MG212- Marketing Notes
Week 1 notes
What is marketing?
American Marketing Association: “the activity, set of institutions and processes for creating
or adding, communicating, delivering and exchanging offerings that have value for
customers, clients, partners, and society.”
A process by which companies create value for customers and build strong customer
relationships to capture value from customers in return.
Focus:
• Customer needs- Who is the party you are serving?
• Value creation- Solve a problem for the customer.
• Includes advertising but encompasses broader strategic processes.
Example- World Duty Free
• Flights from New York to Europe had to refuel in Ireland. This presented an
opportunity for catering to affluent travelers.
• Tax exemptions allowed duty-free shops to offer luxury goods (e.g. alcohol and
cigarettes) at lower prices.
• Shops provided economic value, a unique shopping experience, and a platform for
testing new products.
• Positioned as convenient destinations for savings and exclusive products.
Marketing can be done for different things- a product (service), a product (physical product),
and placement (method of distribution) etc.
Marketing Process:
1. Understand the marketplace and customer needs
2. Design customer-driven marketing strategy
3. Construct an integrated marketing program
4. Build profitable relationships and create customer delight
5. Capture value from customers to create profits and customer equity
,Marketing Frameworks: Centered around major “decisions”
Look at the big picture: analyze customer (needs, behaviors), company (strengths,
resources), competition (rivals’ offerings), context (external environment like economic or
social trends), and collaborators (suppliers, partners).
Strategy:
• Segmentation- divide the market into distinct groups based on shared characteristics.
• Targeting- select specific segments.
• Positioning- create a USP and brand identity to appeal to the target market.
Marketing activities
• Market/product research: understanding customer needs and market trends.
• Product development/planning: designing offerings that meet market demand.
• Product pricing: setting price strategies that balance value and profitability,
• Distribution planning/management: ensuring products reach customers effectively.
• Corporate image and identity: building and maintaining a brand’s public perception.
• Sales planning and management: strategizing and managing sales efforts.
• Promotion mixes planning and management: coordinating advertising, PR, and
promotions.
• Customer service and care: delivering support to build loyalty and trust.
Draws on a combination of economics, psychology, and management knowledge.
Marketing myopia
Focusing only on existing wants and losing sight of underlying customer needs.
A narrow focus on your current market offerings (products, services, information, or
experiences offered to a market to satisfy a need or want).
Services vs. Physical Products
Challenges with Services:
, • Intangibility: Difficult to evaluate quality before purchase (less information)
• Variability: Quality depends on the provider, making consistency harder.
• Perishability: Cannot stockpile services (e.g., empty plane seats are lost revenue).
• Customization: Services are tailored to individual needs.
• Risk: Higher due to limited pre-purchase evaluation.
• Can be unprofitable.
Branding's Role in Services:
• Reduces perceived risk.
• Signals trust and consistent quality.
Branding
What Does Branding Do?
• Adds meaning to products/services.
• Enhances perceived quality, reliability, and value.
• Influences purchase decisions through emotional and psychological connections
(perception of social status, implication on self-concept).
Measuring Brand Equity:
• Sales-Based: Price premiums and revenue gains attributable to the brand.
• Customer-Based: Awareness, attachment, and favorable attitudes.
Examples of Strong Brands:
Companies like Apple and Nike excel by integrating branding into product design, pricing,
promotion, and placement.
Analytical Tools
1. PESTEL Analysis: Examines external factors affecting a company:
, • Political: Regulations, policies (e.g., student visa laws).
• Economic: Exchange rates, employment trends.
• Social: Demographics, lifestyle preferences.
• Technological: Advances in digital tools, AI.
• Environmental: Sustainability targets.
• Legal: Accessibility and compliance requirements.
2. SWOT Analysis:
• Strengths (Internal): Core competencies, resources, and capabilities.
• Weaknesses (Internal): Gaps in skills, resources, or reach.
• Opportunities (External): Emerging markets, technologies, and trends.
Week 1 notes
What is marketing?
American Marketing Association: “the activity, set of institutions and processes for creating
or adding, communicating, delivering and exchanging offerings that have value for
customers, clients, partners, and society.”
A process by which companies create value for customers and build strong customer
relationships to capture value from customers in return.
Focus:
• Customer needs- Who is the party you are serving?
• Value creation- Solve a problem for the customer.
• Includes advertising but encompasses broader strategic processes.
Example- World Duty Free
• Flights from New York to Europe had to refuel in Ireland. This presented an
opportunity for catering to affluent travelers.
• Tax exemptions allowed duty-free shops to offer luxury goods (e.g. alcohol and
cigarettes) at lower prices.
• Shops provided economic value, a unique shopping experience, and a platform for
testing new products.
• Positioned as convenient destinations for savings and exclusive products.
Marketing can be done for different things- a product (service), a product (physical product),
and placement (method of distribution) etc.
Marketing Process:
1. Understand the marketplace and customer needs
2. Design customer-driven marketing strategy
3. Construct an integrated marketing program
4. Build profitable relationships and create customer delight
5. Capture value from customers to create profits and customer equity
,Marketing Frameworks: Centered around major “decisions”
Look at the big picture: analyze customer (needs, behaviors), company (strengths,
resources), competition (rivals’ offerings), context (external environment like economic or
social trends), and collaborators (suppliers, partners).
Strategy:
• Segmentation- divide the market into distinct groups based on shared characteristics.
• Targeting- select specific segments.
• Positioning- create a USP and brand identity to appeal to the target market.
Marketing activities
• Market/product research: understanding customer needs and market trends.
• Product development/planning: designing offerings that meet market demand.
• Product pricing: setting price strategies that balance value and profitability,
• Distribution planning/management: ensuring products reach customers effectively.
• Corporate image and identity: building and maintaining a brand’s public perception.
• Sales planning and management: strategizing and managing sales efforts.
• Promotion mixes planning and management: coordinating advertising, PR, and
promotions.
• Customer service and care: delivering support to build loyalty and trust.
Draws on a combination of economics, psychology, and management knowledge.
Marketing myopia
Focusing only on existing wants and losing sight of underlying customer needs.
A narrow focus on your current market offerings (products, services, information, or
experiences offered to a market to satisfy a need or want).
Services vs. Physical Products
Challenges with Services:
, • Intangibility: Difficult to evaluate quality before purchase (less information)
• Variability: Quality depends on the provider, making consistency harder.
• Perishability: Cannot stockpile services (e.g., empty plane seats are lost revenue).
• Customization: Services are tailored to individual needs.
• Risk: Higher due to limited pre-purchase evaluation.
• Can be unprofitable.
Branding's Role in Services:
• Reduces perceived risk.
• Signals trust and consistent quality.
Branding
What Does Branding Do?
• Adds meaning to products/services.
• Enhances perceived quality, reliability, and value.
• Influences purchase decisions through emotional and psychological connections
(perception of social status, implication on self-concept).
Measuring Brand Equity:
• Sales-Based: Price premiums and revenue gains attributable to the brand.
• Customer-Based: Awareness, attachment, and favorable attitudes.
Examples of Strong Brands:
Companies like Apple and Nike excel by integrating branding into product design, pricing,
promotion, and placement.
Analytical Tools
1. PESTEL Analysis: Examines external factors affecting a company:
, • Political: Regulations, policies (e.g., student visa laws).
• Economic: Exchange rates, employment trends.
• Social: Demographics, lifestyle preferences.
• Technological: Advances in digital tools, AI.
• Environmental: Sustainability targets.
• Legal: Accessibility and compliance requirements.
2. SWOT Analysis:
• Strengths (Internal): Core competencies, resources, and capabilities.
• Weaknesses (Internal): Gaps in skills, resources, or reach.
• Opportunities (External): Emerging markets, technologies, and trends.
