Summary
Summary - Marketing
- Course
- Institution
This document includes notes from class and the information from the slides. By studying this summary, I made, I got 18/20.
[Show more]
Seller
Follow
larabutti9
Content preview
MARKETING FOR BUSINESS ECONOMICS1. To define marketing and understand steps in the marketing process
2. To understand the importance of understanding the marketplace and customer needs
3. To identify key elements of a customer- value driven marketing strategy
4. To discuss customer relationship management and what it entails for both customers
as well as organizations
5. To be aware of major trends in the marketing landscape
What is marketing?
Marketing is the process by which companies engage customers, build strong customer
relationships, and create customer value in order to capture value from customers (eg,
profits) in return
- also about anticipating requirements: “If I had asked people what they wanted, they
would have said faster horses” - Henry Ford
- ‘Value creation & value appropriation’ (mizik & jacobson, 2003 JM)
- acquiring new customers
- retaining existing customers
What is marketing not?
● Marketing >< Sales
Marketing Sales
Focus on long-term satisfying of Focus on short-term satisfying of
customer needs customer needs
Based to a larger extent on Based to only a limited extent on
customer input in designing the customer input in designing the offering
offering (co-creation)
Puts the focus on stimulating Rather than focusing on stimulating
demand demand, it tends to focus more on
satisfying existing demand
● Marketing >< Advertising
● Marketing is redundant in times of economic crisis
○ one of the first mistakes is cutting back on your marketing budget during crisis
● Marketing is not about just selling products
○ political election campaign, for a city, H&M is marketing for a chain store
● Marketing is also for non-profit organizations
○ not just ‘profit’ as a central goal
, ● Marketing as ‘exchange’ → a two way dyadic process
○ the fire service: fire protection and emergency planning to public
○ the public: public funds and cooperation
○ doesn’t necessarily imply merely paying a price (money)
→ Note: value can only be created by co-creation between supplier and consumer
value proposition (supplier) + value in use (upon correct usage, satisfying
one’s needs)
Short-term customer wants vs. long-term customer
well-being
societal awareness in promoting unhealthy, unethical
consumption of products
The marketplace and customer needs
● The Marketing Process
1. Understand the marketplace, customer needs and wants } for custm
2. Design a customer-driven marketing strategy
3. Construct an integrated marketing programme
4. Build profitable relationships and create delight
5. Capture value from customers to create profit and customer equity } from cust
● Customer need, wants and demands
○ marketing myopia
■ Being short-sighted
■ take a step back and look at the basis of your product, what the
customer actually needs
■ “in the factory, we make cosmetics; in the store, we sell hope”
■ ‘Better Mousetrap Fallacy’
○ Needs (basic part of the human makeup), Wants (human needs shaped by
culture; american wants a BigMac, belgian fries), Demands (wants and
needs backed up by buying power)
● Market offerings - Products, Services and experiences
○ Products, services, places, organizations, information, ideas offered to a
market to satisfy a need or want
■ a Market: all actual and potential buyers of that marketing offer
○ How do we get our product to the final user?
■ relations between suppliers and companies, companies and marketing
intermediaries,... must be developed and managed to create customer
value and profitable customer relationships
A customer value-driven marketing strategy
,what is valuable depends on which groups you are targeting
segmentation → targeting → positioning
Marketing Management = the art and science of choosing target markets and building
profitable relationships with them
Marketing Management Orientations = concepts under which organizations design and
carry out their marketing strategies to engage target customers and build profitable
relationships with them
> Production Concept
making production more efficient (1900s, Henry Ford)
> Product Concept
make product innovative, better quality, performance (1915)
> Selling Concept
selling more and efficiently (1930 first self-service supermarket)
> Marketing Concept
think more about what customers need, and start from there (1960)
> Societal Marketing Concept (1975 - environment)
An integrated marketing plan
how we move from customer value thinking to strategically segmenting the market, choosing
a target segment, looking at what type of positioning i can get in the mind of those customers
=> high/strategic level
Now, how do we apply those in our marketing plan?
● The Marketing Mix
○ Product
○ Price
○ Promotion
○ Place
● Dacia: democratic price, you get what you’re promised, functional
● Four Ps to 4 Cs
○ Product -> Consumer needs
○ Price -> Cost for consumer
○ Place -> Convenience
○ Promotion -> Communication
Engaging customer and managing customer relationships
gaining and keeping customers (telenet with packages, year contracts); you’ll need partners
in the value chain and in the marketing system to make sure that you can deliver the
promised product
CRM = overall process of building and maintaining profitable customer relationships by
delivering superior customer value (that is superior to what competitors offer)
customer satisfaction: customer gets what they expected; product’s perceived
performance matches a buyer’s expectations
Customer-perceived value = the trade off value between all the benefits and all the costs of
a market offering relative to those of competitive offerings
> Promise what you can provide, do not overpromise!
● CRM
○ Important to know our customers: Data
, ○ Relevant targeting
○ Loyalty programs
● Customer Engagement
○ from transaction- to relationship-orientation
○ Customer engagement marketing = making the brand a meaningful part of
consumers’ conversations and lives by making direct and continuous
involvement in shaping brand conversations, experiences and community
○ Consumer-generated marketing = consumers are playing an increasing role
in shaping their own brand experiences and those of other consumers (invited
and uninvited reviews/opinions)
■ how do you deal with really bad experiences of consumers
○ Customer life value: all purchases a customer makes over a lifetime
○ Customer equity: total customer lifetimes values of all the company’s current
and potential customers
● CLV Exercise
a. 1 eur X 52 weeks = 52 eur
b. 2 X 1 eur X 52 weeks = 104 eur
c. 52 + 104 = 156 eur
● Customer Relation Groups (not reviewed)
Capturing value from customers
The changing marketing landscape
Multiple Choice Questions on this class
- The four Ps of marketing are?
- Using marketing in schools, hospitals, musea is an example of
- non-profit organisations
- The fact that gin distilleries transformed their business to start using alcohol
production to make alcohol gel for disinfecting the hands (because there was a
shortage)
- production concept
- Ever more DIY store chains offer special customer cards in which the customer can
scan at checkout to get points and advantages
- customer loyalty
21/02 Marketing Strategy & Marketing Environment
Chapter 2: Defining marketing and the marketing process
Chapter 3: Analyzing the marketing environment
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller larabutti9. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.34. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
80796 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now