SUMMARY
MARKETING
MANAGEMENT
1IBM | 2020-2021
Page 0 of 163
, Table of Contents
CHAPTER 1: DEFINING MARKETING FOR THE 21ST CENTURY ........................................................... 7
WHAT IS MARKETING MANAGEMENT? ................................................................................................... 7
Process by which companies. Create value for customers & build strong customer relationships in
order to capture value from customers in return ......................................................................... 7
Example: IKEA ......................................................................................................................... 7
WHAT CAN BE MARKETED? ................................................................................................................. 7
WHO MARKETS?.............................................................................................................................. 7
CORE MARKETING CONCEPTS BV DR MARTENS ->ONLY IN CERTAIN STORES, SPECIALIZED TARGET MARKET) ............ 7
THE NEW MARKETING REALITIES .......................................................................................................... 1
NEW COMPANY CAPABILITIES ............................................................................................................. 1
THE HOLISTIC APPROACH ................................................................................................................... 5
UPDATING THE 4 P’S ........................................................................................................................ 5
MARKETING MANAGEMENT TASKS ....................................................................................................... 6
Example: ex-student now PR at Waasland-Beveren .................................................................... 6
SUMMARY CHAPTER 1 KOTLER-KELLER ................................................................................................ 7
CHAPTER 2: DEVELOPING MARKETING PLANS AND STRATEGIES ..................................................... 8
HOW DOES MARKETING AFFECT CUSTOMER VALUE? ................................................................................. 8
Case Pegasus ........................................................................................................................... 8
Porters Value Chain .................................................................................................................. 8
Strategical Activities ................................................................................................................ 9
Value ( only created when every department is aligned) ............................................................. 10
Value = Planning ..................................................................................................................... 10
HOW IS STRATEGIC PLANNING CARRIED OUT AT DIFFERENT LEVELS OF THE ORGANIZATION? .............................. 10
1. Defining the corporate mission .......................................................................................... 10
2. Establishing strategic business units .................................................................................. 10
3. Assigning resources to each strategic business unit ............................................................. 10
4. Assessing growth opportunities ........................................................................................ 10
BUSINESS UNIT STRATEGIC PLANNING.................................................................................................. 11
PRODUCT PLANNING ....................................................................................................................... 11
SUMMARY CHAPTER 2 KOTLER-KELLER ............................................................................................... 12
CHAPTER 3: COLLECTING INFORMATION AND FORECASTING DEMAND .......................................... 13
INTRODUCTION .............................................................................................................................. 13
DEMAND & FORCASTING DEMAND ...................................................................................................... 13
WHAT ARE THE COMPONENTS OF A MODERN MARKETING INFORMATION SYSTEM? .......................................... 13
Internal company records: What are useful internal records for such a system? ............................14
Marketing intelligence activities : What makes up a marketing intelligence system? ....................16
Marketing Research: Analyzing the Macroenvironment ............................................................. 17
DEMAND AND FORECASTING DEMAND.................................................................................................. 17
What are some influential macroenvironment developments? .................................................... 17
How can companies accurately measure and forecast demand? ..................................................19
SUMMARY CHAPTER 3 KOTLER KELLER ................................................................................................ 20
CHAPTER 4: CONDUCTING MARKET RESEARCH .............................................................................. 21
INTRODUCTION .............................................................................................................................. 21
MARKETING RESEARCH PROCESS ........................................................................................................ 21
Define the problem ................................................................................................................. 21
Develop the research plan ........................................................................................................ 21
Collect the information ............................................................................................................ 25
Analyze the information .......................................................................................................... 25
Present the findings ................................................................................................................ 25
Make the decision ................................................................................................................... 25
MEASURING MARKETING PRODUCTIVITY .............................................................................................. 25
SUMMARY CHAPTER 4 KOTLER-KELLER .............................................................................................. 28
Page 1 of 163
,CHAPTER 5: CREATING LONG-TERM LOYALTY RELATIONSHIPS ......................................................29
1) BUILDING CUSTOMER VALUE, SATISFACTION AND LOYALTY ..........................................................29
Traditional versus modern organizations ..................................................................................29
How Do Customers Make Choices? ...........................................................................................29
Value Proposition.................................................................................................................... 30
MONITORING SATISFACTION AND MEASUREMENT TECHNIQUES : ................................................................ 31
MAXIMIZING CUSTOMER LIFETIME VALUE ............................................................................................. 31
Customer Profitability Analysis ................................................................................................ 32
Marketers play several roles in helping their company define and deliver high quality goods and
services to target customers. ................................................................................................... 32
CULTIVATING CUSTOMER RELATIONSHIPS ............................................................................................ 33
Example: Hotel -> address customers by name .......................................................................... 33
Example: H&M ........................................................................................................................ 33
CUSTOMER DATABASE & DATABASE MARKETING .................................................................................... 34
Customer Databases ............................................................................................................... 34
Data Warehouses and Data Mining ........................................................................................... 34
The Downside of Database Marketing and CRM......................................................................... 35
SUMMARY CHAPTER 5 KOTLER KELLER ................................................................................................38
CHAPTER 6: ANALYZING CONSUMER MARKETS .............................................................................39
WHAT INFLUENCES CONSUMER BEHAVIOR ...........................................................................................39
Cultural factors .......................................................................................................................39
Social factors ..........................................................................................................................39
Personal factors ......................................................................................................................39
WHAT MAJOR PSYCHOLOGICAL PROCESSES INFLUENCES CONSUMER RESPONSES TO THE MARKETING PROGRAM ? ..40
Perception ..............................................................................................................................40
Learning .................................................................................................................................40
Emotions ................................................................................................................................41
Memories ...............................................................................................................................41
HOW DO CONSUMERS MAKE PURCHASING DECISION? .............................................................................. 45
Low versus high involvement consumer decision making ........................................................... 45
SUMMARY CHAPTER 6 KOTLER KELLER............................................................................................... 46
CHAPTER 7: ANALYZING BUSINESS MARKETS ................................................................................ 47
B2B VERSUS B2C ........................................................................................................................... 47
Procurement........................................................................................................................... 47
STAGES IN THE BUYING PROCESS ........................................................................................................ 47
SUMMARY CHAPTER 7 KOTLER KELLER ................................................................................................ 52
CHAPTER 8: IDENTIFYING MARKET SEGMENTS AND TARGETS........................................................ 53
MARKET SEGMENTATION ................................................................................................................. 53
Segmenting ............................................................................................................................ 53
Bases for Segmenting Consumer Markets ................................................................................. 53
Bases for Segmenting Business Markets ................................................................................... 55
MARKET TARGETING .......................................................................................................................56
Meso ...................................................................................................................................... 57
BARGAINING POWER OF SUPPLIERS ..................................................................................................... 57
THREAT OF SUBSTITUTE PRODUCTS .....................................................................................................58
BARGAINING POWER OF BUYERS.........................................................................................................58
THREAT OF NEW ENTRANTS...............................................................................................................58
RIVALRY AMONG EXISTING COMPETITORS .............................................................................................58
EVALUATING AND SELECTING THE MARKET SEGMENTS .............................................................................58
SUMMARY CHAPTER 8 KOTLER KELLER................................................................................................59
CHAPTER 9: CREATING BRAND EQUITY ......................................................................................... 60
THE ROLE OF BRANDS .................................................................................................................... 60
BRANDING ................................................................................................................................... 60
Page 2 of 163
, Example: the story of M&M’s .................................................................................................. 60
BRAND EQUITY ..............................................................................................................................61
Brand Equity Models ...............................................................................................................61
BUILDING BRAND EQUITY.................................................................................................................65
DESIGNING HOLISTIC MARKETING ACTIVITIES ........................................................................................65
COLOR PSYCHOLOGY ..................................................................................................................... 66
MANAGING BRAND EQUITY ..............................................................................................................67
DEVISING A BRANDING STRATEGY (BRAND ARCHITECTURE) ......................................................................67
SUMMARY CHAPTER 9 KOTLER KELLER............................................................................................... 69
CHAPTER 10: CRAFTING THE BRAND POSITIONING ......................................................................... 70
DEVELOPING AND ESTABLISHING A BRAND POSITIONING ......................................................................... 70
POSITIONING ................................................................................................................................. 70
DETERMINING A COMPETITIVE FRAME OF REFERENCE ............................................................................... 70
POSITIONING A BRAND BY CHOOSING POPS AND PODS: PERCEPTUAL MAPS ............................................... 71
BRAND MANTRAS........................................................................................................................... 71
DIFFERENTIATION STRATEGIES .......................................................................................................... 72
ALTERNATIVE APPROACHES TO POSITIONING ........................................................................................ 73
SUMMARY CHAPTER 10 KOTLER KELLER .............................................................................................. 74
CHAPTER 11: COMPETITIVE DYNAMICS........................................................................................... 75
COMPETITIVE STRATEGIES FOR MARKET LEADERS ................................................................................... 75
OTHER COMPETITIVE STRATEGIES ......................................................................................................76
Market challenger strategies ....................................................................................................76
Market follower strategies .......................................................................................................78
Market-nicher strategies..........................................................................................................79
PRODUCT LIFE-CYCLE MARKETING STRATEGIES .................................................................................... 80
Marketing Strategies: Introduction Phase and Pioneer Advantage ..............................................81
Marketing strategies: growth stage ..........................................................................................81
Marketing strategies: maturity stage ....................................................................................... 82
Marketing strategies: decline stage ......................................................................................... 82
MARKETING IN AN ECONOMIC DOWNTURN .......................................................................................... 82
SUMMARY CHAPTER 11 KOTLER KELLER ..............................................................................................85
CHAPTER 12: SETTING PRODUCT STRATEGY ................................................................................. 86
DEFINITION OF A PRODUCT............................................................................................................... 86
CUSTOMER VALUE HIERARCHY .......................................................................................................... 86
PRODUCT AND SERVICES DIFFERENTIATION ...........................................................................................87
PRODUCT AND BRAND RELATIONSHIPS ................................................................................................87
Product systems and mixes......................................................................................................87
Product line analysis............................................................................................................... 88
Product mix pricing ( you dont want the same price for all your brands) ...................................... 89
Co-branding and ingredient branding .......................................................................................91
PACKAGING...................................................................................................................................91
LABELING .....................................................................................................................................92
WARRANTIES AND GUARANTEES ........................................................................................................92
SUMMARY CHAPTER 12 KOTLER KELLER ..............................................................................................93
CHAPTER 13: DESIGNING AND MANAGING SERVICES ..................................................................... 94
CHARACTERISTICS OF SERVICES ......................................................................................................... 94
THE NEW SERVICE REALITY ............................................................................................................. 94
ACHIEVING EXCELLENCE IN SERVICE MARKETING .....................................................................................95
Expanded Marketing Mix for Services ...................................................................................... 96
Example: Apple...................................................................................................................... 96
SUMMARY CHAPTER 13 KOTLER KELLER ..............................................................................................97
CHAPTER 14: DEVELOPING PRICING STRATEGIES & PROGRAMS .................................................... 98
Page 3 of 163
MARKETING
MANAGEMENT
1IBM | 2020-2021
Page 0 of 163
, Table of Contents
CHAPTER 1: DEFINING MARKETING FOR THE 21ST CENTURY ........................................................... 7
WHAT IS MARKETING MANAGEMENT? ................................................................................................... 7
Process by which companies. Create value for customers & build strong customer relationships in
order to capture value from customers in return ......................................................................... 7
Example: IKEA ......................................................................................................................... 7
WHAT CAN BE MARKETED? ................................................................................................................. 7
WHO MARKETS?.............................................................................................................................. 7
CORE MARKETING CONCEPTS BV DR MARTENS ->ONLY IN CERTAIN STORES, SPECIALIZED TARGET MARKET) ............ 7
THE NEW MARKETING REALITIES .......................................................................................................... 1
NEW COMPANY CAPABILITIES ............................................................................................................. 1
THE HOLISTIC APPROACH ................................................................................................................... 5
UPDATING THE 4 P’S ........................................................................................................................ 5
MARKETING MANAGEMENT TASKS ....................................................................................................... 6
Example: ex-student now PR at Waasland-Beveren .................................................................... 6
SUMMARY CHAPTER 1 KOTLER-KELLER ................................................................................................ 7
CHAPTER 2: DEVELOPING MARKETING PLANS AND STRATEGIES ..................................................... 8
HOW DOES MARKETING AFFECT CUSTOMER VALUE? ................................................................................. 8
Case Pegasus ........................................................................................................................... 8
Porters Value Chain .................................................................................................................. 8
Strategical Activities ................................................................................................................ 9
Value ( only created when every department is aligned) ............................................................. 10
Value = Planning ..................................................................................................................... 10
HOW IS STRATEGIC PLANNING CARRIED OUT AT DIFFERENT LEVELS OF THE ORGANIZATION? .............................. 10
1. Defining the corporate mission .......................................................................................... 10
2. Establishing strategic business units .................................................................................. 10
3. Assigning resources to each strategic business unit ............................................................. 10
4. Assessing growth opportunities ........................................................................................ 10
BUSINESS UNIT STRATEGIC PLANNING.................................................................................................. 11
PRODUCT PLANNING ....................................................................................................................... 11
SUMMARY CHAPTER 2 KOTLER-KELLER ............................................................................................... 12
CHAPTER 3: COLLECTING INFORMATION AND FORECASTING DEMAND .......................................... 13
INTRODUCTION .............................................................................................................................. 13
DEMAND & FORCASTING DEMAND ...................................................................................................... 13
WHAT ARE THE COMPONENTS OF A MODERN MARKETING INFORMATION SYSTEM? .......................................... 13
Internal company records: What are useful internal records for such a system? ............................14
Marketing intelligence activities : What makes up a marketing intelligence system? ....................16
Marketing Research: Analyzing the Macroenvironment ............................................................. 17
DEMAND AND FORECASTING DEMAND.................................................................................................. 17
What are some influential macroenvironment developments? .................................................... 17
How can companies accurately measure and forecast demand? ..................................................19
SUMMARY CHAPTER 3 KOTLER KELLER ................................................................................................ 20
CHAPTER 4: CONDUCTING MARKET RESEARCH .............................................................................. 21
INTRODUCTION .............................................................................................................................. 21
MARKETING RESEARCH PROCESS ........................................................................................................ 21
Define the problem ................................................................................................................. 21
Develop the research plan ........................................................................................................ 21
Collect the information ............................................................................................................ 25
Analyze the information .......................................................................................................... 25
Present the findings ................................................................................................................ 25
Make the decision ................................................................................................................... 25
MEASURING MARKETING PRODUCTIVITY .............................................................................................. 25
SUMMARY CHAPTER 4 KOTLER-KELLER .............................................................................................. 28
Page 1 of 163
,CHAPTER 5: CREATING LONG-TERM LOYALTY RELATIONSHIPS ......................................................29
1) BUILDING CUSTOMER VALUE, SATISFACTION AND LOYALTY ..........................................................29
Traditional versus modern organizations ..................................................................................29
How Do Customers Make Choices? ...........................................................................................29
Value Proposition.................................................................................................................... 30
MONITORING SATISFACTION AND MEASUREMENT TECHNIQUES : ................................................................ 31
MAXIMIZING CUSTOMER LIFETIME VALUE ............................................................................................. 31
Customer Profitability Analysis ................................................................................................ 32
Marketers play several roles in helping their company define and deliver high quality goods and
services to target customers. ................................................................................................... 32
CULTIVATING CUSTOMER RELATIONSHIPS ............................................................................................ 33
Example: Hotel -> address customers by name .......................................................................... 33
Example: H&M ........................................................................................................................ 33
CUSTOMER DATABASE & DATABASE MARKETING .................................................................................... 34
Customer Databases ............................................................................................................... 34
Data Warehouses and Data Mining ........................................................................................... 34
The Downside of Database Marketing and CRM......................................................................... 35
SUMMARY CHAPTER 5 KOTLER KELLER ................................................................................................38
CHAPTER 6: ANALYZING CONSUMER MARKETS .............................................................................39
WHAT INFLUENCES CONSUMER BEHAVIOR ...........................................................................................39
Cultural factors .......................................................................................................................39
Social factors ..........................................................................................................................39
Personal factors ......................................................................................................................39
WHAT MAJOR PSYCHOLOGICAL PROCESSES INFLUENCES CONSUMER RESPONSES TO THE MARKETING PROGRAM ? ..40
Perception ..............................................................................................................................40
Learning .................................................................................................................................40
Emotions ................................................................................................................................41
Memories ...............................................................................................................................41
HOW DO CONSUMERS MAKE PURCHASING DECISION? .............................................................................. 45
Low versus high involvement consumer decision making ........................................................... 45
SUMMARY CHAPTER 6 KOTLER KELLER............................................................................................... 46
CHAPTER 7: ANALYZING BUSINESS MARKETS ................................................................................ 47
B2B VERSUS B2C ........................................................................................................................... 47
Procurement........................................................................................................................... 47
STAGES IN THE BUYING PROCESS ........................................................................................................ 47
SUMMARY CHAPTER 7 KOTLER KELLER ................................................................................................ 52
CHAPTER 8: IDENTIFYING MARKET SEGMENTS AND TARGETS........................................................ 53
MARKET SEGMENTATION ................................................................................................................. 53
Segmenting ............................................................................................................................ 53
Bases for Segmenting Consumer Markets ................................................................................. 53
Bases for Segmenting Business Markets ................................................................................... 55
MARKET TARGETING .......................................................................................................................56
Meso ...................................................................................................................................... 57
BARGAINING POWER OF SUPPLIERS ..................................................................................................... 57
THREAT OF SUBSTITUTE PRODUCTS .....................................................................................................58
BARGAINING POWER OF BUYERS.........................................................................................................58
THREAT OF NEW ENTRANTS...............................................................................................................58
RIVALRY AMONG EXISTING COMPETITORS .............................................................................................58
EVALUATING AND SELECTING THE MARKET SEGMENTS .............................................................................58
SUMMARY CHAPTER 8 KOTLER KELLER................................................................................................59
CHAPTER 9: CREATING BRAND EQUITY ......................................................................................... 60
THE ROLE OF BRANDS .................................................................................................................... 60
BRANDING ................................................................................................................................... 60
Page 2 of 163
, Example: the story of M&M’s .................................................................................................. 60
BRAND EQUITY ..............................................................................................................................61
Brand Equity Models ...............................................................................................................61
BUILDING BRAND EQUITY.................................................................................................................65
DESIGNING HOLISTIC MARKETING ACTIVITIES ........................................................................................65
COLOR PSYCHOLOGY ..................................................................................................................... 66
MANAGING BRAND EQUITY ..............................................................................................................67
DEVISING A BRANDING STRATEGY (BRAND ARCHITECTURE) ......................................................................67
SUMMARY CHAPTER 9 KOTLER KELLER............................................................................................... 69
CHAPTER 10: CRAFTING THE BRAND POSITIONING ......................................................................... 70
DEVELOPING AND ESTABLISHING A BRAND POSITIONING ......................................................................... 70
POSITIONING ................................................................................................................................. 70
DETERMINING A COMPETITIVE FRAME OF REFERENCE ............................................................................... 70
POSITIONING A BRAND BY CHOOSING POPS AND PODS: PERCEPTUAL MAPS ............................................... 71
BRAND MANTRAS........................................................................................................................... 71
DIFFERENTIATION STRATEGIES .......................................................................................................... 72
ALTERNATIVE APPROACHES TO POSITIONING ........................................................................................ 73
SUMMARY CHAPTER 10 KOTLER KELLER .............................................................................................. 74
CHAPTER 11: COMPETITIVE DYNAMICS........................................................................................... 75
COMPETITIVE STRATEGIES FOR MARKET LEADERS ................................................................................... 75
OTHER COMPETITIVE STRATEGIES ......................................................................................................76
Market challenger strategies ....................................................................................................76
Market follower strategies .......................................................................................................78
Market-nicher strategies..........................................................................................................79
PRODUCT LIFE-CYCLE MARKETING STRATEGIES .................................................................................... 80
Marketing Strategies: Introduction Phase and Pioneer Advantage ..............................................81
Marketing strategies: growth stage ..........................................................................................81
Marketing strategies: maturity stage ....................................................................................... 82
Marketing strategies: decline stage ......................................................................................... 82
MARKETING IN AN ECONOMIC DOWNTURN .......................................................................................... 82
SUMMARY CHAPTER 11 KOTLER KELLER ..............................................................................................85
CHAPTER 12: SETTING PRODUCT STRATEGY ................................................................................. 86
DEFINITION OF A PRODUCT............................................................................................................... 86
CUSTOMER VALUE HIERARCHY .......................................................................................................... 86
PRODUCT AND SERVICES DIFFERENTIATION ...........................................................................................87
PRODUCT AND BRAND RELATIONSHIPS ................................................................................................87
Product systems and mixes......................................................................................................87
Product line analysis............................................................................................................... 88
Product mix pricing ( you dont want the same price for all your brands) ...................................... 89
Co-branding and ingredient branding .......................................................................................91
PACKAGING...................................................................................................................................91
LABELING .....................................................................................................................................92
WARRANTIES AND GUARANTEES ........................................................................................................92
SUMMARY CHAPTER 12 KOTLER KELLER ..............................................................................................93
CHAPTER 13: DESIGNING AND MANAGING SERVICES ..................................................................... 94
CHARACTERISTICS OF SERVICES ......................................................................................................... 94
THE NEW SERVICE REALITY ............................................................................................................. 94
ACHIEVING EXCELLENCE IN SERVICE MARKETING .....................................................................................95
Expanded Marketing Mix for Services ...................................................................................... 96
Example: Apple...................................................................................................................... 96
SUMMARY CHAPTER 13 KOTLER KELLER ..............................................................................................97
CHAPTER 14: DEVELOPING PRICING STRATEGIES & PROGRAMS .................................................... 98
Page 3 of 163
