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What is Marketing?

A customer focus that is geared towards making value promises, enabling fulfillment of expectations due to these promises --> value creation in firm, customers and stakeholders
ideally result should be product that sells itself


What is Marketing not?

Advertising & Selling


Why is Marketing important?

Shaping products and services
Building strong brands
Identifying target groups
Buying a product means more than becoming the owner of a tangible item. often added with services -> service dominant logic


What is Marketing's Role in the market?

needs: basic human requirements
wants: directed towards objects that satisfy needs
demands: wants for products with ability to pay


What is a Marketplace?

Physical (eg Store)


What is a Marketspace?

Digital (eg Internet)


What is a Metamarket?

complentary products (eg car market and financing)


What are Metamediaries?

Bring together collections and people (autotrader.com)


What are Marketing realities and challenges?

- major societal forces (economic, technological, industrial)
- changing consumption patterns


How have consumption patterns and consumers changed?

- consumer sophistication
- hybrid consumption behavior (income does not predict well what people will buy)
- importance of health and sustainablity
- local (vs global) values
- aging consumers


What is the Marketing philosophy?

consumer centered
goal is to be ore effective than competitors in understanding target group needs


What is the marketing mix and what are its dimensions?

Holistic approach
Product/service, Price, Promotion, Place, Physical evidence, Process, People


What is marketing management?

Goal directed process:
Increase organization wide commitment to put customer first
often includes external suppliers


What steps does the Value-Delivering Process have (Kotler)?

Discovering value
Developing suitable customer offering
Delivering value
Communicating value


What are planning activities on corporate level?

Mission statement
Vision statement
Defining business
Assigning resources to business units
Assessing growth opportunities


What should a mission statement answer?

What is our business?
Who are our customers?
What is the value to our customers?
What will our business be?
What should our business be?


How to define a companies' business?

Product definition to Market definition
(companies should take marketing perspective)

eg BP selling fuels -> delivering energy


What are strategic business units?

Sub-units of a business that can be managed independently
Each business unit has own set of competitors
Own Manager is responsible for each BU


What are the four categories of the BCG Growth-Market Share Matrix?

High growth + low market share = Question Marks
Low Market Growth + Low Market Share = Dogs
High Market Growth + High Market Share = Stars
Low Market Growth + High Market Share = Cash Cows


Assessing Growth Opportunities through Ansoff's Product-market expansion grid, what strategies can be taken and when?

current market + current products = market penetration
current market + new product = product development
new market + current product = market development
new market + new product = diversification


What is essential when developing BU strategy?

Goal formulation (BU are managed by objectives)

Objectives mus be arranged hierachically, quantified, realistic, consistent


What generic strategies does Porter propose?

Differentiation (focus on quality)
Cost leadership (focus on cost)

work in both broad and narrow market scopes


BU: Program formulation & implementation, what are the 7 S?

Strategy, Systems, Structure
Skills, Style, Staff, Shared values


What are the contents of a marketing plan?

Executive summary and table of contents
introduction of company
situation analysis
marketing strategy
marketing-mix instruments
financial projections
implementation control


What is customer-perceived value?

Difference between total customer benefit minus Total customer cost and perceived alternatives


What is customer satisfaction?

Perception of actual outcome minus pre-purchase expectations


Why is customer satisfaction important?

Satisfied customers are more loyal, promote, pay more


What is customer loyalty?

Deeply held commitment to re-buy/re-patronize a preferred product in future despite influences having the potential to cause switching behavior


What is the relation of customer-perceived value, customer satisfaction and customer loyalty?

benefits and costs -> perceived value -> satisfaction -> loyalty


What types of factors foster customer loyalty?

psychological (personal attachment)
situational (closeness to home)
technical/functional (ecosystem or compatibility)
economic (high switching costs)