This document includes detailed and organised notes for a complete lecture note summary of the course. This is ideal for exam preparation, and personally helped me complete the course with a final exam grade of 8.7. It organises the lectures by key cases and by key terminology with elaborate descri...
Why is Nike so successful at ● ingle, powerful, universal motive
S
marketing? ● Sells benefits, not products
● Profit creation through customer satisfaction
What is marketing? Commercials, advertising, branding, selling
What marketing SHOULD be - Create value for all stakeholders
- Orientation: external, customer-focused
Focus on Customer Needs - Goal: Profit through customer satisfaction
- Often focus on self needs
- Too focused on competitors Determine the needs/wants of the consumer
Deliver better than competitors
Company Orientation Production: “Do what it takes to cut costs”
Product: “Design a technically superior product”
Selling: “Sell more of what we make”
Marketing: “Meet customer needs better than
competition”
Stated vs. Latent Needs Insights into customer needs are often hard to uncover
“If I had asked people what they Stated Need: I want faster horses
wanted, they would have said faster Latent Need: Getting somewhere faster (Henry Ford
horses” - Henry Ford developing motorised vehicles)
What is the core competency that they want developed,
even if they can’t articulate it.
- Companies should be the experts in their field and
understand where the industry is heading towards
, - Protection Emotional/Symbolic (Louis Vuitton)
- Sense of achievement
Emotional/Symbolic - Sense of belonging
- Striving for excellence - Feeling special
- Athletic culture
Customer Value Perceived benefits - Perceived sacrifice
Benefits and Costs Benefits are tangible and intangible
- The coffee, atmosphere, aroma, comfortable sofa,
other working individuals
Costs of acquiring and use
Customer Satisfaction To avoid dissatisfaction:
- Expected characteristics and thus are taken for
granted
- Ie. Bag doesn’t rip
- Commuters expect trains and planes to arrive on
time
To push through neutral customer satisfaction:
- Positive satisfaction range
- How an employee deals with a customer service
call
Delighters:
- Unexpected characteristics that surprise the
customer
- Latent needs
Satisfying the need for consumers Satisfying the need for solidifying a marriage
“A diamond is forever”
Satisfying the needs for cheap flights
Ryan Air
Failures of companies - Instead of focusing and hearing customer needs,
they were too intrinsically focused or focused on
- Attending to wrong type of competitors
market research 1. Coca-Colare-flavouring and re-branding (caused
- Focusing on internal loss of consumers who were sentimentally attached
capabilities, instead of to the original flavour)
customer needs 2. Singlesbaby food, decided they had the equipment
- Overpromising (and without needing further expenditure to release a
reducing perceived quality) line of adult food
- Diluting the brand 3. Domino's pizza and their overachieving to deliver
pizza to customers in under 30 mins or else it’d be
, free of charge (caused accidents for delivering
staff, perceived lower quality of pizza)
4. Harley Davidson launching a line of cologne
although were traditionally known for selling
motorbikes and selling a brand image of
ruggedness
Marketing Strategy (STP) Who are we talking to?
- Segmentation What do they currently
- Targeting believe?
- Positioning What do we want them to
believe?
What do we need to say to
shift their beliefs?
Marketing Tactics/Mix How exactly do we
- Product implement our
- Place/Distribution strategy/articulate our
- Promotion positioning?
- Price
Week 2 - The 3 C’s
Market Analysis Customer Analysis
Competition Analysis
Company Analysis
Consumer behaviour Processes involved when consumers select, purchase, use
and dispose of products, services, ideas and experiences
Systematic human behaviour,
personal biases in decision-making Inside the mind of the consumer
habits ● Value creation
● Consumer decision-making process
● Attitudes and perceptions
What gives objects value? Labour Theory of Value (Adam Smith)
Ie. Diamonds are difficult to mine, difficult to cut, polish
Diamond-Water Paradox:
Nothing more useful than water, “Labour, therefore is the real measure of the exchangeable
, however we won’t trade much for a value of all commodities” (only references supply)
volume of water whereas a diamond,
we spend lots of money on but it 2 things that determine price:
doesn’t determine a life/death - Supply
outcome - Demand
Value is Subjective
Functional (what it can be used for), experiential (how it
makes you feel), social (how it connects you to other
people), economic value
Economic Value
Reduced cost of acquisition and/or consumption
- Total cost of ownership
- Ie. Accord 2015 ($20,000) vs. Prius 2015
($27,000)
Functional Value
Enhanced tangible benefits
- Features
- Functional values and weights (car specifications)
- Ie. how many seats in a car
Experiential Value
Intangible psychological/emotional benefits
- Design
- Brand
- Service
Social Value
Value from interaction with other users
- Positive network externality
- Community (Apple made people feel part of a
community, culture)
- Ie. Video gaming industry, connecting with friends
Consumer decision process Need Recognition
How do consumers come to recognise a need?
Need Recognition - Deprivation(feeling of hunger)
Information Search - Context(going to the food hall after class)
Evaluation & Choice/Purchase - Product(seeing a McDonald’s)
Post-Choice Evaluation - Direct highlighting(someone asking are you
hungry?)
- Word of mouth, social media, advertising…
Information Search
What options do consumers have?
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