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Vanderbilt University
Principles of Marketing (BUS 2600)
Chapter 1: Introduction to Marketing
What is marketing?
Capturing value from customers in return–usually in the form of profits (this enables
companies to continue providing value in the future)
How do we do this?
Understand the marketplace and customer needs and wants
Research, focus groups, experiments, etc.
Success story: Old Spice–one of the most successful marketing campaigns of
all time
Before the ad, Old Spice’s sales were declining
Research–realized that 60% of men’s body watch were actually
purchased by women (so target the actual customers–women, you should buy
Old Spice for the man in your life)
Essentially targeting women to sell a product that was inherently used
by men (research gave them this insight)
Goal of marketing research: understanding and satisfying customer needs
Needs (physical, social, individual)
Maslow’s hierarchy
…vs. wants–needs that are shaped by culture and personality (the
shape and form that a needs take)
You can have the same need (i.e. food) but different wants (i.e. BBQ
vs. Chinese food depending on if you’re in Nashville or China)
Marketing myopia–occurs when you lose sight of the underlying consumer
need (when you become too focused on improving products and lose sight)
Eventually another company will swing by and find a way to serve
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