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Marketing & Customer Value - Course Notes
Marketing and Customer Value (University of Technology Sydney)
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Marketing & Customer Value - Course Notes
Week #1 - Introduction to Marketing, Marketing Environment and Market Analysis:
Defining Marketing:
A Marketing Exchange; the mutually beneficial transfer of offerings of value between the buyer
and seller
● A successful marketing exchange involves the following:
○ Two or more parties, each with something of value desired by the other party
○ All parties must benefit from the transaction
○ The exchange must meet both partie’s expectations (e.g. quality, price)
Value (A Perception); A customer’s assessment of the utility of an offering based on perceptions of
what is received and what is given.
● Value (simplified) = Quality / Price
● Value refers to the ‘total offering’:
○ Reputation of organisation
○ Features of products
○ Associated ideals
○ Quality & Price
● Value evolves continuously and is unique for each individual.
The Market; A market is a group of customers with heterogeneous (different) needs and wants.
Examples include:
● Geographic Markets → Australian vs American market
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Marketing & Customer Value - Course Notes
● Product Markets → Smartphone vs Tablet market
● Demographic Markets → University students vs High School students
● Customers purchase goods and services for their own or other people’s use
● Consumers use the good or service
● Clients are ‘customers’ of the products of not-for-profit organisations
● Partners are all organisations or individuals who are involved in the activities of the exchange
process
● Society is a body of individuals living as members of a community.
The Triple Bottom Line - Linking To CSR:
The Marketing Mix:
● Product - A product is anything offered to a market. It can be a good, a service, an idea or
even a person. Marketers have to market goods such as batteries, milk and shoes. Marketers
can market services such as hairdressing, legal representation, air travel and beauty therapy.
● Price - Price is the amount of money a business demands in exchange for its offerings.
Pricing is a complex marketing decision that must take account of many factors, including:
○ Production, communication and distribution costs
○ Required profitability
○ Partners’ requirements
○ Competitors’ prices
○ Customers’ willingness to pay.
● Promotion - Promotion describes the marketing activities that make potential customers,
partners and society aware of and attracted to the business’s offering. The product might be:
Downloaded by Maeve Gregory ()
, lOMoARcPSD|39956117
Marketing & Customer Value - Course Notes
○ Already Established — such as Fernwood, where the aim of promotion is to remind
customers that Fernwood is a female‐only fitness centre
○ Modified — such as a new variation of Coke, where the aim of promotion is to inform
existing customers about the improvement or new variety and to attract potential new
customers
○ New — such as a new‐release movie, where the aim is to make customers aware of the
product for the first time
○ Information or Education — such as advertisements designed to persuade you not to take
illegal drugs. Promotion should not be thought of merely as advertising.
● Place (Distribution) - Distribution (or place) refers to the means of making the offering
available to the customer at the right time and place. It is largely a logistics function and
marketers need to understand how logistics impact their ability to deliver a product at a time
and place that suits customer needs or wants. The marketer must ensure products are
available to the target market in the right amount and at the right time while managing the
costs of making the products available.
● People - Marketers must think about people, including employees and other customers. In the
marketing frame- work, ‘people’ refers to any person coming into contact with customers, who
can affect value for customers.
● Process - Process refers to the systems used to create, communicate, deliver and exchange
an offering. Marketers must understand the systems that are used to create, communicate
and deliver offerings for exchange. This understanding is needed to understand how the
systems affect value for customers.
● Physical Evidence - Physical evidence refers to the tangible cues, including the physical
environment, that customers use to evaluate products, particularly services. Because services
are intangible, it is difficult to assess their quality and suitability until they are consumed.
The Marketing Environment; All of the internal and
external forces that affect a marketer’s ability to create,
communicate, deliver and exchange offerings of value.
Environmental Analysis; A process that involves
breaking the marketing environment into smaller parts in
order to gain a better understanding of it.
The Internal Environment:
● The parts of the organisation, the people and the
processes used to create, communicate, deliver
and exchange offerings that have value.
● The organisation can directly control its internal
environment.
● Strengths and weaknesses are internal factors that
positively and negatively affect the organisation’s
ability to compete in the marketplace.
Downloaded by Maeve Gregory ()
Marketing & Customer Value - Course Notes
Marketing and Customer Value (University of Technology Sydney)
Scan to open on Studocu
Studocu is not sponsored or endorsed by any college or university
Downloaded by Maeve Gregory ()
, lOMoARcPSD|39956117
Marketing & Customer Value - Course Notes
Week #1 - Introduction to Marketing, Marketing Environment and Market Analysis:
Defining Marketing:
A Marketing Exchange; the mutually beneficial transfer of offerings of value between the buyer
and seller
● A successful marketing exchange involves the following:
○ Two or more parties, each with something of value desired by the other party
○ All parties must benefit from the transaction
○ The exchange must meet both partie’s expectations (e.g. quality, price)
Value (A Perception); A customer’s assessment of the utility of an offering based on perceptions of
what is received and what is given.
● Value (simplified) = Quality / Price
● Value refers to the ‘total offering’:
○ Reputation of organisation
○ Features of products
○ Associated ideals
○ Quality & Price
● Value evolves continuously and is unique for each individual.
The Market; A market is a group of customers with heterogeneous (different) needs and wants.
Examples include:
● Geographic Markets → Australian vs American market
Downloaded by Maeve Gregory ()
, lOMoARcPSD|39956117
Marketing & Customer Value - Course Notes
● Product Markets → Smartphone vs Tablet market
● Demographic Markets → University students vs High School students
● Customers purchase goods and services for their own or other people’s use
● Consumers use the good or service
● Clients are ‘customers’ of the products of not-for-profit organisations
● Partners are all organisations or individuals who are involved in the activities of the exchange
process
● Society is a body of individuals living as members of a community.
The Triple Bottom Line - Linking To CSR:
The Marketing Mix:
● Product - A product is anything offered to a market. It can be a good, a service, an idea or
even a person. Marketers have to market goods such as batteries, milk and shoes. Marketers
can market services such as hairdressing, legal representation, air travel and beauty therapy.
● Price - Price is the amount of money a business demands in exchange for its offerings.
Pricing is a complex marketing decision that must take account of many factors, including:
○ Production, communication and distribution costs
○ Required profitability
○ Partners’ requirements
○ Competitors’ prices
○ Customers’ willingness to pay.
● Promotion - Promotion describes the marketing activities that make potential customers,
partners and society aware of and attracted to the business’s offering. The product might be:
Downloaded by Maeve Gregory ()
, lOMoARcPSD|39956117
Marketing & Customer Value - Course Notes
○ Already Established — such as Fernwood, where the aim of promotion is to remind
customers that Fernwood is a female‐only fitness centre
○ Modified — such as a new variation of Coke, where the aim of promotion is to inform
existing customers about the improvement or new variety and to attract potential new
customers
○ New — such as a new‐release movie, where the aim is to make customers aware of the
product for the first time
○ Information or Education — such as advertisements designed to persuade you not to take
illegal drugs. Promotion should not be thought of merely as advertising.
● Place (Distribution) - Distribution (or place) refers to the means of making the offering
available to the customer at the right time and place. It is largely a logistics function and
marketers need to understand how logistics impact their ability to deliver a product at a time
and place that suits customer needs or wants. The marketer must ensure products are
available to the target market in the right amount and at the right time while managing the
costs of making the products available.
● People - Marketers must think about people, including employees and other customers. In the
marketing frame- work, ‘people’ refers to any person coming into contact with customers, who
can affect value for customers.
● Process - Process refers to the systems used to create, communicate, deliver and exchange
an offering. Marketers must understand the systems that are used to create, communicate
and deliver offerings for exchange. This understanding is needed to understand how the
systems affect value for customers.
● Physical Evidence - Physical evidence refers to the tangible cues, including the physical
environment, that customers use to evaluate products, particularly services. Because services
are intangible, it is difficult to assess their quality and suitability until they are consumed.
The Marketing Environment; All of the internal and
external forces that affect a marketer’s ability to create,
communicate, deliver and exchange offerings of value.
Environmental Analysis; A process that involves
breaking the marketing environment into smaller parts in
order to gain a better understanding of it.
The Internal Environment:
● The parts of the organisation, the people and the
processes used to create, communicate, deliver
and exchange offerings that have value.
● The organisation can directly control its internal
environment.
● Strengths and weaknesses are internal factors that
positively and negatively affect the organisation’s
ability to compete in the marketplace.
Downloaded by Maeve Gregory ()
