Foundations of Marketing: Chapter 1: the Nature of Marketing

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Chapter 1: the Nature of Marketing.
The focus of marketing is on customers and their changing needs. Goal of marketing: long term customer satisfaction.
Three conditions which must be met before the marketing concept can be applied: * Company activities should be focused on providing customer satisfaction instead of producing products. * The achievement of customer satisfaction relies on integrated effort (marketing is the responsibility of everyone in the company.) * Management must believe that corporate goals can be achieved through satisfied customers. Societal marketing concept: companies should deliver customer satisfaction in a way that improves both the consumer’s and society’s well-being. Production orientation: focus is on current production capabilities. Marketing orientation: focus is on excisting products or the internal operations of the company. Customer value = perceived benefits – perceived sacrifice. The kano model:

* Must be: characteristics that are expected and taken for granted, lack of these characteristics causes annoyance but presence of these characteristics brings dissatisfaction up to a neutral level: (hotel -> customers expect good service and clean rooms.) * More is better: characteristics that can take satisfaction past neutral and into the positive satisfaction range: (No response to a telephone call -> dissatisfaction, fast response -> positive satisfaction or even delight) * Delighters: unexpected characteristics that surprise the customer: Absence doesn’t cause dissatisfaction, but presence delights the customer. (free measures of brandy in the rooms of adults guests.) will become expected over time, so turn into must be! Markets and marketing are rapidly changing and new methods of delivering value are being developed. Marketing mix: product, price promotion and place. -> form a major aspect of marketing concept implementation. * Product decision: the choice of what products and services should be offered to a group of customers. * Price: represents what the company receives for their product or service that is being marketed. * Promotion: make the target audience aware of your product/service and it’s benefits. * Place: make sure that the product/service reaches the aimed target group in a proper way. An effective marketing mix:

1. Is designed to meet the needs of the target customer.
2. Contributes to the creation of an competitive advantage. 3. Must match the resources that are available to the firm. 4. Should be well blended to form a consistent theme.
7p’s : 4 p’s + people, process and physical evidence. (in case of services) Marketing is positive: it provides significant benefits to society. Our particular needs are being met. The competition between firms continually forces them to improve their products/services and deliver extra value to their customers. Marketing is negative: Creates unnecessary wars . Companies create aspirations and get customers to buy products they don’t really need -> customers build op debts. Modern customer has become obsessed with consumption -> materialism is rising. Natural resources will soon be depleted. The way young groups are persuaded to buy products is not ethical. Marketing activity has invaded all aspects of society -> corporate partners at events. Efficiency (it does the things right) -> is concerned with inputs and outputs. A efficient firm produces goods economically, cost per unit are low and leads to high margins if they sell the product for a higher price. Effectiveness (doing the right things)-> operating in attractive markets and making products costumers want to buy. If your company doesn’t do this, it will die. | Ineffective| Effective|

Inefficient| Goes out of business quickly| Survives|
Efficient| Dies slowly| Does wellThrives|

The relationship between marketing and performance is positive. There is a string relationship between marketing philosophy and business...
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