Principles of Marketing: 15e – Chapters 1 – 5

1. Understand the Marketplace and customer needs and wants
2. Design a customer-driven marketing strategy
3. Construct an integrated marketing program that delivers superior value: Use the four P’s
4. Build profitable relationships and create customer delight
5. Capture value from customers to create profits and customer equity
Five Step Marketing Process
When you want something and can afford it
i. Also called buying power
ii. Adjust price to adjust size of market
When is demand created
Find needs, wants, demand and market offering
Conduct market research to:
Market myopia
Paying more attention to products instead of the benefits produced
Exchange
Receiving cash or word of mouth for your product
Product Concept
Customers favor products with quality, performance and innovated features
Selling Concept
Customers won’t buy enough product unless properly promoted
Marketing Concept
Achieving goals depends on knowing needs and wants/satisfying customers better than competitors
Societal marketing Concept
i. Relationships with everyone
ii. Key is long term relationships and benefits
Construct an integrated marketing program that delivers superior value: Use the four P’s
Product, Price, Promotion and Place
a. Customer Satisfaction
b. Perceived value
c. Customer relations
How do you build profitable relationships and create customer delight?
Perceived value
Give customers an experience they believe is worth the price
Types of capture-able customer value
a. Cash
b. Loyalty and Retention
c. Grow market share
d. Customer Equity (Good will)
1. Harness Technology
2. Manage global markets
3. Ensure ethics and social responsibility
How to achieve the 5 steps
Value Chain
1. Design
2. Produce
3. Market
4. Deliver
5. Support
1. Internal: Strengths and Weaknesses
2. External: Opportunities and Threats
SWOT
Threats
Competitors, Regulators and Customers
Microenvironment
1. The company itself
2. Suppliers
3. Marketing intermediaries
a. Companies helping to sell
4. Competitors
5. Publics
a. Any group with actual or potential impact
6. Customers
Macro environment
1. Demographic – Age, gender, race, people moving/shifts, education
2. Economic
3. Natural – Shortages of raw materials
4. Technological – Things we use to produce product
5. Political/Social – Laws, regulations, pressure groups
a. Anti-trust law: Fight fair or don’t lie about your product
Cultural
Common set of beliefs
Secondary values
Example: when to get married
1. Assess information needs
2. Internal Databases
3. Marketing Intelligence
4. Marketing research
5. Types of data
MIS
Ask what to know to make a good decision
Assess information needs
Internal Databases
Use info from company – cheap/available
Marketing Intelligence
Activities that go into marketing plan
a. Publicly available information
Marketing research
a. Stuff you have to get – Exploratory, Descriptive (Most common) and Casual
b. Marketing research plan
i. Define problem and what to accomplish
ii. Develop plan to get data
iii. Implementation of plan
iv. Analyze data, and report information
Marketing Research Plan
a. Secondary Data/Already existing
b. Primary Data – Relevant but costs a lot
c. Commercial/online data
d. Megadata – Already know what trends are
e. Focus group – Intimate, you can ask questions about product
f. Relative sample – Take one because you can’t ask the whole world
Types of Data
i. Advantage – Cheap and quick
ii. Disadvantage – May not be relevant
Secondary Data/Already existing
Relevant but costs a lot
i. Observe, Questionnaire and Experiment
ii. Contact methods – Mail, telephone, personal and online
Primary Data
Line
Laborers
Staff
Everybody else
Perfect Price
Everything sells
Marketing
A process by which companies create value for customers and build strong customer relationships in order to capture value from consumers in return
Strategic planning
Align organization’s goals and capabilities with a changing market conditions
Mission statement
Statement of the organization’s purpose (Always from the view of the customers)
ROI
Used to prove you deserve the company investment