Summary Marketing
Ch.1: Marketing: creating customer value & engagement
Def. Marketing (by Philip Kotler): Marketing is the set of activities by which companies acquire and
engage customers, build strong customer relationships, and create customer value in order to
capture value from customers in return.
à key elements: 1) enganging customers and
2) managing profitable customers relationships
à goals: 1) attract new customers (by promising value)
2) keep and grow existing customers (by delivering promised value)
3) help drive company profitability (by capturing value)
Marketing ¹ Sales
-> marketing is long-term <-> sales is short-term
Marketing ¹ Avertising
-> advertising is a small piece of marketing
The Marketing Process: à
Ch 1.2 The marketplace & customer needs
Needs, wants and demands
à needs: States of felt deprivation, feeling of something missing, tension current and ideal state, eg.
food, water, …
à marketing myopia: an approach to marketing that focuses on the product and short-term needs of
the business, rather than long-term needs of customers.
à Better mousetrap: a better version of a product proven to have a huge demande, it’s fallacy is
believing that a better version will always be a succes.
à wants: needs shaped by culture and personality, needs get specific, a need descibed as an object
that will satisfy those needs, eg. A certain smartphone, …
à demands: wants backed by buying power, depends on willingness to pay, market condictions, and
affordability, eg. An iPhone, luxury vacation, …
Market offerings: products, services and experiences
à market offerings: everything to satisfy a need/ want that is available on the market, eg. Product,
service, experience, …
a market = all actual and potential buyers of a product/ service/ …
à marketing system : all parties in the system adds value and are in
relation with each other à
1
,Ch 1.3 A customer value-driven marketing strategy
How to design a customer value-driven marketing strategy
1) Selecting customers to serve (STP Ch 7)
2) Choosing a value proposition (STP Ch 7)
3) Marketing management orientations
Def. Marketing management: the art & science of choosing target markets and building profitable
relationships with them.
Marketing orientations
Def. ^ = marketing management concepts: concepts under which organizations design and carry out
their marketing strategies to engage target customers and build profitable relationships with them.
- Production concept (production)(1900) Old
- Product concept (quality)(1915)
- Selling cncept (sales & marketing)(1930)
- Marketing concept (customer needs)(1960)
- Societal marketing concept (customer needs & environment) New
• Production concept:
à thinks that companies who produce effeciently will automaticaly have succes in the market
à focusses on improving production & distribution efficiency
à demand > supply + product available & highly affordable
à ! marketing myopia !
Eg. Shein, McDonalds, Amazonbasics, …
• Product concept:
à thinks customers need product quality
à products with best quality, performance, innovative features
à continous product improvements
à ! marketing myopia + better mousetrap fallacy !
Eg. iPhone, Dyson Airwrap, …
• Selling concept:
à large-scale selling and promotion efforts to give a push to customers
à focusses on aggressive selling & existing products(! Marketing myopia !)
à selling unsought goods, product we don’t think of buying
Eg. Life insurance, fire extinguisher, …
• Marketing concept:
à from the outside => in perspective
à focusses on the customer needs => happy customers = profit
à delivers satisfaction better than competition
à adding value is key
Eg. Netflix, Disney(land), …
• Societal marketing concept:
à = marketing concept version Plus/Pro
à focusses on ST customers wants & LT customers well-being
Eg. Carrots at McDo, reusing towels at hotels
2
, Ch 1.4 An integrated marketing plan
From marketing strategy to action
Def. marketing mix: a set of marketing tools the firm uses to implement its marketing strategy, it’s
used to work tactically, consists of the 4 P’s of marketing and should work together.
4 P’s: - Product: a need-satisfying market offering,
- Price: how much we charge for the offering,
- Place: how/ where the offering is available,
- Promotion: communicate about the offering, the core message.
Ch 1.5 Engaging customers & managing customer relationships
Customer Relationship Management (CRM)
Def. ^: the overall process of building & maintaining profitable customer relationships by delivering
superior customer value & satisfaction
à they use data to get to know the customers, and enhance good/ personalized services
à will target specific persons and/or location
à uses loyalty programs so satisfied customers can give the company a larger share of their business
Customer-perceived value: the customer’s evaluation of the difference between all the benefits and
all the costs of a market offering, relative to those of competitive offerings -> changes between customers
Customer satisfaction: the degree to which a product’s preceived performance matches a buyer’s
expectations + how we deliver the products
Expextancy (des)cofirmation theory: P(erformance) <-> E(xpectation)
- P = E è satisfied
- P < E èdissatisfied
- P > E è highly satisfied or delighted
à do not overpromise, rather underpromise and overdeliver
Customer engagement
Def. ^ marketing: making the brand a meaningful part of customers’ conversations & lives by directly
& continuously involving customers in shaping brand conversations, experiences, and community
à marketing evolved: transaction-oriented -> relationship-oriented
à customer relationship management is more than stimulating (repeat) purchases
Consumer-generated marketing
Def. ^: brand exchanges created by consumers themselves, invited and uninvited, where consumers
increasingly shape their own and others’ brand experiences
3
Ch.1: Marketing: creating customer value & engagement
Def. Marketing (by Philip Kotler): Marketing is the set of activities by which companies acquire and
engage customers, build strong customer relationships, and create customer value in order to
capture value from customers in return.
à key elements: 1) enganging customers and
2) managing profitable customers relationships
à goals: 1) attract new customers (by promising value)
2) keep and grow existing customers (by delivering promised value)
3) help drive company profitability (by capturing value)
Marketing ¹ Sales
-> marketing is long-term <-> sales is short-term
Marketing ¹ Avertising
-> advertising is a small piece of marketing
The Marketing Process: à
Ch 1.2 The marketplace & customer needs
Needs, wants and demands
à needs: States of felt deprivation, feeling of something missing, tension current and ideal state, eg.
food, water, …
à marketing myopia: an approach to marketing that focuses on the product and short-term needs of
the business, rather than long-term needs of customers.
à Better mousetrap: a better version of a product proven to have a huge demande, it’s fallacy is
believing that a better version will always be a succes.
à wants: needs shaped by culture and personality, needs get specific, a need descibed as an object
that will satisfy those needs, eg. A certain smartphone, …
à demands: wants backed by buying power, depends on willingness to pay, market condictions, and
affordability, eg. An iPhone, luxury vacation, …
Market offerings: products, services and experiences
à market offerings: everything to satisfy a need/ want that is available on the market, eg. Product,
service, experience, …
a market = all actual and potential buyers of a product/ service/ …
à marketing system : all parties in the system adds value and are in
relation with each other à
1
,Ch 1.3 A customer value-driven marketing strategy
How to design a customer value-driven marketing strategy
1) Selecting customers to serve (STP Ch 7)
2) Choosing a value proposition (STP Ch 7)
3) Marketing management orientations
Def. Marketing management: the art & science of choosing target markets and building profitable
relationships with them.
Marketing orientations
Def. ^ = marketing management concepts: concepts under which organizations design and carry out
their marketing strategies to engage target customers and build profitable relationships with them.
- Production concept (production)(1900) Old
- Product concept (quality)(1915)
- Selling cncept (sales & marketing)(1930)
- Marketing concept (customer needs)(1960)
- Societal marketing concept (customer needs & environment) New
• Production concept:
à thinks that companies who produce effeciently will automaticaly have succes in the market
à focusses on improving production & distribution efficiency
à demand > supply + product available & highly affordable
à ! marketing myopia !
Eg. Shein, McDonalds, Amazonbasics, …
• Product concept:
à thinks customers need product quality
à products with best quality, performance, innovative features
à continous product improvements
à ! marketing myopia + better mousetrap fallacy !
Eg. iPhone, Dyson Airwrap, …
• Selling concept:
à large-scale selling and promotion efforts to give a push to customers
à focusses on aggressive selling & existing products(! Marketing myopia !)
à selling unsought goods, product we don’t think of buying
Eg. Life insurance, fire extinguisher, …
• Marketing concept:
à from the outside => in perspective
à focusses on the customer needs => happy customers = profit
à delivers satisfaction better than competition
à adding value is key
Eg. Netflix, Disney(land), …
• Societal marketing concept:
à = marketing concept version Plus/Pro
à focusses on ST customers wants & LT customers well-being
Eg. Carrots at McDo, reusing towels at hotels
2
, Ch 1.4 An integrated marketing plan
From marketing strategy to action
Def. marketing mix: a set of marketing tools the firm uses to implement its marketing strategy, it’s
used to work tactically, consists of the 4 P’s of marketing and should work together.
4 P’s: - Product: a need-satisfying market offering,
- Price: how much we charge for the offering,
- Place: how/ where the offering is available,
- Promotion: communicate about the offering, the core message.
Ch 1.5 Engaging customers & managing customer relationships
Customer Relationship Management (CRM)
Def. ^: the overall process of building & maintaining profitable customer relationships by delivering
superior customer value & satisfaction
à they use data to get to know the customers, and enhance good/ personalized services
à will target specific persons and/or location
à uses loyalty programs so satisfied customers can give the company a larger share of their business
Customer-perceived value: the customer’s evaluation of the difference between all the benefits and
all the costs of a market offering, relative to those of competitive offerings -> changes between customers
Customer satisfaction: the degree to which a product’s preceived performance matches a buyer’s
expectations + how we deliver the products
Expextancy (des)cofirmation theory: P(erformance) <-> E(xpectation)
- P = E è satisfied
- P < E èdissatisfied
- P > E è highly satisfied or delighted
à do not overpromise, rather underpromise and overdeliver
Customer engagement
Def. ^ marketing: making the brand a meaningful part of customers’ conversations & lives by directly
& continuously involving customers in shaping brand conversations, experiences, and community
à marketing evolved: transaction-oriented -> relationship-oriented
à customer relationship management is more than stimulating (repeat) purchases
Consumer-generated marketing
Def. ^: brand exchanges created by consumers themselves, invited and uninvited, where consumers
increasingly shape their own and others’ brand experiences
3
