MOS Marketing of Services Study Materials

Master of Business Administration
MOS
Marketing of Services
Study Materials
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Video Cases
Marketing History Module 1
• https://youtu.be/qojrZZaq0Vo
Question 1
What was the problem with Printing Press and with the electronic magnetic telegraph?
Question 2
What is Cross-Channel-Marketing?
The Cross-Channel Marketing is about knowing your target audience’s preferences, so you
can deliver the right message on the right platform on the right time.
Advantages:
 Stream the line process
 Minimize the cost
 Improves conversion rate
Examples:
 Facebook
 Twitter
 LinkedIn
Mercedez BenzModule 2
Question 1
How Mercedes try to influence the customer to buy their product?
• https://www.youtube.com/watch?v=zSlhbBBBi3A
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By reaching further back into the customer life cycle and tap into a younger consumer
demographic. Mercedes-Benz used digital and social media channels to target Millennials
with a mix of earned media, paid media, and owned media to reach key influencers in the
target demographic to create brand awareness and ultimately brand equity. Mercedes-Benz
provides an example of how a prestige brand can effectively segment and target a different
audience without losing its brand prestige
Nike- The Jogger Module 2

Question 1
Which are the values Nike show in the advertisement and how they connect with the brand?
• https://www.youtube.com/watch?v=Ho0svfBvNPg
If McDonald’s Advertised Like AppleModule 2

Question 1
What is your opinion about the advertisement and the product presentation approach?
• https://www.youtube.com/watch?v=Sn276Zk5B40
From my point of view, the fake advert tells us about three new products. Fri, Nugget and
Mac. All of which are being described as now “refined” and much better than the last version.
The advert is very clever and well made by the team at BuzzFeed. It’s very impressive how
by using a white background and some clever words, they make me crave a McDonalds now.
Rethinking food, truly.
BrandsModule 3
Question 1
What is Marketing & Brand Strategy?
• https://www.youtube.com/watch?v=9_XWp5fnXKc
Marketing is a form of communication between you and your customers with the goal of
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selling your product or service to them. Communicating the value of your product or service
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is a key aspect of marketing.
Brand is a set of unique values such as confidence, passion, belonging, Action and security.
Brand strategy is a long-term plan for the development of a successful brand in order to
achieve specific goals. A well-defined and executed brand strategy affects all aspects of a
business and is directly connected to consumer needs, emotions, and competitive
environments.
4Principles of Marketing StrategyModule 3

Question 1
What is the mantra of marketing according to Mr Klotter?
• https://www.youtube.com/watch?v=bilOOPuAvTY
Question 2
Related to the Marketing Mantra what’s is “C” , “C” ; “V” ; “T” ; “P” and how connect the
firsts 2 “C” with the companies?
• https://www.youtube.com/watch?v=bilOOPuAvTY
"CCDVTP": C: CREATE. C: COMMUNICATE AND D: DELIVER. V: THE VALUE. T:

TO THE TARGET MARKET. P: AT A PROFIT.
Create a product also known as product management, and you have to communicate, that’s
called branding, (brand management). Product management which is an organizational
lifecycle function within a company dealing with the planning, forecasting, and production, or
marketing of a product & Brand management such as Name & Logo or the activity of
supervising the promotion of a brand of goods.
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Segmentation, Targeting, and Positioning - McDonald'sModule5
Question 1
Explain briefly how Mc Donald´s segment and target their customer for success business?
• www.youtube.com/watch?v=RcRFBVIvJHw
The company seeks specific segments of its target population, and then customise or position
their products to each segment. Unlike other big package goods companies that have brand
managers for their various brands, McDonalds does not have a Big Mac manager or a salad
group. Their marketing department consists of consumer segments; there can be a Director of
Young Adults, a Director of Moms, a Director of African Americans etc.…
McDonalds segments its customers according to the life-cycle stage, values, needs, behaviour
and then positions itself as a family friendly low cost restaurant. Each segment team creates a
positioning profile for every product, then the creative team uses these profiles to produce ads
targeted to relevant segment.
Virgin Atlantic'sModule6
Question 1
How Virgin differentiate from another offer in their sector?
• www.youtube.com/watch?v=s87zEz4Ybho
MasterCard Priceless ElephantModule6

Question 1
How MasterCard try to get the attention of their target customers with this video?
• https://www.youtube.com/watch?v=WFNXwor69-U
The “price” of satisfaction. The use of the elephant taking care of the man with a cold is
obviously a soft sell. They are employing the cute factor as well as giving examples of how
their Paypass feature is convenient for Mastercard users. Their strategy to list the prices of
various items and relating a priceless aspect of the situation is very creative. The ads may not
seem to promote Mastercard because the commercials have nothing to do with a credit card or
their services. However, they give a valid reason for having a Mastercard, some things are
priceless, for everything else you can use a Mastercard. Even the people who do not need a
credit card who see these ads will most likely remember the positive messages of the
commercials when they do need a credit card and relate that to the company. Establishing
their image attracts potential customers as well as reassuring their current ones why
Mastercard is a smart choice.
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Quidam by Cirque du SoleilModule6
Question 1
Which is the value proposal and how Cirque du Soleil target their customers?
• https://www.youtube.com/watch?v=7uc9lUuJQpE
Group Discussion Questions
Question 1 Module 2
Describe how consumers make their purchasing decisions. Finally describe the Consumer
Buying Process.
A purchase decision is the result of each and every one of these factors. An individual and a
consumer is led by his culture, subculture, his social class, his membership groups, his family,
his personality, his psychological factors, etc.…
Marketing scholars have developed a “stage model” of the process. The consumer typically
passes through five stages: problem recognition, information search, evaluation of
alternatives, purchase decision, and postpurchase behavior. Clearly, the buying process starts
long before the actual purchase and has consequences long afterward. Consumers don’t
always pass through all five stages—they may skip or reverse some. When you buy your
regular brand of toothpaste, you go directly from the need to the purchase decision, skipping
information search and evaluation. The model provides a good frame of reference, however,
because it captures the full range of considerations that arise when a consumer faces a highly
involving new purchase.
Question 2 Module 4
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Indicate the differences and similarities between the following terms: marketing plan,
strategic marketing plan, and tactical marketing plan. Briefly summarize the contents of a
marketing plan
Marketing plan operates at a strategic and tactical level. It goes through six stages: Identify,
SWOT, Target, Intersection, USP and Refine.
Strategic consists of the following processes: Target marketing decisions, Value proposition
and Analysis of marketing opportunities. Strategy is a strong overarching vision, intended to
fulfill your predetermined goals and objectives. Strategy is the plan that ensures all your day
to day activities (tactics) contribute to your monthly, quarterly and annual business goals.
Tactical consists of Product features, Promotion, Merchandising, Pricing, Sales channels and
Service. Tactics are highly practical things you will do every day. Writing blog posts, sending
tweets, replying to emails, outreach to bloggers, changing page titles and appointments you
make/attend etc.
You need marketing strategies to guide your marketing tactics. In effect, your strategies
articulate the action plan you've developed to accomplish your stated financial objective.
Your strategic marketing plan is your road map. Your tactical planning articulates the details
of executing your marketing strategies. From another perspective, your strategies state "what"
you intend to do to meet the objective. Your tactics describe precisely "how" you plan to do it.
Question 3 Module 6
Which is the Brand Value and the importance. Discuss branding strategy - the
decisions companies make in building and managing their brands
A firm’s branding strategy—often called the brand architecture—reflects the number and
nature of both common and distinctive brand elements. Deciding how to brand new products
is especially critical. A firm has three main choices:
1. It can develop new brand elements for the new product.
2. It can apply some of its existing brand elements.
3. It can use a combination of new and existing brand elements.
The initial choices for the brand elements or identities making up the brand includes brand
names, URLs, logos, symbols, characters, spokespeople, slogans, jingles, packages, and
signage. Microsoft chose the name Bing for its new search engine because it felt it
unambiguously conveyed search and the “aha” moment of finding what a person is looking
for. It is also short, appealing, memorable, active, and effective multiculturally.
There are six criteria for choosing brand elements. The first three memorable, meaningful,
and likable—are “brand building.” The latter three—transferable, adaptable, and protectable
—are “defensive” and help leverage and preserve brand equity against challenges.
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These criteria can be assessed with the following questions:

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How easily do consumers recall and recognize the brand element, and when—at both
purchase and consumption?
Is the brand element credible? Does it suggest the corresponding category and a product
ingredient or the type of person who might use the brand?
How aesthetically appealing is the brand element?
Can the brand element introduce new products in the same or different categories?
How adaptable and updatable is the brand element?
How legally protectable is the brand element? How competitively protectable?
Module 4
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Group Project
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Creating the Marketing Plan
General Instructions:
1. Working in groups, select an advertisement (TV Commercial) of an existing product.
Analyze the ad's strengths and weaknesses (e.g. Does it effectively communicate the product's
benefits? Is it highlighting the best features of the product? Does it differentiate the product
from competitors' products? Is it directed at the appropriate market segment? Does it reach
this segment? Could it be redesigned to have more universal appeal, without sacrificing its
effectiveness at the target segment? Are there any aspects of the ad that might trigger negative
emotions towards the product?).
2. As a group develop a PPT for the below marketing plan sections, and be prepared to
present in class the first hour tomorrow. Each group will have 5 minutes to present their
plans.
Marketing Plan Directions:
Section 1 - Situational Analysis:

1. Product /Service Description
• Give a brief description of your product or service.
• What are the benefits of your product or service? Are any of these benefits
offered by your competitors?
• Is there anything special about your product?
2. SWOT Analysis
• Internal Strength and Weakness of your company
• External Opportunities and Threats for your company

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3. Environment Analysis
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• List any relevant environment considerations to be aware of when selling your
product or service.
i. Political
ii. Economic
iii. Social
iv. International
v. Regulatory
4. Competitive Analysis
• Who are your direct competitors?
• Are there any indirect competitor considerations to be aware of? If someone is

not using your product or something similar – what else are they doing?
5. Consumer Analysis
• Demographics and Psychographics
• Geographic Segmentation (if applicable)
Section 2 – Strategic Planning

• Marketing Mix Objectives, Strategies and Tactics (4 Ps)
• Product
• Price
• Place (distribution)
• Promotion (communication)
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Case Study IKEAModule 2
IKEA was founded in 1943 by a 17-year-old Swede named Ingvar Kamprad. The company,
which initially sold pens, Christmas cards, and seeds from a shed on Kamprad’s family farm,
eventually grew into a retail titan in home furnishings and a global cultural phenomenon,
what BusinessWeek called a “one-stop sanctuary for coolness” and “the quintessential cult
brand.”
IKEA inspires remarkable levels of interest and devotion from its customers. In 2008, 500
million visitors walked through IKEA stores, which are located all over the world. When a
new location debuted in London in 2005, about 6,000 people arrived before the doors opened.
A contest in Atlanta crowned five winners “Ambassador of Kul” (Swedish for “fun”) who, in
order to collect their prizes, had to live in the IKEA store for three full days before it opened,
which they gladly did.
IKEA achieved this level of success by offering a unique value proposition to consumers:
leading-edge Scandinavian design at extremely low prices. The company’s fashionable
bargains include products with unusual Swedish names such as Klippan loveseats for $279,
BILLY bookcases for $60, and LACK side tables for $8. IKEA founder Kamprad, who was
dyslexic, believed it was easier to remember product names rather than codes or numbers. The
company is able to offer such low prices in part because most items come boxed and require
the customer to completely assemble them at home. This strategy results in cheaper and easier
transportation as well as more efficient use of store shelf space.
IKEA’s vision is “to create a better everyday life for the many people.” Its mission of
providing value is predicated on founder Kamprad’s statement that “People have very thin
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care of their interests.” IKEA adheres to this philosophy by reducing prices across its products
by 2 percent to 3 percent annually. Its focus on value also benefits the bottom line: IKEA
enjoys 10 percent margins, higher than its competitors such as Target (7.7 percent) and Pier 1
Imports (5 percent). IKEA sources its products from multiple companies all over the world
rather than a handful of suppliers as many furniture retailers do. This ensures the lowest price
possible, and savings that are passed on to the consumer. Today, IKEA works with
approximately 1,300 suppliers from 53 countries.
IKEA’s stores are located a good distance from most city centers, which helps keep land costs
down and taxes low. The average IKEA customer drives 50 miles roundtrip to visit an IKEA
store. Many stores resemble a large box with few windows and doors and are painted bright
yellow and blue—Sweden’s national colors. They save energy with low-wattage light bulbs
and have unusually long hours of operation; some are 24-hour stores. When a consumer walks
through an IKEA store, it is a very different experience than most furniture retailers. The floor
plan is designed in a one-way format, so the consumer experiences the entire store first, then
can grab a shopping cart, visit the warehouse, and pick up the desired items in a flat box.
Many IKEA products are sold uniformly throughout the world, but the company also caters to
local tastes.
• In China, it stocked 250,000 plastic placemats with “Year of the Rooster” themes, which
quickly sold out after the holiday.
• When employees realized U.S. shoppers were buying vases as drinking glasses because they
considered IKEA’s regular glasses too small, the company developed larger glasses for the
U.S. market.
• IKEA managers visited European and U.S. consumers in their homes and learned that
Europeans generally hang their clothes, whereas U.S. shoppers prefer to store them folded.
Therefore, wardrobes for the U.S. market were designed with deeper drawers.
• Visits to Hispanic households in California led IKEA to add seating and dining space in its
California stores, brighten the color palettes, and hang more picture frames on the walls.
IKEA has evolved into the largest furniture retailer in the world with approximately 300
stores in 38 countries and revenues topping €21.5 billion in 2009. Its top countries in terms of
sales include Germany, 16 percent; United States, 11 percent; France, 10 percent; United
Kingdom, 7 percent; and Italy, 7 percent.
Questions
1. What are some of the things IKEA is doing right to reach consumers in different markets?
What else could it be doing?
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IKEA is doing many things right to reach its consumers in different markets, which is why
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they have been so successful. An underlying reason is the simple fact that their prices are
virtually impossible to beat. The revolutionary idea of selling items that need to be assembled
allows for cheap transportation costs resulting in an even cheaper overall price. Being able to
have more shelf space in stores and being able to distribute their products more efficiently
allows for IKEA to reach out to the entire world. IKEA’s revolutionary idea to outsource its
suppliers, not just from a handful of countries but also from fifty-three countries with roughly
1,300 suppliers, also allows for such cheap products. Another key aspect of IKEA’s success
stems from its uniform look, all of its stores are in a box like shape (far away from the city)
and are blue and yellow. This allows consumers all over the world to be able to locate an
IKEA with just a blink of an eye; this is basic brand awareness. The final fundamental way
that IKEA reaches consumers in different markets is by adhering to local tastes. Employees of
IKEA travel around the world and visit different households in order to compare and contrast
the lifestyles of consumers’ worldwide. This allows for IKEA to understand what people in
the UK like as opposed to what people in the US like. Knowing the difference in preference
gives IKEA the upper hand by allowing them to adhere to the lifestyle in each country and
putting those products in their stores. IKEA could be more successful if it lowered its profit
margin; it has the highest profit margin of 10% out of its competitors, which range from 5-
7%. If IKEA lowered its profit margin it could reinvest that money into making a bit higher
quality products, put more money towards R&D and marketing, or even expanding into more
countries. Moreover, it can open some more outlets which are near to the city so that
customers can have easy access to their store, by doing this it can gain some more customer
which will increase their sales and give them more profit.
2. IKEA has essentially changed the way people shop for furniture. Discuss the pros and cons
of this strategy.
Case StudyCISCOModule 3
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CISCO Developing Marketing Strategy

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Cisco Systems is the worldwide leading supplier of networking equipment for the Internet.
The company sells hardware (routers and switches), software, and services that make most of
the Internet work. Cisco was founded in 1984 by a husband and wife team who worked in the
computer operations department at Stanford University. They named the company cisco—
with a lowercase c, short for San Francisco, and developed a logo that resembled the Golden
Gate Bridge, which they frequently traveled.
Cisco went public in 1990 and the two founders left the company shortly thereafter, due to
conflicting interests with the new president and CEO. Over the next decade, the company
grew exponentially, led by new product launches such as patented routers, switches,
platforms, and modems—which significantly contributed to the backbone of the Internet.
Cisco opened its first international offices in London and France in 1991 and has opened a
number of new international offices since then. During the 1990s, Cisco acquired and
successfully integrated 49 companies into its core business. As a result, the company’s market
capitalization grew faster than for any company in history—from $1 billion to $300 billion
between 1991 and 1999. In March 2000, Cisco became the most valuable company in the
world, with market capitalization peaking at $582 billion or $82 per share.
By the end of the 20th century, although the company was extremely successful, brand
awareness was low— Cisco was known to many for its stock price rather than for what it
actually did. Cisco developed partnerships with Sony, Matsushita, and US West to co-brand
its modems with the Cisco logo in hopes of building its name recognition and brand value. In
addition, the company launched its first television spots as part of a campaign entitled “Are
You Ready?” In the ads, children and adults from around the world delivered facts about the
power of the Internet and challenged viewers to ponder, “Are You Ready?” Surviving the
Internet bust, the company reorganized in 2001 into 11 new technology groups and a
marketing organization, which planned to communicate the company’s product line and
competitive advantages better than it had in the past. In 2003, Cisco introduced a new
marketing message, “This Is the Power of the Network. Now.” The international campaign
targeted corporate executives and highlighted Cisco’s critical role in a complicated,
technological system by using a soft-sell approach. Television commercials explained how
Cisco’s systems change people’s lives around the world and an eight-page print ad spread
didn’t mention Cisco’s name until the third page. Marilyn Mersereau, Cisco’s vice president
of corporate marketing, explained, “Clever advertising involves the reader in something that’s
thought-provoking and provocative and doesn’t slam the brand name into you from the first
page.”
The year 2003 brought new opportunities as Cisco entered the consumer segment with the
acquisition of Linksys, a home and small-office network gear maker. By 2004, Cisco offered
several home entertainment solutions, including wireless capabilities for music, printing,
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video, and more. Since previous marketing strategies had targeted corporate and IT decision
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makers, the company launched a rebranding campaign in 2006, to increase awareness among
consumers and help increase the overall value of Cisco’s brand. “The Human Network”
campaign tried to “humanize” the technology giant by repositioning it as more than just a
supplier of switches and routers and communicating its critical role in connecting people
through technology. The initial results were positive. Cisco’s revenues increased 41 percent
from 2006 to 2008, led by sales increases in both home and business use. By the end of 2008,
Cisco’s revenue topped $39.5 billion and BusinessWeek ranked it the 18 th biggest global
brand.
With its entrance into the consumer market, Cisco has had to develop unique ways to connect
with consumers. One recent development is Cisco Connected Sports, a platform that turns
sports stadiums into digitally connected interactive venues. The company already has
transformed the Dallas Cowboys, New York Yankees, Kansas City Royals, Toronto Blue
Jays, and Miami Dolphins stadiums into “the ultimate fan experience” and plans to add more
teams to its portfolio. Fans can virtually meet the players through Telepresence, a
videoconferencing system. Digital displays throughout the stadium allow fans to pull up
scores from other games, order food, and view local traffic. In addition, HD flat-screen
televisions throughout the stadium ensure that fans never miss a play—even in the restroom.
Today, Cisco continues to acquire companies—including 40 between 2004 and 2009—that

help it expand into newer markets such as consumer electronics, business collaboration
software, and computer servers. These acquisitions align with Cisco’s goal of increasing
overall Internet traffic, which ultimately drives demand for its networking hardware products.
However, by entering into these new markets, Cisco has gained new competitors such as
Microsoft, IBM, and Hewlett- Packard. To compete against them, it reaches out to both
consumers and businesses in its advertising efforts, including tapping into social media such
as Facebook, Twitter, and blogs.
Questions
1. How is building a brand in a business-to-business context different from doing so in

the consumer market?
2. Is Cisco’s plan to reach out to consumers a viable one? Why or why not?
To answer the question of whether Cisco’s plan is viable or not we must first define what
constitutes a “viable” plan. According to the case study, Cisco’s goal is to increase overall
Internet traffic, which ultimately drives demand for its networking hardware products.
(Kotler and Keller 2012) As Kotler and Keller also point out “Cisco’s revenues increased 41
percent from 2006 to 2008, led by sales increases in both home and business use. By the end
of 2008, Cisco’s revenue topped $39.5b and Business Week ranked it the 18th biggest global
brand.” Clearly they have achieved their goal of reaching out to the consumer market and in
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doing so have increased their shareholder value. Now that we have established what the target
was and confirmed that Cisco had a viable plan to reach their consumers it’s time to answer
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the questions how and why.
Mindy Chahal put it this way when she was analyzing Cisco’s early struggles in the
consumer markets. “Eradicating jargon internally and externally has also helped Cisco. It
aimed to change the way in which it was seen by customers, employees and shareholders by
changing how it communicates, defining and rolling out its tone of voice, which employees
have adopted.” She went on to say that, “This was because engineers who developed the
products were the ones naming and describing them. Those names were used internally and
then externally by the sales force and marketing departments, among others. However,
Cisco’s customers didn’t fully understand the product terms.” “Customers felt like they were
wasting time — and these are people that are advocates, evangelizing our solutions and
services,” says Michael Lenz, director of brand experience at Cisco. “The experience
demanded clarity in the [tone of] voice and how we presented ourselves to our customers. …
When we are designing the brand experience there are steps and foundational pieces that need
to be put in place, one of which systemically we had to fix and that was language.” (Chahal
2013).
As stated in question 1, one of the biggest transition hurdles that had to be overcome was
converting from being technologically specific to being simple to understand and easy to
implement. As we saw from both Kotler & Keller and Chahal it took a combination of major
language changes, market repositioning and significant acquisitions of subsidiary companies
to allow Cisco to achieve its current level of success and continued projected growth.
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Case StudyINTEL Module 4
INTEL Marketing Strategy
Intel makes the microprocessors found in 80 percent of the world’s personal computers.
Today, it is one of the most valuable brands in the world, with revenues exceeding $37
billion. In the early days, however, Intel microprocessors were known simply by their
engineering numbers, such as “80386” or “80486.” Since numbers can’t be trademarked,
competitors came out with their own “486” chips and Intel had no way to distinguish itself.
Nor could consumers see Intel’s products, buried deep inside their PCs. Thus, Intel had a hard
time convincing consumers to pay more for its high performance products.
As a result, Intel created the quintessential ingredient branding marketing campaign and made
history. It chose a name for its latest microprocessor introduction that could be trademarked,
Pentium, and launched the “Intel Inside” campaign to build brand awareness of its whole
family of microprocessors. This campaign helped move the Intel brand name outside the PC
and into the minds of consumers. In order to execute the new brand strategy, it was essential
that the computer manufacturers who used Intel processors support the program. Intel gave
them significant rebates when they included the Intel logo in their PC ads or when they placed
the “Intel Inside” sticker on the outside of their PCs and laptops.
The company created several effective and identifiable marketing campaigns in the late 1990s
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to become a recognizable and well-liked ingredient brand name. The “Bunny People” series
featured Intel technicians dressed in brightly colored contamination suits as they danced to
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disco music inside a processor facility. Intel also used the famous Blue Man Group in its
commercials for Pentium III and Pentium IV.
In 2003, Intel launched Centrino, a platform that included a new microprocessor, an extended
battery, and wireless capabilities. The company launched a multimillion dollar media effort
around the new platform called “Unwired,” which urged the wired world to “Unwire.
Untangle. Unburden. Uncompromise. Un stress.” “Unwired” helped the company generate $2
billion in revenue during the first nine months of the campaign.
As the PC industry slowed in the mid-2000s, Intel sought opportunities in new growth areas
such as home entertainment and mobile devices. It launched two new platforms: Viiv (rhymes
with “five”) aimed at home entertainment enthusiasts, and Centrino Duo mobile. In addition,
the company created a $2 billion global marketing campaign to help reposition Intel from a
brainy microprocessor company to a “warm and fuzzy company” that offered solutions for
consumers as well. As part of the campaign, Intel’s new slogan “Leap Ahead” replaced the
familiar “Intel Inside” campaign that had become synonymous with the Intel brand, and a new
logo was created.
In 2007, Intel created the Classmate PC—a small, kid friendly, durable, and affordable Intel
processor–based computer intended for children in remote regions of the world. It was part of
an initiative called Intel Learning Series, intended to help expand education in technology
throughout the world.
The following year, Intel launched the Atom processor, the company’s smallest processor to
date, designed for mobile Internet devices, netbooks, and net ops such as the Classmate PC.
Also that year, Intel introduced its most advanced microprocessor, the Intel Core i7, which
focused on the needs for video, 3-D gaming, and advanced computer activities. Both
processors became an instant hit. The Atom, smaller than a grain of rice, ideally powered the
growing market of netbooks—mobile, light computers that weighed as little as 13 ounces.
Intel sold more than 20 million Atom processors for netbooks in its first year alone and 28
million in its second year. Some analysts predict that when the Atom processor taps into the
smart phone and cell phone markets, Intel could sell hundreds of millions of units in a very
short amount of time.
Intel’s most recent ad campaign aimed to improve the company’s brand awareness was
entitled “Sponsors of Tomorrow.” The commercials highlighted Intel’s role in changing the
future of technology and took a humorous tone. In one, a middle-aged man wearing his
company ID tag struts through the cafeteria as fellow employees scream, grope, and beg for
his autograph. The screen reads, “Ajay Bhatt, co-inventor of the U.S.B.” as the employee
(played by an actor) winks at a fan. The ad ends with the line, “Our superheroes aren’t like
your superheroes.”
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As Intel’s superheroes continue to create powerful microprocessors for smaller and more
mobile devices, the company’s brand value continues to grow, as does its influence on the
future of technology.
Questions
1. Discuss how Intel changed ingredient-marketing history. What did it do so well in

those initial marketing campaigns?
Intel launched the ‘’Intel inside’’ campaign to build brand awareness and it helped move the
Intel brand outside the PC and into the minds of customers. It builds strategic alliance with
stakeholders and give them rebates to support Intel’s marketing strategies. Advertising their
products by ‘’Bunny People’’ and ‘’Blue Man Group’’ in its commercials. Develop new
products for new target market and combine it to important issue. There is an example that
Intel created the classmate PC for children in remote regions of the world, and it is called Intel
Learning Series, intended to help expand education in technology throughout the world. Intel
never protected their product from their competitors by product name is known as “486”. Intel
made ingredient branding marketing campaign, they had opt business named called Pentium
and launched the “Intel inside campaign to build awareness of its whole family of
microprocessors. Initial marketing Campaigns: In order to execute the new brand strategy, it
was essential that the computer manufacturers who used Intel processors support the program
Intel gave them significant rebates at the same time included their logo in their PC Ads.
2. Evaluate Intel’s more recent marketing efforts. Did they lose something by dropping
the “Intel Inside” tagline or not?
25
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Case StudyHSBC Module 5
HSBC wants to be known as the “world’s local bank.” This tagline reflects HSBC’s
positioning as a globe-spanning financial institution with a unique focus on serving local
26
markets. Originally the Hong Kong and Shanghai Banking Corporation Limited, HSBC was
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established in 1865 to finance the growing trade between China and the United Kingdom. It’s
now the second largest bank in the world.
Despite serving over 100 million customers through 9,500 branches in 85 countries, the bank
works hard to maintain a local presence and local knowledge in each area. Its fundamental
operating strategy is to remain close to its customers. As HSBC’s former chairman, Sir John
Bond, stated, “Our position as the world’s local bank enables us to approach each country
uniquely, blending local knowledge with a worldwide operating platform.”
Ads for the “World’s Local Bank” campaign have depicted the way different cultures or
people interpret the same objects or events. One TV spot showed a U.S. businessman hitting a
hole-in-one during a round in Japan with his Japanese counterparts. He is surprised to find
that rather than paying for a round of drinks in the clubhouse, as in the United States, by
Japanese custom he must buy expensive gifts for his playing partners. In another international
TV spot, a group of Chinese businessmen take a British businessman out to an elaborate
dinner where live eels are presented to the diners and then served sliced and cooked. Clearly
disgusted by the meal, the British businessman finishes the dish as the voice-over explains,
“The English believe it’s a slur on your hosts’ food if you don’t clear your plate.” His Chinese
host then orders another live eel for him as the voice-over explained, “Whereas the Chinese
feel that it’s questioning their generosity if you do.”
HSBC demonstrated its local knowledge with marketing efforts dedicated to specific
locations. In 2005 it set out to prove to jaded New Yorkers that the London based financial
behemoth was a bank with local knowledge. The company held a “New York City’s Most
Knowledgeable Cabbie” contest, in which the winning cabbie got paid to drive an HSBC-
branded BankCab fulltime for a year. HSBC customers could win, too. Any customer
showing an HSBC bank card, checkbook, or bank statement was able to get a free ride in the
BankCab. HSBC also ran an integrated campaign highlighting the diversity of New Yorkers,
which appeared throughout the city.
More than 8,000 miles away, HSBC undertook a two-part “Support Hong Kong” campaign to
revitalize a local economy hit hard by the 2003 SARS outbreak. First, HSBC delayed interest
payments for personal-loan customers who worked in industries most affected by SARS
(cinemas, hotels, restaurants, and travel agencies). Second, the bank offered discounts and
rebates for HSBC credit card users when they shopped and dined out. More than 1,500 local
merchants participated in the promotion.
HSBC also targets consumer niches with unique products and services. It found a little-known
product area growing at 125 percent a year: pet insurance. The bank now distributes
nationwide pet insurance to its depositors through its HSBC Insurance agency. In Malaysia,
HSBC offered a “smart card” and no-frills credit cards to the underserved student segment
and targeted high-value customers with special “Premium Centers” bank branches.
In order to connect with different people and communities, HSBC sponsors more than 250
cultural and sporting events with a special focus on helping the youth, growing education, and
embracing communities. These sponsorships also allow the company to learn from different
27
people and cultures around the world.

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The bank pulls its worldwide businesses together under a single global brand with the
“World’s Local Bank” slogan. The aim is to link its international size with close relationships
in each of the countries in which it operates. HSBC spends $600 million annually on global
marketing, consolidated under the WPP group of agencies. In 2006, HSBC launched a global
campaign entitled “Different Values,” which embraced this exact notion of multiple
viewpoints and different interpretations. Print ads showed the same picture three times with a
different interpretation in each. For example, an old classic car appeared three times with the
words, freedom, status symbol, and polluter. Next to the picture reads, “The more you look at
the world, the more you realize that what one person values may be different from the next.”
In another set of print ads, HSBC used three different pictures side by side but with the same
word. For example, the word accomplishment is first shown on a picture of a woman winning
a beauty pageant, then an astronaut walking on the moon, and finally a young child tying his
sneaker. The copy reads, “The more you look at the world, the more you realize what really
matters to people.” Tracy Britton,head of marketing for HSBC Bank, USA, explained
thestrategy behind the campaign, “It encapsulates our globaloutlook that acknowledges and
respects that peoplevalue things in very different ways. HSBC’s global footprintgives us the
insight and the opportunity not only to becomfortable, but confident in helping people with
differentvalues achieve what’s really important to them.”
HSBC earned $142 billion in sales in 2009, making itthe 21st largest company in the world. It
hopes its latestcampaign and continued position as the “World’s LocalBank” will improve its
$10.5 billion brand value, whichplaced it 32nd on the 2009 Interbrand/BusinessWeekglobal
brand rankings.
Questions
1. What are the risks and benefits of HSBC’s positioningitself as the “World’s Local
Bank”?
HSBC's risks positioning itself as the "World's Local Bank" when they have to work to
maintain local knowledge in each area of the world. The benefits are that their global
campaign of "Different Values" focuses on multiple viewpoints and different interpretations
of their customers. They focus on how everyone sees things with different viewpoints, and
HSBC acknowledges and respects that people value things in different ways. They strive to
help people with different values. By being the "World's Local Bank" this means that they
would have to hire a lot of people who are knowledgeable of different ethnicities. They would
have to work with a lot of different clients being on a neutral standpoint since they should not
be favoring a group of people over others. The main problem with this is that they would have
to work with many different values of people, since they will be working with so many
different people who value different things.
2. Does HSBC’s most recent campaign resonate with itstarget audience? Why or why
not?
28
Case StudyPAMPERS Module 6

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Procter & Gamble (P&G) began in 1837 when brothers-inlaw William Procter and James
Gamble, hose wives were sisters, formed a small candle and soap company. From there, P&G
innovated and launched scores of revolutionary products of superior quality and value,
including Ivory soap in 1882, Tide laundry detergent in 1946, Crest toothpaste with fluoride
in 1955, and Pampers disposable diapers in 1961. P&G also acquired a number of companies
to open the doors to new product categories. Among these were Richardson-Vicks (makers of
personal care products like Pantene, Olay, and Vicks), Norwich Eaton Pharmaceuticals
(makers of Pepto-Bismol), Gillette, Noxell (makers of Noxzema), Shulton’s Old Spice, Max
Factor, and the Iams Company.
Today, P&G is one of the most skillful marketers of consumer packaged goods in the world
and holds one of the most powerful portfolios of trusted brands. The company employs
138,000 people in more than 80 countries worldwide and has total worldwide sales of more
than $79 billion a year. It is the leader in 15 of the 21 product categories in which it competes,
has 23 billion-dollar global brands, spends more than $2 billion annually on R&D, and serves
more than 4 billion people in 180 different countries. Its sustained market leadership rests on
a number of capabilities and philosophies:
• Customer knowledge. P&G studies its customers— both end consumers and trade partners
—through continuous marketing research and intelligence gathering. It spends more than
$100 million on over
10,000 formal consumer research projects every year and generates more than 3 million
consumer contacts via its e-mail and phone center. It also emphasizes getting its marketers
and researchers out into the field, where they can interact with consumers and retailers in their
natural environment.
• Long-term outlook. P&G takes the time to analyze each opportunity carefully and prepare
the best product, then commits itself to making this product a success. It struggled with
Pringles potato chips for almost a decade before achieving market success. Recently, P&G
has focused on increasing its presence in developing markets by concentrating on
affordability, brand awareness, and distribution through e-commerce and high frequency
stores.
29
• Product innovation. P&G is an active product innovator, devoting $2 billion annually to

research and development, an impressively high amount for a packaged goods company. It
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employs more science PhDs than Harvard, Berkeley, and MIT combined and applies for
roughly 3,800 patents each year. Part of its innovation process is to develop brands that offer
new consumer benefits. Recent innovations that created entirely new categories include
Febreze, an odor-eliminating fabric spray; Dryel, a product that helps “dry-clean” clothesat
home in the dryer; and Swiffer, a cleaning system
that more effectively removes dust, dirt, and hair fromfloors and other hard surfaces.
• Quality strategy. P&G designs products of aboveaveragequality and continuously improves

them inways that matter to consumers, including Tide compactdetergents, Pampers Rash
Guard (a diaper thattreats and prevents diaper rash), and improved two-inoneshampoo and
conditioner products for Pantene,Vidal Sassoon, and Pert Plus.
• Brand extension strategy. P&G produces its brands inseveral sizes and forms. This strategy
gains more shelfspace and prevents competitors from moving in tosatisfy unmet market
needs. P&G also uses its strongbrand names to launch new products with instantrecognition
and much less advertising outlay. TheMr. Clean brand has been extended from
householdcleaner to bathroom cleaner, and even to a carwashsystem. Old Spice extended its
brand from men’s fragrancesto deodorant. Crest successfully extendedinto a tooth-whitening
system called Crest Whitestripsthat removes surface stains from teeth in 14 days.
• Multibrand strategy. P&G markets several brands in thesame product category, such as
Luvs and Pampers diapersand Oral-B and Crest toothbrushes. Each brandmeets a different
consumer want and competes againstspecific competitors’ brands. At the same time, P&G
iscareful not to sell too many brands and has reduced itsvast array of products, sizes, flavors,
and varieties in recentyears to assemble a stronger brand portfolio.
• Communication pioneer. With its acquisition ofGillette, P&G became the nation’s largest
advertiser,spending over $2.3 billion a year or nearly twice asmuch as the number two
company, General MotorsCorp. P&G pioneered the power of television tocreate strong
consumer awareness and preference.In recent years, the company has shifted more of
itsadvertising budget to online marketing efforts andsocial media such as Facebook, Twitter,
and blogs.These efforts help infuse stronger emotional appealsinto its communications and
create deeperconsumer connections.
• Aggressive sales force. P&G’s sales force has beennamed one of the top 25 by Sales &
MarketingManagement magazine. A key to its success is theclose ties its sales force forms
with retailers, notablyWalmart. The 150-person team that serves the retailgiant works closely
with Walmart to improve both theproducts that go to the stores and the process bywhich they
get there.
• Manufacturing efficiency and cost cutting. P&G’s reputationas a great marketing company
is matched byits excellence as a manufacturing company. P&Gspends significant amounts
developing and improvingproduction operations to keep its costs amongthe lowest in the
industry, allowing it to reduce thepremium prices at which some of its goods sell.
• Brand-management system. P&G originated the brand-management system, in which one

30
executive is responsible for each brand. The system has been copied by many competitors but
not often with P&G’s success. Recently, P&G modified its general management structure so
Page
each brand category is now run by a category manager with volume and profit responsibility.
Although this new organization does not replace the brand-management system, it helps to
sharpen strategic focus on key consumer needs and competition in thecategory.P&G’s
accomplishments over the past 173 years have come from successfully orchestrating the
myriad factors that contribute to market leadership.
Questions
1. P&G’s impressive portfolio includes some of the strongest brand names in the world.
What are someof the challenges and risks associated with being themarket leader in so
many categories?
Procter and Gamble’s impressive portfolio of strong brand names can present challenges
because of brand overlap. For example, they occasionally represent multiple brands within the
same field such as Crest and Oral-B. Although directed at two different market groups, these
two dental product companies are competitors. By focusing on one brand in marketing, P&G
must be careful not to overlap the branding of the other. Otherwise they would be literally
competing against themselves. Analyzing and computing brand equity is a valuable tool in
deciding how each brand does by comparing the profitability effect on each. Also, if one
brand within the umbrella brand of P&G is bad it reflects negatively upon the other brands,
bringing down their value. Overall, P&G’s “house of brands” (Kotler 261), technique is a
positive aspect in expansion and increasing profitability.
P&G adopts a multi-brand approach a portfolio of over 300 brands, with 25 brands making
over US$1billion in annual sales in 2012 (P&G, 2012). With upward stretching brands like
Dunhill and Lacoste Fragrances, to brands targeted at mass consumption like Pantene, P&G
has claimed market leadership in numerous consumer product categories worldwide.
2. With social media becoming increasingly importantand fewer people watching

traditional commercials on television, what does P&G need to do to maintainits strong
brand images?
3. What risks do you feel P&G will face going forward?
Seeing that P&G has set such a high standard for themselves and their products, it may be a
challenge to remain innovative and increase profitability. Their brand could suffer if they
don’t keep up with the expectations of their consumers and partner business such as Walmart.
Another risk it could face is over extending beyond their management capabilities. This could
result in brank dilution, where consumers no longer associate a brand with a specific set of
products and start thinking less of the brand [265]. But as of now they have the largest
portfolios in their field, so their risk is expanding too far and overlapping brands within the
same field.
31
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PRESENTATION OF STUDY MATERIAL

STUDY MATERIAL SUBMISSION DEADLINE

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How Mercedes try to influence the customer to buy their product?

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If McDonald’s Advertised Like AppleModule 2

What is Marketing & Brand Strategy?

is a key aspect of marketing.

4Principles of Marketing StrategyModule 3

What is the mantra of marketing according to Mr Klotter?

"CCDVTP": C: CREATE. C: COMMUNICATE AND D: DELIVER. V: THE VALUE. T:

How Virgin differentiate from another offer in their sector?

MasterCard Priceless ElephantModule6

Group Discussion Questions

These criteria can be assessed with the following questions:

Marketing Plan Directions:

Section 1 - Situational Analysis:

• Give a brief description of your product or service.

• Is there anything special about your product?

• Internal Strength and Weakness of your company

• External Opportunities and Threats for your company

• Who are your direct competitors?

• Are there any indirect competitor considerations to be aware of? If someone is

• Demographics and Psychographics

• Geographic Segmentation (if applicable)

Section 2 – Strategic Planning

wallets. We should take

CISCO Developing Marketing Strategy

Today, Cisco continues to acquire companies—including 40 between 2004 and 2009—that

1. How is building a brand in a business-to-business context different from doing so in

the questions how and why.

INTEL Marketing Strategy

1. Discuss how Intel changed ingredient-marketing history. What did it do so well in

people and cultures around the world.

Case StudyPAMPERS Module 6

• Product innovation. P&G is an active product innovator, devoting $2 billion annually to

• Quality strategy. P&G designs products of aboveaveragequality and continuously improves

• Brand-management system. P&G originated the brand-management system, in which one

2. With social media becoming increasingly importantand fewer people watching

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