Marketing 301

Marketing (AMA definition)

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Marketing (Philip Kotler)

The science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit.

Marketing (Seth Godin)

The generous act of helping someone solve a problem. Their problem. Marketing helps others become who they seek to become.

Marketing (Guy Kawasaki)

A marketer's job is to present the unique value of the company, products, and services to the customer; it is essential to understand the intention of the market and the customer's wants and needs.

Marketing (Neil Patel)

The act of promoting and selling products or services; everything from research and product development to creating strategies that engage potential customers. It lays the groundwork for a brand's relationship with its audience.

Marketing (Forbes)

Every part of a plan to turn a prospective consumer into a happy, satisfied customer - from market research to advertising. Goal: convince people the product is worth investing in, build brand loyalty and increase sales.

Marketing (Wikipedia)

The act of acquiring, satisfying and retaining customers; a primary component of business management and commerce.

Which source defined marketing as 'the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit'?

Dr. Philip Kotler

Which source defined marketing as 'the generous act of helping someone solve a problem'?

Seth Godin

Which source defined marketing as 'the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings'?

AMA (American Marketing Association)

Marketing 1910-1920

Marketing vs merchandising. Marketing = producer's point of view of distribution (does not include sales); merchandising = retailer's point of view (includes sales).

Marketing 1920-1930

Defined mainly as the distribution and transfer of goods from producers to consumers; emphasis on logistics and facilitation of exchange.

Marketing 1930-1940

Broadened to cover all business activities involved in moving goods to market: marketing planning, research, and creating time- and place-related utility.

Marketing 1940-1950

Shift from static, functional definitions to dynamic managerial perspectives; emphasis on the consumer viewpoint beyond distribution. Managerial focus: planning and control.

Marketing 1950-1960

Systems thinking and theoretical refinement: markets' heterogeneity, differential advantage, exchange as value-matching. Managerial, societal, qualitative and quantitative dimensions.

Marketing 1960-1970

Marketing seen as a societal and systemic function (how marketing systems impact society and vice versa). Discipline maturation: systems, consumer behavior, international marketing.

Marketing 1970-1980

Heightened consumerism and ethics; societal role - balancing consumer welfare with long-term social well-being. Expanded beyond sales to ethics, consumerism and public policy.

Marketing 1980-1990

From transactional exchanges to long-term customer relationships (marketing 'to' then 'with' customers, value co-creation). Rise of strategic marketing: positioning, competitive advantage, relationship marketing.

Marketing 1990-2000

Flexible, creative, context-sensitive approaches; recognition of emotional, intuitive and aesthetic factors. Globalization and technology drove CRM, segmentation and service marketing.

Marketing 2000-2010

Interactive, consumer-driven practices via social media; co-creation platforms and user-generated content. Digital era: online platforms, e-commerce, interactive marketing.

Marketing 2010-2020

Mobile ubiquity, content marketing and influencers; data-driven, personalized, integrated across digital platforms. Social media, big data, co-creation, consumer empowerment.

Marketing 2020-today

Integrates AI, sustainability and purpose-driven branding, aligning business goals with society.

Which decade: 'marketing vs merchandising' debate?

1910-1920

Which decade: shift from transactions to long-term relationships and value co-creation ('to' customers, then 'with' customers)?

1980-1990

Which decade: marketing embraces societal role, ethics and consumerism?

1970-1980

Which decade: social media and user-generated content; co-creation platforms?

2000-2010

Which decade: AI, sustainability, purpose-driven branding?

2020-today

Marketing evolution: summary

From a narrow focus on physical distribution and transactions to a broad, integrated discipline centered on value creation, long-term relationships, societal welfare and holistic organizational roles.

Marketing today (enterprise view)

An enterprise-wide, integrated function aligning brand purpose, stakeholder relationships, internal culture, ethics and societal impact across all business activities.

Marketing mix

The set of Ps a company combines: the 4Ps (Product, Price, Place, Promotion), extended to the 7Ps for services (+ People, Processes, Physical Evidence).

Product (4Ps)

The service or product a business offers that is demanded by the market, customers or consumers.

Price (4Ps)

The amount customers will pay for the product or service; also dictates how profitable the business will be.

Place (4Ps)

Where and how customers can find and access your products/services (retail, resellers, distribution, franchising, etc.).

Promotion (4Ps)

How a company communicates the advantages of the product/service and convinces customers to buy; essentially where advertising comes in.

People (3 extra Ps)

From front-line sales staff to the Managing Director. The right people are essential because they are as much a part of the offering as the product/service.

Processes (3 extra Ps)

How the service is delivered - usually with the customer present, so the delivery is part of what the customer is paying for.

Physical Evidence (3 extra Ps)

Almost all services include physical elements even if most of what is paid for is intangible (e.g., a PDF still counts as a 'physical product').

What are the 3 extra Ps that turn the 4Ps into the 7Ps?

People, Processes, Physical Evidence

Coca-Cola vs. Pepsi (S2 example)

Similar products; differentiation comes from branding. Coca-Cola = emotional branding (happiness, togetherness). Pepsi = youth-oriented, trend-driven positioning.

Early vs. modern view of marketing

Early: distribution and product-centered. Modern: value creation and customer orientation.

Marketing = ?

Identifying needs + delivering value.

Evolution of marketing (key concept chain)

4Ps -> Relationship Marketing -> Digital/Experiential.

Marketing vs. Sales vs. Advertising (key concepts)

Marketing: long-term strategy (market research, segmentation, positioning, product, pricing, channels). Sales: short-term focus (closing deals, transactions, revenue). Advertising: one marketing tool (communication & promotion).

How do Sales and Advertising relate to Marketing?

Sales and Advertising execute parts of the Marketing plan.

Why is marketing broader and strategic compared with sales/advertising?

It covers the whole long-term strategy (research, segmentation, positioning, product, pricing, channels), while sales and advertising are execution activities.

Marketing - responsibilities

Branding and USP, benchmarking, CRM, vision through departments, strategy, budget and ROI.

Advertising - responsibilities

Define buyer persona, pitching plans, media buying, creativity, campaign management, inform and report to the marketing team.

Sales - responsibilities

Deals and negotiations, customer relationships, generate leads, product expertise, manage goals and performance, track stock/inventory.

Marketing - purpose

Lead generation, new customers and retention, brand consistency, create opportunities, product development, global performance tracking.

Advertising - purpose

Boost brand awareness, attract and compel buyers, increase loyalty, create motivating ads and campaigns, stand out from competitors.

Sales - purpose

Increase sales, establish sales cycles, profit margins, reduce churn rate, new cross-selling and upselling opportunities, give customers more value.

Time horizon: Marketing vs Advertising vs Sales

Marketing = long term (lots of time/resources, small margin for course shifting). Advertising = mid term (some time, a great deal of attention, more margin for course shifting). Sales = short term (a lot of margin for course shifting).

Which has the smallest margin for course shifting: marketing, advertising or sales?

Marketing (long term, heavy investment). Sales has the most margin.

Marketing - techniques and channels

Inbound marketing, content marketing, SEO, email marketing, affiliate marketing, employee/internal branding.

Advertising - techniques and channels

Traditional (TV, radio, print), retail (in-store and promotions), digital ads (social media, apps), native advertising, billboards.

Sales - techniques and channels

Direct, indirect and dual sales; AIDA selling; social selling; phone calls and one-to-one meetings; referral & networking; sampling.

Marketing - investment & costs

Branding, customer and trend research, hiring a team, software and tools, providers and specialized suppliers.

Advertising - investment & costs

Creativity, development and campaign production, managing team, advertising spaces and licenses, tracking and reporting.

Sales - investment & costs

Fixed costs (salaries, utilities, office), indirect costs (labour, raw material, travel), software, distribution & logistics, product sampling/trial.

SEO

Search Engine Optimization - a marketing technique to improve visibility in search results.

AIDA selling

A sales technique listed under Sales channels (AIDA = Attention, Interest, Desire, Action).

Apple (S3 example)

Marketing: premium positioning, ecosystem, lifestyle branding. Advertising: iconic campaigns ('Think Different', 'Shot on iPhone'). Sales: retail experience (Apple Store) reinforces brand image.

Apple campaigns cited as advertising examples

'Think Different' and 'Shot on iPhone'.

PESTEL analysis

A framework used by marketers to analyze and monitor the external (macro) environment factors that impact an organization, company or industry: Political, Economic, Social, Technological, Environmental, Legal.

PESTEL stands for...

Political, Economic, Social, Technological, Environmental, Legal.

What is PESTEL used for?

Identifying macro-environmental external forces shaping strategy; uncovering external threats and opportunities, feeding into SWOT and supporting strategic planning.

Which framework does PESTEL feed into?

SWOT analysis (PESTEL identifies external threats and opportunities).

Political factors

Regulations, trade policies, taxation.

Economic factors

Growth, inflation, purchasing power.

Social factors

Demographics, culture, consumer lifestyles.

Technological factors

Innovation, digitalization, AI.

Environmental factors

Sustainability, climate change.

Legal factors

Consumer protection, data privacy laws.

Benefit of PESTEL: Informed decision making

Helps you see the bigger picture before acting; guides key decisions such as product launches, investments, expansion.

Benefit of PESTEL: Strategic planning

Aligns your goals with reality; enables anticipation of change and competitive advantage through situational awareness.

Benefit of PESTEL: Risk mitigation

Spot potential roadblocks early and plan around them.

Benefit of PESTEL: Public/stakeholder trust

People love data-driven decisions - show your homework and they'll buy in.

Uses of PESTEL

Strategic business planning, marketing planning, workforce planning, product development, organizational change.

Additional moments to use PESTEL

Unexplored areas (risk assessment and innovation initiatives) and crises (rapidly changing or unstable environments, e.g., regulatory shifts).

When to conduct a PESTEL

At the start of new projects, market entry, or before major strategic decisions; during annual/periodic strategic planning audits.

Planning a PESTEL: four elements

Goals (define scope/objective), Team (cross-functional team + data sources), Factors (prioritize relevant factors and impact), Integration (combine with SWOT or Five Forces).

PESTEL step-by-step (1-3)

1) Define objective. 2) Gather & research each dimension from reliable sources. 3) Populate factors under each macro factor.

PESTEL step-by-step (4-6)

4) Evaluate impact & likelihood. 5) Prioritize & summarize critical factors. 6) Review & update regularly (e.g., quarterly or annually).

How often should a PESTEL be reviewed?

Regularly - periodically, e.g., quarterly or annually.

Netflix PESTEL example

Legal: data privacy laws. Technological: broadband penetration & AI recommendations. Social: global expansion challenged by cultural preferences.

Porter's Five Forces

Strategic framework developed by Michael Porter (1979) to analyze the level of competition within an industry and its attractiveness (profitability potential).

Who developed the Five Forces framework and when?

Michael Porter, 1979.

What are Porter's Five Forces?

Supplier power, Power (bargaining) of buyers, Threat of substitution, Competitive rivalry, Threat of new entrants.

Uses of Porter's Five Forces

Understand competitive dynamics; identify opportunities and threats; support decisions on entry, pricing, positioning, differentiation.

Why use Five Forces?

Companies operate in environments shaped by multiple forces beyond direct competitors; understanding them lets managers anticipate change and build more resilient strategies.

Supplier Power - definition

The ability of suppliers to drive up the price of inputs.

Supplier Power is HIGH when...

Few suppliers, unique resources, high switching costs for firms.

Supplier Power - impact + example

Strong suppliers raise costs and reduce margins. Example: Intel and NVIDIA in semiconductors (PC/laptop makers depend on them).

Power of Buyers - definition

The influence customers have on pricing and quality.

Power of Buyers is HIGH when...

Few buyers buying in bulk, low switching costs, high price sensitivity.

Power of Buyers - impact + example

Powerful buyers push prices down and demand better service/quality. Example: Costco shoppers (bulk discounts but pressure to keep prices low and value high).

Threat of Substitution - definition

Risk of customers turning to alternatives outside the industry.

Threat of Substitution is HIGH when...

Substitutes are cheaper, of similar or better quality, and easily accessible.

Threat of Substitution - impact + example

Substitutes limit profitability by capping price levels. Example: Uber/Lyft vs. traditional taxis; Kodak vs. digital photography.

Competitive Rivalry - definition

The intensity of competition among existing players in the industry.