i.e. consumer goods, business-to-business, and
services marketing.
5. Understand the positive contribution marketing makes to society.
1. MARKETING CONCEPT
1.1 What is marketing?
o What is the primary goal of marketing?
1) Increase sales through aggressive promotion
2) Understand and meet customer needs to create value
3) Create advertisements for products
4) Ensure that products are cheaper than those of the competitions
o Marketing defined
• 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
o What does marketing apply to?
o Physical products
o Services
o Retail
o Experiences
o Events
o Film, music & theatre
o Places
o Ideas
o Charity and non-profit
o People
Marketing applies… anywhere “buyers” have a choice
1
,2. MARKETING CONCEPT
• Difference with selling
▪ Selling = thinking about your product and how good it is
▪ Marketing = thinking about the customer and their needs
• Definition
▪ 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
o Exchange = the core of marketing
• 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
o Value
• Customer value: the consumer’s assessment (=beoordeling) of the product’s overall
capacity to satisfy his or her needs
• PERCEIVED value!!! (=waargenomen)
• Example: Tesla
▪ What are the benefits? Don’t need to buy gas, less pollution, movement, …
▪ What are the drawbacks? Very expensive
▪ → perceived value? Negative: a lot of kilometers to get big utility, but you
get the status and it’s a nice car
• We don’t buy them for only the practical value!
• Example 2: British royal mail with prior stamp
▪ 97% gets delivered the next day, but no one believes that of the post
▪ Perception is really important → not everything can be measured
2
, 1.2 Customer vs consumer
• Consumers’ buying roles:
• Role • Description • Marketing implications and
applications (=gevolgen en
toepassingen)
• Initiates idea • Target initiators by emphasizing
• Initiator
how a product addresses their
needs
• Influences decision (by • E.g., collaborate with influencers
• Influencer
providing information)
• Ultimate buying decision • Facilitate decision-making process
• Decider
(e.g., detailed product information)
• Actual purchase • Ensure smooth purchasing process
• Buyer
• Pays • Offer various payment methods
• Payer
• Consumes (who really uses the • Provide user support, gather
• User
product) feedback
• Controls access of product • Communicate effectively with
• Gatekeeper
information gatekeepers
1.3 Market orientation
• Het begrijpen van de behoeften van klanten staat voorop
• 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
▪ Organization-wide belief in delivering customer value: the status of your
company are very important!
▪ Understanding consumer needs even better than consumers themselves do
• Consumers can’t imagine what is possible, that’s the job of the
marketer
▪ Creating products that meet existing and latent needs, now or in future
3
, o Developing a market orientation means developing:
• customer orientation—concerned with creating superior value by continuously
developing and redeveloping offerings to meet customer needs, meaning that we
should measure customer satisfaction on a continuous basis and train front-line
service staff;
= evolve around the costumer and processes the needs of the costumer
• competitor orientation—requiring an organization to develop an understanding of its
competitors’ short-term strengths and weaknesses, and its own long-term
capabilities and strategies
= create value for costumers and do it better than competitions to overtop them
• interfunctional coordination—requiring all an organization’s functions to work
together for long-term profit growth
= different functions in company, work together to satisfy and give best solutions
▪ Samenwerking en afstemming tussen verschillende afdelingen binnen een organisatie om de
behoeften van klanten effectief te begrijpen en te vervullen. Niet alleen de marketingafdeling,
maar de hele organisatie gericht is op het creëren van klantwaarde
o Customer centricity is
• NOT trying to please ALL customers
• Fulfilling needs in a PROFITABLE way
• Example: amazon
▪ Paying €100 for amazon prime → 70% doesn’t want it, 23% wants it so it’s
worth it!
• Het kan zeer winstgevend zijn om op een klein deel mensen te focussen en een
hogere prijs te vragen en extra diensten aan te bieden, je hoeft niet altijd voor
iedereen binnen handbereik zijn
1.4 Marketing’s intellectual roots
• Industrial economics influences:
▪ Supply and demand (price, quantity)
▪ Theories of income distribution, scale of operation, monopoly,
competition,…
• Psychological influences
4
CHAPTER 1: MARKETING PRINCIPLES AND PRACTICE
OBJECTIVES:
1. Define the marketing concept
2. Understand the concepts of exchange in marketing and the marketing mix
3. Explain how marketing has developed over the twentieth century and into the twenty-first century.
4. Describe the three major contexts of marketing application, i.e. consumer goods, business-to-business, and
services marketing.
5. Understand the positive contribution marketing makes to society.
1. MARKETING CONCEPT
1.1 What is marketing?
o What is the primary goal of marketing?
1) Increase sales through aggressive promotion
2) Understand and meet customer needs to create value
3) Create advertisements for products
4) Ensure that products are cheaper than those of the competitions
o Marketing defined
• 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
o What does marketing apply to?
o Physical products
o Services
o Retail
o Experiences
o Events
o Film, music & theatre
o Places
o Ideas
o Charity and non-profit
o People
Marketing applies… anywhere “buyers” have a choice
1
,2. MARKETING CONCEPT
• Difference with selling
▪ Selling = thinking about your product and how good it is
▪ Marketing = thinking about the customer and their needs
• Definition
▪ 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
o Exchange = the core of marketing
• 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
o Value
• Customer value: the consumer’s assessment (=beoordeling) of the product’s overall
capacity to satisfy his or her needs
• PERCEIVED value!!! (=waargenomen)
• Example: Tesla
▪ What are the benefits? Don’t need to buy gas, less pollution, movement, …
▪ What are the drawbacks? Very expensive
▪ → perceived value? Negative: a lot of kilometers to get big utility, but you
get the status and it’s a nice car
• We don’t buy them for only the practical value!
• Example 2: British royal mail with prior stamp
▪ 97% gets delivered the next day, but no one believes that of the post
▪ Perception is really important → not everything can be measured
2
, 1.2 Customer vs consumer
• Consumers’ buying roles:
• Role • Description • Marketing implications and
applications (=gevolgen en
toepassingen)
• Initiates idea • Target initiators by emphasizing
• Initiator
how a product addresses their
needs
• Influences decision (by • E.g., collaborate with influencers
• Influencer
providing information)
• Ultimate buying decision • Facilitate decision-making process
• Decider
(e.g., detailed product information)
• Actual purchase • Ensure smooth purchasing process
• Buyer
• Pays • Offer various payment methods
• Payer
• Consumes (who really uses the • Provide user support, gather
• User
product) feedback
• Controls access of product • Communicate effectively with
• Gatekeeper
information gatekeepers
1.3 Market orientation
• Het begrijpen van de behoeften van klanten staat voorop
• 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
▪ Organization-wide belief in delivering customer value: the status of your
company are very important!
▪ Understanding consumer needs even better than consumers themselves do
• Consumers can’t imagine what is possible, that’s the job of the
marketer
▪ Creating products that meet existing and latent needs, now or in future
3
, o Developing a market orientation means developing:
• customer orientation—concerned with creating superior value by continuously
developing and redeveloping offerings to meet customer needs, meaning that we
should measure customer satisfaction on a continuous basis and train front-line
service staff;
= evolve around the costumer and processes the needs of the costumer
• competitor orientation—requiring an organization to develop an understanding of its
competitors’ short-term strengths and weaknesses, and its own long-term
capabilities and strategies
= create value for costumers and do it better than competitions to overtop them
• interfunctional coordination—requiring all an organization’s functions to work
together for long-term profit growth
= different functions in company, work together to satisfy and give best solutions
▪ Samenwerking en afstemming tussen verschillende afdelingen binnen een organisatie om de
behoeften van klanten effectief te begrijpen en te vervullen. Niet alleen de marketingafdeling,
maar de hele organisatie gericht is op het creëren van klantwaarde
o Customer centricity is
• NOT trying to please ALL customers
• Fulfilling needs in a PROFITABLE way
• Example: amazon
▪ Paying €100 for amazon prime → 70% doesn’t want it, 23% wants it so it’s
worth it!
• Het kan zeer winstgevend zijn om op een klein deel mensen te focussen en een
hogere prijs te vragen en extra diensten aan te bieden, je hoeft niet altijd voor
iedereen binnen handbereik zijn
1.4 Marketing’s intellectual roots
• Industrial economics influences:
▪ Supply and demand (price, quantity)
▪ Theories of income distribution, scale of operation, monopoly,
competition,…
• Psychological influences
4
