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01principles of Marketing

1. The document introduces marketing concepts and the marketing process. It defines marketing as creating value for customers to build strong customer relationships and capture value in return. 2. The marketing process has three steps - understanding what customers want, providing for those wants, and achieving organizational goals. It involves understanding customers, creating value for them, and building relationships. 3. The document discusses key marketing concepts like customer needs, market offerings, value and satisfaction, exchanges and relationships, and markets. It outlines different orientations like production, product, selling, and marketing concepts that guide strategy.

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Egemen Ertugan
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66 views5 pages

01principles of Marketing

1. The document introduces marketing concepts and the marketing process. It defines marketing as creating value for customers to build strong customer relationships and capture value in return. 2. The marketing process has three steps - understanding what customers want, providing for those wants, and achieving organizational goals. It involves understanding customers, creating value for them, and building relationships. 3. The document discusses key marketing concepts like customer needs, market offerings, value and satisfaction, exchanges and relationships, and markets. It outlines different orientations like production, product, selling, and marketing concepts that guide strategy.

Uploaded by

Egemen Ertugan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Introducing Marketing

Unit one
Learning Objectives
1. Define marketing and outline the steps in the marketing process.
2. Explain the importance of understanding customers and the marketplace,
and identify the core marketplace concepts.
3. Identify the key elements of a customer-drive marketing strategy and
discuss the marketing management orientations that guide marketing
strategy.
1. Introduction
a. The task of marketing
The task of marketing is to create valuevalue for customers in the form of
products that are solutions to their problems, value for organizations in
reaching their goals and value as a rise in living standards for the whole
society.
b. Marketing defined
Marketing is the process by which companies create value for customers and
build strong customer relationships in order to capture value from customers
in return.
Marketing continues throughout a products life, trying to find new customers
and keep current customers by improving product appeal and performance,
learning from product sales results and managing repeat performance.
2. The marketing process
a. The marketing process comes in three steps:

Finding out what the customers want


Providing those wants
Achieving organizational goals

b. The marketing process ensures that

Companies work to understand consumers, create customer value, and


build strong customer relationships.

By creating value for consumers, they in turn capture value from


consumers in the form of sales, profits, and long-term customer equity.

3. Understanding the Marketplace and Consumer Needs


There are five core customer and marketplace concepts: 1) needs, wants,
and demands; 2) market offerings; 3) value, satisfaction, and quality; 4)
exchanges, transactions, and relationships; and 5) markets and the
marketing system.
c. Needs, wants, and demands
Human needs are states of felt deprivation. They include basic physical
needs, social needs, and individual needs. Abraham Maslow describes
human needs in a hierarchy:

Wants are the form human needs take as they are shaped by culture and
individual personality.
When backed by buying power, wants become demands. Given their wants
and resources, people demand products with benefits that add up to the most
value and satisfaction.
Outstanding companies go to great lengths to learn about and understand
customers needs, wants, and demands. They conduct consumer research
and analyse mountains of customer data.
The market offering products, services, and experiences
i. Companies address needs by putting forth a value proposition.
The value proposition is fulfilled through a market offering some combination of products, services, information, or
experiences offered to a market to satisfy a need or want.
ii. Marketing offerings are not limited to physical products. They
also include services and other entities, such as persons, places,
organisations, information, and ideas.
iii. Sellers who are so taken with their products that they focus only
on existing wants and lose sight of underlying customer needs
suffer from marketing myopia.
iv. By orchestrating several services and products, companies
create brand meaning and experiences for consumers.
b. Value, satisfaction and quality
i. Customers form expectations about the value and satisfaction
that various marketing offers will deliver and buy accordingly.
ii. Marketers must be careful to set the right level of expectations.
If they set expectations too low, they may satisfy those who buy

but fail to attract enough buyers. If they raise expectations too


high, buyers will be disappointed.
iii. Customer value and satisfaction are key building blocks for
developing and managing customer relationships.
iv. Customer satisfaction depends on a products perceived
performance in delivering value relative to a buyers
expectations.
c. Markets and the marketing system
i. A market is the set of actual and potential buyers of a product.
ii. Marketing means managing markets to bring about profitable
customer relationships.
iii. Buyers also carry on marketing. Consumers do marketing when
they search for the goods they need at prices they can afford.
Company purchasing agents do marketing when they track
down sellers and bargain for good terms.
d. Designing a Customer-Driven Marketing Strategy
We define marketing management as the art and science of choosing
target markets and building profitable customer relationships with them.
The marketing managers aim is to find, attract, keep, and grow target
customers by creating, delivering, and communicating superior customer
value.
a. Selecting customers to serve
i. The company must first decide whom it will serve. It does this by
dividing the market into segments of customers (market
segmentation) and selecting which segments it will go after
(target marketing).
ii. Marketing management is customer management and demand
management.
b. Choosing a value proposition
i. The company must also decide how it will serve targeted
customershow it will differentiate and position itself in the
marketplace.
ii. A companys value proposition is the set of benefits or values it
promises to deliver to consumers to satisfy their needs.
iii. Value propositions differentiate one brand from another and
answer the question, Why should I buy your brand rather than
a competitors?
c. Marketing management orientations

There are six alternative concepts under which organisations design


and carry out their marketing strategies: 1) production, 2) product, 3)
selling, 4) marketing, 5) societal marketing, and 6) sustainable
marketing.
i. The production concept holds that consumers will favor products
that are available and highly affordable. Management focuses on
improving production and distribution efficiency. The production
concept can lead to marketing myopia.
ii. The product concept holds that consumers will favor products
that offer the most in quality, performance, and innovative
features. Marketing strategy focuses on making continuous
product improvements. The product concept can also lead to
marketing myopia.
iii. The selling concept holds that consumers will not buy enough of
the firms products unless it undertakes a large-scale selling and
promotion effort. This concept is typically practiced with
unsought goodsthose that buyers normally do not think of
buying. Most firms practice the selling concept when they face
overcapacity.
iv. The marketing concept holds that achieving organisational goals
depends on knowing the needs and wants of target markets and
delivering the desired satisfactions better than competitors do.
This concept is customer centered.
v. The societal marketing concept holds that marketing strategy
should deliver value to customers in a way that maintains or
improves both the consumers and the societys well-being.
vi. The sustainable marketing concept holds that an organisation
should meet the needs of its present consumers without
compromising the ability of future generations to fulfill their own
needs.
d. Building profitable customer relationships
i. Demand comes from two groups: 1) new customers and repeat
customers. It costs five times as much to attract a new customer
as it does to keep a customer. Keeping a customer also
maximises customer lifetime value.
e. Preparing an integrated marketing plan and programme
i. The companys marketing strategy outlines which customers the
company will serve and how it will create value for these
customers.
ii. Next, the marketer constructs a marketing programme that will
actually deliver the intended value to target customers.
iii. It consists of the firms marketing mix, the set of marketing tools
the firm uses to implement its marketing strategy.

iv. The major marketing mix tools are classified into four broad
groups, called the 4 Ps of marketing: product, price, place, and
promotion.

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