The essence of marketing:
– Focusing on customer needs
– Creating customer value (Achieved by delivering outstanding value through the combination of (1) pricing strategies, (2) product design, and (3) service elements.
– Appealing to target markets
– Coordinating the marketing mix
Customer value: The unique combination of benefits received by targeted buyers that includes quality, price, convenience, on-time delivery, and both before and after sale services.
Target market: Specific group of existing and potential consumers to which a market targets its marketing efforts.
Coordinating the marketing mix:
Marketing mix (4 Ps):
– Product – All the attributes that make up a good, a service, or an idea, including product design, features, color, packaging, warrantee, and service levels.
– Price – The expected retail shelf price and sale price of the product
– Place – The distribution channels and retailers required to sell the product
– Promotion – The communication tools needed to inform consumers about the product, including advertising, sales promotion, public relations, direct marketing and personal selling
The marketing process:
– (1) Identifying consumer needs
– (2) Managing the marketing mix
– (3) Realizing profits
Marketing: The process of planning goods, services, or ideas to meet consumer needs and organizational objectives. It includes the conception of these products and the pricing, promotion and distribution programs designed to make a profit.
Exchange: The trade of things of value between buyers and sellers so that each benefits.
What can be marketed?
Good: A product that you can touch.
Service: A good that is intangible, it cannot be touched
Idea: A concept that typically looks for your support.
What is a market?
Market: It is the term used to describe the potential consumers who have both the willingness and ability to buy a product.
The evolution of business philosophies:
– Stage 1 (1930): Production orientation: Focusing organizational efforts on manufacturing as many products as possible.
– Stage 2 (1930-1960): Sales orientation: Focusing organizational efforts on selling as many products as possible.
– Stage 3 (1960…): Marketing orientation: Focusing organizational efforts to collect and use information about customers needs to create customer value.
– Stage 4 (1990…): Relationship marketing: When organizations create long-term links with customers, employees, suppliers, and other partners to increase loyalty and customer retention.
Marketing concept: The idea that an organization should strive to satisfy the needs of consumers while also trying to achieve organization goals.
The progression of marketing and evolving areas:
- Customer relationship management (CRM): The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
- Experiential marketing: Creating opportunities for consumers to directly interact with brands.
- Corporate social responsibility (CSR): When organizations voluntarily consider the well being of society by taking responsibility for how their businesses impact consumers, customers, suppliers, employees, shareholders, communities, the environment and society in general.
Societal marketing concept: Focusing on the consumer and the well-being of society.