Topics: Marketing, Marketing research, Strategic management Pages: 12 (1698 words) Published: February 26, 2014
 Principles and Practice of Marketing
Class N°1 - 30/09/2013
Chapter 1: Fundamentals of Modern Marketing
1 The Marketing Concept

a) Traditional Marketing
Peter Drucker: “The basic function of marketing is to attract and retain customers at a profit”. Central role in business: creation and retention of customers. Purpose of Marketing is not to chase any custom er at any price. Keeping them by providing satisfaction / attracting them by creating added value. This basic notion lacks a crucial point => the corporate achievement (shares, profit…) b) Marketing Concept

The Marketing Concept: The achievement of corporate goals through meeting and exceeding customer needs and expectations better than the competition. Customer orientation = corporate activities are focused upon providing customer satisfaction. Integrated effort = all staff accept the responsibility for creating customer satisfaction. Goal achievement = the belief that corporate goals can be achieved through customer satisfaction.

c) Production vs Marketing Orientation
Production Orientation
Goal: To attain economies of scale by producing a limited range of products in form that minimizes production costs. (It doesn’t involve customer satisfaction)

Marketing Orientation
Goal: To change and evolve by focusing on customer needs. Companies need to understand and listen to consumers in order to deliver a product/services needed and wanted by them.

Success Story: Toyota changed his orientation by focusing on products wanted by consumers (cheap & reliable) d) Market-driven vs Internally Orientated

e) Efficiency vs Effectiveness
Efficiency: Running the business well with cost focus. (High inputs / Low outputs) Effectiveness: Making the good choices with consumer focus. (Good market, opportunities…)

Goes out of business
Dies slowly
Does well / Thrives

Success Story: Samsung thrives on efficiency and effectiveness (good management + good marketing) f) Limitations of the Marketing Concept

The marketing concept as an ideology

There should be a compromise between the satisfaction of consumers and the achievement of other company requirements.

Marketing and society

Wensley: “Providing customer satisfaction is simply a means to achieve a profit objective and it does not guarantee protection of the consumer’s welfare”

Marketing as a constraint on innovation

Successful innovations are based on a good understanding of user needs. (Ex: Ikea)

Marketing as a source of dullness

Analyzing customers and developing offerings that reflect their needs leads to dull marketing campaigns, me-too products, copycat promotion and marketplace stagnation.

g) Creating customer value
Goal: Meeting and exceeding customer needs better than the competition. Customer value = perceived benefits – perceived sacrifice
Benefits – Product, Service, Relation with the company…
Sacrifice – Monetary, Time, Energy, Psychological impact…

h) Customer Satisfaction
Customer satisfaction depends upon the product perceived performance compared to the buyer’s expectations. Customer satisfaction occurs when perceived performance matches or exceeds expectations.

Three characteristics:

Must be = expected to be present and are taken for granted.

More is better = take satisfaction past neutral into the positive satisfaction range.

Delighters = Unexpected characteristics that surprises the customer.

i) The Marketing Mix : (4P)
The good or service that should be offered to a group of consumers. All products must give benefits that customers value. Product decisions also involve choices regarding brand names, guarantees, packaging and the services. (Ex: Ipod) Price

What the company receives for the product or service that is being marketed. Because price affects the value that customers perceive they get from buying a product, it can be an important element in...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Rococo Style Essay
  • Baroque and Rococo Analysis Essay
  • Comparison of Baroque and Rococo Styles Essay
  • Rococo vs. Neoclassicism Research Paper
  • Baroque, Rococo, and Neoclassicism: Comparison and Contrast Essay
  • Rococo and Neoclassicism Essay
  • Baroque and Rococo Art Periods Essay
  • Essay about Rococo vs. Neoclassical Art

Become a StudyMode Member

Sign Up - It's Free