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Week 1: What is marketing? Marketing is activity, set of institutions & processes for creating, capturing,communicating, delivering & exchanging offerings that have value for customers, clients, partners & society at
large. Some common misconceptions about marketing: Marketing = Advertising, deception, not for everyone, one-
time investment, only for profit & focus on customer equality. Product orientation: Production & efficiency,
economies of scale & scope, assume demand is more than supply, research is limited to technical product & minimal
promotion. Selling orientation: Aggressive push strategy, accepting every possible sale, strong transactional focus &
typically unsought goods. Marketing orientation: Customer's needs & wants, consumer behavior, extensive market
analysis & product testing. Societal marketing orientation: Balance commitments to groups & individuals
(shareholders & stakeholders) & include social, environmental & ethical considerations. Relationship orientation
(Now): Seller-buyer relationship, customer lifetime concepts, customer value & better customer service. Consumer
behavior & strategy: Begins w/ market analysis then segmentation, value & 4Ps (& service), consumer decision
process & finally outcomes. What is value?: Regard that something is held to deserve; importance, worth/usefulness
of something. Example: “Your support is of great value". Economic value is measure of benefit provided by
good/service to an economic agent & value for money represents an assessment of whether financial/other resources
are being used effectively in order to secure such benefit. Value in marketing also known as customer-perceived
value is difference between prospective customer's evaluation of benefits & costs of one product when compared w/
others. Value may also be expressed as relationship between perceived benefits & costs: Value = Benefits – cost.
How is value created: Why new products are created, why do some products fail, how are new products created,
how is innovation diffused, what is product lifecycle & mix & what are services? How is value
appropriated/captured: How objectives can influence pricing, what is demand curve, price elasticity, breakeven
analysis & what are different pricing strategies? How is value communicated: What is AIDA model, IMC,
advertising, PR toolkit, who are influencers & what are sales promotion? How is value delivered: What are
channels, who are main players, what is channel conflict, how can conflict be resolved, how is power observed in a
channel? Ansoff matrix: Strategic planning tool that provides framework to help executives, senior managers &
marketers devise strategies for future business growth. Market penetration: Least risky, product development: risky,
market development: high risk, diversification: riskiest of the four. GE/McKinsey matrix: Technique used in brand
marketing & product management to help company decide what products to add to its portfolio & which
opportunities in market they should continue to invest in. BCG matrix: Growth share matrix, only diversified
company w/ balanced portfolio can use its strengths to truly capitalize on its growth opportunities. Balanced
portfolio has: Stars whose high share & growth assure the future, cash cows that supply funds for that future growth
& question marks to be converted into stars w/ added funds. Porter’s 5 forces: Method of analyzing operating
environment of competition of business. Porter refers to these forces as microenvironment. Week 2: Who is
consumer: Consumer is person/group who intends to order/use purchased goods, products/services primarily for
personal, social, family, household & similar needs, who is not directly related to entrepreneurial/business activities.
Consumer usually has following rights: Right to safety, be informed, choose, seek redressal & represent. Decision
making process: 6 steps. Need recognition: Depends on two factors: Gap between what we need & have &
importance of that gap. In many cases, problem recognition & definition occur simultaneously (e.g., running out of
milk). Information search: Such information can come from family, friends, personal observation/other sources such
as consumer reports, salespeople/mass media. Evaluation of alternatives: Consumer evaluates these alternatives & if
financially & psychologically able makes choice. Some rules of thumb: Save most money, get what you pay for, get
tried & tested option & visual cues. Some factors: Search & opportunity costs, perceived risk (performance;
financial; social; physiological (safety); psychological risk). Purchase decision: Retailers often use conversion rates
to measure how well they have converted purchase intentions into purchases. Increase conversion rate by reducing
abandoned carts, expand product line & enhance customer service. Some products see higher conversion rates than
others. Post purchase behavior: Some outcomes are satisfaction & cognitive dissonance. Disposal. Tendency for
person to go through all six stages is likely only in certain buying situation, first time purchase of product for
instance/when buying high priced, long-lasting infrequently purchased articles. This is referred to as complex
decision making. For many products purchasing behavior is routine affair & past reinforcement in learning
experiences leads directly to buying. This is called simple decision making. Consumer journey: In traditional funnel
metaphor, consumers start w/ set of potential brands & methodically reduce that number to make purchase.
Influences on consumer: Psychological: Psychology is study of human behavior. Motivation: Need/want that is
strong enough to cause person to seek satisfaction. Attitude: Overall evaluation of brand. Perception: Interpreting
sensory information (product reviews, ratings, quality, price etc.) to comprehend environment. Lifestyle: Activities
(e.g., soccer), interests (e.g., world politics), opinions (e.g., about immigration). Social: Family, reference groups &
culture. Situational: Timing, purchase & sensory situation. Marketing mix: Product, price, place & promotion
factors. B2B & B2G: Business 2 business (B2B): Process of buying & selling goods/services to be used in
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