NOTES FROM THE TEXTBOOK :
Session 1 : chapter 1, chapter 2 p.52-53
Chap 1:
Marketing definition : “The activity, set of institutions, and
processes for creating, communicating,
delivering, and exchanging offerings that
have value for customers, clients, partners,
and society at large.” (AMA 2013)
Value and social responsibility are gaining importance
It is easier and cheaper to keep a customer than create a new one
Production orientation: focus on efficiency, quality, efficacy
Product orientation : making the best product implies financial success, if there isn’t a need to
begin with, there is no sale to do.
Sales orientation: all you need is good sales communication and strategy
Marketing orientation: satisfy customer while keeping company’s goal in mind, represents shift
from seller’s market (shortage or products) to buyer’s market (abundance of products)
Any business practices 2 basic activities: producing and selling
It is the role of the marketing function to identify the appropriate customers, and discover what
product these customers want
Concepts that underlie the marketing function:
o Needs and desires: marketers don’t seek to create needs but to understand them and make
an offer to satisfy them. A need is a state of lacking something, a want is how you fulfill a
need. A want is transformed into demand, so businesses have to be aware of the changes
in customers.
o Demand: in constant dollars or current dollar (no inflation considered or consider
inflation). Company demand and market demand: company demand is the expression of
the transactions carried out to purchase from a specific company, market demand is the
sum of individual company demands. A company’s market share refers to their share of
the market demand. The different types of demand: actual demand (actual sales or
business volume at a point in time), potential demand (maximum level of demand that a
product can reach in a given context) demand projection (we can project potential
demand, when actual demand and potential demand are equal, the market has reached
saturation level)
o The market and its components: a market is made up of customer units that may represent
a whole population or just a part of it. There are 5 markets: the consumer goods markets
(all the individuals who purchase goods or products to meet their personal needs, we
value advertising, promotion and merchandizing ), the business market (organizations
that buy products and services in order to use them to market other goods, we value price,
product, after-sale services), the distribution intermediaries market (individuals and
organizations situated between the producer and the customer, buys product with the
intention of reselling it, we value location), the government market ( when the
government is the main customer of a business), the international market (encouraging
exportation)
o Exchange: the concept of exchange rests on 4 elements: the customer’s needs, the
satisfaction of need, a relationship between the business and the customer, the
optimization (not maximization) of business profits), an exchange is usually concluded
with a transaction, the customer relationship is important and we upgrade it with
customer service which satisfies them and builds loyalty, the customer lifetime value is
the sum of all present values of profits that can be made on a customer over its lifetime.
The result of the exchange process is that the more satisfied the customer is, the more
loyal he will be, the notion of value is important because the customer wants to come out
winner of the exchange, quality is also important, satisfaction makes clients more
profitable, loyalty includes customer retention and customer share
Understanding the integrated marketing model: marketing is central in the relationship between a
business and the market, creativity, innovation, marketing strategy, marketing mix
The internal marketing management process: strategies should be consistent with the company’s
mission and take into account the resources. Four main elements: analysis, planning,
implementation, control. First analyze market situation, then objectives, then resources,
determinizing the objectives that are compatible with current situation, look for strategies, must
know the variable that could affect our market.
The future of marketing: the development of trade (other things than price matter) , the effect of
globalized competition (wider market for customer, more competition for companies), the
consequences of technical advancements (doesn’t affect all sectors the same way, improved
communication, distribution (online sales))
Chap 2: p.52-53
Ethics in marketing: consumers care more and more about a business’s ethics, security, fraud,
environment, diversity are things to watch nowadays.
Session 2: chapter 2 p.31-32 and 41-50
How marketing contributes to a company’s mission: synergy must be present between
contributive units, including marketing, finance, and administrative, and they all work towards
the same objective. The marketing function must be linked to the company’s mission. The
marketing objectives are based on the mission, marketing planning should be considered in the
company’s overall plan.
41-50:
Marketing planning:
Question the marketers ask themselves for each step:
o
o
o
o
o
o
o
Situation analysis (where are we and where are we going?)
Objectives (where do we want to go?)
Resources (what efforts should we invest in this?)
Marketing strategy (how do we want to get there?)
Marketing mix (how do we want to get there?)
Execution (what do we know?)
Control (how do we know if we’re going in the right direction?)
The marketing planning process: planning must be rigorous and not neglect crucial elements,
it is based on past, present and future, can be made on long or short term.
The marketing plan: may be vast in the company or restricted to a particular sector, feature 3
general elements: an analysis, a set of strategies and an action program: situation analysis,
setting objectives, establish resources, marketing strategy, marketing mix, execution, control.
o Situation analysis: where we are, where we’re going if we don’t change, must analyze
the market (have consumers changed, have our segment changed, has demand
changed, has distribution changed), the competition and the business environment
(analyze the pestel). Analyze the SWOT.
o Setting marketing objectives: SMART objectives, where we want to go
o Resource allocation: achieving objectives requires financial outlays and mobilization
of human and technical resources, what efforts we want to invest, depending on what
is available, objectives and strategies might change.
o Defining the marketing strategy: overall includes segmentation, targeting, positioning
and differentiation.
o Deciding on the marketing mix: having decided the direction to get we now wonder
how to get there so we use the 4 Ps: product, price, place and promotion, as well as
set the appropriate level of customer service.
o Execution: defining operational elements that would help attaining objectives, the
resources are mobilized to achieve objectives while respecting the strategies put in
place, deciding how we will use social media, deciding the selling points, develop
logistics
o Control and backup plan: measure progress made, a backup plan to have solutions to
random problems, use competitors’ reactions, must be reviewed often
Control: adjust if there is a difference between actual and forecasted results
o Control: a cycle, must be done continuously, with specific tools, planning, corrective
measures, it must be possible to flag differences between expected and real results, so we
use means of actions (criteria)
o Control tools and objects: vary depending on what needs to be analyzed, compare with
competition, use internal data and performance indicators and secondary external data, a
tool named scorecard can be used to monitor the progress of marketing activities using
indicators that reflect the objectives and strategies.
Marketing audits: examination of a company’s main marketing orientations in its environments
and its implementation of them. Audit must allow company to solve its current problems and
develop competencies in relation to the competition. Must be done on a regular basis, focuses on
company’s objectives, policies, organization, procedures and personnel. Must be conducted by a
department outside the marketing department.
Session 3: chapter 5 p. 110-127 and p.134-143 and chapter 6 p.145-149
110-127:
Planning and executing the marketing strategy requires examination of the internal and the
external environments, the SWOT analytical framework is a good tool for this, it stands for
strengths, weaknesses, opportunities. Threats. Once we have this information from the analysis,
we must integrate it into our strategies, use to plan and chose commercial mix.
Strengths and weaknesses affect strategies, opportunities and threats affect operation over short,
medium and long term.
Strengths and weaknesses are internal, Opportunities and threats are external
Strengths: an important characteristic that an organization uses to attain its
objectives, seize opportunities in its environment and protect itself from threats.
Weaknesses: a factor that can harm an organization by limiting its ability to achieve its
objectives, either because it cannot seize opportunities or because it makes the company
vulnerable to potential threats.
The internal environment: resembles personal introspection, focuses on the attainment of
objectives, the availability of resources, competencies, achievements and performance.
The first method is to see how we are positioning compared to our internal factors of strengths
and weaknesses.
The second method focuses on the primary and support activities making up the value chain.
The third method is benchmarking, identifying existing best practices in sector.
Before analyzing the environment, 3 major elements must be defined: the mission, the market
and the sector.
1.Objectives and mission of the organization: the internal analysis must constantly be updated,
summarize objectives in the form of a mission which is based on the vision, mission is a way to
be distinctive and better than the competition.
o Components of the internal environment: resources, core competencies, current offer,
prior performance, business relations. Some factors may contribute to success while some
may signal threats to development.
o Resources and core competencies: competencies contribute to competitivity and are not
easily duplicable, they emerge from the resources. Human resources (qualifies and
motivated staff), financial resources (invest financial resources in different aspects of the
marketing mix), information resources (knowledge if customers’ needs and furnishers
too), resources linked to purchasing (distinct and effective purchases from suppliers, top
quality raw materials)
o Current offer: offer reflects the mission, identify development possibilities that have been
overlooked, bad marketing campaigns
o Past performance: shed light on strengths and weaknesses, assess impact of previous
marketing strategies
o Relations with business partners: distributor and suppliers can contribute to reenforcing
the position but also slow the brand, strong dependence on partners is a weakness if it is
not mutual
o Key factors and failure and success: failure factors become a weakness if the company
can’t damp their effect, success factors can become a strength if the company uses them
to its advantage, brand awareness and innovation leadership are success factors, defective
website or unsafe payments methods are failure factors
2.The value chain: differentiating yourself by carrying your primary and support
activities efficiently is a strength, the competitive advantage of a company is grasped by
analyzing its individual primary and support activities.
o Primary activities: all activities related to the production, creation and marketing of
products and services, inbound logistic activities (reception, storage and procurement),
activities linked to operations (transformation of intrants into products, production,
assembly, packaging and equipment), outbound logistic activities (distribution, storage of
finished goods, delivery to customers), activities related to marketing and sales (
segmentation, targeting, positioning, management of the marketing mix), activities linked
to after-sale service (improve customer satisfaction and retention)
o Support activities: all activities that ensure basic activities are done as efficiently as
possible, examples are infrastructure, human resources, technological development,
purchasing and procurement
3. Benchmarking: continuous process that lets companies measure their performance against the
biggest competitor, can be done internally, provides an orientation that drives movement, can
serve to prioritize the right value chain activities, 4 options for the analysis of value chain
activities: the activity is undeniably a strength, the activity is important but we don’t perform as
well as our competitors, the activity isn’t important and we don’t perform much, the activity isn’t
really important but we perform very well (bad resource allocation)
The internal analysis of the environment should be done continuously, the analysis can only be
complete if it considers the pressure that the microenvironment exerts on the organization
The external environment: also named the context, can be analyzed at two levels: micro and
macro.
o Microenvironment: competitive environment, set of actors in direct contact with the
organization, their activities may affect the company’s strategies, they also feel the
impact of the company’s strategies, it is semi-controllable, uncontrollable for passive
organization, kind of controllable for proactive organizations that anticipate changes in
the environment. The analysis of the external environment starts with the
microenvironment because it is the competition that defines the market and the sector,
competition can come from other institutions in the market, substitutes or potential
newcomers. Suppliers and customers are also in the microenvironment and can influence
the strategies and actions of the company. The market and sector: who the competitors
are, how many there are, what their market shares are. A definition based on supply:
classify business according to their main activity. A definition based on supply and
demand: classify according to the need satisfied by the product so it includes substitutes
o Components of the microenvironment: 5 competitive strengths: competitive rivalry
within the industry, bargaining power of suppliers, bargaining power of customers, threat
of new entrants, threat of substitute products and services
134-143:
The macroenvironment:
Second level of the external environment, it comprises a set of factors that don’t affect just the
organization but the market and sector as a whole. These factors may manifest themselves as
opportunities or threats, and they are not controllable by the organization, their impact is felt on
the medium to long term. Therefore these factors must be taken into account during marketing
planning.
o Components of the macroenvironment: uncontrollable, dictate the activities, important to
be proactive and anticipate them, these factors are inter-related, the changes in factors can
have different impacts on different markets and they’re not all as vulnerable. The factors:
PESTEL.
p.145-149:
Marketing research:
Marketing research data can provide insights on many aspects that can provide information that
can then turn into opportunities.
Marketing information system:
o Primary data: surveys, sales force
o Secondary data: information that answers managers questions but that are existing or
historical data
o Primary and secondary data are the base ingredients for the marketing information system
(MIS): a set of resources and procedures for collecting data and analyzing data from the
organization and its environment, and transforming it into useful information that will
help in decision making.
o The internal data analysis system, marketing intelligence and marketing research are the
main components used for integrated data collection and analysis within the MIS.
o Internal data analysis system: mainly uses data gathered by the company internally
o Marketing research and intelligence: mainly use data from the external environment
o The MIS helps marketing managers making decisions at each step of the marketing
process: planning, execution and control.
o The information supplied by the MIS must be : pertinent, reliable and valid.
o The 3 components turn internal and external data into useful information.
o Internal data analysis system: generally part of the accounting system, it includes records
of transactions, sales follow-up, online transactions, profitability of each customer and of
losing them, provide market segments
o Marketing intelligence: systematically collects secondary data concerning the company’s
environment, stay informed on the trends and the evolution, new laws and regulations,
o Marketing research: transform questions into information needs, and collect and analyze
data to meet these needs, mainly based on primary data to answer a specific question,
data can be collected suing quantitative or qualitative methods
SESSION 4:
Chapter 7:
Consumer behavior is a part of the analysis part of marketing planning.
7.1: understanding the consumer is crucial:
By gaining an in-dept understanding of the psychological process and how individuals are
influenced, managers can attempt to predict how consumers will react to their commercial
offering. A marketing strategy based on understanding the client must include their wants and
needs, the obstacles and costs linked to the adoption of a product or a service, the purchasing
experience, the use, the optimal way to communicate with the consumer.
7.2: the study of consumer behavior:
Studying the consumer can only help a strategy if it considers all aspects of the consumption
process: before the purchase, the actual purchase, and after the purchase.
7.3: the integrated model of consumer behavior:
Consumers are influenced by many factors during the decision-making process.
Different types of influences:
o Internal influences: central psychological processes (motivation, perception, knowledge,
emotion and attitude), psychographic variable (self-identity, values, lifestyle)
o External influences : consumers’s reference group, subculture, culture of origin.
o Contextual influences: the particular context they are in when they make a purchase
(mood, time available, people you shop with)
o Marketing mix influence: the marketing they are exposed to (product, place, promotion,
price)
7.4: characterizing the decision process:
Level of effort and involvement put into the decision: routine vs special purchase, everyday
decisions are made with little to no effort, customer inertia: buying the same thing out of habit,
some purchases require extended problem solving and greater effort of time and brain, the level
of involvement varies between clients, consumption situation also affects the energy put into a
decision for a consumer if a purchase they make is not important for them but important for who
they will give it to
Cognitive and emotional decisions: some purchases are governed by reason, other by emotion
which may outweigh rational decision-making, product characteristics affect the decision
depending on the need they fulfill, characteristics of the situation affect the decision depending
on how the person will use the product, individual characteristics affect the decision because we
don’t all approach a decision with the same levels of cognitive and emotional efforts, cerebral vs
instinctive, to encourage emotional decisions we should promote the feelings associated with the
purchase, to encourage a cognitive decision we should promote the advantage compared to
competition and the benefits.
7.5: steps of the decision-making process:
1. recognition of a need: two types of situations give rise to a need: either a negative change in
the consumer’s situation or a revision of the ideal state (wanting the new iphone since it becomes
the desired thing),
2. Information search: emergence of a need triggers an information search, the result of the
search depends on the amount of information and the source. Sources of information: internal
and external (advertisement, advice, online searching). Quantity of information sought: the risk
associated with a purchase affect the amount of information searched, depends on the person.
3.Evaluation of options: with the internal and external information gathered, the consumers
create a pool of options for their purchase called their consideration set, these options are
retained because they respect the consumer’s initial purchase criteria, judgement of exclusion
from the consideration sets is very bad and hard of reverse for an organization.
4. Purchasing decision: must now choose from our consideration set, to do so they pay attention
to determinant attributes which is something about a product that makes it different. The two
main decision models that consumers adopt are the compensatory model and the noncompensatory model.
o The compensatory model: compensatory decision rules take into account all determinant
attributes, so the poor performance of one aspect of a product can be compensated by a
good performance of another attribute, for example some headphones that sound like shit
but look good.
o The non-compensatory model: non compensatory decision rules consider only the
attributes that the consumer finds most important, if the perceived performance of these
important attributes does not meet a certain minimum, the consumer rejects it. For
example, a consumer might reject all flights with a connection and only accept direct
flights, even if they are much more expensive.
o Adoption of a model: if your brand has a star attribute, you can not only make it pop out
as much as possible but you can also use it to make a non-compensatory model to
exclude your competitors. Brand with a more balanced weight a=of all attribute benefit
more from a compensatory model. When you have a large number of options in your
consideration set, you might opt for a non-compensatory model, once the number is
reduced, then you can analyze your options with a compensatory model. The level of
effort you want to put in the decision can also affect the model you choose, if you want it
done quickly, a non-compensatory is better, if you want it long and precise, a
compensatory model is better.
o The decision making unit: refers to all people who participate in a buyer’s decision
process, for example, if a new toy comes up and it’s specifically for little boys but it’s
more moms buying it, the marketing should consider communication that will work well
with moms because they are a part of the dmu even if it’s their child who is the consumer.
5.The purchasing act: may be particularly sensitive to situational aspects like how much time the
client has, with who the client is, their mood at the time of purchase…The physical environment
of a store can affect the purchase, the salespeople advice and information also affect the purchase
a lot, compliments by a salesperson or similarities with a salesperson can increase the purchase
value.
6. Post purchase evaluation: when the consumer personally evaluates the quality of their
purchase and the level to which it meets their initial need, a crucial aspect of this phase is the
customer’s satisfaction or dissatisfaction.
A consumer will rarely be “satisfied” if a product or service meets their expectations but
will be dissatisfied of a product or service does not meet what they expected, therefore, for a
consumer to be satisfied, the product or service has to surpass their expectations. To limit the
risks of disappointment, a company has to control the expectations of their consumers, they must
make the product attractive but realistic.
Ensuring consumer satisfaction is very important because it is the first step to having
loyal customers that will buy more of the product or service, brand loyalty reflects a conscious
and rational decision to buy again, not like you buy milk every week, like you re buy a skincare
moisturizer that really worked on you. Over time, brand loyalty can be reinforced by an
emotional attachment to a brand. A brand can get good word-to-ear from satisfied consumers or
bad from dissatisfied.
7.6: Sources of influence on consumer behaviour
There are 4 types of influences on the decision process
1. Internal: Central psychological processes: motivation (determine level of effort a
consumer is ready to put into into a behavior a decision and info processing, the need that
the buyer wants to fil can affect the motivation they will have). Perception (a process of
selecting, organizing, and interpreting information received by the 5 senses, the stimuli
captured by our senses are processes in 3 steps: exposure, attention and interpretation,
exposure is how a consumer comes into contact with a marketing stimulus, attention is
when the consumer dedicates mental activity to process the stimulus, interpretation is
when a consumer decodes the message and gives it meaning). Knowledge (mental
associations with brands, inferences are when a consumer uses an observable
characteristic to deduce an unobservable characteristic of a product so it’s the conclusions
that a consumer draws from marketing stimuli (price vs quality, country of origin),
mental organization is when consumers makes conclusions based on the similarities
between products). Emotions (the emotions associated with the brand). Attitude (reflects
all of an individual’s complex evaluations of an object, cognitive dimension is the belief
about the object, emotional dimension is the affective reactions to an object, behavioural
dimension is the intentions toward an object)
Psychographic variables: identity and self-concept (the way one perceives and
analyzes one’s characteristics, physical appearance, mental qualities). Values
(shaped by the culture people were raised with, what is good and what is bad).
Lifestyle (activities and pastimes to which an individual dedicates their spare
time, new lifestyle trends make new products emerge)
2. External influences: needs are influenced by our social and cultural environment.
Reference groups (groups that influence and individual’s evaluations, aspirations and
behaviour, can be one person (influencer) or a group (students, fans), 3 main types of
influences which are informational (groups that give advice or information), normative
(norms of conduct and consumption that a group adopts) comparative (group may
procure comparison points, infiltrate dynamics of influence into the customer brain by
influencing canal a reference group
Subcultures: a group whose members share culture and beliefs that differentiate
them from other groups, generations (share social memories and historical
events), ethnic groups (share culture and genetic links, language, food, religion),
regional subcultures (share geographical location), social classes (shared
significations, norms, traditions and rituals, share values, place of an individual in
its group, collectivist or individualist,)
3. Contextual or situational influences: factors that are not specific or stable about a product
or an individual, mood (temporary emotional state which may be positive or negative,
happy or grumpy, store ambiance, aggressive salespeople, weather conditions, retail
therapy), time available (pressure felt by time limitations, efficient purchases are useful
when you don’t have a lot of time but want to put effort in the purchase), physical and
social environment (décor, odor, temperature, other shoppers, friend shopping with you
that consumes a lot, customer may be sensitive to the profile of other customers in the
store (tourists, men, women, old, young, athletic, stylish..)
SESSION 5:
Chapter 3 p. 55-70 What are their buying behaviours?
Marketing strategy: statement of how a brand or product will achieve its objectives, provides
decisions and directions regarding segmentation, targeting, positioning and differentiation.
1. Segmentation: for a group to be a segment, the aspects selected to form these groups must
be related to buying behaviour, needs and expectations. Dividing the market in
submarkets that are homogenous groups of customers who are similar in consuming
behaviour, needs and expectations and each group differs from each other. It would not be
appropriate to identify a segment based on eye color.
o Segmentation on consumer market: to select the good segmentation variables,
marketer must study the consumers in their market to understand the variables
affecting their demand, there are 8 variables used to segment a market:
sociodemographic (demographic, economic, social, income, age, religion,
ethnicity, language, marital status, education...) geographical (related to location,
country, region, city, neighborhood, postal code, climate) psychographic variables
and lifestyles (concerns consumer mindset, values, opinions, interests, activities
and attitude towards life, combining psychographic with geographic and
sociodemographic allows to segment lifestyles) behavioural (concerns consumer
needs, expectations and behaviour, what do customers want? What do they need?
What do they expect?, approach provides ideas on what to offer each segment in
order to have retention and loyalty, segments based on type and amount of needs
& expectations) volume and profitability (amount of customers’ purchases and
profit that they generate, adapt marketing mix to these characteristics) variables
specific to a market (vary between markets, owner vs tenant, first time vs
experienced buyer, on-site consumers vs at home consumers, new vehicle vs old)
combination of variables (use more than one variable, which variables apply to a
specific market, should ask the question who? Where? How? Why?)
o Business market segmentation: use the same except sociodemographic and
psychographic variables, instead they use economic variables like business size
and financial solvency, psychographic and lifestyle are “replaces” by analyzing
organizational culture and procurement policy, behavioural are reflected by need
for fast service, delivery, geographic coverage, accessibility, volume and
profitability is used a lot, geographic, market variables and combination are also
applied in business market.
2. Targeting: selecting exactly where the business wants to compete, which segment to
choose and how to adapt marketing mix to each of them, segment targeting and market
targeting use same factors, must take into account the company itself, the background and
the current and future resources.
o Selecting targets: what segment to target, affected by segment’s size, growth
(early access), accessibility (can we reach them easily in distribution) and
competitive position (is there already competition) and cost of adapting (change
mix according to needs, expectations and behaviour) to target segment. Assess
how profitable these components make the segment, avoid hyper segmentation
(targeting very large number of super small segments)
o Types of targeting: based on the number of segments targeted, mass marketing
(targeting whole market and using same mix for whole market, average need,
average to low price), segment marketing (one, a few or all market segments, mix
adapted to each target segment here, concentrated is one segment, comprehensive
is all segments with individual mix for each, broad is 3 or more segments,
concentrated can be one segment in all country but it’s the same one in each),
niche marketing (variant of concentrated, reflects company’s specialization, one
segment to which we adapt out whole mix, specialization becomes entry barrier
for competitors, segment must be less than 10% of the market) personalized
marketing (adapting company offering to each customer, segment of one person,
more frequent in business market
o Refocusing or changes in targeting: may need to modify targeting because of
competition or own development
SESSION 7: pages 70-82 chapter 3:
Positioning: concerns the identity, image and personality of a brand, place a company wishes to
occupy in the hearts and minds of their customers. Awareness is the first necessary condition to
obtain positioning, if a brand is not known by customers in their target segments, it has no real
positioning. All marketing of a brand should be consistent with desired positioning
Positioning of a new brand: for new brand, the market positioning of competitors to identify the
best positioning for us, it would give a competitive advantage while staying feasible, advantage
often requires differentiation.
Positioning of an existing brand: market study to determine actual positioning and competitors. If
we already have the desired positioning, we will reinforce it, otherwise, we will try to bring
actual positioning closer to desired positioning.
o A name change can be an effective repositioning
o It is not always possible to reposition a brand at an affordable cost and in reasonable time
o In short-term, it is very difficult to reposition a well-known mid-range brand as a highend brand, but it is easier to reposition a high end brand as a mid-range brand, often
reaching new target segments. In the long-term, it creates brand loyalty, but it can repel
some higher-end segments, an option can be to introduce a new brand.
o Ensuring successful positioning: positioning involves defining the desired position based
on important attributes for target segment customers, must be specific and relevant and
consistent with targeting. Position must also represent value for target segment, whether
it be tangible or symbolic. Positioning can be transparent and obvious, or more subtle and
evocative. The various types of positioning can create benefits that are appealing to
potential and actual consumers. Consistency is important because positioning takes time
to be in place and effective. Consistency doesn’t necessarily mean to use the same
message or slogan for a long time, a rebranding can be consistent with the old
positioning: rejuvenating.
Differentiation: very closely tied with positioning, consists of standing out from the others by
getting the target to perceive us as different from competition in a positive sense based on one or
more significant attributes. Without differentiation, the only way to compete is with price,
differentiation provides a reason to choose us.
o Bases of differentiation: the attribute on which differentiation is based must be significant
for customers, for example: innovation. If a distinction is not known, it is easy to
communicate it. Differentiation must concern an aspect that counts for customers, or that
they can be convinced is important to them. Real or symbolic advantage, ideally it is
visible, significant and authentic.
o Differentiation can address any and all of the marketing mix components: price (package
offered, payment terms, volume discount), product (variety, quality, technology, guaranty,
format, repair, installation, after-sale, customer service), place (geographical coverage,
delivery fast, delivery safe, business hours), promotion (image transmitted advertised,
communication, loyalty programs, sales team, direct marketing)
o Customers must be able to not only distinguish a product through its points of difference,
but also to categorize it, hence the points of parity. Businesses need to find the point
where the product stands out but still satisfies the needs. Elements of differentiation in a
company can be numerous but they need to stay consistent and complementary, or else it
can create confusion and no credibility.
o Perceptual map: map of our place in the market compared to our competitors, like a graph
with two variables and we place ourselves and our competitors on it to show the
advantage of our brand.
o Statement of positioning: validates the differentiation of the brand relative to competitors,
the statement must specify the points of parity and the points of difference, along with the
promise it makes to customers: For [target segment] [brand] is a [concept] that
[distinguishing characteristic] and its [justifcation].
Where the justification is a comparative advantage, a further thing to justify our brand.
SESSION 8:
Chapter 4 p.94 to 105:
4.5: the creation of value: marketing strategy
The value proposition matrix helps companies develop a value proposition, the first step is to know
the customer’s jobs, the problems they face, the gains they seek and the pain they want to avoid.
The value proposition, promise, and positioning vary according to the chosen image.
4.6: The marketing mix:
The tactics must align with the company’s defined strategies, target and positioning.
Innovation and development of new products and services: powers the long-term success,
companies must innovate at least as much as their competitors. There are 3 main phases to the
development and introduction of a new good: idea generation, test and launch. In the innovation,
companies must consider the life cycle of their product or service, it serves as a clue to indicate
when to introduce innovation.
Innovation: bringing something to the market that is perceived as substantially different from
anything else already on the market, innovations are characterized by their degree of continuity:


Discontinuous innovation: radically new products which disrupt established habits or
create an entirely new product category, this type is fairly rare (computer, electric bulb, jet
engine)
Continuous innovation: propose new characteristics that do not necessarily call for
redefining the product category (new Colgate flavor, new Budweiser beer)
Diffusion of innovations:
New product follow a similar diffusion no matter their degree of continuity, spreading throughout
the market over time among different categories of adopters.





First, there are innovators, the first 2.5% of the total buyers of a product, often fans that
want to try anything
Then, early adopters, at 13,5%, the two first are characterized by their innovative
personalities and their opinion leadership, early adopters want to maintain status of opinion
leaders, these 2 can figure out why the innovation is good by themselves
Then, the early majority, 34%, don’t adopt innovations until they have seen how the good
benefits them
Then late majority, 34%, don’t adopt a product until it has proven itself and has been
adopted by early majority and has attained maturity.
Finally, the laggards, final 16%, lost innovative character and have become classics
Adoption factors:





Relative advantage: first facilitator, the bigger the better,
Comparability: how does the innovation compare to the usual way of doing things
Triability: can the innovation be tested out, reduces risk for customers
Observability of the Innovation facilitates diffusion, demonstration of the benefits
Perceived complexity: can be a barrier, can discourage potential buyers
Causes of failure examples:








Overestimating the market
Flawed design
Poor positioning
Pricing errors
Wrongly designed sales communication
Production orientation rather than customer
Cost overruns
Competition
CHAPTER 8:
8.1:
Product: set of benefits offered to a customer
Service: action or effort offered by one party to another, 4 factors differentiate them from products:




Intangibility: can’t be touched
Inseparability: production is tied to consumption
Variability: quality depends on who offers the service, when, where and how
Perishability: can’t be stored until demand increases
Service marketing integrates 3 approaches: external marketing (relationship that company
maintains with its customers), internal marketing (make sure the employees are well trained and
supported), interactive marketing (provision of sales and service).
8.2:
Product dimensions:
The core of a product is the benefits it offers, they drive consumption, they drive value perceived
by customer
Core product: concrete offer to provide the benefits seeked, consists of attributes (characteristics
that satisfy a customer’s needs, 4 attributes:




Design: tension between function and form, form embodies function and sometimes evokes
something.
Packaging: fulfills technical and communication functions, protects, activates brand and
logo, unboxing can be an advantage if it is “satisfying”.
Product quality: two angles: technical (performance, reliability, conformity, durability) and
perceptual (satisfaction of customer’s expectations, gap between expectation and observed
qualities). Must balance these 2 angles for effective marketing, Importance-Performance
matrix. Evaluating the quality of a service: reliability, responsiveness, empathy, tangibles
Brand: set of material signs allowing a company to differentiate themselves for the
competitors. Can use physical sings like Burberry
Related Services:
Include guarantee, installation, delivery and credit, and after-sale. Not integral part of core product
but essential to consumption experience. Can help fill a gap in the core product
8.3:
Product portfolio management:
Most companies organize their variety of products in an architecture made up of a product
portfolio, product range (product in the same category or that meet the same need) and product
lines
A product range is described in terms of width (# lines), length (total #products in range) and depth
(# in a line)
Lines are designed to order products from low-end to high-end.
Managing product portfolio allows companies to avoid cannibalization between products which is
when the launch of product A make the sales of current product B decrease.
8.4:
Brand management:
Positive, strong and unique associations reinforce the brand image, but some associations are
uncontrollable
Prominent type of brand in the last decades: Private Label: brand developed and marketed for a
retailer and distributes through that retailer exclusively.
Brand equity: added value given to a product by the brand, value expressed as loyalty, awareness,
perceived quality and associations, 3 approached to measure brand equity:

Customer based approach: directly evaluate expressions of value through surveys


Price differential approach: evaluate the value of each brand by statistically measuring their
attributes
Income based approach: proportion of the company’s future income associated to the
specific brand analyzed.
Strategic branding decisions: organization of brand in a portfolio (umbrella brand: name and signs
appear on all product made by a company, house of brands: each brand in the company is treated
separately and individually), brand extensions and launches (line extension, brand extension,
multibrand approach, new brand creation), brand
alliances (cobranding is when two brand
cooperate to market together a new product, a
new line or a new range, association
completement each other is more efficient,
batman vs superman for example)
8.5:
Product life cycle management:
Phases are introduction, growth, maturity and decline, a product as a quicker life cycle than a
category




Introduction phase: slow sales, limited profit, limited competition, innovators usually
consume in this phase
Growth phase: more customers, more competition, profit increase if good introduction was
done, two objectives may be pursued in this phase: defend territory or expand its range and
deepen its product lines, depending on how segmented the market is.
Maturity phase: growth begins to stagnate, some competitors leave, late majority buys,
objective is to optimize portfolio by effectively managing the range and lines, must be
careful with new launches while in this phase.
Decline phase: market shrinkage, decreasing profits, many competitors leave, only
laggards haven’t consumed yet, 4 strategies to survive is being the sole survivor, boost
profits by investing as little as possible in products, shrink range to be more specialized,
withdraw from market and sell the brand.
SESSION 10
Chapter 11 p.323-336
1. The Role of Distribution in Marketing



Distribution is the least visible marketing mix element for consumers because they
primarily interact with retailers.
The purpose of distribution is to make products available to consumers at the right time,
place, and quantity, ensuring continuous business relationships.
Distribution decisions align with a company’s targeting and positioning strategy (e.g.,
selling in high-end stores vs. mass-market retailers).
2. Distribution Intermediaries & Their Functions


Intermediaries help move products from manufacturers to consumers.
Key functions of intermediaries:
o Logistics: Managing transportation, storage, and inventory.
o Financing: Providing credit to consumers and businesses.
o Research: Collecting market and consumer insights.
o Promotion: Enhancing product visibility.
o Sales & Customer Service: Assisting in purchasing and after-sales support.
o Payment Processing: Handling financial transactions.
3. Case Study: Snapper & Walmart



Snapper refused to lower prices and quality for Walmart, despite Walmart contributing
20% of its sales.
The decision was driven by Snapper’s premium brand positioning and loyalty to
independent retailers.
After leaving Walmart, Snapper was acquired by Briggs & Stratton and later partnered
with Sears for limited distribution.
4. Types of Distribution Intermediaries



Retailers: Sell directly to consumers (e.g., Walmart, Running Room).
Wholesalers: Buy in bulk and resell to retailers (common in auto, food, and
pharmaceutical industries).
Agents: Sell products for manufacturers but don’t own them (common in industrial
markets).
5. Distribution Channels


Direct Channel: No intermediaries; manufacturer sells directly to consumers (e.g., Dell,
Avon).
Indirect Channels:
o Short Channel: Manufacturer → Retailer → Consumer (e.g., furniture, clothing).
o Long Channel: Manufacturer → Wholesaler → Retailer → Consumer (e.g., food,
cosmetics).
o Ultralong Channel: Manufacturer → Agents → Wholesalers → Retailers →
Consumers (common in imported goods).
6. Integration of Distribution Channels



Companies often integrate channels to improve efficiency and control.
Vertical Marketing Systems (VMS): Centralized, professionally managed networks that
coordinate different intermediaries to optimize distribution.
Strong distribution networks enhance efficiency, reduce costs, and improve customer
satisfaction.
Chapter 11 p.340-349:
1. Selecting a Distribution Network




Choosing the right distribution channel is crucial as it impacts pricing, sales team size,
advertising efforts, and relationships with intermediaries.
Distribution affects the flexibility of a company’s marketing strategy due to long-term
commitments with intermediaries.
Companies must decide on distribution intensity (how widely a product is available),
which influences channel selection.
Startups often struggle with distribution and must prove their products' value before
gaining network access.
2. Determining Distribution Intensity
There are three main types of distribution based on market coverage:
a) Intensive Distribution




Used for everyday consumer products (e.g., snacks, drinks).
Requires the product to be stocked in as many outlets as possible.
Uses long or ultralong channels, involving wholesalers, retailers, and agents.
High costs for marketing and distribution management.
b) Selective Distribution




Used for shopping goods (e.g., clothing, furniture).
Products are sold in a limited number of carefully chosen retailers.
Ensures better control over brand image, service quality, and cooperation with
intermediaries.
Example: Mackage (high-end fashion) selects premium retailers like Saks Fifth Avenue
and Holt Renfrew.
c) Exclusive Distribution



Used for luxury or niche products (e.g., designer brands, high-end electronics).
Only one retailer per region is allowed to sell the product.
Offers strong brand control and often requires retailers to not sell competing products.

Example: Bang & Olufsen stereo systems were initially sold in only two exclusive stores
in Montreal.
3. Choosing the Right Distribution Channel & Intermediaries
A company must carefully choose its channel structure and partners by considering:
Cost & Profitability – Sales volume, margins, and intermediary support costs.
Control Over Network – Avoids price wars and ensures brand consistency.
Intermediary Image – Consumers trust reputable retailers.
Sharing of Functions – Clearly defined roles reduce inefficiencies.
Compatibility with Existing Networks – New channels should not disrupt established
relationships.
6. Flexibility – A business should remain adaptable to changes.
1.
2.
3.
4.
5.
4. Multi-Channel Distribution & Omnichannel Strategy



Multi-channel distribution uses multiple channels to sell products (e.g., Apple sells
online, in its own stores, and in big-box retailers).
Advantages:
o Increases market reach and revenue.
o Diversifies risk by having multiple sales avenues.
o Helps segment markets by targeting different consumer groups.
Challenges:
o Potential channel conflicts due to different pricing, product availability, or sales
goals.
5. Disruptions in Distribution Channels


Technology & E-commerce:
o Online shopping has weakened traditional retailers.
o Some intermediaries (e.g., record stores) disappeared due to streaming services.
o Others (e.g., Etsy, Airbnb, Uber) emerged to connect small sellers with buyers.
Retail Consolidation:
o Fewer large retailers dominate industries (e.g., Loblaws, Sobeys, Metro in
Canada).
o This reduces flexibility for smaller brands trying to enter markets.
6. Managing Channel Conflicts
Three major sources of conflict in multi-channel distribution:
1. Incompatibility of Objectives – Some retailers may prefer higher margins, while
manufacturers may prioritize market penetration.
2. Poorly Defined Roles & Rights – Overlapping sales efforts (e.g., manufacturers selling
directly online while retailers also sell the same product).
3. Differences in Perception – Manufacturers focus on products, while retailers focus on
customer experience.
7. The Omnichannel Strategy Solution



Omnichannel strategy: Integrates all distribution channels to provide
a seamless customer experience.
Examples of omnichannel features:
o Buy online, pick up in-store (BOPIS).
o Mobile apps that sync with physical stores.
o Personalized pricing and promotions across all channels.
To reduce conflicts, businesses can:
o Differentiate marketing strategies for each channel.
o Offer exclusive products per channel (e.g., Snapper sells different mowers in
Sears vs. Walmart).
o Compensate retailers for online purchases made in their geographic region.
Chapter 12 p.351-367:
1. The Importance of Pricing in Marketing




Price is one of the most visible and influential elements of the marketing mix.
It directly affects customer purchase decisions, sales volume, market share, and profitability.
According to the Boston Consulting Group, a 1% price increase can have four times more
impact on company profits than a 1% decrease in expenses.
Pricing is a continuous process that must align with marketing strategy and the broader business
environment.
2. Understanding Price from Different Perspectives



Seller’s View: The amount charged for a product/service to cover costs and make a profit.
Economic View: The point where supply and demand intersect.
Customer’s View: Price includes monetary costs, time, effort, and psychological costs (e.g.,
uncertainty about product quality).
Example: IKEA’s Pricing Model


IKEA lowers product prices by requiring customers to assemble furniture themselves, reducing
shipping and storage costs.
This trade-off increases non-monetary costs (effort, time) but keeps monetary costs low, making
IKEA products attractive to price-sensitive buyers.
3. Environmental Influences on Pricing
a) Competitive Pressures


Companies must monitor competitors’ prices and adjust their pricing strategies accordingly.
Competitor responses to price changes must be anticipated.
b) Economic Environment


Boom periods: Consumers are less price-sensitive and willing to pay higher prices.
Recessions: Consumers seek low-cost alternatives (e.g., Starbucks struggled during the 2008
recession while McDonald’s and Dunkin’ Donuts thrived).
c) Government & Legal Constraints



Governments regulate prices in key industries (e.g., energy, transportation, agriculture).
Laws like the Competition Act and Consumer Protection Act prevent unfair pricing practices.
Price-fixing, predatory pricing, and deceptive pricing are illegal.
4. Pricing Objectives
Companies set pricing objectives based on their strategic priorities:
a) Profit-Oriented Objectives



Maximizing short-term profit by setting prices that generate the highest income.
Acceptable profit (Satisficing): Setting a price that ensures survival and stable returns (common
in family-run businesses).
Target Return Pricing: Setting a price based on achieving a specific return on investment (e.g.,
aiming for a 25% return on capital).
b) Competition-Oriented Objectives



Market Share Growth: Lowering prices to gain dominance (e.g., Coca-Cola, Walmart).
Maintaining Market Share: Matching competitor prices to avoid price wars.
Creating Barriers to Entry: Setting low prices to discourage new competitors.
c) Sales-Related Objectives


Focused on increasing sales volume rather than profitability (used when companies have excess
inventory).
Example: Car dealerships lowering prices during recessions to clear inventory.
d) Customer Perception Objectives


Luxury brands set high prices to signal exclusivity (e.g., Louis Vuitton never discounts products).
Discount retailers highlight affordability (e.g., Winners’ slogan: “Find fabulous for less”).
e) Distribution Intermediary Objectives


Some companies price products based on retailers’ demands (e.g., Walmart pressures suppliers to
offer lower prices).
Retail dependence can lead to loss of pricing control.
5. Pricing Strategies
A company’s pricing strategy depends on competition, consumer behavior, and internal costs.
a) Competitive Pricing Strategies



Price Leadership: A dominant firm sets prices, expecting competitors to follow (e.g., Apple in the
smartphone market).
Competitive Parity: Setting prices equal to competitors to maintain stability.
Low-Cost Pricing: Systematically offering the lowest price (e.g., Walmart, WestJet).
b) Consumer-Driven Pricing Strategies


Prestige Pricing: Setting a high price to indicate quality and exclusivity (e.g., Bose home theater
systems).
Quality Signaling: High prices reduce perceived risk, making consumers trust the product more.
c) Cost-Based Pricing Strategies


Cost-Plus Pricing: Adding a profit margin to production costs (used when demand is uncertain).
Limitations: Doesn’t consider consumer perception or competitor pricing.
d) Product Line Pricing Strategies



Complementary Pricing: Selling the main product cheaply while charging high prices for
accessories (e.g., printers vs. expensive ink cartridges).
Price Bundling: Selling multiple products together at a discount (e.g., McDonald’s value meals,
software packages).
Customer Value Pricing: Offering a budget-friendly version of a premium product (e.g., Toyota
Yaris as an entry-level car).
6. Pricing and the Product Life Cycle
Pricing evolves throughout a product’s life cycle:
Stage
Launch
Growth &
Maturity
Decline
Strategy
Skimming (high price, then lower gradually) or Penetration (low price to gain market
share).
Price reductions, discounts, and promotions to compete.
Sharp price cuts to clear inventory or product discontinuation.
a) Skimming Strategy


High initial price, gradually reduced to capture more price-sensitive customers.
Works best for innovative, hard-to-copy products (e.g., high-tech devices).
b) Penetration Strategy


Low initial price to quickly gain market share and discourage competitors.
Works well for mass-market products with strong economies of scale.
c) Price Reduction & Promotions


Used in mature markets to attract customers (e.g., discounts in the furniture and car industries).
Risks: Frequent discounts can make customers expect lower prices, reducing long-term profitability.
7. Pricing Methods
Companies use four primary methods to determine prices:
1.
2.
3.
4.
Cost-Based Pricing: Adding a profit margin to production costs.
Competition-Based Pricing: Setting prices based on market averages.
Demand-Based Pricing: Adjusting prices based on customer demand.
Customer-Based Pricing: Setting prices based on perceived value (e.g., Apple products).
Example: Costco’s Pricing Strategy


Uses cost-based pricing to offer consistent, low-margin pricing.
Ensures profitability through high sales volume.
Conclusion
Pricing is a strategic tool that affects sales, brand perception, and market competitiveness.
To succeed, businesses must:
1.
2.
3.
4.
Align pricing with market conditions, competitors, and consumer expectations.
Choose an appropriate pricing strategy based on product positioning.
Adjust prices throughout the product life cycle to maximize profits.
Consider environmental factors, economic conditions, and legal regulations when setting prices.
Class 11:
Chapter 9 243-280
Key Concepts and Trends



Media Multiplication: Communication occurs through multiple channels — from
traditional (TV, print) to modern (social media, mobile apps, video games, etc.).
Consumer Control: With digital tools, consumers control exposure to ads, increasing the
need for impactful and engaging content.
Agency Support: Brands often rely on communication agencies to create standout
campaigns in a saturated market.
Integrated Marketing Communication (IMC)


The core idea is to deliver a coherent, unified message across all communication
platforms.
The message must align with the brand’s positioning and support clear, measurable
communication objectives.
Strategic Communication Planning Process
1. Situation Analysis
o Analyze internal/external environments, brand positioning, and consumer
insights.
2. Planning
o Set objectives, define key messages, choose media, allocate resources, and
establish performance metrics.
3. Creation & Implementation
o Develop and produce campaign materials.
4. Deployment & Evaluation
o Roll out the campaign and monitor performance.
Target Audience & Consumer Insight


Understanding the target's motivations and psychographic profile is key.
Example: Dove’s Real Beauty campaign tapped into women’s desire for authentic
representations of beauty.
Communication Objectives


Objectives can be cognitive (awareness), affective (emotions/attitudes),
or behavioral (actions like purchase).
Tools include the hierarchical effects model (awareness → knowledge → liking →
preference → conviction → purchase).
Key Message



A concise expression of the campaign’s intent.
Guides creative direction and ensures consistency across all channels.
Example: Université de Montréal’s CEPSUM campaign used “Vivez + fort” to promote
fitness benefits.
Types of Media
1. Paid Media: Ads in TV, radio, print, digital platforms.
2. Owned Media: Brand-controlled platforms like websites, social media accounts.
3. Earned Media: Word of mouth, PR, user-generated content.
Integrated marketing uses all three to reinforce the brand’s message.
Communication Tools







Advertising: Paid placements with high reach and creative flexibility, though challenged
by ad-skipping and consumer skepticism.
Public Relations: Builds trust and reputation via media, though harder to control and
measure.
Direct & Relationship Marketing: Personalized communications via email, loyalty
programs, etc. Uses CRM and big data.
Sponsorship: Aligns brand with events or personalities; fosters emotional connection.
Sales Promotion: Offers immediate incentives (discounts, samples, contests) to drive
action.
Digital & Mobile Marketing: Includes inbound (content-driven) and outbound
(ads/search listings); mobile and location-based strategies are growing.
Social Media: Engages users interactively; supports storytelling, branding, and viral
campaigns.
Media Planning


Involves selecting the right channels and scheduling ads for maximum impact and ROI.
Criteria include reach, frequency, continuity, cost per thousand (CPM), and share of
voice.
Effectiveness Measurement



Pre-testing: Evaluates concepts before launch.
Post-testing: Measures campaign impact.
Adaptation (Glocalization): Balances global messaging with local cultural nuances.
Challenges and Opportunities




Consumers are increasingly ad-resistant.
Communication must be personalized, authentic, and timely.
Data privacy laws necessitate ethical data usage.
Successful campaigns are those that integrate tools strategically and resonate with
consumer insights.
Chapter 10 283-288
1. Selling Approaches
� Transactional Approach





Focus: Immediate, short-term sales.
Based on: Price and quality.
Common in: Industries with infrequent purchases (e.g., real estate).
Role of salespeople: Minimal interaction—primarily order-takers.
Technology has automated many transactional functions (e.g., online ordering).
� Consultative Approach




Focus: Providing advice to help customers solve problems.
Role: Diagnosing customer needs and offering tailored solutions.
Value-based: Customers are willing to pay for added value.
Example: IT consulting firms like IBM.
� Relational (Relationship) Approach




Focus: Building long-term, mutually beneficial partnerships.
Role: Enhancing customer satisfaction and retention.
Emphasis: Trust, intimacy, and collaborative success.
Example: Sales relationships in industries like aerospace (e.g., Bombardier and suppliers)
and food distribution (e.g., Danone and retailers).
� 2. The Relational Selling Approach
� Contextual Shift



Driven by globalization, digitization, and empowered customers.
B2B customers now have access to vast information (social media, reviews, etc.).
Companies must provide positive customer experiences to stay competitive.
� Strategic Importance



The salesperson becomes the face of the company and a key differentiator.
Relationship selling builds customer loyalty and competitive advantage.
Strong salesperson–customer relationships increase:
o Sales
o Market share
o Profit margins
� Business Impact



Retaining just 5% more customers can double profits (Reichheld & Sasser).
75% of B2B buyers rely on word-of-mouth in decision-making.
39% of B2B buyers choose suppliers based on the salesperson’s skill—not price or
product.
� 3. Modern Salesperson Attributes
In the relationship selling model, a successful salesperson must possess new, often soft-skillfocused qualities:
Trait
� Resilience
Relevance
Adapt to changing environments
� Creativity
Solve unique client challenges
� Confidence
Project reliability and authority
Trait
Relevance
� Emotional Intelligence Understand and connect with clients
� Intuition
Navigate complex sales situations
� Humor
Build rapport and ease tension
� Networking
Expand reach and influence
� Social Responsibility Align with customer values
These traits collectively enhance the personal value that salespeople offer in a relationshipdriven sales environment.
� 4. The Role of the Salesperson



Central to B2B success: Direct interface with clients.
Responsible for establishing trust, retaining customers, and driving growth.
Key player in implementing and benefiting from the relational approach.
✅Summary Takeaway
In today’s B2B marketing communication landscape, relationship selling has become essential.
Moving beyond simple transactions, modern sales strategies focus on trust, personalization, and
long-term engagement. The salesperson is no longer just a seller, but a consultant, partner,
and brand ambassador—equipped with emotional and interpersonal intelligence to navigate
the complexities of modern sales.
Chapter 10 p. 292-309
10.4: The Selling Process – 8 Key Steps
The B2B selling process is structured into eight steps, with varying durations depending on the
industry, complexity, and client. These steps aim to guide a sale from initiation to customer
commitment and follow-up.
1. Prospecting


Goal: Identify potential clients.
Activities: Use CRM, databases, referrals, events, networking, cold calling, directories,
and online tools.

Key steps:
1. Identify leads.
2. Qualify leads.
3. Validate interest.
4. Set an appointment.
2. Pre-Approach



Goal: Prepare thoroughly for the customer meeting.
Tasks:
o Research client background.
o Define SMART objectives:
 Specific, Measurable, Achievable, Results-based, Time-bound.
o Prepare tailored questions and material.
Customer profiling: Consider thinking and communication styles for better alignment.
3. Approach


Goal: Make a strong first impression.
Components:
o Greet the client professionally.
o Present yourself and your company.
o Share a general interest message (e.g., your firm’s mission or industry
leadership).
o Engage in friendly conversation to build rapport.
o Transition smoothly into needs assessment.
4. Needs Assessment



Goal: Discover and define customer needs.
Methods:
o Use open vs. closed questions effectively.
o Apply the SPIN method:
 Situation: Understand current status.
 Problem: Identify pain points.
 Implication: Explore consequences of issues.
 Need-payoff: Discuss the benefits of resolving problems.
Key skills: Active listening, empathy, and adaptability.
5. Presentation of Business Solution



Goal: Match the solution to the client’s needs.
Techniques:
o Use the L-FAB-F method:
 Link the product to the identified need.
 Feature – Describe it factually.
 Advantage – Explain general usefulness.
 Benefit – Highlight customer-specific value.
 Function – Show real-life application or proof.
Tactics: Tailor your pitch to customer’s decision criteria, use visual aids or demos.
6. Handling Objections



Goal: Address doubts or hesitations constructively.
Steps:
1. Acknowledge the objection with empathy.
2. Clarify the root concern.
3. Respond with a personalized solution.
4. Validate customer satisfaction.
Approach: Treat objections as signs of engagement, not rejection. Use them to reinforce
trust and solution relevance.
7. Closing the Sale & Gaining Commitment


Goal: Secure an agreement or sale.
Strategies:
o Summarize key advantages.
o Use assumptive closing (e.g., “Would you prefer delivery Monday or
Tuesday?”).
o Highlight emotional value.
o Offer choices to make decisions easier.
8. Follow-Up


Goal: Ensure satisfaction and reinforce the relationship.
Actions:
o Thank the customer.
o Reassure them about next steps.
o Schedule the next contact.
o
o
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Be proactive with any issues (e.g., delays).
Attend deliveries or installations if possible.
Impact: Regular follow-ups drive trust, satisfaction, loyalty, and repurchase behavior.
Even a 5% boost in retention can yield up to 85% higher profits.
� 10.5: Business Development
Definition:
Business development is about creating value for the company by capturing opportunities
among both internal and external customers.
Two Target Types:
Internal Customers
External Customers
Departments, managers, teams Current & potential clients, partners
Collaborators and colleagues Market actors (influencers, decision-makers)
Best Practices:


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Balance focus between clients and internal stakeholders.
Align team efforts with customer-centric initiatives.
Sales success hinges on managing multiple fronts—relationships, partnerships, and
internal collaboration.
� Final Takeaway
This comprehensive selling process emphasizes customer orientation, personalization,
and strategic relationship building. In B2B, success is less about pressure tactics and more
about value creation, trust, and long-term commitment—with salespeople acting as problemsolvers, advisors, and brand ambassadors.