CHAPTER 1: MARKETING PRINCIPLES AND PRACTICE
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
OBJECTIVES
1.1 what is marketing
Primary goal of marketing:
➔ creating value for customers and meet customer needs to create value. Understand
customers.
marketing defined: Marketing is a social and managerial process by which individuals and
groups obtain (verkrijgen) what they need and want through creating and exchanging products
and value with others.
→ creating value for others, it’s about multiple subjects.
In business context: To build and maintain profitable relationships with stakeholders
Marketing is abt changing the perceptions people have abt your product. It’s about subjective
quality. Don’t change the product, change the way people think
What does it apply to?
1. Physical products (cars, food…)
2. Services (banking services, transport services, streaming services…)
3. Retail (selling goods and services to customers)(zara, media markt, appie…)
4. Experiences (zoo, pretpark,…) (its abt the whole experience abt it, not only abt the
rollercoaster)
5. Event (Olympics, festivals)
6. Film, music, theatre
7. Places (marketing the traveling to it)
8. Ideas ( “don’t drink and drive”)
9. Charity and non-profit (warmste week) (something that’s good for the society)
10. People (trump…)
➔marketing applies to anywhere buyers have a choice
,1.2 What is the difference between customers and consumers?
Consumer is consuming something, customer buys something, but might not be the end user.
Consumers’ buying roles --> how different individuals have a role and influence on the
purchasing decision.
(na pijl hoe marketeers hierop inwerken)
- Initiator: first recognises the needs, initiates the idea → marketers try to target them by
emphasizing (benadrukken) how a product addresses their needs (Speelt in op hun
behoeften)
- Influencer: influences decision (by providing info) → collaborate with influencers; try to
get positive word
- Deciders: makes ultimate buying decision → Facilitate decision-making process (fe
detailed product info)(Vergemakkelijken van het besluitvormingsproces)
- Buyer: physical act of purchasing, clicking on a button online → ensure smooth
purchasing process
- Payer: pays → offer various payment methods
- User: consumes → provide enough service, gather feedback
- Gatekeeper: controls access of product information; FE an assistant who first screens
the product the chief wants to buy → communicate effectively with gatekeepers
Verschil buyer and payer: fe an assistant who buys smtng for their chief, bc the assistant doesn’t
pay.
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”
( Het organisatiebreed genereren van marktinformatie met betrekking tot de huidige en
toekomstige behoeften van de klant, de verspreiding van de informatie over de afdelingen en het
organisatiebreed reageren daarop)
➔ First look at the customer needs, know it better than they do themselves
➔ Organisation-wide belief in delivering customer value
➔ Understanding customer needs and create products based on that, we don’t always
know what we need, marketeers need to find out what it is
Three components of market orientation ==> long-term profit focus
Customer orientation: adapt services and processes to the need of the customer
Competitor orientation: look at competitors; weaknesses and strong parts.
,Interfunctional coordination: we should all work together as a company to give them the best
solutions
> Cooperation of the various internal business functions (samenwerking van alle
departementen)
Customer centricity: try to please a certain segment of customer group, not all customers
1.4 marketing’s intellectual roots
invloeden op marketing(campagnes)
Industrial economics influences (invloed v economie op marketing)
• Supply and demand (price, quantity)
• Theories of income distribution, scale of operation, monopoly, competition…
Psychological influences
• Consumer behaviour, motivation research, information processing, persuasion, consumer
personality, customer satisfaction…
Sociological influences
• How groups of people behave: Demographics, class, motivation, customs, culture
➔ influenced by the group you are in, not every culture should be targeted in the same way
Anthropological influences
• Qualitative approaches in researching consumer behaviour
Computer science influences
• Digitization, recommendation systems, apps…
1.5 Differences between sales and marketing
Sales: Product push, short-term focus on satisfaction of customer needs, pushing the product
towards the consumers
Marketing: Product pull, long-term focus on satisfaction of customer needs, high focus on
stimulation of demand, we want the consumers to want the product.
MARKETING SALES
Long-term satisfaction of needs Short-term satisfaction; part of the
value: delivery process, as opposed to
designing and development of
customer value processes??
Greater input into customer design of Lesser input into customer design of
offering ?? offering ??
, High focus on stimulation of demand Focus on meeting existing demand
See table 1.2 in pwp and in book
ACQUISITION VS RETENTION
Retention marketing = focused on maximizing the value of existing customers, rather than
acquiring new customers. You want to keep them happy and loyal.
Acquisition marketing = focused on expanding the customer base
TIP OF THE ICEBERG
You don’t see everything, we see advertising/ publicity, sales
➔
ADVERTISING/ SALES Tip of the iceberg
PUBLICITY
PRICING PRODUCT MARKET RESEARCH bodem
CONCEPTION
CHOICHE + TIMING CHOICHE + TIMING POSITION Onder water
MARKETS SEGMENTS SEGMENTS
= niet zo belangrijk
1.6 what do marketers do?
Figure 1.2
->placing the customer at the center of a company’s operations
- generate customer insights
- Develop marketing strategy
Marketing within organizations
°puts customers first, enhance a firm relationship with its customers
°CEO’s with marketing background are better than normal CEO’s, have better overall reputation
°Marketing is present in all departments of an organization, bc all departments play a role in
creating, delivering, satisfying customers
°Marketers do not control all the marketing mix elements (P,P,P,P)