Marketing

• Attentional Orienting


  • Channeling attention to a specific direction or a chronological sequence
• Selective Attention


  • Attention is directed at one particular stimulus, other stimuli are ignored
• Divided Attention


  • Simultaneous processing of multiple stimuli
  • Reveals limits of processing capacity
• Sustained Attention


  • Attentional situation is kept for seconds up to minutes without distraction
• Marketing is not just sales
• Marketing


  A function in a firm
• Components of a firm

  • Supply Chain Management
  • Production
  • Sales
  • Marketing
  • Controlling
  • Logistics (Supply-Chain-Management)
• A myriad of different definitions of marketing exist
• Historical definitions of marketing


  • The art of trading (Herodotus 484–425 BC)
  • Those efforts which effects transfer in the ownership of goods (Clark 1925)
  • The art of selling products (advantage by focusing on distribution)
  • The idea of satisfying the needs of customers (Levitt 1960)
  • McCarthy's four Ps (1960): product, price, promotion, place
  • The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives (AMA 1985)
  • Marketing as market-oriented leadership (AMA 2004, 2007)
• Market-oriented leadership


  • A consumer centric philosophy
  • An integrated marketing focused organisation
  • Adequate market information
  • Strategic orientation
  • Operational efficiency
• Peter F. Drucker (1973): 'Marketing is so basic that it cannot be considered a separate function. It is the whole business seen from the point of view of its final result, that is, from the customer's point of view… Business success is not determined by the producer but by the customer.'
• Stages of a company's market orientation

  • Marketing ignorance
  • Marketing as shared value
  • Chance for Marketing excellence
  • Marketing preacher
• Today, marketing is about creating a market-oriented organization and managing competitive advantages in specific markets
• Competitive advantage

  The value provided by the manufacturer is higher than the value provided by competitors
• Net benefit (NB)

  The overall utility from an offer is higher than its cost
• Unique Selling Proposition (USP)

  Compared to the competitor's offer, the manufacturer's offer provides a higher (and unique) utility
• Relative net benefit (RNB)


  The manufacturer's offer provides a higher net benefit compared to all competitors' offers
• Comparative competitive advantage (CCA)


  The manufacturer's offer is efficient compared to competitors' offers
• Competitive advantages

  Advantages that allow a firm to outperform its competitors
• Competitive advantages

  • Meaningful
  • Perceived
  • Protectable
  • Economic
• Meaningful


  The competitive advantage is important to the customer
• Perceived


  The competitive advantage is seen as valuable by the customer
• Protectable


  The competitive advantage is difficult for competitors to imitate
• Economic


  The competitive advantage generates economic value for the firm
• Calculating net present value (NPV)


  1. Determine market volume

  2. Estimate market share

  3. Calculate price and costs

  4. Determine initial investment

  5. Calculate NPV
• NPV is 0


  If annual price decline is 4%, market volume reduces by 40%, fixed costs increase to 3.272.006, or variable costs increase by 7.6%
• Effectiveness


  Achieving positive net utility
• Efficiency

  Achieving profit without loss
• Marketing is about managing competitive advantages
• Elements of the marketing mix

  • Product
  • Price
  • Place (Distribution)
  • Promotion
• The whole marketing mix is greater than the sum of its parts
• The marketing mix aims to influence customers' and retailers' decision-making