MKTG10001 Lecture Notes - Lecture 1: Customer Engagement, Competitive Intelligence, Marketing Myopia

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MKTG10001 - PRINCIPLES OF MARKETING
LECTURE 1 . 1 - INTRODUCTION
Marketing: the activity, set of institutions, & process of creating, communicating, delivering, &
exchanging offerings that have a value for customers, clients, partners, & society at large.
An approach to doing business. The whole business seen from the customer’s PO↑
Stages of Marketing Evolution:
Production Era: build it, they will buy it
Sales Era: make the customers want to buy it
Marketing Department Era: take customer insights into consideration. Dedicate a department
Marketing Organisation Era: customers’ wants / needs at the centre of the organisation
View of marketing / business has gone from a focus on the physical process sequence:
1. Make the product (design it, obtain materials, manufacture)
2. Sell it (‘cost plus’ price (costs + profit margin = price), sell / advertise, distribute, service)
To a focus on the value delivery sequence:
1. Choose the value (customer value & needs analysis, segmentation & target market, value positioning
(why it’s better than competitors))
2. Provide the value (organisational value creation, product & process (re)design, co-creation)
3. Communicate the value (build internal & external understanding of: customer value framework,
customer value positioning)
Value Creation & Delivery:
Requires a trade-off: what elements should we offer / deny the customer?
Toolkit for Creating & Communicating Value:
Product / People: new product / service development, value co-creation, building the brand,
augmented product (value from both physical & non-physical aspects), service quality
Place: selection of channels & channel partners, finding complementaries between routes to market,
designing & implementing of channel controls, design of promotional plan for channels
Price: value- based pricing, consumer-based view of pricing, pricing tactics
Promotion: determination of promotion objectives, development of communications content &
creative selection of media, design of control / evaluation methodology, timing
LECTURE 1 . 2 THE MARKET-ORIENTATED FIRM & VALUE CREATION
Good profits: are earnt from a customer who perceives value
Creates customers who are loyal, purchase more, & recommend you to others
Bad profits: are earnt at the customer’s expense (e.g. taken advantage of, fines, overcharging)
Value: perceived benefit(s) of a product / brand, relative to its costs
Benefit: all tangible & intangible desirable attributes of product consumed over life of ownership
Customers define benefits in terms of results delivered (not in terms of product & service
features): improved performance, productivity, experience, & reduced risk
Tools for creating value through benefits:
Product: features, performance, conformance, reliability, packaging, design
Support services: distribution, installation, merchandising, training, maintenance, consulting,
information management
Relationship management: competence, courtesy, credibility, reliability, responsiveness,
communication
Image: company reputation, brand reputation, atmosphere, promotion, media / publicity
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Document Summary

Marketing: the activity, set of institutions, & process of creating, communicating, delivering, & exchanging offerings that have a value for customers, clients, partners, & society at large: an approach to doing business. The whole business seen from the customer"s po . Stages of marketing evolution: production era: build it, they will buy it, sales era: make the customers want to buy it, marketing department era: take customer insights into consideration. Dedicate a department: marketing organisation era: customers" wants / needs at the centre of the organisation. 2 the market-orientated firm & value creation. Good profits: are earnt from a customer who perceives value: creates customers who are loyal, purchase more, & recommend you to others. Bad profits: are earnt at the customer"s expense (e. g. taken advantage of, fines, overcharging) Marketing myopia: short sightedness by business firms causing management to define their business (& hence their competitors & market opportunities) too narrowly: e. g. myopid description: electricity company.

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