Marketing lecture notes
Week 1 - Lecture 1
Scope of Marketing for New Realities - Chapter 1
- Marketing definitions:
- Marketing is the performance of business activities that direct the flow of goods and
services from producers to consumers
- Marketing is the process of planning and executing the conception, pricing,
promotion, and distribution of ideas, goods, and services to create exchanges that
satisfy individuals and organizational objectives
- Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large (American Marketing Association)
- A brief history of marketing
- Era 1: Pre-academic Marketing thought (prior to 1900)
- Even ancient Greek Socratic philosophers, Plato and Aristotle, discussed
macro-marketing issues
- How is marketing integrated in society?
- Middle Ages: medieval schoolmen (St. Thomas of Aquinas) wrote about
micro-marketing concerns
- How to practice marketing ethically and without sin?
- Marketing as an academic discipline emerged as a branch of applied
economics
- Era 2: Traditional approaches to marketing thoughts (1900-1955)
- Focus on macro marketing
- First marketing courses taught in American uni in 1902
- Background: factories with mass production, the emergence of national
brands and chain stores, rural mail and package delivery, growing newspaper
and magazine advertising, completion of the transcontinental railroad
- How to improve mass distribution to facilitate mass consumption? =
marketing system perspective (macro)
- Focus on marketing functions:
- Distribution and exchange activities by specialized marketing
institutions/middlemen
- Purpose? - to move agricultural and manufacturing commodities
from supply sources to demand places, were socially useful and
economically valuable
- Era 3: Paradigm shift (1955-1975)
- Focus on marketing management (micro marketing) as the new mainstream
, - Largely based on work by Wroe Alderson
- Perspective of marketing managers = seller (micro-marketing)
- How should organizations marketing their products and services?
- Marketing mix -> direct impact on firm sales
- Background: after WWII, the shift in capacity from military production to
consumer goods spurred economic growth in the US
- Creation of surpluses
- Necessity for demand generation
- Based on work by Alderson
- Era 4: Paradigm broadening (1975-2020)
- Based on work by Kotler and co-authors (1975-200)
- 4 major institutionalized fields of study:
- marketing management
- consumer behavior
- quantitative/modeling
- macro-marketing
- Era 5: (2020-??)
- Macromarketing as a field of significant promise?
- Macromarketing school of thought:
- Concepts of ‘macro-marketing emerged in the 1970s
- Address the big picture:
- A societal perspective
- A high level of aggregation
- The consequences of marketing on the society
- The consequences of society on marketing
- Creating customer value? Understanding latent customer needs and wants
- Sometimes better than customers themselves: teaching them of their wants and
needs
- Marketing management philosophies/orientations:
- Are these philosophies mutually exclusive?
- Production concept: production and distribution efficiency
- Product concept: continuous product improvement
- Selling concept: transactions, not relations
- Marketing concept: customer focus, understanding needs and wants
- Holistic marketing concept: everything matters in marketing
- Requires a broad, integrated perspective, including
- Internal marketing: marketing department, seminar management,
other departments
, - Performance marketing: sales revenue, brand and customer equity,
ethics, environment, legal, community, people, planet, profit
- Responsible marketing
- Integrated marketing: communications, products and services,
channels
- Relationship marketing: customers, channels, partners
- Misconception 1: value is always created and captured by business:
- Value initiated by business dated back to traditional marketing, while there is
always value initiated by consumers
- Misconception 2: marketing always ends with the sale of products and services
- While there is also the circular economy alongside with the linear economy
- Systems thinking:
- Linear economy:
- Flows like a river
- Ownership and liability for risks and waste pass to the buyer at the
point of sale
- Efficient in overcoming scarcity BUT wasting resources (in saturated
markets)
- Circular economy:
- Flows like a lake
- New jobs through reprocessing of materials and goods, energy
savings
- Performance economy:
- Selling goods (or molecules) as services (renting, leasing, sharing)
- “Product as a service”
- Ownership remains with the manufacturer
- 17 SDGs (Sustainable development goals) and 17 Good life Goals
- Are ‘marketing’ and ‘sustainability’ compatible?
Marketing Strategies and Plans - Chapter 2
- Marketing strategy examples:
- VRINE, resources, competencies, corporate and business strategic planning, SWOT,
PESTEL, Porter’s generic strategies, mission statements etc.
- Input for the marketing plan
- At which level does strategic marketing planning take place?
- Corporate-level strategy
- In what business do we want to be active?
, - How can we, as a corporate parent, add value to our particular lines of
business?
- How will entering new lines of business help us to compete in our current
ones?
- Business-level strategy:
- How can we achieve our objectives within this particular line of business?
- Both today and in the future?
- A company might have different brands within the same
departments selling the same product type but focusing on different
customer groups
- Strategic planning
- Business Unit Strategic Planning:
- For each SBU
- Business mission
- SWOT analysis
- Macros and micro environment
- PESTEL, 5 forces
- Resources and capabilities
- VRINE and value chain
- Goal formulation: WHAT to achieve?
- Strategy formulation: HOW to achieve that?
- Program formulation
- Implementation
- Feedback and control
- Marketing Plan: for individual products, lines, brands, channels, segments
- Core questions to be answered
- What have we learned about the marketplace?
- How will we reach our marketing objectives?
- Contents:
- Executive summary and table of contents
- Situation analysis:
- current target markets (needs, trends, growth), product review,
competitors, SWOT
- (Pestel, 5 Forces, VRINE,...), etc.
- Marketing strategy:
- mission, marketing and financial objectives, target markets,
positioning
- Marketing tactics
Week 1 - Lecture 1
Scope of Marketing for New Realities - Chapter 1
- Marketing definitions:
- Marketing is the performance of business activities that direct the flow of goods and
services from producers to consumers
- Marketing is the process of planning and executing the conception, pricing,
promotion, and distribution of ideas, goods, and services to create exchanges that
satisfy individuals and organizational objectives
- Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large (American Marketing Association)
- A brief history of marketing
- Era 1: Pre-academic Marketing thought (prior to 1900)
- Even ancient Greek Socratic philosophers, Plato and Aristotle, discussed
macro-marketing issues
- How is marketing integrated in society?
- Middle Ages: medieval schoolmen (St. Thomas of Aquinas) wrote about
micro-marketing concerns
- How to practice marketing ethically and without sin?
- Marketing as an academic discipline emerged as a branch of applied
economics
- Era 2: Traditional approaches to marketing thoughts (1900-1955)
- Focus on macro marketing
- First marketing courses taught in American uni in 1902
- Background: factories with mass production, the emergence of national
brands and chain stores, rural mail and package delivery, growing newspaper
and magazine advertising, completion of the transcontinental railroad
- How to improve mass distribution to facilitate mass consumption? =
marketing system perspective (macro)
- Focus on marketing functions:
- Distribution and exchange activities by specialized marketing
institutions/middlemen
- Purpose? - to move agricultural and manufacturing commodities
from supply sources to demand places, were socially useful and
economically valuable
- Era 3: Paradigm shift (1955-1975)
- Focus on marketing management (micro marketing) as the new mainstream
, - Largely based on work by Wroe Alderson
- Perspective of marketing managers = seller (micro-marketing)
- How should organizations marketing their products and services?
- Marketing mix -> direct impact on firm sales
- Background: after WWII, the shift in capacity from military production to
consumer goods spurred economic growth in the US
- Creation of surpluses
- Necessity for demand generation
- Based on work by Alderson
- Era 4: Paradigm broadening (1975-2020)
- Based on work by Kotler and co-authors (1975-200)
- 4 major institutionalized fields of study:
- marketing management
- consumer behavior
- quantitative/modeling
- macro-marketing
- Era 5: (2020-??)
- Macromarketing as a field of significant promise?
- Macromarketing school of thought:
- Concepts of ‘macro-marketing emerged in the 1970s
- Address the big picture:
- A societal perspective
- A high level of aggregation
- The consequences of marketing on the society
- The consequences of society on marketing
- Creating customer value? Understanding latent customer needs and wants
- Sometimes better than customers themselves: teaching them of their wants and
needs
- Marketing management philosophies/orientations:
- Are these philosophies mutually exclusive?
- Production concept: production and distribution efficiency
- Product concept: continuous product improvement
- Selling concept: transactions, not relations
- Marketing concept: customer focus, understanding needs and wants
- Holistic marketing concept: everything matters in marketing
- Requires a broad, integrated perspective, including
- Internal marketing: marketing department, seminar management,
other departments
, - Performance marketing: sales revenue, brand and customer equity,
ethics, environment, legal, community, people, planet, profit
- Responsible marketing
- Integrated marketing: communications, products and services,
channels
- Relationship marketing: customers, channels, partners
- Misconception 1: value is always created and captured by business:
- Value initiated by business dated back to traditional marketing, while there is
always value initiated by consumers
- Misconception 2: marketing always ends with the sale of products and services
- While there is also the circular economy alongside with the linear economy
- Systems thinking:
- Linear economy:
- Flows like a river
- Ownership and liability for risks and waste pass to the buyer at the
point of sale
- Efficient in overcoming scarcity BUT wasting resources (in saturated
markets)
- Circular economy:
- Flows like a lake
- New jobs through reprocessing of materials and goods, energy
savings
- Performance economy:
- Selling goods (or molecules) as services (renting, leasing, sharing)
- “Product as a service”
- Ownership remains with the manufacturer
- 17 SDGs (Sustainable development goals) and 17 Good life Goals
- Are ‘marketing’ and ‘sustainability’ compatible?
Marketing Strategies and Plans - Chapter 2
- Marketing strategy examples:
- VRINE, resources, competencies, corporate and business strategic planning, SWOT,
PESTEL, Porter’s generic strategies, mission statements etc.
- Input for the marketing plan
- At which level does strategic marketing planning take place?
- Corporate-level strategy
- In what business do we want to be active?
, - How can we, as a corporate parent, add value to our particular lines of
business?
- How will entering new lines of business help us to compete in our current
ones?
- Business-level strategy:
- How can we achieve our objectives within this particular line of business?
- Both today and in the future?
- A company might have different brands within the same
departments selling the same product type but focusing on different
customer groups
- Strategic planning
- Business Unit Strategic Planning:
- For each SBU
- Business mission
- SWOT analysis
- Macros and micro environment
- PESTEL, 5 forces
- Resources and capabilities
- VRINE and value chain
- Goal formulation: WHAT to achieve?
- Strategy formulation: HOW to achieve that?
- Program formulation
- Implementation
- Feedback and control
- Marketing Plan: for individual products, lines, brands, channels, segments
- Core questions to be answered
- What have we learned about the marketplace?
- How will we reach our marketing objectives?
- Contents:
- Executive summary and table of contents
- Situation analysis:
- current target markets (needs, trends, growth), product review,
competitors, SWOT
- (Pestel, 5 Forces, VRINE,...), etc.
- Marketing strategy:
- mission, marketing and financial objectives, target markets,
positioning
- Marketing tactics
