Summary of all the lectures of Marketing Strategy. This summary includes lecture notes and screenshots of the most important figures from the slides. I have updated the summary after the exam, so all important information is covered.
The course Marketing Strategy was taught by Steven Sweldens a...
SESSION 1 | INTRODUCTION
Freud’s iceberg metaphor: conscious thoughts (small) and unconscious thoughts (big)
o Why we think we buy things vs. why we really buy things
Dual process theories: system 1 vs. system 2
o System 1: fast, automatic, unconscious, emotional & system 2: conscious, slow, rational
o But does system 1 actually exist? Still not sure - not two systems but a continuum
Creating brand associations: a continuous trinity model linking associations to learning processes
Marketing = interference between company and customers
o Marketing strategy = highest form of marketing
o Marketing as cost vs. investment: accountability and accounting problem
o Marketing as philosophy: putting the customer at the center of all you do
Marketing = Strategy - How are we going to deliver?
o Goal = Profitable growth > change management > market forces
Porter’s 5 forces: competition, new entrants, suppliers, customers, substitute products
5 C’s: customers, competitors, company, collaborators, context
Marketing is changing - but market forces stay the same
o 1960: stream of products to customer - product-oriented
o 1990: satisfying wants and needs - customer-oriented
Don’t need a drill to make holes (average of 0 holes per year), but to feel independent
Drill didn’t sell to professional segment: bad inter-segment dynamics
o Now: resources are not unlimited – system-orientation: shared value
Shared value > change management > market forces
Mini-Case study: Danone – One Planet. One Health
o Mission statement: bringing health through food to as many as possible
o Entreprise-à-mission: take social, societal, and environmental impacts into account
o Financial innovation, product innovation, packaging innovation, and consistent communication
o However profits went down, lagged behind competitors, and chairman got fired
Mission statement: give purpose to company, identity to brand, and act as catalyst for innovation
Purpose needs to be strong – only work when strong and consistent with brand
o E.g. Gillette receiving criticism on pink tax and sexism in controversial ad
Financial benefits of shared value: better reputation, more stakeholders, risk mitigation, innovative
o Purpose can and will cost money though – never boosts profit
1
, SESSION 2 | GROWTH SHARE & BRAND RENEWAL MATRIX
Market forces Change management profitable growth / shared value
o Manage forces in such a way to get a profitable growth
Change management: resource allocation - market-driven vs. market-driving
Two dimensions of resource allocation
o Horizontal = strategic – different brands
o Vertical = 4 Ps – price, promotion, place, product
Disadvantages of large brand portfolio’s
o Fragmentation of resources and attention, brand blurring, destroying economies of scale
o The Branded House: e.g. Virgin – main brand on everything: use resources, halo effects
o The House of Brands: e.g. Unilever, P&G – complex (forgot trademark), risk management
Advantage is diverse positioning possibilities
Boston Consulting Group (BCG) Growth-Share Matrix
o X-as: subject to definitions - relative market share or segment share
perfect duopoly = market share equal to largest competitor, middle: 1
Monopoly = infinite, left bottom corner
o Y-as: market growth rate - how much market where a brand is in, is growing
Same products always on the same y-as but different x-as
o Advantages: easy to perform, quick overview, good starting point, known, expected
o Disadvantages: no dynamic info, brands on boundaries, share & growth ≠ profit
Brand Renewal Matrix
o Watch out for attentional blindness! Don’t neglect older, struggling or partner brands
o Brand contribution: overhead, bad PR, hidden costs, hidden benefits
o Brand traction: how strong is the brand today? Awareness, loyalty, purchase int., market share
o Brand momentum: where is the brand heading?
Vertical resource allocation – more tactical
o Where & when: the buying process – customer journey and marketing funnel
o Generic funnel with marketing mix – 4Ps
2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Daniquedhs. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R117,94. You're not tied to anything after your purchase.
