Chapter 1 Outline
Marketing Goal – to create a product that sell, NOT to sell a product. Marketing
encompasses the entire business. It is to know and understand the customer so well
that the product of services fits him and sell itself. Marketing should result in a
customer who is ready to buy
Marketing is about creating value
Marketing Strategy - defines the market and customer needs the company aims to
fulfill
Marketing Tactics - sales, advertising, promotion are used to implement the strategy
Marketing is creating value by designing and managing viable market oCerings which
used both art and science
Value – defines the benefits and costs that participants receive from the market
exchange
Marketing Value Creation:
1. Identifying value - uncovering unmet customer need that the company can fulfill
better than competitors
2. Designing value – developing the actual product, defining brand, price, and sales
promotions
3. Communicating value – informing everyone (company, customers, and
collaborators) about the oCering
4. Delivering value – bringing the customers through distribution channels to make
the purchase
Defining the Market:
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Do not define it is terms of the product
Do define it in terms of the customer needs that you aim to fulfill
3 Main types of markets:
1. B2B
2. B2C
3. C2C (Facebook, etc) – company just enables customers to talk to each other
Marketing Enables Growth by:
1. Exploring new opportunities
2. Identifying new markets
3. Uncovering unmet customer needs
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Marketing is Symbiotic with Innovation – Innovation enables marketing by identifying
novel means to address customer needs. Marketing empowers innovation by shaping
new technologies to align with customer needs.
The Role of Frameworks:
1. Give managers a better idea about the problem they are trying to solve
2. Provide approach to generating alternative solutions
3. Shared vocabulary so everyone understands the process
They are NOT intended to solve problems – they only outline a structured process to be
used
Decision-Making Framework:
This is meant to AVOID TRIAL AND ERROR
1. Re-Define the specific problem to a more general problem
2. Identify the framework that can solve the specific problem (5-Cs) and use it to
derive a general solution
3. Apply the generalized solution as outlined in the framework
The basic idea – most problems are not unique. They have been seen before and will
be seen again in the future. So, get a framework in place so you are not doing a full new
eCort every time you encounter a problem because the issue and solution is probably
similar to something you already did in the past.
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Chapter 2 Outline
Success of an oLering: the company’s ability to design, communicate and deliver
market value
Strategy - Outlines the company’s choice of the market it will compete in and the value
it intends to create
1. Target Market
2. Value Proposition
Tactics – specific set of skills (marketing mix) employed to execute the strategy
1. Define the key aspects which deliver value
2. State how much it costs
3. State how customers will hear about it
4. State how/where they can buy it
Target Market – the market in which the company aims to create and capture value
Defined by the 5-C’s
1. Customers who have unfilled needs
2. Competitors that target the same customers
3. Collaborators that work with the company to fulfill the needs
4. Company managing the oCering
5. Context in which the company operates
1. Target Customers defined by:
1) Customer needs – specific problem they face, may not be observable so you need
to make assumptions
2) Customer profile – observable characteristics
a. Demographics - age, sex, religion)
b. Psychographics - personalities, values, lifestyle
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c. Behavior - shopping habits, price sensitivity, loyalty
2. Competitors:
DO NOT define in terms of a product or category (Coke does not just compete with
Pepsi)
DO define in terms of what customer need is being met
Because you define competitors in terms of a customer, competitors in one market may
be collaborators in another
3. Collaborators
Value is created by BOTH the company and collaborators, not the company alone
Collaborators have complementary resources to the company’s own
4. Company
A company’s motivation and ability to create value is defined by:
Goals – end result they want to achieve (can be monetary and non-monetary)
Resources – assets, competencies, employees, etc.
5. Context – the environment in which a company operates
1. Sociocultural context – social and demographic trends, religions, beliefs
2. Technological context – new techniques, skills, process for making oCerings
3. Regulatory context – taxes, tariCs, IP
4. Economic context – overall economic conditions, inflation, etc
5. Physical context – natural resources, climate, geographic location, health trends
Unlike the other 4-C’s, context defines the environment rather than a specific player in
the market
Value Proposition – The value that and oCering aims to create for the market
participants
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Value is created between the multiple entities – for example, the company receives
value from both the customer and the retailer (collaborator)
OLering must provide superior value to:
1. Customer value – value is determined by
a. Needs of the customer
b. Benefits and costs of the company oCering
c. Benefits and costs of the competitors oCering
2. Collaborator value – need to answer “why would the collaborator choose my
product over the competitor”
3. Company value – must be defined against the company goals and value of alternate
opportunities
This is the 3-V Principle
Failure to create superior value for ANY of the 3 will lead to failure of the business
Marketing Tactics:
Market OLering (Marketing Mix)
NOTE: NO NOT USE 7-P’s – CALL IT MARKETING OFFERING OR MARKETING MIX
1. Product
2. Service
3. Brand
4. Price
5. Incentives
6. Communication
7. Distribution
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Each of the 7 Marketing Tactics are a process of designing, communicating, and
delivering customer value:
Mapping the 3 Summary Tactics into the Customer Impact:
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Customer Value Mapping: 5-C’s to 3-V’s to 7-P’s:
Alternative Frameworks:
4-P Framework:
1. Product (7-P mapping: product + service + brand)
2. Price (7-P mapping: price)
3. Promotion (7-P mapping: communication and incentives)
4. Place (7-P mapping: distribution)
Disadvantages:
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Does not distinguish between product and service
Does not separate Brand from Product
Can be overcome by mapping to the 7-P’s.
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Five Forces (Porter’s 5 Forces) Framework: defines the competitive environment in
which the company competes
1. Power of Suppliers
2. Power of Buyers
3. Threat of New Entrants
4. Threat of Substitutes
5. Rivalry among competitors
5 Forces is an INDUSTRY VIEW vs. 5-C’s which is CUSTOMER CENTRIC
5C’s defines competitors based on ability to fulfill a need and does not care if the
competitors are in the same industry
5 Forces is great at understanding the competitive structure within an industry but does
a poor job of explaining an oCering’s ability to create market value
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Chapter 3 Outline
G-STIC Framework
1. Goal – ultimate criteria for success
a. Focus – defines the metric (strategy or monetary)
b. Benchmark – quantitative and time frame
2. Strategy –
a. Target Market
b. Value Proposition
3. Tactics – Product OCering (Marketing Mix)
4. Implementation – Developing the oCering and deploying in the market
5. Control – evaluating performance in the environment/context
G-STIC and Action-Planning Framework
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NOTE – this is an iterative process
1. Setting the Goal
Focus
1. Monetary Goals
2. Strategic Goals
NOTE - Monetary and Strategic are not mutually exclusive
Benchmarks
1. Quantitative (can be absolute or relative to the market, competitor, or prior
performance)
2. Temporal – need a defined timeframe
3 Main Questions for the Goal: What, How Much, When
Goals to Objectives
Market Objectives – Smaller, more specific goals that enable the ultimate company
goals
1. Customer objectives – aim to change customer behavior (buy or seek more
information)
2. Collaborator objectives – provide greater support for the company goal
3. Company objectives (internal) – improving internal performance + product
4. Competitive objectives – creating barriers to entry, buying IP or resources,
prevent price war
5. Context objectives – less common mainly for large companies, influence
economic, tech, or regulatory environment
NOTE – This is the 5-C’s. If there is not change in the 5-C’s, then the goals are likely not
to be met
2. Developing Strategy
1. Target Market – define with the 5-C’s
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2. Value Proposition – defined in terms of Customer Value, Collaborator Value,
and Company Value (the OVP)
3. Designing Tactics – Market Mix (Market OCering)
4. Defining Implementation – securing company assets and competencies
necessary to implement the oLering
1. Developing Company Resources - securing company assets and competencies
necessary to implement the oCering
a. Business facilities – actual infrastructure
b. Supplier reliability
c. Training employees
d. Developing products, service, and brands
e. Acquiring know-how to develop and manage the oCering
f. Developing communications
g. Developing distribution
h. Access to capital – so they have the money to implement it
2. Developing Market OCering – the steps of actually producing the oCering
3. Commercial Deployment – launching and selling the product
5. Identifying Controls – purpose is to inform the company if they should proceed or
re-evaluate
1. Evaluating Performance – checking vs. benchmark
2. Monitoring the environment – checking for market opportunities or threats
The Marketing Plan – slightly more narrow than business plan but it meant to guide the
company’s actions
1. Define goal and Proposed Action
2. Inform stakeholders of the goal and action
3. ‘Sell’ the goal and action to stakeholders so that they support it
Key Principles
1. Actionable
2. Relevant
3. Clear
4. Succinct
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Structure:
1. Exec Summary
2. Situation Overview
a. Company overview
b. Market overview
3. G-STIC
4. Exhibits
NOTE – should be updated and maintained
Performance Gaps:
1. Incomplete information – assumptions made about unavailable information
2. Logic Flaws – Strategy not consistent with Goals, etc
3. Implementation Errors – poor performance
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Marketing Insight
SWOT
SWOT is basically a re-organization of the 5-C’s
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