Marketing Core Concepts

Core Concepts of Marketing

• Marketing revolves around understanding customer needs while delivering value
• Core marketing concepts provide fundamental principles that guide creating, communicating, and effectively delivering products and services

Needs, Wants, and Demands

• Needs are basic human necessities, including food, water, shelter, and safety
• Wants are needs shaped by culture, personality, and individual preferences
• Demands are wants supported by purchasing power

Market Offerings

• Market offerings include products (tangible items), services (intangible benefits), and experiences that can satisfy customer needs
• Apple’s market offerings include iPhones (products), Apple Music (services), and user experience (experience)

Value and Satisfaction

• Value represents perceived benefits relative to cost; customers seek maximum value
• Satisfaction is the level of happiness felt when a product meets or exceeds expectations

Exchange and Transactions

• Marketing involves an exchange of value between a buyer and a seller
• Transactions occur when goods, services, or money change hands
• Paying for coffee exemplifies a transaction where money exchanges for a physical product

Markets

• A market comprises the set of actual and potential buyers of a product or service
• Consumer Market (B2C) involves individuals purchasing for personal use
• Business Market (B2B) involves companies selling to other businesses
• Government Market includes government agencies purchasing goods and services
• Global Market involves international buyers and sellers

Marketing Mix

• The 4Ps (Product, Price, Place, Promotion) are key success factors
• The extended 7Ps expand marketing considerations, mainly for services, by including People, Process, and Physical Evidence

Customer Relationship Management (CRM) and Loyalty

• CRM builds relationships via customer engagement and personalized experiences
• Retaining existing customers can be more cost-effective than acquiring new ones

Marketing Environment

• Microenvironment: includes suppliers, competitors, customers, and intermediaries
• Macroenvironment: encompasses economic, technological, political, and cultural influences on marketing strategies

Marketing Process

• The marketing process involves a systematic approach to understanding customer needs and delivering value
• Marketing process outlines how businesses create, communicate, and deliver value to consumers
• Marketing orientation reflects philosophies businesses adopt for goal achievement

Steps of Marketing

• Step 1: Understand customer needs, wants, and demands, the market environment, and conduct market research
• Step 2: Define a target market, choose a value proposition, and select a marketing orientation
• Step 3: Develop the Marketing Mix (4Ps) including product features, pricing, distribution channels, and promotional strategies
• Step 4: Build customer relationships and enhance engagement via CRM, loyalty programs, and digital platforms
• Step 5: Capture value from customers by ensuring satisfaction and improving customer lifetime value

Marketing Orientation

• Marketing effectiveness is measured through sales growth, brand awareness, and customer feedback

Marketing Orientation Philosophies

• Production Orientation focuses on efficiency and affordability; it assumes customers prefer widely available, affordable products
• Product Orientation involves product quality, innovation, and features; assumes customers prioritize superior products and are willing to pay
• Sales Orientation relies on aggressive tactics; assumes consumers will buy more if pushed through sales efforts
• Marketing Orientation prioritizes understanding and satisfying customer needs; assumes creating value delivers customer satisfaction
• Societal Marketing Orientation balances customer needs, company profits, and social well-being; businesses should operate ethically and sustainably

Comparison: Marketing vs Sales

• Marketing identifies customer needs and builds relationships
• Sales persuades customers to purchase
• Marketing focuses on customer needs and market demand
• Sales goal is closing deals and generating revenue
• Marketing goal is brand awareness and relationship building
• Marketing has a strategic, research-driven approach
• Sales applies a tactical, direct approach
• Marketing identifies and nurtures leads
• Sales converts leads into customers
• The time frame for marketing is long-term
• The time frame for sales is short-term
• Marketing involves advertising, branding, content, SEO, and social media
• Strategies for Sales involve personal selling, discounts, negotiations, and cold calling
• Marketing employs indirect communication with customers
• Sales involves direct (one-on-one) interaction with customers
• Marketing measurements are about market share, brand awareness, and customer engagement
• Sales effectiveness is measure with sales volume, revenue growth, and conversion rate

Marketing and Sales Working Together

• Marketing generates leads for sales to convert into customers
• Marketing builds brand awareness, and sales builds direct customer relationships
• Through marketing, customers are educated about products
• Sales teams offer customer feedback guiding marketing strategies
• Marketing promotes products (ads, social media etc)
• Sales closes deals (in store, online etc)