Marketing Lecture 1 PDF

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Marketing lecture 1 summary and notes: Introduction to marketing

Different business orientations: Starting point Given products  Given products  Customer preferences 

Methods Expansion of production (production orientation)  Sales instruments (sales orientation)  Marketing mix (market orientation) 

Objectives Increased sales volume Securing sales volume/turnover Customer satisfaction, competitive advantage

Market orientation requires re-thinking 

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“marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationship in ways that benefit the organization and its stakeholders” “marketing is the activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners, and society at large”

B2C Markets:  Large number of potential customers  Large number of small individual purchases  Market anonymity  Low level of information (relatively) among potential customers B2B Marketing definition:  

B2B supports sale of material goods, services, and rights procured by organizations (companies, authorities etc.) B2B is directed towards other services which go beyond direct or indirect resale to end customers

B2B Markets:  Relatively small number of potential customers  Strong business relations  Direct market contacts  Informed and formalized purchasing decisions  Multi-person decisions (e.g., buying centers)

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Long-lasting purchase decision processes

Example: structure of a marketing organization in banking

Difference goods vs. services:

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Goods Usually tangible (exception: electricity) Storable Doesn’t require integration of the customer Doesn’t require individualization

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Services Intangible Non-storable Requires integration of the customer Requires individualization

Goods & Services often combined

Main offer Good Good Service Service

Accompanying offer X Service Good X

Examples Detergents, cigarettes Automobile & repair Mobile network & smartphone Haircut, legal advice

Basic idea of marketing: 1. Orientation towards customer needs 2. Market segmentation 3. Behaviour orientation 4. Key role of market research 5. Marketing mix 6. Innovation orientation 7. Use of brands 8. Strategic role: mid-term to long-term planning

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1. Customer Needs emotional needs continuum  rational needs

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2. (Basic idea) Market segmentation Goal: identify homogeneous segments from heterogeneous mass Main purpose: reveal differences between customers to draw conclusions for marketing

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Market segments should be formed in a way that they are as similar as possible in their reactions to the company’s marketing tools and in their behaviours, allowing for differentiated market development Markets can be segmented: demographic (religion, gender, age), socio-economic (income, schooling, occupation), psychographic criteria (lifestyle, personality traits)  Socio-demographic doesn’t always help though (e.g., very different people may have the same characteristics like age and wealth)

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3. Behaviour orientation “consumers are influenced by various factors in their purchasing directions”

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4. Market research “market research allows marketers to better understand market potential”

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5. Marketing mix “product, price, communication and distribution should be optimally coordinated”

Overview of the instrumental areas of the marketing mix 

“Ads are dead. The future is about things that people want, not things they must endure”

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6. Innovation orientation Satisfaction of consumer needs that are changing faster and faster Reaction to shorter product life cycles Differentiation from competition Necessity for growth

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7. Use of brands Brands provide differentiation “the brand is the only sustainable source of competitive advantage”

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8. Strategic role: mid-term to long-term planning From transaction to customer relationships Marketing is not only about short-term planning...