Principles of Marketing Lecture Notes

Introduction

• Presenter: Miss Marie
• Focus on definitions from the American Marketing Association (AMA)
• Importance of agreed definitions in the marketing field

What is Marketing?

• Definition: Process by which companies create value for consumers.
• Goals:
  • Attract new customers by offering superior value.
  • Maintain and grow existing customer relationships by delivering satisfaction.
• Engagement: Easier and cheaper to keep existing customers than to acquire new ones.

Marketing Concepts

• Marketing is critical for both for-profit and non-profit organizations.
• Marketing Concept: Achieving organizational goals relies on understanding target market needs.

Five-Step Model of the Marketing Process

1. Understand the Marketplace: Identify customers' needs and wants.
2. Design a Value-Driven Marketing Strategy: Create strategies that attract consumers.
3. Construct a Marketing Program: Deliver the designed strategy effectively.
4. Engage Customers: Build relationships and brand loyalty.
5. Capture Value: Retain customers and convert them into advocates.

Needs vs. Wants

• Needs: Biological and essential (e.g., food, shelter).
• Wants: Specific satisfiers of needs (e.g., a hot dog).
• Demands: Wants backed by purchasing power.

Exchange in Marketing

• Exchange: Act of obtaining desired objects by offering something in return.
• Marketing involves creating and maintaining exchange relationships with target audiences.

Markets

• Definition: A set of actual and potential buyers for a product or service.
• Sellers must identify needs, design goods, set prices, and promote offerings.

Marketing Management

• Definition: Art and science of choosing target markets and building profitable relationships.
• Key Questions:
  • Who is the target market?
  • What value will we offer?
• Market Segmentation: Dividing the market into segments to identify target groups.

Marketing Philosophies

1. Production Orientation: Focus on efficient production rather than consumer needs.
2. Product Orientation: Assuming that consumers will buy based on product quality alone.
3. Selling Orientation: Aggressive selling techniques to push products.
4. Marketing Orientation: Cost-centered approach focusing on consumer needs and wants.
5. Societal Marketing: Balancing company profits with societal well-being.

Customer Relationship Management (CRM)

• Definition: Building and maintaining profitable customer relations by delivering superior value.
• Key Tools:
  • Frequency marketing programs
  • Loyalty rewards programs
  • Club marketing programs

Value vs. Satisfaction

• Value: Pre-purchase assessment; perceived benefits exceed costs.
• Satisfaction: Post-purchase assessment; reflects whether the purchase met expectations.

Customer Engagement Marketing

• Involves fostering continuous customer involvement in brand conversations.
• Significant boost from social media and online interactions.
• Example: Apple engages consumers by participating in discussions about their products.

Consumer Generated Marketing

• Consumers play a role in shaping brand experiences.
• Example: Streaming services that adapt based on user preferences.

Partner Relationship Marketing

• Importance of building relationships with marketing partners (suppliers, media, community).

Digital Marketing Evolution

• The emergence of digital media greatly changed the marketing landscape.
• Mobile Marketing: Tailoring marketing campaigns based on user locations and behaviors.

The Four P's of Marketing

• Product, Price, Place, Promotion: Each element must be optimized for success.
• Companies must excel in at least one of these areas to outperform competitors.

Conclusion

• Understanding customer needs, value, and satisfaction is fundamental to marketing success.
• Marketing remains an evolving field, with traditional concepts adapting to digital contexts.

Next Steps

• Contact Miss Marie with questions via email or on the course platform.
• Prepare for Chapter 2.