MKTG 2030 Chapter 1-11: Marketing-Textbook-Lecture-Notes
Chapter 1: What Do Winning Organizations Do Well?
SLIDESHOW NOTES
Winning organizations:
➢ Devise and flawlessly execute clearly stated, focused marketing strategies.
➢ Create superior value for customers & provide competitive advantage
➢ Simple value proposition based on deep understanding of customers
Marketing: Disciplined process to solve business problems
➢ Disciplined= analytics & creativity
➢ Process= strategy & execution
➢ Problems= exploiting opps., dealing with potential threats, what’s generally viewed as
problems
Marketing led organizations
➢ Strong customer orientation
➢ Focus on long-term revenue, profit, & cash flow growth
➢ Serious commitment to R&D, product innovation
➢ Substantial investment to build & maintain brand equity
Production led organizations
➢ Products sell themselves
➢ Demand exceeds supply
Sales led: Short term focus… “one & done”
Marketing Tasks
➢ Identify: Any businesses that we should be entering/exiting?
➢ Segment & target markets: How should market be carved up & who should we appeal
to/serve?
➢ Develop a marketing strategy: What is being offered that’ll differentiate us from
competition and appeal to potential customers
➢ Implement marketing strategy flawlessly: Rubber meets road (but many businesses fail)
➢ Assess & innovate: Always look for ways to do things better/differently
➢ Provide a competitive advantage to sales force: Arm them to make sure successful sales
➢ Be the customer’s champion: the voice of the customer
➢ Build customer-focused business
➢ Move marketing accountable: Marketing should be a force transforming full organization
➢ Be a change agent: There is always a better way to do things
#1- Understand Customers
➢ Different customers have different needs; businesses must ask “which customers do we
want to serve?”- Market segmentation & targeting (target marketing): Involves
recognizing different groups based on needs; leads to more liability
o Helps in serving needs better, utilizing resources more effectively, &
discovering unmet needs.
➢ Often they have trouble articulating them
➢ Must determine which customers to serve
➢ Are Tim’s and Starbuck’s satisfying the same needs or serving the same customers?
➢ At end of step #1, customers should have been segmented and a target customer to
serve should have been chosen. Don’t be greedy, you can’t serve everyone.
#2- Create Customer Value
➢ Create customer value by considering marketing mix
➢ Summary of Bruce Philp’s quote: Consumer’s trust and patience is important as job of
marketing is to ensure brands compete year after year, not just generate high profits
➢ Marketing Mix: Product, price, channel, & marketing communications
#3- Deliver Customer Value
➢ Remember devise and flawlessly execute?
➢ How will those strategies be brought to life?
➢ Marketing plan: “go-to market” strategy, specifies what target segments it will
serve, how it’ll serve them, & how it will win by differentiating itself from
competitors. “Understand-create-deliver-manage customer value marketing
process” is 4 step process. End goal of first step is to segment & target
customers. Customer value created by using marketing mix elements of product,
price, channels, & marketing communications strategies.
➢ Many marketing strategies are implemented by marketing function e.g. (building strong
brands), but also by sales, customer service, and shipping.
➢ Purpose: Deliver value created for customer: marketing strats. have to be translated into
sales strats. & other functional strats. Organization must align functions to focus on
customer (a.k.a. customer focus)
➢ Important role of marketing plan: Contextualizes market for other functions by outlining
market conditions, customer segments being targeted, how organization will create value
for customers, & how business will differentiate from competitors.
#4- Manage Customer Value
➢ Feedback loop- review strats. & change to keep ahead of changing market conditions
➢ Make changes to ensure customer satisfaction, customer review & optimization, new
segments, & right product mix
The 10 Tasks of Marketing: Identify opportunities, segment & target markets, develop a
marketing strategy, implement marketing strategy, assess and innovate, provide a competitive
advantage to sales force, be the customer’s champion within the organization, build a customer-
focused business, make marketing accountable, & be a change agent within organization (pg 16)
When an organization is not marketing led: Unclear agreement on what marketing is and its role;
business focused on cost reduction & market share, not on a customer focus and developing
strong brands (chart on page 19).
Chapter Summary Notes
➢ Winning organizations develop superior marketing strategies & implement strategy by
engaging rest of organization.
➢ Marketing: Disciplined process to solve business problems (e.g. increased comp.,
commoditization of g&s, & increasing customer price sensitivity.
➢ Final step: Evaluate marketing strats. to assess customer satisfaction & adjust
segmentation, customers served, & product mix.
➢ Champion customers, demonstrate marketing value, & be change agent > strategy
formulation/implementation
Document Summary
Devise and flawlessly execute clearly stated, focused marketing strategies. Create superior value for customers & provide competitive advantage. Simple value proposition based on deep understanding of customers. Problems= exploiting opps. , dealing with potential threats, what"s generally viewed as problems. Focus on long-term revenue, profit, & cash flow growth. Substantial investment to build & maintain brand equity. Sales led: short term focus one & done . Develop a marketing strategy: what is being offered that"ll differentiate us from competition and appeal to potential customers. Implement marketing strategy flawlessly: rubber meets road (but many businesses fail) Assess & innovate: always look for ways to do things better/differently. Provide a competitive advantage to sales force: arm them to make sure successful sales. Be the customer"s champion: the voice of the customer. Move marketing accountable: marketing should be a force transforming full organization. Be a change agent: there is always a better way to do things.
