CH 1: Marketing: Creating and Capturing Customer Value
5 core customer & marketplace concepts
1. needs, wants and demands
2. market offerings (products, services and experiences)
3. value and satisfaction
4. exchanges and relationships
Needs- States of felt deprivation
Physical: food, clothing, warmth, safety
Social: belonging, affection
Individual: knowledge, self-expression
Wants- The form human needs take as shaped by culture and individual personality.
Shaped by marketing programs
Demands- human wants that are backed by buying power.
Market Offerings- Some combination of products, services, information, or experiences offered to a market to
satisfy a need or want.
Others entities: people, places, organizations, information, ideas
Marketing myopia- The mistake of paying more attention to the specific products a company offers than to the
benefits and experiences produced by these products.
Exchange- The act of obtaining a desired object from someone by offering something in return.
Market- The set of all actual and potential buyers of a product or service.
Core marketing activities: Consumer research, Product development, Communication, Distribution, Pricing,
Consumers do marketing when they search for products and interact with companies and obtain information
and make their purchases.
Marketing management- The art and science of choosing target markets and building profitable relationships
Customer management & demand management
Some companies want to decrease demand since they cannot meet them all. I.e. hydro
Market segmentation- Dividing the market into segments of customers
Target Marketing- Selecting which segments it will go after
Cannot serve everyone.
Value proposition- The set of benefits or values it promises to deliver to consumers to satisfy their needs
How companies differentiate and position themselves in market
5 alternative concepts under which organizations design and carry out their marketing strategies:
1. production concept
2. product concept
3. selling concept
4. marketing concept
5. societal marketing concept
Production Concept- The idea that consumers will favour products that are available and highly affordable and
that the organization should therefore focus on improving production and distribution efficiency.
o May loose sight in real objective- satisfying customer needs and building relationships.
Product Concept- The idea that consumers will favour products that offer the most quality, performance, and
features and that the organization should therefore devote its energy to making continuous product
o Marketing myopia buyers might be looking for a better solution not a better specific product Selling Concept- The idea that consumers will not buy enough of the firm’s products unless it undertakes a
large-scale selling and promotion effort.
o Normally for unsought goods
o Cons: focuses on selling and not building tong-term, profitable customer relationships.
o Sell what they make and not what customers want
Marketing Concept- The marketing management philosophy that achieving organizational goals depends on
knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors
o To find the right products for customers
Societal Marketing Concept- The idea that a company’s marketing decisions should consider consumers’
wants the company’s requirements, consumers’ long-run interests, and society’s long-run interests.