Lecture 1:  Marketing definition  The difference between marketing and selling  Product
Push/Resource-based/customer-led marketing  Difference between data, information, knowledge,
insight, and strategy  Marketing Research definition  Suggesting strategies based on a perceptual map
Basic difference between selling/marketing
Selling, provide X regardless of need either you buy or not
Marketing, you have a need and I encourage you to buy from me
Marketing is a…
a. function
b. tactic
c. activity
d. strategy
e. department
f. mindset
g. orientation
h. concept
i. method
j. all of the above
Perceptual map- market gap or opportunity / competitor movement
Data (collection of facts, raw and unorganized and unclear stats- doesn’t give valuable info to make
decisions bc can’t see patterns and trends) vs information (puts facts into context, organized- can be
analyzed and used to make decisions- becomes valuable & usable information)
Knowledge (understanding/accumulation of facts and information through experience) vs insight (ability
to see beyond and understand something deeply/intuitively)
Marketing research- A systematic process of designing, gathering, analyzing and reporting data to
provide information/knowledge/insight for making a marketing decision. Ex- perceptual maps, location
analysis, instore/website traffic mapping, online behavior
Lecture 2: 
Dynamic Pricing= Setting prices based on real-time market demand and other data. Dynamic prices can
change by the hour, day or week.
Example:
• Travel and hospitality industry: Airlines, Hotels, ...Stadium seats, concerts, ...Uber
Service-Dominant Logic- From the exchange of tangible goods (manufactured things) and toward the
exchange intangibles, specialized skills and knowledge, and processes (doing things for and with) The
role of the customer: the customer is the creator of value and not a destroyer of it.
What could be a basis for dynamic pricing? Location, browsing history, time of day, device your using
3
core elements of service logic !!!
1.Intangible resources 2. Co-creation of value 3. Relationships
Lecture 3:  Five forces and ALL of their subcategories and examples.  Some examples:  Q: Figure
below shows the demand for product X from 2000 to 2018. How is the rivalry among existing
competitors? (you should find out the market growth, if it is high, rivalry is weak)  Calculating HHI from
a table or figure and concluding about concentration and rivalry  Market growth figure and conclusion
about rivalry  Product life cycle stages and concluding about rivalry  Perceptual map and concluding
about product differentiation and rivalry
5 FORCES Everything
1- Rivalry among existing competitors- Subsequences of high rivalry
• High levels of advertising spending • Price Wars • Continuous launch of new products, Hence it is very
difficult to compete/survive in high rivalry industries/markets.
2- Threat of New Entrants- barriers to entry
Determinants When the cost of entry is low: no big investment is needed. Example: • Internet-based
Businesses• Street Vendors• Real Estate• Many other services
3- Threat of substitute products
Existing technologies may become obsolete by the emergence of new innovations. • Examples: • Emails
replacing postal service. • Internet calls replacing regular calls.• Electronic cars replacing fuel cars.• Ereaders replacing textbooks.• When prices of substitute products decrease.
4- Bargaining power of suppliers- forward integration
Determinants • Number of suppliers• Size of suppliers• Uniqueness of supplier’s products or services
(differentiation)• Switching cost for supplier’s products• Supplier’s threat of forward integration (when
the supplier moves to manufacturing and logistics or sells directly to customer and skips the retialer)
5- Bargaining power of buyers- backward integration
Determinants• Information advantage• Low switching costs• Network effects• Size of each buyer’s
order• Price sensitivity• Buyer’s threat of backward integration (specially in B2B when the buyer of raw
material or parts starts building parts and raw materials).
HHI? Concentration? Rivalry? 3 qs
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The Herfindahl Index (HHI) ranges from 0 to 10000. • An HHI below 1500 indicates low concentration=
high rivalry • An HHI between 1500 to 2500 indicates moderate concentration = moderate rivalry. • An
HHI above 2500 indicates high concentration = low rivalry. • In a perfectly competitive market, HHI
approaches zero.
Market growth figure – growth around 2008? Rivalry?
Product life cycle figure- growth and decline stages? Characteristics of each stage pre-decline
Exit barriers where? Factor to force
Ex: Threat of new entrants- barrier to entry, threat of subs, bargaining power of suppliers/buyers etc…
10-12 Q’s
Lecture 4:  Four SPACE dimensions and all of their items.  I give you ratings on some items (I will not
say which item relates to which dimension), you should be able to calculate scores for each of four
dimensions, find the strategic posture and quadrant it is pointing to, and suggested strategies  I tell you
the quadrant and I ask about strategy  Market and innovation turbulence items, I describe a few items
and I ask about environment turbulence.  BCG Market Growth: I describe market share and market
growth either by data or figure and I ask you about the quadrant; If you know about the SPACE quadrant,
you can say what the firm can do with this market. For example, if the SPACE quadrant is defensive and
based on the BCG matrix the market is dogs, firm should leave the market.  Ansoff Matrix: I describe a
strategy and ask which quadrant it is referring to.  Vertical integration examples (backward/forward)
SPACE strategic position and action evaluation
ES, FS, IS, CA factors with ratings- KNOW WHAT DIMENSION signs +- tell u
• External:
1- Industry Strength (IS) +
2- Environmental Stability (ES) • Internal:
3- Competitive Advantage (CA) 4- Financial Strength (FS) +
EX: leverage +6 = FS
Demand variable -4 = ES
KNOW AVG
^^ ratings on a map- plot
What each quadrant should do= strategy?? DEFENSIVE Q - identify market share/growth, dog, cash cow?
1- Conservative- this is typical of companies in mature markets where the lack of need for investment
has generated financial surpluses= Defend existing products to ensure a continued cash flow. Buy more
time by trimming costs (e.g. cutting back on capacity). Then look outside the current market for
profitable opportunities, either building on existing resources and capabilities or diversifying into a new
area. If the industry looks attractive but the company has no significant competitive advantages. The
company should bring in more investments or identify niches where it does have advantages.
2- Defensive- Company is clearly vulnerable and has little strength to combat competition. Determine •
which product-markets you want to defend, • which you will allow to be taken from you without a
serious fight. • Compare the cost of reaction with the cost of inaction. • Retrieve from competitive
markets… What the company should do: Cash generation by • Cutting costs • Capacity reduction •
Efficient operations • Selling unnecessary inventory and equipment • Closing large sections of the
business which are draining profit or cash
3- Competitive- The company has a great competitive advantage in an attractive industry. But company’s
financial strength is insufficient to balance the environmental instability. Work on financial- What the
company should do: The key strategic imperative is to acquire financial strength to compensate for the
environmental instability. • The company can provide the funds by • Improving profitability by •
Reducing costs • Increasing prices if possible • Expand into new markets
4- Aggressive- Our financial strength can concur the environment instability AND our competitive
advantage is great compared with the overall industry strength. Aggressively grow your business !!
Continue to invest in innovation- back or forward integration
Back/forward integration, competitive advantageForward and backward integration
The extent of control of the supply of raw materials (backward integration) and distribution channels
(forward integration) can also affect the strength, or potential strength, of a company in serving a
specific target. Where integration is high, especially in markets where supplier and buyer power are high,
the firm could be in a much stronger position than its rivals.
Ansoff matrix- define each market- 4
Lecture 5  Advantage Matrix: Which quadrant I am referring to. What is the strategy?  I describe an
item and you should find out whether it is opportunity, threat, strength, or weakness.  I provide a SWOT
and ask about the right strategy.
1- Volume • The opportunities for differentiation remain low but firms can achieve economies of scale.
• Ability to compete highly depends on managing costs.
• The business is probably capital intensive.
• However, there is always the threat of an upcoming new
technology that may change the cost structure or the required
capital.
• Examples: • Telecom (Verizon, AT&T, T-Mobile, and Sprint) • Volume cars (e.g. Ford, Toyota, ...)
2- Fragmented • The company can differentiate its products but there is less potential to make profits
from scaling up. • The needs of the market are less well-defined; there are diverse needs, with several
ways to address them.
• So instead of producing 1 Million of the same product, it is better to provide smaller
portions with a higher variety to serve multiple customer segments.
• Sometimes even the true value of offering is not clear to customers; so you can
charge different prices for different customer segments. E.g. for services
• Examples: • Fine Dining (Is it better to increase the number of meals you prepare or differentiate the
quality of meal?) • Services (Legal, Real Estate, Hair Cut, Cleaning, Pet Care, ...)
3- Specialized • The company can benefit from both volume and differentiate. • Pursuing either of these
two courses would be a good strategy. • Through experience, the company becomes market leader in
one or more segments.
• Examples:
• Software (Microsoft, ...)
• Beauty (P&G, ...)
• Fashion (Nike, ...)
• Chain restaurants (McDonald,...)
ADVANTAGE MATRIX
4- Stalemate • Neither the opportunity for differentiation nor economies of scale • Commodity Markets
• Technologies are well known • Product designs are convergent • Similar sources of supply are used •
Consumers are well able to compare product with product. • Compete mainly on the basis of efficient
manufacturing and distribution: • Relocating business to geographic locations with low-cost labor is a
common strategy
• Examples:
• Furniture
• Office Supplies
• Hardware
• Textiles
Matrix- 4 markets and bold factor
Lecture 6 (All slides except the last 2):  Examples of resources  Whether a resource is VRIN or not, and
why?  Four types of marketing assets and their examples on slide 8  Definition of marketing capability
 Definition of dynamic capability, its three types and their examples  A given resource belongs to which
part of the resource portfolio and what the firm should do with it?
ORGANIZATIONAL RESOURCES
• Include both tangible and intangible assets, capabilities, and competences.
Examples
• The machinery used to produce products • Infrastructure • Raw materials • Cash, Capital, and
Investors • Employees • Experts • Managers • Brand • Firm reputation • Partnerships and alliances •
Data and information• Technological know-how• Technical Skills• Production Expertise• Knowledge•
Market Domination• Cost Advantages• Distribution System• Supplier Network• Customer Relationships
enable the provision of competitively superior value to customers (Value)
• Operational Excellence (e.g. Aldi, McDonald, KFC, etc.) Excellence in order fulfillment, supply chain
management, logistics, service delivery, and transaction processing
• Product Leadership (e.g. Intel, Nike, HP, etc.) Market sensing, openness to new ideas, fast product
development and launch, technology integration, and flexible manufacturing
• Customer Intimacy- Flexibility and customization, long-term relationships
• are rare or unique to the firm (Rarity)
• are resistant to duplication by competitors (Inimitability)
• are not easily replaced (Non-substitutable)
MARKETING CAPABILITIES
• The processes that are used to deploy assets effectively in the market place.
• Anything related to the implementation of marketing mix (4Ps)
DYNAMIC CAPABILITIES
• The capacity of an organization to purposefully create, extend, or modify its resource base.
Textbook questions…
Chapter 1: parts 1.1.2 MARKET ORIENTATION, ● customer orientation: understanding customers well
enough to create superior value for them; ● competitor orientation: awareness of the short-term and
long-term capabilities of competitors; ● interfunctional coordination: using all company resources,
working together, to create value for target customers; ● organisational culture: linking employee and
managerial behaviour to customer satisfaction; ● long-term creation of shareholder value: as the
overriding business objective
1.2 (full), ● Product push marketing. Under this approach, firms focus activities on existing products
and services, and look for ways to encourage or even persuade customers to buy. This is
a myopic interpretation of the resource-based view: we have a resource (our product or
service) that we are good at producing, and that is different from what competitors offer
● Customer-led marketing. The other extreme is customer-led marketing (Slater, 1998).
Under this approach, organisations chase their customers at all costs. The goal is to find
what customers want and, whatever it is, give it to them
● Resource-based marketing. In this text we advocate a middle ground between these two
extremes. Here, firms base marketing strategies on equal consideration of the requirements of the
market and their abilities to serve it. Under this approach, a long-term view
of customer requirements is taken in the context of other market considerations (such as
competitor offerings and strategies, and the realities of the supply chain
1.3 (full)
Chapter 2: part 2.3 (full) Establishing the core strategy -The core strategy is both a statement of the
company’s objectives and the broad strategies it will use to achieve them. To establish the core strategy
requires a detailed analysis of the resources available and the market in which the organisation will
operate, both within the context of achieving the overall business purpose or mission.
Chapter 3: parts 3.6 (full),
3.7 (full), 3.8 (full)
,
3.9 (full), 3.11 (full), 3.12 (full), 3.13 (full)
Chapter 5: part 5.2 (except 5.2.4)
Chapter 6: parts 6.1, first, for a competitor to imitate a successful marketing strategy it must be able to
identify the resources that have been dedicated to creating and implementing that strategy in the first.
place ● Second, should a competitor overcome the identification barrier, it would still need to acquire
the resources necessary for imitation of the strategy. Some resources, such as corporate culture or
market orientation, may take time to develop ● Third, most resources depreciate over time as
competitors are eventually likely to find ways of imitating successful strategies. This is especially true in
rapidly changing markets.
6.2, ● Operational excellence – providing middle-of-market products at the best price with the least
inconvenience ● Product leadership – offering products that push the boundaries of product and service
performance: ● Customer intimacy – delivering what specific customers want in cultivated relationships.
6.3, RESOURCE BASED VIEW the RBV suggests that high-performance strategy is dependent primarily on
historically developed resource endowments
6.4,
6.5, The processes and practices that deploy marketing assets are marketing capabilities. Marketing
capabilities are effectively implementation capabilities – the ability to implement marketing mix
activities, such as promotions, personal selling, public relations, price deals, special offers to customers,
packaging redesign and so on
6.6, dynamic marketing capabilities are the ability to create new marketing resources to identify, respond
to and exploit change. Ensuring evolutionary fit between market needs in a dynamic competitive
environment and market offers is the essence of effective strategic marketing.
6.7,
6.8,
Chapter 18: part 18.3 (full)


competitive positioning is about making choices that ensure a fit between chosen market
targets and the competencies and assets the firm can deploy to serve those chosen targets more
effectively than competitors.
positioning could be based on price , technical quality (or more correctly, grade), service ,
innovation , benefit differentiation or customisation .