Week 1
Chapter 1: Scope of Marketing for new realities
What is marketing?
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, 2007 – today).
In essence, it is about meeting needs profitability.
Key point: Marketing is about value creation – for both businesses and stakeholders.
Marketing management: the art and science of choosing target markets and getting,
keeping and growing customers by creating, delivering and communicating superior
customer value.
What is marketed?
Ten types of entities can be marketed:
1. Goods (tangible items) 6. Places
2. Services (intangible offerings) 7. Properties (real estate, financial assets)
3. Events 8. Organizations
4. Experiences 9. Information
5. Persons 10. Ideas
Core marketing concepts
Needs, wants and demands:
* Needs = basic human requirements (food, shelter)
* Wants = needs shaped by culture and personality
* Demands = wants backed by purchasing power
Segmentation, Targeting and Positioning (STP): dividing the market, choosing target
segments and positioning an offering in the mind of the consumers.
Offerings and brands: a combination of products, services and experiences that
deliver value; brands are offerings from known sources.
Value, satisfaction and quality: customers choose offerings that provide the greatest
value – the difference between total benefits and total costs.
Marketing channels:
* Communication channels (ads, PR, social media)
* Distribution channels (retailers, wholesalers, internet)
* Service channels (banks, transport, insurance)
Paid, owned and earned media:
* Paid (ads), Owned (company platforms), Earned (word of mouth)
Impressions and engagement:
* Impressions = exposure
* Engagement = active involvement (likes, shares)
,The new marketing realities
Three transformative forces redefine marketing:
Technology: digitalization, data analytics, mobile and social media, personalization,
real-time interaction.
Globalization: interconnected markets, cultural diversity, emerging economies, global
competition.
Social responsibility: ethical, sustainable and socially responsible marketing,
stakeholder value.
“Marketing 3.0”: customers want to be treated as whole human beings with minds, hearts
and spirits (values-driven marketing)
Company orientations toward the marketplace
1. Production concept: consumers prefer affordable and widely available products.
2. Product concept: consumers favor high quality and innovative features.
3. Selling concept: consumers won’t buy unless persuaded; focuses on aggressive
selling.
4. Marketing concept: “find the right products for your customers.” Focuses on
customer needs and satisfaction.
5. Holistic marketing concept: integrates all marketing activities – four dimensions:
* Relationship marketing: long-term relationship with customers, employees,
partners.
* Integrated marketing: consistent message and value delivery across channels.
* Internal marketing: motivating and empowering employees to serve customers
well.
* Performance marketing: measuring financial and non-financial results (brand
equity, CSR, etc.)
Updating the four P’s
Traditional mix: Product, Price, Place, Promotion.
Modernized holistic mix:
People (internal and external stakeholders)
Processes (creativity and discipline)
Programs (integrated marketing activities)
, Performance (financial and social outcomes)
Key takeaway
Marketing success depends on integrating value creation, delivery and communication while
adapting to technological, global and social changes.
Chapter 2: Marketing strategies and plans
Marketing and customer value
The value delivery process involves:
1. Choosing the value: segmentation, targeting and positioning.
2. Providing the value: developing products, pricing, distributions.
3. Communicating the value: through promotion and branding.
This shifts the company from a product-centered to a customer-centered organization.
The value chain and core competencies
Value chain: every department contributes to value creation (Michael Porter model)
Core competencies: collective learning in the organization – unique skills or
technologies that provide competitive advantage (Apple’s design).
Strategic planning
Corporate level
1. Define the corporate mission – What business are we in?
2. Establish SBU’s (Strategic Business Units) – autonomous units within a corporation.
3. Allocate resources – portfolio management using models like the BCG matrix.
4. Identify growth opportunities:
* Intensive growth (product/market expansion grid)
* Integrative growth (vertical/horizontal integration
* Diversification (new markets/products)
Business unit level
1. Business mission
2. SWOT analysis (Strengths, Weaknesses, Opportunities, Threats)
3. Goal formulation (SMART objectives)
4. Strategy formulation (Porter’s strategies: cost leadership, differentiation, focus)
5. Implementation and control
The marketing plan
Contents: executive summary, situation analysis (market, competition,
SWOT/PESTEL), objectives, strategy (mission, objectives, target market, positioning),
tactics (4Ps: Product, Price, Place, Promotion), budget and control.
From plan to action: implement via clear timelines, responsibilities and metrics.
Marketing control and performance
Chapter 1: Scope of Marketing for new realities
What is marketing?
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, 2007 – today).
In essence, it is about meeting needs profitability.
Key point: Marketing is about value creation – for both businesses and stakeholders.
Marketing management: the art and science of choosing target markets and getting,
keeping and growing customers by creating, delivering and communicating superior
customer value.
What is marketed?
Ten types of entities can be marketed:
1. Goods (tangible items) 6. Places
2. Services (intangible offerings) 7. Properties (real estate, financial assets)
3. Events 8. Organizations
4. Experiences 9. Information
5. Persons 10. Ideas
Core marketing concepts
Needs, wants and demands:
* Needs = basic human requirements (food, shelter)
* Wants = needs shaped by culture and personality
* Demands = wants backed by purchasing power
Segmentation, Targeting and Positioning (STP): dividing the market, choosing target
segments and positioning an offering in the mind of the consumers.
Offerings and brands: a combination of products, services and experiences that
deliver value; brands are offerings from known sources.
Value, satisfaction and quality: customers choose offerings that provide the greatest
value – the difference between total benefits and total costs.
Marketing channels:
* Communication channels (ads, PR, social media)
* Distribution channels (retailers, wholesalers, internet)
* Service channels (banks, transport, insurance)
Paid, owned and earned media:
* Paid (ads), Owned (company platforms), Earned (word of mouth)
Impressions and engagement:
* Impressions = exposure
* Engagement = active involvement (likes, shares)
,The new marketing realities
Three transformative forces redefine marketing:
Technology: digitalization, data analytics, mobile and social media, personalization,
real-time interaction.
Globalization: interconnected markets, cultural diversity, emerging economies, global
competition.
Social responsibility: ethical, sustainable and socially responsible marketing,
stakeholder value.
“Marketing 3.0”: customers want to be treated as whole human beings with minds, hearts
and spirits (values-driven marketing)
Company orientations toward the marketplace
1. Production concept: consumers prefer affordable and widely available products.
2. Product concept: consumers favor high quality and innovative features.
3. Selling concept: consumers won’t buy unless persuaded; focuses on aggressive
selling.
4. Marketing concept: “find the right products for your customers.” Focuses on
customer needs and satisfaction.
5. Holistic marketing concept: integrates all marketing activities – four dimensions:
* Relationship marketing: long-term relationship with customers, employees,
partners.
* Integrated marketing: consistent message and value delivery across channels.
* Internal marketing: motivating and empowering employees to serve customers
well.
* Performance marketing: measuring financial and non-financial results (brand
equity, CSR, etc.)
Updating the four P’s
Traditional mix: Product, Price, Place, Promotion.
Modernized holistic mix:
People (internal and external stakeholders)
Processes (creativity and discipline)
Programs (integrated marketing activities)
, Performance (financial and social outcomes)
Key takeaway
Marketing success depends on integrating value creation, delivery and communication while
adapting to technological, global and social changes.
Chapter 2: Marketing strategies and plans
Marketing and customer value
The value delivery process involves:
1. Choosing the value: segmentation, targeting and positioning.
2. Providing the value: developing products, pricing, distributions.
3. Communicating the value: through promotion and branding.
This shifts the company from a product-centered to a customer-centered organization.
The value chain and core competencies
Value chain: every department contributes to value creation (Michael Porter model)
Core competencies: collective learning in the organization – unique skills or
technologies that provide competitive advantage (Apple’s design).
Strategic planning
Corporate level
1. Define the corporate mission – What business are we in?
2. Establish SBU’s (Strategic Business Units) – autonomous units within a corporation.
3. Allocate resources – portfolio management using models like the BCG matrix.
4. Identify growth opportunities:
* Intensive growth (product/market expansion grid)
* Integrative growth (vertical/horizontal integration
* Diversification (new markets/products)
Business unit level
1. Business mission
2. SWOT analysis (Strengths, Weaknesses, Opportunities, Threats)
3. Goal formulation (SMART objectives)
4. Strategy formulation (Porter’s strategies: cost leadership, differentiation, focus)
5. Implementation and control
The marketing plan
Contents: executive summary, situation analysis (market, competition,
SWOT/PESTEL), objectives, strategy (mission, objectives, target market, positioning),
tactics (4Ps: Product, Price, Place, Promotion), budget and control.
From plan to action: implement via clear timelines, responsibilities and metrics.
Marketing control and performance
