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Week 1: What is Marketing Reading: Principles and Practice of Marketing (David Jobber and Fiona Ellis-Chadwick) Week Date Lecture Staff 1 4th October Module Outline What is Marketing? 2 11th October Strategic Marketing Laura Chapter 1 Chamberlain & Iman Ahmadi Iman Ahmadi Chapter 18,...

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Week 1: What is Marketing Reading: Principles and Practice of Marketing (David Jobber and Fiona Ellis-Chadwick) Week

Date

Lecture

Staff

1

4 th October

Module Outline What is Marketing?

2

11 th October

Strategic Marketing

Laura Chapter 1 Chamberlain & Iman Ahmadi Iman Ahmadi Chapter 18, 19 & 22

3

18 th October

Marketing Environment

Iman Ahmadi

Chapter 2

4

25 th October

Segmentation Targeting and Positioning

Iman Ahmadi

Chapter 7

5

1 st November L’Oréal Guest Lecture

Iman Ahmadi

Chapter 5

6

8 th November Marketing Mix 1: Product

Iman Ahmadi

Chapter 20

7

15 th November 22 nd November 29 th November 6 th December

Marketing Mix 2: Place

Iman Ahmadi

Chapter 17

Marketing Mix 3: Price

Iman Ahmadi

Chapter 12

Marketing Mix 4: Promotion

Iman Ahmadi

Chapters 13,14,15

Market Research

Iman Ahmadi

Chapter 6

8 9 10

Reading

Week

Date

Lecture

Staff

Reading

15

10th January

Services Marketing

Laura Chamberlain

Chapter 9

16

17th January

Buyer Behaviour

Laura Chamberlain

Chapter 3 & 4

17

24 th January

Laura Chamberlain

Chapter 10

18

31 st January

Customer Experience Branding

Laura Chamberlain

Chapter 8

19

7 th February

Digital Disruption

Laura Chamberlain

Chapter 16

20

14 th February

Laura Chamberlain

Chapter 11

21

21 st February

Marketing Innovations Reading Week

22

28 th February

Social Marketing

Laura Chamberlain

23

7 th March

Laura Chamberlain

24

14 th March

International Marketing Key Challenges and Revision

 Study: Week 1, 2, 6, 7, 18, 19, 20

Laura Chamberlain

Chapter 21

What is Marketing? An extended model of the Marketing Process STAGE1: Understanding marketplaces & customers

Introducing Marketing

STAGE2: Developing marketing strategy

Segmenting, Targeting, & Positioning

STAGE3: Developing programmes to deliver value

Marketing Mix Decisions

STAGE4: Building relationships through delight

OUTPUTS: Capturing value from customers

Relationships and Journeys

Strategic Marketing

Marketing Environment

Buyer Behaviour

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Four distinct stages in the marketing process that create outputs

Why care about Marketing?  Marketing is the business function that is primarily concerned about growth  Without growth, businesses die  Everything in marketing is ultimately concerned with building growth – and the by-products of growth, which may be profit or customer satisfaction or doing good in the world  We talk about customers too because they’re the engine of growth in this context Another reason to care...  Marketing moves the firm from caring only about profit to caring about delivering value o Why is this an important shift? Because the delivery of value means you are more likely to grow: don’t just care about getting people’s money, but you’re thinking about your customers’ needs and relationship with your customers and how you can have a longterm set of interactions with customers  Too many firms focus on financials as an end in itself  Marketing forces us to remember what value we are creating. Challenge to get it right Marketing is complex because it is simultaneously: 1. Organisational culture - Basically an organisational level customer orientation o Idea of being market oriented and having this philosophy about being value driven rather than profit driven is a psychological construct, developed and manifest in the form of a culture of an organisation 2. Strategy - Developing effective responses to a changing market environment. Segmentation, NPD/NSD, competitive positioning

What are the current trends? How do you segment your customers? How do you think about New Product/Service Development (NPD/NSD) 3. Tactics - Aims to achieve the goals of strategy in the shorter term. Day-to-day activities of product management, pricing, distribution, AC&P. Development of detailed marketing plans o What do you actually do to achieve the goals? Can be things around how you manage your product portfolio, your distribution channel o

Defining Marketing (KEY WORDS)  (DON’T PUT DEFINITION OF MARKETING IN ESSAY)  Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably.  An organizational function and set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. o Value is not necessarily attached to the product itself, it can be something deeply personal to the consumer o E.g. online grocery shopping: superior customer service, convenience, trust  A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. (there are plenty of these type of definitions….) o Exchange is between customers & the company: doesn’t have to be just product for money.  3 Key components: ‘customers’, ‘needs/wants’, and ‘exchanges’ Marketing as a business function  Marketing Management is the analysis, planning, implementation and control of plans designed to create, build, maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives.  Marketing Management = process  Marketing = philosophy The marketing management framework

Core principles  You have to look out into the market to understand what’s going on in terms of your consumers, your competitors, your company’s position in the market, etc.  Conduct market opportunity analysis to figure out who we want out target market to be -> underpinning all of this is the data  Understanding how all these things fit together is fundamental to marketing Understanding the Marketplace

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Need to understand the markets and customers’ needs, wants and demands -> to create the marketing offers (products, services and experiences) -> which create value and satisfaction through exchanges which is about transactions and relationships -> which helps to grow the market

Customers, Consumers, Clients  What is a customer? o Somebody you (a business) have an exchange with  What is a consumer? o Can be anybody  Professionals don’t have customers? (clients) In my view, these distinctions are generally distractions  Everyone has a ‘buyer’, call them what you like. Needs, Wants and Demands What is a need?  A human state of “felt deprivation”

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Maslow’s hierarchy of needs o Theory is that we have very basic physiological needs (e.g. hunger and thirst) and this overtakes everything else (we need to fulfil this need) o If your basic needs have been fulfilled then you can move up and address needs further up the pyramid Being critical about Maslow’s hierarchy of needs: as you go higher up the pyramid, do you really need to address social needs before esteem needs before cognitive needs? o There are products that are now specifically developed to position towards different sets of needs o You might position your offering of a product like a car towards safety needs and communicate that fulfilment of that need which creates value to your customers through your marketing communication, e.g. Volvo o But if you want to position a car towards someone’s aesthetic or self-actualisation needs, you would be positioning and promoting that product in terms of how flashy/cool it is o Point: you CAN target different needs and it’s not depending on this type of hierarchy o Also, different people value different needs E.g. Millennials value social needs the most

What is a “want”?  A want is the form a human need takes as shaped by society, culture and individual differences (or preferences). E.g. you need food, but want a burger.  But different people in different societies express the same need with different wants o This is where culture differences around food are quite prevalent Demands  Wants become demands when backed with buying power.  Given wants and resources, people demand products with benefits that add up to the most value and thus satisfaction Does marketing actually create needs or does it create wants?  If our needs (what we consider to be our basic needs) change, our wants change and become more complex which means our demands as consumers become even more complex Is satisfying customer needs easy? How would you know your customers’ needs?  Sometimes customers don’t yet know what they need -> we need to innovate e.g. Smartphones Imagine yourself being the marketing director of RENOVA a Portuguese toilet paper brand…What would you do to differentiate from other toilet paper brands and private labels?  Black toilet paper: A huge hit because it was unusual and different (innovation)  But what’s the problem? o Competitors can very easily imitate, not unique from competitors, not sustainable in the long term o Creating buzz around the brand and being the first mover in the space and the fact that people know the brand is good and important o But that means I have to keep innovating and capitalize on the buzz to do something different that my competitors will find hard to imitate

Question: How can marketing shape…

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Demands? Wants? Can marketing even shape needs?

Products  Products are anything that can be offered to a market to satisfy a need or want. o Products ≠ Physical Goods and services o Companies can still suffer from ‘Marketing myopia’  'Marketing myopia' is a term coined by Theodore Levitt. A business suffers from marketing myopia when a company views marketing strictly from the standpoint of selling a specific product rather than from the standpoint of fulfilling customer needs.

Value and Satisfaction  What do people buy? Not ‘products’, but ‘value’  Value – estimate of capacities to satisfy total needs/wants  Value – solving a problem the customer has  This is a way in which companies are starting to innovate Customer Value

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Customer value = Offset between perceived benefits and perceived sacrifice (cost)

The Exchange Process

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Meeting customer needs, wants and demands and offering them something that they value but also receiving something that you value in return

Mutually beneficial exchanges

Evolution of the Marketing Concept

The Production Concept  Consumers will favour products that are available and affordable  Managers of production oriented organisations concentrate on achieving high productions efficiency and wide distribution coverage The Product Concept  Moving away from just making stuff and distributing it to focusing on the product itself  Consumers will favour products that offer the most quality, performance or innovative features.  Managers in product orientated organisations focus their energy on making superior products and improving them over time Product and production orientation

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Both of these concepts focused on your capabilities as an organisation around production: creating the most amount or best type of product, how you create that product and then pushing it out to consumers

The Selling Concept  Consumers will not buy enough without large scale selling and promotion effort

Selling Orientation

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Creating the products and services, having some kind of sales and promotion around it and then pushing it out to customers

The Marketing Concept  The achievement of corporate goals through meeting and exceeding customer needs and expectations better than the competition Market Orientation

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What is different about the marketing concept? o It puts customers at the beginning and end of the process o We start with thinking about our customer needs, wants and demands, looking at potential market opportunities where we can best deliver and market our products and services to our customers o Point: customers are integral to the whole process rather than just being something we push products out to

The “Marketing Concept”  It is evolving with many different definitions  Commonly accepted that: o Marketing is a process that is performed within an organisation o Involves using the integrated marketing mix to create exchanges

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These exchanges should satisfy individual and organisational objectives The marketing department may not always manage this process  Some truly market-oriented organisations believe that this is everybody’s responsibility

Key Components of the marketing concept

The Marketing Planning Process

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In order to achieve this, we create marketing plans All about how we develop strategic objectives which are based on our understanding of our customers and what they need/want and also what is happening in the world and in the market How we can develop competitive advantage

The scope of marketing  Marketing is not just about selling stuff  Customer orientation is really important  Huge rise in consumer ideology and consumerism

Week 2: Strategic Marketing Definition of Strategy  “if you ask someone to define strategy, you will likely be told that it is a plan or something equivalent – a direction, a guide, a course of action into the future, a path to get from here to there” Mintzberg (1994)  “Strategy is the matching of the activities of an organisation to the environment in which it operates and to its own resources and capabilities” Johnson and Scholes (1988) o Not just about getting from point A to point B  Strategy is the “broad formula for how a business is going to compete, what its goals should be, and what policies will be needed to carry out those goals” Porter (1980) o Competitors in environment  Important Note: Sometimes ‘strategy’ and ‘planning’ are used interchangeably… Aims of Marketing Planning Marketing planning aims to address three basic questions:  What is the business doing now?  What is happening in the environment? o Macro environment: how the economy is doing, politics, environment – global warming, CO2 emissions, technological innovations o Micro environment: customers – age range, lifestyle, suppliers & distributors, competitors  What should the business be doing? But the future is key  Future needs of customers  Future competitive behaviours  How to SUSTAIN competitive advantage Why Plan? (Benefits of Planning)  Helps managers to think, be analytical and consider implications of actions o The value is generally in the act/process more than in the document itself  Value of marketing planning to firms o Be clearer about the business the firm is in and/or should be in o Increase awareness of STRENGTHS and WEAKNESSES o Be able to recognise and capitalise on OPPORTUNITIES and defend against THREATS o More effective allocation and use of organisational resources The Benefits of Planning 1. Co-ordination 2. Identifies developments 3. Increases preparedness for change o When you know what are the threats in the future you prepare yourself in advance 4. Minimises irrational responses 5. Reduces conflict 6. Improves communication 7. Forces systematic approach 8. Matches resources with opportunities 9. Provides a framework for review 10. Performance implications

In other words…  Strategy leads to enhanced performance  But is it just about ANY strategy? Increasing sales, etc. o It has to fit between the marketing strategy, the organisational resources you have at the moment, and the market needs & conditions Strategic Fit

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It has to be a realistic strategy You need the organisational resources: technology, money

A Conventional View of the Strategic Market Planning Process (FIRST ONE)

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Corporate or Business-Unit Strategy: marketing strategy, evaluation and control, implementation process, marketing plan for goals and objectives Is this in line with the idea that customers and their needs/satisfactions is at the centre of the organisation? Probably now You don’t have a feedback loop -> don’t renew or update your strategy

A Conventional View of the Strategic Market Planning Process (SECOND ONE)

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What is wrong with this? What is missing? o Customer focus: it’s not clear where it is o Not about going from point A to B: the environment is constantly changing -> there is no feedback loop. You have to update your strategy

Types of Planning  Annual plans (short-term plans) o 1 year, e.g. budget allocation  Long-range plans (medium-term plans) o 2-4 years, e.g. expanding to emerging markets  Strategic plans (long-term plans) o Constantly update in terms of keeping the fit between your strategy and constantly changing environment o E.g. oil and gas company, need to keep in consideration new trends: electric/hybrid cars, global warming Cautions to watch for:  S.P.O.T.S o Strategic Plan On The Shelf o Downside of strategic plans: you do it once and you put it on the shelf  Strategic Inertia o Some companies have resistance in terms of changing themselves Example: Inertia: Nokia v Apple.

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Nokia was resistant to change -> Stuck with Symbian, and a focus on high build quality when consumer wants shifted as the market developed Lost more than 45% of market share from 2007 to 2010

Contents of a Typical Marketing Plan  Executive summary  Marketing objectives – Where do we want to go?  Product/market background – Where are we now?  Marketing analysis – Where are we now?  Marketing Strategies – How do we get there?  Statement of expected sales/results – What does a good strategy look like?  Marketing programmes for implementation – What are we going to do?  Control and evaluation processes – How do we know we did it?  Financial implications – How much will it cost and how much will we make?  Operational considerations – What do we need to worry about?  Appendices The Mission Statement – What is the purpose of the firm? Fundamental questions:  What business are we in? (Scope of the firm)  What business do we want to be in? (in the future) E.g. Sony: Entertainment or movies? Virgin Railways: Railways or transport? Successful strategy formulation depends on knowing the purpose of the firm  Affects the firm’s strategic direction (from the top)  Examples o IKEA in home furnishings NOT a furniture store o Stena Line in the travel service industry NOT a ferry company o Sony in entertainment NOT electronics o IBM in company efficiency NOT computers o Parker in gifts NOT pens o Gucci and Dunhill in status enhancement

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Mission statement should include: distinctive competence of company, what are you going to fulfil, who are you going to serve and how? Something for the next few years

What’s a ‘Vision’? Hard to answer clearly.  I guess, kind of a broad sort of guiding philosop...