FINAL EXAM SUMMARY OF
MARKETING PRINCIPLE 200083
1 CREATING AND CAPTURE VALUE
- Review chapter 1 of your textbook
- Understand the marketplace and customer needs
2. Customers’ need, want and demand
Need: states of felt deprivation
o Physical need: food, clothing, etc.
o Individual need: knowledges, self-expression
Want: the form taken by human needs as they are shaped by culture and
individual personality.
o A hungry person in Australia, Singapore or Hong Kong might want a
rice or noodle dish for a quick lunch, accompanied by green tea. A
hungry person in the South Pacific might want mangoes, suckling pig
and beans.
o Wants are described in terms of objects that will satisfy needs
Demands: Human wants that are backed by buying power.
o They want to choose products that provide the most value and
satisfaction for their money
, o For example: A simple way to look at needs, wants and demands is
that a person needs water to survive (thirst). The person may want a
carbonated beverage to satisfy his or her thirst. If the person has the
resources, he or she may demand a particular brand of carbonated
beverage, such as Coca-Cola, Pepsi or another local brand.
3. Market offerings: Goods, services and experience:
Consumers’ needs and wants are fulfilled through market offerings – some
combination of goods, services, information or experiences offered to a
market to satisfy a need or a want.
Product suggests a physical object such as a car, an iPad or a bar of soap.
However, the concept of product is not limited to physical objects; anything
capable of satisfying a need can be called a product
Marketers often use the expressions goods and services/ experiences to
distinguish between products that have physical form and those that do not
(intangible)
For example: Consumers decide which entertainers to watch at the movies
and on television, which places to visit on holiday, which organisations to
support through contributions and which ideas to adopt. Thus, the term
product covers physical goods, services, experiences and a variety of other
offerings that satisfy consumers’ needs and wants. If at times the term seems
not to fit, we could substitute words such as satisfier, resource or offer. In the
broadest sense, market offerings also include other entities, such as persons,
places, organisations, information and ideas.
Marketing myopia: the mistake of paying more attention to the specific
products a company offers than to the benefits and experiences by these
products
For example: Smart marketers look beyond the attributes of the products and
services they sell. By orchestrating several services and products, they create
brand experiences for consumers. For example, you do not just watch a V8
Supercar or MotoGP motorcycle race; you immerse yourself in the
exhilarating, high-octane experience that the many on-board mini-cameras
now provide.
4. Customer value and satisfaction
, Customers form expectations about the value and satisfaction that various
market offerings will deliver and buy accordingly. Satisfied customers buy
again and tell others about their good experiences. Dissatisfied customers
often switch to competitors and disparage the original product to others.
Marketers must be careful to set the right level of expectations. If they set
expectations too low, they may satisfy those who buy but may fail to
attract enough buyers. If they set expectations too high, buyers will be
disappointed.
5. Exchanges, transactions and relationships:
Exchange is the act of obtaining a desired object from someone by
offering something in return. In the broadest sense, the marketer tries to
bring about a response to some market offering. The response may be
more than simply buying or trading products and services. A political
candidate, for instance, wants votes; a golf club wants members; an
orchestra wants an audience; an online community of practice, such as
BimmerPost (BMW owners), wants subscribers who help each other; and
a social action group, such as Amnesty Australia, wants idea acceptance.
Whereas exchange is the core concept of marketing, a transaction is
marketing’s unit of measurement. A transaction consists of a trade of
values between two parties. In a transaction, we must be able to say that
one party gives X to another party and gets Y in return. For example, if
you pay $1650 for a television set to Harvey Norman in Sydney or
Singapore, you are engaged in a classic monetary transaction.
Marketing consists of actions taken to build and maintain desirable
exchange relationships with target audiences involving a product, service,
idea or other object. Beyond simply attracting new customers and
creating transactions, the company wants to retain customers and grow
their business. Marketers want to build strong relationships by
consistently delivering superior customer value
6. Markets:
A market is the set of actual and potential buyers of a product/ service.
These buyers share a particular need or want that can be satisfied through
exchange relationships.
, Marketing means managing markets to bring about profitable customer
relationships. However, creating these relationships takes work. Sellers
must search for buyers, identify their needs, design good market
offerings, set prices for those offerings, promote them, and store and
deliver them. Activities such as consumer research, product development,
communication, distribution, pricing and service are core marketing
activities.
Figure 1.3 shows the main elements in a marketing system. Marketing
involves serving a market of final consumers in the face of competitors.
The company and competitors research the market and interact with
consumers to understand their needs. They then create and send their
market offerings and messages to consumers, either directly or through
marketing intermediaries. All of the parties in the system are affected by
major environmental forces (demographic, economic, physical,
technological, political/legal and social/cultural).
Each party in the system adds value for the next level. In the figure, the
arrows represent relationships that must be developed and managed.
Thus, a company’s success at building profitable relationships depends
not only on its own actions but also on how well the entire system serves
the needs of final consumers. Coles Supermarkets cannot fulfil its promise
of everyday low prices unless its suppliers provide merchandise at low
costs. And Toyota cannot deliver a high-quality car-ownership experience
unless its dealers provide outstanding sales and service.
- What are the steps involve in creating in value building customers long-term
relationship? (Blue) (textbook reading) (week 1 pptx)
MARKETING PRINCIPLE 200083
1 CREATING AND CAPTURE VALUE
- Review chapter 1 of your textbook
- Understand the marketplace and customer needs
2. Customers’ need, want and demand
Need: states of felt deprivation
o Physical need: food, clothing, etc.
o Individual need: knowledges, self-expression
Want: the form taken by human needs as they are shaped by culture and
individual personality.
o A hungry person in Australia, Singapore or Hong Kong might want a
rice or noodle dish for a quick lunch, accompanied by green tea. A
hungry person in the South Pacific might want mangoes, suckling pig
and beans.
o Wants are described in terms of objects that will satisfy needs
Demands: Human wants that are backed by buying power.
o They want to choose products that provide the most value and
satisfaction for their money
, o For example: A simple way to look at needs, wants and demands is
that a person needs water to survive (thirst). The person may want a
carbonated beverage to satisfy his or her thirst. If the person has the
resources, he or she may demand a particular brand of carbonated
beverage, such as Coca-Cola, Pepsi or another local brand.
3. Market offerings: Goods, services and experience:
Consumers’ needs and wants are fulfilled through market offerings – some
combination of goods, services, information or experiences offered to a
market to satisfy a need or a want.
Product suggests a physical object such as a car, an iPad or a bar of soap.
However, the concept of product is not limited to physical objects; anything
capable of satisfying a need can be called a product
Marketers often use the expressions goods and services/ experiences to
distinguish between products that have physical form and those that do not
(intangible)
For example: Consumers decide which entertainers to watch at the movies
and on television, which places to visit on holiday, which organisations to
support through contributions and which ideas to adopt. Thus, the term
product covers physical goods, services, experiences and a variety of other
offerings that satisfy consumers’ needs and wants. If at times the term seems
not to fit, we could substitute words such as satisfier, resource or offer. In the
broadest sense, market offerings also include other entities, such as persons,
places, organisations, information and ideas.
Marketing myopia: the mistake of paying more attention to the specific
products a company offers than to the benefits and experiences by these
products
For example: Smart marketers look beyond the attributes of the products and
services they sell. By orchestrating several services and products, they create
brand experiences for consumers. For example, you do not just watch a V8
Supercar or MotoGP motorcycle race; you immerse yourself in the
exhilarating, high-octane experience that the many on-board mini-cameras
now provide.
4. Customer value and satisfaction
, Customers form expectations about the value and satisfaction that various
market offerings will deliver and buy accordingly. Satisfied customers buy
again and tell others about their good experiences. Dissatisfied customers
often switch to competitors and disparage the original product to others.
Marketers must be careful to set the right level of expectations. If they set
expectations too low, they may satisfy those who buy but may fail to
attract enough buyers. If they set expectations too high, buyers will be
disappointed.
5. Exchanges, transactions and relationships:
Exchange is the act of obtaining a desired object from someone by
offering something in return. In the broadest sense, the marketer tries to
bring about a response to some market offering. The response may be
more than simply buying or trading products and services. A political
candidate, for instance, wants votes; a golf club wants members; an
orchestra wants an audience; an online community of practice, such as
BimmerPost (BMW owners), wants subscribers who help each other; and
a social action group, such as Amnesty Australia, wants idea acceptance.
Whereas exchange is the core concept of marketing, a transaction is
marketing’s unit of measurement. A transaction consists of a trade of
values between two parties. In a transaction, we must be able to say that
one party gives X to another party and gets Y in return. For example, if
you pay $1650 for a television set to Harvey Norman in Sydney or
Singapore, you are engaged in a classic monetary transaction.
Marketing consists of actions taken to build and maintain desirable
exchange relationships with target audiences involving a product, service,
idea or other object. Beyond simply attracting new customers and
creating transactions, the company wants to retain customers and grow
their business. Marketers want to build strong relationships by
consistently delivering superior customer value
6. Markets:
A market is the set of actual and potential buyers of a product/ service.
These buyers share a particular need or want that can be satisfied through
exchange relationships.
, Marketing means managing markets to bring about profitable customer
relationships. However, creating these relationships takes work. Sellers
must search for buyers, identify their needs, design good market
offerings, set prices for those offerings, promote them, and store and
deliver them. Activities such as consumer research, product development,
communication, distribution, pricing and service are core marketing
activities.
Figure 1.3 shows the main elements in a marketing system. Marketing
involves serving a market of final consumers in the face of competitors.
The company and competitors research the market and interact with
consumers to understand their needs. They then create and send their
market offerings and messages to consumers, either directly or through
marketing intermediaries. All of the parties in the system are affected by
major environmental forces (demographic, economic, physical,
technological, political/legal and social/cultural).
Each party in the system adds value for the next level. In the figure, the
arrows represent relationships that must be developed and managed.
Thus, a company’s success at building profitable relationships depends
not only on its own actions but also on how well the entire system serves
the needs of final consumers. Coles Supermarkets cannot fulfil its promise
of everyday low prices unless its suppliers provide merchandise at low
costs. And Toyota cannot deliver a high-quality car-ownership experience
unless its dealers provide outstanding sales and service.
- What are the steps involve in creating in value building customers long-term
relationship? (Blue) (textbook reading) (week 1 pptx)
