MARKETING (Eva Heeremans) – ppt (niet opgenomen!!)
Material: marketing (sixth edition)
Readings on blackboard – questions on exams about it
Working sessions!! The case will be online two weeks beforehand
Exam: given a case and you will need to answer open questions, multiple choice –
minimum of 18/30
CHAPTER 1: Marketing Principles and Practice
1.1 What is marketing?
= a social and managerial process by which individuals and groups obtain what they
need and want through creating and exchanging products and value with others
(exchanging is very important, never just one party)
In business context: To build and maintain profitable relationships with stakeholders
Primary goals: 1. Increase sales through aggressive promotion
2. Understand and meet customer needs to create value
3. Create advertisements for products
4. Ensure that products are cheaper than those of the competitions
B to b: business to business & b to c: business to costumer
Focussing on what the customer needs – it’s about perceptions and changing how
customers receive your product
Marketing applies to:
- Physical products ex. Cars, phones, …
- Services ex. ING, Uber Eats, …
- Retail = stores that sell goods to consumers (not to businesses) ex. Zara, amazon, …
- Experiences ex. Theme parks, monuments, …
- Events ex. Festivals, Olympic games, …
- Film, music, theatre ex. tv shows
- Places ex. Cities
- Ideas ex. Safety
- Charity & non-profit ex. De warmste week
- People ex. Elections (Trump)
Applies to anywhere buyers have a choice
1.2 Difference between costumer and consumer
Customer: buys the product ex. buying food
Consumer: the one that uses the product ex. eats the food
(can also be the same person)
,Buying roles
1.3 Market Orientation
= The organization-wide generation of market intelligence concerning to current and
future customer needs, distribution of the intelligence across the departments, and
organization-wide responsiveness to it
- Organization-wide belief in delivering customer value
- Create products to meet existing and latent need (Latent market = group of
potential customers who want/need a product/service that isn’t available yet)
Ex. Henry ford – people didn’t know they needed cars until they existed
Three main proponents of marketing orientation strategy
- Centre: customer centricity - focus of marketing isn’t on short term sales but on
building long term relationships with the customers – fulfilling needs in a
profitable way
- Customer orientation: understanding & satisfying the customer needs (and
changing them)
- Competitor orientation: anticipating on the competition to steal something
that they’re doing and finding out their weaks and strength to do it better
- Interfunctional coordination: different departments in the company working
together
Customer needs are subjective and different from person to person
segmenting the market and target them
1.5 Differences between sales and marketing
Sales: focus on product push – short-term focus on satisfaction of customer needs
(persuade to buy)
Marketing: focus on product pull - long term focus on customer satisfaction* –
stimulation of demand
(increase brand awareness & give it a meaning)
* fulfilling expectations and put them right so that they are satisfied
,Acquisition vs retention: attract new customers vs keeping existing customers
Acquisition cost 6 times more than retention – so more focus on retention
Tip of the iceberg: what consumers see is only a fraction of
companies’ overall business strategies
‘The aim of marketing is to make selling superfluous’
Superfluous (overbodig) = product is that good that trying to convince
the customer is not needed
1.6 What do marketers do?
Placing the customer at the centre of a company’s operations & decision-making
processes
- Generate customer insights
- Develop marketing strategy
Marketers within organizations
- Marketing should enhance a company’s relationships with its customers
- Marketing is present in all aspects of an organization since all departments play a
role in creating, delivering, and satisfying customers
- Marketers do not control all the marketing mix elements
- CEOs with a marketing background outperform other CEOs from nearly all other
backgrounds when it comes to being socially responsible, inclusive, and having a
strong strategy and long-term vision
1.7 Marketing as exchange
Exchange = the act of getting a desired object from someone by offering something
in return
- At least two parties
- Each must hold something of value to offer
- Parties must want to deal with each other
Exchange creates value – gives people more consumptions choices or possibilities
- Exchange can be different in other contexts
Customer value = the consumer's rating of the product's overall ability to meet
his or her needs
= Ratio between perceived (= waargenomen) benefits and costs*
(both monetary & non-monetary – also based on personal judgment,
feelings, …)
* a cost can also be a sacrifice ex. driving long to get the product
There should be more benefits then sacrifices for customers for it to have value
Value is different for every person and is subjective (context and person):
- Objective value = actual/functional worth
- Perceived/subjective value = what the costumers thinks it’s worth
Ex. Apple phone
, Benefits: good camera
Costs: high price
Perceived value: dependent on the person buying the product
Outcomes of creating customer value:
- Repeat purchases
- Positive word-of-mouth (brand ambassadorship) – costumers give positive
feedback
- Customer loyalty and retention
- Growing market share
- Growing proportion of customer
- Building customer equity = combined lifetime value of all your customers
1.8 The marketing mix and the 4Ps
Promotion: communicating the unique benefits of your product & persuades
customers
Product: what the company has to offer (goods & services) to meet customer needs
Place: how and where the offering is delivered (stores, online, …)
Price: what the offering cost to the customer
1.9 the extended marketing mix
Physical evidence: proof of the service delivery
Process: how smooth the service/product is delivered ex. waiting at a hairdresser
People: employees & customer service ex. how friendly is the staff, helpful, …
personalization: tailoring product/services/communication to the specific needs of
the customers
ex. Your name at the top of the email, Starbuck that puts you name on the cup, …
context marketing: practice of delivering marketing messages at the right moment
& right platform based on their situation and behaviour
Key elements:
- Real-time data: information collected instantly from customers’ actions, locations or
online behaviour
- Personalization: Customizing marketing messages based on individual customer
preferences or history
- Relevance: Ensuring marketing content is relevant to the customer
- Timing: Delivering the message at the most appropriate moment
- Channel: platform or medium used to reach the customer
1.10 relationship marketing, service-dominant logic & co-creation
Relationship marketing = Shift from customer acquisition towards retaining
customers long-term by better management of customer relationships
- Not only building relationship with customer but also with stakeholders ex.
suppliers, press, …
- Important in mature industries = industries that have reached a stage where
growth has slowed down significantly ex. travel agencies, banking agencies
(Loyal customers are prepared to pay a price premium & are cheaper to promote to)
Material: marketing (sixth edition)
Readings on blackboard – questions on exams about it
Working sessions!! The case will be online two weeks beforehand
Exam: given a case and you will need to answer open questions, multiple choice –
minimum of 18/30
CHAPTER 1: Marketing Principles and Practice
1.1 What is marketing?
= a social and managerial process by which individuals and groups obtain what they
need and want through creating and exchanging products and value with others
(exchanging is very important, never just one party)
In business context: To build and maintain profitable relationships with stakeholders
Primary goals: 1. Increase sales through aggressive promotion
2. Understand and meet customer needs to create value
3. Create advertisements for products
4. Ensure that products are cheaper than those of the competitions
B to b: business to business & b to c: business to costumer
Focussing on what the customer needs – it’s about perceptions and changing how
customers receive your product
Marketing applies to:
- Physical products ex. Cars, phones, …
- Services ex. ING, Uber Eats, …
- Retail = stores that sell goods to consumers (not to businesses) ex. Zara, amazon, …
- Experiences ex. Theme parks, monuments, …
- Events ex. Festivals, Olympic games, …
- Film, music, theatre ex. tv shows
- Places ex. Cities
- Ideas ex. Safety
- Charity & non-profit ex. De warmste week
- People ex. Elections (Trump)
Applies to anywhere buyers have a choice
1.2 Difference between costumer and consumer
Customer: buys the product ex. buying food
Consumer: the one that uses the product ex. eats the food
(can also be the same person)
,Buying roles
1.3 Market Orientation
= The organization-wide generation of market intelligence concerning to current and
future customer needs, distribution of the intelligence across the departments, and
organization-wide responsiveness to it
- Organization-wide belief in delivering customer value
- Create products to meet existing and latent need (Latent market = group of
potential customers who want/need a product/service that isn’t available yet)
Ex. Henry ford – people didn’t know they needed cars until they existed
Three main proponents of marketing orientation strategy
- Centre: customer centricity - focus of marketing isn’t on short term sales but on
building long term relationships with the customers – fulfilling needs in a
profitable way
- Customer orientation: understanding & satisfying the customer needs (and
changing them)
- Competitor orientation: anticipating on the competition to steal something
that they’re doing and finding out their weaks and strength to do it better
- Interfunctional coordination: different departments in the company working
together
Customer needs are subjective and different from person to person
segmenting the market and target them
1.5 Differences between sales and marketing
Sales: focus on product push – short-term focus on satisfaction of customer needs
(persuade to buy)
Marketing: focus on product pull - long term focus on customer satisfaction* –
stimulation of demand
(increase brand awareness & give it a meaning)
* fulfilling expectations and put them right so that they are satisfied
,Acquisition vs retention: attract new customers vs keeping existing customers
Acquisition cost 6 times more than retention – so more focus on retention
Tip of the iceberg: what consumers see is only a fraction of
companies’ overall business strategies
‘The aim of marketing is to make selling superfluous’
Superfluous (overbodig) = product is that good that trying to convince
the customer is not needed
1.6 What do marketers do?
Placing the customer at the centre of a company’s operations & decision-making
processes
- Generate customer insights
- Develop marketing strategy
Marketers within organizations
- Marketing should enhance a company’s relationships with its customers
- Marketing is present in all aspects of an organization since all departments play a
role in creating, delivering, and satisfying customers
- Marketers do not control all the marketing mix elements
- CEOs with a marketing background outperform other CEOs from nearly all other
backgrounds when it comes to being socially responsible, inclusive, and having a
strong strategy and long-term vision
1.7 Marketing as exchange
Exchange = the act of getting a desired object from someone by offering something
in return
- At least two parties
- Each must hold something of value to offer
- Parties must want to deal with each other
Exchange creates value – gives people more consumptions choices or possibilities
- Exchange can be different in other contexts
Customer value = the consumer's rating of the product's overall ability to meet
his or her needs
= Ratio between perceived (= waargenomen) benefits and costs*
(both monetary & non-monetary – also based on personal judgment,
feelings, …)
* a cost can also be a sacrifice ex. driving long to get the product
There should be more benefits then sacrifices for customers for it to have value
Value is different for every person and is subjective (context and person):
- Objective value = actual/functional worth
- Perceived/subjective value = what the costumers thinks it’s worth
Ex. Apple phone
, Benefits: good camera
Costs: high price
Perceived value: dependent on the person buying the product
Outcomes of creating customer value:
- Repeat purchases
- Positive word-of-mouth (brand ambassadorship) – costumers give positive
feedback
- Customer loyalty and retention
- Growing market share
- Growing proportion of customer
- Building customer equity = combined lifetime value of all your customers
1.8 The marketing mix and the 4Ps
Promotion: communicating the unique benefits of your product & persuades
customers
Product: what the company has to offer (goods & services) to meet customer needs
Place: how and where the offering is delivered (stores, online, …)
Price: what the offering cost to the customer
1.9 the extended marketing mix
Physical evidence: proof of the service delivery
Process: how smooth the service/product is delivered ex. waiting at a hairdresser
People: employees & customer service ex. how friendly is the staff, helpful, …
personalization: tailoring product/services/communication to the specific needs of
the customers
ex. Your name at the top of the email, Starbuck that puts you name on the cup, …
context marketing: practice of delivering marketing messages at the right moment
& right platform based on their situation and behaviour
Key elements:
- Real-time data: information collected instantly from customers’ actions, locations or
online behaviour
- Personalization: Customizing marketing messages based on individual customer
preferences or history
- Relevance: Ensuring marketing content is relevant to the customer
- Timing: Delivering the message at the most appropriate moment
- Channel: platform or medium used to reach the customer
1.10 relationship marketing, service-dominant logic & co-creation
Relationship marketing = Shift from customer acquisition towards retaining
customers long-term by better management of customer relationships
- Not only building relationship with customer but also with stakeholders ex.
suppliers, press, …
- Important in mature industries = industries that have reached a stage where
growth has slowed down significantly ex. travel agencies, banking agencies
(Loyal customers are prepared to pay a price premium & are cheaper to promote to)
