Notes for Marketing - Chapter 1
What is Marketing?
Marketing is how businesses engage with customers and build relationships to make profits.
It’s about creating value for customers and getting value back in return.
Example: A bakery makes delicious cakes (creating value). Customers buy those cakes and
come back because they like them (getting value in return).
The Marketing Process
1. Understanding the Marketplace and Customer Needs:
o Needs: Basic things people must have to survive like food, water, clothes, and
shelter.
o Wants: Things people desire because of culture or personal choice, like wanting a
smartphone instead of a regular phone.
o Demands: Wants that people can afford to buy. For example, if a person wants an
iPhone and has the money to buy it, that’s a demand.
2. Market Offerings:
o This means all the things businesses offer to meet people's needs and wants, like
products, services, and experiences.
o Example: Apple offers phones, apps, and even workshops to help users
understand their devices.
3. Customer Value & Satisfaction:
o Customer Value: Giving more benefits compared to the cost paid.
o Customer Satisfaction: Meeting or exceeding customer expectations.
o Example: When you buy a toy, if it works well and lasts long, you feel satisfied.
4. Exchanges and Relationships:
o Giving something to get something in return.
o Example: You pay for pizza; in return, you get a tasty meal.
5. Markets:
o All the people who might buy a product or service.
o Example: Everyone who drinks coffee is part of the coffee market.
Designing a Customer-Driven Marketing Strategy
1. Selecting Customers to Serve:
o Dividing the market into groups and deciding which group to focus on.
o Example: A toy company making toys for kids under 10 years old.
2. Choosing a Value Proposition:
o Deciding how to be different and better than others.
Example: Domino’s promises quick delivery with the slogan, "You get fresh, hot
o
pizza delivered to your door in 30 minutes or less."
3. Marketing Management Orientations:
o Production Concept: Focuses on making products affordable and easily
available.
o Product Concept: Focuses on making high-quality and innovative products.
o Selling Concept: Focuses on selling the product aggressively.
o Marketing Concept: Focuses on understanding and meeting customer needs
better than competitors.
o Societal Marketing Concept: Focuses on customer needs, company profit, and
societal well-being.
Constructing an Integrated Marketing Program
1. Marketing Mix (4Ps):
o Product: What you are selling (goods or services).
o Price: How much you charge for it.
o Place: Where and how customers can buy your product.
o Promotion: How you advertise your product (ads, sales, social media).
Example: For a burger chain, the product is the burger, the price is the amount charged, the
place is the restaurant or delivery, and promotion includes TV ads, online posts, and discounts.
2. Strategic Implementation:
o Making sure all marketing activities work together to provide great value.
o Example: A phone company promoting a new smartphone, making it available at
stores and online, and offering discounts.
3. Customer Experience:
o Making sure customers feel happy whenever they interact with the company.
o Example: Amazon providing fast delivery and easy returns.
Building Profitable Relationships
1. Customer Relationship Management (CRM):
o Making customers happy and loyal so they keep coming back.
o Example: Netflix suggesting shows based on your preferences to keep you
watching.
2. Changing Nature of Customer Relationships:
o Using digital platforms and social media to connect with customers.
o Example: Brands engaging with customers through Instagram or Facebook.
3. Partner Relationship Management:
o Working with suppliers and partners to provide better value.
o Example: Amazon working with delivery services to provide fast shipping.
Capturing Value from Customers
1. Customer Loyalty & Retention:
o Making customers happy so they keep buying from you.
o Example: Coffee shops offering loyalty cards where the 10th coffee is free.
2. Growing Share of Customer:
o Encouraging customers to buy more from the same company.
o Example: McDonald's offering combos to increase sales per customer.
3. Building Customer Equity:
o The total value of all the customers’ future purchases.
o Example: Apple building a strong customer base that keeps buying its new
products.
The Changing Marketing Landscape
1. Uncertain Economic Environment:
o Economic changes affect how people spend money.
o Example: During a recession, people buy fewer luxury items.
2. The Digital Age:
o Marketing through the internet, social media, and mobile apps.
o Example: Brands using Instagram, YouTube, and Facebook to reach customers.
3. Rapid Globalization:
o Businesses expanding their reach to customers around the world.
o Example: McDonald's operating in different countries with local menu
variations.
4. Sustainable Marketing:
o Companies being responsible by caring about the environment and society.
o Example: Brands making eco-friendly products or reducing plastic use.
5. Not-for-Profit Marketing:
o Organizations like charities also use marketing to reach their goals.
o Example: UNICEF promoting its campaigns to collect donations.
Conclusion – What Is Marketing?
Marketing is all about creating, communicating, and delivering value to customers. It helps
build relationships and drives business success.
