Marketing
➔ 1/20: making the assignments
1. Marketing Principles and Practice
1.1 What is marketing?
What do I have to offer (= selling) <-> what does my customer want/need (=marketing)
AMA= American marketing association (definition)
marketing is a social and managerial process (and an activity) by which individuals and groups obtain
what they need and want through creating and exchanging products and value with others.
Business context: to build and maintain profitable customer relationships.
exchange is the act of obtaining a desired object from someone by offering something in return.
- Min. two parties
- Each must hold something of value to offer
- Parties must want to deal with each other
- → creates value, gives people more consumption choices or possibilities
Customer value: the consumer’s assessment of the product’s overall capacity to satisfy his or her
needs → received value!!
Economics: reduce to utility (value is much more than utility) <-> marketing: create emotional
experiences
Value example:
- Driving an electric car:
Practical value alone doesn’t
• Benefits: no more gas, less pollution, tax break, ….
Explain why
• Costs/drawbacks: the utility cannot fully explain the price
➔ Perceived value
- British Royal mail: prior stamp
Create value, create market orientation
MARKET ORIENTATION:
- Organization-wide belief in delivering customer value
- Understanding consumer needs even better than
consumers themselves do
- Creating products that meet existing and latent
needs, now or in future
Customer orientation: customer first
Competition orientation: stay ahead, work off their ideas, …
You need coordination between.
Interfunctional coordination: work as a whole
→ long term profit focus
Customer centricity is also
➔ Not trying to please ALL customers
Not keep pushing, not everything is for everyone, think about a target audience
More expensive for a select group, eg. Amazon prime (1/4)
➔ Fulfilling needs in a profitable way
[Documenttitel]
,MARKETING INTELLECTUAL ROOTS:
1. Industrial economics influences (supply/ demand, theories of income distribution, monopoly,
competition, …)
2. Psychological influences (consumer behavior, motivation research, persuasion, ...)
3. Sociological influences (how groups behave (culture, class, …), how communication passes
through opinion leaders, …)
4. Anthropological influences (researching consumer behavior)
5. Computer science influences (digitization, apps, …)
THE DEVELOPMENT OF MARKETING:
Production (demand > supply) period >-> sales (create demand, advertising) period -> marketing
period (customer needs first) -> societal marketing period (impact on the society, positive
contribution) evolution
Not only individuals.
Differences between sales and marketing?
TIP of the iceberg… -> ‘the aim of marketing is to make selling superfluous ‘(marketing is underneath
surface, strategy, making a product that will sell itself) -> value for the people who is intended
Example.
Zara vs Benetton: zara -> high
fashion, new collection, change their
collection (FOMO), … we want new
clothes on a regular basis. (Not only
the advertising, good strategy.)
➔ Part of a success, strategy,
understanding what people
are looking for
Benetton: shocking
advertising, attention at the
advertising not the NEW collection
1.2 Marketing: application and relevance
What marketing apply to?
1) Physical products
2) Services
3) Retail
4) Experiences
5) Events
6) Film, music & theater
7) Places (vacation, live, work, …) -> they need to attract business, tourists, …
8) Ideas
9) Charities and non-profits (example: ice bucket challenge -> awareness)
10) People (got elected because of media, (marketing) ,… ) example: Donald Trump
CONCLUSION: Not only physical
➔ Marketing applies anywhere ‘buyers’ have a choice
[Documenttitel]
, 1.3 the marketing processes
A functional map for marketing: (core + technical + behavior a lot of different competencies)
Marketing as exchange
Marketer Exchange Market
Industrial Economic goods & services
Customers
organisation
Monetary payment
Value
Organisation Customers
Value
Value
Organisation Stakeholders
Value
Co-creation
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Marketing as exchange
Marketing is not only for industrial but also for universities, … (we wouldn’t be here without
marketing)
Stakeholders (= belanghebbenden): parents, neighbors (noise), government (financial support),
companies (recommendation) ….
-> anyone who has an impact/interest in the organization
What can customers and other stakeholders bring of value, other than purchases?
- You talk about it (recommendations)
- Share experiences
- Feedback
- Loyalty
Evolve to co-creation: work with the stakeholders
Value of the costumers: eg. students: give good recommendations, share
experiences, feedback, loyalty
- The Consumer Goods Perspective - Bucklin (1963) defined
consumer goods as convenience goods (purchased frequently,
minimum effort), shopping goods (purchased selectively), or speciality goods (purchased
highly selectively). Examples of consumer goods industries include the retail car market, the
luxury goods market, and multiple retail groceries.
- The Services Perspective - Services marketing thinkers suggested that the intangible
performance-dependent nature of services substantially affected the way they should be
marketed (Shostack, 1977).
- The Business-to-Business Perspective - B2B marketing is different from consumer marketing
because the customer focus is a professional buyer within a business rather than an
individual per se.
The marketing processes
The customers are King
Understand marketplace/customer needs
➔ design customer-driven marketing strategy
➔ construct/integrated marketing programme create value/build relationships
➔ build profitable relationships/ create customer delight
[Documenttitel]
, ➔ capture value from customers to create profits and customer equity => receive value from
customers in return
Maslow’s pyramid of needs
→ everyone shares the same basic needs
1) Understand marketplace/ customer needs
Needs are key :
- Solution to a need, rather than focusing on just
product
- Don’t focus only on wants, but underlying
needs (underlying needs > wants)
- Look beyond attributes → Create brand
meaning / experiences
- (ex. why do we pay more for Absolut vodka ipv colruyt?) → because of the meaning of the
brand, nice bottle
Example taxi: you want to go from A to B and don’t want to use your car
We try to create experiences.
Ex. ING: knows how popular music, football, … is in Belgium; they sponsor the festivals -> locker
system: if you have a register (e-mail dresses) it’s for free.
2) Market strategy
Strategy = STP (segmentation, targeting and positioning)
1. Selecting a target market: market segmentation -> target marketing Who is our costumer?
(ex. Businessman, families… )
2. Value proposition (-> why should costumers buy our brand?)
- Differentiation
- Positioning
- Ex. Red bull (energy), Volvo (safety), …
triple value proposition:
→ not enough to think about the (1) practical benefits
- (2) Societal benefit: how does this brand help me make a
difference in the world?
- (3) Tribal benefit: how does this brand connect me to a
community that shares my values, hopes and aspirations?
Ex. Value proposition: high quality clothing, showing the societal
benefit (local groups) → they will donate 100% but people are
wearing the brand so success for them also.
Eg. Patagonia: high quality clothing and good for the environment,
donating black Friday profit to grassroots environmental groups
3) Marketing programmer
Translate strategy into Marketing mix
4 P’s: promotion, place, product, price
→ start from the company perspective ex. The promotion we initiate, …
➔ Translate to 4’c perspective
- The product -> customer
- The price -> cost (cost: other things than only the price)
[Documenttitel]
