Marke&ng 1 - Part 1 –

BA Finance and Accoun-ng

July / August 2020
Prof. Dr. Andreas Stoffers
 The First day….

Some words about myself ….. and you

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 G.S. Tiến sỹ Andreas Stoffers
o Professor of Interna-onal Management
o PhD on the subject of German-Thai rela-ons
o University degree in poli-cal sciences and economics
o Friedrich Naumann Founda-on

o Past:
o German Army (1985-1994), Major
o Deutsche Bank AG (1996-2014)
o European Chamber of Commerce Vietnam (2010-2012)
o Commercial Judge (Munich District Court)
o ASEAN Business Partners GmbH
o European Ins-tute for ASEAN Studies
andreas.stoffers@sdi-muenchen.de
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Agenda
Part I: Basics of Marke&ng
1. Introduc-on to Marke-ng
2. Company and marke-ng strategy: partnering to build customer
rela-onships

Part II: Understanding Marketplace and Consumers

3. Market and Environment
4. Managing Marke-ng Informa-on
5. Consumer Markets and Buyer Behaviour
6. Business Markets and Business Buyer Behaviour

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Agenda
Part III. Designing a Customer-Driven Strategy and Mix
7. Consumer-Driven Marke-ng Strategy
8. Products, Services, and Brands: Building Customer Value
9. New Product Development and Product Life-Cycle Strategies
10. Pricing: Understanding and Capturing Customer Value
11. Marke-ng Channels: Delivering Customer Value
12. Retailing and Wholesaling
13. Engaging Customers and Communica-ng Customer Value
14. Adver-sing, PR and Sales Promo-on
15. Modern Marke-ng Channels

Part VI: Success Factor in Marke&ng: Cross-Cultural Management

16. Outlook: Four Trends in Interna-onal Business and its
Implica-ons on Marke-ng
17. The Role of Culture in Business
18. Recommenda-on for Marke-ng Students
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Structure of the Course

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Structure of the Course

Lectures
16 units

Exercises
8 units

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Structure of the Course

Lectures
16 units

o „Classical“ lecture
o Prac-cal examples
o Q&A
o Diskussion

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Structure of the Course

o Case studies
o Experiments
o Marke-ng research
o Exercises

Exercises
8 units

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Recommenda-ons for Reading

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Part I

Basics of Marke&ng
1. Introduc&on to Marke&ng
1. Introduc-on to Marke-ng

„We see our customers as

invited guests to a party, and we
are the hosts. It's our job every
day to make every important
aspect of the customer
experience a likle bit beker.“

Jeff Bezos, founder and CEO of Amazon

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1. Introduc-on to Marke-ng

“Good marke-ng makes the company look smart.

Great marke-ng makes the customer feel smart.”

Joe Chernov, Vice President of MarkeAng at InsightSquared

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1. Introduc-on to Marke-ng

Vice Chairwoman, GE

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1. Introduc-on to Marke-ng
In this chapter you learn:
o What is marke-ng?
o Understand the marketplace and customer needs
o Designing a customer-driven marke-ng strategy
o Preparing an integrated marke-ng plan and program
o Building customer rela-onships
o Capturing value from customers
o The changing marke-ng landscape

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1. Introduc-on to Marke-ng
What is marke&ng?

“Marke&ng is engaging customers and and managing

profitable customer rela-onships.”
Philip Kotler, Principles of MarkeAng

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1. Introduc-on to Marke-ng
What is marke&ng?

“Marke&ng is a process by which companies create value

for customers and build strong customer rela-onships to
capture value from customers in return.”
Philip Kotler, Principles of MarkeAng

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1. Introduc-on to Marke-ng
What is marke&ng?

Marke&ng is the study and management of exchange

rela-onships. The American Marke-ng Associa-on has
defined marke-ng as "the ac-vity, set of ins-tu-ons,
and processes for crea-ng, communica-ng, delivering,
and exchanging offerings that have value for customers,
clients, partners, and society at large.“

Wikipedia

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 1. Introduc-on to Marke-ng
Understand the marketplace and customer needs
Customer Needs, Wants and Demands
Need to know the time

Needs Wants Demands

States of depriva&on: Form that needs Wants backed by

Physical: take as they are: buying power
food, clothing, shaped by
warmth and safety o culture and
Social: o individual
belonging and personality
affec-on What you would like to What can you afford
Individual: have
knowledge and self-
expression
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 1. Introduc-on to Marke-ng
Understand the marketplace and customer needs

The Marke-ng Process: Crea-ng and Capturing Customer Value

A simple model of the markeAng process

Source: Kotler: Principles (2016), p 31

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1. Introduc-on to Marke-ng
Understand the marketplace and customer needs

The Marke-ng Process: Crea-ng and Capturing Customer Value

o Market offerings are some combina-on of products, services,

informa-on, or experiences offered to a market to sa-sfy a need
or want.

o Marke&ng myopia is focusing only on exis-ng wants and losing

sight of underlying consumer needs.
Chỉ chú trọng vào sản phẩm mà quên mất customers thực sự cần gì

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 1. Introduc-on to Marke-ng
Understand the marketplace and customer needs

The Marke-ng Process: Marketer expecta-ons + Customer Value

o Set the right level of
expecta-on
o i.e. not too high –
not too low
Marketer

Customer

o Value
o Sa-sfac-on

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1. Introduc-on to Marke-ng
Understand the marketplace and customer needs

Concept of Market and Exchange

Market
is the set of actual and poten-al buyers of a product.

Exchange
is the act of obtaining a desired object from someone by
offering something in return.

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 1. Introduc-on to Marke-ng
Understand the marketplace and customer needs

A modern marketing system

Source: Kotler: Principles (2016), p 31

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1. Introduc-on to Marke-ng
Designing a value-driven marke&ng strategy

choosing a
selec&ng developing
value
customers a marke&ng
propo-
to serve strategy
si&on

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1. Introduc-on to Marke-ng
Designing a value-driven marke&ng strategy

The Idea of Marke-ng Management

Marke&ng management is the art and science of choosing
target markets and building profitable rela-onships with them.
Key ques-ons:

o What customers will we serve?

o How can we best serve these customers?

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1. Introduc-on to Marke-ng
Designing a value-driven marke&ng strategy

Market segmenta&on
= dividing the markets into segments of
selec&ng customers
customers
to serve Target marke&ng
= deciding which segments to go auer

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1. Introduc-on to Marke-ng
Designing a value-driven marke&ng strategy

choosing a
Choosing the set of benefits or values a
value
company promises to deliver to
propo-
customers to sa-sfy their needs
si&on

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1. Introduc-on to Marke-ng
Designing a value-driven marke&ng strategy

a) Produc-on concept
developing b) Product concept
a c) Selling concept
marketing
d) Marke-ng concept
strategy
e) Societal marke-ng concept

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1. Introduc-on to Marke-ng
Designing a value-driven marke&ng strategy

a) Produc&on concept is the idea

that consumers will favour
products that are available or
developing highly affordable.
a marke&ng
strategy b) Product concept
c) Selling concept
d) Marke&ng concept
e) Societal marke&ng concept

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1. Introduc-on to Marke-ng
Designing a value-driven marke&ng strategy
a) Produc&on concept

b) Product concept is the idea that

consumers will favour products that offer
developing the most quality, performance and
a marke&ng features and that the organisa-on should
strategy therefore devote its energy to making
con-nuous product improvements.
c) Selling concept
d) Marke&ng
e) Societal marke&ng concept

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1. Introduc-on to Marke-ng
Designing a value-driven marke&ng strategy
a) Produc&on concept
b) Product concept

c) Selling concept is the idea that

consumers will not buy enough of
developing the firm’s products unless it undertakes a
a marke&ng
large-scale selling and promo-on effort.
strategy
d) Marke&ng concept
e) Societal marke&ng concept

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1. Introduc-on to Marke-ng
Designing a value-driven marke&ng strategy
a) Produc&on concept
b) Product concept
c) Selling concept

d) Marke&ng concept is the idea that

developing achieving organisa-onal goals depends on
a marke&ng knowing the needs and wants of the target
strategy markets and delivering the desired
Sa-sfac-ons beker than compe-tors do.
e) Societal marke&ng concept

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1. Introduc-on to Marke-ng
Designing a value-driven marke&ng strategy

a) Produc&on concept
b) Product concept
c) Selling concept
d) Marke&ng concept

developing e) Societal marke&ng concept is the idea

a marke&ng that a company’s Marke-ng decisions
strategy should consider consumers’ wants, the
company’s requirements, consumers’
long-term interests and society’s long run
interests.

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1. Introduc-on to Marke-ng
Designing a value-driven marke&ng strategy

Production Product Selling Marketing Societal

concept concept concept concept concept

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 1. Introduc-on to Marke-ng
Designing a value-driven marke&ng strategy
Star&ng Point Focus Means Ends

The Exis-ng Selling & Profit trough

Selling Factory Products Promo-on Sales Volume
Concept

The
Marke&ng Market Customer Integrated Profit trough Custo-
Concept Needs Marke-ng mer Sa-sfac-on

Differences between a Marketing and a Selling Concept

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 1. Introduc-on to Marke-ng
Designing a value-driven marke&ng strategy

Three considerations underlying the societal marketing concept

Source: Kotler: Principles (2016), p 36
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1. Introduc-on to Marke-ng
Designing a value-driven marke&ng strategy

Development in Marke&ng

Marke-ng 1.0: product driven marke-ng

Marke-ng 2.0: customer centric marke-ng

Marke-ng 3.0: human-centric marke-ng

Marke-ng 4.0: humanised brands in the digital world

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1. Introduc-on to Marke-ng
Designing a value-driven marke&ng strategy

Marke-ng 3.0: Towards a values driven organisa-on

“Marke-ng 3.0 will be very much influenced

by the customer. It is the more sophis-cated
form of customer-centric era where the
customer demands collabora-ve, iconic, and
independent marke-ng approaches.”

Philip Kotler et al: MarkeAng 3.0

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1. Introduc-on to Marke-ng
Designing a value-driven marke&ng strategy

Marke-ng 4.0: Moving from Tradi-onal to Digital

“Power shius to the connected customers.

From ver-cal, exclusive and individual to
horizontal, inclusive and social.”

Philip Kotler et al: MarkeAng 4.0

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1. Introduc-on to Marke-ng
Designing a value-driven marke&ng strategy

Prac-cal Example: Timberland

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1. Introduc-on to Marke-ng
Designing a value-driven marke&ng strategy
New Con-nuum of Marke-ng

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1. Introduc-on to Marke-ng
Preparing an integrated marke&ng plan and program
Development of a Marke-ng Plan
The marke&ng mix = a set of tools (four Ps) the firm uses to
implement its marke-ng strategy. It includes:

o Product,
o Price,
o Promo-on and
o Place.

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1. Introduc-on to Marke-ng
Building customer rela&onships
Development of a Marke-ng Plan
Integrated marke&ng program = a comprehensive plan that
communicates and delivers the intended value to chosen
customers.

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1. Introduc-on to Marke-ng
Building customer rela&onships
CRM: Customer Rela-onship Management
DefiniAon (MarkeAng)

“The overall process of building and maintaining profitable

customer rela-onships by delivering superior customer value
and sa-sfac-on.”
P.Kotler

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1. Introduc-on to Marke-ng
Building customer rela&onships
CRM: Customer Rela-onship Management
DefiniAon (technical)

“Customer Rela-onship Management (CRM) is a strategy for

managing all your company's rela-onships and interac-ons with
your customers and poten-al customers. It helps you improve
your profitability.
More commonly, when people talk about CRM they are usually
referring to a CRM system, a tool which helps with contact
management, sales management, workflow processes,
produc-vity and more.”
www.salesforce.com

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1. Introduc-on to Marke-ng
Building customer rela&onships

Rela-onship building blocks: customer value and sa-sfac-on

Customer- Customer
perceived value sa&sfac&on
• The difference • The extent to
between total which a product’s
customer value perceived
and total performance
customer cost matches a buyer’s
expecta-ons

Cus' Value - Cus' Cost

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1. Introduc-on to Marke-ng
Building customer rela&onships
Example: Ritz-Carlton Service Values
Put the customers in the center

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1. Introduc-on to Marke-ng
Building customer rela&onships
Example: Ritz-Carlton Service Values

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1. Introduc-on to Marke-ng
Building customer rela&onships
Customer Rela-onship: Levels and Tools

Full Partnerships

Basic Rela-onships

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1. Introduc-on to Marke-ng
Building customer rela&onships
Intensifying the Customer Rela-onship: Loyalty Programmes

LuVhansa “Miles and More”

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1. Introduc-on to Marke-ng
Building customer rela&onships
Intensifying the Customer Rela-onship: Loyalty Programmes

Accor “Le Club”

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1. Introduc-on to Marke-ng
Building customer rela&onships
Intensifying the Customer Rela-onship: Loyalty Programmes

Payback Germany

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1. Introduc-on to Marke-ng
Building customer rela&onships
New Development in Customer Rela-onships (1)
o Dealing with more carefully selected customers in order to
use selec-ve rela-onship management targe-ng fewer,
more profitable customers.

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1. Introduc-on to Marke-ng
Building customer rela&onships
New Development in Customer Rela-onships (2)
o Dealing more deeply and interac&vely by incorpora-ng
more interac-ve two way rela-onships through blogs,
websites, online communi-es and social networks.

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1. Introduc-on to Marke-ng
Building customer rela&onships
New Development in Customer Rela-onships (3)
o Customer-managed rela&onships: Marke-ng rela-onships
in which customers, empowered by today’s new digital
technologies, interact with companies and with each other
to shape their rela-onships with brands.

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1. Introduc-on to Marke-ng
Building customer rela&onships
New Development in Customer Rela-onships (4)
o Partner rela&onship management involves working closely
with partners in other company departments and outside
the company to jointly bring greater value to customers.

o Partners inside the company is every func-onal area

interac-ng with customers
o Electronically
o Within Cross-func-onal teams

o Partners outside the company is how marketers connect

with their suppliers, channel partners and compe-tors by
developing partnerships.

o Supply Chain Management / Value Chain Management

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 1. Introduc-on to Marke-ng
Capturing Value from Customers
Crea-ng Customer Loyalty and Reten-on
Selling different kinds of product at a time Sum of all the
Customer profits you make
Cross-Selling Life&me from the lifetime
Ra&o Value periods of the
-CLV- customers
-CSR-

Market
Share Share of
Customer

To be conAnued
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1. Introduc-on to Marke-ng
Capturing Value from Customers

Defini-on: Customer Life&me Value (CLV)

Customer is the value of the en-re stream of
Life&me purchases that the customer would make
Value over a life-me of patronage.
-CLV-

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1. Introduc-on to Marke-ng
Capturing Value from Customers

Customer
Customer
Customer
Lifetime Defini-on: Customer equity is the
Customer
Lifetime
Customer
Lifetime
Value
Lifetime
Value total combined customer life-me
-CLV-Life&me
Value values of all of the company’s
Value
-CLV-
Value
-CLV- customers.
-CLV-
-CLV-

Right rela-onships with the right customers involve trea-ng

customers as assets that need to be managed and maximised.
Different types of customers require different rela-onship
management strategies.
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1. Introduc-on to Marke-ng
Capturing Value from Customers

Defini-on: Share of customer / Share of wallet is the

por-on of the customer’s purchasing that a company
gets in its product categories.

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1. Introduc-on to Marke-ng
The Changing Marke&ng Landscape

o In the digital age people are connected con-nuously to people

and informa-on worldwide.
o Marketers have great new tools to communicate with
customers.
o Internet + mobile communica-on devices create a new
environment for online marke-ng.

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1. Introduc-on to Marke-ng
The Changing Marke&ng Landscape
The world is full of changes....
o Digitalisa-on
o Globaliza-on
o Aging socie-es
o Mobility and Migra-on
o Interna-onalisa-on
o Gender equality
o Poli-cal Correctness
o Environmental issues
o „Cashing-out“
o Down-Aging
o Renaissance of religion
o Indiviualisa-on („Egonomics“)
o Hybrid customers
o Social Media
o Non-profit-marke-ng
o ....
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 1. Introduc-on to Marke-ng
Summary: An Expanded Model of the Marke&ng Process

Source: Kotler: Principles (2016), p 54

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