MAKRETING PRINCIPLES
NOTE_WEEK 1 I CHAPTER 1: INTRODUCTION TO MARKETING
Marketing – engaging customers and managing profitable customer relationships
Goals of marketing
• Attract new customers by promising superior value
• Keep and grow current customers by delivering satisfaction
Step in the marketing process
Marketplace and Customer Needs
,Customer needs, wants and demands
Need – state of felt deprivation, includes physical (needs for food, clothing, warmth and safety), social
(needs for belonging and affection) and individual (needs for knowledge and self-expression)
Want – the form of human needs take as shaped by culture and individual personality
Demand – human wants that are backed by buying power
Marketing offering – a product that is combination of goods, services and experiences that can be offered to a
market to satisfy a need or want
Marketing myopia – the mistake of paying more attention to the specific products a company offers
than to the benefits and experience produced by these products (business see themselves as selling a
product, rather than providing a solution to a need)
Customer value and satisfaction
• Satisfied customers buy again and tell others about their good experiences
• Dissatisfied customers often switch to competitors and disparage the original products to
others
Exchange, transactions and relationship
Exchange – the act of obtaining a desired object from someone by offering something in return
Transaction – a trade between two parties that involves at least two things of value, agreed-upon
condition and a time and place of agreement
Relationship – looks at how to not only attract, but retain customers
# Exchange doesn’t always need to be based on money #
Markets – buyers who share a particular need or want that can be satisfied through exchange relationships,
which can be both actual buyer and potential buyers
Elements of modern marketing system
,Design a customer-driven marketing strategy
Marketing management – the art and science of choosing target markets and building profitable
relationships.
Two critical questions:
o What customers will we serve? (eg. Who is our target market?)
o How can we serve these customers best? (eg. What is our value proposition?)
Selecting customers to serve – decide who organization will serve by examining the various segments
available
• Marketers know they cannot serve all customers in very way with a signal market offering
• They know it is necessary to select customers they can serve well and profitably
Demand can be generated from:
- New customers (potential) and repeat customers (existing)
Marketing strategies may involve:
- Finding, increasing and retaining demand/ changing or reducing demand
# Products and services can be developed by thinking about the groups of customers (eg. Loreal) #
8 Types of demands
Negative demand – a major part of the market dislikes the product but yet they buy it
eg. Colgate, sensitive teeth (dental work where people don’t want problems with their teeth
and use preventive measure to avoid the same)
No demand – target consumers may be unaware of or uninterested in the product.
The marketing task is to find ways to connect the benefits of the product with the person’s natural
needs, puts a shocking to gain attention
eg. travel insurance (Smart travel – unexpected accident overseas, full recover), ambulance
insurance
Latent demand – Many consumers may share a strong need that cannot be satisfied by any existing product.
The marketing task is to measure the size of the potential market and develop effective products and
services that would satisfy the demand.
eg. Phone vs Smartphone (Samsung connected living 2018: this is family – solutions for
family whom has no time to communicate each other), Taxi vs Uber, Video conferencing vs
Phone calling
https://www.youtube.com/watch?v=35euFJ_SQec
, Declining demand – every organization, sooner or later, faces declining demand for one or more of its
products as consumers begin to buy the product less frequently or not at all.
The marketing task is to reverse the declining demand through creative marketing of the product
eg. CD player & IPod (Walkman, there was still a demand for the product but was a declining
demand), packaged drinking water (people have begun to prefer tap water as it is more
environmental friendly)
Irregular demand – Many organizations face demand that varies on a seasonal, daily or even hourly basis,
causing problems of idle or overworked capacity.
The marketing task is to find ways to alter the same pattern of demand through flexible pricing,
promotion and other incentives
eg. Umbrellas are not needed all year round, holiday in off peak, air conditioning sales down
in winter (Dairy milk – works irregular demand all the time, start to play with pricing and
offers)
https://www.youtube.com/watch?v=ZNRSHr3b4uA
Full demand – organization face full demand when they are satisfied with their volume of business changing
consumer preferences and increasing competition
eg. medicines (maintain influence on doctors)
Overfull demand – some organizations face a demand level that is higher than they can, or want to, handle.
The marketing task, called demarketing, requires finding ways to reduce the demand temporarily or
permanently. Demarketing aims not to destroy the demand but only to reduce its level, temporarily
or permanently
eg. energy companies (use different rate to reduce the consumption at peak times, corn
flakes (encourage consumption of other product if ingredients are not available)
Unwholesome demand – will attracted organised efforts to discourage their consumption.
The marketing task is to get people who like something to give it up, using such tools as fear
messages, price hikes and reduced availability
eg. Smoking, Road safety (Towards Zero, we all need to work together towards achieving a
zero tribe, through campaign which shows emotions/ impacts that breaks the thinking what is
acceptable)
https://www.rsc.wa.gov.au/About/Role-of-the-Commission/Towards-Zero-Strategy
The marketing organization’s value proposition – is the set of benefits or values that it promises to deliver to
customers to satisfy their needs/ should differentiate brands and position them in the marketplace
The proposition answers the customer’s question “Why should I buy your brand rather than
competitors?” (It could be product, service or campaign)
NOTE_WEEK 1 I CHAPTER 1: INTRODUCTION TO MARKETING
Marketing – engaging customers and managing profitable customer relationships
Goals of marketing
• Attract new customers by promising superior value
• Keep and grow current customers by delivering satisfaction
Step in the marketing process
Marketplace and Customer Needs
,Customer needs, wants and demands
Need – state of felt deprivation, includes physical (needs for food, clothing, warmth and safety), social
(needs for belonging and affection) and individual (needs for knowledge and self-expression)
Want – the form of human needs take as shaped by culture and individual personality
Demand – human wants that are backed by buying power
Marketing offering – a product that is combination of goods, services and experiences that can be offered to a
market to satisfy a need or want
Marketing myopia – the mistake of paying more attention to the specific products a company offers
than to the benefits and experience produced by these products (business see themselves as selling a
product, rather than providing a solution to a need)
Customer value and satisfaction
• Satisfied customers buy again and tell others about their good experiences
• Dissatisfied customers often switch to competitors and disparage the original products to
others
Exchange, transactions and relationship
Exchange – the act of obtaining a desired object from someone by offering something in return
Transaction – a trade between two parties that involves at least two things of value, agreed-upon
condition and a time and place of agreement
Relationship – looks at how to not only attract, but retain customers
# Exchange doesn’t always need to be based on money #
Markets – buyers who share a particular need or want that can be satisfied through exchange relationships,
which can be both actual buyer and potential buyers
Elements of modern marketing system
,Design a customer-driven marketing strategy
Marketing management – the art and science of choosing target markets and building profitable
relationships.
Two critical questions:
o What customers will we serve? (eg. Who is our target market?)
o How can we serve these customers best? (eg. What is our value proposition?)
Selecting customers to serve – decide who organization will serve by examining the various segments
available
• Marketers know they cannot serve all customers in very way with a signal market offering
• They know it is necessary to select customers they can serve well and profitably
Demand can be generated from:
- New customers (potential) and repeat customers (existing)
Marketing strategies may involve:
- Finding, increasing and retaining demand/ changing or reducing demand
# Products and services can be developed by thinking about the groups of customers (eg. Loreal) #
8 Types of demands
Negative demand – a major part of the market dislikes the product but yet they buy it
eg. Colgate, sensitive teeth (dental work where people don’t want problems with their teeth
and use preventive measure to avoid the same)
No demand – target consumers may be unaware of or uninterested in the product.
The marketing task is to find ways to connect the benefits of the product with the person’s natural
needs, puts a shocking to gain attention
eg. travel insurance (Smart travel – unexpected accident overseas, full recover), ambulance
insurance
Latent demand – Many consumers may share a strong need that cannot be satisfied by any existing product.
The marketing task is to measure the size of the potential market and develop effective products and
services that would satisfy the demand.
eg. Phone vs Smartphone (Samsung connected living 2018: this is family – solutions for
family whom has no time to communicate each other), Taxi vs Uber, Video conferencing vs
Phone calling
https://www.youtube.com/watch?v=35euFJ_SQec
, Declining demand – every organization, sooner or later, faces declining demand for one or more of its
products as consumers begin to buy the product less frequently or not at all.
The marketing task is to reverse the declining demand through creative marketing of the product
eg. CD player & IPod (Walkman, there was still a demand for the product but was a declining
demand), packaged drinking water (people have begun to prefer tap water as it is more
environmental friendly)
Irregular demand – Many organizations face demand that varies on a seasonal, daily or even hourly basis,
causing problems of idle or overworked capacity.
The marketing task is to find ways to alter the same pattern of demand through flexible pricing,
promotion and other incentives
eg. Umbrellas are not needed all year round, holiday in off peak, air conditioning sales down
in winter (Dairy milk – works irregular demand all the time, start to play with pricing and
offers)
https://www.youtube.com/watch?v=ZNRSHr3b4uA
Full demand – organization face full demand when they are satisfied with their volume of business changing
consumer preferences and increasing competition
eg. medicines (maintain influence on doctors)
Overfull demand – some organizations face a demand level that is higher than they can, or want to, handle.
The marketing task, called demarketing, requires finding ways to reduce the demand temporarily or
permanently. Demarketing aims not to destroy the demand but only to reduce its level, temporarily
or permanently
eg. energy companies (use different rate to reduce the consumption at peak times, corn
flakes (encourage consumption of other product if ingredients are not available)
Unwholesome demand – will attracted organised efforts to discourage their consumption.
The marketing task is to get people who like something to give it up, using such tools as fear
messages, price hikes and reduced availability
eg. Smoking, Road safety (Towards Zero, we all need to work together towards achieving a
zero tribe, through campaign which shows emotions/ impacts that breaks the thinking what is
acceptable)
https://www.rsc.wa.gov.au/About/Role-of-the-Commission/Towards-Zero-Strategy
The marketing organization’s value proposition – is the set of benefits or values that it promises to deliver to
customers to satisfy their needs/ should differentiate brands and position them in the marketplace
The proposition answers the customer’s question “Why should I buy your brand rather than
competitors?” (It could be product, service or campaign)
