Marketing Management - Class 1

Marketing Management

The art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

Customer-Oriented Organization Chart

An organizational structure where customers are positioned at the outermost boundary as the central focus, frontline employees sit closest to customers, and middle and top management reside at the core to support frontline staff.

Holistic Marketing Approach

A comprehensive marketing approach recognizing that 'everything matters' by integrating internal marketing (embrace values), integrated marketing(unified message), relationship marketing(long-term relationship), and performance marketing(combination of financial and non-financial).

Holistic marketing approach - Internal Marketing

The element of holistic marketing focused on ensuring that employees at all levels embrace and understand the organization's marketing strategies, vision, and values.

Holistic Marketing approach - Performance Marketing

The dimension of holistic marketing that tracks financial returns as well as broader non-financial impacts, such as ethical, legal, community, and environmental outcomes.

Reference Groups

Social groups—such as family, friends, co-workers, or interest clubs—that exert a direct or indirect influence on a person's attitudes, decisions, and buying behavior.

Consumer Buying Decision Process

A five-stage model depicting how individual buyers make choices: Problem Recognition, Information Searching and Processing, Identification and Evaluation of Alternatives, Purchase Decision, and Post-Purchase Behavior.

Marketing Research

The systematic function that links the consumer, customer, and public to the marketer through information used to identify opportunities, solve problems, and evaluate performance.

Target Compatibility

The evaluation of whether a company's internal capabilities, infrastructure, technical expertise, brands, and collaborator networks can create superior value for a chosen customer segment.

Target Attractiveness

The degree to which a prospective customer segment can provide monetary value (revenue, profit) and strategic value (social influence, scale, feedback) to the company.

Buyer Persona

A detailed, research-based profile of a semi-fictional target customer embodying demographic, geographic, psychographic, and behavioral traits.

Points of Parity (POP)

Product attributes or associations that are not necessarily unique to a brand but are shared with competitors to qualify as a credible player in a category.

Points of Difference (POD)

Attributes or benefits that consumers strongly associate with a brand, evaluate positively, and believe they cannot find to the same degree in competitive offerings.

Product Conformance

A product differentiation dimension measuring the degree to which all manufactured units meet the promised standards, safety regulations, and quality benchmarks.

Product Line Depth

The total number of variants, formulations, or specific versions offered within each product or brand in a product line.

BCG Matrix

A portfolio planning tool classifying business units or products into four quadrants based on market growth rate and relative market share: Stars, Question Marks, Cash Cows, and Dogs.

Service Intangibility

The core characteristic of services stating that they cannot be seen, tasted, felt, heard, or smelled before they are purchased.

Service Inseparability

The service characteristic requiring services to be produced and consumed simultaneously in the presence of the service provider.

Service Perishability

The service attribute indicating that unused service capacity cannot be stored, inventoried, or recovered for future sale.

Brand Equity

The monetary value and market valuation that a brand name adds to a company's offerings beyond tangible physical assets.

Brand Power

The degree to which brand knowledge influences how consumers think, feel, and act toward marketing activities of that brand.

Brand Mantra

A short, 3- to 5-word internal articulation of the heart and soul of a brand used to guide employee decisions and align external partners.

House of Brands

A brand hierarchy architecture where an organization maintains distinct, independent brands, each targeting separate markets with its own identity (e.g., Procter & Gamble).

Branded House

A corporate brand architecture where a single master umbrella brand name is used across all products and operational sectors (e.g., Virgin Group).

Reference Price

An internal psychological benchmark against which consumers compare an observed price, such as fair price, last price paid, or competitor prices.

Market Skimming Pricing

A pricing objective setting high initial prices to maximize revenue from early adopters willing to pay a premium before gradually lowering prices over time.

Market Penetration Pricing

A pricing objective setting low initial prices to stimulate demand, achieve economies of scale, and capture dominant market share quickly.

Price Discrimination

Selling identical products or services at two or more different prices that do not reflect proportional differences in underlying costs.

Integrated Marketing Communications (IMC)

A coordinated approach managing promotional tools to present a seamless, unified brand message across horizontal, vertical, internal, and external levels.

Transformational Appeal

A creative advertising execution that highlights non-product-related benefits, emotional imagery, or lifestyle associations rather than functional product claims.

Merchant Intermediary

A marketing distribution intermediary—such as a wholesaler or retailer—that buys, takes title to, and resells goods.

Selective Distribution

A channel coverage strategy relying on only a chosen portion of available intermediaries willing to stock and sell a product line.

Coercive Power

A distribution channel power where a manufacturer motivates intermediaries by threatening to terminate contracts or withdraw resources if they fail to cooperate.

Referent Power

Channel power derived from an intermediary's pride and prestige in being formally associated with an esteemed manufacturer or brand.

Channel Alternatives Graph

An analytical matrix mapping marketing channels by evaluating their Value-add of Sale against their Cost per Transaction.

Market Challenger

A firm holding substantial market share below the leader that aggressively attacks competitors and the market leader to expand its position.

Market Nicher

A company that serves small, distinct, and profitable customer segments overlooked or underserved by major industry competitors.

Flank Attack

A market-challenger growth strategy that targets underperforming geographic territories or underserved customer segments where the leader is weak.

Customer Acquisition Funnel (The 5 A's)

A modern customer pathway framework tracing prospective buyers through five stages: Awareness, Appeal, Ask, Act, and Advocate.

Customer Lifetime Value (CLV)

The net present monetary value of the total profit or financial contribution an individual customer generates for a company throughout their relationship tenure.

Industry Globalism

The external international competitive structure of an industry that dictates the degree to which firms are compelled to operate across global markets.

Main goal of Marketing Management

Find people’s needs and satisfy them better than the competition.

Greenwashing

Promising a green way or solution but being fake.

Showrooming

Finding a product in-store after buying it online.

Difference between a traditional organization chart and a customer-oriented organization chart

The main difference is that a traditional organization chart is structured hierarchically, implying a top-down approach. Whereas, in a customer-oriented organization chart the customers are positioned in the outer ring suggesting that they are the center of all organizational activities. The middle and top managers are at the core, implying that their role is to support frontline employees in delivering value to customers, rather than giving orderd from the top down.

What can be marketed?

Goods, Services, Events, Experiences, People, Places, Properties, Organisations, Information, Ideas.

What are the new marketing realities? (Market forces)

1. Technology - E-commerce, social media, new business models, data analytics, AI…

2. Globalization - Multi-cultural, more competition, learn from each other, changing customer needs, war….

3. Physical environment - Climate change, health (pandemic),…

4. Social responsibility - Ethics, environmental impact, social context, legal,…

Because of the new marketing realities, what results can we see in the new market environment? (Market environment)

1. New consumer capabilities - online information (compare prices and features, showrooming), share opinions and express loyalty on social media, actively interact with companies, reject marketing communication (skip commercial with Spotify premium), sharing economy (vinted).

2. New company capabilities - personalication through internet (you can make m&m’s with own name), collect more detailed information (use internet to send out questionnaires), reach consumers quickly and efficiently through social media (location-based advertising)

3. New competitive environment - retail transformation (coffee bar in target shop), disintermediation (a manufacturer selling directly to consumers via an online platform, bypassing traditional retailers) reintermediation (travel aggregator websites acting as intermediaries between airlines, hotels and consumers, providing convenience and comparison options that benefit both business and customers), private labels, mega-brands crossing the border of their industry.

Holistic Marketing approach - Integrated Marketing

Creating a consistent and unified message across all marketing channels and touchpoints.

Holistic marketing approach - Relationship Marketing

Building long-term relationships with customers, employees, suppliers and partners to foster loyalty.

What are the 4P’s, the marketing mix?

Product, price, promotion and place

What are the 5 philosophies of the marketing department?

1. Production concept - Consumers will favor products that are cheap and available.

2. Product concept - Consumers will favor products that offer most quality, performance, and innovative features.

3. Selling concept - Consumers will not buy enough of the firm’s products unless it undertakes selling and promotion efforts.

4. Marketing concept - Understand consumers’ needs and deliver better value than competitors.

5. Market-value concept - Every functional area of the company should be actively focused on creating value for the customers, the company and its collaborators.

What are the different ways of organizing the marketing department?

Functional organisation, geographic organisation, product or brand organisation, market organisation, matrix organisation.

What is the mission of a company and how do you define it?

The reason for the organization’s existence, its a shared sense of purpose. You define it by focusing on a limited number of specific goals, stress the company’s major policies and values. It has to be short, memorable and meaningful.

Corporate culture

Is the shared experiences, stories, beliefs, and norms that characterize and organisation (the way people dress, talk to one another and greet customers)