Lecture summary from the course Marketing Strategy. I took this course last year but made it up-to-date with this year's slides, so you're all good to go! Compared to last year, some sessions are in different order, or some content is a little extra for you this year, but might come in handy. Good ...
MARKETING STRATEGY 2023
LECTURE SUMMARY
PROFESSOR SWELDENS
ROTTERDAM SCHOOL OF MANAGEMENT
ERASMUS UNIVERSITY ROTTERDAM
[No guest speaker content]
[Some sessions are in different order compared to last year’s lectures, but do
not get confused, all the information is in there, it might just be in a different
spot or a little extra 🙂 (e.g. session 2 might be more additional for you - but
might give you useful insights anyways)]
GOOD LUCK! <3
,Lecture 1 | Introduction
A love of tactics: marketing = 4Ps
- Marketing as tactics
- sales promotions and coupons
- advertising, logos, brochures
- Marketing as cost
- the accountability problem
- the accounting problem
- Surrendered decisions to other dept.
- pricing, CRM, digital, etc.
Marketing as philosophy: putting the customer at the center of all you do
Marketing = the process of identifying and profitably satisfying customers’ wants and needs
(Business) Strategy = a clear set of plans, actions and goals that outline how a business will
compete in a particular market, or markets, with a product or number of products or services
If companies are bundles of processes designed to deliver customer value, marketing =
strategy
The goal and how to get there:
Market forces → change management → profitable growth
Porter’s 5 forces:
1. competition in the industry
2. potential of new entrants into the industry
3. power of suppliers
4. power of customers
5. threat of substitute products
Marketing is changing: from product-orientation over customer-orientation to a system-
orientation?
1. Product-orientation: marketing is the execution of business activities aimed at
navigating a stream of products and services from the manufacturers to the customer
2. Customer-orientation: marketing is the process of identifying and profitably satisfying
customer wants and needs - focus on the benefits to the customer
3. System-orientation: market forces → change management → shared value
This could also mean change management as innovation (e.g. Danone)
,Doing well by doing good
Financial performance benefits of shared value:
1. enhanced firm reputation
2. stakeholder endorsement (both internal and external)
3. risk mitigation
4. improved innovative capacity (via access to knowledge and internal capabilities)
Brand purpose can and will cost money for the company!
But, strong purpose cases do build trust, commitment and fame (appeal) for the company.
Many companies do not want to spend money on its purpose but it can definitely help the
company.
, Lecture 2 | Change Management
How to change
Market research → present data and establish a roadmap
The 4 principles of change management:
1. Be market driven
a. Identify the problem
2. Be market driving
3. Anticipate reactions
a. Make sure consumers will accept the change; how will they react?
4. Match external changes with internal changes
a. Communication is important
Why did coke change?
1. changing tastes
2. losing market share
a. resulted in losing #1 position → losing control → lose your defining power
b. losing control: distribution (power over retailers), mind of consumers (brand
value and consistency; coke is ‘the real thing’ or is ‘it’)
c. the real risk is losing #1 customer: McDonald’s (= danger of collapse in
market share)
Why and when should coke have changed? [Coke was in the lectures from last year - useful
for understanding change management]
Should have changed earlier on - they waited till it was ‘too late’
1. Be market driven
- Principle: track changes in the market carefully at all times
- hence, more appropriate question would have been:
Why did it take so long for coke to change?
- wrong analyses
- conservative DNA: arrogance
- ignoring competition
- no attention to market share
- profit (...)
Boiling Frog Syndrome: you don’t notice small changes
- gradual changes received too little attention
- insufficient attention to customers channels and competitors
- Coke failed to see and understand market changes that took place over a
long period of time
- “Pepsi Generation” campaign started in the 1960s
- product line expansion started in the 1960s
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