Week #1 (Customer led&Market orientation& Customer Experience management)
Marketing is; A way to approach the market. In other words, we have to think about business
success and activities that may help the purchasing process.
Marketing changed from From transactions&product driven (market share) To relation &value
driven (share of wallet)
Share of wallet: means what is the percentage of given consumers’ wallet spent on your product.
Marketing system(before changes): suppliers(producer in India)-organization(Nike)-
distributors(stores)-consumers
Sustainable Competitive Advantage(SCA): the expected value of an o ering exceeds any other
alternative solutions all the time.
2 main marketing strategies:
1)Segmentation: dividing the target market into subgroups according to income, personal traits,
and purchasing power. For example, safari users can be a target group for apple products.
2) Value di erentiation: di erentiating the product from similar or competing items by identifying
the set of characteristics and bene ts that makes product or service o erings di er.
Example: PS4-XBOX-WII
Ps4: most professional and screen quality: targets relatively the richest group.
Xbox: a ordable: screen quality is low: targets 5-20 age group with less income.
Wii: Cheapest: target groups are families by o ering family games.
Article 1-2: Market orientation(Narver &Slater)
Market orientation is; being driven by customer wants. It is a
strategic focus on identifying consumer needs and desires in order to
de ne new products to be developed. The ability to generate and
use superior information about customers and competitors. has 3
components;
1)customer orientation
2)competitor orientation
3)Inter-functional orientation
Market orientation is one of the implementations of
Marketing(concept).
Measurement of Market Orientation
-New measure development
-Reliability
-Construct Validity
E ect on Pro tability
-Di erences btw commodity(corn)- Non-commodity markets
-Inclusion of control variable
Market orientation is easier in non-commodity markets because; Non-commodity products can
change quickly and it's easier to personalize them rather than commodity(selling corn) products.
Market orientation is more challenging for commodity businesses and requires more time to get
pro t.
2 types of Market orientation:
If it's asked by the consumer then
it's an expressed need like in the
NS train situation. (surveys)
The latent need is a problem that a
user or consumer doesn't realize
they have.(observations,
experiments)
So MO is not obsolete because
new ndings, paradigms are even
better at creating customer value
with more components.
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, Marketing system(after changes): suppliers(more than one)-organization(Stakeholders/Nike)-
distributors(online(multi-channeling)-o ine)-consumers
Article 3: Exchange -> Network Paradigm (Achrol&Kotler)
Paradigm: view or perception or assumptions that is accepted by an individual/society
Paradigm Shift: Over time paradigms became not able to explain society’s view therefore need
change. (Earth was at->Earth is round)
Exchange paradigm: there is an individual(discrete) consumer and an individual supplier. Meeting
the needs of consumers. Between 2 parties.
Network Paradigm: di erent levels of in uence and networks. (a lot of networks/parties)
Sub-phenomena: Consumer experience level. The lowest level of value exchange: is
consumption experiences: 5 senses, In uencing senses, nanotechnology in uences(odor-
making technology for mosquitos)
For example, Tony’s chocolate being so colorful and di erent tastes is an example of a
sub-phenomena: Consumer experiences.
Phenomena: (co-creation&outsourcing) Marketing networks(value chain) and how
companies are interacting with each other.
Phenomenal changes in Supply level: Production&innovation networks
(outsourcing&alliances(Symbian))
Phenomenal changes in Production level: Micro production systems: robotic
production(disintermediation) or co-creation(marketing network creation/designing your
own shoe)
Phenomenal changes in Interaction level:
Nike; They started to get their shoes done by other companies(outsourcing)
Or Tony's experience you make your own chocolate(co-creation)
Super-phenomena: Understanding social issues and trying to do good proactively.
Sustainability/society: coca-cola stopped selling cokes to high schools in Netherlands
sprite did even more and created a less sugar version for high schools(dutch zero sugar
policy).
Tony’s making a campaign by using cacao only from slave free market.
Companies with an understanding of network paradigm:
1) Sub-phenomena: Try to create customer value by using 5 senses rather than only providing a
certain product to satisfy a concrete need.
2) Phenomena: include the consumer in production by allowing them to co-create(customer
level) or outsource (company level)
3) Super-phenomena: recognize social issues and try to do good proactively without waiting for
the government to restrict them.
Article 4: Customer Experience Management(CEM): Homburg(2017)
CEM: rm or brand by creating a living through customer journey of touch points along pre-
purchase, purchase, and post-purchase situations. Stage experiences are important(big coca-
cola events, Victoria's Secret show)
Focuses on:
• Full sensorial response!(need) satisfaction (trying to engage the customer sensorial,
cognitive, and behavioral)
• Customer journey!‘product o ering’
• Other experiences beyond own company => alliances
Customer journey: any experience customers get during the whole process
Example CEM: Nespresso: the machine is important. Nespresso gathers capsules back to
recycle to create a whole journey around the co ee.They don’t say they are only responsible for
the taste of co ee. The brand says we are even responsible for the delivery to create a better
customer experience with the brand. From co ee to entire co ee experience(CEM: development
of network-oriented value proposition.). Besides companies own communication channels
Page 2
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Marketing is; A way to approach the market. In other words, we have to think about business
success and activities that may help the purchasing process.
Marketing changed from From transactions&product driven (market share) To relation &value
driven (share of wallet)
Share of wallet: means what is the percentage of given consumers’ wallet spent on your product.
Marketing system(before changes): suppliers(producer in India)-organization(Nike)-
distributors(stores)-consumers
Sustainable Competitive Advantage(SCA): the expected value of an o ering exceeds any other
alternative solutions all the time.
2 main marketing strategies:
1)Segmentation: dividing the target market into subgroups according to income, personal traits,
and purchasing power. For example, safari users can be a target group for apple products.
2) Value di erentiation: di erentiating the product from similar or competing items by identifying
the set of characteristics and bene ts that makes product or service o erings di er.
Example: PS4-XBOX-WII
Ps4: most professional and screen quality: targets relatively the richest group.
Xbox: a ordable: screen quality is low: targets 5-20 age group with less income.
Wii: Cheapest: target groups are families by o ering family games.
Article 1-2: Market orientation(Narver &Slater)
Market orientation is; being driven by customer wants. It is a
strategic focus on identifying consumer needs and desires in order to
de ne new products to be developed. The ability to generate and
use superior information about customers and competitors. has 3
components;
1)customer orientation
2)competitor orientation
3)Inter-functional orientation
Market orientation is one of the implementations of
Marketing(concept).
Measurement of Market Orientation
-New measure development
-Reliability
-Construct Validity
E ect on Pro tability
-Di erences btw commodity(corn)- Non-commodity markets
-Inclusion of control variable
Market orientation is easier in non-commodity markets because; Non-commodity products can
change quickly and it's easier to personalize them rather than commodity(selling corn) products.
Market orientation is more challenging for commodity businesses and requires more time to get
pro t.
2 types of Market orientation:
If it's asked by the consumer then
it's an expressed need like in the
NS train situation. (surveys)
The latent need is a problem that a
user or consumer doesn't realize
they have.(observations,
experiments)
So MO is not obsolete because
new ndings, paradigms are even
better at creating customer value
with more components.
Page 1
fffififffi ff ff fi ff fi ff ff ff ff
, Marketing system(after changes): suppliers(more than one)-organization(Stakeholders/Nike)-
distributors(online(multi-channeling)-o ine)-consumers
Article 3: Exchange -> Network Paradigm (Achrol&Kotler)
Paradigm: view or perception or assumptions that is accepted by an individual/society
Paradigm Shift: Over time paradigms became not able to explain society’s view therefore need
change. (Earth was at->Earth is round)
Exchange paradigm: there is an individual(discrete) consumer and an individual supplier. Meeting
the needs of consumers. Between 2 parties.
Network Paradigm: di erent levels of in uence and networks. (a lot of networks/parties)
Sub-phenomena: Consumer experience level. The lowest level of value exchange: is
consumption experiences: 5 senses, In uencing senses, nanotechnology in uences(odor-
making technology for mosquitos)
For example, Tony’s chocolate being so colorful and di erent tastes is an example of a
sub-phenomena: Consumer experiences.
Phenomena: (co-creation&outsourcing) Marketing networks(value chain) and how
companies are interacting with each other.
Phenomenal changes in Supply level: Production&innovation networks
(outsourcing&alliances(Symbian))
Phenomenal changes in Production level: Micro production systems: robotic
production(disintermediation) or co-creation(marketing network creation/designing your
own shoe)
Phenomenal changes in Interaction level:
Nike; They started to get their shoes done by other companies(outsourcing)
Or Tony's experience you make your own chocolate(co-creation)
Super-phenomena: Understanding social issues and trying to do good proactively.
Sustainability/society: coca-cola stopped selling cokes to high schools in Netherlands
sprite did even more and created a less sugar version for high schools(dutch zero sugar
policy).
Tony’s making a campaign by using cacao only from slave free market.
Companies with an understanding of network paradigm:
1) Sub-phenomena: Try to create customer value by using 5 senses rather than only providing a
certain product to satisfy a concrete need.
2) Phenomena: include the consumer in production by allowing them to co-create(customer
level) or outsource (company level)
3) Super-phenomena: recognize social issues and try to do good proactively without waiting for
the government to restrict them.
Article 4: Customer Experience Management(CEM): Homburg(2017)
CEM: rm or brand by creating a living through customer journey of touch points along pre-
purchase, purchase, and post-purchase situations. Stage experiences are important(big coca-
cola events, Victoria's Secret show)
Focuses on:
• Full sensorial response!(need) satisfaction (trying to engage the customer sensorial,
cognitive, and behavioral)
• Customer journey!‘product o ering’
• Other experiences beyond own company => alliances
Customer journey: any experience customers get during the whole process
Example CEM: Nespresso: the machine is important. Nespresso gathers capsules back to
recycle to create a whole journey around the co ee.They don’t say they are only responsible for
the taste of co ee. The brand says we are even responsible for the delivery to create a better
customer experience with the brand. From co ee to entire co ee experience(CEM: development
of network-oriented value proposition.). Besides companies own communication channels
Page 2
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