principles of marketing

Chapter 1: Creating Customer Relationships and Value through Marketing

Learning Objectives

  • Define marketing and its influencing factors.

  • Explain how marketing meets consumer needs.

  • Distinguish between marketing mix and environmental forces.

  • Discuss building strong customer relationships and market orientation.

Case Study: Bombas

  • Mission: "One purchased = One donated."

  • Impact: 75 million pairs donated, $250 million in revenue.

  • Strategies: Product innovation, purpose-driven branding, B-Corp certification.

Definition of Marketing

  • Involves creating, communicating, delivering, and exchanging value.

  • Impacts individuals, organizations, and economies.

Goals of Marketing

  • Identify and satisfy customer needs through exchanges.

Influencing Marketing Actions

  • Internal Factors: Mission, objectives, and management involvement.

  • External Factors: Societal influences and environmental forces.

Essentials for Marketing

  • Requires two parties with unsatisfied needs, desire, ability to satisfy, communication, and something valuable to exchange.

Discovering Consumer Needs

  • Understand consumer desires with techniques like crowdsourcing.

Consumer Needs vs. Wants

  • Needs: Basic necessities; Wants: Culturally influenced.

The Marketing Mix (Four P's)

  • Product, Price, Promotion, Place.

Environmental Forces

  • Uncontrollable factors: social, competitive, economic, regulatory, technological.

Building Customer Relationships

  • Focus on creating customer value for loyalty. Use relationship marketing for long-term benefits.

Evolution of Marketing

  • Market orientation for customer info collection. CRM aims for favorable customer perceptions. Societal marketing balances consumer needs with societal well-being.

Types of Buyers

  • Ultimate Consumers: Individuals for households; Organizational Buyers: Entities for use or resale.

Customer Value and Utility

  • Customer Value: Benefits aligned with price.

  • Utility Types: Form, place, time, possession.

Chapter Overview

  • Importance of Learning: Key to organizational success.

Learning Objectives

  1. Organizational Types and Strategies:

    • Types: for-profit, nonprofit, government.

    • Strategy levels: corporate, business unit, functional.

  2. Core Values and Missions:

    • Define core values, mission, culture, and business goals.

  3. Marketing Dashboards:

    • Importance of metrics in management.

  4. Assessing Organizational Position:

    • Evaluate current status against future goals.

Types of Organizations

  • For-Profit: Profit-focused.

  • Nonprofit: Serves social causes.

  • Government Agencies: Operate under public regulations.

Decision-Making

  • Social Entrepreneurship: New organizations focusing on passions and social issues (e.g., Earth Brands, Teach For America).

Strategy and Structure

  • Strategy: Must be targeted.

  • Structure: Includes corporate, strategic units, functional departments.

Visionary Organizations

  • Foundational Elements: Core values, mission, culture shape identity.

  • Directional Elements: Goals guide strategic choices.

Marketing Analytics

  • Performance Tracking: Use metrics and dashboards.

Strategic Marketing Process

  1. Planning Phase: Guides market strategy.

  2. SWOT Analysis: Evaluates internal/external factors.

  3. Market Focus: Develops customer value proposition.

  4. Program Design: Incorporates product, price, promotion, place.

Implementation Phase

  • Execution: Essential for success.

Evaluation Phase

  • Performance Review: Compares outcomes with goals and initiates corrective actions.