Marketing: Lecture 1 - Core Concepts, Strategies, and the Digital Age

This document presents a detailed lecture on the introduction to marketing, covering core concepts, the marketing process, and customer value. It explores the importance of understanding the marketplace, identifying customer needs, and developing customer-driven marketing strategies. The lecture delves into customer relationship management, strategies for creating and capturing customer value, and examples of modern marketing department structures. It also discusses the roles and responsibilities within the marketing field, and the impact of digital technologies. The lecture references key marketing texts and provides discussion questions to reinforce learning. The document is a valuable resource for students studying marketing principles, providing a solid foundation in the subject.

Lecture 1:
Introduction to Marketing

1. Define marketing and outline the steps in the marketing process.
2. Explain the importance of understanding the marketplace and customers and
identify the five core marketplace concepts.
3. Identify the key elements of a customer value-driven marketing strategy and
discuss the marketing management orientations that guide marketing strategy.
4. Discuss customer relationship management and identify strategies for creating
value for customers and capturing value from customers in return.
5. Ilustrating some examples of modern marketing department’s structure and
operation.
6. Discuss the roles, responsibilities and competencies required to work in marketing
field.
7. Discuss the role of Marketing in Digital Age: Online, Mobile, and Social Media
marketing
Topic Outline

First Stop: Amazon
Amazon does much more than just sell goods online. It
engages customers and creates satisfying customer
experiences. “The thing that drives everything is creating
genuine value for customers,” says Amazon founder Jeff
Bezos.

Learning Objective 1
Define marketing and outline the steps in the marketing
process.

What is Marketing?

What is Marketing?
Marketing is a process by which companies create value
for customers and build strong customer relationships in
order to capture value from customers in return.

What is Marketing?
Marketing is all around you, in good old traditional forms
and in a host of new forms, from websites and mobile apps
to online videos and social media.

Figure 1.1. The Marketing Process: Creating
and Capturing Customer Value

Learning Objective 2
Explain the importance of understanding the marketplace
and customers and identify the five core marketplace
concepts.

Understanding the Marketplace
and Customer Needs
Needs are states of felt deprivation.
Wants are the form human needs take as they are shaped by culture
and individual personality.
Demands are human wants that are backed by buying power.
Staying close to customers: Airbnb’s CEO Brian Chesky and co-founder
Joe Gebbia regularly stay at the company’s host locations, helping
them shape new customer solutions based on real user experiences.

Understanding the Marketplace an
Customer Needs
• Market offerings are some combination of products,
services, information, or experiences offered to a market
to satisfy a need or want.
• Marketing myopia—paying more attention to the
specific products than to the benefits and experiences
produced

Understanding the Marketplace
and Customer Needs
Customers form expectations about the value and
satisfaction of market offerings.
– Satisfied customers buy again
– Dissatisfied customers switch to competitors
Exchange is the act of obtaining a desired object
from someone by offering something in return.
Marketing actions try to create, maintain, and
grow desirable exchange relationships.

Market

Understanding the Marketplace
and Customer Needs
A market is the set of actual and potential buyers.
Consumers market when they:
• search for products
• interact with companies to obtain information
• make purchases

Understanding the Marketplace and
Customer Needs
Figure 1.2 A Modern Marketing System

Learning Objective 3
Identify the key elements of a customer value-
driven marketing strategy and discuss the
marketing management orientations that guide
marketing strategy.

Designing a Customer Value-Driven
Marketing Strategy
Marketing management is the art and science of choosing
target markets and building profitable relationships with
them.
• What customers will we serve (target market)?
• How can we best serve these customers (value
proposition)?

Designing a Customer
Value-Driven Marketing Strategy
A brand’s value proposition is the set of benefits or values
it promises to deliver to customers to satisfy their needs.
Value propositions: Sonos positions its Sonos One with Amazon
Alexa as “The smart speaker for music lovers.” It gives you all
the advantages of Alexa but with high-quality Sonos sound.

PRODUCTION
CONCEPT
Management orientations
PRODUCT
CONCEPT
SELLING
CONCEPT
MARKETING
CONCEPT
SOCIETAL
CONCEPT

Designing a Customer
Value-Driven Marketing Strategy
Figure 1.3 Selling and Marketing Concepts Contrasted

Designing a Customer
Value-Driven Marketing Strategy
Societal marketing:
The company’s marketing decisions should consider consumers’
wants, the company’s requirements, consumers’ long-run
interests, and society’s long-run interests.
Figure 1.4 Three Considerations Underlying the Societal
Marketing Concept

Designing a Customer
Value-Driven Marketing Strategy
The marketing mix is comprised of a set of tools known a
the 7 Ps:
•product
•price
•promotion
•Place
•Process
•People
•Physical evidence
Integrated marketing program—a comprehensive plan
that communicates and delivers intended value

Learning Objective 4
Discuss customer relationship management and identify
strategies for creating value for customers and capturing
value from customers in return.

Managing Customer Relationships
and Capturing Customer Value
Customer relationship management—the overall process
of building and maintaining profitable customer
relationships by delivering superior customer value and
satisfaction.

Managing Customer Relationships
and Capturing Customer Value
Relationship Building Blocks
• Customer-perceived value
– The difference between total customer perceived benefits and customer
cost
• Customer satisfaction
– The extent to which perceived performance matches a buyer’s
expectations
Customer satisfaction: Customer
service champion L.L.Bean was
founded on a philosophy of
complete customer satisfaction. “If
you are not 100% satisfied with
one of our products, you may
return it within one year of
purchase for a refund.”

Customer Satisfaction
Expected
level
Performance
SATISFACTION
DISSATISFACTION

Managing Customer Relationships
and Capturing Customer Value
Customer lifetime value is the value of the entire stream
of purchases that the customer would make over a lifetime
of patronage.
Customer lifetime value: To keep
customers coming back, Stew Leonard’s
has created the “Disneyland of dairy
stores.” Rule #1—The customer is
always right. Rule #2—If the customer is
ever wrong, reread Rule #1.

Managing Customer Relationships
and Capturing Customer Value
Share of customer is the portion of the
customer’s purchasing that a company gets
in its product categories.
Customer equity is the total combined
customer lifetime values of all of the
company’s customers.

Learning Objective 5
Ilustrating some examples of modern marketing
department’s structure and operation.

Example 1: The Function-Centric Organisation

Example 2: The Geographic-Centric Organization

Examples 3: The Channel-Centric Organisation

Example 4: The Product-Centric Organization

Example 5: The Segment-Centric Organization

Learning Objective 6
Discuss the roles, responsibilities and competencies
required to work in marketing field.

The Role of Marketing Manager
If you are a Marketing Manager, your tasks are:
• Identify, develop, or evaluate marketing strategy, based on knowledge of
establishment objectives, market characteristics, and cost and markup
factors.
• Formulate, direct, or coordinate marketing activities or policies to promote
products or services, working with advertising or promotion managers.
• Evaluate the financial aspects of product development, such as budgets,
expenditures, research and development appropriations, or return-on-
investment and profit-loss projections.
• Develop pricing strategies, balancing firm objectives and customer
satisfaction.
• Compile lists describing product or service offerings.

• Direct the hiring, training, or performance evaluations of marketing or
sales staff and oversee their daily activities.
• Consult with product development personnel on product specifications,
such as design, color, or packaging.
• Use sales forecasting or strategic planning to ensure the sale and
profitability of products, lines, or services, analyzing business
developments and monitoring market trends.
• Negotiate contracts with vendors or distributors to manage product
distribution, establishing distribution networks or developing distribution
strategies.
• Coordinate or participate in promotional activities or trade shows, working
with developers, advertisers, or production managers, to market products
or services.
The Role of Marketing Manager

If you are a Market Research Analysts and Marketing Specialists, your tasks
are:
• Prepare reports of findings, illustrating data graphically and translating complex
findings into written text.
• Collect and analyze data on customer demographics, preferences, needs, and
buying habits to identify potential markets and factors affecting product demand.
• Conduct research on consumer opinions and marketing strategies, collaborating
with marketing professionals, statisticians, pollsters, and other professionals.
• Measure and assess customer and employee satisfaction.
• Devise and evaluate methods and procedures for collecting data, such as surveys,
opinion polls, or questionnaires, or arrange to obtain existing data.
The role of Market Research Analysts
and Marketing Specialists

Wanna explore more about the role of other position in
marketing deparment, please access the following website:
https://www.onetonline.org/
Or
Appendix 3 – Page 631– “Principle of Marketing” Book
Other marketing positions

Learning Objective 7
Discuss the role of Marketing in Digital Age

The role of marketing in digital age
• We live in the age of Internet of Things, where everything is
connected to everything else.
• Digital and social media marketing involves using digital
marketing tools such as websites, social media, mobile ads and
apps, online videos, email, and blogs that engage consumers
anywhere, at any time, via their digital devices.

• Social media provide exciting opportunities to extend customer
engagement and get people talking about a brand.
• Mobile marketing: Using mobile channels to stimulate immediate
buying, make shopping easier, and enrich the brand experience.
• Big Data and AI: Brands can use big data to gain deep customer
insights, personalize marketing offers, and improve customer
engagements and service.
The role of marketing in digital age

Basing on what we have learnt in today lesson, please discuss in
groups and answer the following question:
What is the role of Marketing in an organisation?
Please also give practical examples to support your ideas.
Discussion time!

References
KOTLER, P. and ARMSTRONG, G. (2018) Principles of Marketing, 17th edition. London:
Prentice Hall.
Divakaran, S. (2021). How to Define your Marketing Team Structure. Retrieved July 20, 2021,
from Digital Uncovered: https://digitaluncovered.com/how-to-define-marketing-team-structure/