Marketing Exam Notes
All The Frameworks
Porter’s Five Forces
Potential Entrants, Suppliers, Buyers, Substitutes, Rivalry Among Existing Firms
The Business Macroenvironment (PEST)
Political / Legal
Economic / ecological
Social / Cultural
Technology
Situation Analysis (SWOT): Strengths, Weaknesses, Opportunities, Threats
Situation Analysis (5Cs): competitors, climate (environment), collaborators, customers,
company
Customer: DMU, DMP, Value Driver, Segment, Acquisition & retention, size growth
potential
Marketing Strategy (STP): Segmentation, Targeting, Positioning
Marketing Mix (4Ps): Product, Price, Place, Promotion, Evaluation of Alternatives
Implementation & Monitoring: implement decision, monitor & control, adapt & renew
Profit = [Mkt. demand x mkt. Share x (Rev. per buyer – V Cost per buyer)] – Fixed Cost
Set profit to zero for break-even, but don’t forget cannibalization
Value Cycle
comparative advantage, value proposition, competitive advantage, perceived value, sales
share and profit leadership, customer equity, superior market value, market orientation
Segmentation Scheme (AMISH): Per Market Segmentation PPT
oAccessible, measurable, identifiable, sustainable, homogenous
ATR (used in test marketing): Awareness, Trial, Repeat
Pricing Strategy:
i. know how buyers value your offering (EVC, competitor pricing),
ii. assess price sensitivity (elasticity, conjoint),
iii. look for variation (ex: across countries),
iv. anticipate competitive response,
v. identify appropriate pricing structure,
vi. check consistency with overall strategy,
vii. assess response and fine tune,
viii. assess whether it’s worth it to serve customer
NTT DoCoMo
Customer segmentation. Do a DMP, DMU.
Barco
Marketing myopia
oFailure to adequately define, understand, anticipate and/or respond to the
marketplace and marketplace dynamics
oNarrowly focusing on one aspect of the organization, rather than taking a
balanced approach
oCauses: organizational inertia, internal focus is easier, each function has its own
ideas, human judgment is involved
Market oriented firm vs. technology oriented firm
Marketing Myopia – Theodore Levitt
Shadow of Obsolescence
oNo such thing as a growth industry, only companies organized to take advantage
of growth opportunities. Four danger signs:
Belief that growth is assured by expanding and more affluent population
Belief that there is no substitute
Too much faith in mass production and in the advantages of rapidly
declining unit costs as output rises
Preoccupation with a product that lends itself to scientific
experimentation, improvement and manufacturing cost reduction
Production Pressures
oConcern yourself with marketing not sales (volume)
Dangers of R & D
oDon’t pay too much attention to r & d at the expense of considering marketing
oDon’t believe that a great product will sell itself
SalesSoft
Must understand DMU and DMP, can’t just have a great product
who is involved, has power; use of information; stages of purchasing
Customer Analysis Tools
Customer Activity Cycle- customer’s view of benefits/costs of your product from
pre-consumption to consumption to post-consumption
Economic Value to the Customer (EVC)- differentiation over reference value
i. Ex: reduced startup and turnover, reduced sales cycle and implementation
costs
Market Segmentation
Determines target market and who competition is
Dolan Article: Low-tech Marketing Math
Important!
Can calculate break-even point (# of units)
Can convert to share of market
Profit Drivers = revenues – costs
Sales volume x price; variable + fixed costs
Numbers are more useful when there’s a benchmark to compare to
Black and Decker
oImportant! A lot of good stuff in the Marketing Plan PPT!
oKnow target audience: DMU, DMP, Values
oPerform a 5C analysis
oMarketing metrics: monitor performance, be willing to change, watch new opps. And
threats
oBreak even analysis: $0 = Q (P-VC)-FC
oSee the notes for Mark-up and Cannibalization
Citibank
Case
Continuous debate in whether to create a global brand or go local. Answer is of course
finding the right balance, i.e. globalize where you can, adapt where you must.
Standardize globally to increase efficiency, adapt locally to increase effectiveness
Think about the costs & benefits before deciding whether to globalize or localize in each
area:
Positioning
Product
Price
Promotion
Place
Segmentation
Group Buyers on the basis of similar needs & responsiveness to marketing mix
Develop profiles
Evaluate the segmentation scheme (AMISH)
Targeting
Target based on segment attractiveness and competitive position
Portfolio models provide important input at this point (BCG, GE)
Positioning
Identify drivers of perceived value for target customers
Determine the relative importance of each value driver
Determine how current offerings (company and competitors) are perceived
Select an appropriate positioning strategy (positioning sentence)
Monitor the value proposition and allocate resources to support it
Article
The Lure of Global Branding – Aaker & Joachimsthaler
Companies should work on creating strong brands in all markets through global brand
leadership, i.e. using organizational structures, processes and cultures to allocate brand-
building resources globally, to create global synergies and to develop a global brand strategy
that coordinates and leverages country brand strategies:
oSharing insights and best practices
oSupporting global brand planning
oAssigning responsibility
oExecution
Segmentation, Targeting and Positioning Presentation
Segmentation
oDetermines Organizational Systems and Structure, Investments in Technology,
Required Skills and Resources, Etc.
oDefines who is – and who isn’t – a competitor
oWhy do we segment?
oMore accurate information about value drivers
oBetter focus for marketing efforts
oTo improve competitiveness
oEven a monopolist will be better off
oSegmentation is not just classification, demographics or product differentiation
oGroup people based on similar needs, develop profile, evaluate scheme (AMISH)
