MARKETING MANAGEMENT 101
Marketing Philosophies:
Production Concept:
- Oldest concept in business
- Consumers who prefer products that are widely available and inexpensive
- Businesses who offer high production efficiency, low costs, and mass distribution
Product Concept:
- Consumers who favour products offering the most quality, performance, or innovative features
- A better product alone is not enough: new or improved products will not necessarily be successful unless
it’s priced, distributed, advertised, and sold properly
Selling Concept:
- Consumers and businesses, if left alone, won’t buy enough of the organization’s products
- Practiced most aggressively with unsought goods
- Overcapacity: aim to sell what they make, rather than make what the market wants
- Reduced creativity (Pushing product instead of improving it)
Marketing Concept:
- Emerged in the mid-1950s as a customer-centred, sense-and-respond philosophy
- Finding the right products for customers instead the right customers for products
- Introduction of competition consideration (Porter’s Generic Strategies)
- “Selling focuses on the needs of the seller; marketing on the needs of the buyer.”
! Buyers don’t always know what they want (“Give the people what they don’t know they want”)
- Marketing creates value (value proposition)
Holistic Marketing Concept:
- Based on the development, design, and implementation of marketing programs, processes, and
activities that recognize their breadth and interdependencies
- Components characterizing holistic marketing:
1. Relationship marketing (customers, employees, partners, financial community)
2. Integrated marketing (communications, products/services, channels, price)
3. Internal marketing (marketing department, senior management, other departments)
4. Performance marketing (sales revenue, brand & customer equity, ethics, environment…)
- “Everything is marketing”
,Business Mission:
- Higher level idea of organization or business (what they stand for)
- Shared sense of purpose, direction and opportunity
- Reflects on vision
- Defines the competitive sphere
Market Analysis:
- Triangle: Competitors, Customers, Own Capabilities
- Microenvironment: the product’s market (SWOT)
- Macroenvironment: external impacts (PESTLE, marketing audit)
Actions as a result of environmental scanning:
- Ignorance (Nokia: used to have biggest market share, but didn’t innovate)
- Delay (Microsoft: Competitor to iPhones, people wanted slightly different phones)
- Gradual repositioning (Apple: from niche to broad)
- Radical repositioning (IBM: refocusing on consultancy only)
- Segmentation:
Target market = specific segment
- Groups of people
- Allows tailed Marketing Mix
- More effective use of resources
- Reduces competitive pressure
1. Geographic (continent, country, urban/rural…)
2. Demographic (gender, age, education, profession, income…)
3. Psychographic (personality traits, lifestyle, orientations, values…)
4. Behavioural (habits, price perception, user loyalty, media usage, channel preference…)
- Generic Target Market Strategies:
1. Undifferentiated Marketing (lack of customer differences or costs outweigh gains; same everywhere)
2. Differentiated Marketing (multiple segmentation; more strategies)
3. Focused Marketing (niche marketing; specific)
4. Customised Marketing (mass customization; e.g. Netflix)
Strategy Formulation:
- Positioning:
1. Market segmentation
2. Target market
3. Differentiated advantage
Strategy vs. Outcome
(How should the product be perceived vs. what customer actually think about the product)
GCCP (global culture consumer positioning)
LCCP (local culture consumer positioning)
FCCP (foreign culture consumer positioning)
- Successful Positioning:
- Clarity (understandable message)
- Consistency (always the same message)
- Credibility (in the margin of proof)
- Competitiveness (different positioning than competitor)
- Perceptual Mapping:
- Comparing what consumers want, what is currently offered and what is ideal
- Basis for comparing brands
- Value= benefits (functional, symbolic, experimental)-sacrifices(economic, psychological)
- Where on Porter’s Generic Model?
Tactical Programme Formulation:
- Marketing Mix
, 1
De Swaan Arons, M., van den Driest, F., & Weed, K. (2014). The Ultimate Marketing
Machine. Harvard Business Review, 4, 55-63.
Relevance Most companies do not change their marketing strategy, but
marketers realise that that needs to change.
A blueprint for the ideal structure with regards to marketing
management is missing. Structure must follow strategy.
Research Questions What values and goals guide marketing strategy, what capabilities
drive marketing excellence, and what structures and ways of working
will allow organizations to excel?
What separates the strategies and structures of superior marketing
organizations from the rest?
Argumentation for Hypotheses -
Methodology 1) In-depth qualitative interviews with more than 350 CEOs,
CMOs, and agency heads
2) Over a dozen CMO roundtables in cities worldwide
3) Online quantitative surveys of >10,000 marketers from 92
countries, with >80 questions focusing on marketers’ data
analytics capabilities, brand strategy, cross-functional and
global interactions, and employee training
Survey respondents divided into two groups, over-performers and
under-performers, on the basis of their companies’ three-year
revenue growth relative to their competitors
Results Winning characteristics of high-performing market oriented firms:
- Big data, deep insight
Excellence in market analysis is key – integrate data about
what consumers are doing, with knowledge of why they are
doing it (e.g. Nike)
- Purposeful Positioning
Effective delivery of functional, emotional, and societal
benefits at the same time, fine-tuned for the targeted
customers (e.g. Dulux)
! everyone in the company needs to know the purpose to
achieve maximum success
- Total Experience
Not products are important – the customer’s total experience
with the firm and its products and services is (e.g. Apple/ or
Netflix based on personalized offering)
Market oriented firms plan and coordinate all company activities
around the primary goal of satisfying consumers needs profitability.
Drivers of effective marketing organizations:
- Connecting
Linking marketing with all functions in the organization –
marketing creates business strategy
- Inspiring
Engaging customers and employees with the brand purpose
– strengthen commitment and pride in brand (e.g. Google)
- Focusing
Aligning local and global marketing objectives
- Organizing for agility
Creating nimble marketing organizations by orchestrating
, networks – Oreo SuperBowl advert
“think” (analytical), “do” (develop content) and “feel”
(customer interaction) marketers
- Building capabilities
Ensuring continuous training to meet tomorrow’s challenges
Academic and Practical Contributions Adds to marketing literature in defining what a well performing
company is characterized by.
Makes managers consider a broader focus and allows them to
analyse the structure of their company with the results of this study.
Allows them to implement these key drivers into their organizations to
improve their performance.
Link to case How can the key drivers be incorporated into the case?
Strengths and Weaknesses Strengths:
Large population (representative)
Weaknesses:
What kinds of companies were used for this study?
What market was used?
Future Research Taking under-performing companies, implementing key driver
aspects and analysing if they perform better.
Marketing Philosophies:
Production Concept:
- Oldest concept in business
- Consumers who prefer products that are widely available and inexpensive
- Businesses who offer high production efficiency, low costs, and mass distribution
Product Concept:
- Consumers who favour products offering the most quality, performance, or innovative features
- A better product alone is not enough: new or improved products will not necessarily be successful unless
it’s priced, distributed, advertised, and sold properly
Selling Concept:
- Consumers and businesses, if left alone, won’t buy enough of the organization’s products
- Practiced most aggressively with unsought goods
- Overcapacity: aim to sell what they make, rather than make what the market wants
- Reduced creativity (Pushing product instead of improving it)
Marketing Concept:
- Emerged in the mid-1950s as a customer-centred, sense-and-respond philosophy
- Finding the right products for customers instead the right customers for products
- Introduction of competition consideration (Porter’s Generic Strategies)
- “Selling focuses on the needs of the seller; marketing on the needs of the buyer.”
! Buyers don’t always know what they want (“Give the people what they don’t know they want”)
- Marketing creates value (value proposition)
Holistic Marketing Concept:
- Based on the development, design, and implementation of marketing programs, processes, and
activities that recognize their breadth and interdependencies
- Components characterizing holistic marketing:
1. Relationship marketing (customers, employees, partners, financial community)
2. Integrated marketing (communications, products/services, channels, price)
3. Internal marketing (marketing department, senior management, other departments)
4. Performance marketing (sales revenue, brand & customer equity, ethics, environment…)
- “Everything is marketing”
,Business Mission:
- Higher level idea of organization or business (what they stand for)
- Shared sense of purpose, direction and opportunity
- Reflects on vision
- Defines the competitive sphere
Market Analysis:
- Triangle: Competitors, Customers, Own Capabilities
- Microenvironment: the product’s market (SWOT)
- Macroenvironment: external impacts (PESTLE, marketing audit)
Actions as a result of environmental scanning:
- Ignorance (Nokia: used to have biggest market share, but didn’t innovate)
- Delay (Microsoft: Competitor to iPhones, people wanted slightly different phones)
- Gradual repositioning (Apple: from niche to broad)
- Radical repositioning (IBM: refocusing on consultancy only)
- Segmentation:
Target market = specific segment
- Groups of people
- Allows tailed Marketing Mix
- More effective use of resources
- Reduces competitive pressure
1. Geographic (continent, country, urban/rural…)
2. Demographic (gender, age, education, profession, income…)
3. Psychographic (personality traits, lifestyle, orientations, values…)
4. Behavioural (habits, price perception, user loyalty, media usage, channel preference…)
- Generic Target Market Strategies:
1. Undifferentiated Marketing (lack of customer differences or costs outweigh gains; same everywhere)
2. Differentiated Marketing (multiple segmentation; more strategies)
3. Focused Marketing (niche marketing; specific)
4. Customised Marketing (mass customization; e.g. Netflix)
Strategy Formulation:
- Positioning:
1. Market segmentation
2. Target market
3. Differentiated advantage
Strategy vs. Outcome
(How should the product be perceived vs. what customer actually think about the product)
GCCP (global culture consumer positioning)
LCCP (local culture consumer positioning)
FCCP (foreign culture consumer positioning)
- Successful Positioning:
- Clarity (understandable message)
- Consistency (always the same message)
- Credibility (in the margin of proof)
- Competitiveness (different positioning than competitor)
- Perceptual Mapping:
- Comparing what consumers want, what is currently offered and what is ideal
- Basis for comparing brands
- Value= benefits (functional, symbolic, experimental)-sacrifices(economic, psychological)
- Where on Porter’s Generic Model?
Tactical Programme Formulation:
- Marketing Mix
, 1
De Swaan Arons, M., van den Driest, F., & Weed, K. (2014). The Ultimate Marketing
Machine. Harvard Business Review, 4, 55-63.
Relevance Most companies do not change their marketing strategy, but
marketers realise that that needs to change.
A blueprint for the ideal structure with regards to marketing
management is missing. Structure must follow strategy.
Research Questions What values and goals guide marketing strategy, what capabilities
drive marketing excellence, and what structures and ways of working
will allow organizations to excel?
What separates the strategies and structures of superior marketing
organizations from the rest?
Argumentation for Hypotheses -
Methodology 1) In-depth qualitative interviews with more than 350 CEOs,
CMOs, and agency heads
2) Over a dozen CMO roundtables in cities worldwide
3) Online quantitative surveys of >10,000 marketers from 92
countries, with >80 questions focusing on marketers’ data
analytics capabilities, brand strategy, cross-functional and
global interactions, and employee training
Survey respondents divided into two groups, over-performers and
under-performers, on the basis of their companies’ three-year
revenue growth relative to their competitors
Results Winning characteristics of high-performing market oriented firms:
- Big data, deep insight
Excellence in market analysis is key – integrate data about
what consumers are doing, with knowledge of why they are
doing it (e.g. Nike)
- Purposeful Positioning
Effective delivery of functional, emotional, and societal
benefits at the same time, fine-tuned for the targeted
customers (e.g. Dulux)
! everyone in the company needs to know the purpose to
achieve maximum success
- Total Experience
Not products are important – the customer’s total experience
with the firm and its products and services is (e.g. Apple/ or
Netflix based on personalized offering)
Market oriented firms plan and coordinate all company activities
around the primary goal of satisfying consumers needs profitability.
Drivers of effective marketing organizations:
- Connecting
Linking marketing with all functions in the organization –
marketing creates business strategy
- Inspiring
Engaging customers and employees with the brand purpose
– strengthen commitment and pride in brand (e.g. Google)
- Focusing
Aligning local and global marketing objectives
- Organizing for agility
Creating nimble marketing organizations by orchestrating
, networks – Oreo SuperBowl advert
“think” (analytical), “do” (develop content) and “feel”
(customer interaction) marketers
- Building capabilities
Ensuring continuous training to meet tomorrow’s challenges
Academic and Practical Contributions Adds to marketing literature in defining what a well performing
company is characterized by.
Makes managers consider a broader focus and allows them to
analyse the structure of their company with the results of this study.
Allows them to implement these key drivers into their organizations to
improve their performance.
Link to case How can the key drivers be incorporated into the case?
Strengths and Weaknesses Strengths:
Large population (representative)
Weaknesses:
What kinds of companies were used for this study?
What market was used?
Future Research Taking under-performing companies, implementing key driver
aspects and analysing if they perform better.
