MARKETING
CHAPTER 1: MARKETING PRINCIPLES AND PRACTICE
WHAT IS MARKETING?
MARKETING = a social and managerial process by which individuals and groups obtain what they need and
want trough creating and exchanging products and value with others
In business context: To build and maintain profitable customer relationships with stakeholders
Marketing ≠ selling
↪ starts from your costumer and what they are looking for
Marketing applies to anywhere “buyers” have a choice (physical products, services, retail,
experiences, events, film, music & theater, places , ideas , charities and non-profits, people)
EXCHANGE = the act of obtaining a desired object from someone by offering something in return
Conditions:
a. At least 2 parties must be involved
b. Each must hold something of value to offer
c. 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 products overall capacity to satisfy his/her needs
Perceived value = how a customer sees the benefits and value of a product perception
changes everything customer perceived value is the difference between the prospective
customer’s evaluation of all the benefits and all the costs of an offering, compared to the
perceived alternatives.
WHAT IS THE DIFFERENCE BETWEEN CUSTOMERS AND CONSUMERS
CUSTOMER = a buyer, a purchaser, a patron, a client, or a shopper (someone buying from a shop, a website,
a business, and, in the sharing economy, another customer)
CONSUMER = anyone who is a potential customer or anyone wo has an influence on what customers will
feel à there are different kinds of consumer’s buying roles
Initiator: initiates the idea
Influencer: influences
Decider: ultimate buying decision
Buyer: does the actual purchase
Payer: pays for the product
User: consumes, uses the product
Gatekeeper: controls the access
The difference between customer and consumer is that a customer purchases or obtains an offering but a
consumer uses it
MARKET ORIENTATION
MARKET ORIENTATION = Organization-wide belief in delivering customer value
profitable in long and short run
involves the marketing function and everyone gathering and responding to market intelligence
Goal: understanding consumer needs even better than consumers themselves do and creating
products that meet existing and invisible needs, now or in the future
3 components of market orientation
1) Customer orientation
1
, concerned with creating superior value by continuously developing and redeveloping
offerings to meet customer needs
measure customer satisfaction constantly
2) Competitor orientation
requiring an organization to develop an understanding of its competitor’s short term
strengths and weaknesses and long term capabilities and strategies
3) Interfunctional coordination
requiring all an organization’s functions to work together for LT profit growth
Organizations that develop a market orientation are better at MARKET SENSING (= an
organization’s ability to gather, interpret and act on strategic information from customers and
competitors)
CUSTOMER CENTRICITY = you put the customer at the center of everything you do try
NOT to please all customers because it is impossible
MARKETING ORIENTATION = a company that recognizes the importance of marketing within
the orientation (market orientation ≠ marketing orientation)
MARKETING’S INTELLECTUAL ROOTS
ADVERTISING = a form of non-personal communication by an identified sponsor that is
transmitted through the use of paid-for-media
Industrial economic influences
o Supply and demand (price & quality)
o Theories of income distributions, scale of operation, monopoly ..
Psychological influences
o Consumer behavior, motivation, research, information processing
o Persuasion, consumer personality, customer satisfaction
Sociological influences
o How groups of people behave (demographics, motivation, class, culture…)
o How communication passes through opinion leaders
Anthropological influences
o Qualitative approaches in researching consumer behavior
Computer science influences
o Digitalization, recommendation, system, apps…
DIFFERENCE BETWEEN SALES AND MARKETING
selling is only the tip of the iceberg (picture in power point slides)
Marketing is knowing your customers so well that the product will sell itself you start from
customer needs and not the product it self
Sales and marketing should be integrated to coexist in an organization because both are
important to achieve a market orientation
Marketing Sales
2
, Long-term satisfaction of customer needs Short-term satisfaction of customer needs
Tends to greater input into customer design Tends to lesser input into customer design of
of offering (co-creation) offering
Tends to high focus on stimulation of demand Tends to low focus on stimulation of demand,
more focused on meeting existing demand
WHAT DO MARKETERS DO?
Marketing is not a cost it’s an INVESTMENT
Marketing abilities framework with 5 proficiency levels (5 A’s)
1) Aware
2) Active learner
3) Able
4) Accomplished
5) Authoritative
The core competencies of the marketer are to
generate customer insights and develop
marketing strategy
Technical competencies include:
o risk and reputation management
o brand
o integrated marketing communications
o digital integration
o product management
o monitoring and measuring effectiveness
o customer experience
o partnership marketing, including
managing channel partners
Behavioral competencies include: influencing,
collaborative, responsible, financially literate,
inspiring, innovative, challenging,
entrepreneurial, commercially aware and creative
Marketing within organizations
marketing puts customers first
marketing is present in all aspects of an organization, since all departments play a role in
creating, delivering and satisfying customers
Marketers DO NOT control all the marketing mix elements
Marketers within organizations
CEOs with a marketing background outperform CEOs from nearly all other backgrounds when
it comes to being socially responsible, inclusive and having a strong strategy and long-term vision
MARKETING AS EXCHANGE
STAKEHOLDER = anyone who has an interest in the company or contributes to the company
Ex: suppliers, public opinions, employees, government, students, share holders
They offer trust, funding, influence (word of mouth),
3
, What can customers and other stakeholders bring of value other than purchases? (example)
Outcomes of creating customer value
o Satisfaction = repeat purchases & positive word-of-mouth
o Dissatisfaction = discontinuation of purchase & negative word-of-mouth
o Customer loyalty and retention
o Growing market share
o Growing share of customer
o Building customer equity
THE MARKETING MIX AND THE 4P’S
MARKETING MIX = tools that marketers have in hand to convince customers to buy their
product
o Product = the offering and how it meets the customer’s need
o Place = the way in which the offering is delivered to the customer
o Promotion = how the offering’s benefits and features are communicated to the potential
buyer
o Price = the cost to the customer and the cost + profit for the seller
Marketing focusses on customer centricity so the 4p’s become 4c’s
o Customer
o Cost = how much does the customer have to invest
o Convenience = how easy can customers get to the product
o Communication = how do we communicate with our customers
4
CHAPTER 1: MARKETING PRINCIPLES AND PRACTICE
WHAT IS MARKETING?
MARKETING = a social and managerial process by which individuals and groups obtain what they need and
want trough creating and exchanging products and value with others
In business context: To build and maintain profitable customer relationships with stakeholders
Marketing ≠ selling
↪ starts from your costumer and what they are looking for
Marketing applies to anywhere “buyers” have a choice (physical products, services, retail,
experiences, events, film, music & theater, places , ideas , charities and non-profits, people)
EXCHANGE = the act of obtaining a desired object from someone by offering something in return
Conditions:
a. At least 2 parties must be involved
b. Each must hold something of value to offer
c. 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 products overall capacity to satisfy his/her needs
Perceived value = how a customer sees the benefits and value of a product perception
changes everything customer perceived value is the difference between the prospective
customer’s evaluation of all the benefits and all the costs of an offering, compared to the
perceived alternatives.
WHAT IS THE DIFFERENCE BETWEEN CUSTOMERS AND CONSUMERS
CUSTOMER = a buyer, a purchaser, a patron, a client, or a shopper (someone buying from a shop, a website,
a business, and, in the sharing economy, another customer)
CONSUMER = anyone who is a potential customer or anyone wo has an influence on what customers will
feel à there are different kinds of consumer’s buying roles
Initiator: initiates the idea
Influencer: influences
Decider: ultimate buying decision
Buyer: does the actual purchase
Payer: pays for the product
User: consumes, uses the product
Gatekeeper: controls the access
The difference between customer and consumer is that a customer purchases or obtains an offering but a
consumer uses it
MARKET ORIENTATION
MARKET ORIENTATION = Organization-wide belief in delivering customer value
profitable in long and short run
involves the marketing function and everyone gathering and responding to market intelligence
Goal: understanding consumer needs even better than consumers themselves do and creating
products that meet existing and invisible needs, now or in the future
3 components of market orientation
1) Customer orientation
1
, concerned with creating superior value by continuously developing and redeveloping
offerings to meet customer needs
measure customer satisfaction constantly
2) Competitor orientation
requiring an organization to develop an understanding of its competitor’s short term
strengths and weaknesses and long term capabilities and strategies
3) Interfunctional coordination
requiring all an organization’s functions to work together for LT profit growth
Organizations that develop a market orientation are better at MARKET SENSING (= an
organization’s ability to gather, interpret and act on strategic information from customers and
competitors)
CUSTOMER CENTRICITY = you put the customer at the center of everything you do try
NOT to please all customers because it is impossible
MARKETING ORIENTATION = a company that recognizes the importance of marketing within
the orientation (market orientation ≠ marketing orientation)
MARKETING’S INTELLECTUAL ROOTS
ADVERTISING = a form of non-personal communication by an identified sponsor that is
transmitted through the use of paid-for-media
Industrial economic influences
o Supply and demand (price & quality)
o Theories of income distributions, scale of operation, monopoly ..
Psychological influences
o Consumer behavior, motivation, research, information processing
o Persuasion, consumer personality, customer satisfaction
Sociological influences
o How groups of people behave (demographics, motivation, class, culture…)
o How communication passes through opinion leaders
Anthropological influences
o Qualitative approaches in researching consumer behavior
Computer science influences
o Digitalization, recommendation, system, apps…
DIFFERENCE BETWEEN SALES AND MARKETING
selling is only the tip of the iceberg (picture in power point slides)
Marketing is knowing your customers so well that the product will sell itself you start from
customer needs and not the product it self
Sales and marketing should be integrated to coexist in an organization because both are
important to achieve a market orientation
Marketing Sales
2
, Long-term satisfaction of customer needs Short-term satisfaction of customer needs
Tends to greater input into customer design Tends to lesser input into customer design of
of offering (co-creation) offering
Tends to high focus on stimulation of demand Tends to low focus on stimulation of demand,
more focused on meeting existing demand
WHAT DO MARKETERS DO?
Marketing is not a cost it’s an INVESTMENT
Marketing abilities framework with 5 proficiency levels (5 A’s)
1) Aware
2) Active learner
3) Able
4) Accomplished
5) Authoritative
The core competencies of the marketer are to
generate customer insights and develop
marketing strategy
Technical competencies include:
o risk and reputation management
o brand
o integrated marketing communications
o digital integration
o product management
o monitoring and measuring effectiveness
o customer experience
o partnership marketing, including
managing channel partners
Behavioral competencies include: influencing,
collaborative, responsible, financially literate,
inspiring, innovative, challenging,
entrepreneurial, commercially aware and creative
Marketing within organizations
marketing puts customers first
marketing is present in all aspects of an organization, since all departments play a role in
creating, delivering and satisfying customers
Marketers DO NOT control all the marketing mix elements
Marketers within organizations
CEOs with a marketing background outperform CEOs from nearly all other backgrounds when
it comes to being socially responsible, inclusive and having a strong strategy and long-term vision
MARKETING AS EXCHANGE
STAKEHOLDER = anyone who has an interest in the company or contributes to the company
Ex: suppliers, public opinions, employees, government, students, share holders
They offer trust, funding, influence (word of mouth),
3
, What can customers and other stakeholders bring of value other than purchases? (example)
Outcomes of creating customer value
o Satisfaction = repeat purchases & positive word-of-mouth
o Dissatisfaction = discontinuation of purchase & negative word-of-mouth
o Customer loyalty and retention
o Growing market share
o Growing share of customer
o Building customer equity
THE MARKETING MIX AND THE 4P’S
MARKETING MIX = tools that marketers have in hand to convince customers to buy their
product
o Product = the offering and how it meets the customer’s need
o Place = the way in which the offering is delivered to the customer
o Promotion = how the offering’s benefits and features are communicated to the potential
buyer
o Price = the cost to the customer and the cost + profit for the seller
Marketing focusses on customer centricity so the 4p’s become 4c’s
o Customer
o Cost = how much does the customer have to invest
o Convenience = how easy can customers get to the product
o Communication = how do we communicate with our customers
4
