Marketing
Content summary
Chapter 1................................................................................................................................................1
Chapter 2................................................................................................................................................3
Chapter 3................................................................................................................................................5
Chapter 4................................................................................................................................................6
Chapter 5................................................................................................................................................8
Chapter 7..............................................................................................................................................11
Chapter 9..............................................................................................................................................13
Chapter 10............................................................................................................................................16
Chapter 12............................................................................................................................................18
Chapter 14............................................................................................................................................20
Sustainability........................................................................................................................................22
Online reputation management...........................................................................................................23
Intercultural management...................................................................................................................24
Possible open questions........................................................................................................................26
Chapter 1
Marketing = the process in which companies create value for customers and build strong
relationships to capture value from customers in return
1
,Marketing process
1. Understand the marketplace and customer needs and wants
Understanding customers
Needs: states of deprivation
physical – food, clothing, warmth and safety
social – belonging and affection
individual – knowledge and self-expression
wants: states of desire
form that needs take as they are shaped by culture and individual personality
not needed to survive
demands: wants backed by buying power
understanding the market place
markets:
the set of actual and potential buyers of a product
Marketing offerings:
combination of products, services, information or experiences offered to a market to satisfy a
need or want
marketing myopia
focusing on existing wants and losing sight of underlying customer needs
2. designing a customer driven marketing strategy (which customers to serve & decide on value
proposition)
1. production concept
> consumers will favour products that are available and highly affordable
2. product concept
> consumers favour products that offer the most quality, performance and features
2
, 3. selling concept
> consumers will not buy enough of the firms product, unless it undertakes a large scale of
selling and promotion effort
4. marketing concept
> knowing the needs and wants of the target market and delivering the desired satisfaction
better than competitors do
5. societal marketing
> make good marketing decisions by considering consumers’ wants and long-term interests
company’s requirements society’s long-run interests
3. construct an integrated marketing program that delivers superior value
after the marketing strategy, the marketer develops an integrated marketing program. The
marketing program build customer relations by transforming the market strategy into actions.
It consist of:
the firms marketing mix
the set of marketing tools which are used to implement its marketing strategy
4. build profitable relationships and create customer delight
o customer perceived value
> the difference between total customer value and total customer costs
o customer satisfaction
> the extent to which a product’s perceived performance matches the buyer’s expectations
The levels of customer relationships
basic relationships
> not personally getting to know your customers
> engagement through product experiences, brand building, advertisement, websites and
social media
full relationships
5. capture value from customers to create profits and customer equity
> creating customer loyalty and retention
o customer lifetime value
> the value of the entire stream of purchase a customer makes over a lifetime of patronage
o share of customer
> the portion of the customer’s purchasing that a company gets in its product categories
o customer equity
> the total combined customer lifetime values of all the company’s customers
Chapter 2
Marketing within an organization
o mission statement
what a company wants to accomplish in the larger environment
3
Content summary
Chapter 1................................................................................................................................................1
Chapter 2................................................................................................................................................3
Chapter 3................................................................................................................................................5
Chapter 4................................................................................................................................................6
Chapter 5................................................................................................................................................8
Chapter 7..............................................................................................................................................11
Chapter 9..............................................................................................................................................13
Chapter 10............................................................................................................................................16
Chapter 12............................................................................................................................................18
Chapter 14............................................................................................................................................20
Sustainability........................................................................................................................................22
Online reputation management...........................................................................................................23
Intercultural management...................................................................................................................24
Possible open questions........................................................................................................................26
Chapter 1
Marketing = the process in which companies create value for customers and build strong
relationships to capture value from customers in return
1
,Marketing process
1. Understand the marketplace and customer needs and wants
Understanding customers
Needs: states of deprivation
physical – food, clothing, warmth and safety
social – belonging and affection
individual – knowledge and self-expression
wants: states of desire
form that needs take as they are shaped by culture and individual personality
not needed to survive
demands: wants backed by buying power
understanding the market place
markets:
the set of actual and potential buyers of a product
Marketing offerings:
combination of products, services, information or experiences offered to a market to satisfy a
need or want
marketing myopia
focusing on existing wants and losing sight of underlying customer needs
2. designing a customer driven marketing strategy (which customers to serve & decide on value
proposition)
1. production concept
> consumers will favour products that are available and highly affordable
2. product concept
> consumers favour products that offer the most quality, performance and features
2
, 3. selling concept
> consumers will not buy enough of the firms product, unless it undertakes a large scale of
selling and promotion effort
4. marketing concept
> knowing the needs and wants of the target market and delivering the desired satisfaction
better than competitors do
5. societal marketing
> make good marketing decisions by considering consumers’ wants and long-term interests
company’s requirements society’s long-run interests
3. construct an integrated marketing program that delivers superior value
after the marketing strategy, the marketer develops an integrated marketing program. The
marketing program build customer relations by transforming the market strategy into actions.
It consist of:
the firms marketing mix
the set of marketing tools which are used to implement its marketing strategy
4. build profitable relationships and create customer delight
o customer perceived value
> the difference between total customer value and total customer costs
o customer satisfaction
> the extent to which a product’s perceived performance matches the buyer’s expectations
The levels of customer relationships
basic relationships
> not personally getting to know your customers
> engagement through product experiences, brand building, advertisement, websites and
social media
full relationships
5. capture value from customers to create profits and customer equity
> creating customer loyalty and retention
o customer lifetime value
> the value of the entire stream of purchase a customer makes over a lifetime of patronage
o share of customer
> the portion of the customer’s purchasing that a company gets in its product categories
o customer equity
> the total combined customer lifetime values of all the company’s customers
Chapter 2
Marketing within an organization
o mission statement
what a company wants to accomplish in the larger environment
3
