Summary
Marketing Summary
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This is a summary of the Marketing course.
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MarketingLecture 1
What is marketing?
Marketing is the way to pursue people to buy things they do not want to purchase. Selling
people things they do not need. 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 larger.
Marketing is the process by which companies engage customers, build strong customer
relationships, and create customer value in order to capture value from customers in return.
Both definitions talk about value that is happing through exchanging.
Marketing is not only about advertising! The average consumer gets 4.000-10.000
advertisement on a daily basis on average. This is crazy and more than 4 times the amount it
was four years ago. You don’t have to be creative to go into marketing.
Marketing enables the parties to engage in such exchanges and managers those exchanges to
create value. Value is different for manufacturers and consumers. For manufacturers value
means profit = revenues – costs. Good profit is earned from creating value that leads to
customer loyalty, repeat purchase, cross-/up-selling, positive WOM, etc. Bad profit is earned
at the customer’s expense, an example for this is a brand of shoes that is overpriced looking
at the quality.
For consumers value means benefits – sacrifices. Benefits are economic, functional, or
psychological. Sacrifices are costs expected to incur when evaluating, obtaining, using, and
disposing of market offerings (money, time, psychological costs, energy/effort). There are
risks involved in buying new objects/products, because you don’t know if it works in the way
you want it to.
Value proposition = you want to bring something to the customer that is different than other
brands and what brings more benefits to them than other brands, while having the same or
lower sacrifices. You want to have unique selling points.
Marketing mix = price, promotion (what kind of marketing communication do you use?),
place (where do you sell your product?), product.
The value of great marketing: brands can create value by adding benefits for consumers. You
can do this through experiences and feelings/norms & values. You have to get to know your
customers to develop a customer portfolio from which you decide on the price and products
you are going to sell.
Focus brand growth
• Consumer & trade activation, it has to add some kind of value to the consumer, the
trade is very close to the consumer and the competitors.
• New products/ limited editions
• Strengthen iconic brand assets.
Objective: Profitable Growth.
,Focus on brand building.
• ATL communication → talk about different kinds of products and how they would end
up in the market.
• Build & protect brand positioning and assets.
Objective: Increase Brand relevance.
Market research process: create test material → qualitative study → optimize →
quantitative study.
Lecture 2
Company objectives, mission, and vision and the environment
Why do companies have mission and vision statements?
• To help guide the different departments in a company (e.g., product development,
marketing, company culture). It helps them to have a certain objective/strategy.
• Without the mission/vision statement how will the company develop its offering to
the customer? It is like a ship with no destination → the ship has a lot of people on
them that need to have some kind of objective to carry out to take the ship
somewhere.
Examples
Starbucks “To inspire and nurture the human spirit – one person, one cup and one
neighborhood at a time.”
McDonald’s “Our mission is to make delicious feel-good moments easy for everyone.”
Spotify “Our mission is to unlock the potential of human creativity—by giving a million
creative artists the opportunity to live off their art and billions of fans the opportunity to
enjoy and be inspired by it.”
A mission statement should always be wide enough for a company to fill, not too specific.
Why is this important? The objective, the strategy
• Helps direct the
efforts a company
takes across its
offerings and
market.
• Ansoff’s Matrix
(1988)
,Ansoff’s matrix has two dimensions: existing – new products and
existing – new market. Here you see an example for Pepsi.
Macroenvironment
You segment your market to these forces. So if one of these forces changes, you need to
change your marketing strategy.
Four levels of competition (this is the macroenvironment)
What is in the same industry?
What has the same function?
What makes the same product?
What is the exact same product?
, Microenvironment
The reason a company exists is for serving customers, it has to create value for them. How
does the company serve the customer?
Porter’s five forces framework (external micro)
Do you have any leverage
on your supplies, then you
can buy products at a
lower price, this has an
element of competition.
Threat of new entrants can
be new competitors as well
as new products.
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