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Summary Principles of Marketing for a Digital Age, ISBN: 9781526423344 Marketing Principles

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Hey! In this document you will find helpful information for the marketing exam! Moreover, it contains helpful answers to a marketing case study, which even if not relevant for other cases, it is still a little hand to understand how to answer! Best of luck :)

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NUTELLA CASE NOTES

Segmentation (table 3.1 - page 172)
- Behaviour - To ensure that the communication went beyond 'belief-change' and converted beliefs into
actual behaviour, one further strategic step was taken. This was to frame the new information in a
specific context. That context was “families' breakfasts where toast already features; perhaps spread with
jam or peanut butter or marmite.” (page 3 paragraph 3)
- Geographical - The company quickly outgrew Italy and became popular in France and Germany. Nutella
was, somehow, a natural in a world heading towards globalisation. (page 2 paragraph 8)
- Demographic - He believes that Nutella has become what Kevin Roberts, former CEO of Saatchi &
Saatchi, called a “lovemark”. Part of this was due to nostalgia: the initial advertising of Nutella was
directed at children, easily attracted to something chocolatey, sticky and sugar-laden. (page 3 last
paragraph)

Brand purpose (page 590)
Emotional brad purpose -To fulfil the hunger for wanderlust during the global pandemic Nutella partnered
with the Italian Tourism board to create a “Ti Amo Italia” (I love you, Italy) line of labels, which hit shelves
on Oct. 12, 2020. The jars hope to “instill all the joy of life and the positivity of the most evocative images
of Italy to be enjoyed with a spoon,”. (page 6 paragraph 5)

Product layers (figure 6.1 page 337)
- Core= JTBD: enjoying something sweet, Nutella is technically a sugar spread rather than a hazelnut
spread, a straightforward testament to children’s interest in anything sweet, smooth and chocolate-
flavoured. (page 1 paragraph 3)
- Actual product: the chocolate spread
- Augmented product: Hazelnuts communicate a number of positive benefits, especially that of slow release
energy, and slow release energy had a clear value at breakfast time in advance of the day ahead. (page 2
paragraph 2)

PESO model (figure 9.1 page 468):
- Earned media/ shared media: partnerships: community service -> The answer was for the company to
become a planter of trees, a process it began in the 1990s, setting up a string of agricultural subsidiaries
for the purpose. This might sound obvious, but it should be remembered that tree-planting requires a great
deal of investment and a good deal of patience as the trees grow large enough to yield. About 6.6 million
trees have been planted, many in developing economies. (page 5 paragraph 2 and 3)

- Earned media: publicity: blogger relations -> The spread even has its own holiday, World Nutella Day,
which is celebrated every year on February 5th. World Nutella Day was first celebrated in 2007. The idea
for the day came from Sara Rosso, an American blogger, who was living in Italy at the time. (page 6
paragraph 7)

- Shared media: social media: Ever conscious of the need to win new generations of customers, Ferrero was
one of the first corporates to make the leap into social media. (page 7 paragraph 1). YouTube has also
exploded, with 15 Nutella channels on the website.(page 7 paragraph 2).

- Owned media: Content: holiday website -> The company has done some pretty creative things to support
World Nutella Day. There is a website (nutelladay.com) to keep current on all of the plans for the holiday.
(page 6 paragraph 6).

Sources of friction (page 541)
Knowledge friction - research revealed that perceptions of the brand were based on incorrect ingredient
information. Most people misunderstood Nutella as a chocolate spread when in reality it is a hazelnut spread.
(page 3 paragraph 2): inaccurate information.

Executional style (page 505 table 9.9):
Right advertisement: slice of life: the ad depicts a family having breakfast which shows an everyday scene,
thus a real-live situation
Left advertisement: Demonstration: the ad shows a breakfast product scene where Nutella is at the front next
to a toast with the hazelnut spread. This means that the ad shows how you can use Nutella.

, Brand architecture: House of brands (page 615)
The Ferrero company is a family affair, responsible not only for Nutella but for other hugely successful
products, such as Ferrero Rocher chocolates, the Kinder line of children’s chocolates and the ubiquitous
mints Tic Tacs. Each product line makes little effort to associate itself with other lines, and the Ferrero group
does not seek to advertise or brand itself as a corporate entity. (page 2 paragraph 2 and 3)

Type of buyers (page 108)
Nutella uses B2B: Nutella has successfully extended into the commercial food sector. Restaurants and cafes
proved to be big customers of Nutella in bulk. They use Nutella to make cakes, pies and doughnuts and as a
spread for crepes, pancakes and pastries (page 4 paragraph 3) and B2C: As it turned out, the customers loved
being able to spread it rather than slice it. After some further refinements, the first jar of Nutella was
produced in 1964 (page 2 paragraph 7)


Possible questions?:
What type of executional advertisement style does Nutella use?
What brand architecture does Ferrero follow/use?
What type of buyers does Nutella have?
How does Nutella go or Nutella-be ready fit into the company’s strategy? (could be growth, marketing or any
other strategy)
What does Nutella do to keep the product relevant in the saturation of the market?

BOOK SUMMARY

Chapter 1 - Understanding marketing

The three definitions of marketing:

1- The activity, set of institutions, and the processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large ( American Marketing
Association, 2013)
2- The management process responsible for identifying, anticipating and satisfying customer requirements
profitably (the uk chartered institute of marketing, 2015)
3- ‘to bring to market’ and ‘to produce [an offer] to be sold in the market’.

Utility: the state of being beneficial
Benefit: advantages of desirable outcome
Motives: believes that buying a certain product will provide the necessary utility to meet a need

7Ps (page 66 figure 5.7 page 309):
1. Product: the actual thing you see
2. Promotion: design and features, packaging, branding
3. Price: The price of a product or service based on the job to be done
4. Place: getting the product from the factory to the customer
5. People: the overall customer experience, customer relationship management
6. Process: everything your customer goes through in your brand
CJM: Customer journey
CX: customer experience
7. Presence: what does it do for somebody in all aspects (smell, sound, feel)

Chapter 2 understanding buyers

Moment of truth: the moment a person goes from undecided to decided / the moment where the relationship
is in danger
Journey maps: a visual representation of an individuals relationship with an organisation, service, product,
or brand over time and across channels. (current experience snot future experiences) figure 2.6 page 128 and
figure 2.7 page 130

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