Lecture 1

Marketing Process by which a business

creates value for its customers and for itself.

Value
For customer Benefits
For firm Revenue and Profit

Marketing strategy (WHY?) A set of plans to

help a firm achieve its objectives. Includes
Segmentation, Targeting, Positioning (STP)
and elements of marketing mix (Ps)
Traditional marketing mix
Product Good or service, or
combination that offers the customer value.
o Goods vs service Tangibility
o Terminology Features, Benefits, Brand
Place Location where buys and sellers meet to exchange
resources
o Terminology Goods, Services, Money, Info,
Knowledge, Skills
o Flow through places linked by distribution channels
(DC)
DC Sequence of business that moves products
from location of producers to locations of
customers
Channel functions Selling, promoting, support service, delivery
Promotion Process by which a firm
communicates info about the benefits of its
products to the customer
o Advertising Communication with customer
for which the company pays. Done through
broadcast media, TV, radio etc
o Public Relations Company does not pay.
Like press release. Other people pick on the
release and write their own reports
o Sales Promotion - Activity designed to
encourage customers to buy something
quickly.
o Personal Selling Apple does this
o Direct Marketing Communication from firm intended to reach the individual customer through various means.
Price Amount customer has to pay.
o Has to align with marketing strategy
o Considers STP, Product, People, Promotion, Place, Process, Physical
Evidence.
Lecture 2

Marketing a service

Service Act a company performs to help its customers

Core service Basic function a company performs
Customer service Extra help given by company to add value to
core service
Value added Service -
Service offered in every channel B-C, B-B
Services have 7 Ps in total

People In service business, employees and customers co-create value.

Responsibility for the customer having a good service experience is
shared by the employees of the service company and the customer.
TRUST

Process - Service is delivered in a series of interactions between

customers and service providers

Physical Evidence - The features of the servicescape convey information to the customer about the quality of the
service. Refers to the attractiveness and usability of the servicescape. The servicescape is the venue in which a service is
offered to the customer. It can be a producers showroom, trade show exhibit, retail store, and website.

Lecture 3

Segmentation, Targeting, Positioning (STP)

Segmentation - A strategy by which a company divides

its market into groups of potential customers with
similar characteristics, needs, and behaviors. Different
segments might exhibit different channel behavior

Variables used to segment customer market

- Variables used to segment business market

How to segment the market

1) State value proposition
2) Divide market into groups to which you might
sell the product
3) Find demographic/psychographic/behavioral
variables that are likely to discriminate between/among
groups
4) Develop profiles to help understand each
segment

Targeting Evaluating the attractiveness of a segment and choosing the segment to offer the product to most
profitably.

Positioning A strategy that offers and communicates a unique benefit to customers in the target market
To position the product effectively
Focus on benefits that are
Important to target customers, Brand is excelling in that, Hard to copy, Easy to explain to customers ,
Aligned with needs to customers

How do firms monitor position in the market -

Perceptual map - Shows how consumers rate the most important benefits of a product (Scale is 1-10)

Lecture 4

Customer experience This is the customers perception of the quality of process of searching for, evaluating, buying
and using the service. This is perceptual

Service experience and its drivers -

Theres a set of external factors and a set of internal

factors that affect how consumers perceive the experience
of buying and using your product.

External factors are situational. These are contextual

factors, such as marketing mix. The marketing mix of
competitors. And cultural forces.

Internal factors personal characteristics of an individual

individual differences. There are a lot of personal factors
that influence how customers evaluate products. Egs -
Need to conform, zone of tolerance, price sensitivity, and emotion and
mood.

Stage 1

Customer becomes aware of need of new product -> Does search and uses
personal and impersonal sources -> Evaluates the alternatives -> Purchases
the product

Stage 2
How the customer perceives the process of
using the product and service. The customer
then evaluates the usage experience

Stage 3
Post purchase evaluation Perceived quality,
satisfaction, loyalty.

The customers perception that a product has

benefits that are unique and superior to the
benefits offered by its competitors.
The diagonal line shows how companies can strategically increase their pricing power by transforming their products
from commodities to experiences.

Commodity - Basic product

Good - A good is a tangible product thats been differentiated by branding or finding a new category
Service - If we wish to bump up our pricing power a bit more, we need to differentiate by adding unique services.
Experience - We maximize our pricing power by ensuring that the entire process of using our product is a unique
experience. That usually means finding ways to quote unquote engage our customers.

Factors
Customer Characteristics - Conformity, price sensitivity, mood and emotion (short and long term goal)

Situational Factors
1) Culture Set of attitudes, norms, beliefs, which are characteristic of group of people.
Dimensions

In B-B markets, most complicated and expensive buying is made by Buying Center

Types of buying decisions

Straight rebuy: replace what youve got -- a no-brainer

Modified rebuy: replace what youve got with incremental improvements
New buy: purchase a product for first time

Lecture 5

Market Research Process of collecting and analyzing data to learn about the customers in the target market.

Classic market research methods Collecting primary

data

New stuff in market research

Text analytics - Procedures for evaluating the content of

word-based data that we collect from interviews and from what people post on the web.
Eye Tracking - Computer-driven procedure for tracing the movement of a customers gaze as he or she looks at
something.
Used in evaluating advertising and in evaluating websites for ease of use. When a customer finds part of an ad or a part
of a website to be difficult to understand, the size of his or her pupil changes. So the eye tracker processes the size of an
individuals pupil as that person looks at an image. It identifies what part of an image is difficult for someone to process,
so the designer can modify it to make it easier to understand or use.
Neuromarketing research Uses MRI to measure brain activity, emotions leads to higher purchase probability
Data Mining - An algorithmic-based approach to analyzing large quantities of data collected on customer behavior. The
goal is to identify variables that are correlated with each other, or unexpected types of behavior.

Lecture 6

Conjoint analysis Designing and pricing new services

An experimental technique used to design and price new product

How it works:
o Set of new product profiles is presented to the customers which are developed from an experimental
design and describe the product in terms of its attributes
What it shows: The tradeoff customers are willing to make among the attributes
Differences in the relative importance of attributes and difference in importance of the attributes

Stages
1. Define product concept
2. Identify relevant attributes and levels: interview customers or users
3. Choose experimental design
4. Design product profiles
5. Administer experiment - subjects rate profiles, which reflect their preferences
6. Analyze, interpret results

Product Strategy

Product Line Group of related products offered by a firm

Product Portfolio All products offered by the firm, it creates value for customers by offering variety.
Branding image Set of psychological associations clients have with the companys brand

Brand Architecture The way a brand portfolio is organized and communicated to the target customer
Types
Branded house (corporate)
Investment in branding is at corporate level
Strategic advantages: Clear communication of corporate brand and ability to leverage to sub-brands
Sub-branding
Corporate brand is leveraged by linking it to individual products
House of brands (individual product branding)
Allows tight product positioning
Consistent with the trend to fewer, larger brands
Hybrid branding
Firm uses both branded house and house of brands
Ingredient branding A branded product includes a branded component

Brand Leveraging Using the power of

the brand to help a company enter a
new market or product category

Rebranding Firm adopts a new name

and logo in order to create a new brand
image or identity
Co-branding 2 or more firms market a
product together

Lecture 7

Product Innovation

Innovation New product that the

customer perceives to be novel,
matter of degree, can occur in good
or service, any of the 7 Ps. Firms
must maintain a continuous stream
of innovative products to grow and
stay profitable

3 Types Breakthrough,
incremental, disruptive

Disruptive New product that

replaces an existing product and
eventually damages or makes the
existing product obsolete