MARKETING MANAGEMENTLECTURE 1
Dr. Ruby Zhang
Lecture 1 Learning Objectives
• Understand the lecture plan, contents and assessment methods
• Understand the definition of marketing and the key concepts in
marketing
• Capture the marketing planning process
SECTION 1: COURSE OVERVIEW
Course materials
• Jobber, D.; Ellis-Chadwick, F. 2019. Principles and Practice of Marketing, McGrawHill.
• Kotler, P., Armstrong, G. and Opresnik, M.O.,2021. Principles of Marketing, Global
edition, Pearson.
• Chaffey, D. and Ellis-Chadwick, F., 2019. Digital marketing. Pearson UK.
• Szmigin, I. and Piacentini, M., 2018. Consumer behaviour. Oxford University Press.
• Beverland,2021. Brand Management: Co-creating meaningful brands. Sage.
• Aaker, David A., 2010. Building Strong Brands, Simon & Schuster, Limited.
• Additional reading will be provided for each lecture.
4
Lecture plan
• Session 1: Key Concepts in Marketing and Marketing planning
• Session 2: Market Segmentation, Targeting, Positioning; Competition
• Session 3: Value proposition
• Session 4: Buying Behaviour in B2C & B2B
• Session 5: Integrated Marketing Communications
• Session 6: Price and Distribution
Lecture plan
• Session 7: Brands and branding
• Session 8: Brand equity, brand Value and CBBE
• Session 9: Building brand, brand architecture
• Session 10: Ethics in brand
• Session 11: Digital marketing and social media
• Session 12: Omni-channel and big data
• Session 13: Neuromarketing
• Session 14: eCRM
Assessment methods
Individual
assignment
40%
Exam
(individual)
60%
7
Exam
• Format: A mixture of MCQs (multiple choice questions) and essay questions
• Time: 2 hours
• Revision session in week 8
8
Individual Assignment
•
•
•
•
•
Individual assignment with a word limit of 2000 words. You are required to:
Select a marketing campaign that was launched in 2019 or afterwards
Apply relevant concepts, models and theories learned in this module
Analyse the underlying objectives of the campaign
Discuss the key elements in the campaign (including target, positioning,
competition, communication, etc)
• Assess the effectiveness of the campaign against the objectives
• Propose how the campaign can be further improved.
Class Participation & Discussion
You will receive one case study on Monday by the end of
the lecture. Please form a group of 5 students and work
together on the case. You are expected to have an in-class
discussion on Thursday, led by one group each time. The
group in chair is advised to prepare a brief presentation of
the case and the answers.
In-class discussion and presentation will not be
graded.
SECTION 2: KEY CONCEPTS IN
MARKETING
What is marketing?
• Marketing is the process by which companies engage customers, build
strong customer relationships and create customer value in order to
capture value from customers in return.
• Marketing is an organisational function, a business philosophy, a set of
processes and activities for delivering the desired and long term
customer value better than competitors in a way that benefit
organisation (and society).
“The aim of marketing is to make selling unnecessary”, Peter Drucker
12
Marketing
vs.
Selling
• Pull vs. push
• Stimulate demand vs. promote
Marketing
Sales
Greater long-term satisfaction
of customer needs
Rather short-term satisfaction of customer needs; part
of the value delivery process as opposed to designing
and development of customer value process
Greater input into customer
design of offering (cocreation)
Lesser input into customer design of offering
High focus on stimulation of
demand
Low focus on stimulation of demand; more focused on
meeting existing demand
Adopted from Baines et al. (2017)
14
What is marketing management?
• Marketing management is the art and science of choosing target markets and
building profitable relationships with them.
• Customer management
• The aim is to engage, keep and grow target customers by creating, delivering and
communicating superior customer value.
15
The five marketing management concepts
• There are five marketing management orientations under which the company
design and carry out their marketing strategies:
production concept
product concept
marketing concept
selling concept
societal marketing concept
Market vs production orientation
• Market orientation focuses on customer needs (but is “needs” a good word…?).
• Production orientation focuses on production capabilities.
Many sellers make the mistake of paying more attention to the specific
products they offer than to the benefits and experiences produced by
these products. It is called Marketing Myopia. T. Levitt Harvard Business
Review 1960
17
Societal marketing
Society
(human welfare)
Societal
marketing
concept
Consumers
(want satisfaction)
Company
(profits)
18
The Five Core Marketplace Concepts
• Needs, wants and demands
• Market offerings (products, services and experiences)
• Value and satisfaction
• Exchange and relationships
• Markets
Customer
vs.
Consumer
Consumer vs customer
• Consumer – a person who buys and/or uses goods and/or services for personal
consumption.
• Customer – individuals and companies that purchase and pay for a good and/or
service.
Are they always the same person?
21
Customer needs, wants and demands
• Needs – states of felt deprivation. Not (necessarily) created by marketing
• Wants – the form human needs take as they are shaped by culture and individual
• Demands – human wants that are backed by buying power
22
Customer value
Customer value = perceived benefits – perceived sacrifice.
Product
benefits
Service
benefits
Perceived
benefits
Relationa
l benefits
Monetary
costs
Customer
value
Image
benefits
Time
costs
Perceived
sacrifice
Energy
costs
Psychological costs
23
Customer satisfaction
• A person’s judgement of a product/service’s perceived performance in relation to
expectations.
• Satisfied customers- returning customer, loyalty, positive WoM
• Dissatisfied customers-exit, switch to competitors and disparage the product to
others.
24
Exchange
• Exchange is the act of obtaining a desired object from someone
by offering something in return.
• The marketer tries to bring about a response to some market
offering. The response may be more than simply buying or
trading products and services.
Markets
• A market is the set of actual and potential buyers of a product or service. These
buyers share a particular need or want that can be satisfied through exchange
relationships.
Market
vs.
Marketing
SECTION 3: MARKETING
PLANNING
What is marketing planning?
• Marketing planning is systematic process, which involves assessing the market and
environment and matching it with company’s capabilities in order to identify
opportunities, determining marketing objectives and designing a marketing plan to
achieve those objectives through planned application of marketing resources.
• Marketing plan needs to be both strategic and tactical.
• Marketing planning can be applied to the entire organisation, although is more
likely to apply only to a specific brand or product.
• Whilst the ultimate goal of marketing planning is to achieve company’s goals, it is
becoming increasingly important to consider larger societal goals and make a
positive contribution.
29
The process of marketing planning
Business
Mission
Marketing
Audit
Redefinition
Marketing
Objectives
Core strategy
Strategic level
Marketing
Mix
Implementa
tion
How will we do it?
Evaluation
How are we
doing?
Tactical level
30
Business mission
• The business mission is a company’s way of answering the question:
why do we exist?
what is the underlying motivation for being in business in the first
place?
Business
Mission
Marketing
Audit
Marketing
Objectives
Marketing
Mix
Implementat
ion
Evaluation
31
Business mission examples
Organisation
Mission
Apple
Bringing the best user experience to its customers through its innovative hardware,
software, and services
Google
To organize the world’s information and make it universally accessible and useful
Facebook
To give people the power to build community and bring the world closer together
Microsoft
To empower every person and every organisation on the planet to achieve more
Disney
To entertain, inform and inspire people around the globe through the power of
unparalleled storytelling, reflecting the iconic brands, creative minds and innovative
technologies that make ours the world’s premier entertainment company
Zoom
Make video communications frictionless
HBS
To educate leaders who make a difference in the world
Tesco
To be the champion for customers, helping them to enjoy a better quality of life and
an easier way of living.
Whole Foods
Our purpose is to nourish people and the planet. We’re a purpose-driven company
that aims to set the standards of excellence for food retailers. Quality is a state of
mind at Whole Foods Market
Weleda
Unfold health and beauty in harmony with human and nature
32
Marketing audit
• The marketing audit is a systematic examination of a business’s marketing
environment, objectives, strategies and activities, with a view to identifying key
strategic issues, problem areas and opportunities.
• The marketing audit provides the basis for developing a plan of action to improve
marketing performance, should be done regularly and provide answers to the
questions:
‘Where are we now?’,
‘How did we get here?’
‘Where are we heading?’
Business
Mission
Marketing
Audit
Marketing
Objectives
Marketing
Mix
Implementat
ion
Evaluation
33
Marketing audit
• Internal marketing audit
• External marketing audit
Business
Mission
Marketing
Audit
Marketing
Objectives
and Strategy
Marketing
Mix/Progra
mme
Implementat
ion
Evaluation
34
Internal marketing audit
• Internal marketing audit is essentially examination of anything to do with
marketing that is important to the company’s capability to operate
successfully and the data would generally would be available from within
the company.
• Internal marketing audit will include auditing the following:
Operating results
Strategic issues
Marketing mix (4Ps or 7Ps)
Marketing structures
Marketing systems
35
The Marketing
Environment
External
marketing
audit
• Consider two facets:
Microenvironment
Macroenvironment-PESTLE
• SWOT
Company
Microenvironment:
Customers
Competitors
Publics
Distributors
Suppliers
Macroenvironment:
Political
Economic
Social
Technological
Environmental
Legislative
SWOT analysis
• SWOT -strengths, weaknesses, opportunities and threats.
• It provides a simplistic and easy to use method of synthesising
the results of market overview and marketing audit
Strengths
(internal)
Weaknesses
(internal)
Opportunities
(external)
Threats (external)
37
ACTIVITY-15MINS
Prepare a SWOT analysis for Ryanair.
*If you are not familiar with Ryanair,
please choose a brand that you like.
Marketing objectives
• Two types of marketing objectives:
Strategic objectives
Tactical objectives
Business
Mission
Marketing
Audit
Marketing
Objectives
Marketing
Mix/Progra
mme
Implementat
ion
Evaluation
39
Growth Strategy-Ansoff matrix
Markets
Market
penetration
Market development
Product development
Diversification
Products
Existing
New
New
Existing
40
Boston Consultancy Group matrix
High
Build
Question mark
Divest?
Harvest/Divest
Hold
Low
Market growth rate
Star
Cash Cow
High
Relative market share
Dog
Low
41
Core strategy
• The core marketing strategy focuses on how objectives can be accomplished.
• There are three key elements to consider: target markets, competitor targets and
establishing a competitive advantage.
Business
Mission
Marketing
Audit
Marketing
Objectives
Marketing
Mix
Implementat
ion
Evaluation
Two key questions:
1. Which customers to serve (through
segmentation and targeting) and
2. How to create value for them
(through differentiation and
positioning)
42
Marketing mix
• The marketing mix is a set of marketing elements that a company uses to address
its target market. It is common to refer to those as 4Ps or 7Ps. It can be a separate
document on its own, or incorporated into marketing plan.
Business
Mission
Marketing
Audit
Marketing
Objectives
Marketing
Mix
Implementat
ion
Evaluation
43
Product
vs.
Service
Product-4Ps
Service-7Ps
Implementation
• Actioning marketing plan to accomplish marketing objectives
Business
Mission
Marketing
Audit
Marketing
Objectives
Marketing
Mix
Implementat
ion
Evaluation
47
Evaluation
• Evaluation involves assessing results of marketing strategies and plans and taking
necessary actions to ensure that the marketing objectives are achieved.
Business
Mission
Marketing
Audit
Marketing
Objectives
Marketing
Mix
Marketing evaluation involves the following
steps:
1. Measuring performance against KPIs.
2. Evaluating the causes.
3. Taking corrective actions.
Implementat
ion
Evaluation
Two levels of
evaluation:
1. Operating
2. Strategic
48
Case study: Pegasus Airlines: delighting a
new type of travelling customer
Questions:
• 1. Give examples of the needs, wants and demands that Pegasus customers
demonstrate, differentiating these three concepts. What are the
implications of each for Pegasus’practices?
• 2. Describe in detail all the facets of Pegasus’ product. What is being
exchanged in a Pegasus transaction?
• 3. Which of the five marketing management concepts best applies to
Pegasus?
• 4. What value does Pegasus create for its customers?
• 5. Is Pegasus likely to continue being successful in building customer
relationships? Why or why not?
Please work on the case and prepare for the in-class discussion on Thursday.
Textbook and References
• Chapters 1 and 2 in Kotler, P., Armstrong, G. and Opresnik, M.O.,2021. Principles of
Marketing, Global edition, Pearson.
• Chapter 2 and 14 in Jobber, D.; Ellis-Chadwick, F. 2019. Principles and Practice of
Marketing, McGraw-Hill.