Lesson 1 - Business Marketing

Marketing
- activities of a company associated with buying and selling products or services
- creating, communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society
- focuses on the value that products can provide to the customers involved
- manages profitable relationships
- also known as advertising

4 P’s of Marketing
- Product - identification, selection, and development of a product
- Price - determination of price
- Place - selection of distribution channel to reach the customer’s location
- Promotion - development and implementation of a promotional strategy

MARKETING SELLING
> thinking about the business in terms of > short term need to close a sale; tricks and
customer needs and their satisfaction; consists techniques of getting people to exchange their
of tightly integrated effort. cash for the product.
Marketing and Selling should be closely related to each other; one cannot exist without the other.

Lesson 1.1 - Five Core Concepts in Marketing

1. Needs, Wants, and Demands - must be supported by the purchasing power, the person’s
ability to buy goods and services.
Needs Wants
- necessities or essentials for survival - desires and not essential for survival
- do not change over time - can change over time
- non-fulfillment leads to adverse - non-fulfillment may result in mental
outcomes distress
- all individuals have same basic needs - wants may differ to each individual
Maslow’s Hierarchy of Needs - a theory of motivation which states that five categories of human
needs dictate an individual's behavior; ordered in terms of prepotency and degree of satisfaction.

Clayton Alderfer’s ERG Theory - he extended and simplified Maslow’s Hierarchy to a shorter
set of three needs: Existence, Relatedness, and Growth; seen as a continuum.

2. Market Offerings - a product or service that a company provides to customers to meet

their needs.
- Physical Products - tangible
- Services - intangible
- Experiences - intangible
 3. Customer Value and Satisfaction
- Customer Value - consumers see value when the benefits they expect to receive
exceeds the expected cost and effort in acquiring the product.
- Customer Satisfaction - consumer’s assessment of how well that value was
delivered.

4. Exchange, Transactions, and Relationships - marketers should also focus on maintaining

a good relationship with customers to ensure continuous satisfaction with their products.

5. Market - composed of buyers and potential buyers; marketers should have full knowledge
and understanding of the market to have profitable customer relationships.

Lesson 1.2 - Evolution to the Approach of Marketing

Production Orientation Era:
● Prevailing Attitude - “Consumers favor products that are available and highly
affordable.”
● Success Mantra - “Improve production and distribution.”
● Rule - “Availability and affordability is what the customer wants.”
● Advertising - “Promoting products with lesser quality”
● Narrow product lines
● Price based on cost of production and distribution
● Limited research
● Packaging to protect product
● Minimum promotion
Product Orientation Era:
● Prevailing Attitude - “Consumers favor products that offer the most quality, performance,
and innovative features.”
● Marketer’s Mantra - “A good product will sell itself, so it does not need promotion.”
● Production to product and from the quantity to quality
Sales Orientation Era:
● Prevailing Attitude - “Consumers will buy products only if the company promotes or
sells these products.”
● Marketer’s Mantra - “Creative advertising and selling will overcome consumers’
resistance and convince them to buy.”
● Increased competition and variety of choices or options available to customers; changed
the marketing approach
● Rise of advertising
Marketing Orientation Era:
● Focus - needs and wants of the customers
● Marketer’s Mantra - “The customer is king! Find a need and fill it”
● Shift from production to product and from product to customers
● Approach is shifted to delivering satisfaction better than other competitors.
Relationship Marketing Orientation Era:
● Focus - needs or wants of target markets
● Aim - delivering superior value
● Marketer’s Mantra - “Long-term relationships with customers and other partners lead to
successes.”
● Modern approach of marketing

SUMMARY:
1. Production Era: “Cut costs. Profits will take care of themselves.”
2. Product Era: “A good product will sell itself.”
3. Sales Era: “Selling is laying the bait for the customer.”
4. Marketing Era: “The customer is king!”
5. Relationship Marketing Era: “Relationship with customers determine our firm’s future.”

Lesson 2 - Customer Relationship Marketing

Customer Value
- a customer’s perceived preference to achieve customer’s goals and purposes in use.
- unique combination of benefits received by targeted buyers.

Desired Value
- what customers desire in a product or service.

Perceived Value
- the benefit that a customer believes they will receive from a product after its purchase.

Value Proposition
- a marketing statement that a company uses to summarize why a consumer should buy a
product or service.
- to convince potential customers.
- a unique value proposition can be developed based on:
> Best Price
> Best Product
> Best Service
Customer Satisfaction
- when an offering meets the customer’s expectations.
- two critical ways to improve customer satisfaction:
> established appropriate expectations in the minds of customers
> deliver on those expectations
- how to improve customer satisfaction:
> underpromise and overdeliver
> empower consumer-facing personnel
> offer customers warranties and guarantees

Customer Relationship
- development of an ongoing connection between a company and its customers.

Relationship Marketing
- focuses on developing customer loyalty and long-term customer engagement
- integrates product into the customer’s life and customizing it in accordance to their needs
- two key elements:
> Promise
> Trust

How To Improve And Enhance Loyalty:

1. Stay in touch, even after the purchase
- satisfied clients who talk about your product have higher influence than
advertisements
2. Listen to client complaints
- when you take into account the comments of dissatisfied customers, they can be
converted into loyal customers
3. Don’t let the price alone define your brand
- there are other reasons why people buy product and service, like convenience and
comfort

TERMS:
● Warranty - provide customers with legally-ensured service replacement or correction of
issues available for a given time period.
● Guarantee - a promise or assurance from the manufacturer or seller that the product
will work as described or meet certain quality standards.
Lesson 2.1 - Types of Relationship Marketing
● Experiential Marketing
- creating memorable and innovative customer experiences to create deep
emotional connections between the customers and the brand.
● Permission Marketing
- customers must first give their permission before the brand can send them
promotional messages.
- use of digital platforms with direct access to consumers, such as email or social
media.
- Traditional Direct Marketing - little is known about the target audience other than
the postal code.
● One-To-One Marketing (1:1 or Personalized Marketing)
- getting to know the individual choices made by a customer, then tailoring
marketing outreach to each customer differently based on those choices.
- Personalization - the company learns the personal preferences and tastes of each
consumer and customizes its marketing plan to them.
- Customization - gives the individual customer the ability to customize the product
to their own tastes.

Lesson 2.2 - Model of the Buyer Decision Process