Introduction to Marketing

Introduction to Marketing

Two kinds of market in the extreme opposite side.

• Seller Market
• Buyer Market

Seller Market tends to be product-focus marketing. The profitability comes from a product-focused market is going to come from volume. The volume is tied to market share.

In Buyer Market, the profit does not comes from volume, but from the creating value.

Customer share. Build up customer loyalty, that means, they want to pay premium price for your service time after time and after time. It's difficult to get a new customer, but it's cheaper to retain customers over time.

In the buyer market, the profit comes from customer loyalty, premium price and cross selling.

Marketing Orientations

1. Product Orientation - Persuade customer to want what the firm has
• Focus on volume and market share, sales as many as you can
•  Generic Products
• Bigger company wins
• Larger market share and lower cost
• Lower cost is big strategic advantage
2. Marketing Orientation - Persuade firm to offer what the customer wants
• Differentiated product/service
•  Increase product quality and deliver better product
3. Experience Orientation - Think about the transaction over time. Manage the customer's entire experience with the firm
• Focus on transformation
• customers become as co-creator of value
4. Trust Orientation - Prioritize building a relationship of trust and discipline.

 

Three Principles of Marketing

1. Principle of Customer Value
2. Principle of Differentiation
3. Principle of Segmentation, Targeting and Positioning

 Tools to deliver these three marketing principles: 4P of Marketing

1. Product - Seller puts into the exchange
2. Promotion - The way the seller communicates the benefits about the product to customers
3. Place - The way the seller delivers the product to the customer
4. Price - Buyer puts into the exchange