MUSI 3338 Lecture Notes - Lecture 37: Marketing Mix, Customer Relationship Management, History Of Marketing
9 May 2018
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Marketing is defined as “the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers, clients,
partners, and society at large.”
There are 4 activities or components of marketing:
1. Creating. The process of collaborating with suppliers and customers to create
offerings that have value.
2. Communicating. Broadly, describing those offerings, as well as learning from
customers.
3. Delivering. Getting those offerings to the consumer in a way that optimizes value.
4. Exchanging. Trading value for those offerings.
The traditional way of viewing the components of marketing is via the four Ps:
1. Product. Goods and services (creating offerings).
2. Promotion. Communication.
3. Place. Getting the product to a point at which the customer can purchase it
(delivering).
4. Price. The monetary amount charged for the product (exchanging).
The four P’s were called the Marketing Mix in the early 50s, but it was updated to be more fitting
and specific.
In the center of everything marketing does is value. Marketing is composed of four activities
centered on customer value: creating, communicating, delivering, and exchanging value. Value
means the benefits buyers receive that meet their needs, i.e. what the customer gets by
purchasing and consuming a company’s offering. So although the offering is created by the
company, the value is determined by the customer.
Our goal as marketers is to create a profitable exchange for consumers.
Value = Benefits received - [Price + Hassle]
Hassle is the time and effort the consumer puts into shopping process. It’s a personal equation
because it will be different per each consumer’s judgement on the benefits received. Like if you
and a bunch of friends order the same meal at a restaurant, some will like it better than others
based on your own individual tastes, etc.
The marketing concept requires that marketers seek to satisfy customer wants and needs.
Firms operating with that philosophy are said to be market oriented. On the flip side, companies
can be production oriented, believing that the best way to compete was by reducing production
costs - i.e. companies thought that good products would sell themselves.
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Marketing is defined as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. There are 4 activities or components of marketing: creating. The process of collaborating with suppliers and customers to create offerings that have value: communicating. Broadly, describing those offerings, as well as learning from customers: delivering. Getting those offerings to the consumer in a way that optimizes value: exchanging. The traditional way of viewing the components of marketing is via the four ps: product. Getting the product to a point at which the customer can purchase it (delivering): price. The monetary amount charged for the product (exchanging). The four p"s were called the marketing mix in the early 50s, but it was updated to be more fitting and specific. In the center of everything marketing does is value.
