Marketing - week 1

Marketing - week 1

1. History of marketing:

   • 1. production : product centered,: distribution, mass production.
   • 2. Selling: competition:( customer oriented) persuade people to buy. produce and push!
   • 3. Marketing (value driven): needs and wants. pulling!
     • What do consumers want - create strategy - advertisement, pricing, distribution
   • From product and transaction driven --> to relation and value driven. (What does customer want, creating value. from product driven to customer driven
   • changes for marketing
     • 1. consumer connected to bigger environment, 2. technology, 3. from org to brand 4. multichannel behavior -- changing decision process 5. analytics (data) 6. disruptions

2. Narver & Slater - 1990 : market orientation

   • crucial for sustainable superior value1. in order to be successful you have to bring the outside world in
   • 3 aspects
     • 1. customer orientation
     • 2. competitor orientation
     • 3. interfunctional coordiation - alignement
   • long term, profit focus !
   • 2 different markets
     • 1. commodity - basic product where there is hardly any differentiation
       • U shaped relationship! Rather invest fully in MO (value!) or not at all and play the pricing game (low cost strategy). MO very expensive.
     • 2. non commodity -
       • linear relationship: the more you invest, the better.
   • effect of MO over time: becomes less. all competors also use MO. becomes a hygiene factor. you have to invest to stay competitive.
   • MO has changes: but the thinking behind it is still the same. Goal is to become more customer and competor oriented. -- big data!

3. Achrol & Kotler: From exchange paradigm to network paradigm

   • exchange: 1 customer, 1 company relationship, inter firm. Network: holistic perspective, it's about network
   • network paradigm: 3 stages
     • 1. sub phenomenal - basic level
       • satisfaction --> consumer experiences. 1. From cognitive processes to stimulating the senses. 2. technology: influencing experience -- like pokemon go
     • 2. phenomenal
       • from dyadic exchange to marketing networks.
         • backoffice: countries work together - production and innovation network -- outsourcing
         • center: micro production systems -disintermediation local and personal production (3D printers) ebooks. consumer becomes producer. co-creation and co-production
         • front office: consumption networks - vertical and horizontal individuals in network online and offline. they influence each other.blogs, chats, social networks
     • 3. super phenomenal
       • societal consequences. sustainability and poverty
         • 1. market and resource capacity: overconsumption. marketing responsible. don't put it down the growth
         • 2. from firm- consumer --> firm-society
         • 3. from reactive to proactive: actively react to environmental changes. less salt in products
         • 4. growth from: emerging markets-> base of the pyramid market. business models to target this group
     • take all into account!
   • shift to network paradigm, explained in 3 dimensions

4. Swaan & Arons: High performance marketing principles!

   • 3 winning characteristics of HP org.
     • 1. big data
     • 2, purposeful positioning
       • FES: funtional, emotional, social benefits: Why does the company do the things they do. company behind the project. who are they?
     • 3. total experience
       • personalize offerings, stimulate their senses, adding tough points in relationship
   • alignment of the whole org. to deliver - corporate and brand purpose
   • overeenkomt Achrol & Kotler: total experience. marketing should be holistic. The social benefits of purposeful positioning matches with the super phenomenal part in the network paradigm

5. sheth 2011: impact of emerging markets on marketing. we have to change our western marketing ideas . (china)

   • change your whole way of thinking!
   • characteristics of emerging markets
     • 1. market heterogenity
       • Fragmented market! large variance in business, offerings very fragmented. demand is not heterogene.
     • 2. sociopolitical governance
       • a few highly diversified and industrial groups dominate. difficult to enter
     • 3. unbranded competition
       • people making things at home. first create demand.
     • 4. chronic shortage of resources
     • 5. inadequate infrastructure
   • We want to create satisfaction but in there you just have to make it affordable and available. there is no free competition, Be very aware of basic assumptions and change your starting point
   • innovation key: affordable and available . be more aware of purpose and include the environment (infrastructure
   • violation of marketing assumptions:
     • western: 1. free competition,2.need for differenatiation. 3. climbing the value hierarchies, 4. creating satisfaction and loyalty
       • emerging to: AVAILABILITY AND AFFORDABILITY: 1. create demand (non users) 2. functional needs - aspirational 3. standardization
   • Mareketing thought is contact driven- evolving over time and place