THEORIES
OF
MARKETING
Klelia Prodromou, UvA – Semester 2
, Theories Of Marketing
TOPIC 1: DEVELOPMENTS IN MARKETING THINKING
INTRODUCTION LECTURE
• Marketing Definitions:
Marketing Decisions
o 1985: Marketing is the process of planning and executing Understanding
Customer Orientation Customers
conception, pricing, promotion and distribution of goods, Create Customer
Value
ideas and services to create exchanges that satisfy individual and
organizational goals
o 2012: Marketing is the activity, set of institutions and processes Target
for creating, communicating, delivering and exchanging of- Long Term
Market
fers that have the value for customers, clients, partners and Profit
society at large Focus
• Market Orientation Competitor Orientation Institutional Orientation
o Driven what the customers wants, gather data, re-
search, create new product and promote them
The product The Marketing
o Crucial for sustainable su- • Consumers will buy Concept • Organisations must Concept
products that are understake
perior value widey available and • Consumers will buy aggressive selling • Competition
low in cost products that offer efforts to make between products
the best quality or customers buy and their qualities
From transaction & to relate & value performance
product driven driven • Change strategy
needed
• metric: market • metric: share of The production The selling
share wallet Conepcet Concept
LECTURE 1: DEVELOPMENTS IN MARKETING THINKING
• Market Orientation is the organizational cul-
ture (put the customers’ interest first) that most effi-
ciently creates the necessary behaviors (ability to
generate disseminate and use superior information about cus-
tomers and competitors) for
the creation of the supe-
rior value for buyers and thus, long term superior
performance of the business
• Market Orientation is the implementation of mar-
keting concept
• Article 1: Narver & Slater 1990 importance:
o Measurement of Market Orientation
Standardized products (no
ROA Commodity → Comparing Prices
1. New measure development customization) basic control
→ Low cost
2. Reliability
Non-Commodity
3. Construct validity value of the product
o Effect of Profitability
Nowadays: People used to have product
1. Difference between (non) Cost a lot of money differentiation because all companies do
do not differentiate
commodity markets – it now (sales profit)
strengths of the relationship Customer Orientation
2. Inclusion of control variables Competitor Orientation
Market Orientation Interfunctional Coordination
• “Firms lose their position of industry leader-
ship because they listen carefully to their
customers” → Customers do not know what they want → they know the problem but not the solution →
People can not recognize their needs until someone show them to them
• Brand is more important than the product (value is who I behind the brand)
• Commodity influence society and buyers
• Customer Experience is the evolvement of a person’s sensorial, affective, cognitive, relational and be-
havioral responses to a firm or brand by living through a journey of touchpoints along pre – purchase,
Page 2 of 39
,Marketing Product Centric Customer Centric Value Centric Digital Centric
Objective Product Centric, Customer Centric, Re- Value Driven, Improve Innovation Driven, Loyalty and growth
Sell Products tain customers the World
Enabling Forces Industrial Revolu- IT Revolution WWW Digital & mobile touch
tion
How Companies Mass market with Smarter consumers Whole Human with Humans that are part of bigger networks,
see the market basic needs with social needs heart, mind, and soul both with and without the company
Key Concepts Product develop- Differentiation Values Customer journey
ment
Marketing guide- Product specs Brand and Products Corporate Values Whole Experience beyond own brand
lines (including competitors and partners)
Customer interac- Functional Functional and emo- Functional, emotional, Functional, emotional, and experiential
tion tional and spiritual
Total Market Orientation
• purchase and post – purchase situations
and continually judging this journey against Category Responsive MO Proactive MO
(Customer-led) (Market-oriented)
response thresholds of co – occurring expe- something that makes peo- Something really new com-
riences in a person’s related environment ple’s life latter improvement, pletely new, not express need
express needs (company just think to do that)
o Customer Journey – Product Offering Orienta- Expressed wants Latent needs
o Full sensorial response – need satisfaction tion (Manifest Demand)
Style Responsive Proactive
o Other Experience beyond own com-
pany - alliances Focus Short-term Long-term
• Customer Experience is an adjustment of Objective Customer satisfaction Customer value
Market Orientation Learning Adaptive Generative
type
• Supplier Network → Co – creation, Co – Learning Customer surveys, Key Observation, Lead-users
production → Consumer Network processes account/focus groups /experiments
Focus Satisfaction & relationships Innovation & unserved
markets
LECTURE 2: DISCUSSION Environ- Stable environments Turbulent environments
ment
• Network Oriented: alliances users
valuable ≠ Network Effect: increase the Comparison Market Orientation Customer Experience Management
Cultural • Customer orientation • Experiential response orientation
number of people/ participants improve mindset • Competitor orienta- • Alliance orientation (collaboration!)
the value of a good or service tion • Cross-functional • Touchpoint journey orientation (also
coordination external!)
• Customer Journey: make the journey as
Strategic (not included) (added)
best as possible, think where your product direction
fits in this journey
Firm • Exploitative mindset • Ambidexterity (i.e., also explorative)
• Expanding journey: for example: ryanair capabilities
before flight, during, after, hotels, car
rental etc. Customer Experience
• Production localise/ centralise (logistics/ delivery) – local for Management
local is most of the times cheapest that what you think
o Specific needs
o Cost Efficiency
o Time Efficiency Set Strategic Central Firm
Culture Mindsets
• Marketing will shift from a brand – Directions Capabilities
company strategy ≠
centered function to a platform – brand uniquness
brand strategy
strandarisation
based strategic role (mission & vision)
that integrates AI, distributed manu-
facturing and innovation networks Orientation Towards Touchpoints Touchpoints
Experiental Reponses Thematic cohension Journey Design
o How we control the way that Touchpoint Journey Consistensy Prioritisation
customers perceive their products Alliances Context Sensititvity Journey monitoritng
Connectivity Adaption
– vital role in the whole journey
o Be connected to the commu-
Designing CE Continous renewal of
nity/ networks alliances Focus on CE
CE
Most Comparable
• Marketing though is context driven Important to diffenciate
Creativity Manage and Predict Journey
o Changing market dynamics Alliances
o Changing customer needs/ wants
• But there is consistency as to the basic assumptions since the last ‘marketing concept’
Page 3 of 39
, o Customers (& environment)
are starting point for the com-
pany success
o Differentiation by superior
(network) value delivery
• But many changes in how – marketing
management
• From Brand Management to Plat-
form Coordination: Companies shift
from brand management to platform-
based coordination, connecting mi-
cro-manufacturers with consumer
preferences.
• AI and Data in Consumer Engage-
ment: AI-driven personalization will
dominate, offering tailored experi-
ences based on behavioral data.
• Brand Differentiation to AI & Cus-
tomization: Competition moves from
traditional branding to AI-driven cus-
tomization, prioritizing real-time
adaptability over mass production.
• Horizontal Market Expansion:
o Companies expand
Production
across indus-
Suppliers Alliances needed Organization Distribution
tries to inte-
grate AI, manu- Innovation
facturing, and digital Companies can not compete Compete here! (Alliances)
services, enhancing anymore here
consumer touchpoints.
o Physical and digital experiences (e.g., VR) will be used to maintain engagement.
ARTICLE 1: THE EFFECT OF A MARKET ORIENTATION ON BUSINESS PROFITABILITY
(NARVER & SLATTER 1990)
• Market Orientation Market Performance (sustainable
competitive advancement)
• The logic of Sustainable competitive advancement
(SCA) is that for a buyer purchase offering X, the buyer
must perceive that the expected value to him of that
By increasing benefits to the buyer in relation to the buyer’s cost
By decreasing the buyer’s cost in relation to the buyer’s benefits
Page 4 of 39
OF
MARKETING
Klelia Prodromou, UvA – Semester 2
, Theories Of Marketing
TOPIC 1: DEVELOPMENTS IN MARKETING THINKING
INTRODUCTION LECTURE
• Marketing Definitions:
Marketing Decisions
o 1985: Marketing is the process of planning and executing Understanding
Customer Orientation Customers
conception, pricing, promotion and distribution of goods, Create Customer
Value
ideas and services to create exchanges that satisfy individual and
organizational goals
o 2012: Marketing is the activity, set of institutions and processes Target
for creating, communicating, delivering and exchanging of- Long Term
Market
fers that have the value for customers, clients, partners and Profit
society at large Focus
• Market Orientation Competitor Orientation Institutional Orientation
o Driven what the customers wants, gather data, re-
search, create new product and promote them
The product The Marketing
o Crucial for sustainable su- • Consumers will buy Concept • Organisations must Concept
products that are understake
perior value widey available and • Consumers will buy aggressive selling • Competition
low in cost products that offer efforts to make between products
the best quality or customers buy and their qualities
From transaction & to relate & value performance
product driven driven • Change strategy
needed
• metric: market • metric: share of The production The selling
share wallet Conepcet Concept
LECTURE 1: DEVELOPMENTS IN MARKETING THINKING
• Market Orientation is the organizational cul-
ture (put the customers’ interest first) that most effi-
ciently creates the necessary behaviors (ability to
generate disseminate and use superior information about cus-
tomers and competitors) for
the creation of the supe-
rior value for buyers and thus, long term superior
performance of the business
• Market Orientation is the implementation of mar-
keting concept
• Article 1: Narver & Slater 1990 importance:
o Measurement of Market Orientation
Standardized products (no
ROA Commodity → Comparing Prices
1. New measure development customization) basic control
→ Low cost
2. Reliability
Non-Commodity
3. Construct validity value of the product
o Effect of Profitability
Nowadays: People used to have product
1. Difference between (non) Cost a lot of money differentiation because all companies do
do not differentiate
commodity markets – it now (sales profit)
strengths of the relationship Customer Orientation
2. Inclusion of control variables Competitor Orientation
Market Orientation Interfunctional Coordination
• “Firms lose their position of industry leader-
ship because they listen carefully to their
customers” → Customers do not know what they want → they know the problem but not the solution →
People can not recognize their needs until someone show them to them
• Brand is more important than the product (value is who I behind the brand)
• Commodity influence society and buyers
• Customer Experience is the evolvement of a person’s sensorial, affective, cognitive, relational and be-
havioral responses to a firm or brand by living through a journey of touchpoints along pre – purchase,
Page 2 of 39
,Marketing Product Centric Customer Centric Value Centric Digital Centric
Objective Product Centric, Customer Centric, Re- Value Driven, Improve Innovation Driven, Loyalty and growth
Sell Products tain customers the World
Enabling Forces Industrial Revolu- IT Revolution WWW Digital & mobile touch
tion
How Companies Mass market with Smarter consumers Whole Human with Humans that are part of bigger networks,
see the market basic needs with social needs heart, mind, and soul both with and without the company
Key Concepts Product develop- Differentiation Values Customer journey
ment
Marketing guide- Product specs Brand and Products Corporate Values Whole Experience beyond own brand
lines (including competitors and partners)
Customer interac- Functional Functional and emo- Functional, emotional, Functional, emotional, and experiential
tion tional and spiritual
Total Market Orientation
• purchase and post – purchase situations
and continually judging this journey against Category Responsive MO Proactive MO
(Customer-led) (Market-oriented)
response thresholds of co – occurring expe- something that makes peo- Something really new com-
riences in a person’s related environment ple’s life latter improvement, pletely new, not express need
express needs (company just think to do that)
o Customer Journey – Product Offering Orienta- Expressed wants Latent needs
o Full sensorial response – need satisfaction tion (Manifest Demand)
Style Responsive Proactive
o Other Experience beyond own com-
pany - alliances Focus Short-term Long-term
• Customer Experience is an adjustment of Objective Customer satisfaction Customer value
Market Orientation Learning Adaptive Generative
type
• Supplier Network → Co – creation, Co – Learning Customer surveys, Key Observation, Lead-users
production → Consumer Network processes account/focus groups /experiments
Focus Satisfaction & relationships Innovation & unserved
markets
LECTURE 2: DISCUSSION Environ- Stable environments Turbulent environments
ment
• Network Oriented: alliances users
valuable ≠ Network Effect: increase the Comparison Market Orientation Customer Experience Management
Cultural • Customer orientation • Experiential response orientation
number of people/ participants improve mindset • Competitor orienta- • Alliance orientation (collaboration!)
the value of a good or service tion • Cross-functional • Touchpoint journey orientation (also
coordination external!)
• Customer Journey: make the journey as
Strategic (not included) (added)
best as possible, think where your product direction
fits in this journey
Firm • Exploitative mindset • Ambidexterity (i.e., also explorative)
• Expanding journey: for example: ryanair capabilities
before flight, during, after, hotels, car
rental etc. Customer Experience
• Production localise/ centralise (logistics/ delivery) – local for Management
local is most of the times cheapest that what you think
o Specific needs
o Cost Efficiency
o Time Efficiency Set Strategic Central Firm
Culture Mindsets
• Marketing will shift from a brand – Directions Capabilities
company strategy ≠
centered function to a platform – brand uniquness
brand strategy
strandarisation
based strategic role (mission & vision)
that integrates AI, distributed manu-
facturing and innovation networks Orientation Towards Touchpoints Touchpoints
Experiental Reponses Thematic cohension Journey Design
o How we control the way that Touchpoint Journey Consistensy Prioritisation
customers perceive their products Alliances Context Sensititvity Journey monitoritng
Connectivity Adaption
– vital role in the whole journey
o Be connected to the commu-
Designing CE Continous renewal of
nity/ networks alliances Focus on CE
CE
Most Comparable
• Marketing though is context driven Important to diffenciate
Creativity Manage and Predict Journey
o Changing market dynamics Alliances
o Changing customer needs/ wants
• But there is consistency as to the basic assumptions since the last ‘marketing concept’
Page 3 of 39
, o Customers (& environment)
are starting point for the com-
pany success
o Differentiation by superior
(network) value delivery
• But many changes in how – marketing
management
• From Brand Management to Plat-
form Coordination: Companies shift
from brand management to platform-
based coordination, connecting mi-
cro-manufacturers with consumer
preferences.
• AI and Data in Consumer Engage-
ment: AI-driven personalization will
dominate, offering tailored experi-
ences based on behavioral data.
• Brand Differentiation to AI & Cus-
tomization: Competition moves from
traditional branding to AI-driven cus-
tomization, prioritizing real-time
adaptability over mass production.
• Horizontal Market Expansion:
o Companies expand
Production
across indus-
Suppliers Alliances needed Organization Distribution
tries to inte-
grate AI, manu- Innovation
facturing, and digital Companies can not compete Compete here! (Alliances)
services, enhancing anymore here
consumer touchpoints.
o Physical and digital experiences (e.g., VR) will be used to maintain engagement.
ARTICLE 1: THE EFFECT OF A MARKET ORIENTATION ON BUSINESS PROFITABILITY
(NARVER & SLATTER 1990)
• Market Orientation Market Performance (sustainable
competitive advancement)
• The logic of Sustainable competitive advancement
(SCA) is that for a buyer purchase offering X, the buyer
must perceive that the expected value to him of that
By increasing benefits to the buyer in relation to the buyer’s cost
By decreasing the buyer’s cost in relation to the buyer’s benefits
Page 4 of 39
