Group 2 - Marketing Theories Ebook

MARKETING
THEORIES
MARKETING MANAGEMENT II
MANAGEMENT DEPARTMENT
UNIVERSITAS DIPONEGORO
2022
LECTURER
Prof. Augusty Tae Ferdinand, DBA
Farhan Muhamad Kamil D
Krissanti Pinaring Gusti
12010120190120
12010120190152
Michelle Christabel
Rahmawati Imani
12010120190344
12010120190112
Wina Indira Dewi

12010120190121
Foreword
First of all, thanks to God because of the help of thee, writers finished the
assignment of compiling the theory of marketing right in the calculated time.
The purpose in writing this paper is to fulfill the assignment that had been given
by Prof. Augusty Tae Ferdinand, DBA as lecturer in Marketing course.
We hope that with this theory compilation, those who will need it will benefit from
it and that this knowledge of us will be useful for the future generations as the
shortcut of learning marketing. Even though This book may contain many
shortcomings that are overlooked by the writer but we hope this foundation will
be enough for the creation of a better one.
Table of Content
• Resource-Advantage Theory of Competition........................................................................................................6
• Service Dominant Logic Theory...............................................................................................................................24
• Consumer Culture Theory.........................................................................................................................................40
• Goal Setting Theory.....................................................................................................................................................52
• Agency Theory..............................................................................................................................................................65
• Self-Congruence Theory.............................................................................................................................................82
• Entrepreneurial Marketing......................................................................................................................................98
• Experiential Marketing............................................................................................................................................114
• Relationship Marketing...........................................................................................................................................128
• Green Marketing.........................................................................................................................................................141
• Hospitality Marketing..............................................................................................................................................155
• Tourism and Destination Marketing...................................................................................................................169
• Public Sector Marketing...........................................................................................................................................184
Marketing Management
II
RATOC Theory
WHAT IS RATOC?
Research Advantage Theory of Competition is a general

theory of competition invented by Hunt and Morgan that
is able to explain the process of competition in companies.
Competition according to the R-A Theory is an
evolutionary and disequilibrium-provoking dynamic
process. The process consists of a continuous struggle
between firms to gain a comparative advantage in
resources that will result in a competitive advantage in
market position and superior financial performance.
ESSENCE AND MEANING
The resource-based theory of competitive advantage argues
that the long-term success of any business innovation is based
upon the internal resources of the firm offering it, the firm’s
capabilities in using those resources to develop a competitive
advantage over competing options, and the innovation’s
contribution to financial performance of the firm in a market.
MAIN ELEMENTS OF RATOC
MAIN ELEMENTS OF RATOC
9 PREMISES OF RATOC
1.Demand is 2. Consumer 3. Human motivation is

heterogeneous across
information is imperfect constrained self-interest
industries, within industries
and costly seeking.
and dynamic.
4. The Firm's objective 5. The Firm's

is superior financial information is imperfect
performance and costly
9 PREMISES OF RATOC
6. The Firm's resources are

7.Resources characteristic
financial, physical, legal,
are heterogeneous and
human, organizational,
imperfectly mobile.
informational and relational.
8. The role of management is 9. Competitive dynamics

to recognize, understand, are disequilibrium-
create, select, implement, and provoking with innovation
modify strategies. endogeneus.
SCHEMATIC OF RATOC
MATRIX OF COMPETITIVE POSITION
THEORY APPLICATION IN RESEARCH AND
PRACTICES
R-A theory views the role of management in the company by means of

business strategy. The role of management (both owner and non-owner) is to
be recognized and understood current strategy, create a new strategy, choose
the preferred strategy, implement the chosen strategy, and modifying the
strategy over time. "Implementation," of course, includes thousands of
everyday decisions to be made and activities to be performed to manage the
company. All strategies (at the business unit level) involves:
(1) identification of market segments
(2) suitable market offer
(3) the resources needed to generate the offer
THEORY APPLICATION IN RESEARCH AND
PRACTICES
For R-A theory, competition is an evolutionary process in which firms

act provoke disequilibrium. In this process, innovation is endogenous. R-A
theory states that environmental factors only affect behavior and performance.
Relative resource heterogeneity and immobility imply that strategic choices
must be made, and this choice affects performance. All companies will not
adopt the strategy the same one. Multiple resources suggest targeting
different market segments and/or compete with different competitors. The R-A
competition process allocate resources efficiently, because it creates new
resources, improvement process productivity and generate economic growth
and wealth.
EXAMPLE OF PT. Maspion is one of the big companies whose products
are widely distributed in Indonesia throughout Indonesia.
THEORY Maspion has several business fields that are its core
business. Among those are in the field of consumer
products, such as plastic thermos, refrigerators, stoves,
APPLICATION fans wind, etc. In running its business, PT Maspion

emphasizes its consistency in its goal. This goal is of
course obtained by applying and utilizing resources power
in the company. In order to meet the company's production
targets in the field of consumer products, they applied
Human Centered Design (HCD), which is an approach to
design product that focuses on people or users. In HCD,
designers design a product or service according to needs,
habits, and human capabilities. In HCD, the company starts
with understanding people and knowing their needs. To be
able to understand people, observations would be made
first. In HCD approach, iterations are carried out in order to
achieve what is needed by the users. So here the main
comparative advantage that the company has is its human
resource capability of adapting their consumer needs.
STRATEGY SCENARIO : Gojek
Input Process Output
Innovation
Diverse Services
Innovative
Immitation
Massive Superior Financial

Market
Information Performance
Development
Available
Networking
Development
Skilled Employees
Service
Development
EXAMPLE OF MODEL
Yang, L., Huo, B. and Gu, M. (2021), "The impact of information sharing on supply chain adaptability and operational
performance", The International Journal of Logistics Management, Vol. ahead-of-print No. ahead-of-print. https://doi-
org.proxy.undip.ac.id/10.1108/IJLM-11-2020-0439
EXAMPLE OF MODEL
Tiep Le, T., Ngo, H.Q. and Aureliano-Silva, L. (2021), "Contribution of corporate social responsibility on SMEs' performance in an
emerging market – the mediating roles of brand trust and brand loyalty", International Journal of Emerging Markets, Vol. ahead-
of-print No. ahead-of-print. https://doi-org.proxy.undip.ac.id/10.1108/IJOEM-12-2020-1516
EXAMPLE OF MODEL
Borazon, E.Q., Huang, Y.-C. and Liu, J.-M. (2021), "Green market orientation and organizational performance in Taiwan’s electric
and electronic industry: the mediating role of green supply chain management capability", Journal of Business & Industrial
Marketing, Vol. ahead-of-print No. ahead-of-print. https://doi-org.proxy.undip.ac.id/10.1108/JBIM-07-2020-0321
EXAMPLE OF MODEL
Iyer, P., Davari, A., Srivastava, S. and Paswan, A.K. (2021), "Market orientation, brand management processes and brand
performance", Journal of Product & Brand Management, Vol. 30 No. 2, pp. 197-214. https://doi-org.proxy.undip.ac.id/10.1108/JPBM-
08-2019-2530
EXAMPLE OF MODEL
Jahed, M.A., Quaddus, M., Suresh, N.C., Salam, M.A. and Khan, E.A. (2022), "Direct and indirect influences of supply chain
management practices on competitive advantage in fast fashion manufacturing industry", Journal of Manufacturing Technology
Management, Vol. ahead-of-print No. ahead-of-print. https://doi-org.proxy.undip.ac.id/10.1108/JMTM-04-2021-0150
II
SDL Theory
WHAT IS SDL?
Service-Dominant Logic is a perspective invented by

Robert Lusch and Stephen Vargo that introduces a new
way for synthesizing and articulating an alternative view
of exchange and value creation in markets. The
underlying idea of S-D logic is that humans apply their
competences to benefit others and reciprocally benefit
from other's applied competences through service-for-
service exchange.
ESSENCE AND MEANING
Service Dominant Logic changes the paradigm that originally
focused on tangible resources, then became the application of
intangible and dynamic resources. S-D logic offers a new orientation
that can be applied to all marketing offerings, seeing marketing is
not just consumer-oriented, but consumer-centric which means
working together and learning from consumers to adapt
individually and understand their dynamic needs.
S-D logic promotes marketing with customers as it extends
communication, allowing companies to build a rapport and better
understand their market, while tackling any issues that may occur
throughout the product's life-cycle.
10 PREMISES OF SDL
1.Service is the 2. Indirect exchange 3. Goods are a

fundamental basis of masks the fundamental distribution mechanism
exchange. basis of exchange. for service provision. .
4. Operant
resources are the 5. All economies are
fundamental source service economies.
of strategic benefit.
10 PREMISES OF SDL
7. The firm cannot deliver 8. A service-centered view

6. The customers is always
value, but only offer value is inherently customer
Co-Creators of value
propositions. oriented and relational.
9. All social and economic 10. Value is always uniquely

actors are resource and phenomenologically
integrators. determined by the beneficiary.
THEORY APPLICATION IN RESEARCH AND PRACTICES
S-D logic’s metatheoretical framework offers a transcendent perspective that is

broadly applicable across sectors, contexts and disciplines.
• Service Research
Highlighting S-D logic’s transcending view of service

S-D logic has helped to advance the
as a perspective, significantly extends the scope of
conceptualization of a number of concepts such
service research from a narrow focus on business
as service innovation, service design,
contexts to exploring value co-creation processes in a
servicescape and customer engagement.
variety of contexts.
2. Marketing
S-D logic has been taken up across the sub-

S-D logic suggests that marketing should be
disciplines of marketing, including in branding,
understood as the study of value co-creation
supply chains, consumer culture and social
through markets, broadly applicable to
marketing. The most recent application areas also
economics, business and society at large.
include business models.
3. Manufacturing
it is argued that S-D logic and focus on value-in-

The S-D Logic suggests that The firm should be
use facilitates the development of new business
transparent and make all information symmetric
models, such as outcome-based contracts
in the exchange process, develop relationships
and other types of offerings where the
with customers, and to view goods as
supplier and the
transmitters of operant resources (embedded
customer need to jointly determine the
knowledge).
potential productivity gains over time (i.e.,
value-in-use).
4. Industrial Innovation
Service-dominant logic provides a view of

Service-dominant logic also provides a wider
innovations as novel value co-creation practices
innovation concept that includes new market
embedded in social structure. They come into
structures and the reorganization of industries
being as customers and other relevant actors
accept value propositions and enact them.
Theory application in research and practices
The application of S-D logic brings a unifying

service perspective that can enable the
development of novel insights about the co-
creation of value and supporting systems
within these diverse research streams.
STRATEGY SCENARIO : Scarlett Whitening
Product Service
Operand System
Resources
Service
Exchange
Value Customer
Actor/Resource
Resource Co-Creation Satisfaction
Integrator
Integration
Product
Operant
Development
Resources
Service
Development
EXAMPLE OF MODEL
Scarlett, G., Reksoprawiro, R., Amelia, N. and Wibowo, A.J.I. (2021), "Institutions and technology in the value co-creation process of
restaurant consumers: a service-dominant logic perspective", The TQM Journal, Vol. ahead-of-print No. ahead-of-print.
https://doi-org.proxy.undip.ac.id/10.1108/TQM-10-2020-0255
EXAMPLE OF MODEL
Sthapit, E., Del Chiappa, G., Coudounaris, D.N. and Bjork, P. (2020), "Determinants of the continuance intention of Airbnb users:
consumption values, co-creation, information overload and satisfaction", Tourism Review, Vol. 75 No. 3, pp. 511-531. https://doi-
org.proxy.undip.ac.id/10.1108/TR-03-2019-0111
EXAMPLE OF MODEL
Trang P. Tran, Enping Shirley Mai, Erik C. Taylor, Enhancing brand equity of branded mobile apps via motivations: A service-dominant logic
perspective, Journal of Business Research, Volume 125, 2021, Pages 239-251, ISSN 0148-2963, https://doi.org/10.1016/j.jbusres.2020.12.029.
(https://www.sciencedirect.com/science/article/pii/S0148296320308596)
EXAMPLE OF MODEL
Ehrenthal J.C.F., Gruen T.W., Hofstetter J.S. (2021) Recommendations for Conducting Service-Dominant Logic Research. In:
Dornberger R. (eds) New Trends in Business Information Systems and Technology. Studies in Systems, Decision and Control, vol
294. Springer, Cham. https://doi-org.proxy.undip.ac.id/10.1007/978-3-030-48332-6_19
EXAMPLE OF MODEL
EMina Tajvidi, Yichuan Wang, Nick Hajli, Peter E.D. Love, Brand value Co-creation in social commerce: The role of interactivity,
social support, and relationship quality, Computers in Human Behavior, Volume 115, 2021, 105238, ISSN 0747-5632,
https://doi.org/10.1016/j.chb.2017.11.006. (https://www.sciencedirect.com/science/article/pii/S0747563217306271)
CONSUMER
CULTURE
THEORY
What is CCT?
Consumer culture theory (CCT) is a stream of research
focusing on consumption patterns as a social and
cultural practice.
Consumer culture, according to the definitional article
by Arnould and Thompson (2005), “denotes a social
arrangement in which the relations between lived
culture and social resources, and between meaningful
ways of life and the symbolic and material resources
on which they depend, are mediated through markets”
Essence and Meaning
According to the 2005 formulation, CCT is a field of CCT explores the “heterogeneous distribution of
inquiry that seeks to unravel the complexities of meanings and the multiplicity of overlapping
consumer culture. The CCT view of culture differs cultural groupings that exist within the broader
dramatically from the conventional consumer research socio- historical frame of globalization and
representation of “culture as a fairly homogenous system market capitalism” (Arnould and Thompson,
of collectively shared meanings, ways of life, and 2005, p. 869). Further, Arnould and Thompson
unifying values shared by a member of society (Arnould (2005) emphasize “the dynamics of
and Thompson, 2005, pp. 868–869). In CCT, consumer fragmentation, plurality, fluidity, and the
culture refers to what consumers do and believe rather intermingling (or hybridization) of consumption
than an attribute of character. Similarly, “being a traditions and ways of life” (Arnould and
consumer” is an identity intrinsic to market capitalism, Thompson, 2005, p. 869).
our dominant global economic system, and the two
evolve and change in tandem.
Elements of CCT
Consumer Identity Projects Marketplace Cultures
- CCT concerns the coproductive ways - The study of marketplace cultures

in which consumers, working with addresses some of the most
marketer-generated materials, forge a distinctive features of the
coherent if diversified and often marketplace-culture intersection.
fragmented sense of self. - Marketplace cultures often define
- Consumers are conceived of as their symbolic boundaries through an
identity seekers and makers. ongoing opposition to dominant
- Considered as the goal driven (middle-class) lifestyle norms and
mainstream consumer sensibilities
Elements of CCT
Socio-historic Patterning of Mass-Mediated Marketplace Ideologies
Consumption and Consumers' Interpretive Strategies
- The institutional and social - CCT examines consumer ideology which is

structures that systematically the systems of meaning that tend to
channel and reproduce consumers'
influence consumption, such
thoughts and actions to defend dominate
as class, community, ethnicity,
interests in society.
and gender
- CCT explores how particular cultural
- Shaped by social class
production systems, such as marketing
hierarchies, gender, ethnicity,
communications systemically predispose
and families, households, and
consumers toward certain kinds of identity
other formal groups
projects.
Theory Applications In Research and Practices
One of the most iconic examples of consumer As a field of research, CCT has amassed a
culture practice is Apple's rise to the top to multitude of studies which address the diverse
technology, because it created a product that fit complexities of market-driven, global consumer
the needs of consumers in a way that buyers culture with implications for social sciences,
became part of a technology movement. As a the humanities, business studies, as well as
business owner, identifying target market is
marketing managers and policy makers. CCT
essential and involves more than just basic
provides academics and practitioners a brand
demographics. Apple strives to make using
technology easier. This is part of the culture it for research interested in the “real behavior of
has created and takes it so far as to create the real consumers”. It tries to put “the joy of
most streamlined products with simple and discovery back into such research,” yet adopts
precise packaging. a “seriousness of purpose”.
STRATEGY SCENARIO : Netflix
Entertainment
Perceived
Value
Privacy and
Security Concern
Customer Engagement Purchase Actual
User-friendliness (build trust, interest, Intention Purchase/Buying
(understandable, awareness)
easy to use,
modest design)
Brand Image Customer
Improvement Satisfaction
Credibility
Example of Models
Tsuchiya, H., Fu, Y.-M. and Huang, S.C.-
T. (2022), "Customer value, purchase
intentions and willingness to pay: the
moderating effects of
cultural/economic distance", Asia
Pacific Journal of Marketing and
Logistics, Vol. 34 No. 2, pp. 268-286.
https://doi-
org.proxy.undip.ac.id/10.1108/APJM
L-12-2019-0743
Example of Models
Srivastava, A., Gupta, N. and Rana, N.P. (2021), "Influence of consumer cosmopolitanism on purchase intention
of foreign vs local brands: a developing country perspective", International Journal of Emerging Markets, Vol.
ahead-of-print No. ahead-of-print. https://doi-org.proxy.undip.ac.id/10.1108/IJOEM-01-2021-0057
Example of Models
Anubha (2021), "Mediating role

of attitude in halal cosmetics
purchase intention: an ELM
perspective", Journal of Islamic
Marketing, Vol. ahead-of-print
No. ahead-of-print. https://doi-
org.proxy.undip.ac.id/10.1108/J
IMA-04-2021-0112
Example of Models
Wasim Ahmad, Qingyu Zhang,
Green purchase intention:
Effects of electronic service
quality and customer green
psychology, Journal of Cleaner
Production, Volume 267, 2020,
122053, ISSN 0959-6526,
https://doi.org/10.1016/j.jclepro.
2020.122053.
(https://www.sciencedirect.com/
science/article/pii/S0959652620
321004)
Example of Models
Yang Zhang, Yu Xiong, Timothy
J. Lee, A culture-oriented model
of consumers’ hedonic
experiences in luxury hotels,
Journal of Hospitality and
Tourism Management, Volume
45, 2020, Pages 399-409, ISSN
1447-6770,
https://doi.org/10.1016/j.jhtm.2
020.07.009.
(https://www.sciencedirect.com
/science/article/pii/S144767702
0301790)
GOAL-
SETTING
THEORY
What is GST?
Goal-setting theory is a theory based on the idea that setting specific and measurable goals
is more effective than setting unclear goals.
Goals Action/ Task

Behaviour Performance
Influenc Resulting
e in
- Goals, given the person has the requisite ability, motivate action.
- Difficult goals engender higher performance than does merely urging individuals to do their
best (Locke & Latham, 1990).
Essence and Meaning
Employee Ability & Knowledge Performanc
e
Equa
l
Motivational
The theory states that the simplest and most direct motivational explanation of why some people
perform better than others is because they have different performance goals.
Essence and Meaning
Content
Vague to Specific The higher the absolute level
of the goal the more difficult it
Goal Attributes
is for a person to achieve it.
Intensity
Easy, Moderate,
Difficult,
Impossible
Relationship of Goal Attributes to Task Performance
Performance is a linear function of goal difficulty. Given adequate ability and commitment
to the goal, the harder the goal the higher the performance.
Elements of GST
Clarity Challenge Commitment

clear and specific sufficiently challenging understanding and
and engaging supporting
Employees understanding
project objectives and Goals that are too tedious Employees need to
deadlines -> less risk for or easy have a understand and support the
misunderstanding. demotivating effect and will, goal they are being
therefore, result in less assigned from the
achievement satisfaction. beginning.
Elements of GST
Feedback Task Complexity

information on progress time to overcome the
towards goal learning curve
Appropriate feedback of If a goal is really tough,

results directs the make sure you give yourself
employee behaviour and some padding to give you
contributes to higher the best chance at
performance. succeeding.
Theory Application in Research and Practices
Apple Inc.’s Goal-Setting Theory
The “goal-setting theory, is one of the process theories that is applied to the Apple Inc. They
highly focus to motivate their employees to accomplish challenging task goals. The appropriate
goals-setting management within Apple Inc. is always able to help in clarifying performance
expectations. A foundation for behavioural self-management has been provided by Apple Inc. It
could motivate the work performance and self-satisfaction of the employees within the Apple Inc.
Expectancy Theory – says that an individual tends to act in a certain way with the expectation
that the act is followed by a desired outcome. Expectancy is the effort-performance linkage;
instrumentality is the performance-reward linkage; and valence is the attractiveness of the
reward.
Authentic
Work
Leadership Engagement
Trust (Vigor,
Transparency Dedication) Superior Task
Performance
Self-Regulation
Commitment Extra Effort
(Motives/Goals)
Job Satisfaction
STRATEGY SCENARIO : PUBLIC COMPANY

Examples of Model
Steffen R. Giessner, Daan Stam, Rudolf Kerschreiter, Danny Verboon, Ibrahim Salama, Goal-setting reloaded: The influence of minimal and maximal goal
standards on task satisfaction and goal striving after performance feedback, Organizational Behavior and Human Decision Processes, Volume 161, 2020,
Pages 228-241, ISSN 0749-5978, https://doi.org/10.1016/j.obhdp.2020.08.004. (https://www.sciencedirect.com/science/article/pii/S0749597820303745)
Examples of Model
Liu, B., Xue, B., Meng, J., Chen, X. and Sun, T. (2020), "How project management practices lead to infrastructure
sustainable success: an empirical study based on goal-setting theory", Engineering, Construction and Architectural
Management, Vol. 27 No. 10, pp. 2797-2833. https://doi-org.proxy.undip.ac.id/10.1108/ECAM-08-2019-0463
Examples of Model
Scobbie, L., McLean, D., Dixon, D.

et al. Implementing a framework
for goal setting in community
based stroke rehabilitation: a
process evaluation. BMC Health
Serv Res 13, 190 (2013).
https://doi.org/10.1186/1472-
6963-13-190
Examples of Model
George A. Shinkle, Gerard P.
Hodgkinson, Michael Shayne Gary,
Government policy changes and
organizational goal setting:
Extensions to the behavioral
theory of the firm,
Journal of Business Research,
Volume 129,
2021,
Pages 406-417,
ISSN 0148-2963,
https://doi.org/10.1016/j.jbusres.20
21.02.056.
(https://www.sciencedirect.com/sci
ence/article/pii/S01482963210014
54)
Examples of Model
Hadi, N.U. and Chaudhary, A. (2021), "Impact of shared leadership on team performance through team reflexivity: examining the
moderating role of task complexity", Team Performance Management, Vol. 27 No. 5/6, pp. 391-405. https://doi-
org.proxy.undip.ac.id/10.1108/TPM-10-2020-0085
II
Agency Theory
WHAT IS AGENCY THEORY?
Agency theory is a principle introduced by Stephen Ross

and Barry Mitnick in 1973 that is used to explain and
resolve issues in the relationship between business
principals and their agents. Most commonly, that
relationship is the one between shareholders, as
principals, and company executives, as agents.
ESSENCE AND MEANING
Agency theory is used to understand the relationships between
agents and principals. The agent represents the principal in a
particular business transaction and is expected to represent
the best interests of the principal without regard for self-
interest. The different interests of principals and agents may
become a source of conflict, as some agents may not
perfectly act in the principal's best interests. The resulting
miscommunication and disagreement may result in various
problems and discord within companies. Incompatible desires
may drive a wedge between each stakeholder and cause
inefficiencies and financial losses. This may leads to the
principal-agent problem.
KEY CONCEPTS OF AGENCY THEORY
• Agent and 3. Agency Cost

2. Agency
Principal
Costs that are incurred by
Agent is someone who is Refers to the relationship principals in monitoring
employed by a principal to between a principal and agency behaviour because of
carry out a task on their their agent. a lack of trust in the good
behalf. faith of agents.
By accepting to undertake a task on their behalf, an agent becomes accountable to the

principal by whom they are employed. The agent is accountable to that principal.
THE FUNDAMENTAL ASSUMPTIONS
Agency theory is founded on seven fundamental assumptions :
Bounded Information
Self-Interest Goal Conflict
Rationality Asymmetry
Preeminence of Information As A
Risk Aversion
Efficiency Commodity
ELEMENTS OF THE BASIC PRINCIPAL-AGENT MODEL
• The Technology of 2. The set of Feasible 3. The Payoffs 4. The Timing

Production Contracts to the Parties of Events
The production process is In contracts in which the The Agent’s payoff (or The time of putting all
summarized to : Agent’s total compensation “utility”) is the difference the model’s elements
(1) the Agent’s total for the period of the between the wage together from signing
contribution to firm value, contract, is in a linear received and the cost of principal-agent
(2) the action the Agent function with salary and the action taken tot he compensation contract
takes to produce output, bonus is easy to analyze as contribution to the firm to receiving
(3) events in the production it creates uniform value. compensation.
process that are beyond the incentives. A non-linear
Agent’s control. contract may create
unintended incentives.
EXAMPLEs OF PRINCIPAL-AGENT RELATIONSHIPS
Shareholders and Directors :
• The conflict of interests between principal (shareholder) and agent (director) gives rise to the
'principal-agent problem' which is the key area of corporate governance focus.
• The principals need to find ways of ensuring that their agents act in their (the principal's)
interests.
• As a result of several high profile corporate collapses, caused by over-dominant or 'fat
cat' directors, there has been a very active debate about the power of boards of directors,
and how stakeholders (not just shareholders) can seek to ensure that directors do not
abuse their powers.
• Various reports have been published, and legislation has been enacted, which seek to
improve the control that stakeholders can exercise over the board of directors of the
company.
EXAMPLEs OF PRINCIPAL-AGENT RELATIONSHIPS
Shareholders and Auditors :
• The audit is seen as a key component of corporate governance, providing an
independent review of the financial position of the organization.
• Auditors act as agents to principals (shareholders) when performing an audit and this
relationship brings similar concerns with regard to trust and confidence as the director-
shareholder relationship.
• Auditors will have their own interests and motives to consider.
• Auditor independence is of great importance to shareholders and is seen as a key factor
in helping to deliver audit quality. However, an audit necessitates a close working
relationship with the board of directors.
• Shareholders questioned the perceived and actual independence of auditors so tougher
controls and standards have been introduced to protect them.
• "Who audits the auditors?"
Agency theory used to understand the relationships

between agents and principals :
• Corporate Governance
Agents must have incentives encouraging them to

Corporate governance can be used to change act in unison with the principal's interests. Agency
the rules under which the agent operates theory may be used to design these incentives
and restore the principal's interests. appropriately by considering what interests
motivate the agent to act.
2. Supply Chain Finance
Managing complex customer-supplier

relationships such as third-party providers
Establishment of relationship including inter and
and vendors; and Calculating the benefits
intra organizational behaviors.
and costs of supply chain arrangement.
Theory application in research and practices
The Application of Agency Theory to Managing Collaborative Relationships Between Sport Organizations : The Case of Sport Canada and
Canadian Interuniversity Sport
Agency theory provided the essential guidance required to organize and present a voluminous data set in an
understandable way. The theory is applicable to a broad range of sport management questions--it serves to focus sport
organizations on their relationships in useful and practical ways by raising issues such as control, goal congruence,
contracting, and agency costs within a context of collaboration.
The Sport Canada / CIS relationship and any provincial sport organization receiving funding from a provincial government
organization would benefit from what has been learned from this case. While the specifics of each relationship could differ,
the fundamentals of this case (such as the delegation by the principal to an agent; the development of a contract; the link
between incentives and reporting; and a focus on collaborative advantage) would apply to other cases where a principal-
agent relationship exists between two amateur sport organizations. The need for collaboration between sport organizations
can be met and managed more easily through the application of an agency theory perspective to the problem. Finally, this
case study has provided a useful framework for sport organizations to use in the evaluation of their relationship
management processes, including collaboration, and agency theory makes a very practical contribution to sport
management.
STRATEGY SCENARIO : IS Development Project
Goal Conflict
Interest Alignment
Shirking Outcome- Project/

Oriented Performance
Contract Success
Privately-Held
Information
Monitoring
Low Task
Programmability
EXAMPLES OF MODELS
Tove Bøe, Boge Gulbrandsen, Øystein Sørebø, How to stimulate the continued use of ICT in higher education: Integrating Information
Systems Continuance Theory and agency theory, Computers in Human Behavior, Volume 50, 2015, Pages 375-384, ISSN 0747-5632,
https://doi.org/10.1016/j.chb.2015.03.084. (https://www.sciencedirect.com/science/article/pii/S0747563215003003)
EXAMPLES OF MODELS
Kala Kamdjoug, J.R., Bawack, R.E. and Tayou, A.E.T. (2020), "An ERP success model based on agency theory and IS success model:
The case of a banking institution in Africa", Business Process Management Journal, Vol. 26 No. 6, pp. 1577-1597. https://doi-
org.proxy.undip.ac.id/10.1108/BPMJ-04-2018-0113
EXAMPLES OF MODELS
Kala Kamdjoug, J.R., Bawack, R.E. and Tayou, A.E.T. (2020), "An ERP success model based on agency theory and IS success model:
The case of a banking institution in Africa", Business Process Management Journal, Vol. 26 No. 6, pp. 1577-1597. https://doi-
org.proxy.undip.ac.id/10.1108/BPMJ-04-2018-0113
EXAMPLES OF MODELS
Mardini, G.H. and Lahyani,

F.E. (2022), "Impact of firm
performance and corporate
governance mechanisms on
intellectual capital disclosures
in CEO statements", Journal of
Intellectual Capital, Vol. 23 No.
2, pp. 290-312.
https://doi.org/10.1108/JIC-02-
2020-0053
EXAMPLES OF MODELS
M. J. Liberatore and W. Luo,

"Coordination in
Consultant-Assisted IS
Projects: An Agency Theory
Perspective," in IEEE
Transactions on
Engineering Management,
vol. 57, no. 2, pp. 255-269,
May 2010, doi:
10.1109/TEM.2009.2013838.
SELF-
CONGRUENCE
THEORY
What is SCT?
Self-congruence is defined as “the extent to which a consumer perceives a brand
similar to his or her self-concept”.
To express their self-concept, consumers have self-verification and self-enhancement
motive.
Stronger Engagement
High Self-
between HSC Customer
Congruence Behave Brands
Resulting and Brands
Customer Favourabl in
y
Brand attachment may mediate the relationship between self-congruence (i.e. actual and
ideal) and compulsive buying behavior (i.e. impulsive and obsessive-compulsive buying).
Essence and Meaning
Consumer's Self-
Concept
Purchase Intention and

Self Consumer Preference
Congruence
Perceived
Product's Image
An individual's self-concept is heavily driven by the state of self-congruence; the

condition in which an individual's ideal or actual self-align with a brand's image or
personality.
Essence and Meaning
According to self-congruence theory, consumers use brands to express themselves and
emphasize certain aspects of their identity, symbolize status or manifest a sense of
belonging to a group
Customer
Self Congruity Engagement
Brand Loyalty
• Self congruity theory can describe how customer engagement create brand loyalty
because self-congruity can describe consumer behavior.
• The self-congruence theory defines psychological processes and outcomes. Customers

compare their perceptions of brand personality or image with their actual, ideal,
social, and ideal social self-concept.
Dimensions of SCT
Actual Self Ideal Self Social Self Ideal Social Self

driven by self-consistency driven by self-esteem driven by social- driven by social
motive motive consistency motive enhancement motive
refers to how a consumer refers to how a consumer reflects how a consumer refers to how a consumer
perceives him/herself, would like to perceive thinks he/she is being would like to be perceived
reflects the consumer's him/herself, pursue a self- perceived by others, by others, act to leave a
desire to act consistent with image as positively as increases feeling of good impression, trying to
their identity possible belongingness to a group earn approval by others
and good feelings about
his/her identity
Self-Expression Motives
Self-Consistency Self- Social- Social-

Motive Esteem Consistency Approval
Motive Motive Motive
concerns the tendency to involves the inclination to relates to the tendency to concerns the inclination to
act in ways consistent with boost self-esteem by maintain a self-image held do things to encourage
one's present self-image to reaching for one's ideal by significant others significant others to think
protect a personal identity states highly of them
Ranges of Motives
Private-Self Public-Self Consistency- Enhancement-

Motive Motive Type Motive Type Motive
self-centered in a way that focus on a third party’s encourage consumers to encourage consumers to
they focus on the perception of a consumer, stay loyal to the current state present themselves in a
perspective of the consumer predispose consumers of their self-concept, positive light, predispose
him/herself, predispose towards brands congruent predispose consumers consumers to brands
consumers towards brands congruent with their ideal
with their social self towards brands congruent
congruent with their actual
moderators of self-congruity with their actual self and
self-image and ideal self- self and ideal social self
image effect on decision-making social self
and ideal social self
Elements of SCT
Stable Element Malleable
Element
consists of personality
characteristics that are a subset of the stable
relatively generalisable self-concept activated by
across situations -> self-
social circumstances -> the
concept or Global self situational-self
self-concept
changes based on
environmental cues
There is research with the theme of "Using self-congruence theory to explain the interaction
effects of brand type and celebrity type on consumer attitude formation" The overall
experimental study was Implemented by means of the SOJUMP tool, which is a
professional Online questionnaire website frequently used with Chinese participants.
Participants were provided the following instructions: “Please take a moment to think about
the brand in the ad and describe your perception of the brand's image”. Then they were
asked to review and describe their actual self. Next, four items adapted from Sirgy et al.'s
(1997,2000), measured the participants' perceptions of the congruity between their actual
self and brand image.
”How Self-Congruence Stimulates a Desire to Mimic”
Regarding self-concept motives, affiliation, and self-esteem motives, social media plays a significant role in
creating and establishing connections between people, especially between followers and the influencers who
inspire them. Moreover, these concepts enhance congruence, along with consumers’ self-esteem.Moreover,
influencer affinity (specifically in regard to nostalgia, legitimacy, and wishful identification) enhances self-
influencer congruence. Thus, it appears that consumers and influencers have practical attitudes towards
products and services. Furthermore, social media platforms enable consumers to form positive attitudes
towards influencers with whom they feel they share beliefs. A consumer’s affiliation and self-esteem motives
lead them to purchase brands or products that align with their self-concept. Self-influencer congruence leads
consumers to mimic influencers who they admire. For that reason, consumers pay special attention to the
recommendations of influencers that they consider as their role models.
This study fills a gap in the literature regarding self-influencer congruence, showing that it persuades
consumers to purchase products or services that they feel associated with. The existing literature also
suggests that consumers’ association with influencers is based on shared perspectives and beliefs. Thus, the
study contributes to the literature by indicating positive relationships between self-influencer congruence, the
degree of recommendation, and the desire to mimic.
Actual Self-
Congruence
Superior Task
Brand
Performance
Attachment
Ideal Self-
Brand Attitude
Congruence
Brand Loyalty
Social Self-
Congruence
STRATEGY SCENARIO : Robotic Coffee Shop

Examples of Model
Wallace, E., Buil, I. and Catalán, S. (2020), "Facebook and luxury fashion brands: self-congruent posts and purchase intentions", Journal of Fashion Marketing
and Management, Vol. 24 No. 4, pp. 571-588. https://doi-org.proxy.undip.ac.id/10.1108/JFMM-09-2019-0215
Examples of Model
Arnold Japutra, Yuksel Ekinci, Lyndon Simkin, Self-congruence, brand attachment and compulsive buying, Journal of Business Research,
Volume 99, 2019, Pages 456-463, ISSN 0148-2963,
https://doi.org/10.1016/j.jbusres.2017.08.024.(https://www.sciencedirect.com/science/article/pii/S0148296317302874)
Examples of Model
Liu, C., Zhang, Y. and Zhang, J. (2020),

"The impact of self-congruity and virtual
interactivity on online celebrity brand
equity and fans’ purchase intention",
Journal of Product & Brand Management,
Vol. 29 No. 6, pp. 783-801. https://doi-
org.proxy.undip.ac.id/10.1108/JPBM-11-
2018-2106
Examples of Model
Vikas Kumar, Arun K. Kaushik, Engaging

customers through brand authenticity
perceptions: The moderating role of
self-congruence, Journal of Business
Research,Volume 138,2022,Pages 26-
37, ISSN 0148-
2963,https://doi.org/10.1016/j.jbusres.2
021.08.065(https://www.sciencedirect.c
om/science/article/pii/S0148296321006
366)
Examples of Model
Zhang, X. (2021), "Can you represent me? The influence of consumers' self-congruity on their brand loyalty behavior", Asia Pacific Journal
of Marketing and Logistics, Vol. ahead-of-print No. ahead-of-print.
Marketing
Management II
Entrepreneurial
Marketing
WHAT IS ENTREPRENEURIAL
MARKETING?
Entrepreneurial Marketing is a marketing process

that includes business planning, identifying the
needs and wants of consumers, building brand
awareness, designing a compelling message to
promote the product, and maintaining customer
relationships. Entrepreneurial Marketing is defined
as a highly effective program for finding and
improving customer satisfaction and strong
resources.
ESSENCE AND MEANING
Entrepreneurship is a big word and complex phenomenon that
encompasses many important ideas, from innovation, opportunity,
and resourcefulness to courage, alertness, and risk, fundamentally
its essence is about taking action in the world and creating value in
the process. Marketing is a vital process for entrepreneurs because
no venture can become established and grow without a customer
market. Entrepreneurial marketing is proactive identification and
exploitation of opportunities for acquiring and retaining profitable
customers through innovative approaches to risk management,
resource leveraging, and value creation. By creating new products
and services, they stimulate new employment, which ultimately
results in the acceleration of economic development.
ENTREPRENEURIAL MARKETING
ESSENTIAL CHARACTERISTICS
1. Proactive
Relationship Marketing
Orientation Innovativeness Focus on Customers
Focuses on creating a strong link
Allows firms to constantly evaluate
between the brand and the customer. Equip the firm with the knowledge to
different techniques to determine what The ability to ensure a flow of new
meet customer requirements.
works best for them. ideas.
Utilize opportunity Risk Management Value Creation

An entrepreneurial opportunity is a Risk calculation requires the
The characteristic requires
situation wherein new goods and identification of risk factors and
entrepreneurs to come up with ways to
services are introduced by analyzing attempts to mitigate or control those
add value to the lives of their
customers’ needs. risk factors altogether.
customers.
ENTREPRENEURIAL MARKETING STRATEGIES
1. Relationship Marketing
Relationship Marketing One to One Marketing
Focuses on creating a strong link Customers are marketed to as
between the brand and the customer.
between the brand and the customer. individuals. All marketing efforts are
personalized.
Viral Marketing
Real Time Marketing Digital Marketing
Places marketing messages on the
Uses the power of technology to Leverages the power of Internet tools
Internet so they can be shared and
interact with a customer in a real time. and social networking.
expanded on by customers.
APPLICATION OF ENTREPRENEURIAL MARKETING TO THE
MARKETING MIX
1. Product
The item or service designed to satisfy customer needs and wants.
Implications of an Entrepreneurial Product Strategy Examples of Entrepreneurial Products
• Focusing on the customer experience, not • Designing products that fulfill an

just product and services unknown need to create demand
• Leveraging resources to increase • Focusing on product/service aesthetic,
productivity, efficiency, and market not just the functionality
knowledge • Focusing on the customer experience of
• Continually updating and changing product/service, not just the sale
products
MARKETING MIX
2. Price
The value that is put into a product. The product's sales price reflects what consumers are willing to pay for it.
• Bundling or unbundling products to

• Abandoning cost-based pricing for
take advantage of the price
market-based pricing
• Varying prices between market
• Implementing a creative price structure
segments
• Willingness to take on a higher-risk pricing
• Emphasizing nichemanship to create
strategy for possible greater return
new pricing standard
MARKETING MIX
3. Promotion
All the activities undertaken to make the product or service known to the user.
• Effectively utilizing relationships to promote

• Thorough understanding of customers’ the brand, whether personal or through
buying activities customer influencers
• An integrated marketing strategy that • Using social media to drive two-way
includes digital marketing communication
• Finding opportunities to build community • Using cause-related marketing to connect
through social media and other means to the emotional side of the sales
experience
MARKETING MIX
4. Place (Distribution)
Where the product is going to be sold.
• Utilizing networks to distribute products

• Possessing a thorough understanding of through partnerships with larger retailers
consumer purchase behavior to provide • Varying distribution strategies based on
products/services where demand exists segments
• Practicing efficient resource utilization • Creative distribution/shipping methods to
throughout the entire distribution process reduce expenses channels that offer the
• Utilizing opportunities to form partnerships greatest reach or are currently untapped by
with other distributors competitors
Application OF Entrepreneurial marketing
The easiest way to identify an entrepreneurial marketing effort is to look at the company
doing the marketing. Start ups and emerging companies use entrepreneurial marketing to
help establish themselves in emerging industries. While businesses do start small, their goal
is to grow rapidly and to become major players in their industry as quickly as possible.
Growth is the primary goal of entrepreneurship, and marketing is the primary means for
growth.
Zappos.com, an Internet shoe store, was able to popularize online shoe shopping by
offering free, easy returns. By highlighting this innovative service in their marketing, they
were able to reassure customers who were unsure about buying shoes they could not try
on. They now sell millions of dollars worth of shoes every year.
STRATEGY SCENARIO
Cognitive Style
Entrepreneur
(emotional intelligence,
moral judgement) Attitude
Entrepreneurial
Self-Efficacy Subjective Norms
Intention
Perceived Behavioral
Social Support Control
(desirability, feasibility)
EXAMPLES OF MODELS
Dubey, P., Bajpai, N., Guha,

S. and Kulshreshtha, K. (2020),
"Entrepreneurial marketing: an
analytical viewpoint on
perceived quality and customer
delight", Journal of Research in
Marketing and
Entrepreneurship, Vol. 22 No.
1, pp. 1-19. https://doi-
org.proxy.undip.ac.id/10.1108/J
RME-09-2016-0033
EXAMPLES OF MODELS
Susanto, P., Hoque, M.E., Shah, N.U., Candra, A.H., Hashim, N.M.H.N. and Abdullah, N.L. (2021),
"Entrepreneurial orientation and performance of SMEs: the roles of marketing capabilities and social media
usage", Journal of Entrepreneurship in Emerging Economies, Vol. ahead-of-print No. ahead-of-print.
https://doi-org.proxy.undip.ac.id/10.1108/JEEE-03-2021-0090
EXAMPLES OF MODELS
Gharravi, S.K., & Hamedani, S.S. (2019). A Presentation of the Strategic Entrepreneurial Marketing Model in
the Construction Industry. https://api.semanticscholar.org/CorpusID:210124883
EXAMPLES OF MODELS
Ohanu, I.B., Shodipe, T.O. Influence of the link between resources and behavioural factors on the
entrepreneurial intentions of electrical installation and maintenance work students. J Innov Entrep 10, 13
(2021). https://doi-org.proxy.undip.ac.id/10.1186/s13731-021-00154-8
EXAMPLES OF MODELS
Nugroho, A., Prijadi, R. and Kusumastuti, R.D. (2022), "Strategic orientations and firm performance: the role of
information technology adoption capability", Journal of Strategy and Management, Vol. ahead-of-print No. ahead-of-print.
https://doi-org.proxy.undip.ac.id/10.1108/JSMA-06-2021-0133
EXPERIENTIAL
MARKETING
What is Experiential Marketing?
Background
In recent years, Brands turning to Company is

customers begin to experiential marketing to increasingly
seek out and facilitate those competing on the
become more set Effec experiences. Effec basis of customer
on experiences. t t experience.
• In current situation where exciting digital and real-world experiences are more accessible
than ever, brands need to stand out in experiential marketing
• Brands who can facilitate outstanding customer experiences will be the

ones that will differentiate themselves.
Essence and Meaning
Experiential A marketing strategy for brands to

connect with customer through
Marketing
experiences.
Experiential Marketing enables customers to not just buy products or services from a
brand, but to actually experience the brand.
Benefits of Experiential Marketing
2. Stronger connection
• Personalize 3. Creation of 4. Social
between product
d positive shareabilit
and emotion
touchpoint
Engagement y
Essence and Meaning
• Brands can create emotional connections with people by immersing their audiences
in a product or service.
Brand
Emotional
Created through memorable and
Connections unique experiences.
Customer
• The connections will help company to win new customers, keep current
customers, and create a brand loyalty to customers.
Key Elements of Successful
Experiential Marketing
Target Audience Awareness Background

Connection
figure out the customer's make the customers generate appropriate
interest aware of your actions background reason
It is unnecessary that your Make sure you have a Customers would prefer to
complete customer bank sufficient number of people test your product only if they
would like to demonstrate waiting to use your products are satisfied with your idea
your product or service. or services. This can only be behind it. Lure them with
Sometimes, choosing and done through the proper some exciting offers and
dividing it into various advertisement. establish a connection with
sections is a better option. them.
5 Core Attributes of Experiential
Marketing
Relatable Talkworthy
translating your brand to Contextual it’s not what the marketer

terms that customers can Important say but rather what your
understand and relate to. customers talk about.
the need of creating

marketing strategy that is
Relevant contextually relevant to Social
where your prospect is and
potential buyers connect what your customer the usage of social media to
emotionally with your is doing. enhance and share product
products and services. experiences.
Airbnb Experience, attempt on experiential Marketing
Airbnb recently launched Airbnb Experiences, a feature that encourages people to

“embrace the unexpected” by trying new things in new places. From pasta making classes
in Milan to salsa lessons in Miami, every experience is vetted by Airbnb and designed and
led by inspiring locals. They go beyond typical tours or classes by immersing guests in
each host’s unique world. It’s an opportunity for anyone to share their hobbies, skills or
expertise without needing an extra room.
Connecting customers with local insight helps make these cultural touchpoints more
authentic—and travelers remember that as something they can get with Airbnb.
Theory Apllication in Arts
Marketing application of steps in staging an experience: Blackfriars
Playhouse, Staunton, Virginia, USA
Develop cohesive Eliminating Engaging all

theme distractions senses
strategic communication of
maintaining consistent emphasising
authentic indoor theatre
experience and consistent ‘voice’ across all marketing multidimensional sensory
use of advertising tagline communications experience in marketing
communications
Forming Providing Soliciting

impressions memorabilia feedback
emphasis on implementation of audience

sale of wide variety of
communicating historical surveys
souvenir items
focus and authenticity.
Aesthetics
Playfulness
Superior Task
Attitudinal
Performance
Loyalty
Return on
Investment Customer
Satisfaction
Social Service
Excellent Self-
Behavioral
Congruence
Loyalty
Social Value
STRATEGY SCENARIO : THIRD-PARTY TRAVEL WEBSITES

Examples of Model
Ng, S.I., Ho, J.A., Lim, X.J., Chong, K.L. and Latiff, K. (2021), "Mirror, mirror on the wall, are we ready for Gen-Z in marketplace? A study of smart retailing
technology in Malaysia", Young Consumers, Vol. 22 No. 1, pp. 68-89. https://doi-org.proxy.undip.ac.id/10.1108/YC-06-2019-1006
Examples of Model
Kim, S.H., Jeon, D.H. and Jeon, H.M. (2021), "Well-being perception and lovemarks formation through experiential value in the context of the eco-friendly
restaurant", British Food Journal, Vol. 123 No. 12, pp. 4264-4283. https://doi-org.proxy.undip.ac.id/10.1108/BFJ-02-2021-0136
Examples of Model
Anne Köchling,Experiential marketing as a tool to enhance Tourists’ pre-travel online destination experiences? A web-based experiment,
Journal of Destination Marketing & Management,Volume 22,2021,100669,ISSN 2212-571X,https://doi.org/10.1016/j.jdmm.2021.100669.
(https://www.sciencedirect.com/science/article/pii/S2212571X21001177)
Examples of Model
Huang, Z., & He, L. (2015). Experiential marketing by attributes of experience design for hotel APPs [Ebook]. Halmstad University. Retrieved from
http://www.diva-portal.org/smash/get/diva2:827658/FULLTEXT01.pdf
Examples of Model
Chang, W.-J. (2021), "Experiential marketing, brand image and brand loyalty: a case study of Starbucks", British Food Journal, Vol. 123 No. 1, pp.
209-223. https://doi-org.proxy.undip.ac.id/10.1108/BFJ-01-2020-0014
Marketing
Management II
Relationship
Marketing
WHAT IS RELATIONSHIP
MARKETING?
Relationship Marketing is a strategy of Customer

Relationship Management (CRM) that emphasizes
customer retention, satisfaction, and lifetime customer
value. Its purpose is to market to current customers
versus new customer acquisition through sales and
advertising. The technique was first proposed by
American marketing scholars, Leonard L. Berry (1983),
and American marketing guru, Barbara Bund Jackson
(1985).
ESSENCE OF IMPLEMENTATION
Relationship marketing involves creating easy two-way communication

between customers and the business, tracking customer activities and
providing tailored information to customers based on those activities.
Relationship marketing focuses on building up customer loyalty that
includes listening to customers, providing what they want, connecting
with them on a personal level and customizing offerings for them. The
ultimate outcome of relationship marketing is a unique company asset
called a marketing network, consisting of the company and its supporting
stakeholders—customers, employees, suppliers, distributors, retailers,
and others—with whom it has built mutually profitable business
relationships. Marketing, Sales and Customer Support/Services are the
three pillars of the customer relationship.
MEANING AND IMPORTANCE
Relationship marketing helps retain customers over the long term, which
results in customer loyalty rather than customers purchase once or
infrequently. Through relationship marketing, businesses are able to
establish strong bonds with their customers, leading to customers who
are more willing to engage, purchase, and advocate.
Relationship marketing is important for its ability to stay in close contact

with customers. By understanding how customers use a brand’s products
and services and observing additional unmet needs, brands can create
new features and offerings to meet those needs, further strengthening
the relationship.
ELEMENTS OF RELATIONSHIP MARKETING
1. Relationship
TrustMarketing Communication
Bonding
The dimension
Focuses of a strong
on creating businesslink
between the determines
brand and the customer. The dimension of a business The formal and informal exchanging
relationship the level to
which each party feels they can rely relationship results in two parties and sharing of meaningful and
on the integrity of the promises (buyer and seller) acting in a unified timely information between buyers
offered by the other party. manner toward a desired goal. and sellers.
The higher the level of trust Strong personal bonds among

Communication plays in the
between buyer and seller, the buyers and sellers lead to a more
formation of cooperation and
significant commitment to
greater the probability of long- trust in partnerships.
maintaining the relationship.
term relationships.
ELEMENTS OF RELATIONSHIP MARKETING
Shared Value Emphaty Reciprocity
The extent toon
Focuses which partners
creating have
a strong beliefs
link The dimension of a business
The dimension of a business relationship that causes either party
in between
commonthe brand
about andbehaviors,
what the customer.
goals,
and policies are important or relationship that enables the two to provide favors or make
unimportant, appropriate or parties to see the situation from allowances for the other in return
inappropriate, and right or wrong. the other person's perspective for similar favors or allowances to
be received at a later date.
When exchange partners have Empathy is a necessary condition What a person gives will be the
common goals or values, they will to foster a positive relationship equivalent to what they receive
be more committed to their between two parties. from the recipient in the long run.
relationships.
theory application in practices
The Case of Southwest Airlines.
Southwest Airlines excels at building customer loyalty and repeat business. It creates an entire
customer experience through social channels, its website for booking flights and even into a
passenger's experience during a flight.
The Southwest Rapid Rewards program promotes strong brand loyalty. Rewards program
members accumulate points for every flight, from referrals and on their birthdays and other
special occasions. When frequent fliers use Southwest, additional perks kick in to retain
that customer. All of those help building long-lasting relationship with the customer .
THEORY APPLICATION IN PRACTICES
The Case of Zara
Zara is a successful story of using customer on one hand, Zara always tries to deliver one
relationship marketing to enhance its brand and consistent message that in its business strategy,
keep updated with its customers. In its relationship customer is the focal point, i.e. the company
marketing strategy, Zara adopts both concentrates all of its efforts on serving and satisfying
standardization and adaptation of its marketing mix customers. In fact, the company has a policy of
to achieve the most effective outcomes. spending a minimal amount on advertising, discounts
and gimmicks, and diverting its budget in buying
storefronts and managing its customer base
(Thompson, 2012).
EXAMPLE OF MODELS
Sousa, B.M. and Alves, G.M. (2019), "The role of relationship marketing in behavioural intentions of medical
tourism services and guest experiences", Journal of Hospitality and Tourism Insights, Vol. 2 No. 3, pp. 224-240.
https://doi-org.proxy.undip.ac.id/10.1108/JHTI-05-2018-0032
EXAMPLE OF MODELS
Yıldırım, Y., Amarat, M. and Akbolat, M. (2022), "Effect of relationship marketing on hospital loyalty: the mediating
role of patient satisfaction", International Journal of Pharmaceutical and Healthcare Marketing, Vol. ahead-of-
print No. ahead-of-print. https://doi-org.proxy.undip.ac.id/10.1108/IJPHM-01-2021-0010
EXAMPLE OF MODELS
Fazal-e-Hasan, S., Mortimer, G., Lings, I. and Kaur, G. (2020), "How gratitude improves relationship marketing
outcomes for young consumers", Journal of Consumer Marketing, Vol. 37 No. 7, pp. 713-727. https://doi-
org.proxy.undip.ac.id/10.1108/JCM-10-2019-3446
EXAMPLE OF MODELS
Shaalan, A., Tourky, M., Barnes, B.R., Jayawardhena, C. and Elshaer, I. (2021), "Arab networking and relationship marketing: is there a need for
both?", Journal of Business & Industrial Marketing, Vol. 36 No. 10, pp. 1793-1805. https://doi-org.proxy.undip.ac.id/10.1108/JBIM-02-
2020-0110
EXAMPLE OF MODELS
Jumaev, M., Dileepkumar, M., & Hanaysha, J.R. (2012). IMPACT OF RELATIONSHIP MARKETING ON CUSTOMER
LOYALTY IN THE BANKING SECTOR. The Far East Journal of Psychology and Business, 36-55.
GREEN
MARKETING
What is Green Marketing?
The concept of green marketing was introduced into industry since 1980 (Peattie and Crane,
2005) but gained prominence in the early 1990s, and it is argued to have gone through three
phases (Lee, 2008).
1st phase 2nd phase 3rd phase
ecological green marketing environmental green marketing sustainable green marketing
• the American Marketing • the marketing activities focused • implementation of more advanced
Association’s first workshop on on clean technology that involved technology, stricter regulation by
ecological marketing in 1975 designing of innovative new governments and enhancement of
• all marketing activities products that take care of waste global environmental awareness
concentrated on environment issues and pollution
problems
Green marketing is defined as actions directed to all consumers, and it includes a broad range
of marketing activities (e.g. planning, process, production, promotion and people) designed to
demonstrate the firm’s goal of minimizing the environmental impact of its products and
services (Groening et al., 2018).
Essence
Green marketing is the effort that an organization makes to include the
environmental aspect in all its product and service development
processes and depicts it in its marketing strategies through pricing
promotion and distribution (Papadas et al., 2019). It involves the process
in its entirety from start to finish. The objective is to oblige the consumer
to choose their product and service based on these attributes that help
the environment (Yeng and Yazdanifard, 2015). Green marketing requires
innovative solutions to contemporary issues that also support business
decisions and generate revenues. Hence, it can be said that green
marketing is the process of developing safer products for the
environment as well as the consumers.
Meaning and Importance
Green marketing is the marketing of products that are presumed to be
environmentally safe. It incorporates a broad range of activities, including
product modification, changes to the production process, sustainable
packaging, as well as modifying advertising. Green marketing is not only
limited to advertising, but it consists of various things such as the
production of eco-friendly products, using sustainable business
practices, using eco-friendly packaging, and creating a marketing
campaign that talks about the environment-friendly features of the
products. Green marketing helps to improve credibility, enter a new
audience segment, and stand out among competitors as more and more
people become environmentally conscious.
Elements of Successful Green
Marketing
Green Product Green Price
Introducing new products specifically for those Pricing the item properly with some level of
concerned with environment premium based on product newly found attributes
Green Products or environmentally friendly According to Queensland Government that the green price
products are products that prioritize long-term or environmentally friendly price is the amount of money
safety for users and the environment.The spent by consumers to get environmentally friendly
company always tries to innovate the products. Haryadi (2009: 33) states that most customers
development of products that do not harm the are willing to pay a premium if there is an additional
environment in order to anticipate adverse perception of product value. Aldoko et al. (2016) explains
impacts on the environment. People are also the general reason consumers willing to pay a premium
getting smarter in choosing items that are safer to price for environmentally friendly products is because they
use. believe in the quality of a product and they care about
environmental problems.
Elements of Successful Green
Marketing
Green Place Green Promotion
Finding proper distribution channel that Promoting the environmental attributes of the products
supplement the product and its attribute
Green place involves the choice of a company's Companies need to develop an integrated communication
distribution channel that minimize environmental approach that engages in certain aspects of company and
damage and makes a product always available so product specifics on environmental and social
that it can have an impact on customers. Some responsibility issues. The strategies and slogans used by
customers want to buy a product because of its eco- the company must be correct based on research and
friendliness. Sellers who want to achieve success in information. Information must be communicated coherently
selling environmentally-friendly products should and consistently the customers and other stakeholders.
position their products widely in the market so that
they can be more recognized .
Green marketing incorporates a broad range of activities including :
• Product Modification and 2. Changes to the Production

Packaging Changes Process
Minimizing the use of water, energy, The production process requirements

and dangerous material as the will include the application of
product's raw material. environmentally friendly technologies
A strong green marketing tactic is to and management and standard
invest in environmentally responsible operating procedures.
packaging, like recycled or no-plastic
packaging.
Green marketing incorporates a broad range of activities including :
3. Ecolabelling 4. Demarketing
Ecolabelling is the labeling of a A strategy whereby a brand

product that is manufactured to heed encourages consumers to buy less at
the principles of environmental the category level through purchasing
sustainability. It can help customers to the company’s brand for the sake of
choose an environmentally friendly the environment.
product. It encourage consumers to buy less for
the benefit of the environment.
Theory Application By Corporate
Houses in India
LG India TATA Group
LG rarely use halogens or
mercury and lead in the HCL • Produces products
manufacturing process. The which are eco friendly
products do harm the and adopts green ways
HCL has recently launched
environment and also uses of marketing its image.
HCL ME Notebooks which
40% less electricity. • Tata Steel said it is
are eco friendly in nature.
currently working on
Haier These notebooks do not use
more than 17 CDM i.e.
any polyvinyl chloride or any
Clean Development
other harmful chemicals in
Haier in its new green mechanism projects to
manufacturing.
initiative has been focusing check harmful emission
on eco branding .They have with Ernst & Young.
launched Eco life series.
Example of Models
Amoako, G.K., Dzogbenuku, R.K., Doe, J. and Adjaison, G.K. (2022), "Green marketing and the SDGs: emerging market perspective", Marketing
Intelligence & Planning, Vol. 40 No. 3, pp. 310-327. https://doi-org.proxy.undip.ac.id/10.1108/MIP-11-2018-0543
Example of Models
Patwary, A.K., Mohamed, M., Rabiul, M.K., Mehmood, W., Ashraf, M.U. and Adamu, A.A. (2022), "Green purchasing behaviour of international
tourists in Malaysia using green marketing tools: theory of planned behaviour perspective", Nankai Business Review International, Vol. 13 No. 2,
pp. 246-265. https://doi-org.proxy.undip.ac.id/10.1108/NBRI-06-2021-0044
Example of Models
Wu, L., & Liu, Z. (2022). The Influence of Green Marketing on Brand Trust: The Mediation Role of Brand Image and the Moderation Effect of
Greenwash. Discrete Dynamics in Nature and Society.
Example of Models
Ali, M. (2021), "A social practice theory perspective on green marketing initiatives and green purchase behavior", Cross Cultural & Strategic
Management, Vol. 28 No. 4, pp. 815-838. https://doi-org.proxy.undip.ac.id/10.1108/CCSM-12-2020-0241
Example of Models
Martins, A. (2022), "Green marketing and perceived SME profitability: the meditating effect of green purchase behaviour", Management of
Environmental Quality, Vol. 33 No. 2, pp. 281-299.
Marketing
Management II
Hospitality
Marketing
WHAT IS HOSPITALITY
MARKETING?
Hospitality marketing is the act of marketing

hospitality business to the public. The goal is to raise
awareness of the business, products and/or services,
usually by highlighting unique selling points (USPs).
How this is done can vary from company to
company, and sector to sector.
ESSENCE OF IMPLEMENTATION
Hospitality marketing has a massive economic impact.
Hospitality marketing isn’t just vital for raising awareness about

our business. It’s also essential for helping to build our
branding. By developing a brand strategy, we will have
principles and guidelines we can easily incorporate into
our marketing. Effective brand marketing will help us raise
awareness for our products and services while
establishing our brand’s identity.
IMPORTANCE OF HOSPITALITY MARKETING
Since the hospitality industry mainly focuses on creating and maintaining

positive customer experiences and relationships, marketing becomes an
important part of ensuring the industry’s success. If you want to attract
more customers to your hotel or travel business, you need to efficiently
advertise on different digital channels and be where your niche audience
is.
Hospitality marketing isn’t just vital for raising awareness about
your business. It’s also essential for helping to build your branding.
By developing a brand strategy, you’ll have principles and
guidelines you can easily incorporate into your marketing. Effective
brand marketing will help you raise awareness for your products
and services while establishing your brand’s identity.
ELEMENTS OF HOSPITALITY MARKETING
Personalization Ratings and Reviews Overall Guest Experience
Managing ratings and reviews is

There are many benefits that a
the most effective way to The guest's overall experience
company can get from
improve a brand's digital and value proposition matter in
personalization.
marketing. the hotel industry.
Example: Deploying guest-
Example: Highlighting the brand
focused personalization
Example: Based on studies at value is one of the core elements
technology can only help enhance
Cornell University Center, there in hospitality marketing.
your guests’ stays, which should
are revenue gains of around 5% According to CEO Darren Huston
drive greater loyalty and
to 11% for each increase in star of Booking.com, it is essential to
increased revenue from repeat
rating across popular review capture the guest experience.
stays.
sites like TripAdvisor and Yelp.
MARKETING MIX ELEMENTS IN
HOSPITALITY INDUSTRY
1. Relationship
Product (HotelMarketing
Service) Distribution & Promotion
Price (Rate)
between the brand and the customer.
The services package that the
consumer of the service Rates used by these tourist Changes in the technological
expects. For hotels, they are accommodation structures environment have also shaped the
are essential clue on the level distribution policies (high
the number of beds in the
popularity of franchise in the
booked room, comfort, and of hotel services in the hotel
distribution of hotel services)
related hotel services. unit.
Elements of Extended Marketing Mix

Human Resources Consumers Servicescape Ancillary Processes and
Services
theory application in RESEARCH AND practices
1. Google Paid Advertising
•• Pay-Per-Click ads or PPC ads are sponsored links or ads on search engine pages. Brands that use PPC ads as
a marketing strategy pay to pop up under a particular search query. People worldwide use search engines like
Google to make inquiries about services or things important to them. Brands pay these search engines to show
users their ads, which leads to brand awareness and growth. The great thing about PPC ads are that they are
only charged when an interested customer clicks the advertised brand.
2. Organic Social Media Strategy

•• Today’s most popular social media platforms are Facebook, Instagram, Twitter, YouTube, and TikTok. The
content you put out on these platforms plays a significant role in spiking your customer’s interest in your
hospitality brand.
3. Spotify & Pandora Audio Ads
•• In 2022, music streaming poses an excellent hospitality marketing strategy. Information from
Mobile Marketer reveals that consumers spend only two-thirds of their digital time on mobile devices,
and digital radio (Pandora and Spotify audio counts for 15% of this number). Spotify and Pandora are
two popular music streaming platforms millennials love to use. Ads on Spotify and Pandora run during
ad breaks or in-between playlists, gaining impressions from users who don’t pay streaming fees.
4. Reputation Management
•• The advent of social media platforms, Google reviews, mobile apps, websites, and online forums has made
sharing experiences more effortless than ever. For this reason, hospitality reputation management is vital to
the survival and marketing efforts of any brand. How your brand responds to criticisms, customer complaints,
social media comments, or Google reviews plays a vital role in how much clients – both old and new –
patronize your brand.
5. Voice Search SEO
•• Voice Search SEO is a marketing technology that uses search engine functions with voice recognition
capabilities. With voice search SEO, a user gives a spoken command, and the voice recognition technology
interprets and understands the user’s commands. More and more consumers have an Amazon Echo or Google
Home in their home. These devices use automatic speech recognition (ASR) to input signals for search engine
optimization.
6. Virtual Tours
•• Virtual tours are an extension of video content marketing strategy for hospitality brands. With virtual tours,
guests have a real-time experience of the services and facilities you have to offer. Also, it is very convenient as
they do not have to visit in person. For instance, Lake Austin Spa and Resort offers a comprehensive, 360°
virtual tour, utilizing Virtually Anywhere Interactive. This company offers hotels and hospitality brands virtual
tours that integrates onto any website.
EXAMPLE OF MODELS
Cham, T.H., Cheng, B.L., Low, M.P. and Cheok, J.B.C. (2021), "Brand image as the competitive edge for hospitals in
medical tourism", European Business Review, Vol. 33 No. 1. https://doi-org.proxy.undip.ac.id/10.1108/EBR-10-2019-
0269
EXAMPLE OF MODELS
Tamer H. Elsharnouby, Said Elbanna, Change or perish: Examining the role of human capital and dynamic marketing
capabilities in the hospitality sector, Tourism Management, Volume 82, 2021, 104184, ISSN 0261-5177,
https://doi.org/10.1016/j.tourman.2020.104184
EXAMPLE OF MODELS
Frye, W.D., Kang, S., Huh, C., & Lee, M.J. (2020). What factors influence Generation Y’s employee retention in the
hospitality industry?: An internal marketing approach. International Journal of Hospitality Management, 85, 102352.
EXAMPLE OF MODELS
Clark, M., Kang, B. and Calhoun, J.R. (2021), "Green meets social media: young travelers’ perceptions of hotel
environmental sustainability", Journal of Hospitality and Tourism Insights, Vol. ahead-of-print No. ahead-of-print.
EXAMPLE OF MODELS
Chu, S.-C., Deng, T. and Cheng, H. (2020), "The role of social media advertising in hospitality, tourism and travel: a literature
review and research agenda", International Journal of Contemporary Hospitality Management, Vol. 32 No. 11, pp. 3419-3438.
https://doi-org.proxy.undip.ac.id/10.1108/IJCHM-05-2020-0480
TOURISM &
DESTINATION
MARKETING
What is Tourism & Destination Marketing?
Destination marketing is a process through which “a country’s tourism

organizations and tourist businesses identify the target potential
and current tourists to inform them and sway their wishes,
likes and dislikes, motivations and needs at local, national,
regional, and global levels.”
A tourism destination is a spatial unit encompassing a complex system

of initiatives, plans, and actions; and a diversity of actors, roles, and
environmental factors interact to determine its performance (Lazzeretti
and Petrillo, 2006).
Essence
Tourists generally perceive and evaluate their visit as an experience.
Nowadays, tourists desire and expect services that allow multiple options
and experiences involving many interrelated actors in a destination.
The overall tourism offering might be defined in terms of five main

components, such as :
• destination attractions
• destination facilities and services
• accessibility of the destination (including transport)
• images, brands, and perceptions
• price to the visitor.
Essence
Due to rising customer expectations and growing competition between

destinations, destination marketing has shown increased demand.
Its functions and activities include :

• Managing the tourism system
• Improving the competitiveness of the regional tourism industry
• Improving destination attractiveness
• Enhancing destination performance
• Increasing marketing effectiveness
Tourism and destination marketing is a marketing approach in the travel
industry that involves promoting a specific location and its benefits
instead of the product or service that a company offers. This could be a
country, a town or city, or even a specific holiday resort or attraction.
The purpose is to promote the business, make it stand out from rivals,
attract customers, generate brand awareness , and increase customer
awareness of a certain destination so that they start to think about
visiting, or to help them remember the location when they are ready to
book a holiday.
Elements of Tourism and
Destination Marketing
Attraction Accessibility
Tourism activity starts with the attractions. At a Accessibility or otherwise said as transportation is an
place or destination there has to be some essential component of tourism system as it creates
attraction only then people or tourists will visit that linkage between market source and destination. If there
area. Attractions are believed to be the greatest are attractions then those has to be visited by the tourists.
influencers of all the components. They can make Transportation is not a target usually but a mandate for the
or break a destination. conduct of tour.
Accommodation Amenities
Accommodation is one of the most crucial aspects Every tourist travelling to a new destination desires for
of a destination. Any traveller choosing to visit any world class facilities and services. In order to fulfil their
destination would firstly look for accommodation demand huge efforts are made by the industry. High
suited to his/her needs. It should provide him/her quality facilities are important aid to every tourist
food and beverage services, resting facilities, etc. destination or centre. Amenities are the services required
up to his satisfaction level. Accommodation units by the tourist to facilitate his travel. Amenities generally
itself act as tourist attractions for a large number include infrastructure facilities like roads, sewage system,
of people. power grids, phone lines etc. Although most of them are
primarily developed for the residents but these amenities
are utilised by the tourists also.
Activities
Attractions are often assisted by various activities
that enhance tourist experience. For example: a
lake in Nainital may have boating and cruise
facilities, a monument in Agra may offer a guided
tour by a tour guide or a light and sound show in
Khajaraho, hiking in a mountain, skiing in the
snow slopes in Himalayas, etc.
Theory Application In Research
and Practices
1. Define the Unique Selling Points
Take time to clearly define what makes your destination unique. There are a huge range of ways a destination can stand out,
such as unique activities to offer visitors, or unique natural features, like mountains, beaches or volcanoes. Example can be a
location with fascinating history, or unique landmarks, like the Eiffel Tower, the Empire State Building, or the Great Wall of
China.
2. Define Target Audience & Market
Think about who is likely to want to visit the destination and for what reason. Often, you will need to break this down into
several different audiences, who each may have different reasons for wanting to travel to your location. Example might be an
outdoor sporting activities for those who loves sports and beach for those who would like to relax on their holiday.
3. Utilise Data for Analytics

You can find out information about existing visitors. Once you have gathered sufficient data, you can analyse it to identify the
best people to reach out to, the best ways to reach them and the best messages to push. As an example, the organisation’s
website can allow you to use tools like Google Analytics to find out about your visitors, who they are, where they came from
and what their motivation was.
Theory Application In Research
and Practices
4. Video and Virtual Reality Marketing
Video content can be easily shared across platforms like Facebook, Twitter, Instagram and YouTube. These videos can
promote local places of interest, or can feature local people speaking about your destination. Example could be a virtual tour
of a local hotel, a virtual travel experience of a nearby entertainment venue, or 360 degree tours of attractions or landmarks.
5. Social Media Strategies

Social media platforms like Facebook, Twitter and Instagram serve as an ideal means to reach people and promote your
destination. Most social media platforms offer paid marketing opportunities, such as advertisements or sponsored posts.
These can boost the visibility of your social media marketing efforts and can be aimed at very specific demographics, meaning
you can target people based on age, gender, location, browsing habits, etc.
6. Search Engine Optimisation
When people use search engines like Google to look for things related to your destination, or features that your destination
can offer them, you want to make sure your website is near the top of those search engine results pages. This involves
researching keywords, creating content that targets those keywords, and using a range of other techniques to improve your
placement. Best example to do this is by creating search engine optimisation strategy.
Example of Models
Selira Kotoua, Mustafa Ilkan, Tourism destination marketing and information technology in Ghana, Journal of Destination Marketing & Management,
Volume 6, Issue 2, 2017, Pages 127-135, ISSN 2212-571X,
https://doi.org/10.1016/j.jdmm.2017.04.007.(https://www.sciencedirect.com/science/article/pii/S2212571X16303183)
Example of Models
Boon Liat, C., Nikhashemi, S.R. and Dent, M.M. (2020), "The chain effects of service innovation components on the building blocks of tourism destination
loyalty: the moderating role of religiosity", Journal of Islamic Marketing, Vol. 12 No. 9, pp. 1887-1929. https://doi-org.proxy.undip.ac.id/10.1108/JIMA-02-
2020-0061
Example of Models
Lujun Su, Qi Lian, Yinghua Huang, How do tourists' attribution of destination social responsibility motives impact trust and intention to visit? The
moderating role of destination reputation, Tourism Management, Volume 77, 2020, 103970, ISSN 0261-5177,
https://doi.org/10.1016/j.tourman.2019.103970. (https://www.sciencedirect.com/science/article/pii/S0261517719301682)
Example of Models
Roy, S., Dryl, W. and de Araujo Gil, L., 2021. Celebrity endorsements in destination marketing: A three country investigation. Tourism Management, 83,
p.104213. https://doi.org/10.1016/j.tourman.2020.104213
Example of Models
Lundberg, C., Ziakas, V., & Morgan, N.J. (2018). Conceptualising on-screen tourism destination development. Tourist Studies, 18, 104 - 83.
PUBLIC
SECTOR
MARKETING
Public Sector Marketing
Definition and Essence
Public sector marketing is about managing the relationships between
government organizations, the public sector, and other parties that are
seeking services from them. These parties can include individuals, groups
of individuals, organizations, or communities. Public sector marketing
tries to articulate and propose measures in regards to the exchange and
acquaintances happening between a government organization and
people, group of individual, organization or communities regarding the
solicitation for and execution of public situated errands and services .
Background
Marketing skills developed in the private sector can be employed in the public sector
to promote and deliver non-profit motivated service.
Public organizations employ four types of marketing, which differ from each other in
the objectives underlying them :
• Marketization means that certain aspects of public-sector activities become akin to
commercial marketing in the private sector
• All organizations use marketing for promoting their self-interest
• Marketing in the case of local authorities used to promote the area under the
responsibility of the public organization, ex. city marketing
• Marketing may be instrumental in promoting critical political objectives, ex. the
realization of social effects
Characteristic
Public Sector Marketing examines the role of marketing in public organizations, from
planning through execution and evaluation.
It looks at marketing from the perspective of creating value for different organizational
stakeholders.
Function
The possession of a marketing • Providing residents with a full range
strategy enables public organizations of leisure, education, recreation,
to go about their business in a economic and social services
customer-oriented fashion since • Making residents aware that their
setting priorities helps give the public local authority can do it efficiently and
what they want. quickly.
Elements of Public Sector
Marketing
The Four Ps
Agencies operating in the public domain can use a custom blend of the four
Ps—product (or service), place, price, and promotion—as well as other
marketing techniques to transform their communications with stakeholders,
improve their performance, and demonstrate a positive return on the
resources they are endowed with.
The understanding that all four elements of the marketing mix are aspects of
a complete marketing strategy can be developed though marketing training
The four major forms according
to to Judith Madill
Marketing of Social Marketing
Products and Policy Marketing Demarketing
Services
social marketing is the This type of marketing “Don’t Use Our Programs”
Many public sector design, implementation, and entails campaigns to marketing calls for
organizations offer products control of programs convince specific sectors of campaigns that are
and services free of charge calculated to influence the society to accept policies or launched by public sector
or for a fee (either on a cost- acceptability of social ideas new legislation organizations to advise or
recovery or for-profit basis to and involving considerations persuade targeted groups
support core public good of product, planning, pricing, not to use programs that
programs). communication, distribution, have been available to them
and marketing research in the pas
Budweiser - “Service Never Stops”
A marketing of Military Services
An example of a military marketing campaign is Budweiser’s 2018 “Service

Never Stops” campaign. This campaign features interviews with military
spouses and the family members of military personnel, explaining the
sacrifices that are a part of military life. With this campaign, Budweiser raised
funds with their sales from the Freedom Reserve Red Lager and donated
them to Folds of Honor, an organization dedicated to supporting military
families. The ad continues to show interviews of the service members that
were a part of creating the Freedom Reserve Red Lager. The ad ends with
the words, “This Bud’s for our heroes.”
Example of Models
Rodrigues, A.P. and Carlos M., J. (2010), "Market orientation, job satisfaction, commitment and organisational performance: The specific case of
local public sector", Transforming Government: People, Process and Policy, Vol. 4 No. 2, pp. 172-192. https://doi-
org.proxy.undip.ac.id/10.1108/17506161011047398
Example of Models
Zaheer, A.N., Rashid, A. Analyzing the role of public sector marketing in improving social effectiveness: a case study from Anhui province, China.
Int Rev Public Nonprofit Mark 14, 57–71 (2017). https://doi.org/10.1007/s12208-016-0162-y
Example of Models
L.G. Pee, A. Kankanhalli,Interactions among factors influencing knowledge management in public-sector organizations: A resource-based view,
Government Information Quarterly,Volume 33, Issue 1,2016,Pages 188-199,ISSN 0740-
624X,https://doi.org/10.1016/j.giq.2015.06.002.(https://www.sciencedirect.com/science/article/pii/S0740624X1500074X)
Example of Models
Dwairi, M.A. (2012). Antecedents And Consequences

Of Market Orientation In Public Sector In The
Kingdom Of Bahrain.
Closing
This Marketing Theories book is written based on the research and study from
journals available from Universitas Diponegoro. It is designed to help fellow
bachelor students and all students to learn about several theories in
marketing management.
The authors have made the book easier for readers to understand the content
comprehensively. We would like to say thank you to Prof. Augusty Tae
Ferdinand, DBA for guiding us in writing the content of Marketing Theories.
We hope that this book will be useful for fellow students and all the readers.
Attachment
Resource Advantage Theory of Competition Service Dominant Logic Theory

Attachment
Consumer Culture Theory Goal Setting Theory

Attachment
Agency Theory Self Congruence Theory

Attachment
Entrepreneurial Marketing Theory Experiential Marketing Theory

Attachment
Relationship Marketing Theory Green Marketing Theory

Attachment
Hospitality Marketing Theory Tourism & Destination Marketing Theory

Attachment
Public Sector Marketing Theory

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MARKETING

Wina Indira Dewi

Research Advantage Theory of Competition is a general

1.Demand is 2. Consumer 3. Human motivation is

4. The Firm's objective 5. The Firm's

6. The Firm's resources are

8. The role of management is 9. Competitive dynamics

R-A theory views the role of management in the company by means of

For R-A theory, competition is an evolutionary process in which firms

APPLICATION fans wind, etc. In running its business, PT Maspion

Massive Superior Financial

Service-Dominant Logic is a perspective invented by

1.Service is the 2. Indirect exchange 3. Goods are a

7. The firm cannot deliver 8. A service-centered view

9. All social and economic 10. Value is always uniquely

S-D logic’s metatheoretical framework offers a transcendent perspective that is

Highlighting S-D logic’s transcending view of service

S-D logic has been taken up across the sub-

it is argued that S-D logic and focus on value-in-

Service-dominant logic provides a view of

The application of S-D logic brings a unifying

- CCT concerns the coproductive ways - The study of marketplace cultures

- The institutional and social - CCT examines consumer ideology which is

Anubha (2021), "Mediating role

Goals Action/ Task

Clarity Challenge Commitment

Feedback Task Complexity

Appropriate feedback of If a goal is really tough,

STRATEGY SCENARIO : PUBLIC COMPANY

Scobbie, L., McLean, D., Dixon, D.

Agency theory is a principle introduced by Stephen Ross

• Agent and 3. Agency Cost

By accepting to undertake a task on their behalf, an agent becomes accountable to the

Agency theory is founded on seven fundamental assumptions :

• The Technology of 2. The set of Feasible 3. The Payoffs 4. The Timing

Agency theory used to understand the relationships

Agents must have incentives encouraging them to

2. Supply Chain Finance

Managing complex customer-supplier

Input Process Output

Shirking Outcome- Project/

Mardini, G.H. and Lahyani,

M. J. Liberatore and W. Luo,

Purchase Intention and

An individual's self-concept is heavily driven by the state of self-congruence; the

• The self-congruence theory defines psychological processes and outcomes. Customers

Actual Self Ideal Self Social Self Ideal Social Self

Self-Consistency Self- Social- Social-

Private-Self Public-Self Consistency- Enhancement-

STRATEGY SCENARIO : Robotic Coffee Shop

Liu, C., Zhang, Y. and Zhang, J. (2020),

Vikas Kumar, Arun K. Kaushik, Engaging

Entrepreneurial Marketing is a marketing process

Utilize opportunity Risk Management Value Creation

Implications of an Entrepreneurial Product Strategy Examples of Entrepreneurial Products

• Focusing on the customer experience, not • Designing products that fulfill an

Implications of an Entrepreneurial Product Strategy Examples of Entrepreneurial Products

• Bundling or unbundling products to

Implications of an Entrepreneurial Product Strategy Examples of Entrepreneurial Products

• Effectively utilizing relationships to promote

Implications of an Entrepreneurial Product Strategy Examples of Entrepreneurial Products

• Utilizing networks to distribute products

Input Process Output