Marketing Summary 2022/2023
Marketing Summary
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,Marketing Summary 2022/2023
Table of Contents
WEEK 1 - INTRODUCTION TO MARKETING 6
THE MARKETING PROCESS 6
SCOPE OF MARKETING FOR NEW REALITIES 6
WHAT IS MARKETING? 6
CORE MARKETING CONCEPTS 6
TARGET MARKETS, POSITIONING, AND SEGMENTATION 7
MARKETING CHANNELS 7
PAID, OWNED, AND EARNED MEDIA 7
MARKETING ENVIRONMENT 7
CREATING CUSTOMER VALUE 7
MARKETING MANAGEMENT PHILOSOPHIES/ ORIENTATIONS 9
MARKETING MANAGEMENT TASKS 12
UPDATING THE FOUR PS 13
WHAT IS MARKETING TODAY? – P. KOTLER 14
NEW MARKETING REALITIES 14
TECHNOLOGY 14
GLOBALIZATION 14
SOCIAL RESPONSIBILITY 14
A DRAMATICALLY CHANGED MARKETPLACE 15
MISCONCEPTIONS IN MARKETING 15
MARKETING PHILOSOPHIES AKA COMPANY ORIENTATIONS 16
MARKETING STRATEGIES AND PLANS 17
MARKETING IMPLEMENTATION, CONTROL, AND PERFORMANCE 20
MARKETING METRICS 20
MARKETING-MIX MODELING 20
MARKETING DASHBOARDS 20
MARKETING CONTROL 21
CORPORATE AND DIVISION STRATEGIC PLANNING 21
DEFINING CORPORATE MISSION 21
ESTABLISHING STRATEGIC BUSINESS UNITS 22
ASSESSING RESOURCES TO EACH SBU 22
ASSESSING GROWTH OPPORTUNITIES 22
ORGANIZATION AND ORGANIZATIONAL CULTURE 23
MISSION STATEMENT 23
MARKETING RESEARCH AND ANALYSIS 23
MARKETING INFORMATION SYSTEM (MIS) 23
FORECASTING AND DEMAND MEASUREMENT 30
THE MEASURES OF MARKET DEMAND 30
THE MARKER DEMAND FUNCTION 31
ESTIMATING CURRENT DEMAND 32
ESTIMATING FUTURE DEMAND 33
WEEK 2 - CONNECTING WITH CUSTOMERS, SEGMENTATION & TARGETING 34
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NEW PRODUCT DEVELOPMENT 34
INTRODUCING NEW MARKET OFFERINGS 34
BUILDING LONG-TERM CUSTOMER RELATIONSHIPS 34
TOPIC 1: BUILDING LONG-TERM LOYALTY RELATIONSHIPS 34
TOPIC 2: ANALYZING CUSTOMER BEHAVIOR 41
TOPIC 3: SEGMENTATION & TARGETING 49
PRODUCT MIX AND NEW OFFERINGS 52
MANAGING NEW PRODUCTS 52
THE INNOVATION IMPERATIVE AND NEW PRODUCT SUCCESS 52
NEW PRODUCT DEVELOPMENT 53
THE CONSUMER-ADOPTION PROCESS 54
PRODUCT LIFE-CYCLE MARKETING STRATEGIES 54
STOECKL, V. E., & LUEDICKE, M. K. (2015): DOING WELL WHILE DOING GOOD? AN INTEGRATIVE REVIEW OF
MARKETING CRITICISM AND RESPONSE 55
MARKETING CRITICISMS 56
MARKETING: UPSIDES AND DOWNSIDES 57
WEEK 3 - BRANDING & POSITIONING 58
BRAND POSITIONING 58
STP PROCESS 58
PROCESS OF POSITIONING 59
CHOOSING A COMPETITIVE FRAME OF REFERENCE 61
COMPETITIVE STRATEGIES FOR MARKET LEADERS 61
BRANDING 64
ROLE OF BRANDS 64
CUSTOMER BRAND EQUITY (CBBE) 66
DEVISING A BRANDING STRATEGY 70
BRAND BUILDING 70
BRANDING STRATEGY/ BRAND ARCHITECTURE - MANAGING MULTIPLE BRANDS 71
WEEK 4 - CREATING & DELIVERING VALUE 75
PRODUCT STRATEGY 75
THE CUSTOMER-VALUE HIERARCHY – PRODUCT LEVELS 75
PRODUCT CLASSIFICATIONS 76
THE PRODUCT HIERARCHY 77
PRODUCT SYSTEM AND MIXES 77
CONSUMER CONFUSION 78
DIFFERENTIATION 79
PRODUCT MIX PRICING 80
CO-BRANDING AND INGREDIENT BRANDING 80
SERVICES 81
FOUR DISTINCTIVE CHARACTERISTICS OF SERVICES 81
CATEGORIES OF SERVICE MIX 82
THE NEW SERVICES REALITIES 83
MANAGING SERVICE QUALITY 85
MANAGING CUSTOMER EXPECTATIONS 85
MANAGING PRODUCT-SUPPORT SERVICES 86
PRICE 87
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WHICH FACTORS DETERMINE COMPANIES’ PRICING DECISIONS? 88
SETTING THE PRICE IN SIX STEPS 88
ADAPTING THE PRICE 91
INITIATING AND RESPONDING TO PRICE CHANGES 92
PLACE 93
MARKETING (TRADE/DISTRIBUTION) CHANNELS 93
MULTI- VS. OMNI-CHANNEL MANAGEMENT 97
WEEK 5 – VALUE COMMUNICATION & THE FUTURE OF MARKETING 98
INTEGRATED MARKETING COMMUNICATIONS (IMC) 98
IMC BUILDS BRANDS 99
MC MIX – 8 MAJOR MODES 99
COMMUNICATION PROCESS 101
MACRO-MODEL OF COMMUNICATION PROCESS 101
MICROMODELS OF THE COMMUNICATION PROCESS 102
DEVELOPING EFFECTIVE COMMUNICATIONS IN 8 STEPS 103
STEP 1: IDENTIFY THE TARGET AUDIENCE 104
STEP 2: COMMUNICATION OBJECTIVES 104
STEP 3: DESIGNING THE COMMUNICATIONS 105
STEP 4 & 6: SELECT COMMUNICATION CHANNELS & MIX 108
STEP 8: IMPLEMENTING INTEGRATED MARKETING COMMUNICATIONS (IMC) ALONG THE CUSTOMER JOURNEY 111
MANAGING MASS COMMUNICATIONS: ADVERTISING, SALES PROMOTIONS, EVENTS AND EXPERIENCES, AND PUBLIC
RELATIONS 112
DEVELOPING AND MANAGING AN ADVERTISING PROGRAM 112
SALES PROMOTION 114
EVENTS AND EXPERIENCES 114
PUBLIC RELATIONS 114
MANAGING DIGITAL COMMUNICATIONS: ONLINE, SOCIAL MEDIA, AND MOBILE 115
ONLINE MARKETING 115
SOCIAL MEDIA 115
WORD OF MOUTH 116
MOBILE MARKETING 116
DEVELOPING EFFECTIVE MOBIL MARKETING PROGRAMS 116
THE FUTURE OF MARKETING 116
LINK TO CHAPTER 1 IN BOOK - NEW MARKETING REALITIES 116
TECHNOLOGICAL TRENDS 117
SOCIOECONOMIC TRENDS 119
GEOPOLITICAL TRENDS 119
IMPLICATIONS FOR MARKETING MANAGERS 120
WEEK 6 - SOCIALLY RESPONSIBLE MARKETING 121
ARE MARKETING AND SUSTAINABILITY COMPATIBLE? 121
CONCEPTS AND DEFINITIONS 121
PHILANTHROPY & CORPORATE SOCIETAL MARKETING (CSM) 122
CAUSE-RELATED MARKETING 122
(CORPORATE) SOCIAL MARKETING 123
SUSTAINABILITY MARKETING 124
RESPONSIBLE MARKETING IN A GLOBAL ENVIRONMENT 124
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COMPETING ON A GLOBAL BUSINESS 124
INTERNAL MARKETING 127
ORGANIZING THE MARKETING DEPARTMENT 127
RELATIONSHIPS WITH OTHER DEPARTMENTS 128
BUILDING A CREATIVE MARKETING ORGANIZATION 128
PAPER: HOW TO SHIFT CONSUMER BEHAVIORS TO BE MORE SUSTAINABLE: A LITERATURE REVIEW AND GUIDING
FRAMEWORK 128
WHAT? 128
WHY? 129
WHY IS BEHAVIOR CHANGE RELATED TO SUSTAINABILITY SO HARD TO ACHIEVE? 129
OVERVIEW SHIFT FACTORS 129
WEEK 7 – FINDING BRILLIANT INSIGHTS 136
WHAT SHOULD BE THE STARTING POINT FOR ANY NEW IDEA? 136
PUT PEOPLE FIRST 136
AFTER UNDERSTANDING YOUR CONSUMER COMES THE SOLUTION 137
FINDING INSIGHTS 137
IN SUMMARY 137
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Week 1 - Introduction to Marketing
The Marketing Process
• With the marketing process, you want to:
i. Understand the marketplace and customers' needs and wants --> Marketing
insights
ii. Design a customer-driven marketing strategy, STP!
iii. Construct a program/ mix that delivers superior value, 4P's!
iv. Build profitable relationships and create customer delight
v. Capture value from customers to create profits and customer equity
Scope of Marketing for New Realities
What is Marketing?
• There are various ways to define marketing
o The process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods, and services to create exchanges that satisfy
individual and organizational goals – American Marketing Association
(AMA), 1985
o The activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large – American Marketing Association
(AMA), 2013
▪ The idea of what marketing is and the responsibility of marketeers are
changing
o "The aim of marketing is to make selling superfluous […] to know and
understand the customer so well that the product or service fits him and sells
itself" - Peter Drucker
• Selling is not the most important part of marketing
o The aim is “to know and understand the customer so well that the product or
service fits him and sells itself" - Peter Drucker
Core Marketing Concepts
Needs, Wants, and Demands
• Needs are the basic human requirements. These needs become wants when directed to
specific objects that might satisfy the need
i. Our wants are shaped by our society. Demands are wants for specific products
backed by an ability to pay
• Companies must measure not only how many people want their
product, but also how many are willing and able to buy it
• Marketers do not create needs: Needs pre-exist marketers
• Some customers have needs of which they are not fully conscious or that they cannot
articulate. We can distinguish between five types of needs
i. Stated needs (The customer wants an inexpensive car)
ii. Real needs (The customer wants a car whose operating cost, not initial price,
is low)
iii. Unstated needs (The customer expects good service from the dealer)
iv. Delight needs (The customer would like the dealer to include an onboard GPS
system)
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v. Secret needs (The customer wants friends to see him or her as a savvy
consumer)
• To gain an edge, companies must help customers learn what they want
Target Markets, Positioning, and Segmentation
• Marketers identify distinct segments of buyers by identifying demographic,
psychographic, and behavioral differences between them
o For each of these target markets, the firm develops a market offering that it
positions in target buyers’ minds as delivering some key benefit(s)
Marketing Channels
• To reach a target market, the marketer uses three kinds of marketing channels
i. Communication channels: Deliver and receive messages from target buyers
and include newspapers, magazines, radio, television, mail, telephone, smart
phone, billboards, posters, and the Internet
ii. Distribution channels: Help display, sell, or deliver the physical product or
service(s) to the buyer or user
iii. Service channels: Used to carry out transactions with potential buyers, the
marketer
Paid, Owned, and Earned Media
• Paid media: Include TV, magazine and display ads, paid search, and sponsorships, all
of which allow marketers to show their ad or brand for a fee
• Owned media: Communication channels marketers actually own, like a company or
brand brochure, Web site, blog, Facebook page, or Twitter account
• Earned media: Streams in which consumers, the press, or other outsiders voluntarily
communicate something about the brand via word of mouth, buzz, or viral marketing
methods
Marketing Environment
• The marketing environment consists of the task environment and the broad
environment
o The task environment includes the actors engaged in producing, distributing,
and promoting the offering
• These are the company, suppliers, distributors, dealers, and target
customers
o The broad environment consists of six components: (i) Demographic
environment, (ii) economic environment, (iii) social-cultural environment, (iv)
natural environment, (v) technological environment, and (vi) political-legal
environment
• Marketers must pay close attention to these
Creating Customer Value
• When creating customer value, you want to understand latent customer needs and
wants
o We need to think further than what customers can tell us, it will not bring us
these radical innovations
o Needs and wants are not the same. Marketers can create wants but not needs
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The Value Delivery Process
• Harvard’s Michael Porter has proposed the value chain as a tool for identifying ways
to create more customer value
o According to this model, every firm is a synthesis of activities performed to
design, produce, market, deliver, and support its product
• Nine strategically relevant activities— five primary and four support activities—
create value and cost in a specific business
o Primary activities
i. Inbound logistics --> Bringing material into the business
ii. Operations --> Converting materials into final products
iii. Outbound logistics --> Shipping out final products
iv. Marketing --> Includes sales
v. Service
o Support activities, handled by specialized departments
i. Procurement
ii. Technology development
iii. Human resource management
iv. Firm infrastructure --> Including general management, planning,
finance, accounting, legal, and government affairs
• The firm’s task is to examine its costs and performance in each value-creating
activity, benchmarking against competitors, and look for ways to improve
• The firm’s success depends not only on how well each department performs its work
but also on how well the company coordinates departmental activities to conduct core
business processes:
o The market-sensing process: Gathering and acting upon information about the
market
o The new-offering realization process: Researching, developing, and launching
new high-quality offerings quickly and within budget
o The customer acquisition process: Defining target markets and prospecting for
new customers
o The customer relationship management process: Building a deeper
understanding of, relationships with, and offerings for individual customers
o The fulfillment management process: Receiving and approving orders,
shipping goods on time, and collecting payment
• A firm also needs to look for competitive advantages beyond its own operations in the
value chains of suppliers, distributors, and customers
o Many companies have partnered with specific suppliers and distributors to
create a superior value delivery network, also called a supply chain
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Marketing Management Philosophies/ Orientations
Production Concept
• Focus is on production and distribution efficiency
• It holds that consumers prefer products that are widely available and inexpensive
• Managers of production-oriented businesses concentrate on achieving high production
efficiency, low costs, and mass distribution
Product Concept
• Focus is on continuous product improvement
• Proposes that consumers favor products offering the most quality, performance, or
innovative features
• A new or improved product will not necessarily be successful unless it’s priced,
distributed, advertised, and sold properly
Selling Concept
• Focus is on transactions, not relations
• If marketeers don't aggressively sell, consumers won't buy
• Holds that consumers and businesses, if left alone, won’t buy enough of the
organization’s products
• Marketing based on hard selling is risky
o It assumes customers coaxed into buying a product not only won’t return or
bad-mouth it or complain to consumer organizations but might even buy it
again
Marketing Concept
• Focus is on customers, understanding needs and wants
• See also: Creating customer value
• Emerged in the mid-1950s as a customer-centered, sense-and-respond philosophy.
The job is to find not the right customers for your products, but the right products for
your customers
• Holds that the key to achieving organizational goals is being more effective than
competitors in creating, delivering, and communicating superior customer value to
your target market
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Holistic Marketing Concept
• Everything matters in marketing
• Requires a broad, integrated perspective
• Based on the development, design, and implementation of marketing programs,
processes, and activities that recognize their breadth and interdependencies
• Acknowledges that everything matters in marketing—and that a broad, integrated
perspective is often necessary
o Holistic marketing thus recognizes and reconciles the scope and complexities
of marketing activities
Relationship Marketing
• Aims to build mutually satisfying long- term relationships with key constituents in
order to earn and retain their business
• Four key constituents for relationship marketing:
i. Customers
ii. Employees
iii. Marketing partners (channels, suppliers, distributors, dealers, agencies)
iv. Members of the financial community (shareholders, investors, analysts)
• The ultimate outcome of relationship marketing is a unique company asset called a
marketing network
o Marketing network: Consists of the company and its supporting
stakeholders—customers, employees, suppliers, distributors, retailers, and
others—with whom it has built mutually profitable business relationships
• The operating principle is simple: Build an effective network of
relationships with key stakeholders, and profits will follow
• By focusing on their most profitable customers, products, and channels, these firms
hope to achieve profitable growth, capturing a larger share of each customer’s
expenditures by building high customer loyalty
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