Introduction to marketing
1 – The nature of marketing
2 – Understanding customer behaviour
3 – Market segmentation, targeting and positioning
4 – Product and brand management
5 –Pricing strategy
6 – Integrated marketing communications
7 – Distribution management
Boris Berthon (124)
Boris.berthon@u-pec.fr
EPREL: online resources
Bibliography:
- Foundations of marketing, D. Jobber & J. Fahy
- Principes de marketing, P. Kotler & G. Armstrong
The nature of marketing
1. The development of marketing and the
marketing concept
2. The nature of customer satisfaction and
value
3. The scope of marketing
Marketing is central to the success of
companies
« Because the purpose of business is to create and keep
customers, it has only two central functions – marketing and
innovation. The basic function of marketing is to attract and
retain customers at profit. »
Peter Drucker
1. Marketing has a central role for business success since it is concerned with the
creationand retention of customers;
2. It is much more expensive to attract new customers than to retain existing ones;
3. Companies need to monitor and understand competitors, since it is to rivals that
customers will turn if their needs are not being met.
The marketing concept
“the achievement of corporate goals through meeting and
exceeding customers needs better than the competition”
Customer
orientation
Corporate activities
are focused upon
providing customer
satisfaction
Integrated effort
Goal achievement
All staff accept the
responsibility for
creating customer
satisfaction
The belief that
corporate goals can
be achieved through
customer satisfaction
The development of marketing
Production
capabilities
Manufacture
product
Aggressive
sales effort
Customers
Marketing
products and
services
Customers
Production orientation
Customer
needs
Potential
market
opportunities
Marketing orientation
The development of marketing
Market-driven businesses
Internally orientated businesses
•Customer concern throughout business
•Know customer choice criteria and
match with marketing mix
•Segment customer differences
•Invest in marketing research (MR) and
track market changes
•Welcome change
•Try to understand competition
•Marketing spend regarded as an
investment
•Innovation rewarded
•Search for latent markets
•Be fast
•Strive for competitive advantage
•Convenience comes first
•Assume price and product performance
key to most sales
•Segment by product
•Rely on anecdotes and receive wisdom
•Cherish status quo
•Ignore competition
•Marketing spend regarded as a luxury
•Innovation punished
•Stick with the same
•Why rush ?
•Happy to be me-too
Creating customer value and
satisfaction
Negative
Positive
Customer value
Perceived
benefits
Product benefits
Service benefits
Image benefits
Perceived
sacrifice
Monetary costs
Time costs
Energy costs
Psychological costs
Creating customer value and
satisfaction
Delight
Customer satisfaction
‘Delighters’
‘More is better’
Neutral
‘Must be’
Dissatisfaction
Absent
Presence of the characteristic
Fulfilled
Delivering customer value
Market survey
Segmentation
Identifying needs and
wants
Choosing a target
market(s)
Targeting
Developing a market
offering
Positioning
Product
Place
Price
Measuring
outcomes
Promotion
The marketing mix
In service businesses:
- People
- Process
- Physical evidence
The marketing mix
An effective marketing mix
Matches
customer needs
Creates a
competitive
advantage
Effective
marketing
mix
Matches corporate
resources
Well
balanced
The scope of marketing
Places
Properties
Organizations
Information
Ideas
Goods
Services
Experiences
Events
Persons