KU Marketing Management Course Overview

• Course: MKTG 810 Marketing Management

• Semester: FS 2024

• Instructor: Prof. Murali Mantrala

• Test Date: November 26, 2024

Markstrat Challenge Introduction

• Objective: Develop and position brands effectively in a competitive environment.

• Focus Areas:

  • Brand development via R&D and advertising.

  • Understanding consumer perceptions and their impact on purchases.

Brand Positioning Strategies

• Successful branding hinges on:

  • Positioning through R&D: Innovate product characteristics to meet consumer needs.

  • Positioning through Advertising: Craft messaging to shape consumer perceptions.

Perceptual Mapping

• Purpose: Visual tool for understanding brand positioning in relation to consumer needs.

• Methods:

  • Attribute Rating Method: Measuring customers' perception of brand attributes.

  • Overall Similarity Method: Utilizing MDS Maps for broader brand positioning insights.

Consumer Perceptual Influences

• Decision-Making: Driven by consumers' perceptions of products, which differ from firm perceptions.

  • Brands are assessed based on multiple attributes (e.g., economy, performance).

Long-term Positioning Strategies

• Need for Adaptation: Brands must evolve with changing consumer behaviors and market forces.

• Repositioning Techniques: Can be achieved through R&D modifications or advertising to reshape brand perceptions.

R&D in Marketing Strategy

• R&D Importance: Critical for:

  • Launching new brands in emerging markets or segments.

  • Revamping existing brands based on consumer feedback and market trends.

• Cost-Reduction Projects: Should consider experience curve effects for sustainable profit.

Conjoint Analysis in Marketing Strategy

• Purpose: Analyze and understand consumer preferences for product attributes.

  • Utility Measurement: Higher utility corresponds with increased consumer satisfaction.

• Implementation: Identify critical characteristics for product features that drive purchasing decisions.

Challenges in Direct Customer Feedback

• Direct questioning may yield trivial insights due to inherent bias (e.g., preference for low-cost options).

Marginal Analysis for Resource Allocation

• Budgeting Strategies:

  • Use marketing budget rules of thumb cautiously (e.g., percentage of sales).

  • Apply marginal analysis to determine optimal advertising spend based on diminishing returns.

Response Functions in Marketing

• Types:

  • Concave-Downward Response Curve: Reflects diminishing returns in sales with increased advertising.

  • S-Shaped Response Function: Shows varying effectiveness based on the volume and context of marketing efforts.

Strategic Framework for Marketing

• Business Definition: Understand and position your market strategy using the 5 C's (Company, Customers, Competitors, Collaborators, Context).

• Implementation: Focus on shaping customer acquisition and retention through effective go-to-market strategies.

Competitive Analysis Framework

• Identifying Competitors: Use buyer-oriented and supplier-oriented frameworks to analyze existing competitive structures.

• Strategic Group Dynamics: Understand that competition is more intense within strategic groups rather than between them.

Game Theory in Competitive Analysis

• Nash Equilibrium: Anticipate competitor behavior in reaction to pricing or product changes.

• Example: Analyze profit outcomes based on different market scenarios.

Final Summary Notes

• Effective marketing is not just about spending more but about spending wisely.

• Understanding market dynamics, consumer perceptions, and competitive actions is critical for making informed marketing strategies.