Marketing and Management

What is Mgt?

Process of communicating, coordinating, + accomplishing action in pursuit of goals

Challenges to mgt

• 1-size-fits-all approach doesnt work

• hierarchical structure is outdated

  • mgt needs to understand human complexity (diff working styles, workplace intelligence, etc.)

Kissinger sees leadership as…

“Historically grounded, visionary, + strategic”

What are Values, how do they help us, and what are they affected by?

A set of beliefs that guide what we consider important, desirable, + right/wrong

• help us manage culture, diversity, and communication

Affected by how we perceive the world

Describe the different components to values + why interaction may cause tension

Personal component =a personal value

Social component = social values

Interaction can cause tension bc sometimes personal values do not equal social values

What do values in management allow people to do?

Form, sustain, + improve relations; motivate people.

(ex: knowing your millennial colleague cares about sustainability and incentivizing work with an electric vehicle)

Personality

Personality = characteristics + internal states of mind that help explain behavior

Leadership is…?

process of directing, controlling, motivating, + inspiring members twds goals

Essential Leadership Traits

1. Integrity → being honest + having strong moral principles

2. Communicator → ability to inspire, communicate w/, and listen to a wide range of people

3. Self-aware → reflexive abt one’s strengths + weaknesses

4. Respectful, kind → easy to work w

Types of Leaders

1. directive = discipline. Has goals, wants to get them. (ex: Paris Geller)

2. Supportive = shows concern for others (ex: Jess Day)

3. Participative = actively seeks + encourages input from others (ex: Leslie Knope)

4. Achievement = competitve. wants to win. expects people to put in 100% (ex: Dr. Bailey from Greys = “The Nazi”

5. Networking = social ladder climber; uses power to get resources, achieve goals, + create/maintain positive relationships

6. Values-based = skilled in inspiring others by ensuring the org + its people share a mission (ex: Ted Lasso)

Perception

lens through which we see the world

• processing + absorbing stimuli to understand the world around us

Sensemaking vs Storytelling

Sense-making = internal; making it make sense to us

• using past experiences to explain present uncertainties/novelties

Storytelling = external tool; help others make sense of a situation

• sharing norms + values

• sharing an understanding + commitment of org through stories

  • extent of member’s familiarity w dominant story of org reveals level of adaptation to org norms + values

Statesman vs. Prophet Archetype

Statesman:

• realism

• pragmatic

• diplomatic skill

  • negotiation + alliance-building

(ex: Thatcher)

Prophet

• visionary idealism

• radical change

• moral imperative

• charismatic authority

(ex: De Gaulle)

Organizational Design

formal structure of making organizations a system of roles, responsibilities, + decision-making

Taylorism (aka scientific management)

organizing work through standardization of time and routinization of motion

4 principles of taylorism

1. develop science of work through observation, measurement, + time studies (ex: Paris Geller stopwatch)

2. scientifically choose and train employees, making sure each job develops an employee’s full potential

3. integrate methods with proper training

4. promote collaboration + specialization

Fordism

management system that combines mass production and division of labor to increase efficiency + minimize costs (assembly line)

Characteristics of Fordism

• formalized structure

• long chains of command

• high degree of specialization

Led to rigid hierarchy of authority

Fayol’s management principles

1. Order → all people and things had a correct place

2. Authority → the right to give orders and have power must be established

3. centralization → top-down decision approach

Max Weber + Bureaucracy

wanted orgs to act rationally to achieve their goals

• clarified leadership structure + decision-making rules

Legal-Rational Authority

• said authorities lied in positions/offices (has to be earned by working, not the person)

• dominance is easier to exercise if it was based on legitimacy

Weber’s 3 main principles of legitimacy

1. charismatic authority: obedience would be given bc of a leader’s power + extroardinary actions (ex: Nelson Mandela)

2. Traditional authority: obedience would be given bc of tradition (ex: simon @ head of thanksgiving table)

3. Rational-legal authority: person’s authority established based on laws/rules (ex: president being elected)

Social Constructionist

Developed by Karl Weick

some objects in the world are constructed, negotiated, and organized by people to make sense of happenings in the world

(ex: Money; there was no explanation for value so we had to create one)

Weick chapter summary

proposed that “infrastructure” for impermanent orgs relies on storytelling + sense-making rather than traditional hierarchies

• orgs are enacted procedures, not fixed structures

• “people enact the environment they face”

• focus = sense-making, interaction, meaning-making

Weick vs. Hofstede on Organizations

Weick:

• orgs as processes

• fluid, emergent

• focus on sense-making, interpretation

• @ the micro level (within orgs)

Hofstede

• orgs as formal structures

• stable dimensions

• culture-shaping behavior

• macro level (national culture)

Political skill

ability to understand others @ work and use that knowledge to influence others to act in ways that enhance personal/org goals

Dimensions of political skills

1. Social astuteness – the ability to observe others and the surrounding social setting. 

2. Interpersonal influence – the capacity to adapt or shift one’s own behavior to others in order to gain connections and influence. 

3. Networking ability – the capacity to develop social networks and position themselves adeptly in organizational settings.

4. Apparent sincerity – individuals will demonstrate an inherent integrity, authenticity, sincerity, and genuineness

Opportunities for political skills

• individuals can use political skill to. get a job

• utilize job opportunity for personal + org gain

• manager job performance (political skill. = strongest predictor of performance)

• org commitment

• teams (those w political skills develop greater team efficiency and trust)

Globalization

interdependence of countries’ economies, cultures, + political systems driven by tech, trade, and free movement of people + capital

How did De Gaulle demonstrate charisma?

He implemented sensemaking to command loyalty from French citizens and the military.

How did De Gaulle demonstrate moral imperative?

Acted based on how France should be not what it was

How did De Gaulle demonstrate visionary idealism?

Was driven by the vision of France’s former glory on international stage

How did De Gaulle demonstrate institutional disruption?

• He challenged and dismantled the systems of the 3rd and 4th French Republics

• Created 5th republic framework and new Constitution to increase separation of powers

Hofstede's Cultural Frameworks (6)

1. Individualism vs. Collectivism

2. Femininity vs. Masculinity

3. Indulgence vs. Restraint

4. Longterm vs. Short-term Orientation

5. Uncertainty Avoidance

6. Power Balance

SOSTAC

1. Situational Analysis → where are we now?

2. Objectives → where do we want to go?

3. Strategy → how will we get there?

4. Tactics → how exactly will we get there?

5. Actions → who does what, when, how?

6. Control → are we on track?

What is the difference between Risk and Uncertainty?

Risk = measurable (outcome is not known with certainty, but probabilities are known or can be estimated.) You can calculate likelihood and manage it

Uncertainty = unmeasurable (outcomes and probabilities are unknown. Cannot be quantified with confidence)

Johari Window

Open area → Known Knowns = things we are aware of and understand

Blind area → Known to others but not the self = things we know we do not understand

Hidden area → Known to self but not known to others = things we overlook or take for granted, but data exists

Unknown Area → Unknown to self, Unknown to others = things we are unaware of and can't predict

What are the 3 Levels of Situational Analysis? Provide examples of each and determine which framework to use.

1. Macro (often invisible; Ex: trends, PESTEL framework, influence strategy and outcomes)

2. Meso = market (Porter's 5 Forces; suppliers, partners, competitors)

3. Micro = non-market (Hofstede’s; customer behavior, internal company factors)

How do market forces directly shape competitive landscape?

Industries with high levels of competition are seen as less attractive due to more pressure on profit margin

How are Porter's 5 forces limited?

It disregards partnerships, ecosystems, etc.

Describe the Cultural Iceberg

Observable: Behaviors + practices

Not Observable: Perceptions, attitudes, beliefs, values

Criteria for Objectives

Objectives must be SMART

1. Specific

2. Measurable

3. Achievable

4. Relevant

5. Timely

Ex: Increase organic website traffic from qualified leads by 20% within the next quarter

What is the difference between Strategic and Tactical Objectives?

Strategic = long-term (1-5 years), directional, big picture @ business or department level.

Tactical = short-term (quarter-quarter), operational, execution focused @ functional or team level.

What is the difference between KPIs and OKRs?

KPIs = continuous, backward looking. They monitor how well progress is happening on ongoing activities. Assessed on an on-going basis.

OKRs = How do we know we are making process? Forward looking, broad + across all teams. Assessed quarterly.

Ex: If the company were a car, the KPIs would be the dashboard that monitors how fast the car is going, and the OKRs would be the GPS telling the car (company) where to go and how to get there

What is the most important question customers are asking?

WIIFM? -> What's in it for me?

3 ways companies can achieve market leadership. Provide definitions, examples, and downsides for each

1. Operational Excellence = basic services, no frills. Ex: Costco, Zara. Ikea

- Downside: Low margins per sale, limited room for customization

2. Product Leadership = focused on the best product. Ex: Tesla, Apple, Dyson.

- Downside: High cost

3. Customer intimacy = Customer-driven. Ex: Nordstrom, Bentley

- Downside: High cost/customer

List ways you can Segment (STDP)

1. Geographic

2. Demographic

3. Psychological

4. Behavioral

STDP Model Steps

1. Identify a set of differentiating competitive advantages on which to build a position

2. Choose the right competitive advantages

3. Select an overall positioning strategy

Phase 1: Product Development

1. Investment

2. Sales have not begun

3. New product ideas are generated, operationalized, and tested

Phase 2: Launch

1. High costs

2. Slow sales

3. little or no competition

4. demand has to be created

5. customers have to be prompted to try the products

6. makes little money @ this stage

Phase 3: Growth

1. costs reduced

2. sales volume increases

3. profitability begins to rise

4. public awareness grows

5. competitons begins to increase w a few new players in establishing market

6. increased competition leads to price decreases

Phase 4: Maturity

1. costs are lower as production volume increases

2. sales volume peaks and market saturation is reached

3. new competitors enter the market

4. prices drop due to proliferation of competing products

5. differentiation/diversification emphasized to mainting/increase market share

6. profits decline

Phase 5: Decline

1. costs increase due to some loss of economies of scale

2. sales volume declines

3. prices and profitability diminish

Explain the four components of the Product Market Expansion Diagram

1. Market Penetration: Existing product in existing market (no changes, easiest)

2. Product Development: New product in existing market

3. Market Development: Existing product in new market

4. Diversification: New product in new market (hardest)

What are the levels of a Product?

1. Core product -> how it benefits the customer

2. Actual product -> tangible, physical product

3. Augmented product -> non-physical, added-value

Pros and Cons to Individual Brand Positioning

Pros:

1) Brands can be fully tailored to specific markets or segments: tone, message focus on relevant benefits.

2) Product failure = limited impact on corporate brand or other products

Cons:

1) High marketing costs

2) Possible cannibalization between brands in the same portfolio

Pros and Cons for Umbrella Brand Positioning

Pros:

1) Strong parent brand equity carries over

2)Lower marketing cost

3) Faster market entry

4) Long-term trust and familiarity

Cons:

1) 1 failure damages the entire brand

2) One-size-fits-all positioning

Describe the Bullwhip Effect

small changes in consumer demand can lead to progressively larger fluctuations in orders as you move up the supply chain

4 Methods to Determine Price

1. Cost-based (direct + indirect + margin)

2. Value-based (what is the customer WTP?)

3. Competition-based (what are competitors' prices and how do we respond? Match? Undercut?)

4. Product based (synergy bw product lines)

If you are offering a service, what happens to the 4 Ps of marketing?

They increase to 7

1. Product

2. Place

3. Price

4. Promotion

5. Physical Environment

6. People

7. Process

What does Porter's Five Forces show?

If an industry is profitable, where competition comes from, where to compete (industry), and how to compete (strategy + positioning)

Traditional Marketing Funnel

1. Awareness - people become aware of a problem they want solve

2. Consideration - people start looking into products/services that can solve their problem

3. Conversion - prospects find a paying solution that they like and become paying customers

4. Loyalty - customers continue using the product/service AND recommend it to others

Value proposition statement

the set of benefits or values a product promises to deliver to consumers to satisfy their needs

To (target segment and need) our (brand) is (concept) that is (point of difference)

What is Laddering?

Theory that states customer purchase decisions have a hierarchy

1. Attributes and features (tangible, observable traits)

2. Consequences/Benefits (functional/emotional outcomes)

3. Values and goals (life aspirations driven by behavior like honesty, freedom)

Ex: Hokas

1. Attributes + features = actual shoe; comfort, design, etc.

2. Benefits = keeps foot protected

3. Values + goals = personal health + fitness goals

What is brand equity and what are the results?

Brand equity = added value a brand adds to a product that goes beyond its functional benefits

Results = premium pricing, customer retention, market power

Ex: Apple

Apple has strong brand equity so they’re are able to charge high prices, their customers have an Apple ecosystem, and they hold a lot of market power in the tech market

Tactics of marketing employ...

the 4 (or 7) P's of marketing

How can brands increase preference?

Increase familiarity. More exposure = more familiarity = more likely to buy

However, you must use the same message across all channels (if you advertise safety as your car's brand, you can't market it's speed or horse power later)

What is Nudging?

Nudging = SUBTLY encouraging people to take a certain action

Ways to Nudge?

1. Default options (ex: all cookies enabled)

2. Sense of urgency (ex: Sale wont last!)

3. Sense of scarcity (ex: only 3 left!)

4. Social proof (ex: most people choose this deal)

5. Anchoring (ex: bundle deal, customers also bought)

6. Reciprocity (ex: you do something for me I'll do something for you; if customers give websites their email, the customer gets 10% off or free shipping)

System 1 vs System 2 Thinking

System 1 = fast, autopilot, implicit; fight/flight

System 2 = slow, deliberate, strategic

Marketing and nudging wants to encourage system 1 thinking so that people don't have to think before they buy

System 1 Thinking Impact on Consumer Decisions

- people don't read carefully

- people don't evaluate rationally

- people are easier to cues and nudges

Types of Campaigns

1. Awareness

2. Media

3. Marketing

4. Push

5. Product Launch

6. Brand Launch

7. Rebranding

RASCI Matrix

Responsible: executes tasks + ensures their completion

Accountable: owns success of task + answers for its outcome

Supportive: provides resources + assistance to ensure successful completion

Consulted: offers expertise + insights to inform decision-making

Informed: stays updated on progress + outcome of task

Ex: Website Design

• Develop a new home page → Web designer is RESPONSIBLE for that

• Project manager is ACCOUNTABLE for project success, making sure the new home page is finished

• Supportive

• Marketing team is CONSULTED to make sure the page is visually appealing and hits all the marks

• CEO is informed bc he doesnt need to do anything except check back in to see if it was done

How is the RASCI Matrix helpful?

- helps avoid double work

- avoids things falling through the cracks

- ensures everyone is on the same pg

- supports ownership

Campaign Steps

- Why = what are your goals/what do you want to achieve

- Who = target audience, what they care abt, and where you will find them

- What = what do you want to communicate?

- How = How will you reach your audience? How will you measure success?

- When = When will your campaign run + for how long?

What is remarketing?

a digital marketing strategy that targets ads to people who have already interacted with a brand's website or app but haven't completed a desired action

User visits website, leaves site, sees ads on other site for product, and visits site again

What is control?

Control = aims to link metrics and outcome

Control = measuring and monitoring performance against objectives we have set and using the data to learn and improve

Core question: are we achiebing what we set out to do?

Marketing Funnel Category of KPIs

1. Awareness → reach, impression, brand recall

2. Consideration → CTR, time on page, engagement

3. Conversion → signups, sales, cost/lead

4. Loyalty → repeat purchases, churn

Advocacy = NPS, reviews, referrals

4 experiment families and how they work together and their SOSTAC phase

1. Perception -> what do customers value? (Situation)

2. Message -> what message works best? (strategy)

3. Behavior -> what makes customers act (Tactics/action)

4. Impact -> did it actually work? (control)

How to test perception

- blind testing

- packaging/design test

- perception mapping

How can we change our message?

- focus on language, visuial, tone, emotion

- figure out which message resonates with each segment

How to test our message

- A/B testing

- emotional vs rational appeal tests

- tone of voice experiments

Ex: Capri-Twist

• A/B = “your childhood fav, all grown up” vs. “sweet with every sip”

• Emotional vs rational = nostalgic commercials vs data as #1 kid’s drink

• Lidl sarcastic slogan vs non-sarcastic slogan

A/B testing

A/B testing = a controlled experiment controlling 2 versions to see which performs better

- only 1 variable changes at a time

1. Start w clear hypothesis

2. test both versions w similar audiences

3. track a specific KPI

4. implement the winner

Behavior

what makes customers act?

- nudges

- price sensitivity testing

- offer/promotion testing

Impact

did it actually work? → focus on measuring outcomes

-pre/post campaign measurement to prove causality

- control group testing

Common Mistakes in all experiment families

1. too many testing elements at once

2. no statistical confidence (sample size too small or test stopped too early)

3. focus on wrong or vanity metrics

4. unclear hypothesis

5. ingored context

Customer Journey Map Planning

Awareness: PR, word of mouth, radio/TV

Consideration: Search, email, paid content

Purchase: Website, mobile app, site

Service: online chat, call center

Loyalty expansion: promotion, blog, newsletter

Blue Ocean Strategy

Creating a new market where competition isn’t yet established

Porter’s 5 Forces

Threat of New Entrants = How easy is it for others to enter the market?

Bargaining Power of Supplier = What leverage do they have: price, conditions, dependency?

Bargaining Power of Buyers = How much choice do they have? How sensitive to price?

Threat of Substitutes = Are there alternative products that satisfy the same need?

Rivalry Among Existing Competitors = How intense is the competition within the industry?

Trend #1- SAVE Model

1. Solution - position product as a solution to customer needs

2. Access - multi-channel presence for availability

3. Value - communicate the product’s value not just its price tag

4. Education - Provide relevant info to guide informed decision making @ each step in customer journey

Trend #2 - Flipped Funnel

1. Retention - keep customers happy after they buy

2. Activation - encourage repeat purchases

3. Community - creating customer network around brand

4. Advocacy - turning customers into brand promoters

Ex: Edikted on college campuses

1. keep customers happy

2. encourage repeat customers through discounts

3. create customer network (ex: sorortities)

4. customers become brand embassadors

Advantages to Flipped vs Traditional Funnel

1. Cheaper

2. more profitable

3. stronger brand reputation

Traditional Funnel Characteristics

main goal = expansion, acquire new customers ASAP

short sales cycle, quick conversions

best for new company, new product launch

Trend #3 - Donut Model

1. marketing is not about selling more but abt creating long-term value for people and planet

2. Customers trust and prefer brands that focus on sustainability and have a clear purpose

   1. if not, market share is lost and reputation is damaged

Greenwashing

Making false/misleading sustainability claims

Trend #4 - The 3H model

3H Model = content strategy for digital platforms

1. High-impact campaigns (Hero)

   1. push-content designed to generate mass awareness

2. Regular engagement (Hub)

   1. regularly scheduled content to improve engagement and UX

      1. for some reason i think of good mythical morning

3. Useful content (Hygiene)

   1. “pull” content design for core audience, boosts content depth and site relevancy

Trend #5 - Experience Model

Goal = increase emotional connection, make customers part of the experience

Customers are WTP a premium, higher customer retention and NPS

4 Realms of Customer Participation and Connection

1. Entertainment

2. Educational

3. Aesthetic

4. Escapist

Passive vs Active participation

Passive = observational (ex: art museum)

Active = Integrated (ex: escape room)

Trend #6 - AI in marketing

AI in marketing = use of machine learning and automation to analyze data, predict trends, and personalize customer interactions

ex: content creation, customer segmentation, chatbots