Busi 2204- Basic Marketing
Chapter 1: An Introduction to Marketing
Marketing
- Marketing is about understanding the needs of the customer
- Marketing’s sole focus is on the customer and understanding what makes them tick
- Without marketing to identify a customer to create revenues and profit, there is no need
for an accounting department or manufacturing facility
- Marketing is about engaging in a conversation with that customer and guiding the
delivery of what is required to satisfy those needs
- Need: A state of being where we desire something that we do not possess but yearn to
acquire
- Marketing is moving from interruption to interaction. Rather than being a burden on the
customer, marketing now involves more of an open conversation between the company
and the customer which allows customers to provide proper feedback and data
Production Orientation
- Focuses on marketing as a messenger
- “Field of dreams”: “if you build it, they will come”
- marketing is seen as a way of letting customers know about products and assumes that
those customers will beat a path to the producer’s door
- The Production Orientation focuses on products because of a lack of product options in
the marketplace
- Companies are free to create whatever products they deem appropriate, and customers
have to accept what is offered.
Sales Orientation
- Highlighted by the increased power of customer choice
- Companies now don’t just make a product and expect customers to buy their product
right away
o Sales techniques are established to convince customers to buy
- Sales pitches are used under this orientation in order to convince customers to buy their
product. Usually done by savvy salespeople who understand people well
- Companies use sales materials such as brochures, print ads, etc., to convince customers
to buy and they overwhelm customers with promotional activities especially in
competitive marketplaces
- Peter Drucker says that the aim of marketing is to know and understand the customer so
well that the product or service fits him and sells itself. Marketing should result in a
customer who is ready to buy.
- Sales orientation: hard selling to the customer, who has greater choice thanks to more
competition in the marketplace
,Marketing Company Orientation
- Highlighted by the coordination of marketing activities—advertising, sales, and public
relations—into one department in an organization
- Marketing concept: focuses on linking the needs of customers with the competencies of
an organization seeking to meet those needs
- Marketing Company Orientation: A strong emphasis on the marketing concept and
development of a more comprehensive approach to understanding the customer
Social Marketing Orientation
- Looking at not only what the customer wants but what society wants also
- Examines the long-term impacts on the customer and the environment when customers
seek to satisfy needs.
- New movements, such as recycling and waste reduction, sought out companies’
solutions to deal with greater consumerism
- Example is the McDonalds’ Happy meal that was targeted towards younger customers.
There were public concerns with McDonalds in terms of health issues. They addressed
this issue by implementing healthier choices especially towards children such as “mini”
size of fries, yogurt options, apple slices, etc. Also included a charity offer where 10 cents
from every happy meal was donated to the Ronald McDonald House.
- Social Marketing Orientation: Looking not only at the customer but expanding
marketing efforts to include aspects from the external environment
Relationship Marketing Orientation
- Focuses on actually engaging and forming a relationship with the customer
- Customer engagement is aided by two strategies:
o Customer Satisfaction
Customers’ evaluation of a good or service in terms of whether it has met
their needs and expectations
Failure to meet those needs results in dissatisfaction
Keeping current customers is more than trying to get new ones and
generally less expensive
Focused don delighting customers rather than selling products
o Relationship Marketing
A strategy that focuses on keeping and improving relationships with
current customers
o CRM: Customer Relationship Management best serves the ultimate goal of
meeting the needs of customers and building relationships
Exchange
- People giving up one thing to receive another thing they would rather have
- Customer value: the relationship between benefits and the sacrifice necessary to obtain
those benefits
, o High quality product does not mean you will have customer value if its at a high
price, or a low quality product at a low price.
Customers value goods and services that are of the quality they expect
and are sold at prices they are willing to pay
- Marketing Segments: groups of individuals, families, or companies that are placed
together because it is believed that they share similar needs
o To target specific market segments, much has to be done to research the lives,
trends, and needs of a particular group
- Building relationships
o Companies can expand their market share in three ways: attracting new
customers, increasing business with existing customers, and retaining current
customers
- Marketing Mix: 4 P’s of marketing: product, price, place, and promotion
o Product: relates to the tangible and intangible aspects of a company’s offering.
Need to look at what needs are being satisfied and how to best package all of the
aspects of the offering so that the consumer will be satisfied
o Price: setting the right price is about making the best decision that satisfies the
bottom line and the customer
o Place: relates to the behind-the-scenes activities of making an offering available
to the customer.
o Promotion: Visible activities of marketing. The ones that get into the news and
the faces of customers.
Why Marketing Matters
- No matter the type of business, you will have customers so if you do not concern
yourself with the customer you will not have any
- Marketing provides customer focus therefore understanding marketing allows you to
understand your customer
- There are many job opportunities in marketing because it is something that all types of
companies need within their organization
- Even if your career aspirations are not in the field of marketing, you will still need to sell
yourself to a future employer
- Brett Wilson (Dragon’s Den): says “Study marketing, entrepreneurship, and philanthropy.
The incredible relevance of these courses merits mention”.
Chapter 1: An Introduction to Marketing
Marketing
- Marketing is about understanding the needs of the customer
- Marketing’s sole focus is on the customer and understanding what makes them tick
- Without marketing to identify a customer to create revenues and profit, there is no need
for an accounting department or manufacturing facility
- Marketing is about engaging in a conversation with that customer and guiding the
delivery of what is required to satisfy those needs
- Need: A state of being where we desire something that we do not possess but yearn to
acquire
- Marketing is moving from interruption to interaction. Rather than being a burden on the
customer, marketing now involves more of an open conversation between the company
and the customer which allows customers to provide proper feedback and data
Production Orientation
- Focuses on marketing as a messenger
- “Field of dreams”: “if you build it, they will come”
- marketing is seen as a way of letting customers know about products and assumes that
those customers will beat a path to the producer’s door
- The Production Orientation focuses on products because of a lack of product options in
the marketplace
- Companies are free to create whatever products they deem appropriate, and customers
have to accept what is offered.
Sales Orientation
- Highlighted by the increased power of customer choice
- Companies now don’t just make a product and expect customers to buy their product
right away
o Sales techniques are established to convince customers to buy
- Sales pitches are used under this orientation in order to convince customers to buy their
product. Usually done by savvy salespeople who understand people well
- Companies use sales materials such as brochures, print ads, etc., to convince customers
to buy and they overwhelm customers with promotional activities especially in
competitive marketplaces
- Peter Drucker says that the aim of marketing is to know and understand the customer so
well that the product or service fits him and sells itself. Marketing should result in a
customer who is ready to buy.
- Sales orientation: hard selling to the customer, who has greater choice thanks to more
competition in the marketplace
,Marketing Company Orientation
- Highlighted by the coordination of marketing activities—advertising, sales, and public
relations—into one department in an organization
- Marketing concept: focuses on linking the needs of customers with the competencies of
an organization seeking to meet those needs
- Marketing Company Orientation: A strong emphasis on the marketing concept and
development of a more comprehensive approach to understanding the customer
Social Marketing Orientation
- Looking at not only what the customer wants but what society wants also
- Examines the long-term impacts on the customer and the environment when customers
seek to satisfy needs.
- New movements, such as recycling and waste reduction, sought out companies’
solutions to deal with greater consumerism
- Example is the McDonalds’ Happy meal that was targeted towards younger customers.
There were public concerns with McDonalds in terms of health issues. They addressed
this issue by implementing healthier choices especially towards children such as “mini”
size of fries, yogurt options, apple slices, etc. Also included a charity offer where 10 cents
from every happy meal was donated to the Ronald McDonald House.
- Social Marketing Orientation: Looking not only at the customer but expanding
marketing efforts to include aspects from the external environment
Relationship Marketing Orientation
- Focuses on actually engaging and forming a relationship with the customer
- Customer engagement is aided by two strategies:
o Customer Satisfaction
Customers’ evaluation of a good or service in terms of whether it has met
their needs and expectations
Failure to meet those needs results in dissatisfaction
Keeping current customers is more than trying to get new ones and
generally less expensive
Focused don delighting customers rather than selling products
o Relationship Marketing
A strategy that focuses on keeping and improving relationships with
current customers
o CRM: Customer Relationship Management best serves the ultimate goal of
meeting the needs of customers and building relationships
Exchange
- People giving up one thing to receive another thing they would rather have
- Customer value: the relationship between benefits and the sacrifice necessary to obtain
those benefits
, o High quality product does not mean you will have customer value if its at a high
price, or a low quality product at a low price.
Customers value goods and services that are of the quality they expect
and are sold at prices they are willing to pay
- Marketing Segments: groups of individuals, families, or companies that are placed
together because it is believed that they share similar needs
o To target specific market segments, much has to be done to research the lives,
trends, and needs of a particular group
- Building relationships
o Companies can expand their market share in three ways: attracting new
customers, increasing business with existing customers, and retaining current
customers
- Marketing Mix: 4 P’s of marketing: product, price, place, and promotion
o Product: relates to the tangible and intangible aspects of a company’s offering.
Need to look at what needs are being satisfied and how to best package all of the
aspects of the offering so that the consumer will be satisfied
o Price: setting the right price is about making the best decision that satisfies the
bottom line and the customer
o Place: relates to the behind-the-scenes activities of making an offering available
to the customer.
o Promotion: Visible activities of marketing. The ones that get into the news and
the faces of customers.
Why Marketing Matters
- No matter the type of business, you will have customers so if you do not concern
yourself with the customer you will not have any
- Marketing provides customer focus therefore understanding marketing allows you to
understand your customer
- There are many job opportunities in marketing because it is something that all types of
companies need within their organization
- Even if your career aspirations are not in the field of marketing, you will still need to sell
yourself to a future employer
- Brett Wilson (Dragon’s Den): says “Study marketing, entrepreneurship, and philanthropy.
The incredible relevance of these courses merits mention”.
