Marketing - Summary and Lecture
Notes
Introduction
Aims
Understand what marketing is about – breadth rather than depth
Learn how to write a marketing plan
Mandatory Course Materials
Exam questions (midterm and final exam, MC) will be based on the following materials:
Book
o A Framework for Marketing Management, Global Edition, 6th Edition, Philip
Kotler, Kevin Lane Keller; ©2016|Pearson, 352 pages,
o Print ISBN-13: 9781292093147
o eText ISBN: 9781292093154
Note: we do not cover the entire book during the lectures – self study!
o Lecture slides are no substitute for the book, but complementary
Selected articles/webinars: mandatory articles/webinars will be posted under weekly
‘Lecture’ materials (marked as ‘mandatory for the exam’) -> contents will be addressed
in quizzes/ Feedback lectures
Lecture slides: also mandatory information for the exam. Note: the slides may address
additional materials not covered in the book.
MIDTERM Chapter 1-8, 9 (p.170-179)
Misconception 1: Value is always created and captured by business
Misconception 2: Marketing always ends with the sale of products and services
Systems thinking >>
1
,Lecture week 1 – Introduction to Marketing Management
Chapter 1 – Scope of Marketing for New Realities
What is marketing and why is marketing important?
What are some core marketing concepts?
What forces are defining the new marketing realities?
Which Marketing philosophies guide companies’ orientations toward the marketplace?
What is the ‘Marketing mix’/ 4 P’s?
Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and
society at large.
What Is Marketing?
Marketing is about identifying and meeting human and social needs. One of the shortest good
definitions of marketing is “meeting needs profitably.”
What Is Marketed?
Marketers market 10 main types of entities: goods, services, events, experiences, persons,
places, properties, organizations, information, and ideas.
Who Markets?
A marketer is someone who seeks a response—attention, a purchase, a vote, a donation—from
another party, called the prospect. If two parties are seeking to sell something to each other,
we call them both marketers.
What Is a Market?
Traditionally, a “market” was a physical place where buyers and sellers gathered to buy and sell
goods. Economists describe a market as a collection of buyers and sellers who transact over a
particular product or product class (such as the housing market or the grain market). Marketers
use the term market to describe customer groups.
A Simple Marketing System
Core Marketing Concepts
Needs, Wants, and Demands
Needs are the basic human requirements such as for air, food, water, clothing, and shelter.
Humans also have strong needs for recreation, education, and entertainment. These needs be-
2
,come wants when directed to specific objects that might satisfy the need. Demands are wants
for specific products backed by an ability to pay.
We can distinguish five types of needs:
1. Stated needs (The customer wants an inexpensive car.)
2. Real needs (The customer wants a car whose operating cost, not initial price, is low.)
3. Unstated needs (The customer expects good service from the dealer.)
4. Delight needs (The customer would like the dealer to include an onboard GPS system.)
5. Secret needs (The customer wants friends to see him or her as a savvy consumer.)
Responding only to the stated need may shortchange the customer.
Target Markets, Positioning and Segmentation
Marketers identify distinct segments of buyers by identifying demographic, psychographic, and
behavioral differences between them. They then decide which segment(s) present the greatest
opportunities. For each of these target markets, the firm develops a market offering that it
positions in target buyers’ minds as delivering some key benefit(s).
Offerings and Brands
Companies address customer needs by putting forth a value proposition, a set of benefits that
satisfy those needs. The intangible value proposition is made physical by an offering, which can
be a combination of products, services, information, and experiences. A brand is an offering
from a known source.
All companies strive to build a brand image with strong, favorable, and unique brand
associations.
Marketing Channels
To reach a target market, the marketer uses three kinds of marketing channels.
Communication channels deliver and receive messages from target buyers and include
newspapers, magazines, radio, television, mail, telephone, smart phone, billboards,
posters, and the Internet.
Distribution channels help display, sell, or deliver the physical product or service(s) to
the buyer or user. These channels may be direct via the Internet, mail, or mobile phone
or telephone or indirect with distributors, wholesalers, retailers, and agents as
intermediaries.
Paid, Owned, and Earned Media
We can group communication options for interacting with customers into three categories.
Paid media include TV, magazine and display ads, paid search, and sponsorships, all of
which allow marketers to show their ad or brand for a fee.
Owned media are communication channels marketers actually own, like a company or
brand brochure, Web site, blog, Facebook page, or Twitter account.
Earned media are streams in which consumers, the press, or other outsiders voluntarily
communicate something about the brand via word of mouth, buzz, or viral marketing
methods.
3
, Impressions and Engagement
Impressions, which occur when consumers view a communication, are a useful metric for
tracking the scope or breadth of a communication’s reach that can also be compared across all
communication types. The downside is that impressions don’t provide any insight into the
results of viewing the communication. Engagement is the extent of a customer’s attention and
active involvement with a communication, which is more likely to create value for the firm.
Value and Satisfaction
The buyer chooses the offerings he or she perceives to deliver the most value, the sum of the
tangible and intangible benefits and costs. Value, a central marketing concept, is primarily a
combination of quality, service, and price, called the customer value triad. Value perceptions
increase with quality and service but decrease with price.
Satisfaction reflects a person’s judgment of a product’s perceived performance in relationship
to expectations.
Supply Chain
The supply chain is a longer channel stretching from raw materials to components to finished
products carried to final buyers.
Competition
Competition includes all the actual and potential rival offerings and substitutes a buyer might
consider.
Marketing Environment
The marketing environment consists of the task environment and the broad environment.
The task environment includes the actors engaged in producing, distributing, and
promoting the offering.
The broad environment consists of six components: demographic environment,
economic environment, social-cultural environment, natural environment, technological
environment, and political-legal environment.
New Marketing Realities
The marketplace is dramatically different from even 10 years ago, with new marketing
behaviors, opportunities, and challenges emerging.
Technology
The pace of change and the scale of technological achievement can be staggering. With the
rapid rise of e-commerce, the mobile Internet, and Web penetration in emerging markets, the
Boston Consulting Group believes brand marketers must enhance their “digital balance sheets.”
Massive amounts of information and data about almost everything is now available to
consumers and marketers.
Even traditional marketing activities are profoundly affected by technology.
4
