Lecture 1 Marketing Overview 2017-8 PDF

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Marketing Management Veronica Mak Sau Wa CUHK Business School BBA Programs 2017/8 Part I: Introduction CUHK Business School BBA Programs 2017/8 2 Importance of Marketing Any business enterprise has only two basic functions: marketing and innovation Peter Drucker, The Practice of Management (1954) CU...

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Marketing Management Veronica Mak Sau Wa

CUHK Business School

BBA Programs

2017/8

Part I: Introduction

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Instructor:   

Veronica MAK, Sau Wa: [email protected] PhD (CUHK) Working Experience: 4A Advertising Agency (account director for clients such as HSBC, ESPN, Heineken, etc.), Marketing Director/ Consultant

TA - CHEN, Haojun : [email protected]

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Importance of Marketing Any business enterprise has only two basic functions:

marketing and innovation Peter Drucker, The Practice of Management (1954)

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What is marketing? 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. (AMA approved July 2013)

Societal Marketing company should make marketing decisions by considering consumers' wants, the company's requirements, and society's long-term interests.

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Case: Pokemon Go

Marketing is more than advertising, but includes Product, Price Place Promotion (> advertising)

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The Goal of Marketing The Goal of Marketing is to establish market value for the company by creating customer value To achieve this goal, company has to determine the needs and wants of customers and deliver the desired benefits more effectively and efficiently than competitors.

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Customer-Centric Marketing – To Create Value to Customers

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Course Objectives and Structure

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What you will learn What to do A.Frameworks to develop and evaluate marketing strategy. - Analysis (Company, Competitors, Customers, Context, Collaborators: 5Cs) - Segmenting, Targeting, Positioning (STP)

B.Analytical tools Value of customers (CLV) Value of products (EVC)

How to do it A.Developing marketing programs (Product, Place, Price, Promotion: 4Ps) B.Strategy implementation

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Why it will help you Marketers —gateway course, basic intro to marketing Entrepreneurs —framework for identifying and exploiting market opportunities Consultants —strategic framework and tools to facilitate firm decisionmaking Financiers —where cash comes from, alternative approaches to valuation CUHK Business School

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Class Logistics In-class requirements • • •

Name tents, stable seating Effective participation (In-class and Online) No laptops or wireless devices

Course requirements • • • • •

One individual Homework assignment In-class group presentation In-class thought papers Two exams Co-Production Class Participation

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Part II: Marketing Process

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Schematic of Marketing Process

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Situation Analysis 1.Using 3 C’s analysis (Customers, Company and Competitors) to assess the situation

2.Summing all up in a SWOT Analysis

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3C’s Analysis 1. The Customer -

What needs do we seek to satisfy?

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Customer Needs, Wants, and Demands Needs • States of felt deprivation • Physical needs - Food, clothing, warmth, and safety • Social needs - Belonging and affection • Individual needs - Knowledge and self-expression

Wants • Form taken by human needs when shaped by culture and individual personality

Demands • Human wants that are backed by buying power CUHK Business School

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Needs, Wants Vs Demand Maslow’s Hierarchy of Needs

I need food. I want McDonald. The market demand fast food chain. .

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Discussion Question Discuss what kinds of needs the following products can satisfy?

Mobile Pho e (Samsung Vs iPhone)

Sho s

Medicine for flu and co d (Fortune vs Panadol)

Cosmetic products

Why the Winners Win? The 3 Cs Analysis

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3C’s Analysis 2. The Company -

What fundamentally does the company do and how it makes money?

Competitive Advantage Analysis - Does the company has an advantage over competitors gained by offering consumers greater value than competitors offer. - Three Values Disciplines based on different Competitive strategies

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Company2.1 Competitive Strategies Basic Competitive Strategies: Value Disciplines

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Product Leadership Case: Hohner Harmonica Hohner has successfully implemented a focus strategy to capture an 85% share of the harmonica market. CUHK Business School

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Customer Intimacy Cases: L.L. Bean, MerckMedco and British Airways practices customer intimacy

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A Master of Two: Operational excellence + Customer Intimacy - Case: Southwest Airlines

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Key Takeaways Value Discipline and Company Competitiveness Best performing company share similar characteristics: 1) Re-define value 2) Built powerful systems to deliver more of that value than competitors 3) Boost the expected value beyond competitors’ capacity.

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Key Takeaways Marketing, which includes innovation, is the most basic function of any business enterprise

The societal marketing is essential for all modern markets to make business success in long run. A Company must develop a competitive advantage through its competitive strategies and create value to customers.

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Further Readings Michael Treacy and Fred Wiersema. 1993. Customer Intimacy and Other Value Disciplines. Harvard Business Review. https://hbr.org/1993/01/customer-intimacy-and-othervalue-disciplines

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