Rococo
Principles and Practice of Marketing
Class N°1 - 30/09/2013
Chapter 1: Fundamentals of Modern Marketing
1 The Marketing Concept
a) Traditional Marketing
Peter Drucker: “The basic function of marketing is to attract and retain customers at a profit”.
Central role in business: creation and retention of customers.
Purpose of Marketing is not to chase any custom er at any price.
Keeping them by providing satisfaction / attracting them by creating added value.
This basic notion lacks a crucial point => the corporate achievement (shares, profit…)
b) Marketing Concept
The Marketing Concept: The achievement of corporate goals through meeting and exceeding customer needs and expectations better than the competition.
Customer orientation = corporate activities are focused upon providing customer satisfaction.
Integrated effort = all staff accept the responsibility for creating customer satisfaction.
Goal achievement = the belief that corporate goals can be achieved through customer satisfaction.
c) Production vs Marketing Orientation
Production Orientation
Goal: To attain economies of scale by producing a limited range of products in form that minimizes production costs. (It doesn’t involve customer satisfaction)
Marketing Orientation
Goal: To change and evolve by focusing on customer needs. Companies need to understand and listen to consumers in order to deliver a product/services needed and wanted by them.
Success Story: Toyota changed his orientation by focusing on products wanted by consumers (cheap & reliable)
d) Market-driven vs Internally Orientated
e) Efficiency vs Effectiveness
Efficiency: Running the business well with cost focus. (High inputs / Low outputs)
Effectiveness: Making the good choices with consumer focus. (Good market, opportunities…)
Ineffective
Effective
Inefficient
Goes out of business
Survives
Efficient
Dies slowly
Does well / Thrives
Success Story: Samsung thrives on efficiency and
Class N°1 - 30/09/2013
Chapter 1: Fundamentals of Modern Marketing
1 The Marketing Concept
a) Traditional Marketing
Peter Drucker: “The basic function of marketing is to attract and retain customers at a profit”.
Central role in business: creation and retention of customers.
Purpose of Marketing is not to chase any custom er at any price.
Keeping them by providing satisfaction / attracting them by creating added value.
This basic notion lacks a crucial point => the corporate achievement (shares, profit…)
b) Marketing Concept
The Marketing Concept: The achievement of corporate goals through meeting and exceeding customer needs and expectations better than the competition.
Customer orientation = corporate activities are focused upon providing customer satisfaction.
Integrated effort = all staff accept the responsibility for creating customer satisfaction.
Goal achievement = the belief that corporate goals can be achieved through customer satisfaction.
c) Production vs Marketing Orientation
Production Orientation
Goal: To attain economies of scale by producing a limited range of products in form that minimizes production costs. (It doesn’t involve customer satisfaction)
Marketing Orientation
Goal: To change and evolve by focusing on customer needs. Companies need to understand and listen to consumers in order to deliver a product/services needed and wanted by them.
Success Story: Toyota changed his orientation by focusing on products wanted by consumers (cheap & reliable)
d) Market-driven vs Internally Orientated
e) Efficiency vs Effectiveness
Efficiency: Running the business well with cost focus. (High inputs / Low outputs)
Effectiveness: Making the good choices with consumer focus. (Good market, opportunities…)
Ineffective
Effective
Inefficient
Goes out of business
Survives
Efficient
Dies slowly
Does well / Thrives
Success Story: Samsung thrives on efficiency and