ENTREPRENEURIA

L
MARKETING
Week 1 Lecture
April 2024
James McGaughran
 What is Marketing?

McGraw-Hill Education | Fahy & Jobber, “Foundations of Marketing”, Seventh Edition 2

The Nature of Customer Value

Perceived Benefits Perceived Sacrifices

Customer • Product benefits • Monetary costs
Value • Service benefits • Time costs
• Image benefits • Energy costs
• Psychological costs
 Customer Satisfaction

McGraw Hill Education: Fahy and Jobber, “Foundations of Marketing”, Seventh Edition
Delighting Customers & Customer Loyalty

• As part of its ‘Generosity

Campaign’, the Danish chocolate
maker Anthon Berg developed the
‘Generous Upgrader’ at
Copenhagen Airport, where
passengers could scan their tickets
and if they had a poor seat.

• For example, at the back of the

plane – they would get a
complimentary box of chocolates
and Anthon Berg flying
merchandise
McGraw-Hill Education | Fahy and Jobber, “Foundations of Marketing”, Seventh Edition 5
 The Nature of Customer Value

• Airbnb offers one-of-a-kind stays

and unique experiences that make
it possible for guests to experience
the world in a more authentic,
connected way.

• Airbnb’s ‘Live There’ campaign

leverages user-generated content
by instructing its users to shoot • https://digitalready.co/blog/anatomy-successful-digital-marketing-campaign-airbnbs-live-there-campaign

videos and post on social media

with the hashtag #LiveThere,
showcasing their unique traveling
experiences.
McGraw-Hill Education | Fahy and Jobber, “Foundations of Marketing”, Seventh Edition 6
 The Nature of Customer Value

Price value Performance value

Customers perceive a product as being Customers look for the latest features,
cheaper than those offered by functionality, convenience and quality
competitors
(e.g. Dyson)
(e.g. Ryanair, Aldi, easyCar)

Customer Value

Emotional value Relational value

Sometimes the only differences that The quality of service received by a
exist between brands is based on customer engenders a high level of
customer perceptions (e.g. Volvo & trust which leads to a strong and
safety, Coca Cola & joy, Chanel & reciprocal relationship with customers
luxury)

McGraw-Hill Education | Fahy & Jobber, “Foundations of Marketing”, Seventh Edition 7

• Customer Relationship • Customer Value Proposition &
Management Unique Selling Point
• (CRM) • (USP)

• Organizations have become • Organizations have a clearly

proficient users of customer defined customer value
relationship management systems proposition or USP and achieve a
(CRMs) to get to know their leadership position in a form of
customers better and to interact customer value e.g. Ryanair is a
with them on a regular basis value price leader in aviation

McGraw-Hill Education | Fahy and Jobber, “Foundations of Marketing”, Seventh Edition 8

 Early Business Orientations

McGraw-Hill Education | Fahy & Jobber, “Foundations of Marketing”, Seventh Edition 9

 Evolving Business Orientations

Production
Orientation

Sustainable Societal
Product
Marketing Marketing
Orientation
Orientation Orientation

Social
Sales
Marketing
Orientation
Orientation

Marketing
Orientation

McGraw-Hill Education | Fahy & Jobber, “Foundations of Marketing”, Seventh Edition 10

Market-Oriented vs Internally Orientated
Businesses
Market-orientated businesses Internally orientated businesses
Customer concern throughout business Convenience comes first
Know customer choice criteria and match Assume price and product performance key
with marketing mix to most sales
Segment by customer differences Segment by product
Invest in market research (MR) and track Rely on anecdotes and received wisdom
market changes
Welcome change Cherish status quo
Try to understand competition Ignore competition
Marketing spend regarded as an investment Marketing spend regarded as a luxury

Innovation rewarded Innovation punished

Search for latent markets Stick with the same
Be fast Why rush?
Strive for competitive advantage Happy to be me-too

McGraw-Hill Education | Fahy & Jobber, “Foundations of Marketing”, Seventh Edition 11

The Scope of Marketing

Marketing is not only used in commercial contexts i.e. solely

used by companies selling products and services

Marketing is extensively used in non-profit, social, educational

and political contexts as well

The use of marketing takes many forms in the arts and media

Social marketing is sometimes seen as restricted to a client

base of not-for-profit organizations, health services groups and
government agencies

As organizations recognise their societal responsibilities, many

are involved in social [marketing] programmes

McGraw-Hill Education | Fahy & Jobber, “Foundations of Marketing”, Seventh Edition 12

• Social marketing refers to the use • The VegPower's highly successful
of marketing techniques in order ‘Eat Them to Defeat Them’
to change or maintain people’s campaign depicted vegetables as
behaviour for the benefit of the villains and children as
individual or society as a whole. superheroes to encourage them to
eat more vegetables.
• Familiar social campaigns include,
for example, anti-smoking, drink
aware, sun safety, water safety,
sexual health and exercise.

McGraw-Hill Education | Fahy and Jobber, “Foundations of Marketing”, Seventh Edition 13

Evolving Core Concepts of Marketing

Transactions

Understanding &
responding to the
customer & their
evolving needs,
wants & demands

Exchange

McGraw-Hill Education | Fahy & Jobber, “Foundations of Marketing”, Seventh Edition 14

 The Marketing Mix

Product

The
Promotion Marketing Price

Mix

Place

McGraw-Hill Education | Fahy & Jobber, “Foundations of Marketing”, Seventh Edition 15

Marketing, Consumption and Society
• The nature of marketing can be considered from three
perspectives:
Managerial View Consumer View Societal View

Encompasses Consumers co- Considers

marketing as a create value relationship with
functional activity through reviewing society as a whole
and as a philosophy products &
services, producing
user-generated Businesses and
Puts customers at content & working consumers alike are
the center of all with companies to becoming
decision-making generate new increasingly aware
and activity product ideas & of the need to
improve service consider the
societal impact of
commercial
activities

McGraw-Hill Education | Fahy & Jobber, “Foundations of Marketing, Seventh Edition" 16

Macromarketing

• The field of research within marketing that studies the role of

marketing in society considering issues such as:
Marketing systems

Market regulation

Ethics

Social responsibility

Sustainable marketing

McGraw-Hill Education | Fahy & Jobber, “Foundations of Marketing”, Seventh Edition 17

Chapter Summary
1. The marketing concept is a business philosophy that
puts the customer at the center of things.
Implementing the marketing concept requires an
integrated effort throughout the company.
2. Customer value is the difference between the
perceived benefits from consuming a product or
service and the perceived sacrifice involved in doing
so.
3. The way that we think about marketing has moved
from an internal focus on production and sales towards
a more outward-looking focus on customers and
markets.

McGraw-Hill Education | Fahy & Jobber, “Foundations of Marketing”, Seventh Edition 18

Chapter Summary

4. The central role of marketing in the organisation is to provide a

greater understanding of the needs and wants of consumers.
5. The scope of marketing is broad, involving non-business as
well as business contexts.
6. Marketing is also controversial in that it has many negative
connotations relating to the creation of unnecessary desires
among consumers.
7. There are three main perspectives through which marketing is
viewed - the managerial perspective, the consumer perspective
and the societal perspective.

McGraw-Hill Education | Fahy & Jobber, “Foundations of Marketing”, Seventh Edition 19

McGraw-Hill Education | Fahy & Jobber, “Foundations of Marketing”, Seventh Edition 20