Marketing Management 2025-2026
Chapter 1: Marketing and the Organization
What is marketing?
Marketing is the process by which companies create value for customers and build strong customer
relationships in order to capture value from customers in return
⟶ Overall, marketing is central to business success because it creates and communicates value, satisfies
customers, builds relationships, and drives profit in multiple forms.
Value in Marketing
1. For Customers:
Value is about fulfilling customer needs and wants. Customers look for products or services that solve problems
or enhance their lives. For example, a smartphone that is fast, reliable, and user-friendly delivers high value to its
users.
2. For Organizations:
Value for organizations is measured in profit, but this isn’t just financial. It can also include societal or
environmental benefits. For instance, a company producing eco-friendly products may gain societal value while
also earning profits.
3. The Customer:
Customers are central to business success. Customer satisfaction is key: happy customers are more likely to
return, recommend the company, and contribute to long-term success.
4. Relationships:
Marketing isn’t just about making a single sale, it’s about building long-term relationships. Companies must
balance short-term goals (like immediate sales) with long-term goals (like customer loyalty). This involves
strategies for both acquisition (gaining new customers) and retention (keeping existing ones).
5. Process:
Marketing is a continuous process of exchanges between the company and its customers. Every interaction
contributes to perceived value, trust, and loyalty.
Marketing Concept
The marketing concept is the idea that a company can achieve its goals by meeting and exceeding customer
needs and expectations better than competitors. It is a customer-centered approach to business.
1. Customer Orientation:
All corporate activities should focus on providing customer satisfaction. Every product, service, or interaction
should aim to meet what the customer values most. For example, a restaurant may focus on fast service, quality
food, and a pleasant atmosphere to satisfy its customers.
2. Integrated Effort:
Customer satisfaction is everyone’s responsibility. All staff, from marketing and sales to operations, must
,contribute to creating a positive customer experience. This ensures a consistent and high-quality experience across
the company.
3. Goal Achievement:
The central belief of the marketing concept is that corporate goals (like profit, growth, or market share) are
achieved through customer satisfaction. Satisfied customers are more likely to buy again and recommend the
company, which drives long-term success.
Summary:
The marketing concept links customer satisfaction directly to business success. By focusing on understanding
and exceeding customer needs, companies can outperform competitors and achieve their objectives.
Market Orientation
Market orientation is a business approach where the company focuses on understanding and responding to
customer needs to identify and exploit market opportunities. Instead of just selling products, the company
studies the market to ensure it provides what customers actually want.
Key Points:
1. Customers: The central focus is on the customer. Companies research their needs, preferences, and behavior.
2. Customer Needs: Understanding what customers truly value allows the company to develop products and
services that satisfy those needs.
3. Potential Market Opportunities: By analyzing customer needs and market trends, businesses can spot
opportunities for new products, services, or improvements, giving them a competitive advantage.
4. Marketing Products and Services: Companies actively design, promote, and sell offerings that match
customer needs, rather than just producing what they can make.
Example:
A sportswear company notices a growing demand for eco-friendly running shoes. By creating a sustainable line, it
meets customer needs and seizes a market opportunity.
Product orientation
Product orientation is a business approach where the company focuses on its own production capabilities
rather than on customer needs. The main goal is to manufacture products efficiently and then use aggressive
sales efforts to sell them.
,Key Points:
1. Production Focus: The company prioritizes what it can produce best, rather than what the market actually
wants.
2. Aggressive Sales Effort: Marketing is often limited to pushing the product to customers through strong sales
techniques, rather than tailoring products to customer needs.
3. Customer Awareness: Customers are less central in this approach, which can lead to marketing myopia -->a
short-sighted focus on products rather than understanding customer desires and market trends.
Example:
A company produces a new type of vacuum cleaner with advanced features but ignores that customers want
lightweight and easy-to-use designs. Despite the product’s technical excellence, sales may be low because it doesn’t
meet customer needs.
Marketing Myopia
Marketing myopia occurs when a company focuses more on its products than on customer needs. It’s a short-
sighted approach that can cause long-term problems because the business may miss changing market trends or
evolving customer demands.
Market-Driven businesses vs internal focused businesses
, Efficiency vs. Effectiveness
These are two important concepts in business performance:
1. Efficiency:
Focuses on how well resources are used.
It’s about minimizing input relative to output: doing things in the best possible way.
Example: A factory produces 100 cars using fewer materials and less time than competitors.
2. Effectiveness:
Focuses on doing the right things.
It’s about achieving the desired goals, such as meeting customer needs or capturing market share.
Example: A company launches a product that perfectly matches customer demand, even if production costs
are higher.
Efficiency vs. Effectiveness Matrix:
Ineffective Effective
Inefficient Dies slowly Survives
Efficient Goes out of business quickly Does well; thrives
Efficiency alone is not enough: a company can be efficient but fail if it’s not effective.
Effectiveness without efficiency can survive but may waste resources.
The best outcome is to be both efficient and effective, which allows a company to thrive.
Five core customer and marketplace concepts
1. Needs, Wants, and Demands:
Needs are basic human requirements, like food, shelter, and safety.
Wants are how people express these needs in specific ways, influenced by culture and personality (e.g.,
craving sushi vs. pizza).
Demands are wants backed by purchasing power: customers can actually buy the product or service they
desire.
2. Market Offerings:
Products, services, or experiences offered to satisfy customer needs and wants.
Example: A smartphone (product), a streaming service subscription (service), or a theme park visit
(experience).
3. Value, Satisfaction, and Quality:
Value: The perceived benefit a customer gets relative to the cost.
Satisfaction: How well the product or service meets or exceeds expectations.
Quality: The standard of the product or service that contributes to perceived value and satisfaction.
Example: A high-quality laptop that meets your expectations provides high value and satisfaction.
4. Exchanges, Transactions, and Relationships:
Exchange: The act of giving something to receive something in return (e.g., money for a product).
Transaction: A specific agreement involving value between two parties.
Relationship: Long-term connections between a company and its customers, fostering loyalty and repeat
business.
5. Markets and the Marketing System:
Market: The set of actual or potential buyers for a product or service.
Chapter 1: Marketing and the Organization
What is marketing?
Marketing is the process by which companies create value for customers and build strong customer
relationships in order to capture value from customers in return
⟶ Overall, marketing is central to business success because it creates and communicates value, satisfies
customers, builds relationships, and drives profit in multiple forms.
Value in Marketing
1. For Customers:
Value is about fulfilling customer needs and wants. Customers look for products or services that solve problems
or enhance their lives. For example, a smartphone that is fast, reliable, and user-friendly delivers high value to its
users.
2. For Organizations:
Value for organizations is measured in profit, but this isn’t just financial. It can also include societal or
environmental benefits. For instance, a company producing eco-friendly products may gain societal value while
also earning profits.
3. The Customer:
Customers are central to business success. Customer satisfaction is key: happy customers are more likely to
return, recommend the company, and contribute to long-term success.
4. Relationships:
Marketing isn’t just about making a single sale, it’s about building long-term relationships. Companies must
balance short-term goals (like immediate sales) with long-term goals (like customer loyalty). This involves
strategies for both acquisition (gaining new customers) and retention (keeping existing ones).
5. Process:
Marketing is a continuous process of exchanges between the company and its customers. Every interaction
contributes to perceived value, trust, and loyalty.
Marketing Concept
The marketing concept is the idea that a company can achieve its goals by meeting and exceeding customer
needs and expectations better than competitors. It is a customer-centered approach to business.
1. Customer Orientation:
All corporate activities should focus on providing customer satisfaction. Every product, service, or interaction
should aim to meet what the customer values most. For example, a restaurant may focus on fast service, quality
food, and a pleasant atmosphere to satisfy its customers.
2. Integrated Effort:
Customer satisfaction is everyone’s responsibility. All staff, from marketing and sales to operations, must
,contribute to creating a positive customer experience. This ensures a consistent and high-quality experience across
the company.
3. Goal Achievement:
The central belief of the marketing concept is that corporate goals (like profit, growth, or market share) are
achieved through customer satisfaction. Satisfied customers are more likely to buy again and recommend the
company, which drives long-term success.
Summary:
The marketing concept links customer satisfaction directly to business success. By focusing on understanding
and exceeding customer needs, companies can outperform competitors and achieve their objectives.
Market Orientation
Market orientation is a business approach where the company focuses on understanding and responding to
customer needs to identify and exploit market opportunities. Instead of just selling products, the company
studies the market to ensure it provides what customers actually want.
Key Points:
1. Customers: The central focus is on the customer. Companies research their needs, preferences, and behavior.
2. Customer Needs: Understanding what customers truly value allows the company to develop products and
services that satisfy those needs.
3. Potential Market Opportunities: By analyzing customer needs and market trends, businesses can spot
opportunities for new products, services, or improvements, giving them a competitive advantage.
4. Marketing Products and Services: Companies actively design, promote, and sell offerings that match
customer needs, rather than just producing what they can make.
Example:
A sportswear company notices a growing demand for eco-friendly running shoes. By creating a sustainable line, it
meets customer needs and seizes a market opportunity.
Product orientation
Product orientation is a business approach where the company focuses on its own production capabilities
rather than on customer needs. The main goal is to manufacture products efficiently and then use aggressive
sales efforts to sell them.
,Key Points:
1. Production Focus: The company prioritizes what it can produce best, rather than what the market actually
wants.
2. Aggressive Sales Effort: Marketing is often limited to pushing the product to customers through strong sales
techniques, rather than tailoring products to customer needs.
3. Customer Awareness: Customers are less central in this approach, which can lead to marketing myopia -->a
short-sighted focus on products rather than understanding customer desires and market trends.
Example:
A company produces a new type of vacuum cleaner with advanced features but ignores that customers want
lightweight and easy-to-use designs. Despite the product’s technical excellence, sales may be low because it doesn’t
meet customer needs.
Marketing Myopia
Marketing myopia occurs when a company focuses more on its products than on customer needs. It’s a short-
sighted approach that can cause long-term problems because the business may miss changing market trends or
evolving customer demands.
Market-Driven businesses vs internal focused businesses
, Efficiency vs. Effectiveness
These are two important concepts in business performance:
1. Efficiency:
Focuses on how well resources are used.
It’s about minimizing input relative to output: doing things in the best possible way.
Example: A factory produces 100 cars using fewer materials and less time than competitors.
2. Effectiveness:
Focuses on doing the right things.
It’s about achieving the desired goals, such as meeting customer needs or capturing market share.
Example: A company launches a product that perfectly matches customer demand, even if production costs
are higher.
Efficiency vs. Effectiveness Matrix:
Ineffective Effective
Inefficient Dies slowly Survives
Efficient Goes out of business quickly Does well; thrives
Efficiency alone is not enough: a company can be efficient but fail if it’s not effective.
Effectiveness without efficiency can survive but may waste resources.
The best outcome is to be both efficient and effective, which allows a company to thrive.
Five core customer and marketplace concepts
1. Needs, Wants, and Demands:
Needs are basic human requirements, like food, shelter, and safety.
Wants are how people express these needs in specific ways, influenced by culture and personality (e.g.,
craving sushi vs. pizza).
Demands are wants backed by purchasing power: customers can actually buy the product or service they
desire.
2. Market Offerings:
Products, services, or experiences offered to satisfy customer needs and wants.
Example: A smartphone (product), a streaming service subscription (service), or a theme park visit
(experience).
3. Value, Satisfaction, and Quality:
Value: The perceived benefit a customer gets relative to the cost.
Satisfaction: How well the product or service meets or exceeds expectations.
Quality: The standard of the product or service that contributes to perceived value and satisfaction.
Example: A high-quality laptop that meets your expectations provides high value and satisfaction.
4. Exchanges, Transactions, and Relationships:
Exchange: The act of giving something to receive something in return (e.g., money for a product).
Transaction: A specific agreement involving value between two parties.
Relationship: Long-term connections between a company and its customers, fostering loyalty and repeat
business.
5. Markets and the Marketing System:
Market: The set of actual or potential buyers for a product or service.
