Marketing

Chapter 1

Marketing process outline

What is marketing?
-The process by which companies create value for customers and build strong customer relationships
in order to capture value from customers in return.

Goal of marketing:
attract new customers with promise of superior value
grow current customers by delivering satisfaction

Marketplace and Customer needs

Needs: basic (food, shelter), social (affection and belonging), individual (self-expression and
knowledge)
Wants: shaped by culture and individual personality
Demands: wants that are backed up by buying power
Market offerings: combination of products, services, information or experiences offered to satisfy
needs or wants
Marketing myopia: focusing only on wants and ignoring customer needs
Exchange relationships: marketing action try to create and maintain and grow desirable exchange
relationships
Sellers: search for buyers, identify needs, design market offerings, set prices, promote, sore and
deliver
Consumers: search for products, interact with company, make
purchases
Marketing management: choosing target markets and building
profitable relationships with them
By creating, delivering, and communicating superior
customer value

Marketing concepts

Production concept: consumers prefer products that are widely

available and inexpensive. Focus on high production efficiency, low
costs, mass distribution
Risk: can lead to myopia
Product concept: consumer prefer products that offer the most quality,
performance, and features. Focus on continuous production improvements.
Risk: consumers might look for new instead of improved

Selling concept: undertakes a large-scale selling and promotion effort,

normally with unsought goods (life insurance, blood donation etc.)
Risk: focuses more on sales then customer relationships

Marketing concept: knowing wants and needs and delivering desire better than
competitors. Focus on customers and value, which lead to sales and profit.
Find the right product for your customer

Social Marketing: consider wants long-run interests and benefits society’s interests

Marketing strategy
Four Ps: Products, price, promotion, place
Consumer-Engagement marketing: direct and continues customer involvement in shaping brand
Consumer-Generated marketing: customer created material and feedback
Changing market landscape: NPO marketing growth, rapid globalization,
sustainable marketing