Lektion 2: Introduction to Marketing

I n t r o d u c t i o n to M a r k e t i n g

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Marketing
3. Semester HA – Fall 2023

J o c h e n R ei ner
j o c h e n r e i n e r @ b u s i n e s s . aa u. dk F

i bi g e r s t ræ de 11 , O f f i c e 3 2

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1
 2

Agenda for today

The value of Marketing

The scope of marketing
[European] marketing challenges
Marketing philosophy
Overview of marketing management
To d a y s l e a r n i n g o b j e c t i v e s

Explain why marketing is important

Define the scope of marketing
Justify the importance of marketing for the
firm and society
Describe how technology, globalization, and
CSR are changing marketing practices
Identify the tasks necessary for successful
marketing management

PAGE
3
M a r k e t i n g – the short version

Meeting customer needs profitably

PAGE
4
M a r k e t i n g is c e n t r a l

“The purpose of business is to create a customer. The business enterprise has two – and only
two – basic functions: marketing and innovation. Marketing and innovation produce results; all
the rest are costs. Marketing is the distinguishing, unique function of the business.”
Peter Drucker, in Kotler
et al. , p. 5

PAGE
5
W h a t is m a r k e t i n g ?

”Marketing is an organizational function, a

philosophy of business and a set of processes for
creating, communicating and delivering value to
customers and for managing customer
relationships in ways that benefit the organization
and its stakeholders”

Kotler et al. (2019)

PAGE
6
W h a t is m a r k e t i n g ? ( c o n t ’ d )

Marketing is a business philosophy which

puts the customer at the center of profitable
companies.

“Successful Marketing builds demand for

products and/or services…”

”Marketing is not the art of finding clever

ways to dispose of what you make. It is the
art of creating genuine customer value”
(Philip Kotler)

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7
T h e i c e b e r g p h e n o m e n o n of M a r k e t i n g

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8
A changing marketplace
New consumer capabilities
Use internet as a powerful information,
interaction and purchasing aid
Embrace mobile – searching, communicating
and purchasing on the move
Tap into social media and sharing economy
Can reject marketing practices they find
inappropriate
New company capabilities
Use internet as a powerful information and
sales channel for personalization and
customization
Use data analytics as a core and to gain
richer insights about markets, customers,
and competitors
Embrace mobile and location-dependent
engagement
Are moving to increase cost and efficiency
through automation, robotics and the
Internet of Things
PAGE
9
C h a l l e n g e s for M a r k e t i n g

Marketing (in Europe) faces three transformative forces:

Technology
Globalization
Social Responsibility

PAGE
10
Te c h n o l o g y

The ongoing rise of the internet, smartphones, and social media offers a wide
array of innovative technologies, business models and applications
IoT, augmented / virtual reality, chatbots, wearables, data analytics, machine learning, AI…

Never before
have companies had such powerful technologies for interacting directly with customers,
collecting and mining information about them, and tailor their offerings accordingly
have customers expected to interact so deeply with companies, and each others, to shape
the products and services they use [Roland Rust in Kotler et al. p. 11]

PAGE
11
Digital Disruption

We are in the early stages of an era of great

technological change. Digital innovations are
remaking our industries, economy, and
society just as steam, electricity, and internal
combustion did before them.

Eric Brynjolfsson
Professor at MIT

PAGE
12
Digital Transformations

Companies are increasingly exploring how to

utilize digital technology to compete better in
its competitive environment

Digital transformation involves reconfiguring:

1. Customer value proposition
2. Operation model

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13
D i f f e r e n c e s in u s a g e of t e c h n o l o g i e s

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14
Globalization

The world becomes a “global village”

The entire world becomes more connected due to advances in transportation, media technology, etc.

Opportunity or threat:
Globalization has made it possible for companies to market products and services all over the world.
Globalization has also intensified the competition in domestic markets, making it even more difficult to
create superior customer value

The recent COVID pandemic has led to a rethinking of the being global strategies
(especially in production) of many firms

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15
 16

Trade and
Globalization
Over the past two centuries,
international trade has grown
exponentially.
Lower trade costs allowed the
unbundling of production and
consumption.
ICT has made it possible to
coordinate different stages of
manufacturing at great distance
leading to greater fragmentation and
offshoring
https://www-statista-com.zorac.aub.aau.dk/statistics/264682/worldwide-export-volume- in-the-
trade-since-1950/
Social Responsibility

Many companies have implemented a corporate social responsibility (CSR) strategy in

response to their actions impact major social issues such as wealth concentrations, poverty,
pollution, water shortages, climate change and wars social.

https://www.starbucks.com/responsibility/reporting-hub/ PAGE
17
T h e N e e d to be S u s t a i n a b l e is I n c r e a s i n g

Another mega trend that is affecting

marketing is sustainability.
Customers no longer accept marketing
practices that they consider inappropriate.
Companies are increasingly exploring ways
to incorporate social responsibility to
differentiate themselves (e.g., B Corp).

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18
 19
Societal Marketing

The marketing task is to determine the

needs, wants, and interests of target
markets and satisfy them more effectively
and efficiently than competitors while
preserving or enhancing customers and
society’s long-term well-being.
Marketing Philosophy

What philosophy should guide a company’s marketing efforts?

Production
Marketing Philosophy
Philosophy

Product Philosophy Selling Philosophy

PAGE
20
Production Philosophy

One of the oldest concepts in business

It holds that consumers prefer products that are widely
available and inexpensive
This philosophy requires a high production efficiency,
low costs and mass distribution
There is not necessarily demand for a product, just
because it is produced

PAGE
21
Product Philosophy

Consumers favor products the most quality,

performance or innovative features
Strong assumption that “a better product sells itself
alone”
Risk of “better mouse trap” fallacy
This philosophy requires a high innovativeness and
customers able/willing to buy the product

PAGE
22
Selling Philosophy

It holds that consumers and businesses, if left alone,

won’t buy enough
Focusses on the need of the firm  selling products
Hard selling
Firms sell what the make, rather than make what the
market wants
Sales representatives talk you into buying products

PAGE
23
Marketing Philosophy

Customer-centered, sense- and respond philosophy

Aims to create customer satisfaction (at a profit)
Being more effective than competitors in creating,
delivering and communicating superior value

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24
M a r k e t i n g ’s R o l e in C r e a t i n g D e m a n d

Marketers must be skilled at stimulating and

managing demand.
Demand refers to the willingness and ability
of purchasers to buy a company’s products
and/or services.
Demand requires both willingness and ability
to be present.

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25
U n d e r s t a n d i n g c u s t o m e r s - A Life Without Market Research

PAGE
26
W h a t do t h e s e b r a n d s h a v e in c o m m o n ?

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27
M o t i v a t i o n a nd W i l l i n g n e s s to Buy

UNSATISFIED NEED SEARCH BEHAVIOR REDUCTION OF

TENSION SATISFAC- THE TENSION
TION OF
NEED

PAGE
28
N e e d s a n d Wa n t s

Demand is closely linked to needs and wants

Needs are basic human requirements (e.g., air, food, water, clothing and shelter)
Consumers are driven by particular needs at particular times (e.g., Maslow’s hierarchy of
needs)
Needs may become a want when directed to a specific object that might satisfy the need.
Demands are wants for specific products or services backed by an ability to pay.

PAGE
29
W r a p up

Superior performance is the result of providing superior customer value.

Marketing is a business philosophy and set of processes focusing on creating, communicating
and delivering customer value.
Marketing tasks include capturing market insights, market segmentation and targeting,
deciding on value proposition and positioning, and designing the marketing mix.
Developments in the external environment (i.e., technology, globalization, and sustainability)
are changing the marketplace forcing firms to adapt their marketing.

PAGE
30
 PAGE

Marketing Noter

Forelæsning 1

1. Case Company (own preference)

Start by looking online!
Any recent news you have read/seen by a preferred brand? Start there!

Empirical data collected from publicly available sources:

- Google
- Company website
- Library (AUB)
- Newspapers – infomedia etc.

Theory is taken from textbooks, articles, lectures.

2. Case Company (guest lecture)

Derive a marketing problem from the guest lecture - NO further contact is possible.
Empirical data collected from publicly available sources:
- Google
- Company website
- Library (AUB)
- Newspapers – infomedia etc.

Theory is taken from textbooks, articles, lectures.

Content of the Project

Problem formulation:
Find a marketing related issue to address in the project

Project structure:
- Methodological approach
- Theory
- Analysis
- Recommendations/Conclusions

Submission of Problem Formulation

Discuss in groups which topic you want to write about - theory, method etc. and prepare a
preliminary problem formulation.
Submission of problem formulation: November 17th, 2023, at 13:00

Supervisor allocation: November 21st, 2023

Project Submission and Exam

Submission of project: January 3rd 2024

Exams: week 4 2024

Type of exam:
- Oral group exam (project + pensum)
 - Assessment: 7-point grading scale
- Type of grading: Internal examination

Forelæsning 2

Agenda for today

The value of Marketing
The scope of marketing
[European] marketing challenges
Marketing philosophy
Overview of marketing management

Today’s learning objectives.

- Explain why marketing is important.
- Define the scope of marketing.
- Justify the importance of marketing for the firm and society.
- Describe how technology, globalization, and CSR are changing marketing practices.
- Identify the tasks necessary for successful marketing management.
Marketing – the short version
Meeting customer needs profitably.

Marketing is central
“The purpose of business is to create a customer. The business enterprise has two – and only two – basic functions: marketing and innovation. Marketing and innovation produce
results; all the rest are costs. Marketing is the distinguishing, unique function of the business.”

What is marketing?
”Marketing is an organizational function, a philosophy of business and a set of processes for creating, communicating and delivering value to customers and for managing customer
relationships in ways that benefit the organization and its stakeholders”

What is marketing? (cont’d)

Marketing is a business philosophy which puts the customer at the center of profitable companies.

“Successful Marketing builds demand for products and/or services…”

”Marketing is not the art of finding clever ways to dispose of what you make. It is the art of creating genuine customer value” (Philip Kotler)

A changing marketplace

New consumer capabilities

 - Use internet as a powerful information, interaction and purchasing aid.
- Embrace mobile – searching, communicating and purchasing on the move.
- Tap into social media and sharing economy.
- Can reject marketing practices they find inappropriate.

New company capabilities

- Use internet as a powerful information and sales channel for personalization and customization.
- Use data analytics as a core and to gain richer insights about markets, customers, and competitors.
- Embrace mobile and location-dependent engagement.
- Are moving to increase cost and efficiency through automation, robotics and the Internet of Things.

Challenges for Marketing

Marketing (in Europe) faces three transformative forces:
- Technology
- Globalization
- Social Responsibility

Technology
The ongoing rise of the internet, smartphones, and social media offers a wide array of innovative technologies, business models and applications
- IoT, augmented / virtual reality, chatbots, wearables, data analytics, machine learning, AI…

Never before:
 - have companies had such powerful technologies for interacting directly with customers, collecting and mining information about them, and tailor their offerings accordingly.
- have customers expected to interact so deeply with companies, and each others, to shape the products and services they use [Roland Rust in Kotler et al. p. 11]

Digital Disruption
We are in the early stages of an era of great technological change. Digital innovations are remaking our industries, economy, and society just as steam, electricity, and internal
combustion did before them.

Digital Transformations
Companies are increasingly exploring how to utilize digital technology to compete better in
its competitive environment

Digital transformation involves reconfiguring:

1. Customer value proposition
2. Operation model

Globalization
The world becomes a “global village”
- The entire world becomes more connected due to advances in transportation, media technology, etc.

Opportunity or threat:
- Globalization has made it possible for companies to market products and services all over the world.
- Globalization has also intensified the competition in domestic markets, making it even more difficult to create superior customer value.
The recent COVID pandemic has led to a rethinking of the being global strategies (especially
in production) of many firms.

Trade and Globalization

- Over the past two centuries, international trade has grown exponentially.
- Lower trade costs allowed the unbundling of production and consumption.
- ICT has made it possible to coordinate different stages of manufacturing at great distance leading to greater fragmentation and offshoring.

Social Responsibility
Many companies have implemented a corporate social responsibility (CSR) strategy in
response to their actions impact major social issues such as wealth concentrations, poverty,
pollution, water shortages, climate change and wars social.

The Need to be Sustainable is Increasing

- Another mega trend that is affecting marketing is sustainability.
- Customers no longer accept marketing practices that they consider inappropriate.
- Companies are increasingly exploring ways to incorporate social responsibility to differentiate themselves (e.g., B Corp).

Societal Marketing
The marketing task is to determine the needs, wants, and interests of target markets and satisfy them more effectively and efficiently than competitors while preserving or enhancing
customers and society’s long-term well-being.
Marketing Philosophy

Production Philosophy
- One of the oldest concepts in business.
- It holds that consumers prefer products that are widely available and inexpensive.
- This philosophy requires a high production efficiency, low costs and mass distribution.
- There is not necessarily demand for a product, just because it is produced.

Product Philosophy
- Consumers favor products the most quality, performance or innovative features.
- Strong assumption that “a better product sells itself alone.”
- Risk of “better mouse trap” fallacy
 - This philosophy requires a high innovativeness and customers able/willing to buy the product.

Selling Philosophy
- It holds that consumers and businesses, if left alone, won’t buy enough.
- Focusses on the need of the firm  selling products.
- Hard selling
- Firms sell what the make, rather than make what the market wants.
- Sales representatives talk you into buying products.

Marketing Philosophy
- Customer-centered, sense- and respond philosophy.
- Aims to create customer satisfaction (at a profit)
- Being more effective than competitors in creating, delivering and communicating superior value.
Marketing’s Role in Creating Demand
- Marketers must be skilled at stimulating and managing demand.
- Demand refers to the willingness and ability of purchasers to buy a company’s products and/or services.
- Demand requires both willingness and ability to be present.

Motivation and Willingness to Buy

Needs and Wants
- Demand is closely linked to needs and wants
- Needs are basic human requirements (e.g., air, food, water, clothing and shelter)
- Consumers are driven by particular needs at particular times (e.g., Maslow’s hierarchy of needs)
- Needs may become a want when directed to a specific object that might satisfy the need.
- Demands are wants for specific products or services backed by an ability to pay.

Wrap up
- Superior performance is the result of providing superior customer value.
- Marketing is a business philosophy and set of processes focusing on creating, communicating and delivering customer value.
- Marketing tasks include capturing market insights, market segmentation and targeting, deciding on value proposition and positioning, and designing the marketing mix.
- Developments in the external environment (i.e., technology, globalization, and sustainability) are changing the marketplace forcing firms to adapt their marketing.
Forelæsning 3
Agenda for today (Part 1)
- The critical aspects of management
- How marketing management is practiced
- How global marketing management is practiced.
- The major methods for going global or entering foreign markets.
- Managing in developing and low-income markets

The process of management

Management is the ability to use organizational resources to achieve goals through the functions of planning, organizing, leading and control.

Management can be viewed as:

- A process or series of continuing and related activities
- The achievement of organizational goals by working through and with people
- The responsibility to combine and use organizational resources to ensure that the organization achieves its purpose.

Four basic management pillars

- Planning: establishes the direction of the organization
- Organizing: divides activities among work groups, allocating the people, technological, physical, financial, and information services required to achieve tasks
- Leading: motivates employees to achieve organizational goals
- Control: measures and evaluates organizational performance
Challenges for “Organizing”
- Integrating data about what customers are doing with an understanding of why they are doing it.
- Communicating a brand purpose (functional, emotional, and societal benefits of the offering)
- Delivering a ‘total experience’ to customer
- The marketing department lacks the resources needed to get its primary job done.
- The marketing staff do not have the management skills or power to unite all the departments in the company towards the customer.
- There is constant friction between marketing and other departments in the company.

Leading and Leadership

“Everyone talks about building a relationship with your customer. I think you build one with your employees first”- Angela Ahrendts, former CEO of Burberry

Core Leadership skill:

- Build leadership teams to think and act for the whole organization.
- Understand the underlying systems that produce the performance outcomes.
- Be patient with people as they transition.
- Display extremely high levels of self-awareness.
- Understand and incorporate the wider change context.
- Set tangible measures for the achievement of change.

Controlling
Controlling generally involves comparing actual performance to a predetermined standard / goal.
“You can’t manage what you can’t measure”- Peter Drucker

Is it all that easy?

Marketing management…
…is a business discipline that achieves goals through the practical application of marketing techniques and the management of the total firm’s marketing resources and activities.

…is the planning, organizing, leading, and control of the analysis of the market, the choice of target market(s) and brand positioning and the use of the marketing mix activities.

Understanding marketing management

- Valuing marketing within organizations
 - Managing across the entire organization
- Managing outsourced activities (e.g., advertising)
- Managing networks and relationships (key stakeholders)

Understanding global marketing management

Agenda for today (Part 2)

- How marketing affects customer-perceived value
 - How corporate and divisional strategic planning is conducted.
- How business unit strategic planning is carried out.
- What is involved in developing a marketing plan?

Marketing and customer-perceived value

Environmental change: from sellers’ to buyers’ market
- Intense competition
- Customers demand more (perceived value) for their money
- Choice of possible providers/sellers/manufacturers
- Customer relationships become vital (e.g., loyal customers)
- Stronger heterogeneity amongst customers

Value delivery process

The value chain.

Core competencies
One important key success factor is to own and nurture resources and competencies that make up the essence of the business.
A core competency:
- Is a source of competitive advantage and makes a significant contribution to customer perceived value?
- It has applications in a wide variety of markets.
- It is difficult for companies to imitate.
Competitive advantage  “Why should customers buy from us.”

A holistic marketing orientation and customer-perceived value

How can a company…
…identify new customer-perceived value opportunities.
…efficiently create more promising new customer- perceived value offerings.
…use its capabilities and infrastructure to deliver the new customer-perceived value offerings more efficiently.

Product Portfolio Planning

Usage of BCG-Matrix
Dynamic nature of planning

Ansoff’s product-market expansion grid

Strategic business unit planning

SWOT analysis…
…to evaluate a company’s strength, weaknesses, opportunities, and threats.
Building up the SWOT Analysis
A powerful SWOT analysis requires a systemic evaluation, e.g., market opportunity analysis.
From goals to strategic formulation
Goals indicate what a firm (or SBU) wants to achieve; strategy is the plan for getting there.
Loosely speaking you need to states the “who, what, how, where”

Porter’s generic strategies are a good starting point.

- Cost leader: gaining large market shares by offering low prices (requires effective cost structure).
- Differentiation: focus on superior performance (e.g., high quality) addressing an important customer benefit area.
- Focus (or niche): focus on a more narrow market segment with either a cost leadership or differentiation strategy.

Wrap up
- Management involves planning, organizing, leading, and control.
- Marketing management descripts the business discipline applying marketing techniques.
- Customer-perceived value is key to marketing management.
 - BCG-Matrix as a tool to plan product portfolio.
- Product-market expansion using Ansoff’s matrix.
- SWOT analysis as a tool for strategic planning.

Lektion 4: Consumer Markets (AB)

This session gives insights into consumer behavior aspects, where students learn about motivation, perception, learning and memory behaviors, and the buying decision making
model among others.

Agenda:

Consumer behaviour
Factors affecting consumption
Model of consumer behaviour
Consumer decision-making processes

Consumer Behaviour
study of how individuals or groups buy, use and dispose of goods, services, ideas or experiences to satisfy their needs and wants

Culture

- fundamental determinant of a person’s wants and behaviour

- meanings that are shared by people in a social group
- blueprint for consumer behavior

Consumer Behaviour in Denmark

• Denmark is a consumer society.

• Danish consumers are among the most demanding consumers in Europe. New technologies and rapid access to information allow consumers to evaluate before making a
purchase. It is not uncommon for consumers to inquire about a brand or product before going to the store.
 • Consumers are increasingly buying online the main reasons being to avoid till queues, traffic or even stockouts. E-commerce has largely normalized in the country, with 4.6
million internet users.
Foreign products are generally welcomed, but Danish products will often be preferred, as well as international products with a long-established brand in the country.

Each culture consists of small subcultures (defined through values and norms):
Ø Nationality
Ø Religion
Ø Ethnicity
Ø Geografic regions

Take 5 mins. Discuss with your colleague:

 § Does CULTURE influence your buying behavior?
§ Yes it does
§ If so, how?
§ Sasa

Social Groups
§ Individuals within the same social class often exhibit the same behaviour
Ø Reference groups
Ø Family
Ø Roles and status

Reference Groups

have a direct (face-to-face) or indirect influence on our attitudes and behaviours.

Membership groups:
§ Aspirational groups: those a person hopes to join
§ Dissociative groups: those to which a person does not belong or whose values a person rejects
Influential individuals in groups :
§ Opinion leaders
§ Market mavens

Family

§ Most important/ most influential buying organization in society

2 families in buyer’s life:
§ family of orientation: parents and siblings
§ family of procreation: spouse and children
Roles and status

§ Role = activities a person is expected to perform

§ Each role carries a status

Take 5 mins. Discuss with your colleague:

§ Do SOCIAL GROUPS influence your buying behavior?
§ If so, how?

The Individual Consumer

§ Personal characteristics that influence a buyer's decision:
a) Age and stage in the life cycle
b) Occupation and economic circumstances
c) Lifestyle and values
d) Personality and self-concept

Age and stage in the life cycle

§ Age-related: taste in food, clothing and recreation
§ Critical life events or transitions that give rise to new needs: marriage, birth, illness, relocation, divorce, first job, career change, retirement, death of spouse

Occupation and economic circumstances

§ Choice of product/brand influenced by economic conditions:

 ü Income (level, stability and time pattern)
ü Savings
ü Debt
ü Attitudes to use and save

Lifestyle and values

§ Lifestyle = a person’s pattern of living as expressed in activities, interests and opinions

• Are consumers money constrained or time constrained?
Example?
§ Values = belief systems that underlie attitudes and behaviors
Example?

Values Lifestyle Behaviour

Personality and Self-concept

§ Personality defines us
o based on our personality, we make purchasing decisions
§ Self-concept = how we see ourselves
o Actual-self concept (how consumers actually see themselves)
o Ideal-self concept (how consumers want to see themselves)
o Others-self concept (how consumers think others see them)
Self-Brand Connection
Brand Personality
Model of Consumer Behaviour
Motivation

Need:
§ Biogenic needs: hunger, thirst or discomfort
§ Psychogenic needs: the need for recognition or belonging
MASLOW’S THEORY
§ Before we can meet our needs for self-realization, however, there are a number of basic needs that must be met first.
Perception

= how we select, organise and interpret information inputs to create a meaningful picture of the world
§ selective attention: screening out of most stimuli
§ selective distortion: distort the information to comply with previous brand and product expectations
§ selective retention: we retain information that supports our positions
Learning

Memory

Short-term memory: a temporary and limited store of information

Long-term memory: a more permanent, essentially unlimited storage
Brand associations:
=all brand-related thoughts, feelings, perceptions, images, experiences, beliefs, attitudes

The Buying Decision Process

- The 5 Stage Model of the Consumer Buying Process

 ’

- There is high and low involvement:

o Low is cheap products such as cholate milk food and so on
o High is computer, laptop, watches, tv and so on
Take 5-10 mins. Discuss with your colleague:
§ What was the last product you bought?
§ What buying process did you go through?
Buying Decision
How consumers consume and dispose of products?

Guest lecture
Consumer Empowerment

Consumer Power

Trends in marketing Communication

Lektion 5: B2B AND B2C
 4
Hurdles and characteristics for Business Markets

Hurdles Characteristics

Building stronger interfaces between Fewer larger buyers

marketing and sales
Close supplier-customer relationship
Building stronger innovation-marketing interfaces
Extracting and leveraging more granular customer
and market knowledge

PAGE
4
B2B versus B2C

Professional purchasing
Multiple buying influences
Multiple sales calls
Derived demand
Inelastic demand
Fluctuating demand
Direct purchasing

PAGE
74
 6

Buying situations

Business decisions depend on the buying situation:

Complexity of the problem being solved
Newness of the buying requirement
Number of people involved
Time required

PAGE
75
 7
Three types of buying situation

PAGE
76
Number of
decisions

Over time, buying

situations evolve

PAGE
77
 8
Systems buying and selling

Many business buyer prefer

buying a solution from a single
seller.

System Contracts are an

opportunity, i.e., a single
“supplier” provides entire
solution (product, maintenance,
PAGE
78
 repair etc.) PAGE
8

The buying center

A buying center consist of all

individuals / groups who participate in
the purchasing decision-making process

Kotler p. 241

PAGE
79
Buying center influences
influence

Even in a structure process, individuals and

their interest are shaping the decision Buying influence
influence
Decision

influence

PAGE
10

PAGE
80
Targeting firms and buying centers
Different targeting approaches possible – often dependent on form size (i.e., resources)
Key buying influencers
Multi-level in depth selling

The buying process

PAGE
81
 Kotler p. 244 PAGE12

Customer value assessment

PAGE
82
 14
Managing Business-to-business relationships

Eight categories of buyer-seller relationships

1.Basic buying and selling

2.Bare bones Availability of Importance of

alternatives supply
3.Contractual transaction

4. Customer supply
5.Co-operative systems Complexity of Supply market
supply dynamism
6. Collaborative

7.Mutually adaptive

8.Customer is king

PAGE
83
Business Relationships

Kralic 1983
PAGE
84
Institutional and government markets
Schools
Hospitals
Nursing homes
Prisons

Low budgets and captive clienteles

PAGE
85
 17

Agenda for today (Part 2)

Identifying Competitors

Analyzing Competitors

Selecting Competitors

Competitive Strategies
Identifying competitors
An industry is a group of firms that offers a productor class of products that are close
substitutes for one another.

Competition are companies that satisfy the same customer need

Kotler p.266

Analyzing competitors

PAGE
87
 What are the

competitors:
Strategies
Objectives
Strengths and weaknesses
Share of market

PAGE
88
 Share of mind
Share of heart
Mapping the Market

Example for Multidimensional Scaling

PAGE
89
Asymmetric competitive market structure map for 1,124 LED
TVs

PAGE
90
Ringel, Daniel / Skiera, Bernd (2016), "Visualizing Asymmetric Competition among More than 1,000 Products
Using
Big Search Data", Marketing Science, Special Issue on "Big Data: Integrating Marketing, Statistics, and Computer
Science", Vol. 35, Issue 3, 511-534

PAGE
91
Selecting competitors
Focus on the following competitors
Strong vs. Weak
Close vs. Distant
Good vs. Bad

PAGE
92
Customer selection grid

Kotler p. 271

PAGE
93
Kotler p. 271

PAGE
94
 23
Competitive
strategies

Expanding the total market

Protecting market share
1. Responsive marketing
2. Anticipative marketing
3. Creative anticipation
Expanding market share

PAGE
95
Lektion 6: Branding and Branding Strategies

• Brand = “name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate
them from those of competition” (AMA)

Roles of Brands 1
Emotional Branding 1

= to engage the customer on a sensory, and emotional level;

Ø to create deep, lasting, close emotional relationships with the brand that go beyond material satisfaction
Brand Promise

§ A brand promise is the company's vision of what the brand should represent and do for the customer
§ Coca-Cola: “To inspire moments of optimism and uplift.”
§ Nike: “To bring inspiration and innovation to every athlete in the world.”
§ Harley Davidson: “We are Harley Davidson.”
Brand Knowledge

= all the things associated with the brand in the customer's consciousness
§ Associative network memory model

Strategic Brand Management

- Functions

1. Create and manage brand identity

(Names, logos, slogans, images)
q A brand should be relatively easy to pronounce
q A simple rule: a brand name must not exceed three syllables (composed of a consonant and a vowel)
q Denotative meaning
. Manage individual or house brands
q Individual names :
q Brand umbrella: Corporate, family or house names
3. Manage brand extensions
q most new products / services are ‘line extensions’
q family brand = if parent brand (existing brand) is already connected to several products through brand extensions
Brand Equity

= the added value dedicated to products and services that can be reflected in the way customers think, feel and act in relation to the brand

Brand Equity Dimensions

 • Brand loyalty: encourages customers to buy a particular brand from time to time
• Brand awareness: brand names attract attention and convey images of confidentiality
• Brand quality: 'perceived' means that customers decide the quality level, not the company
• Brand associations: the values and personality associated with the brand

Offline vs. digital brands

 Reasons to expand online:
• new markets
• add customer value
• increased flexibility
 Online to Offline

SASAAS

ASASSASASAS
A
ASAS

A
SA

Digital branding
Consumer Decision Making Journey
New Consumer Decision Making Journey
Branding and Social Networking

 SN= activities, practices and behaviors among communities that gather online to share information, knowledge, opinions

Why customers decide to be a part of an online brand community?1

 • Information: learn, solve problems or make decisions
• Relationship: creation of relationships among members
• Social identity and self-expression: fulfill self-awareness
• Helping others: generates a feeling of satisfaction
• Enjoyment: recreation and fun through their interactions
• Belongingness: satisfaction as being part of the community
• Status and influence: recognition and respect from other members

How to maintain an online brand community

• Have appealing marketing message

• Involve people through questions
• Invite your fans to share content
• Collaborate, involve community in decision making
• Listen to your consumers, be flexible
• Implement your consumers’ decisions to enhance the community

Global brands

A global brand is one that is available in many nations, and though it may differ from country to country, the localised versions have a common goal
Physical goods: SONY
Services: BRITISH AIRWAYS
Online brands: FACEBOOK INSTRAGRAM

Celebrity Branding

Advantages:
ü Improve company image and brand attitudes
ü May lead to increased profits
ü Visibility: celebrities wear brands at premieres, interviews, etc.
ü Advertisements stand out
Lektion 7: STD

Learning Objectives

 Explain what customer value is and why it is important

 Define the major steps in designing a customer-driven marketing strategy and creating customer value
 Describe the main principles of segmentation and understand the main criteria for effective segmentation
 List and discuss the major bases for segmenting consumer and business markets

Learning Objectives (cont’d)

 Evaluate different segmentation bases in terms of effectiveness

 Describe the main methods that can be used for segmentation
 Explain how companies identify attractive market segments and choose a market targeting strategy.
 Discuss how companies differentiate and position their products for maximum competitive advantage

Customer-Driven Marketing Strategy and Customer Value

Segmentation

 Segmentation is ”the process of dividing a market into distinct subsets of buyers with common needs or characteristics and selecting one or more segments to target
with a distinct marketing mix (Shiffman, Kanuk, & Hansen, 2012)
 Segmentation was introduced by Smith (1956), who desclares that is ”involves viewing a heterogeneous market as a number of smaller homogeneous markets”
The primary motive for market segmentation is variation in customer needs
Segmentation Process

Segmentation aims to identify clusters where:

 Identifiable differences between segments (i.e., segment heterogeneity)
 Similarities between members within each segment (i.e., members homogeneity)

Segmentation Bases

 ”A set of variables or characteristics used to assign potential customers to homogeneous groups” (Wedel & Kamakura, 2000, p. 7)
 The identification of market segments and their elements is highly dependent on the bases
 The choice of segmentation base lead to different segments being revealed
Criteria for Effective Segmentation
  Measurable: The size, purchasing power, and profiles of the segments can be measured.
 Accessible: The market segments can be effectively reached and served.
 Substantial: The market segments are large or profitable enough to serve.
 Differentiable: The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.
 Actionable: Effective programs can be designed for attracting and serving the segments.

Tageting
 Targeting involves the process of selecting one or more segments
 A target market is a set of buyers who share common needs or characteristics that the company decides to serve.

Tageting (cont’d)

To select a target market the firm has to:

 Evaluate the various segments
 Decide on how many and which segments to serve

Segment Attractiveness

 The company need to focus its resources on those segments that provide the greatest opportunities for the company to achieve its objectives.
 Segment attractiveness is “a measure of the potential of a segment to yield growth in sales and profits” (McDonald & Dunbar, 2012)
Evaluating market segments

Targeting strategies
Choosing a targeting strategy

Choosing a targeting strategy depends on:

 Company resources
 Product variability
 Product life-cycle stage
 Market variability
 Competitor’s marketing strategies

Positioning
 Product position is the way the product is defined by consumers on important attributes.
 Positioning determines a whether a firm’s profitability is above or below the industry average (Porter, 1985)
 Product position are influenced by several things, including:
 Perceptions
 Impressions
 Feelings

Positioning maps

 Positioning maps show consumer perceptions of marketer’s brands versus competing products on important buying dimensions.
 Creating perceptual maps involves three steps:
1. Defining the market
2. Choose important buying dimensions and compare offers
3. Plot positions
Example positioning map

Choosing a differentiation and positioning strategy

  The differentiation and positioning task consist of four steps:
1. Identifying a set of possible competitive advantages to build a position
2. Choosing the right competitive advantages
3. Selecting an overall positioning strategy
4. Communicating and delivering the chosen position to the market

Identifying possible competitive advantages

 Identifying a set of possible competitive advantages to build a position by providing superior values from:
 Product differentiation
 Service differentiation
 Channels
 People
 Image

Generic strategies and competitive advantage

Choosing the right competitive advantage

Selecting Overall Positioning Strategy

 Communicating and delivering the chosen position

 Positioning statement states the product’s membership in a category and then shows its point-of-difference from other members of the category
  Once the position is chosen, the company must take strong steps to deliver and communicate the desired position to its target market
 All company’s marketing mix effort must support the positioning strategy

Kort: Det handler om at opdele markedet op i segmenter og finde de segmenter man gerne vil arbejde med. Det skyldes at man kan aldrig ramme hele markedet og ville være
spildt af resorucer hvis man ikke får det opdelt. Hermed insvævner man markedet med at idenficere hvilke kunder man skal arbejde med. Det gør at marketing vil blive mere
konceretet og fokus på sin segment eller segmenter.

Et segment bliver opdelt i 4 katogeriere. Såvel som geografi, demografi, Beauvoir og psykologisk

Man kan traget sin målgruppe/segment på flere forskellige måder:

Det kan også gøres ved at have et stærkt brand, god kundeservice på produktet, på prisen(more for value) og på sit brand.

Yderligere kan man gøre brug af de generiske strategier

TIl sidst ved position, der har man et possion kort
Det er forskelligt hvad man ønsker at måle sig på. Hvis vi tager fat i BMW, vil de typisk diff sig på mortorkraft hvor audi vil være luksus og Volvo vil være sikkerhed. Så der kan blive
målt på mange forskellige måder og kortene kan se meget forskellige ud fra hvad man ønsker at måle.

https://www.youtube.com/watch?v=0srjdRDh99Y

god
https://www.youtube.com/watch?v=K400f3nvtrI

meget god

opdelt I dele:
https://www.youtube.com/watch?v=y6Gk8gwda84

https://www.youtube.com/watch?v=PoB1e4VxBho

https://www.youtube.com/watch?v=dW40hk4SXaI&t=3s

Kort 1 minut, men giver fagbegreber

https://www.youtube.com/watch?v=vVClu9IpalQ

https://www.youtube.com/watch?v=iTTHzLCeRZU
udmærket

https://www.youtube.com/watch?v=iGOw39GWDaI

meget god
https://www.youtube.com/watch?v=SKOozKs_1QU

B2B vs B2C Marketing (What Are The Differences?)

behøves ikke

Lektion 8

Designing Market(ing) Research

Agenda 1.

https://www.youtube.com/watch?v=V5kGgU7bVuU

1. What is marketing research ‘

Uden at vide oim markedet har brug for dette product, at det riskiaklt at udgive produktet og hermed laver man marketing research
- Det er måden at få sine svar på
- Det indeår ideticifere, analysere ift til tenkikker og problemer
- Så ift til efterspørgelsen efter produktet, konkurrencen i markedet og andre ting såsom producede produktet og distrubtion

It is also used to predicet how much the company hope to sell?

 - Where
- To whom
- And how to sell it.

Meget af daten kan virksomheden selv gøre brug af. Ift til deres data.
- This form of data is called market research is knows as Salas analysis.
- This should give the company the information about which produckt are selling best and in which markets and to which type of customer. ‘

Andre information er offenligte hvor man kan google sig frem til det

Marketing recsearh procces

- Define the problem

- Define the sample
-
- Execute data collection
o It can cause eroors in reseach
- Analyze the results
- Make the research report
 2. Marketing research process

https://www.youtube.com/watch?v=b4us4bNwAsc

First step
- Define the objecktives and research needs
o Why am I doing this research
o You gotta know these things
o What problems are we gonna solve with this research
Step 2

- Design the research

 o What is the best way to do it
o What type of data are we gonna collect
o Primary or secondary data

Step 3
- Data collection process
o We start collecting it
o Survey maybe

Step 4
- Now we going to analyze it and develop insights
o Transform the data into information

Step 5
- Develop an action plan and start the plan
o How are we help the issue

Step 6

3. Problem definition process

https://www.youtube.com/watch?v=CtZmWrkIsvI

Define the problem

What information do we need to develtop to help answer the business question

- Three types of research

 o Exploratory
 Is the form when you don’t know what the questions are
 What are the issues
 It could be icecream shop, it want to make better icecrean but don’t know which questions to ask, could be why is icecream attractive, why and which
flavors and so on
o Descriptive
 Find Answers to specific questions
 Correlation- To see the relationship between 2 variables
o Casual
 Cause and effect
 Where you are trying to prove cause and effect.
 Most business are Descriptive and exploratory, because its very expensive and takes a lot of time and so on
o New medical treatment and states thats this pill vil solve a disease(before you make it public)
o Research that has been validated many times

4. Designing marketing research

- Actions speak more than words.

o Amazon is a good example, there u can see what people buys and what they don’t do and so on
- More Reviews means more people bought that book
- Facebook ADS and so on

Lektion 9:
Development and Management of Market Offerings
https://www.youtube.com/watch?v=wSQHAn2PZuE
Chaptor 14

https://www.youtube.com/watch?v=T3ORSQZ-jrk&t=9s
Chaptor 15

Marketing Management – Chapter 14: Designing & Managing Services I Kotler & Keller!

There is difference is service.

It does depend if its private or public.
- Privat og puplic hospitals: they differ on service and so on
- Beuty salon service is also music, small talk with the customer and so on
-
A service can not been seen, tasted felt or heard before its bought
This service is barber, getting a haircut u know
Variabllby, this could be doctor. Depends very much with doctor is doing the sugary

- There is 3 steps of getting lower variablilty

o Set some standard goals.
o Train your employs
o Watch the customer satifation
Så måske kun 8 minutter af den video, satme kedeligt:

https://www.youtube.com/watch?v=T3ORSQZ-jrk&t=9s
Chaptor 15

Marketing Management – Chapter 15: Introducing New Market Offerings I Kotler & Keller!
Så måske 8-10 min. Igen røv sygt

Læs nok lektion 9 igen, da det var røv

Lektion 10