Marketing Chapter 1 Notes
Marketing: managing profitable customer relationships to capture value from the customer
1. Customer Wants, Needs and Demands
Needs: State of deprivation
Wants: Form human needs take as shaped by culture and individual experiences
Demands: Human wants that are backed up by buying power
- To determine N, W, D companies conduct consumer research and analyze mountains of
2. Market Offerings- Products, Services & Experiences
- Fulfills Needs and wants
Market Offering: Some combo of products, services, information or experiences offered to a
market to satisfy a need or want.
o Physical products and services (ie. Banking, airlines, hotels)
o Other entities such as persons, places, organizations, information ideas
Marketing Myopia: Mistake of paying more attention to the specific products a company offers
than to the benefits and experiences produced by these products. Losing the underlying need,
hence the customer wants the product but doesn‟t need it.
- Important to look beyond the attributes of products and services to create a brand
3. Customer Value and Satisfaction
- Customers form expectations about value and satisfaction that various market offerings will
deliver and buy accordingly
- Important to set the right level of expectations so that customers continue to want the
product but are not disappointed by the value it delivers
4. Exchange and Relationships
Exchange: Act of obtaining a desired object from someone by offering something in return
Politicians want votes
Churches want members
- This allows you to retain customers and grow a business
- Also provides superior customer value
Market: Set of all actual and potential buyers of a product or service
- Search for buyers, identify needs, design good market offerings, set prices, promote, store
and deliver them
- “How should our customers reach us?”
- “How can our customers reach each other?” - Interact with customers to better understand their needs and follow through directly to the
- Markets can be affected by major environmental forces:
o Physical location
o Technology available
o Politics/ legality of the location
o Social/ cultural aspects of the location
Suppliers and/or Intermediaries Consumer
Major environmental forces
Designing a Customer Driven Market Strategy:
Marketing management: The art and science of choosing target markets and building profitable
relationships with them. Find, attract, keep and grow customers by creating, delivering and
communicating superior customer value
“What‟s our target market?”
“How can we serve them best”
o How to differentiate and position itself in the marketplace.
Provide a reason for the customer to choose YOU over the competitor.
Production concept: Customers will favour products that are available and highly affordable.
Organizations should therefore focus on improving production and distribution efficiency.
Can lead to market myopia
o Thinking to narrowly and not focusing on customer needs.
Product concept: Consumers will favour products that offer the most in quality, performance and
Making continuous improvements
May cause marketing myopia
o Ie. Not looking for a better mousetrap, but a different solution to mice Must be designed, packaged and priced attractively.
Selling concept: Consumers will not buy enough of the firm‟s products, unless it undertakes a large-
scale selling and promo effort
For unsought goods such as blood donations
Sell on product benefits
Focuses on sales transactions rather than long-term, profitable relationships with customers
Marketing concept: Achieving organizational goals depend on knowing the needs and wants of the
target market and delivering the desired satisfaction better than the competitors.
Customer focus and value are the paths to sales and profits
„Sense and respond‟ not „make and sell‟
Find the right products for the customers
Social Marketing Concept: Questions whether the pure marketing concept overlooks possible
conflicts between consumer short-term wants and long-run welfare.
Improves both consumers and society‟s well-being
Socially and environmentally responsible marketing
o Water bottle industry can harm the future because of the plastic.
Balance of 3 things: company profits, consumer wants and society‟s interests.
Preparing an Integrated Marketing Plan and