Marketing strategy notes
OUTLINE:
Lecture 1: Introduction to marketing strategy
Reading notes
“Reinventing Marketing to manage the environmental imperative” - Philip Kotler
“Creating shared value” - Michale Porter
Lecture notes
Definitions and current marketing landscape
Marketing is changing.
Lecture 2: Marketing strategy is navigating changing markets
How to change?
4 principles of effective change management
New Coke case
Menti
Why did coke change?
Why and when should have Coke changed?
Why did it take them so long?
How do you change big brands?
Lecture 3: Marketing strategy is resource allocation
Reading notes
“Achieving the ideal brand portfolio” - Hill, Ettenson, Tyson
Lecture notes
What to change?
BCG Matrix
Brand renewal matrix
Vertical resource allocation
Elasticity
Share of voice
Lecture 4: Marketing strategy is determining an optimal position Pt.1
Reading notes
“What is strategy” Michael E. Porter
“Three questions you need to ask about your brand” - Keller
Lecture notes
Positioning strategy
Positioning statement tools
Tool 1: 3Cs model
Lecture 5: Marketing strategy is determining an optimal position Pt.2
Positioning statement tools
Tool 2: Three questions framework
Tool 3: Activity system
The coffee of Andradas case
Lecture 6: Marketing strategy is management of innovation
Reading notes
“Blue ocean strategy” Kim et. al.
Lecture notes
Push & pull strategies
Marketing and innovation
Market driven strategies
LG case
,Lecture 7: Marketing strategy is managing brands over time
Strategies for change
TomTom Case
Lecture 9: Renoon
Lecture 10: Course wrap-up
LECTURE 1 - Introduction to Marketing Strategy
Readings notes L1
“Reinventing Marketing to manage the environmental imperative” - Philip Kotler
With the growing recognition of finite resources and high environmental costs, marketers need to reexamine their theory and
practices.
Companies must balance their growth goals with the need to pursue sustainability.
Currently, we face several environmental challenges:
- A change in the composition of the atmosphere and of the climate
- A depletion of the ozone layer
- Soil degradation and increased desertification
- Increased air and water pollution
- A reduction in the availability of freshwater
- Increasing depletion of physical and natural resources
With regards to mkt, companies have operated on the assumption of an endless supply of resources and that production, distribution,
and consumption does not add to pollution, etc.
Assumptions of marketers in the past vs. sustainable principles:
Wants are natural and infinite, encouraging unlimited Wants are culturally influenced and strongly
consumption is good sharpened by mkt and other forces
The planet's resources are infinite The earth's resources are finite and fragile
The earth's carrying capacity for waste and pollution is infinite The earth's carrying capacity of waste is very limited
Quality of life and personal happiness increase with increased Quality of life and personal happiness do not always
consumption and want satisfaction increase with more consumption and want satisfaction
Companies that embrace sustainability need to make some basic changes in their production and mkt practices.
→ They need to explain how they would revise their goals and operations to pursue sustainability.
What mkt practices will have to change? consider the 4 Ps
Product: consider the materials, their resources, and their carbon footprint. Develop packaging more carefully and service firms could
demonstrate their environmental concerns
Price: Price offerings differ based on their environmental friendliness. Consider external costs
Place: Where the production and distribution facilities are located
Promotion: Communicate a commitment to sustainability, and transparency about ingredients
Why companies will need to change their mkt practices: The consumer Pressure
Marketers have viewed consumers as choosing brands on the basis of functional and emotional criteria. But now there is a 3rd
dimension: how the company meets its social responsibilities.
→ companies do not want to appear indifferent to large economic social and political concerns. WoM is a growing force in shaping
consumer decisions
,Will consumers be willing to buy offerings that are more environmentally friendly? Yes, if the price is the same. But there is also
evidence that some consumers will be willing to pay more.
The rise of demarketing and social marketing
Demarketing: the practice of demand reduction. It uses the same 4 Ps, but in a reversed way.
Combat overfishing, energy waste, overacting, and obesity.
→ mkt traditionally has been about demand expansion, however, there are times and resources that will demand conservation and
reduction.
Social marketing: the theory and practice of marketing an idea, cause, or behavior. It influences more positive awareness and behavior
through campaigns such as “stop smoking”.
→ this is not the same as “Promotion” in the 4 Ps, it requires full use of segmentation, targeting, and positioning and the 4 Ps to
influence positive behavior.
“Creating shared value” - Michale Porter
Companies are widely perceived to be prospering at the expense of the broader community. They remain trapped in an outdated
⚠️
approach to value creation.
The solution lies in the principle of shared value: creating economic value in a way that also creates value for society by
addressing its needs and challenges.
→ it focuses on the connections between societal and economic progress
Related concept: Externalities: they arise when firms create social costs that they do not have to bear such as pollution.
⚠️ What is shared value?
It can be defined as policies and operating practices that enhance the competitiveness of a company while
simultaneously advancing the economic and social conditions in the communities in which it operates.
→ competitiveness of a company and the health of the
communities around it are closely intertwined
Corporate social responsibility vs. Shared value
- CRS has emerged to improve firm’s reputations and
are treated as a necessary expense
- Shared value, recognizes that societal needs define the
markets.
→ It recognizes that social harms or weaknesses
frequently create internal costs for firms. →
Addressing societal harms does not raise costs for
firms, because they can innovate by using new
technologies, operating methods, and management
approaches and as a result, increase their productivity
and expand their markets.
CSR focuses mostly on reputation and has only a limited
connection to the business
CSV is integral to a company’s profitability and competitive
position. It leverages the resources and expertise of the
company to create economic value by creating social value
⚠️ How is shared value created?
1| Reconceiving products and markets
→ Creating new products and services for existing or new markets that better serve societal needs.
Companies can meet social needs while better serving existing markets, accessing new ones, or lowering costs through innovation.
2| Redefining productivity in the value chain
→ Firms may improve their own business processes through social or environmental innovations.
A company’s value chain affects and is affected by societal issues. Many of the externalities actually inflict internal costs of the firm.
The synergy between societal progress and the company’s productivity increases when a firm approaches societal issues from a shared
value perspective and invents new ways of operating to address them.
, There is growing consensus that major improvements in environmental performance can be achieved with better technology and can
even yield net cost savings
Ways in which shared value thinking is transforming the value chain:
- Energy use and logistics
- Resource use
- Procurement
- Distribution
- Employee productivity
- Location
3| Enabling local cluster development
→ Improving the local operating environment by supporting skill-development and capacity-building
Companies do not operate in isolation from their surroundings. To compete and thrive, for example, they need reliable local suppliers,
a functioning infrastructure of roads and telecommunications, access to talent, and an effective and predictable legal system.
A key aspect of cluster building is the formation of open and transparent markets. Enabling such an environment can allow a company
to secure reliable supplies and give suppliers better incentives for quality and efficiency. From this can result a positive cycle of
economic and societal development, which then results in the firm’s growth, which then results in new jobs, new companies seed and
demand for services.
→ The three avenues for creating shared value are mutually reinforcing:
Enhancing clusters will enable more local procurement and less dispersed supply chain.
New products and services that meet social needs or serve overlooked markets will acquire new value chain choices.
New value chain configurations will create demand for equipment and technology that save energy and support employees
Lecture 1 Notes
Definition and current marketing landscape
Often there is a misunderstanding that mkt is just tactics. Other times, mkt is seen as a cost.
MKT is a philosophy: it’s a way of looking at the firm and putting the customer central.
“Marketing is not only much broader than selling, it is not a specialized activity at all. It encompasses the entire business. It is the
whole business seen from the point of view of the final result, that is, from the customer’s point of view” - Peter Drucker
Marketing should be everywhere. Everyone who touches customers, should be marketing
In the past mkt was about products,s now it's about customers
Marketing: is the process of identifying and profitably satisfying customer’s wants and needs. It’s about capturing value and
delivering it to the consumers.
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.
If companies are bundles of processes designed to deliver customer value → marketing = strategy
Strategy = why you do things
Tactics= how you are going to do it (4Ps)
If you’re a CMO, your goal is sustainable profit growth
A successful company is the one that manages successfully the change in the environment
Knowing the market forces is important for successful change management
Market forces → 5 Cs:
- Customers
- Competitors
- Company
- Collaborators
- Context
Marketing = strategy
