Marketing Management

Session 1
Term 1, 2023-24

Abhinav Uppal
Assistant Professor of Marketing
Indian School of Business
abhinav_uppal@isb.edu
+91 172-459-1706
 Session Overview

§ Course Objectives and Administrative Details

§ What is marketing?
• What is its role in your lives as managers?

§ Customer Value Proposition

§ How does one create strong value propositions?
§ 4 Ps of Marketing

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 Course Objectives: Official Version

§ Appreciate the value of marketing concepts as guides for

• diagnosing and addressing management problems
• creating comprehensive marketing programs

§ Develop a disciplined approach to the analysis of marketing situations

§ Develop and execute strategies based on an understanding of customers
§ Appreciate how the elements of a successful marketing program fit
together
§ Understand the role of marketing in global business strategies
§ Make and defend marketing decisions in realistic business situations with
incomplete information

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 Course Objectives: Shorter Version

§ How do we take a new idea to market successfully?

§ How do we diagnose and correct the marketing plan for a new
idea?
§ Do it in a disciplined manner:
• Use sound analytical techniques and conceptual frameworks
• Be able to defend our recommendations!

§ Make ourselves and our organizations more customer focused

and customer centric

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 Classroom Process

§ Lecture Discussions
§ Case Discussions
§ In-Class Exercises

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 Administrative Details

§ Course Materials
• Cases, Readings and Teaching Notes posted on LMS
• Recommended Textbooks
− Kotler and Keller (2016)
− Capon and Singh (2014)

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 Academic Associates

Shivani Gautam Harjot Kaur

MBA, Thapar University MBA, Punjab University

shivani_gautam@isb.edu harjot_kaur@isb.edu

Sections I, J Sections K, L

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 Deliverables and Assessment

§ Class Participation - 10%

• Review at the start of each class (5%)
• Old school CP (5%)
§ Unilever case write-up - 20%
• To be done in groups
§ Atlantic Computer case write-up - 20%
• To be done individually
§ Final Presentation - 20%
• To be done in groups
§ Final examination - 30%

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 Topics and Frameworks Covered
§ Analyzing markets and customers - 5 Cs
§ Developing Marketing Strategy - Segmentation, Targeting and Positioning
§ Making Marketing Decisions - 4 Ps
• Branding
• Pricing
• Marketing Communications
• Distribution

§ Quantitative techniques to support rigorous decision making

• Margin analysis & Break-even Analysis
• Chain rule
• Customer Lifetime Value (CLV)
• Economic Value to the Customer (EVC)

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 Developing a Marketing Plan

Analyze Customers Company Competitors Context Collaborators

Situation
5 Cs

Strategy & Segmentation Targeting Positioning

Action
Plans STP

Product
Implement & Price
Evaluate Marketing Mix 4 Ps
Promotion
Place

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What is Marketing?
 What is Marketing?

§ “Official Definition”: A Business Function

• Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value
for customers, clients, partners, and the society at large. (American
Marketing Association, 2007).

§ A business philosophy
• Make what you can sell; not sell what you can make.

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 Pringles Potato Chip Story

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 The Potato Chip Market

§ Market size in 1950s: $1.5 billion

§ Product made locally and
consumed locally
• Fragile product
• Small shelf-life, spoils quickly

§ Fragmented industry: many small

producers
§ P&G recognizes a mass-market
opportunity

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 Product Development and Launch

§ Began R&D in 1950s

§ Developed Pringles in 1968
• Will not break in transit
• Shelf life of one year

§ Product testing
• Judged as good as competition

§ Regional roll-out in 1968 with heavy advertising

§ Priced at 10% premium
§ Goal of obtaining 25% of the market

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 Results and Post Launch Diagnosis

§ High trial rate leads to 25% share at first, but…

§ Low repeat rate, share drops to 7%
§ Consumer Research: Pringles tasted “artificial”

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 Key Message

Make what you can sell,

Not sell what you can make

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 Creating Value

Company’s Offering

Benefits

Consumer Need

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 The Creation and Delivery of Perceived Value

Value Benefits Costs

to to to
Target Target Target
Market Market Market

Economic Economic
Emotional Emotional

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 Example: Ikea

Inexpensive

Core Product:
A Bed to
Sleep on

I made it myself

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 Example: ISB

• High salary
• A brand name that opens doors

Core Product:
• PGP Course
• Great Curriculum

• Lifelong friendships
• More Rewarding / Challenging Job

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Customer Value Proposition
 Value Proposition

Things Value Proposition

competition
does well

Things we
do well Things a customer
really wants

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 Points-of-Parity and Points-of-Difference

§ Points-of-Parity (POPs)
• These are the attributes that are not necessarily unique to your brand but may
be shared with other brands

§ Points-of-Difference (PODs)
• These are the attributes that are unique to your brand. Consumers relate to
your brand with these attributes and feel that these could not be found with
other brands

Points of parity needed Points of differentiation

to neutralize ‘competition’ needed to stand out

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 How POPs and PODs link to Value Proposition?

Competitors

Their PODs
POPs
Company
Our PODs Customer
White Space

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 How to Create a Strong Value Proposition
through PODs?
§ Points of differences can be established through:
• Product
• Price
• Place
• Promotion

§ Key Question: Where in Product, Price, Place or Promotion are

my PODs located? Which among them best resonate with my
customers?

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 The 1st P - Product

§ Goods, services, events & experiences, persons, properties,

organizations, information, ideas

§ Product as a differentiator?

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 Levels of a Product

§ Product can further be deconstructed different ‘levels’

Augmented product

After-
Actual product
Credit Sale
Quality Service
Features
Level Core
Benefit
Brand
Design
Name
Warranty Packaging Delivery

Installation

§ Differentiation can be achieved at all these levels!

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 The 2nd P - Price

§ Price is the only P that brings in revenue

§ What other forms might price take?

§ Pricing as a differentiator?

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 Price as a Differentiator

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 Price as a Differentiator

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 3rd P - Place

§ Where a company sells a product and how it delivers the

product to the market
§ What are the typical constituents of ‘Place’?

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 Distribution Channel

Producer Consumer

Producer Wholesaler Retailer Consumer

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 3rd P - Place

§ Where a company sells a product and how it delivers the

product to the market
§ What are the typical constituents of ‘Place’?
• Channels of distribution
• Point-of-sale Experience

§ Place as a differentiator?

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 Place as a Differentiator

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 The 4th P - Promotion

§ Inform, persuade, and/or remind potential buyers about an

offering
§ Promotion as a differentiator?
• Innovative Ad Campaigns
• Personal selling
• Personalized offers

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 Promotion as a Differentiator

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 Other Ps?

§ Purpose!
§ Personnel?
§ Processes?
§ 4 As?
• Acceptability
• Affordability
• Accessibility
• Awareness

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 Developing a Marketing Plan

Analyze Customers Company Competitors Context Collaborators

Situation
5 Cs

Strategy & Segmentation

Whom do we want to sell?
Targeting Positioning
Action What are the types of customers that exist? Largely homogenous
Plans why? STP
people have different need and wants
they have different responsiveness

Product
Implement & Price
Evaluate Marketing Mix 4 Ps
Promotion
Place

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 Summary

§ The central goal of marketing is to create value for customers

§ Value can be both Rational/Economic and Emotional
§ Value is determined by customers
• Raw quality is not enough
• It must be perceived by customers

§ Value proposition is the pitch for why your product alone

delivers the best differential value your customers
§ The 4Ps are a useful framework to implement and evaluate
your value proposition

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