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BUS2010F Notes
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BUS2010F NotesKathryn Wahl
What is marketing?
(1) The process by which firms create value for customers and build strong relationships in
order to capture value from customers in return.
(2) The activity, set of institutions and processes for creating, communicating, delivering,
and exchanging offerings that have value for customers, clients, partners and society at
large.
(3) Anticipating and satisfying consumer needs by means of mutually beneficial exchange
processes and doing so profitably and more effectively than competitors by means of
efficient managerial processes.
Marketing Process
o Understand the marketplace
o Design a customer-driven marketing strategy
o Construct an integrated marketing programme
o Build profitable relationships
o Capture value from customers
The Marketplace
o Market offerings
o Customer needs and wants
o Customer value and satisfaction
o Exchange and relationships
o Markets
1. Marketing Offerings
o Products – the physical products sold and marketed by business.
o Services – activities or benefits offered for sale that are essentially intangible and
do not result in the ownership of anything.
o Experiences – enhancing a product or service offering with an experience to
increase product value and consumer satisfaction.
1
, Modern Marketing Systems
2. Designing a customer driven marketing strategy
MARKETING MANAGEMENT: the art and science of choosing target markets and
building profitable relationships with them.
Marketing managers aim to find, attract, keep and grow target customers by creating,
delivering and communicating superior customer value.
They choose which consumers the business will serve and how best to serve them.
o Select customers to serve.
• This leads to the first 2 steps of STP: Segmentation and Targeting.
o Choose a value proposition.
rd
• This leads to the 3 step of STP: Positioning/Differentiation.
o Employ a marketing management orientation (throughout the business).
• Marketing strategies will be formulated around the chosen marketing
management orientation. Determines how value will be delivered to
customers.
Marketing Management orientations
The Production Concept
The idea that consumers will favour products that are available and highly affordable,
and that the firm should therefore focus on improving production and distribution
efficiency.
The focus on mass production.
The Product Concept
2
, The idea that consumers will favour products that offer the most quality, performance
and features, and that the firm should therefore devote it energy to making continuous
product improvements.
The focus on product innovation.
The Selling Concept
The idea that consumers will not buy enough of the firm’s products unless it undertakes
a large-scale selling and promotion effort.
The focus on product promotion.
The Marketing Concept
The idea that achieving a firm’s goals depends on the needs and wants of target markets
and delivering the desired satisfactions better than competitors do.
The focus on creating customer value.
The Societal Marketing Concept
A principle of enlightened marketing that holds that a firm should make good marketing
decisions by considering consumer’s wants, the firms requirements, consumer's long-
run interests and society’s long- run Interests.
The focus on being a sustainable business – meeting the triple bottom line.
3. Construct an integrated marketing system
An integrated marketing program details how value will actually be delivered to the
target customers. It turns marketing strategies into marketing tactics (actions).
To do this, marketers use the MARKETING MIX – 4 P’s
4. Build Profitable relationships
o Customer Relationship Management (CRM): The overall process of building
and maintaining profitable customer relationships by delivering superior
value and satisfaction.
o Partner Relationship Management: Working closely with partners in other
departments of the firm and outside the firm to jointly bring greater value to
customers.
3
, 5. Capture value from customers
This involves capturing value from customers in the form of current and future sales,
market share and profits.
- Want to create customer loyalty and retain them for future profits.
Customer Lifetime Value (CLV): the value of the entire stream of purchases that a
customer would make over a lifetime of patronage.
Customer Equity: the total combined discounted CLV of all the firm’s customers.
Strategic planning:
The long-term process of developing and maintaining a strategic fit between the firm’s goals
and capabilities and it’s changing marketing opportunities in the business environment.
1. Defining a market orientated mission
o All firms have a Mission Statement, a statement of the firm’s overall purpose.
o These mission statements are often influenced by the firm’s marketing
management orientation.
o As marketers, we want the marketing concept as our marketing management
orientation.
o This means defining the firm based on the value it brings not the products it sells
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