Tentamenstof Marketing
Lecture 1 – course introduction
There are some myths about marketing. The biggest one is that marketing is all about making people buy things that they
actually don’t want and don’t need, making it evil and only about advertising. However, this is not true. If it is only about
advertising, then the connection with the customer is lost. Actual definitions:
- Marketing is the activity, set of institutions and processes for creating, communicating, delivering and exchanging
offerings that have value for customers, clients, partners and the society at large.
- Marketing is the process by which companies engage customers, build stronger customer relationships and create
customer value in order to capture value from customers in return.
! marketing enables the parties to engage in exchanges and manage those exchanges to CREATE VALUE.
Value – company vs. consumer perspective
- Company perspective: value = profit = revenue – costs
o Good profit: anything that is created for the customer in the long term (sustainable).
▪ It can be earned from creating value that leads to customer loyalty, repeated purchase etc.
o Bad profit: anyting earned at the customer’s expense.
- Consumer perspective: value = benefits – costs
o Benefits: economic benefits, functional benefits and psychological benefits
o Costs (sacrifices): costs expected to incur when evaluating, obtaining, using and disposing of market offerings
(e.g. money, time, psychological cost, energy/effort)
Marketing mix: the set of actions, or tactics, that a company uses to promote its brand or product in the market.
- Price: premium pricing in all channels
- Promotion: is mostly about public relations (PR), using press, and doing that with a small marketing budget
o PR (public relations) is about managing how others see and feel about a person, brand or company.
- Place (distribution, where can you get it): mostly on hotspots
To be able to compete with competitors in your market, it is important to use points of differentation.
- You can reduce the price gap, you can produce a private label brand or you can increase the functionalities so that
customers get more for the same money.
Guestlecture Julia Velder
Marketing is about identifying consumer needs and adressing them.
- It is important to increase the brand relevance, by …
o Using ATL communication
▪ ATL = above-the-line: advertising aroudn wider target audience (e.g. TV, radio, billboards)
o Building and protecting brand assets & positioning
o Using BTL communication
▪ BTL = below-the-line: advertising is more focues and directed towards specific groups of customers
- It is important to have a profitable growth, by …
o analysing the brand & identifying the growth areas
o promotion
o introducing new products or limited editions
o making use of media planning.
The overall process of a television commercial:
1. Define target brief agency
2. Market research
o Create test material → qualitative study → optimize → quantitative study
3. Tv & photo production
a. Define partner & calculate costs → prepare shooting → shooting → post production
4. Post production
5. On air
! All the time, there must be a legal check, timings & budget, internal alignment & communication.
Some important lessons that Julia learned:
- Think of all your target groups (e.g. sals, trade and consumers)
- Don’t take yourself too seriously: brands are substitutional, and keep it simple.
- Maintain the balance between preserving and renewing: move forward and take consumers with you.
- Do what you love and keep a broad perspective.
,Lecture 2 – marketing environment and buying behaviour
SEGMENT 1 – COMPANY OBJECTIVES, MISSION, AND VISION AND THE ENVIRONMENT
Why do companies have a mission and vision statement?
- To help guide the different departments in a company.
- To be able to develop its offerings to the customer.
! the mission statement should always be wide enough for the company to fill and not too tight so the company cannot grow. In
this way, the companies can still change.
Examples of mission and vision statements:
- Starbucks: ‘to inspire and nurture the human spirit – one person, one cup and one neighborhood at the time’
- MdDonalds; ‘our mission is sto make delicious feel-good moments easy for everyone’
! their mission doesn’t even mention the coffee or food why you are normally going to Starbucks and McDonalds for. They want you to have a good
experience. However, the primary business of starbucks and McDonalds is real estate. They have a lot of sub-companies everywhere. They are trying to be at
the right moment at the right time, ready for you to have a great experience.
- Spotify: ‘our mission is to unlock the potential of human creativity – by giving a million creative artists the opportunity to live off their art and
billions of fans the opportunity to enjoy and be inspired by it.’
The objective/strategy of a company is important because it helps to direct the
efforts that a company takes across its offerings and markets.
Ansoff’s matrix: a two-by-two framework used by management teams and the
analyst community to help plan and evaluate growth initiatives
- Market penetration: sell existing product to existing market
- Market development: use existing product to find new customers in
newer markets
- Product development: introducing new products into the existing market
- Diversification: find new markets for its new products.
! the risk associated with the action increases.
Example Pepsi
- Market penetration: sell existing product to existing market
o Make product and make it bigger (500 ml to 600ml)
- Market development: use existing product to find new customers in newer markets.
o Make existing product into new market. Give the already existing market a new new (pepsi diet becomes pepsi maxx).
- Product development: introducing new products into the existing market
o pepsi cherry
- Diversification: find new markets for new products
o Walkers (Lays)
A company may be influenced by macroenvironment factors:
- Demographics - Technology
- Economy - Political environment
- Nature - Cultural environment
! it is also influenced by competition. Four levels:
- Budget competition - Product/class category competition
- Generic competition - Product form/type competition
Porter’s five forces framework: a model that identifies and analyzes five competitive forces that shape every industry and helps
determine an industry’s weaknesses and strengths.
- Rivalry among competitors
o Number of competitors, quality differences, other differences, switching costs, customer loyalty.
- Threat of new entrants
o Time and cost of entry, specialist knowledge, economies of scale,
cost advantage, technology protection, barriers to entry.
- Power of suppliers
o Number of suppliers, uniqueness of service, size of suppliers,
ability to substitute, cost of changing.
- Power of customers
o Number of customers, size of each order, differences between
competitors, price sensitivity, ability to subsitute, cost of changing
- Threat of substitute product
o Substitute performance, cost of change.
! the five forces analysis can be used to guide business strategy to increase
competitive advantage.
, People are the most important ingredient in marketing. Companies are there to serve customers. Without providing value to
customers, there is no company. Marketing is thus about relationship-building with people.
SEGMENT 2 – MARKETING AND ENVIRONMENT STRATEGY AND ASSESMENT (SWOT / PEST / BCG)
How do managers decide their strategies? By using …
- Bird’s eye view (internal/external)
o SWOT (Strength, Weaknesses, Opportunities and Threats)
- Marketing environment (external)
o PEST/LE (Political, Economic, Social, Technological/Legal, Environmental)
o Porter’s five forces
- Growth share across different offerings (offering level)
o BCG matrix
! but, which one should you use? BOTH/multiple, they give different perspectives and overlap too.
SWOT: a framework for identifying and analyzing an organization's internal and external factors.
- Strengths
o Things your company does well.
o Qualitites that separate you from your competitors
o Internal resources (such as skilled and knowledgeable staff)
o Tangible assets (such as intellectual property, capital, proprietary technologies etc.)
- Weaknesses
o Things your company lacks
o Things your competitors do better than you
o Resource limitations
o Unclear unique selling propositions
- Opportunities
o Underserved markets for specific products
o Few competitors in your area
o Emerging need for your products or services
o Press/media coverage of your company
- Threats
o Emerging competitors
o Changing regulatory environment
o Negative press/media coverage
o Changing customer attitudes towards your company
PEST/LE: studies the key external factors that influence an organisation.
- Political: political stability, governemnt policy, tax policy, foreign trade policy, corruption, labour law, trade restrictions
- Economic: economic growth, exchange rates, interest rates, inflation rates, unemployment rates, disposable income
- Sociological: population growth rate, age distribution, career attitudes, lifestyle attitudes, safety emphasis, health
consciousness, cultural barriers
- Technological: technology incentives, level of innovation, automation, R&D activity, technological awareness,
technological change
- Legal: employment laws, consumer protection laws, copyright and patent laws, health and safety laws, discrimination
laws, antitrust laws.
- Environmental: environmental policies, climate change, pressures from NGO’s, climate, weather.
BCG growth matrix: a planning tool that uses graphical representations of a company’s products and services in an effort to help
the company decide what it should keep, sell or invest more in.
- Star products: high growth and high share
o Significant amounts of investments should be made
- Question mark products: high growth but low share
o Investment depending on their changes of becoming stars
- Cash cows: low growth but high share
o Products should be milked so that products can be reinvested in stars and
question marks
- Dogs: low growth and low share
o Businesses should liquidate, divest or reposition these products
! It may help you to give direction to a brand along with products and services.
Lecture 1 – course introduction
There are some myths about marketing. The biggest one is that marketing is all about making people buy things that they
actually don’t want and don’t need, making it evil and only about advertising. However, this is not true. If it is only about
advertising, then the connection with the customer is lost. Actual definitions:
- Marketing is the activity, set of institutions and processes for creating, communicating, delivering and exchanging
offerings that have value for customers, clients, partners and the society at large.
- Marketing is the process by which companies engage customers, build stronger customer relationships and create
customer value in order to capture value from customers in return.
! marketing enables the parties to engage in exchanges and manage those exchanges to CREATE VALUE.
Value – company vs. consumer perspective
- Company perspective: value = profit = revenue – costs
o Good profit: anything that is created for the customer in the long term (sustainable).
▪ It can be earned from creating value that leads to customer loyalty, repeated purchase etc.
o Bad profit: anyting earned at the customer’s expense.
- Consumer perspective: value = benefits – costs
o Benefits: economic benefits, functional benefits and psychological benefits
o Costs (sacrifices): costs expected to incur when evaluating, obtaining, using and disposing of market offerings
(e.g. money, time, psychological cost, energy/effort)
Marketing mix: the set of actions, or tactics, that a company uses to promote its brand or product in the market.
- Price: premium pricing in all channels
- Promotion: is mostly about public relations (PR), using press, and doing that with a small marketing budget
o PR (public relations) is about managing how others see and feel about a person, brand or company.
- Place (distribution, where can you get it): mostly on hotspots
To be able to compete with competitors in your market, it is important to use points of differentation.
- You can reduce the price gap, you can produce a private label brand or you can increase the functionalities so that
customers get more for the same money.
Guestlecture Julia Velder
Marketing is about identifying consumer needs and adressing them.
- It is important to increase the brand relevance, by …
o Using ATL communication
▪ ATL = above-the-line: advertising aroudn wider target audience (e.g. TV, radio, billboards)
o Building and protecting brand assets & positioning
o Using BTL communication
▪ BTL = below-the-line: advertising is more focues and directed towards specific groups of customers
- It is important to have a profitable growth, by …
o analysing the brand & identifying the growth areas
o promotion
o introducing new products or limited editions
o making use of media planning.
The overall process of a television commercial:
1. Define target brief agency
2. Market research
o Create test material → qualitative study → optimize → quantitative study
3. Tv & photo production
a. Define partner & calculate costs → prepare shooting → shooting → post production
4. Post production
5. On air
! All the time, there must be a legal check, timings & budget, internal alignment & communication.
Some important lessons that Julia learned:
- Think of all your target groups (e.g. sals, trade and consumers)
- Don’t take yourself too seriously: brands are substitutional, and keep it simple.
- Maintain the balance between preserving and renewing: move forward and take consumers with you.
- Do what you love and keep a broad perspective.
,Lecture 2 – marketing environment and buying behaviour
SEGMENT 1 – COMPANY OBJECTIVES, MISSION, AND VISION AND THE ENVIRONMENT
Why do companies have a mission and vision statement?
- To help guide the different departments in a company.
- To be able to develop its offerings to the customer.
! the mission statement should always be wide enough for the company to fill and not too tight so the company cannot grow. In
this way, the companies can still change.
Examples of mission and vision statements:
- Starbucks: ‘to inspire and nurture the human spirit – one person, one cup and one neighborhood at the time’
- MdDonalds; ‘our mission is sto make delicious feel-good moments easy for everyone’
! their mission doesn’t even mention the coffee or food why you are normally going to Starbucks and McDonalds for. They want you to have a good
experience. However, the primary business of starbucks and McDonalds is real estate. They have a lot of sub-companies everywhere. They are trying to be at
the right moment at the right time, ready for you to have a great experience.
- Spotify: ‘our mission is to unlock the potential of human creativity – by giving a million creative artists the opportunity to live off their art and
billions of fans the opportunity to enjoy and be inspired by it.’
The objective/strategy of a company is important because it helps to direct the
efforts that a company takes across its offerings and markets.
Ansoff’s matrix: a two-by-two framework used by management teams and the
analyst community to help plan and evaluate growth initiatives
- Market penetration: sell existing product to existing market
- Market development: use existing product to find new customers in
newer markets
- Product development: introducing new products into the existing market
- Diversification: find new markets for its new products.
! the risk associated with the action increases.
Example Pepsi
- Market penetration: sell existing product to existing market
o Make product and make it bigger (500 ml to 600ml)
- Market development: use existing product to find new customers in newer markets.
o Make existing product into new market. Give the already existing market a new new (pepsi diet becomes pepsi maxx).
- Product development: introducing new products into the existing market
o pepsi cherry
- Diversification: find new markets for new products
o Walkers (Lays)
A company may be influenced by macroenvironment factors:
- Demographics - Technology
- Economy - Political environment
- Nature - Cultural environment
! it is also influenced by competition. Four levels:
- Budget competition - Product/class category competition
- Generic competition - Product form/type competition
Porter’s five forces framework: a model that identifies and analyzes five competitive forces that shape every industry and helps
determine an industry’s weaknesses and strengths.
- Rivalry among competitors
o Number of competitors, quality differences, other differences, switching costs, customer loyalty.
- Threat of new entrants
o Time and cost of entry, specialist knowledge, economies of scale,
cost advantage, technology protection, barriers to entry.
- Power of suppliers
o Number of suppliers, uniqueness of service, size of suppliers,
ability to substitute, cost of changing.
- Power of customers
o Number of customers, size of each order, differences between
competitors, price sensitivity, ability to subsitute, cost of changing
- Threat of substitute product
o Substitute performance, cost of change.
! the five forces analysis can be used to guide business strategy to increase
competitive advantage.
, People are the most important ingredient in marketing. Companies are there to serve customers. Without providing value to
customers, there is no company. Marketing is thus about relationship-building with people.
SEGMENT 2 – MARKETING AND ENVIRONMENT STRATEGY AND ASSESMENT (SWOT / PEST / BCG)
How do managers decide their strategies? By using …
- Bird’s eye view (internal/external)
o SWOT (Strength, Weaknesses, Opportunities and Threats)
- Marketing environment (external)
o PEST/LE (Political, Economic, Social, Technological/Legal, Environmental)
o Porter’s five forces
- Growth share across different offerings (offering level)
o BCG matrix
! but, which one should you use? BOTH/multiple, they give different perspectives and overlap too.
SWOT: a framework for identifying and analyzing an organization's internal and external factors.
- Strengths
o Things your company does well.
o Qualitites that separate you from your competitors
o Internal resources (such as skilled and knowledgeable staff)
o Tangible assets (such as intellectual property, capital, proprietary technologies etc.)
- Weaknesses
o Things your company lacks
o Things your competitors do better than you
o Resource limitations
o Unclear unique selling propositions
- Opportunities
o Underserved markets for specific products
o Few competitors in your area
o Emerging need for your products or services
o Press/media coverage of your company
- Threats
o Emerging competitors
o Changing regulatory environment
o Negative press/media coverage
o Changing customer attitudes towards your company
PEST/LE: studies the key external factors that influence an organisation.
- Political: political stability, governemnt policy, tax policy, foreign trade policy, corruption, labour law, trade restrictions
- Economic: economic growth, exchange rates, interest rates, inflation rates, unemployment rates, disposable income
- Sociological: population growth rate, age distribution, career attitudes, lifestyle attitudes, safety emphasis, health
consciousness, cultural barriers
- Technological: technology incentives, level of innovation, automation, R&D activity, technological awareness,
technological change
- Legal: employment laws, consumer protection laws, copyright and patent laws, health and safety laws, discrimination
laws, antitrust laws.
- Environmental: environmental policies, climate change, pressures from NGO’s, climate, weather.
BCG growth matrix: a planning tool that uses graphical representations of a company’s products and services in an effort to help
the company decide what it should keep, sell or invest more in.
- Star products: high growth and high share
o Significant amounts of investments should be made
- Question mark products: high growth but low share
o Investment depending on their changes of becoming stars
- Cash cows: low growth but high share
o Products should be milked so that products can be reinvested in stars and
question marks
- Dogs: low growth and low share
o Businesses should liquidate, divest or reposition these products
! It may help you to give direction to a brand along with products and services.
