Table of Contents
Chapter 1: Scope of Marketing for New Realities 5
The Value of Marketing 5
The Scope of Marketing 5
What is a Market? 6
Core Marketing Concepts 7
Needs, Wants, and Demands 7
Target Markets, Positioning, and Segmentation 7
Offerings and Brands 7
Marketing Channels 7
Paid, Owned, and Earned Media 8
Impressions and Engagement 8
Value and Satisfaction 8
Supply Chain 8
Competition 8
Marketing Environment 9
The New Marketing Realities 9
Company Orientation Toward the Marketplace 10
Evolution of Marketing Philosophies 10
The Four Ps; Product, Price, Place, and Promotion 12
Marketing Management Tasks 13
Chapter 2: Marketing Strategies and Plans 14
Marketing and Customer Value 14
The Value Delivery Process 14
The Value Chain 14
Core Competencies 15
The Central Role of Strategic Planning 15
Corporate and Division Strategic Planning 16
Organization and Organizational Culture 18
Business Unit Strategic Planning 19
The Marketing Plan 20
Contents of a Marketing Plan 20
Marketing Implementation, Control, and Performance 21
Marketing Metrics 21
Marketing-Modeling Mix 22
Marketing Dashboards 22
Marketing Control 22
Chapter 3: Marketing Research and Analysis 23
The Marketing Information System and Marketing Intelligence 23
, Internal Records and Database Systems 24
The Marketing Research System 24
The Marketing Research Process 25
Forecasting and Demand Measurement 26
The Measures of Market Demand 26
Estimating Current Demand 27
Estimating Future Demand 27
Analyzing the Macroenvironment 28
Chapter 4: Building Long-Term Customer Relationships 29
Building Customer Value, Satisfaction, and Loyalty 29
Customer-Perceived Value (CPV) 29
Conducting a PVC Analysis 31
Total Customer Satisfaction 31
Maximizing Customer Lifetime Value 32
Cultivating Customer Relationships 33
Building Loyalty 34
Chapter 5: Buying Dynamics of Consumers and Businesses 35
Influences to Consumer Behavior 35
Cultural Factors 35
Social Factors 36
Personal Factors 36
Key Psychological Processes 37
The Consumer Buying Decision Process 39
Behavioral Decision Theory and Behavioral Economics 40
Organizational Buying 40
Business Buying Situations 41
Managing B2B Customer Relationships 42
Risks and Opportunism in Business Relationships 43
Chapter 6: Target Marketing 43
Market Segmentation 43
Segmenting Consumer Markets 43
Segmenting Business Markets 44
Market Targeting 45
Evaluating and Selecting Market Segments 46
Chapter 7: Competitive and Effective Brand Positioning 48
Developing and Establishing a Brand Positioning 48
Understanding Positioning and Value Propositions 48
Establishing a Brand Positioning 50
Alternative Approaches to Branding 51
, Competitive Strategies for Market Leaders 51
Expanding Total Market Demand 52
Protecting Market Share 52
Increasing Market Share 53
Other Competitive Strategies 53
Market-Challenger Strategies 53
Market-Follower Strategies 54
Market-Nicher Strategies 54
Chapter 8: Branding and Core Business Growth 54
How Does Branding Work? 55
The Role of Brands 55
The Scope of Branding 55
Defining Brand Equity 55
Customer-Based Brand Equity 55
Brand Equity Models 56
Building Brand Equity 57
Choosing Brand Elements 57
Designing Holistic Marketing Activities 58
Leveraging Secondary Associations 58
Interval Branding 58
Measuring and Managing Brand Equity 59
Managing Brand Equity 59
Devising a Branding Strategy 59
Branding Decisions 60
Brand Portfolios 60
Brand Extensions 60
Customer Equity 61
Driving Growth 62
Chapter 9: Product Mix and New Offerings 62
Product Characteristics and Classifications 62
Product Levels: The Customer-Value Hierarchy 63
Product Classifications 63
Differentiation 64
Product Differentiation 64
Services Differentiation 64
Design Differentiation 64
Product and Brand Relationships 65
The Product Hierarchy 65
Co-Branding and Ingredient Branding 66
Packaging, Labeling, Warranties, and Guarantees 67
, Packaging 67
Labeling 67
Warranties and Guarantees 67
Managing New Products 68
Innovation Imperative and New Product Success 68
New Product Development 68
The Consumer-Adoption Process 71
Product Life-Cycle Marketing Strategies 72
Chapter 10: Analyzing and Marketing Services 74
The Nature of Services 74
Categories of Service Mix 75
The New Service Realities 76
Marketing in Services 76
Differentiating Services 77
Managing Service Quality 77
Managing Product-Support Services 78
Identifying and Satisfying Customer Needs 78
Postsale Service Strategy 78
Chapter 11: Concepts and Tools for Strategic Pricing 79
Understanding Pricing 79
Setting the Price 80
Adapting the Price 82
Differentiated Pricing 83
Initiating and Responding to Price Changes 84
Chapter 12: Developing and Managing Strategic and Integrated Marketing Channels 85
Marketing Channels and Value Networks 85
Role of Marketing Channels 86
Channel Levels 87
Channel-Design Decisions 87
Channel-Management Decisions 88
Channel Integration and Systems 89
Vertical Marketing Systems 89
Horizontal Marketing Systems 89
E-Commerce and M-Commerce Marketing Practices 89
Channel Conflict, Cooperation, and Competition 90
Types of Conflict and Competition 90
Causes of Channel Conflict 91
Managing Channel Conflict 91
Legal and Ethical Issues in Channel Relations 91
,Managing Retailing, Wholesaling, and Logistics 91
Retailing 92
Types of Retailers 92
Modern Retail Marketing Environment 92
Retailer Marketing Decisions 93
Private Labels 93
Wholesaling 93
Market Logistics 95
Integrated Logistics System 95
Market Logistics Decisions 95
Week 1: Introduction to Marketing
Management
Chapter 1: Scope of Marketing for New Realities
The Value of Marketing
● Good marketing = careful planning & execution + state-of-the-art tools & techniques
Business functions (e.g., finance and operations) have no function if there is not sufficient demand for the
products.
→ financial success depends on marketing ability.
+ Introduced new/enhanced products to enrich people’s lives
+ Creates jobs
+ Allows firms to more fully engage in socially responsible activities
CMO (Chief Marketing Officer): choose features, prices, and markets, and decide how much to spend
on advertising, sales, and online & mobile marketing.
The Scope of Marketing
Marketing: about identifying and meeting human and social needs; meeting needs profitably.
American Marketing Association: “Marketing is the activity, set of institutions, and processes for
creating, communicating, delivering, and exchanging offerings that have value for their customers,
clients, partners and society at large.”
,The aim of marketing is to know and understand the customer so well that the product or service fits them
and sells itself (sometimes better than the customers themselves).
What is marketed? Who markets?
1. Goods Marketer: someone who seeks a response -
2. Services attention, a purchase, a vote, a donation - from
another party; a.k.a. the prospect.
3. Events
● Must manage all touchpoints (where a
4. Experiences customer directly or indirectly interacts
5. Persons with the company)
6. Places ● Important to consider: store layouts,
7. Properties package designs, product functions,
8. Organizations employee training, shipping & logistics
9. Information
10. Ideas
What is a Market?
Market: a collection of buyers & sellers who transact over a particular product or product class; a.k.a.
customer groups.
→ existing markets: product, demographic, geographic, voter, labor, and donor markets.
→ four key customer markets: consumer, business, global, and nonprofit.
Sellers send goods and services and communications.
In return they receive money and information such as customer attitudes and sales data.
Inner loop = exchange of money for goods and services.
Outer loop = exchange of information.
Marketing Process in 5 Steps
1. Understand the marketplace and customer needs and wants
2. Design a customer-driven marketing strategy
3. Construct a programme/mix that delivers superior value (4 PS)
4. Build profitable relationships and create customer delight
5. Capture value from customers to create profits and customer equity
, (1-4 = Creating Value, 5 = Capturing Value)
Core Marketing Concepts
Needs, Wants, and Demands
Needs: basic human requirements (e.g., air, water, sleep).
Wants: specific objects that may satisfy needs.
→ shaped by society.
Demands: wants for specific products backed by an ability to pay.
Marketers do not create needs, they simply promote the idea that a certain product may enhance
someone's quality of life.
Five types of needs:
1. Stated needs
2. Real needs
3. Unstated needs
4. Delight needs
5. Secret needs
Target Markets, Positioning, and Segmentation
Marketers identify distinct segments of buyers by identifying demographic, psychographic, and
behavioral differences between them, and then decide which presents the greatest opportunity.
Offerings and Brands
Value proposition: a set of benefits that satisfy needs.
[ the intangible value proposition is made physical by an offering; a combination of products,
services, information, and experiences. ]
Brand: an offering from a known source.
Marketing Channels
To reach a target market, a marketer uses three kinds of marketing channels;
1. Communication channels: deliver and receive messages from target buyers
a. E.g., newspapers, magazines, radio, television, mail, telephone, smart phone, billboards,
posters, and the Internet.
2. Distribution channels: help display, sell, or deliver the physical product/service to the buyer/user.
a. May be direct (via. Internet, mail, mobile) or indirect (distributors, wholesalers, retailers,
and agents as intermediaries)
, 3. Service channels: to carry out transactions with potential buyers which include warehouses,
transport companies, banks, and insurance companies.
Marketers clearly face a design challenge in choosing the best mix of communication, distribution, and
service channels.
Paid, Owned, and Earned Media
Group communication options for interacting with customers:
1. Paid media: TV, magazines and display ads, paid search, and sponsorships, all of which allow
marketers to show their aid or brand for a fee.
2. Owned media: communication channels marketers own; e.g., company/brand brochure.
3. Earned media: streams in which consumers, the press, or other outsiders voluntarily communicate
something about the brand via word of mouth, buzz, or viral marketing methods.
Impressions and Engagement
Three means of reaching consumers; TV, internet, and mobile.
Impressions: occur when customers view a communication.
→ a useful metric for tracking the scope of a communication’s reach.
- do not provide any insight into the results of impressions.
Engagement: the extent of a customer’s attention and active involvement with a communication.
Value and Satisfaction
Value: the sum of the tangible and intangible benefits & costs.
= a combination of the customer value triad; quality, service, and price.
→ value perceptions increase with quality and service but decrease with price.
Satisfaction: reflects a person’s judgment of a product’s perceived performance in relationship to
expectations.
Supply Chain
Supply chain: a longer channel stretching from raw materials to components to finished products carried
to final buyers.
Competition
Competition: includes all the actual and potential rival offerings and substitutes a buyer might consider.
Marketing Environment
Marketing environment: consists of the task environment and the broad environment.
Chapter 1: Scope of Marketing for New Realities 5
The Value of Marketing 5
The Scope of Marketing 5
What is a Market? 6
Core Marketing Concepts 7
Needs, Wants, and Demands 7
Target Markets, Positioning, and Segmentation 7
Offerings and Brands 7
Marketing Channels 7
Paid, Owned, and Earned Media 8
Impressions and Engagement 8
Value and Satisfaction 8
Supply Chain 8
Competition 8
Marketing Environment 9
The New Marketing Realities 9
Company Orientation Toward the Marketplace 10
Evolution of Marketing Philosophies 10
The Four Ps; Product, Price, Place, and Promotion 12
Marketing Management Tasks 13
Chapter 2: Marketing Strategies and Plans 14
Marketing and Customer Value 14
The Value Delivery Process 14
The Value Chain 14
Core Competencies 15
The Central Role of Strategic Planning 15
Corporate and Division Strategic Planning 16
Organization and Organizational Culture 18
Business Unit Strategic Planning 19
The Marketing Plan 20
Contents of a Marketing Plan 20
Marketing Implementation, Control, and Performance 21
Marketing Metrics 21
Marketing-Modeling Mix 22
Marketing Dashboards 22
Marketing Control 22
Chapter 3: Marketing Research and Analysis 23
The Marketing Information System and Marketing Intelligence 23
, Internal Records and Database Systems 24
The Marketing Research System 24
The Marketing Research Process 25
Forecasting and Demand Measurement 26
The Measures of Market Demand 26
Estimating Current Demand 27
Estimating Future Demand 27
Analyzing the Macroenvironment 28
Chapter 4: Building Long-Term Customer Relationships 29
Building Customer Value, Satisfaction, and Loyalty 29
Customer-Perceived Value (CPV) 29
Conducting a PVC Analysis 31
Total Customer Satisfaction 31
Maximizing Customer Lifetime Value 32
Cultivating Customer Relationships 33
Building Loyalty 34
Chapter 5: Buying Dynamics of Consumers and Businesses 35
Influences to Consumer Behavior 35
Cultural Factors 35
Social Factors 36
Personal Factors 36
Key Psychological Processes 37
The Consumer Buying Decision Process 39
Behavioral Decision Theory and Behavioral Economics 40
Organizational Buying 40
Business Buying Situations 41
Managing B2B Customer Relationships 42
Risks and Opportunism in Business Relationships 43
Chapter 6: Target Marketing 43
Market Segmentation 43
Segmenting Consumer Markets 43
Segmenting Business Markets 44
Market Targeting 45
Evaluating and Selecting Market Segments 46
Chapter 7: Competitive and Effective Brand Positioning 48
Developing and Establishing a Brand Positioning 48
Understanding Positioning and Value Propositions 48
Establishing a Brand Positioning 50
Alternative Approaches to Branding 51
, Competitive Strategies for Market Leaders 51
Expanding Total Market Demand 52
Protecting Market Share 52
Increasing Market Share 53
Other Competitive Strategies 53
Market-Challenger Strategies 53
Market-Follower Strategies 54
Market-Nicher Strategies 54
Chapter 8: Branding and Core Business Growth 54
How Does Branding Work? 55
The Role of Brands 55
The Scope of Branding 55
Defining Brand Equity 55
Customer-Based Brand Equity 55
Brand Equity Models 56
Building Brand Equity 57
Choosing Brand Elements 57
Designing Holistic Marketing Activities 58
Leveraging Secondary Associations 58
Interval Branding 58
Measuring and Managing Brand Equity 59
Managing Brand Equity 59
Devising a Branding Strategy 59
Branding Decisions 60
Brand Portfolios 60
Brand Extensions 60
Customer Equity 61
Driving Growth 62
Chapter 9: Product Mix and New Offerings 62
Product Characteristics and Classifications 62
Product Levels: The Customer-Value Hierarchy 63
Product Classifications 63
Differentiation 64
Product Differentiation 64
Services Differentiation 64
Design Differentiation 64
Product and Brand Relationships 65
The Product Hierarchy 65
Co-Branding and Ingredient Branding 66
Packaging, Labeling, Warranties, and Guarantees 67
, Packaging 67
Labeling 67
Warranties and Guarantees 67
Managing New Products 68
Innovation Imperative and New Product Success 68
New Product Development 68
The Consumer-Adoption Process 71
Product Life-Cycle Marketing Strategies 72
Chapter 10: Analyzing and Marketing Services 74
The Nature of Services 74
Categories of Service Mix 75
The New Service Realities 76
Marketing in Services 76
Differentiating Services 77
Managing Service Quality 77
Managing Product-Support Services 78
Identifying and Satisfying Customer Needs 78
Postsale Service Strategy 78
Chapter 11: Concepts and Tools for Strategic Pricing 79
Understanding Pricing 79
Setting the Price 80
Adapting the Price 82
Differentiated Pricing 83
Initiating and Responding to Price Changes 84
Chapter 12: Developing and Managing Strategic and Integrated Marketing Channels 85
Marketing Channels and Value Networks 85
Role of Marketing Channels 86
Channel Levels 87
Channel-Design Decisions 87
Channel-Management Decisions 88
Channel Integration and Systems 89
Vertical Marketing Systems 89
Horizontal Marketing Systems 89
E-Commerce and M-Commerce Marketing Practices 89
Channel Conflict, Cooperation, and Competition 90
Types of Conflict and Competition 90
Causes of Channel Conflict 91
Managing Channel Conflict 91
Legal and Ethical Issues in Channel Relations 91
,Managing Retailing, Wholesaling, and Logistics 91
Retailing 92
Types of Retailers 92
Modern Retail Marketing Environment 92
Retailer Marketing Decisions 93
Private Labels 93
Wholesaling 93
Market Logistics 95
Integrated Logistics System 95
Market Logistics Decisions 95
Week 1: Introduction to Marketing
Management
Chapter 1: Scope of Marketing for New Realities
The Value of Marketing
● Good marketing = careful planning & execution + state-of-the-art tools & techniques
Business functions (e.g., finance and operations) have no function if there is not sufficient demand for the
products.
→ financial success depends on marketing ability.
+ Introduced new/enhanced products to enrich people’s lives
+ Creates jobs
+ Allows firms to more fully engage in socially responsible activities
CMO (Chief Marketing Officer): choose features, prices, and markets, and decide how much to spend
on advertising, sales, and online & mobile marketing.
The Scope of Marketing
Marketing: about identifying and meeting human and social needs; meeting needs profitably.
American Marketing Association: “Marketing is the activity, set of institutions, and processes for
creating, communicating, delivering, and exchanging offerings that have value for their customers,
clients, partners and society at large.”
,The aim of marketing is to know and understand the customer so well that the product or service fits them
and sells itself (sometimes better than the customers themselves).
What is marketed? Who markets?
1. Goods Marketer: someone who seeks a response -
2. Services attention, a purchase, a vote, a donation - from
another party; a.k.a. the prospect.
3. Events
● Must manage all touchpoints (where a
4. Experiences customer directly or indirectly interacts
5. Persons with the company)
6. Places ● Important to consider: store layouts,
7. Properties package designs, product functions,
8. Organizations employee training, shipping & logistics
9. Information
10. Ideas
What is a Market?
Market: a collection of buyers & sellers who transact over a particular product or product class; a.k.a.
customer groups.
→ existing markets: product, demographic, geographic, voter, labor, and donor markets.
→ four key customer markets: consumer, business, global, and nonprofit.
Sellers send goods and services and communications.
In return they receive money and information such as customer attitudes and sales data.
Inner loop = exchange of money for goods and services.
Outer loop = exchange of information.
Marketing Process in 5 Steps
1. Understand the marketplace and customer needs and wants
2. Design a customer-driven marketing strategy
3. Construct a programme/mix that delivers superior value (4 PS)
4. Build profitable relationships and create customer delight
5. Capture value from customers to create profits and customer equity
, (1-4 = Creating Value, 5 = Capturing Value)
Core Marketing Concepts
Needs, Wants, and Demands
Needs: basic human requirements (e.g., air, water, sleep).
Wants: specific objects that may satisfy needs.
→ shaped by society.
Demands: wants for specific products backed by an ability to pay.
Marketers do not create needs, they simply promote the idea that a certain product may enhance
someone's quality of life.
Five types of needs:
1. Stated needs
2. Real needs
3. Unstated needs
4. Delight needs
5. Secret needs
Target Markets, Positioning, and Segmentation
Marketers identify distinct segments of buyers by identifying demographic, psychographic, and
behavioral differences between them, and then decide which presents the greatest opportunity.
Offerings and Brands
Value proposition: a set of benefits that satisfy needs.
[ the intangible value proposition is made physical by an offering; a combination of products,
services, information, and experiences. ]
Brand: an offering from a known source.
Marketing Channels
To reach a target market, a marketer uses three kinds of marketing channels;
1. Communication channels: deliver and receive messages from target buyers
a. E.g., newspapers, magazines, radio, television, mail, telephone, smart phone, billboards,
posters, and the Internet.
2. Distribution channels: help display, sell, or deliver the physical product/service to the buyer/user.
a. May be direct (via. Internet, mail, mobile) or indirect (distributors, wholesalers, retailers,
and agents as intermediaries)
, 3. Service channels: to carry out transactions with potential buyers which include warehouses,
transport companies, banks, and insurance companies.
Marketers clearly face a design challenge in choosing the best mix of communication, distribution, and
service channels.
Paid, Owned, and Earned Media
Group communication options for interacting with customers:
1. Paid media: TV, magazines and display ads, paid search, and sponsorships, all of which allow
marketers to show their aid or brand for a fee.
2. Owned media: communication channels marketers own; e.g., company/brand brochure.
3. Earned media: streams in which consumers, the press, or other outsiders voluntarily communicate
something about the brand via word of mouth, buzz, or viral marketing methods.
Impressions and Engagement
Three means of reaching consumers; TV, internet, and mobile.
Impressions: occur when customers view a communication.
→ a useful metric for tracking the scope of a communication’s reach.
- do not provide any insight into the results of impressions.
Engagement: the extent of a customer’s attention and active involvement with a communication.
Value and Satisfaction
Value: the sum of the tangible and intangible benefits & costs.
= a combination of the customer value triad; quality, service, and price.
→ value perceptions increase with quality and service but decrease with price.
Satisfaction: reflects a person’s judgment of a product’s perceived performance in relationship to
expectations.
Supply Chain
Supply chain: a longer channel stretching from raw materials to components to finished products carried
to final buyers.
Competition
Competition: includes all the actual and potential rival offerings and substitutes a buyer might consider.
Marketing Environment
Marketing environment: consists of the task environment and the broad environment.
