Topic 1: developments in marketing thinking
Marketing 1.0 = product-centric marketing product development, sell products
Marketing 2.0 = customer-oriented marketing differentiation, satisfy/retain consumers
Marketing 3.0 = value-driven marketing values, make the world a better place
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MO (1990) vs MO (1998)
1990 Marketing concept which says that a company’s goal is to discover the needs and wants of
its target market (listen to its buyers) and to satisfy those needs more effectively and efficiently than
its competitors in order to gain SCA. 3 behavioral elements of MO and distinction between non-
commodity business and commodity business. MO is implementation of marketing concept.
Empirical paper
1998 Market orientation is understanding both expressed and latent customer needs. The key is
commitment to continuous market learning, to discover invisible needs and potential new markets
and anticipate on acquired knowledge through the entire organization in order to innovate and
sustain competitive advantage. Emphasize the importance of the distinction of the two separate
philosophies (either being customer-led or being market-oriented), which complements the idea
stressed out the previous article. Conceptual paper
---------------------------------------------------------------------
MO 1990 = empirical paper
MO 1998 = conceptual paper
Network paradigm = conceptual paper
CEM = empirical paper
---------------------------------------------------------------------
Non-commodity business = more unique, historical or rare. Items that potentially are no longer
available from original sources (used vehicles, collectibles, real estate). Linear effect.
Commodity business = often price-driven instead of value-driven (because of its telemarketing/sales-
enter approach). Price-driven businesses are less likely to create superior value (SCA) than businesses
that create value for buyers other than price. More basic goods that distinguish themselves on price
(oil, beef, natural gas). U-shape High MO = high external focus = high profitability - Low MO
(efficient companies, choosing for an internal view) = also high profitability.
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3 elements MO
o Customer orientation (all activities to acquire information about the buyers)
o Competitor orientation (all activities to acquire information about the competitors)
o Interfunctional orientation (sharing of information and resources derived from the first two
in order to integrate and collaborate different departments within the business = internal
focus)
---------------------------------------------------------------------
Customer-led vs market-oriented
1
,Responsive = customer-led = react on expressed wants of consumers
Proactive = market-oriented = latent needs (needs that are not expressed by the consumers)
---------------------------------------------------------------------
Total market orientation =
Proactive MO (latent needs, long term focus, pro-active)
Reactive MO (manifest demand, expressed needs, short term focus, reactive)
---------------------------------------------------------------------
Exchange paradigm = 2 individuals (buyer & seller) exchanging value (information/products/services)
Network paradigm = networks interacting with networks (value creation)
---------------------------------------------------------------------
Sub-phenomena = consumption experience. Based on sensory; smell, see, taste etc.
Phenomena = marketing networks, outsourcing and alliances. Co-production and co-creation; Blogs,
chats, social networks
Super-phenomena = sustainability/society
---------------------------------------------------------------------
CRM vs CEM
CRM = knowing your customers and make use of that data
CEM = knowing how customers behave/react in real time and make use of that data
---------------------------------------------------------------------
MO vs CEM
With CEM there is an extension in all 3 dimensions and a shift in the focus. Now focus on different
aspects if you want to compete on experience.
o Not only looking at your competitors (competitor orientation) but also focus on alliances to
collaborate with to create a better customer journey
o Not only looking at internal (cross-functional coordination) but also on external (touchpoint
journey orientation)
o CEM has a strategic direction and MO not
o Companies need to have ambidexterity You have to be able to be both responsive,
proactive and also explorative.
Goal MO = customer satisfaction & market performance
Goal CEM = customer loyalty & long-term growth
---------------------------------------------------------------------
Network paradigm vs CEM
CEM NOT contradicts with the network paradigm, they support and are building upon each other.
They are both trying to improve the whole journey and both focus on a consumer centric approach
to activate the mindset of the consumer through a journey of cognitive, affective and rational
touchpoints. They are related because they both mention that the organizations should manage
the customer experience differently by engaging deeper with for example sensorial
2
, responses. CEM is just a framework that tells us how we should compete and it is kind of a
managerial implication of the network paradigm. It represents a comprehensive marketing
management concept that systematizes and serves the implementation of an evolving marketing
concept.
---------------------------------------------------------------------
Topic 2: Consumer insights and motivations
Consumer vs customer
Consumer = someone who buys or uses goods or services consumes/uses
Customer = the buyer or user of the products of an individual/organization purchases
(a child consumes but not purchases it because a parent is buying it)
---------------------------------------------------------------------
Consumer behavior vs motivation vs insight
o Consumer behavior = the dynamic interaction of affect and cognition, behavior and the
environment by which beings conduct the exchange aspects of their lives. It is dynamic (not
stable, it changes over time), about interaction (between people and components) and about
exchanges (a buyer offering value to seller and a seller offering a value in return).
o Consumer motivation = an internal state that drives people to identify and buy products or
services that fulfill conscious and unconscious needs or desires. Important to know what
consumers really care about (what motivates them) and link this to brand/products. A driver
of consumer behavior.
o Consumer insight = a revelatory breakthrough in your understanding of people’s lives that
directs you to new ways in which to serve your customers better. A non-obvious way of
understanding customer needs & behaviors and the potential to change their behavior for
mutual benefit can be used in brand positioning (relevance & believability). Only true
insight when you can link it to a brand insight/benefit/something that the brand has to offer
---------------------------------------------------------------------
Link consumer motivation & consumer insights
Exploring consumer motivation in a product category may help to generate consumer insights. You
are analyzing the why question. Consumer insights are the outcome of the consumer motivations.
---------------------------------------------------------------------
Link consumer motivation & consumer behavior
Consumer motivation is a driver of consumer behavior. Emotional behaviors are feelings that drive
customer behavior. Actual behavior is exploring the “what” and underlying motivations is exploring
the “why”.
---------------------------------------------------------------------
Examples consumer insight
Persil Ad The getting dirt-part is equal to kids playing, having fun, and exploring. The clothes
usually get dirty and you have to wash them. This is mostly a negative experience. However, now it is
equal to the kids playing, having fun and it is much less of a problem. The insight was that kids and
dirt had a positive association for mothers. They felt positive about their kids getting dirty as they
saw dirt as a learning experience, and it made them proud of their kids.
Spotify At the beginning of Spotify, the insight was that people want to listen a lot of different
songs but do not want to buy each individual song/album. Nowadays: the insight of Spotify is that
they see that consumers are looking for a platform that knows what songs they like and what they
want to listen to.
3
Marketing 1.0 = product-centric marketing product development, sell products
Marketing 2.0 = customer-oriented marketing differentiation, satisfy/retain consumers
Marketing 3.0 = value-driven marketing values, make the world a better place
---------------------------------------------------------------------
MO (1990) vs MO (1998)
1990 Marketing concept which says that a company’s goal is to discover the needs and wants of
its target market (listen to its buyers) and to satisfy those needs more effectively and efficiently than
its competitors in order to gain SCA. 3 behavioral elements of MO and distinction between non-
commodity business and commodity business. MO is implementation of marketing concept.
Empirical paper
1998 Market orientation is understanding both expressed and latent customer needs. The key is
commitment to continuous market learning, to discover invisible needs and potential new markets
and anticipate on acquired knowledge through the entire organization in order to innovate and
sustain competitive advantage. Emphasize the importance of the distinction of the two separate
philosophies (either being customer-led or being market-oriented), which complements the idea
stressed out the previous article. Conceptual paper
---------------------------------------------------------------------
MO 1990 = empirical paper
MO 1998 = conceptual paper
Network paradigm = conceptual paper
CEM = empirical paper
---------------------------------------------------------------------
Non-commodity business = more unique, historical or rare. Items that potentially are no longer
available from original sources (used vehicles, collectibles, real estate). Linear effect.
Commodity business = often price-driven instead of value-driven (because of its telemarketing/sales-
enter approach). Price-driven businesses are less likely to create superior value (SCA) than businesses
that create value for buyers other than price. More basic goods that distinguish themselves on price
(oil, beef, natural gas). U-shape High MO = high external focus = high profitability - Low MO
(efficient companies, choosing for an internal view) = also high profitability.
---------------------------------------------------------------------
3 elements MO
o Customer orientation (all activities to acquire information about the buyers)
o Competitor orientation (all activities to acquire information about the competitors)
o Interfunctional orientation (sharing of information and resources derived from the first two
in order to integrate and collaborate different departments within the business = internal
focus)
---------------------------------------------------------------------
Customer-led vs market-oriented
1
,Responsive = customer-led = react on expressed wants of consumers
Proactive = market-oriented = latent needs (needs that are not expressed by the consumers)
---------------------------------------------------------------------
Total market orientation =
Proactive MO (latent needs, long term focus, pro-active)
Reactive MO (manifest demand, expressed needs, short term focus, reactive)
---------------------------------------------------------------------
Exchange paradigm = 2 individuals (buyer & seller) exchanging value (information/products/services)
Network paradigm = networks interacting with networks (value creation)
---------------------------------------------------------------------
Sub-phenomena = consumption experience. Based on sensory; smell, see, taste etc.
Phenomena = marketing networks, outsourcing and alliances. Co-production and co-creation; Blogs,
chats, social networks
Super-phenomena = sustainability/society
---------------------------------------------------------------------
CRM vs CEM
CRM = knowing your customers and make use of that data
CEM = knowing how customers behave/react in real time and make use of that data
---------------------------------------------------------------------
MO vs CEM
With CEM there is an extension in all 3 dimensions and a shift in the focus. Now focus on different
aspects if you want to compete on experience.
o Not only looking at your competitors (competitor orientation) but also focus on alliances to
collaborate with to create a better customer journey
o Not only looking at internal (cross-functional coordination) but also on external (touchpoint
journey orientation)
o CEM has a strategic direction and MO not
o Companies need to have ambidexterity You have to be able to be both responsive,
proactive and also explorative.
Goal MO = customer satisfaction & market performance
Goal CEM = customer loyalty & long-term growth
---------------------------------------------------------------------
Network paradigm vs CEM
CEM NOT contradicts with the network paradigm, they support and are building upon each other.
They are both trying to improve the whole journey and both focus on a consumer centric approach
to activate the mindset of the consumer through a journey of cognitive, affective and rational
touchpoints. They are related because they both mention that the organizations should manage
the customer experience differently by engaging deeper with for example sensorial
2
, responses. CEM is just a framework that tells us how we should compete and it is kind of a
managerial implication of the network paradigm. It represents a comprehensive marketing
management concept that systematizes and serves the implementation of an evolving marketing
concept.
---------------------------------------------------------------------
Topic 2: Consumer insights and motivations
Consumer vs customer
Consumer = someone who buys or uses goods or services consumes/uses
Customer = the buyer or user of the products of an individual/organization purchases
(a child consumes but not purchases it because a parent is buying it)
---------------------------------------------------------------------
Consumer behavior vs motivation vs insight
o Consumer behavior = the dynamic interaction of affect and cognition, behavior and the
environment by which beings conduct the exchange aspects of their lives. It is dynamic (not
stable, it changes over time), about interaction (between people and components) and about
exchanges (a buyer offering value to seller and a seller offering a value in return).
o Consumer motivation = an internal state that drives people to identify and buy products or
services that fulfill conscious and unconscious needs or desires. Important to know what
consumers really care about (what motivates them) and link this to brand/products. A driver
of consumer behavior.
o Consumer insight = a revelatory breakthrough in your understanding of people’s lives that
directs you to new ways in which to serve your customers better. A non-obvious way of
understanding customer needs & behaviors and the potential to change their behavior for
mutual benefit can be used in brand positioning (relevance & believability). Only true
insight when you can link it to a brand insight/benefit/something that the brand has to offer
---------------------------------------------------------------------
Link consumer motivation & consumer insights
Exploring consumer motivation in a product category may help to generate consumer insights. You
are analyzing the why question. Consumer insights are the outcome of the consumer motivations.
---------------------------------------------------------------------
Link consumer motivation & consumer behavior
Consumer motivation is a driver of consumer behavior. Emotional behaviors are feelings that drive
customer behavior. Actual behavior is exploring the “what” and underlying motivations is exploring
the “why”.
---------------------------------------------------------------------
Examples consumer insight
Persil Ad The getting dirt-part is equal to kids playing, having fun, and exploring. The clothes
usually get dirty and you have to wash them. This is mostly a negative experience. However, now it is
equal to the kids playing, having fun and it is much less of a problem. The insight was that kids and
dirt had a positive association for mothers. They felt positive about their kids getting dirty as they
saw dirt as a learning experience, and it made them proud of their kids.
Spotify At the beginning of Spotify, the insight was that people want to listen a lot of different
songs but do not want to buy each individual song/album. Nowadays: the insight of Spotify is that
they see that consumers are looking for a platform that knows what songs they like and what they
want to listen to.
3
