Fundamental of Marketing Notes

In: Business and Management

Submitted By han2019
Words 2701
Pages 11



A simple definition of marketing is managing profitable customer relationships.

Marketing must both attract new customers and grow the current customers.

Every organization must perform marketing functions, not just for-profit companies.

Non-profits (colleges, hospitals, churches, etc.) also must also perform marketing.

Marketing Defined

Most people think of marketing as selling and/or advertising—“telling and selling.”

Marketing must focus on satisfying customer needs.

We define marketing as the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

The Marketing Process

Figure 1.1 shows the five-step marketing process. 1. Understand the marketplace and customer needs and wants. 2. Design a customer-driven marketing strategy. 3. Construct a marketing program that delivers superior value. 4. Build profitable relationships and create customer delight. 5. Capture value from customers to create profits and customer quality.

In the first four steps, companies work to understand consumers, create customer value, and build strong customer relationships. In the final step, companies reap the rewards of creating superior customer value. By creating value for consumers, they in turn capture value from consumers in the form of sales, profits, and long-term customer equity.


Five core customer and marketplace concepts are critical: (1) needs, wants, and demands; (2) marketing offers (products, services, and experiences); (3) value and satisfaction; (4) exchanges and relationships; and (5) markets.

Customer Needs, Wants, and Demands

The most basic concept underlying marketing is that of human needs.

Human needs are…...

Similar Documents

Marketing Fundamentals

...Research 53.6 (2011): n. pag. WARC. Web. 7 Apr. 2013. <>. Ryals, Lynette. "Marketing Solutions Services." Warc Best Practice (2013): n. pag. WARC. Web. 7 Apr. 2013. <>. Cue, Oscar, Gabriela De La Riva, Carlos De León, Alice Garretti, Claudia Martínez, Monica Moctezuma, Rocío Ordoñana, and Mariana Ramirez-Degollado. Proc. of Neurosemiotics - the Key to Successful Marketing, Mexico City. Amsterdam: ESOMAR, 2008. WARC. Web. 7 Apr. 2013. <>. "Warc Industry Trends Snapshot: Vending Innovation - New Opportunities for Packed Goods in an Established Retail Channel." WARC. Warc, 2012. Web. 8 Apr. 2013. <>. Marketers must be able to identify the needs of the customer and the problems that arise without such needs and sell not a simple product, but the solution to their dilemmas. In a globalised and highly competitive world successful marketing revolves around a quality customer experience. A relationship must occur between the customer and product where they are able to understand the solutions the product possesses. Marketers are able to produce this relationship by understanding the needs of the customer and being able to deliver them successfully in order to earn the trust of the customer. However a service encounter or any interaction between a consumer and sales attendant may not be required for successful marketing to be an outcome. This is depicted through the rapidly increasing online shopping......

Words: 2203 - Pages: 9

Marketing Fundamentals

...Application of the marketing mix is no longer relevant for firms adopting a contemporary approach to marketing. Is this statement true? Write an essay that critically assesses this statement with reference to relevant literature and briefly outline suitable practical examples of firms’ practises where appropriate. Tip: You might want to use some of the literature used in the group presentation exercise as a starting point in your literature search and consider other approaches to marketing when critically examining the role of the marketing mix. Length 2,000 word essay Deadlines You will be given both formative and summative feedback for this essay if you submit your first attempt by the first deadline date. The first deadline for submission is 3pm Thursday 24th October. Written feedback on first attempts of the essay will be released on Thursday 14th November. The second and final submission deadline for the essay is 3pm Thursday 21st November. The second submission will then be marked and you will receive an (unconfirmed) summative mark and final feedback should be by 12th December 2013. Submission A paper copy of the essay should be submitted via the reception/ submission desk in PGT reception. Make sure you receive a receipt for the submission. An electronic copy should also be submitted via TurnItin. Both a paper copy and an electronic copy (via TurnItin) must be submitted for both deadlines. Penalty for late submission The penalty for late......

Words: 1011 - Pages: 5

Marketing Fundamentals

...Marketing fundamentalsFUNDAMENTALS OF AN INTEGRATED MARKETING COMMUNICATION PLAN This document is intended to provide a general guide to students in Bus 134B, Integrated Marketing Communications, as they develop their semester project. Hopefully, this will provide an additional “comfort zone” to students, enabling a clearer understanding and a faster start with the project. References to page numbers and figures whose content is incorporated here refer to Chapter 4, The IMC Planning Process, of Integrated Advertising, Promotion, and Marketing Communications, Clow & Baack, 5th Edition, Prentice Hall, 2011. Integrated Marketing Communications (IMC) is the term used to describe the entire program by which you communicate with your customers. The “face, personality and spirit” of your company and products (all marketing mix variables) should blend together to present a unified message. Note that an IMC plan is NOT a marketing plan. An IMC plan is the portion of the marketing plan that involves all promotional aspects of the marketing plan. All communications with customers, including but not limited to • personal selling • consumer sales promotions • trade (channel) promotions • advertising • public relations • corporate as well as product positioning • customer service experiences are included in a complete IMC plan. Each of these different communication types must be aligned with and in support of each other and the overall positioning (Value Image) of company. To develop a......

Words: 1524 - Pages: 7

Marketing Notes

...Marketing Strategy Do I need a marketing strategy? Making and using a marketing strategy has a strong positive impact on profitability. This is because firms that employ a marketing strategy tend to focus on their customers and markets, integrate their marketing responses and work out in advance where their profits will come from. This briefing answers a range of questions people in small business often ask about marketing strategy: * what is a marketing strategy? * what's the difference between marketing strategy and business strategy? * where does the marketing mix fit in? * what is a marketing plan? * what information do I need and where do I get it? * what should my marketing strategy consist of? * how do I get started? What is a marketing strategy? A marketing strategy defines objectives and describes the way you're going to satisfy customers in your chosen markets. It does not have to be written down but it is easier to communicate to outsiders, like your bank manager or other investors, when it is. A set of strategies found quite commonly in smaller businesses are growth strategies. One way to look at strategies to grow your business is through the way you will use products and markets or customers. * Current product/current market Market penetration is a strategy of increasing your share of existing markets. You might achieve this by raising customers' awareness of your products and services or finding new customers. For further......

Words: 1180 - Pages: 5

Marketing Notes

.... Principles of Marketing: 8/28/14 A. Marketing defined: is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return. 1. To be able to measure profitable customer relationships 2. Aim of marketing is to make selling unnecessary. B. Customer Relationships: C. Chapter one Terms: 1. Needs-states of felt deprivation. 2. Wants-the form human needs takes as they are shaped by environment and character. 3. Demands-human wants that are backed by buying power. 4. Market offerings-some combination of products, services information or experiences offer to a market to satisfy a need or want. 5. Marketing myopia-mistake of paying more attention to the specific product as co. offers than to the benefits and experiences produced by t these products. 6. Exchange-the act of obtaining a desired object from someone by offering something in return. D. Chapter one Terms Cont.: 1. Marketing management-the art and science of choosing target markets and building profitable relationships with them. 2. Production concept-the idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency. 3. Product concept- 4. Selling concept 5. Marketing concept 6. Societal marketing concept E. Chapter one terms Cont. 1. Customer relationship management 2.......

Words: 254 - Pages: 2

Marketing Notes

...Marketing Notes Adil Muneer Definition of Marketing: Marketing is a process of creating, pricing, distributing and promoting of goods, services and ideas to facilitate a satisfying costumer relationship in a dynamic environment. Explanation: Creating the product means to introduce a new product to sell in the market which is tangible. Means which can be seen and touch. When the customer buys the product, it loss the possession of owner. And services are intangible products may be the banks and hospital services. When services are rendered, if do not affect the possession of owner. And ideas can be the consulting institutions. When a product is created to sell in market, the second matter is to fix the price of it keeping in view the production cost and profit margin. And when price is set, the product is distributed different markets. These goods are distributed through the distribution channels. There are Direct and Indirect distribution channels. When a seller personally goes to the market and distributes the product, this is the direct distribution channel. And when the middle men and agents, retailers, whole sellers are involved, this is called the Indirect distribution channel. The direct channel is not operated in large markets. Seller never goes to the costumers to introduce and sell the product by himself. The person who sells the products on a stall, is a example of direct channel. Here...

Words: 1227 - Pages: 5

Marketing Notes

...BA 170 Exam #2 Notes March 19, 2015 Products and Services Product     Anything that can be offered in a market for attention, acquisition, use or consumption that might satisfy a need or a want May be defined as everything both favorable and unfavorable that a person receives in an exchange Service is a product that consists of activities, benefits or satisfaction that is essentially intangible and does not result in the ownership of anything. Experiences represent what buying the product or service will do for the customer 3 levels of Product 1. Core customer value - What is the customer buying? 2. Actual product – What is the core benefit of the product? (Brand name, features, design, packaging, quality level) 3. Augmented value – what are the additional customer services and benefits? (Warranty, product support, deliveryand credit, after sales service) Product Classification 1. Consumer products a. Products and services for personal consumptions b. CONSUMER PRODUCT CLASSIFICATION: i. Convenience Products – consumer products and services that the customer buys frequently, immediately and with a minimum comparison and buying effort ii. Shopping products – consumer products and services that the customer compares carefully on suitability, quality, price and style iii. Specialty products – products with unique characteristics or brand identification for which a significant group of buyers is willing to make a special......

Words: 5964 - Pages: 24

Fundamentals of Marketing

...Lakeisha Riley 7/6/15 ES2560 Unit 4 Assignment 1: Marketing & the Economy: Critical Thinking Pepsi's Latest Ad Campaign Has Little to Do With Soda Pepsi wants to sell you a feeling, with a little soda on the side. This year marks the 40th anniversary of the soda giant's famous "Pepsi Challenge" campaign, which asked people to do a blind taste test to see if they preferred Pepsi or Coke. To celebrate, the company is re-launching the challenge, complete with celebrities like Usher and Serena Williams, as well as Vine and Snapchat sensation Jerome Jarre. But instead of picking Pepsi or Coke, the new campaign asks fans to take part in sports, tech, and design and music challenges. The modernized challenge isn’t completely devoid of images of Pepsi cans, and there will be a taste test component in some markets. But the ad push centers largely around creating an emotional connection with the Pepsi brand and less on lauding the taste of its cola. A new Pepsi ad released as part of the challenge. The can dispenses emoji’s instead of soda. That's because the company's ethos is about more than just a bubbly drink, said Brad Jakeman, the president of PepsiCo's Global Beverages Group. “This is a brand that has stood next to major cultural moments all around the world; it’s a brand that always operates in the consumer zeitgeist,” Jakeman said. “The brand is much bigger than a product concept, and actually that has allowed us to do a lot of interesting things with this......

Words: 320 - Pages: 2

Marketing Notes

...DEFINING THE MARKETING FOR THE 21ST CENTURY 1 C H A P T E R _________________________________________________________________________ INTRODUCTION Change is occurring at an accelerating rate; today is not like yesterday, and tomorrow will be different from today. Continuing today’s strategy is risky; so is turning to a new strategy. Therefore, tomorrow’s successful companies will have to heed three certainties: ➤ Global forces will continue to affect everyone’s business and personal life. ➤ Technology will continue to advance and amaze us. ➤ There will be a continuing push toward deregulation of the economic sector. These three developments—globalization, technological advances, and deregulation— spell endless opportunities. But what is marketing and what does it have to do with these issues? These three developments—globalization, technological advances, and deregulation— spell endless opportunities. But what is marketing and what does it have to do with these issues? Marketing deals with identifying and meeting human and social needs. One of the shortest definitions of marketing is “meeting needs profitably.” Whether the marketer is Procter & Gamble, which notices that people feel overweight and want tasty but less fatty food and invents Olestra; or CarMax, which notes that people want more certainty when they buy a used automobile and invents a new system for selling used cars; or IKEA, which notices that people want good furniture at......

Words: 844 - Pages: 4

Marketing Notes

...DEVELOPING OF MARKETING STRATEGIES AND PLANS C H A P T E R 2 ___________________________________________________________________________ INTRODUCTION How do companies compete in a global marketplace? One part of the answer is a commitment to creating and retaining satisfied customers. We can now add a second part: Successful companies know how to adapt to a continuously changing marketplace through strategic planning and careful management of the marketing process. In most large companies, corporate headquarters is responsible for designing a corporate strategic plan to guide the whole enterprise and deciding about resource allocations as well as starting and eliminating particular businesses. Guided by the corporate strategic plan, each division establishes a division plan for each business unit within the division; in turn, each business unit develops a business unit strategic plan. Finally, the managers of each product line and brand within a business unit develop a marketing plan for achieving their objectives. However, the development of a marketing plan is not the end of the marketing process. High-performance firms must hone their expertise in organizing, implementing, and controlling marketing activities as they follow marketing results closely, diagnose problems, and take corrective action when necessary. In today’s fast-paced business world, the ability to effectively manage the marketing process—beginning to end—has become an......

Words: 982 - Pages: 4

Marketing Notes

...Marketing Chapter 1: Defining Marketing for the 21st Century * Marketing plays a key role in addressing challenges such as helping firms to prosper financially and survive in the face of an unforgiving economic environment * The broader importance of marketing extends to society as a whole => it helps introduce and gain acceptance of new products that have eased/enriched people’s lives * Good marketers seek new ways to satisfy their customers and beat their competition => if they don’t carefully monitor their customers and competitors and don’t continuously improve their value offerings and marketing strategies, don’t satisfy their employees, stockholders, suppliers and channel partners in the process, the firm is at risk to fail * What is marketing? => identifying and meeting human/social needs meeting needs profitably * Selling is not the most important part of marketing the aim is to know and understand the customer so well that the product/service fits him and sells itself * What is marketed? => 10 main types of entities 1) Goods => physical goods such as canned, bagged, fresh, and frozen food products and other tangible items 2) Services => e.g. airlines, hotels, car rentals, barbers, etc. => mixes of good and services are also possible such as restaurant because they offer food and service at the same time 3) Events => 4) Experiences => e.g. Walt Disney World 5) Persons => e.g. artists, musicians,......

Words: 11345 - Pages: 46

Marketing Notes

...24108 Marketing Foundations 1. Introduction to Marketing and the Marketing Environment What is marketing? * “The activity, set of institutions, and processes for creating, communicating, delivering and exchanging offers that have value for customers, clients, partners and society at large” * Marketers need to learn what customers, clients, partners and society want * Marketers use information, develop new ideas and offer something unique/special * Ongoing process Why study marketing? * Market orientation firms have better performance * Better profits, sales volume, market share, return on investment * Marketing drives economic growth/stimulates consumer demand * Every employee is a stakeholder in the success of their organisation The Marketing Evolution * Changed from: * Trade * Production orientation * Sales orientation (e.g. black vs. blue) * Market orientation (i.e. what colour do you want, and matching the product) * Societal market orientation (e.g. to stop consumerism) * Used by small and large, those selling goods and services, private, public, profit and non-for-profit Marketing Exchange * Mutually beneficial transfer of offerings of value between buyer and seller * Two or more parties, each with something of value * All must benefit * Exchange must meet expectations of both parties What is value? * “A customers overall assessment of the...

Words: 4012 - Pages: 17

Marketing Notes

...MARKETING  NOTES     (Lecture1)     Terminology     Marketing:   a   social   &   managerial   process   by   which   companies   create  value   for  customers  and  build  strong  customer  relationships  to  capture   value  from   customers  in  return.     Needs:  Absolute  necessities  required  for  sustaining  life.       E.g.:  “Food,  Clothing,  Warmth,  Home,  Telecommunication”     Wants:   An   upgrade   of   basic   needs   in   which   individuals   require   specific   objects  or  options.       E.g.:  “Lays,  Nike  Shoes,  Smartphone”     Demands:  is  when  an  individual  wants  something  which  is  premium,  but  he   also  has  the  ability  to  buy  it,  then  these  wants  are  converted  to  demands.       E.g.:  “BMW,  Armani  Shoes,  Gold  IPhone”     Market   Offering:   is   the   total   offer   to   your   customers,   which   includes   elements   that   represent   additional   value   to   your   customers   other   than   the   product   itself,   such   as   availability,   convenient   delivery,  ......

Words: 794 - Pages: 4

Marketing Notes

...Marketing Chapter 7 Notes Product, Services, and Brands: Building Customer Value I. What is a product? * Product: anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. * can include events, persons, places, organizations, ideas. * Services: An activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything. * Examples: banking, hotel, airline travel, retail, wireless communication * A company’s market offering often includes both intangible and tangible goods and services. Two extreme ends: pure tangible goods, pure services. * In order for companies to differentiate their offers, they are creating and managing customer experiences with their brands or companies. * Levels of Product and Services: three main levels 1. Core customer value. “What is the buyer really buying?” Most basic level. 2. Actual Product. Need to develop product and service features, a design, a quality level, a brand name, and packaging. 3. Augmented product. Must build an augmented product around the core benefit and actual product services and benefits. * “Consumers see products as a complex bundles of benefits that satisfy their needs. When developing products, marketers first must identify the core customer value that consumers seed from the product. They must then design the actual product and find ways to......

Words: 1736 - Pages: 7

Fundamental of Marketing

...Marketing I (Fundamentals) Week 2 Marketing Orientation Marketing Management Ø The analysis , Planning , Implementation and Control activities of management with regards to marketing. Marketing Management Philosophies 1. Production Concept Focus on production and distribution efficiencies Consumers will favour products that are available and affordable 2. Product concept Focus on product improvement Consumers favour better products 3. Selling concept Focus on more selling and promotion Consumers won’t buy unless you persuade them 4. Marketing Concept Focus on satisfying target markets needs and wants better than competitors as a way to achieve organisational goals. 5. Societal Marketing Concept Ø Same as marketing Ø But do it in a way that the society’s well-being is maintained or improved. The pure marketing concept overlooks possible conflicts between consumer short-run wants and consumer long-run welfare –e.g. fast food. The societal concept seems appropriate bin an age of: • • • • Environmental problems Resource shortages Rapid population growth World-wide economic problems 1 Marketing I (Fundamentals) • Neglected social services Marketing Challenge into the Next Century 1. Growth of nonprofits marketing 2. The information Technology Boom 3. Rapid globalisation 4. The changing world economy 5. The call for move ethics and social responsibility 6. The new marketing landscape The 4ps 1. Product • • • The product can be tangible or intangible The right product......

Words: 2491 - Pages: 10

Policing in a Diverse Community | David Bailey | HD Liza Marklund's Annika Bengtzon