Week 1
 2 purposes in marketing: create new customers by promising superior value, retain
existing customers by maintaining customer satisfaction at a profit
E.g. Coca-Cola promises that the coke purchased around the world has its consistent taste
Needs  where marketing starts (give rise to wants)
1) physical needs
2) social needs - need for belonging and affection
3) individual needs - self-expression etc.
Wants  shaped by upbringing
Demands (if you can pay for wants, it creates demands)

Marketers should not overly-focus on improving product features, but on customer’s
needs

Exchange v.s. Transactions
- Transaction is a marketing metrics  how many exchanges has taken place?
- We are moving away from this notion as it is one-off, does not focus on customer r/s

Marketing is tougher as companies now needs to maintain r/s with all stakeholders, not
just customers

Market consists of potential + actual buyer that has the need, resources & willingness to
exchange (market = people, industry= sellers)

Modern marketing: who has the better marketing system that comes up on top, not who
is the better company

Demarketing – e.g. Hospital, government organization, non-profit (1. For profit
companies, it is hard to find examples 2. Companies that limit the supply of their
products are not doing demarketing, but increase demand)
Government wants to decrease demand for crowded roads using high COE prices

Companies can have multiple marketing management philosophies
Production concept: Henry Ford mass producing car when demand > supply at that time,
Gillette mass producing disposable razors
Product concept: Nokia & Motorola only focus on improving product features, but failed
miserably so know what your customers want; must have a balance btw customerdriven v.s. customer driving  then create product
Selling concept: Insurance companies has no choice but to hard-sell their products as
nobody wakes up to think that they would be sick/die in the future

Companies are recommended not to green-wash just for the sake of it as research has
shown that companies will be more profitable in the long-run if they integrate social
cause into its business model
Example: SIA
To converts barnacles to true friends, do membership e.g. sign on students to retain
them as loyal customers when they become older
Week 2:

Weather channel revenue was dropping so the CEO evaluated their resources. They
found the r/s between weather and shampoo and worked with Procter and Gambler
which skyrocketed their sales. The CEO became in charge of a consulting company 
Use formal plans to think ahead systemically

NIKE engineers have to work with marketers to create NIKE air which is a gimmick to
show that the shoes give runners a boost Use of formal plan to better coordinate
company efforts

Business requires different marketing objectives for different business units

For Dog, under BCG matrix: can divest SBU - sell off business unit if you have the right
buyer

Limitations of BCG matrix:
1)
2)
3)
4)
5)
6)
7)
Show current situation, does not predict future
Hard to classify SBU because of subjectivity and error
Scope is different for each industry
Not easy to define SBU (Costly to gain these information)
High market share does not mean profitability
2 dimensional, does not consider other variables
May cause manager to make rash decision like entering an industry with high market
growth rate, does not mean that your company has the capability to compete in it
Product/expansion grid

Starbucks do not tap into the lucrative segment of pursuing children because Starbucks
is known for its collaborative space for meetings etc. (backfire)  Market development

Starbucks sells its cup coffee and ice cream in NTUC to reach out to other market
segment Product Development
Week 2.1
 Segment marketing v.s. Niche marketing is the same conceptually, but differs in number
of competitors and size of stratification

Don’t just target age group, think about their psychic. E.g. Makeup brands don’t
specifically target their products towards teenagers  want to be mature and buy
brands that has an adult image (Those who target solely teenagers has failed)

Don’t just target Asian race: Koreans are more collective than Japanese, not all Asians
are the same

How would you segment electric vehicles?
In the past, it was positioned as a novelty and green product. However, with the growing
customer size saying they are green, they can try to target different segment out there
Week 3
Why are customer expectations increasing?
 Standard of living has increased
 Internet connection, low-cost & efficient services
 People get richer
 Products more complex, need more services
Product-Service Continuum
External – Products (Tangible), Service (Intangible)
Internal – Experiences  Differentiating (memorable)
Product positioning
Companies spent a lot of money on what their brands stand for, communicate brand image
Major branding decisions
Licensed brand  can increase cash flow, but too much of it can distill brand image
Product Support services
E.g. Hyundai penetrated the Canadian market by proving 24/7, 365 support service. Sending
their engineers by helicopter to signal to customers that they fulfil their brand promise
Week 4

Branding is the foundation of marketing strategy (inseparable)