Marketing Management (MKT600)

Anna Zarkada BSc (AUEB), MSc (UMIST), PhD (QUT)

Assistant ProfessorDepartment of Business Administration

Athens University of Economics and Businessemail: azarkada@aueb.gr

MM BB AA

Learning Objectives - IKnowledge and Understanding

concepts, paradigms and processes of marketing

strategic marketing theories, models and concepts

organisation-wide nature of marketing strategic marketing planning process and

techniques in the context of globalisation information technology.

trends

Learning Objectives - IICognitive and Intellectual skills

Think criticallyGather, analyse and utilize research and marketing

informationPractical/Professional Skills

Research, interpret and evaluate current marketing theories and apply in an organisational setting

Be aware of the importance of marketing in creating customer and shareholder value

Be aware of how exogenous factors influence marketing strategy

Key Transferable SkillsOperate effectively when critically evaluating knowledge

and applying it to marketing issuesDemonstrate the ability to influence key decision-makersApply marketing theory in an organisational setting

Methods for achieving objectivesindividual responsibilitiesstudy of theory examination of business practiceparticipation in learning tasks

group processesexchange of opinionssharing of experiences

necessary attitudescreativitycuriositywillingness to communicate

Course perspective: student-centred, self-directed learning Your role My role

Adult Adult

learnerlearner thorough preparation

applying critical and creative thinking

working consistently

Facilitator Facilitator

for meetingpersonal andcareer development

objectives advisorbasic content providergatekeeper

course flexibilitythe profession

Key QuestionsWhy is marketing important?

What is the scope of marketing?

What are some fundamental marketing concepts?

How is marketing management changing?

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 1-8

Structure of Flows in a Modern Exchange Economy

Exchange is the focusExchange is the focus

Exchanges are carried out by business firms, and also by non business organisations and even individuals.

Four conditions must exist for an exchange to be able to occur: Two or more people or organisations

must be involved The parties must be involved voluntarily Each party must have something of

value to exchange, and the parties must believe they will each benefit from the exchange

The parties must communicate with each other

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 1-10

A Simple Marketing System

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 1-11

Marketing is an • organizational function and• a 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.

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 1-12

Marketing management is theart and science • of choosing target markets and

• getting, • keeping, and • growing

• customers through• creating, • delivering, and • communicatingsuperior customer value.

14

the PRODUCT conceptA set of basic real (tangible) and symbolic (intangible) attributes assembled in an

which can be• offered• obtained and• consumed in order to satisfy wants or/and needs• object

• service

• place

• person

• idea

• size

• price

• appearance

• performance ...

formidentifiabl

e

15

the PRODUCT concept20142004

What is Marketed?GoodsGoods

ServicesServices

Events & ExperiencesEvents & Experiences

PersonsPersons

Places & PropertiesPlaces & Properties

OrganizationsOrganizations

InformationInformation

IdeasIdeas

the BRAND concept

Interbrand Top 10 brands 2012Product – Service continuum

1.1. Coca-ColaCoca-Cola 2.2. Apple (Apple (+129%)

3.3. IBMIBM 4.4. GoogleGoogle 

5.5. MicrosoftMicrosoft 6.6. GEGE 

7.7. McDonald'sMcDonald's 8.8. Intel Intel 9.9. Samsung Samsung 10.10.ToyotaToyota 

tangibletangible intangibleintangible

Brand

A name and/or a mark intended to identify the product of one seller or group of sellers and differentiate it from competing products• a brand name

&/or• a brandmark&/or• a trademark

A set of tangible and intangible attributes

A means of want satisfaction

A set of tangible and intangible attributes

A means of want satisfaction

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 1-20

I want it, I need it…Five Types of Needs

1.Stated needs“I want an inexpensive car”

2.Real needs‘It’s not only the price, I want low running costs as well’

3.Unstated needshe’s polite, he listens to me, I trust himI trust him

4.Delight needshe’s giving me the GPS for free!!!!he’s giving me the GPS for free!!!!

5.Secret needswait till my neighbors see this car!

NonexistentTV

LatentEBR/tablet

Declining7 videonet

Irregular30+ sunscreen

Fullmoisturizer

UnwholesomeRothmans

OverfullDSL

NegativeBP

23

the mousetrap

Fridges to the Eskimos

production

selling

Marketing

Customer Relationship Marketing &

Corporate Social Responsibility

SERVICE DOMINANT SERVICE DOMINANT LOGICLOGIC

Personal branding

Lovemarks

Brand communities

Luxury brands

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 1-25

HolisticHolistic Marketing Dimensions

based on 2009 Pearson Education, Inc.  Publishing as Prentice Hall 1-26

The marketplace isn’t what it used to be…

ConvergenceConvergence

Information technology

Information technology

GlobalizationGlobalization

DeregulationDeregulation

PrivatizationPrivatization

CompetitionCompetition

Consumer resistanceConsumer resistance

Retail transformation

Retail transformation

21st Century 4Ρs

Personalization = Amazon.com Participation = Nike ID /

prosumerism-MLMPeer-to-PeerPredictive modeling = CRM /big

data / data visualization / qualitative data visualization

Qualitative data visualization

FB comments on IKEA UK page - horse meat scandal

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 2-30

Three V’s Approach to MarketingDefine the value segment

- WHODefine the value segment

- WHO

Define the value proposition - WHAT

Define the value proposition - WHAT

Define the value network – WHERE, HOW

Define the value network – WHERE, HOW

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 2-31

A Holistic Marketing Framework

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 2-32

Levels of a Marketing PlanStrategic

Target marketing decisionsValue propositionAnalysis of marketing

opportunities

TacticalProduct

featuresPromotionMerchandisingPricingSales channelsService

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 2-33

The Business Unit Strategic Planning Process

SpecificMeasurableActionableRealisticTimed

Ansoff matrixPorter’s generic strategies

information

Product

Price

Promotion

Place

People

Processes

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 2-34

Ansoff’s Product-Market Expansion Grid

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 2-35

Porter’s Generic Strategies

Overall Cost Leadership

Differentiation

Focus

Examples of organizational strategies

Based on competitive advantage Cost leadership Differentiation

Based on value disciplines – you cannot be all things to you cannot be all things to all people, hence you must find the unique value that you alone can all people, hence you must find the unique value that you alone can deliver to a given marketdeliver to a given market

operational excellence – low price and/or hassle free low price and/or hassle free serviceservice

product leadership customer intimacy

to be discussed in class next time we meet

internet exercise visit the corporate web-sites look for the mission statement look for claims of

strengths (investors section) and distinctive competencies (customer sections)

link them to product lines business units

IBMCISCO

MICROSOFT