Marketing Management - BT1203
Week 1 2
Marketing strategy - An Overview 2
Marketing Myopia 15
Strategic Insight in Three Circles 21
Marketing Management Session 1 Introduction: 22
Lecture week 1: Marketing Management 22
Week 2 29
The Coherence Premium 29
Are you ignoring trends that could shake up your business? 32
Strategies to fight low-cost rivals 35
Branding in the digital age 39
Lecture week 2: Marketing Management. Consumer Behavior & Market Analysis 42
Week 3 51
A Note on Consumer Market Segmentation 51
Segmenting the base of the pyramid 55
Rediscovering market segmentation 58
Customer Value Proposition in Business Markets 62
Lecture week 3: Marketing Management. Segmentation & Targeting. 66
Week 4 74
Analyzing consumer perceptions 74
How to stop consumers from fixating on price 80
Pricing to create shared value 83
Lecture week 4: Marketing Management. Positioning & Product. 86
Week 5 94
Principles of product policy 94
Strategic brand valuation 98
Strategic channel design 104
The future of shopping 108
Lecture week 5: Marketing Management. Place & Price. 112
The Starbury 118
Week 6 119
Guest lecture on growth hacking: Thomas Stoffer from RockBoost 119
Week 7 123
The one thing you must get right when building a brand 123
For mobile devices, think apps, not ads 125
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, Consumer neuroscience 127
Lecture week 7: Promotion and Consumer Neuroscience. 130
Week 1
Reading 1:
Harvard Business School. (1999). Marketing Strategy - An overview.
Marketing strategy - An Overview
Article Concept Definition
1 (Business A plan of action designed to achieve certain defined objectives.
unit) ➢ Different strategies for various levels → altogether the plan for the entire
strategy enterprise:
○ Organization - corporate
○ Divisional
○ Business unit
○ Departmental
➢ Should support the business’s marketing mission
1 Corporate The sum of business unit strategies + plans for new business initiatives
strategy
1 Objective ➢ Something that defines what the aim is
➢ Defining objectives → Gives purpose and direction for strategies
➢ Should correspond with the business’s core competencies & resource limits
Ex.: sales volume, rate of growth, profit percentages, market share, ROI (Return on
Investment), etc.
1 Marketing ➢ The center of a business plan
strategy ➢ Should correspond with the business’s core competencies & resource limits
1 Businesses ➢ Deliver products and services to markets → efficiency → growth & profit
Elements of Marketing strategy
A marketing strategy consists of interrelated elements → different for various sorts of businesses:
(The first 4 are primary)
1. Product/market selection: What markets? What product lines?
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, 2. Price: What prices? Relative to other products? Quantity discounts? Payment plans? Rental
options? Needed price promotions?
3. Distribution systems: The wholesale and retail channels, inc.:
a. The companies’ salesforce
b. Independent distributors
c. Agents
d. Franchised outlets
4. Market communication:
a. Print & television advertising
b. Direct mail
c. Trade shows
d. Point-of-sale merchandise displays
e. Sampling
f. Telemarketing
5. Product service programs: When products need repair and maintenance. Inc. repair
shops, service personnel & spare parts inventories.
6. Technical service: Support customers’ manufacturing & product development operations
7. Plant location:
a. Defines geographic market boundaries.
b. Ex. because of:
i. Limited distance shipping
ii. Product is customized to customer’s specifications (customer close to
supplier)
iii. Bulk-to-value products
8. Brand strategy: Ex. consumer goods companies choose between using:
a. A family brand name
b. Product specific name
The marketing mix: The combination of several factors and the relative emphasis on each in a
marketing program. Varies depending on stages of market growth, between markets or within the
same market.
Product/Market Selection:
Decide which market which product will serve → customer groups, technology fields, specific
competitive environment.
Product (meaning): The total package of attributes/benefits the customer obtains when making a
purchase.
Inc. Benefits, risks, disadvantages for the buyer, pleasure of shopping experience
Ex. What the product does, convenience, status etc.
Buyers’ opinion and value he/she places versus competitors counts for the strategic planning:
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, 1. Perceived value: Customer’s existing perception of the product.
2. Potential value: Market communications → Future perception of the product (can be
educated).
Market: A pocket of latent demand.
What can lead to new market opportunities (new markets or market expansion)?
1. New technologies
2. Population growth
3. Increasing personal or national income
4. Societal needs
5. Shifts in culture
Market segmentation:
Market segment: A set of potential customers that are alike in the way they perceive and value the
product, in their buying behavior, and in the way they use the product.
a. Constantly revisit segment delineation & look for market opportunities
b. Develop strategies for each segment (using a segmentation scheme)
Market growth/maturation → market segmentation scheme changes → elaborate structures.
1. Educated consumers → increasing demand & new competitors.
2. New product forms & new distribution channels
Segments throughout various dimensions:
1. Demography: Defines differences in taste, buying behavior and consumption patterns. →
use different comm. strategies for different buyers
Ex. Family income, age, sex, ethnicity, educational background
Ex. Industrial markets: size enterprise, nature, type of industry
2. Geography: Frameworks used in consumer & industrial markets. Globalization, improved
communication & transportation → greater commonality → declined importance geo.
segmentation.
Different places → different…
a. Market potential
b. Competitive intensity
c. Product-form preferences
d. Government trade regulations
e. Economical shipping distance (see plant location)
3. Psychographic variables: Segment markets according to individual lifestyles and attitudes
toward self, work, home, family and peer-group identity. In industrial sectors: corporate
culture is the comparable segmentation variable (ex. Taking risks).
Ex. Different generations: seniors, baby-boomer, teenager → different product wants
Ex. Different ethnic origin
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