Notes on lectures Marketing Management
Lecture 1 – 3 Feb
CIM (Chartered Institute of Marketing) – institute the
management process responsible for identifying,
anticipating, and satisfying customer requirements
profitability.
AMA (American Marketing Association) – 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.
A French perspective – marketing is the adaptation
strategy of organizations to competitive markets so that
they can influence the behavior of the customer segments
on which they depend, through an offering whose
perceived value is durably superior to that of competitors.
In the commercial sector, the role of marketing is to create
economic value for the company by creating value as perceived by customers.
Marketing – is changed more from only producing goods to the value for customers, clients, partners
and society at large. Firstly, marketing is the process of planning and executing conception, pricing,
promotion and distribution of goods, ideas and services to create exchanges that satisfy individual
and organizational goals. More recently, this perspective shifted towards more perceived value and
customer experience: Identifying what people need and want, and then creating something valuable
to meet those needs. It’s not just selling a product, it’s about the entire process of understanding,
creating, delivering and communicating value.
Netflix is a good example, while they understand customers frustrations and they changed their
business model. They now can predict customer behavior and offer new value propositions while
keeping existing customers engaged (binge-watching, personalized recommendations). Also, KPN is
an internet provider, they shape culture, influencing conversations and make a difference. It’s
important for a company to be consistent and in true value in their customer service. What KPN do
good in their marketing:
- Differentiation: showing concern for online safety
- Building trust-based relationship with consumers, showing that it is not just about selling
internet but also about helping people use it safely
- Focusing on emotional storytelling to create a deeper connection with its customers
- Socially and environmentally responsible branding given KPN and emotional and ethical edge
You have 4 phases for marketing
development:
1. Consumers will buy products that
are widely available and low in
, costs. People bought the products, while there were new, mass produced. There was no
differentiation in the types of products.
2. Consumers will buy products that offer the best quality or performance. More competition
on quality and differentiation.
3. Organization must undertake aggressive selling efforts to make customers buy. Marketing and
brand placements was becoming more important.
4. The customer comes first, its not just about selling products but about the entire customer
experience. Feedback and the wants and needs of each customer was crucial. You should
contribute to the customer’s experience and society and environment. Ethics, sustainability
and purpose-driven marketing. Modern society is about brand values, transparency, and
contributing to social causes.
V1 – product centric
The primary objective of this stage was to sell products to a mass market that had basic functional
needs. It was driven by the Industrial Revolution, which allowed for mass production. The focus was
on product development and meeting specific product specifications. Customer Interaction:
Interactions were purely functional, focusing on the utility of the item being sold.
V2 – customer centric
In V2, the goal shifted from just selling to retaining customers. Companies began to see consumers as
"smarter" individuals with unique social needs. Enabling Force: This era was enabled by the IT
Revolution, which provided better data and communication tools. Differentiation became the
strategy, with marketing efforts centered on the brand and products. Interactions evolved to be both
functional and emotional, building a deeper connection with the buyer.
V3 – value centric
V3 moves beyond the individual customer to focus on improving the world. Here, companies view the
market as "whole humans" with heart, mind, and spirit. The rise of the World Wide Web (WWW)
allowed for global connectivity and transparency. Marketing is driven by values and corporate values,
emphasizing the ethical and social impact of the company. The interaction style is functional,
emotional, and spiritual, seeking to align with the consumer's personal beliefs.
V4 – digital centric
, The current stage, V4, is innovation-driven with a focus on loyalty and growth. It views humans as
part of bigger networks, both within and outside the company's direct influence. Co-creation and
customer engagement. This is powered by digital and mobile touchpoints. The central concept is the
customer journey. The marketing guidelines emphasize the "Whole Experience," which extends
beyond the company’s own brand to include interactions with competitors and partners. Interactions
are functional, emotional, and experiential, focusing on the total immersion and long-term
relationship with the brand.
Marketing-oriented versus market-oriented approach – the marketing approach is that a company
recognizes the importance of marketing. The market approach is about:
- Customer orientation – which is concerned with creating superior value by continuously
developing and redeveloping offerings to meet customer needs.
- Competitor orientation – which requires an organization to develop an understanding of its
competitors’ short-term strengths and weaknesses, and its own long-term capabilities and
strategies.
- Interfunctional coordination –which requires all functions of an organization to work
together for long-term profit growth
System thinking is about the backwards direction and co-creation of suppliers <-> organization <-
> distributors <-> customers. You first should understand the consumers and distributors in order
to organize your company well and in order to gain competitive advantage. With the digitalization
and social media, companies should apply a different approach. Your marketing strategy should
be focused on 2 main decisions:
- Segmentation
- Value differentiation; creating customer value
Marketing mix and the 4 Ps:
1. Product
What are you selling? This is about quality, usage, design
2. Price
What is the right price for your product?
3. Place
How does the product reach its customers?
4. Promotion
How does the company communicate value?
5. People
The staff behavior of services
6. Process
Smooth service and check-ins
7. Physical evidence
Comfort
Value proposition is the message you want your customers to know. A value proposition is a
statement that summarizes the unique value a company delivers to its target customers. Why should I
buy from you instead of your competitors? It should clearly communicates the benefits of your good
Lecture 1 – 3 Feb
CIM (Chartered Institute of Marketing) – institute the
management process responsible for identifying,
anticipating, and satisfying customer requirements
profitability.
AMA (American Marketing Association) – 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.
A French perspective – marketing is the adaptation
strategy of organizations to competitive markets so that
they can influence the behavior of the customer segments
on which they depend, through an offering whose
perceived value is durably superior to that of competitors.
In the commercial sector, the role of marketing is to create
economic value for the company by creating value as perceived by customers.
Marketing – is changed more from only producing goods to the value for customers, clients, partners
and society at large. Firstly, marketing is the process of planning and executing conception, pricing,
promotion and distribution of goods, ideas and services to create exchanges that satisfy individual
and organizational goals. More recently, this perspective shifted towards more perceived value and
customer experience: Identifying what people need and want, and then creating something valuable
to meet those needs. It’s not just selling a product, it’s about the entire process of understanding,
creating, delivering and communicating value.
Netflix is a good example, while they understand customers frustrations and they changed their
business model. They now can predict customer behavior and offer new value propositions while
keeping existing customers engaged (binge-watching, personalized recommendations). Also, KPN is
an internet provider, they shape culture, influencing conversations and make a difference. It’s
important for a company to be consistent and in true value in their customer service. What KPN do
good in their marketing:
- Differentiation: showing concern for online safety
- Building trust-based relationship with consumers, showing that it is not just about selling
internet but also about helping people use it safely
- Focusing on emotional storytelling to create a deeper connection with its customers
- Socially and environmentally responsible branding given KPN and emotional and ethical edge
You have 4 phases for marketing
development:
1. Consumers will buy products that
are widely available and low in
, costs. People bought the products, while there were new, mass produced. There was no
differentiation in the types of products.
2. Consumers will buy products that offer the best quality or performance. More competition
on quality and differentiation.
3. Organization must undertake aggressive selling efforts to make customers buy. Marketing and
brand placements was becoming more important.
4. The customer comes first, its not just about selling products but about the entire customer
experience. Feedback and the wants and needs of each customer was crucial. You should
contribute to the customer’s experience and society and environment. Ethics, sustainability
and purpose-driven marketing. Modern society is about brand values, transparency, and
contributing to social causes.
V1 – product centric
The primary objective of this stage was to sell products to a mass market that had basic functional
needs. It was driven by the Industrial Revolution, which allowed for mass production. The focus was
on product development and meeting specific product specifications. Customer Interaction:
Interactions were purely functional, focusing on the utility of the item being sold.
V2 – customer centric
In V2, the goal shifted from just selling to retaining customers. Companies began to see consumers as
"smarter" individuals with unique social needs. Enabling Force: This era was enabled by the IT
Revolution, which provided better data and communication tools. Differentiation became the
strategy, with marketing efforts centered on the brand and products. Interactions evolved to be both
functional and emotional, building a deeper connection with the buyer.
V3 – value centric
V3 moves beyond the individual customer to focus on improving the world. Here, companies view the
market as "whole humans" with heart, mind, and spirit. The rise of the World Wide Web (WWW)
allowed for global connectivity and transparency. Marketing is driven by values and corporate values,
emphasizing the ethical and social impact of the company. The interaction style is functional,
emotional, and spiritual, seeking to align with the consumer's personal beliefs.
V4 – digital centric
, The current stage, V4, is innovation-driven with a focus on loyalty and growth. It views humans as
part of bigger networks, both within and outside the company's direct influence. Co-creation and
customer engagement. This is powered by digital and mobile touchpoints. The central concept is the
customer journey. The marketing guidelines emphasize the "Whole Experience," which extends
beyond the company’s own brand to include interactions with competitors and partners. Interactions
are functional, emotional, and experiential, focusing on the total immersion and long-term
relationship with the brand.
Marketing-oriented versus market-oriented approach – the marketing approach is that a company
recognizes the importance of marketing. The market approach is about:
- Customer orientation – which is concerned with creating superior value by continuously
developing and redeveloping offerings to meet customer needs.
- Competitor orientation – which requires an organization to develop an understanding of its
competitors’ short-term strengths and weaknesses, and its own long-term capabilities and
strategies.
- Interfunctional coordination –which requires all functions of an organization to work
together for long-term profit growth
System thinking is about the backwards direction and co-creation of suppliers <-> organization <-
> distributors <-> customers. You first should understand the consumers and distributors in order
to organize your company well and in order to gain competitive advantage. With the digitalization
and social media, companies should apply a different approach. Your marketing strategy should
be focused on 2 main decisions:
- Segmentation
- Value differentiation; creating customer value
Marketing mix and the 4 Ps:
1. Product
What are you selling? This is about quality, usage, design
2. Price
What is the right price for your product?
3. Place
How does the product reach its customers?
4. Promotion
How does the company communicate value?
5. People
The staff behavior of services
6. Process
Smooth service and check-ins
7. Physical evidence
Comfort
Value proposition is the message you want your customers to know. A value proposition is a
statement that summarizes the unique value a company delivers to its target customers. Why should I
buy from you instead of your competitors? It should clearly communicates the benefits of your good
