Marketing Lecutre 1

Marketing Lecutre 1

1. Definition :

   • Marketing is the action of promoting or selling products, including market research and advertisign, Marketing can be interpreted as 4 different sections: Marketing as Research Field, Management Process,Philosophy and Business Function
     • Marketing as a: Research Field, Management Process, Business Philosophy and Business Function

2. Marketing as a Management Process

   • Set of process for creating, communicating, deliverying and exchanging offerings that have values for customers, partners and society at large. (American Marketing Association)
     • Three categories:
       • Needs
         • Difference between consumer actual state and some ideal or desired state. EG. Physical needs for food, social needs for belonging and individual needs
       • Demands
         • Human wants backed y buying power.
       • Wants
         • Desired of a particular product to satisfy a need in specific ways that depends on an individuals history: Eg. I want a coke

3. Customer Satisfaction and Loyalty:

   • Customer Satisfaction
     • It is a measure of how products and services supplied by a company meet or surpass customer expectation.
       • Why is important?
         • It’s a leading indicator of consumer repurchase intentions and loyalty. - It’s a point of differentiation. - It reduces customer churn. - It increases customer lifetime value
   • Customer loyalty:
     • Customer loyalty is the key objective of customer relationship management and describes the loyalty which is established between a customer and companies, persons, products or brands.
       • Why is important?
         • Loyalty initiatives allow you to focus on your best customers and improve customer satisfaction levels. Loyal customers buy more and are often willing to pay more, which boosts your cashflow. By increasing loyalty, you can increase profitability and extend the time they place their business with you
           • How to achieve it?
             • Make a connection, and then plug in. A recent survey shows that 71% of customers who ended a business relationship did so because of a poor customer service experience.

4. Company Orientations

   • Product Orientation (1930)
     • The focus for the business is to reduce costs through mass production. A business orientated around production believes that the "economies of scale" generated by mass production will reduce costs and maximise profits.
   • Product orientation (1950)
     • A product orientated company believes that its product's high quality and functional features make it a superior product. Such a company believes that if they have a superior product customers will automatically like it as well
   • Sales orientation (1960)
     • A sales orientated company's focus is simple; make the product, and then sell it to the target market. This type of orientation involves the organisation making what they think the customer needs or likes without relevant research.
   • Market orientation (2000-Today)
     • A market orientated company puts the customer at the "heart" of the business; all activities in the organisation are based around the customer. The customer is truly king!. A market orientated organisation endeavours to understand customer needs and wants, then implements marketing strategy based on their market research