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Marketing & Innovation

Part 1 Marketing
Chapter 1: Introduction to Marketing
Summer Semester 2021
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Lecturer: Harald Pflughaupt MBA
Berlin Professional School
Berlin School of Economics and Law

Script only for teaching purposes at HWR Berlin


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Marketing & Innovation

Baines, P.; Fill, Chr.; Page, K. (2013):


Essentials of Marketing, Oxford
Herbes, C.; Friege, C. (2017): Marketing
Renewable Energy, Stuttgart
Compulsory reading: Hollensen, S. (2020): Global Marketing,
Kotler, P. and Keller, K.L. (2015): Marketing
Management, 15th edition, Upper Saddle
River, New Jersey

Kotler, P.; Keller, K.; Braidy, M.; Goodman, M.;


Hansen, T. (2016) : Marketing Management, Harlow

Additional reading: Kotler, P.; Kartajaya, H.; Setiawan, I. (2017):


Marketing 4.0: Moving from traditional to digital,
Kucuk, S. Umit (2017): Visualizing Marketing
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Porral, C.; Stanton, J. (2017): Principles of Marketing

Literature

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Profile Harald Pflughaupt

§ Studies of telecommunications and economics in Berlin and Master of


Business Administration (MBA) in Cambridge (UK).
§ Professional experience in German in industrial corporations from the
development of high-speed-fibre optical systems to positions as a
product manager, controller, change manager, head of strategy
development and head of marketing.
§ Since 2006 founder and managing director of an international
management and marketing consulting company. In addition to
international medium-sized companies and concerns, Berlin start-up
companies and technology companies are advised.

§ Focus projects are in the area of strategy and business model


development, marketing, process and supply chain management,
currently particularly related to the digital transformation.
§ Since 2007 lecturer at several Berlin universities in bachelor and
master programms.
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§ The courses include Business Administration, Marketing, Strategic


Management, Change and Risk Management, Entrepreneurship,
Supply Chain and Operations Management.
Profile Harald Pflughaupt

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Learning outcomes

§ By the end of this section you should be able to


§ define and differentiate central terminology,

§ differentiate between strategic and operative levels of marketing,

§ develop competence in marketing and innovation management with a special focus on


marketing targets, marketing strategies and marketing instruments as well as concepts
and tools of innovation management

§ be able to apply marketing skills in different business environments

§ be given opportunities to understand and develop their competencies and their analytic
abilities as team members and as leaders

§ have an understanding of the relevant marketing management aspects in the national and
international context

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Learning outcomes

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Introduction

§ Dear students,
§ I welcome you to the lecture Marketing and Innovation. In your studies so
far, you have already learned many aspects about the influences of
environmental factors and the resulting opportunities for companies and
organisations. You have also learned how to create structures and develop
strategies in the company in order to be competitive. Of course,
competitiveness also means winning customers for your own services or
products. This is where marketing comes in.
§ In this module you will learn why marketing plays a decisive role in the
management of companies, which decisions are behind it and how we build
up marketing knowledge and successfully apply instruments. We will apply
our findings on the context and conditions in the Renewable Energy
Industry. Therefor your experience is needed and needs to be transferred
into the theoretical results.
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§ The subject area of innovation is examined in depth in the 2nd section of


the lecture. The importance of innovations for the economy, society and
politics is made clear here, you will learn about relevant concepts and
instruments from the idea to the market launch of innovations.
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Timetable

2021 2021 2021 2021 2021 2021 2021 2021 2021 2021

7.- 14.- 21.- 5.-


10.-16.5. 17.-23.5. 24.-30.5. 31.5.-6.6. 13.6. 20.6. 27.6. 28.6.-4.7. 11.7. 12.7.- ...
Mo 14:30- 14:30- 14:30-
16:00 16:00 16:00
Di 14:30-
16:00
Mi 14:30-
16:00
Do

Fr 14:30-
16:00
Sa

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Marketing Marketing Strategies Self study, Self study Self study Innovation Innovation Innovation Self study
Introduction Orientations and exercises exercises exercises Understand Develop + Tools
Definitions Marketing Marketing Marketing Marketing Digital + Plan Implement
Concept of Plan Mix Mix Mix Marketing
Marketing

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Exam / Assignments

1. 50% of the examination consists of:


§ Prototyping/Innovation pitch (presentation of an innovation to a group of investors) with reference to
renewable energies. It should be clear how the systematic planning and development of the innovation
(collection of ideas, evaluation, etc.) has proceeded.

§ (video or paper) (group assignment, 2-4 students/group; Group work with 2-4 students per group.
approx. 8-10 minutes/student or written paper 1.500 words + appendix; 50%) Deadline: 2.8.2021

1. 50% of the examination consists of:


§ Option A the creation of a marketing concept with a focus on the application of marketing instruments
(marketing mix) for a company, product, service or project related to Renewable Energies.

§ Option B the planning of a marketing campaign for the innovation elaborated for Assignment 1.

§ Analysis of the status quo.

§ Target formulation and selection of the target group.

§ Strategic planning and conception (can be related to module Strategy + Entrepreneurship).


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§ Selection of marketing instruments (àmarketing mix) and channels.

§ Selection and design of the message.

§ Timing and implementation

§ Both options with 1.500 words + appendix, Deadline: 17.9.2021

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Structure of the Lecture

Chapter 1 Introduction to Marketing Definitions, 4 Components, Value Text 1 Better Marketing for a better world
Text 2 Principles of Marketing

Orientations, Marketing Concept, Text 3 Marketing Renewable Energy


Chapter 2
Plan, Relations to Strategy, Strategic Text 4 Strategic Marketing
Marketing Orientations
and Operational marketing Text 5 Visualizing Marketing
Marketing Concept and Plan

Chapter 3 Relations to Business Model, Target Group, Further working materials will be
Marketing Mix Segmentation, Positioning, 4P, 7P, Details to published step by step
Application on Renewable Energy Product, Price, Promotion, Place,
Marketing Mix for Ren. Energy,

Chapter 4 CRM, Social Media, Big data, E-Commerce,


Digital Marketing Online- and Mobile Marketing

Chapter 5 Definition, Kondratieff-cycles, innovation


Innovation Understand + Plan process, phases, Innovation checklist,

Open and Closed Innovation, roles, idea


Chapter
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generation, timing, communication, testing
Innovation Develop + Implement

Design Thinking, 6Sigma/DMAIC,


Chapter 7 Pitch Presentation, Morphological
Innovation Tools box, Fishbone Diagram,
Structure of the Lecture

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Development phases of marketing (1) (after World War II)

1st phase of procurement orientation (post-war 1950s)

2nd phase of production orientation (1950s)


Sellers' markets

3rd phase of sales orientation (1960s)


Transition to the buyer's market

4th phase of market orientation (1970s)


Buyers' markets
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Development phases of marketing (2)

5th phase of competitive orientation (1980s)


Ø Quality competition
Ø Cost competition
Ø Time competition

6th phase of environment orientation (1990s)


Ø Environment (pollution)
Ø Public (stakeholders)

7th phase of network orientation (from 2000)


Ø global competition
Ø Business relationship management (customer loyalty)
Ø Individualisation
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Ø Sustainability (sustainable development)


Ø Online marketing

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Marketing today

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Definition - What is marketing?

„Marketing is the activity, set of institutions, and processes for creating,


communicating, delivering, and exchanging offerings that have value
for customers, clients, partners, and society at large.“
(definition of the American Marketing Association, last approval in 2017)
„Social and managerial process by which individuals and groups obtain
what they need and want through creating, offering and exchanging
products of value with others.“ (Kotler, Keller 2006)
„Marketing is an entrepreneurial mindset. It is concretised in the
analysis, planning, organisation, implementation and control of all
internal and external corporate activities that aim to achieve sales
market-oriented corporate goals by aligning corporate performance with
customer benefits in the sense of consistent customer orientation.“
(Meffert 2015)
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The definitions have 4 major components:

What all these definitions have in common, are these 4 major components:
1 creating an offering for customers
2 exchanging the offering at the right value with customers
3 delivering that offering to customers
4 communicating that offering to customers
Product

Communicating Value Creating Value

Promotion Customer Price

“Without the light of customer demand,


the solar system of companies
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and their marketing cannot exist.“

Place

Based on Kucuk 2017

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Discussion

§ What is „value“? Are there differences and common factors/similarities of


private customers (consumers, b2c) and business customers (b2b)?
§ Collect first ideas, how „renewable energies“ can be related to this!
(Discussion today, next week (19.5.) or collect ideas in the Moodle-forum)
§ Read text „Marketing for a better world!“ (Discussion next week (18.5.) or
collect ideas in the Moodle-forum)

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Different Marketing Areas of Commercial Marketing

Commercial Marketing
(Profit-Organisation)

Consumer goods Service Capital goods

Consumables Comsumer Consumptive Investment Anlage Parts


goods service service Raw materials

Consumer Goods- Capital Goods


Marketing Services Marketing
Marketing

Common area of sectoral


indirect multi-level marketing direct single-level.
mass marketing individual marketing
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cigarettes, prefabricated Consulting turnkey factories, Chemical fibres,


toothpaste houses PC crude oil
Automotive Insurances Database Electric motors
PC car repair systems injection pumps

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The Marketing Orientations

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5 + SUSTAINABLE MARKETING

Source: based on Kotler et al. 2003

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Which orientations can be seen here? Select options 1-5

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1 Production 2 Product 3 Selling 4 Marketing 5 Societal


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Which orientations can be seen here? Select options 1-5

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1 Production 2 Product 3 Selling 4 Marketing 5 Societal


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Which orientations can be seen here? Select options 1-5

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1 Production 2 Product 3 Selling 4 Marketing 5 Societal


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Mass versus Individual Marketing

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Premium versus Discount

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Global versus Lokal

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Economy versus Responsibility

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Link to Strategic Management

§ Analyses
§ Company analysis
§ Environment analysis
Strategic
§ Strategy development
Strategy Marketing
§ Strategic options
Controlling Analyses
§ Evaluation of options
§ Development of a strategy

Strategic § Strategy implementation Operational


§ Measures and project plan
Management Marketing
§ Organisation
Strategy § Strategy controlling and adjustment
Implementation Strategy § Review of premises
Development § Progress control
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§ Deviation analysis
§ Adjustment of the strategy

Review: Elements of Strategic Managements

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Strategic und operational Marketing

LEPESTC
SWOT
Marketing Environment
Competition Customer Own Industry
Enterprise

Data, Information

Situation analyses
Forecasts

Strategic Marketing
Philosophy Vision Targets Strategy

Markets Program Competition


Segments Instruments Retail

Operational Marketing
Marketing-Goals

Product Price Promotion Place People Physic. Fac. Processes


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Marketing-Implementation and Evaluation

Organisation Systems Culture Controlling

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From Strategy to Operational Marketing

Strategy § Definition: Strategies define the necessary framework for action or the
route ("How do we get there?") to ensure that all operational instruments
Instruments / are also used in a target-oriented manner. The operational level thus
Marketing Mix includes the implementation of the strategic decision.

Strategy = basic regulation Tactics = operational actions


(fundamental predispositions) (ongoing dispositions)
Characteristics: Characteristics:
• structure-determining (constitutive) • process-determining (situational)
• real (electoral) decisions • routine decisions (habitual behaviour)
• medium/long-term oriented • short-term oriented
• delayed or effective in stages • immediately effective
• difficult to correct • easily correctable

Source: based on Becker, J. (2009), p. 143


Decision-making situation: Decision-making situation:
• complex, poorly structured decision field • manageable, well-structured decision field
• Make fundamental decisions today for tomorrow • make problem-solving decisions for today
• Holistic thinking necessary • Particular thinking is in the foreground
• Macro-emphasised, rather qualitative approach • micro-emphasised, rather quantitative approach
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Basic orientation overall: Basic orientation overall:


Effectiveness criterion → "doing the right things Efficiency criterion → "doing things right".

Definition and delimitation Strategic vs. Operational Marketing

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Discussion

§ In the lecture „Strategy and Entrepreneurship“ you have learned numerous


tools for analysing external and internal influences. Which external aspects
are relevant for marketing? Collect examples.

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