This summary is for the course Marketing Strategy (BM04MM). This is a summary of all of the lectures for the exam. It also includes summaries of the case discussions and figures from the slides for extra clarity.
Marketing = Strategy
What is Marketing as defined by people?
- Marketing as tactics
- sales promotions and coupons
- advertising, logos, brochures…
- Marketing as cost (vs. investment)
- the accountability problem
- Surrendered decisions to other dept.
- Pricing, CRM, digital...
Definition of marketing?
- Marketing is the process of identifying and profitably satisfying customers’ wants and
needs
Definition of Strategy?
- Business strategy is a clear set of plans, actions and goals that outline how a
business will compete in a particular market, or markets, with a product or number of
products or services. // how you will compete
- Marketing as strategy: If companies are bundles of processes designed to deliver customer
value…. Marketing = Strategy
- Marketing as a philosophy: Putting the customer at the center of all you do
- From marketers to marketing: Who manages customer touchpoints? → The importance of
breaking corporate silos
Key marketing strategy theories
Porter’s 5 Forces:
1. Competition in the industry (COMPETITION)
2. Potential of new entrants into the industry (ENTRANTS)
3. Power of suppliers (SUPPLIERS)
4. Power of customers (CUSTOMERS)
5. Threat of substitute products (SUBSTITUTES)
This course: The CMO (Chief Marketing Officer) Perspective
- CMO’s must divide the marketing budget (budget allocation) across the 4Ps
- Dunning-Kruger Effect: a person’s lack of knowledge in a certain area causes them to
overestimate their own competence
- Marketing from a Product-Orientation: Marketing is the execution of business activities
aimed at navigating a stream of products and services from the manufacturers to the
customer >>1960 (American Marketing Association)
- Marketing from a Customer-Orientation: Marketing is the process of identifying and
profitably satisfying customers’ wants and needs >> 1990 (focus on the benefits to the
customer)
→ now more focus on sustainability
- Marketing from a System-Orientation: Market Forces → Innovation → Shared Value
- Implicit assumption at the heart of traditional marketing thought: “As long as consumption
creates value for both consumers and companies, we should encourage unlimited
consumption”
Mission statement & Consistency
- Mission statement should give purpose to the company, identity to the brand and act as a
catalyst for innovation at all levels
Danone’s mission statement: bringing health through food to as many people as possible
- Financial Innovation: Danone was the first company to introduce carbon-adjusted
earnings-per-share (EPS)
- Product Innovation: Evian - refillable bottle for family hydration
- Packaging Innovation: pure water, pure, clean package
- Consistent Communication: Evian water and Dua Lipa (global brand ambassador),
acapella singing
- Purpose needs to be ‘strong’ (applied all across the brand), but it can cost a lot of money
(“A true brand purpose doesn’t boost profit, it sacrifices it”
- Doing well by doing good
- Financial performance benefits of shared value:
, 1. Enhanced firm reputation
2. Stakeholder endorsement
• Both internal and external
3. Risk mitigation
4. Improved innovative capacity
• Via access to knowledge and internal capabilities
Key Take-aways:
- Marketing vs. Strategy, a false dichotomy
- How Marketing is changing:
- Product Orientation → Customer Orientation → System Orientation
- Rethinking marketing for sustainable development
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