Marketing Chapter 1

Marketing Definition

series of activities that discover, investigate, create and announce value for customers and society as a whole

What are the Eras of Marketing?

Antecedents --> Origins --> Institutional Development --> Refinement & Formalization

Era of Antecedents

• early days of capitalism (1500s, 1600s)

• focus on luxury goods

• distribution and warehousing take hold

Era of Origins

• mass production due to industrial revolution

  • e.g. first car made in black, not tied to consumer pref., just available

• market segmentation and promotion used by producers

• consumer choice born

e.g. horses used before, first car = five horsepower, convenience

Era of Institutional Development

• selling is key

• different options, choices of products (product/feature focused)

• marketplaces intro to interaction with customers

• marketing used to understand consumers

e.g. who is it for? who is the audience? what does it do?

Era of Refinement & Formalization

“give people what they want”

• consumerism in modern society (more, different, specific)

• marketing = key to understanding needs

• advertising, selling data/algorithms based on preferences

e.g. what is the benefit? what images are used? emotional connection? personalization?

Marketing Concept is something that…

• focuses on the wants and needs, in order to differentiate from its competitors

• integrate all orgs. activities (production) to satisfy the wants

• achieve long-term goals by satisfying wants/needs (legal, responsible)

Engagement is by…

• customer satisfaction (make customer happy, retention)

• relationship marketing (improve/keep relationships)

  • long term = customers’ preferences

• trust (listen, act, share)

Customer Relationship Management (CRM)

• gathering/mining data

• building trust overtime

• automated emails, deals, discounts

• recommendations

• data used to see results (what to improve, see competitors)

Marketing Terms

Exchange: giving up one thing to receive another they would rather have

• exchange space needed for buyer and seller to interact

• time, knowledge, audience, data

Customer Value: relationship between benefits, sacrifices to achieve it

• value is subjective

• does it work? material decent? looks nice? service is what?

• customer values goods/services that are

  • of quality expected

  • sold at prices willing to pay

Market Segments: separate, specific group of consumers

• companies → families → individuals

Building Relationships

launch point for developing long term

Marketing Mix, the 4Ps of Marketing

Product: tangible/intangible, what needs satisfied through promotion

Price: measure of value in exchange for company products/services

• set right price, customer perception/economic

• make decision that is best for company and customers

Place: bts activities of creating products/services available

• decisions made on how to get product on market

Promotion: visible activities, advertising for e.g.

• challenge to find balance of techniques, keeping consistent look

Customer Satisfaction & Attrition

satisfaction → evaluation in terms whether needs/expectations met

attrition → customers remove themselves from business relationship

• concerns or issues unaddressed

example of relationship marketing

e.g. Disney focused on long term with its customers

• “doing right by customer”

• parks around world, understands experiences (memories)

• cast members, interact with public

Marketing Job Titles

1. Corporate Marketer – focused on understanding needs of clients

2. Product Marketer – focused on consumer behaviour, what customers desire

3. Branding & Creativity Marketers – focused on advertising or public relations

4. Performance Marketers – social media, web mobile, phone = engagement