Marketing

FH-Prof. Dr. Martin K.J. Waiguny

Course Outline
§ Learning Objectives
The aim of this introductory course to marketing is to
provide students with the necessary skills to analyse
markets as well as drafting marketing plans. After
completion of this course students will be able to:
- Define the concept of marketing management
- Distinguish strategic and operative marketing
actions
- Apply relevant marketing tools to analyse
markets
- Synthesise different decision making areas in
the marketing plan
- Relate marketing management to other
marketing relevant areas like market
research, consumer behaviour or responsible
consumption
§ Contents
- The Marketing Concept
- Analysis of the Market and Environments
- Basics of Consumer Behaviour
- Segmenting - Targeting - Positioning
- Product Decisions: Branding, Packaging,
Product Managemement
- Distribution Decisions: Channel
Management, Retail and Logistics
- Promotion Decisions: Paid, Earned and
Owned Channels - Basics of
Communication, Sales Managemement
- Pricing Decisions: Pricing strategies
- Differences in the Marketing Programme:
B2B, Service and Digital
2
Literature

Recommended:
Dibb S, Pride WM, Ferrell OC: Marketing
Concepts and Strategies, Cengage Learning,
2019. 8th edition. (or earlier/later editions)
Alternative Textbooks:
§ Kotler P, Armstrong G: Principles of Marketing, Pearson Education,
2020.
§ Solomon M, Stuart EW, Marshall G: Marketing: Real People, Real
Choices [Global Edition], Pearson, 2022.
§ German Textbooks can be also used

3
Examination

§ Final written exam

§ 90 minutes
§ Mix of application, synthesis, mini cases, calculations
§ Answers will be evaluated using the following criteria for open questions:
• coherence of answers
• feasibility of the answer
• consistency
• line of argument
• quality of argument
• for calculations: correct answer, line of calculation

4
1. What is Marketing
Marketing in Economic Science

Financial
Markets

Sourcing Business Selling

State
Wöhe 2016 6
Function of a Business and Value Chains

Input Transformation Output

(Procuremet) (Value Creation) (Sales)

Human Ressources
Technology Development
Facilities and Infrastructure .....
Procurement
Inbound Operations Marketing and Outbound Aftersales
Logistics (Manufacturing) Branding Logistics 7
Porter 1980
Markt and Product Types

Consumers (B2C) vs. Businesses (B2B)

For both exist
Consumables (vanish with consumption/transformation)
Durables (can be used over a longer life span)

8
The Transaction Approach

Dibb et al. 2019

9
From

Seller Buyer

Market
10
Economic and Competitive Forces

11
Dibb et al. 2019
Marketing Defined
§ Marketing Orientation
- A marketing-oriented organization devotes resources to understanding the needs and buying
behaviour of customers, competitors’ activities and strategies, and of market trends and external
forces – now and as they may shape up in the future.
- Inter-functional coordination ensures that the organization’s activities and capabilities are aligned
to this marketing intelligence

§ Marketing Definitions
- Marketing consists of individual and organizational activities that facilitate and expedite satisfying
exchange relationships in a dynamic environment through the creation, distribution, promotion
and pricing of goods, services and ideas.
- Marketing is the management process responsible for identifying, anticipating and satisfying
customer requirements profitably. (Chartered Institute of Marketing)
- The aim of marketing is to make selling superfluous. The aim is to know and to understand the
customer so well that the product or service fits him/her and sells itself! (Drucker)
12
Dibb et al. 2019
The Evolution of the Marketing Concept

Digital Era
Relationship Since mid
Marketing Era 2000s
Since 1990s 24/7 Acces to
Marketing Era products
Since 1960s Maintaining
loyalty new media
adressing
Sales Era consumer
1920s-1950s needs

Production
Value-based Marketing Concept
Era 1800
till WWI Era of C2C
13
Dibb et al. 2019
Marketing Essentials

14
Dibb et al. 2019
The Marketing Process

Dibb et al. 2019

2. Marketing Analyses and Marketing Strategy
The Marketing Environment

17
Dibb et al. 2019
Megatrends

Duration Ubiquity Global Complexity

defines all worldwide
min 50 years multidimensional
areas of Life phenomena

https://www.horx.com/en/futurism-today/understanding-the-future/

Zukunftsinstitut 2023 18
Single Trends - Example: Artificial Intelligence

https://www.gartner.com/en/articles/what-s-
new-in-artificial-intelligence-from-the-2022-
gartner-hype-cycle 20
Hollensen 2015
Analysing Environments

§Political
§Economic
§Social
§Technological
§Legal
§Enviornmental Doole et al. 2018
22
Analysing the Industry Attractiveness: Porters 5 Forces

Bargaining
Use of micro and Power of
Suppliers
macroeconomic
indicators
Bargaining
e.g. the higher the Substitutes Power of
Buyers
number of buyers the Industry
lower their power the Attractiveness
higher the attractiveness

Competition
New within the
Entrants
industry

23
 Exercise: Example for criteria
Force Criteria Specifics Resulting in Attractivness
increase/
decrease?

Competition within Growth of Sales Slight increase in the young markets, rest stagnating Rivalery:
industry

Differentiation of Strong differentiation between competition, luxury branding. Rivalery:

competitiors within
industry?

Subsitutes Technology change New battery technologies allow new forms of products. Likelihood of
substiutes:

Supplier/Buyer Concentration of Only a few suppliers can provide the necessary microchips. Bargaining
Suppliers Only a few buyers are creating 70% of the market volume. power:

Entrants Standards and Products need to adhere to strict standards and are Likelihood of
Regulations controlled by government. Entrants:

Economies of Scale High economies of scale, and high economies of scope Likelihood of
and Economies of entrants.
Scope (learning
effects) 24
Hollensen 2015
The Competitive Triangle
§ General economic conditions include:
- Prosperity, recession, depression, recovery
- Consumer demand and spending behaviour
Consumer § Buying power
- The strength of a person’s buying power
depends on the size of the resources that
enable the individual to purchase, as well
Perceived Value / Price Perceived Value / Price as on the state of the economy. The
resources that make up buying power are
goods, services and financial holdings.
§ Consumers’ willingness to spend
- People’s willingness to spend is, to some
degree, related to their ability to buy – that
is, people are sometimes more willing to
Company A Relative Cost
Company B buy if they have the buying power.
Value Chain Value Chain § Consumer spending patterns
- Information indicating the relative
proportions of annual family expenditures
or the actual amount of money spent on
certain kinds of goods and services. 26
Strategic Control

Future Potential

Liquidity Profits
Dibb et al. 2019
Gällweiler 1984

27
Business Definition – Strategic Business Units (SBU)

Problem

Target Groups / Markets

Technology Abell 1982

Value based approach

Company Transaction based Value Based

Definition Proposition
BMW We sell sporty cars of Pleasure of driving.
high quality.
Coca Cola We produce fizzy soft Open a bottle of
drinks. happiness.
Red Bull We produce a functional Red Bull gives you Wings.
fizzy drink to enhance
performance.

29
Technology (Product) Life Cycles

Hollensen 2015
The Porfolio Approach

Rel Marketshare

- +
? Stars
Marketgrowth

Poor Dogs Cash Cows

31
BCG Portfolio

Medical Lasers
Optical Glasses

HP Lenses

Gemstones

Magnifiers

Theme Park

32
Portfolios – You are the Chief Executives – What to do?

Rel Marketshare Rel Marketshare Rel Marketshare

- + - + - +

? Stars ? Stars ? Stars

+ + +
Marketgrowth

Marketgrowth

Marketgrowth
Poor Dogs Cash Cows Poor Dogs Cash Cows Poor Dogs Cash Cows

- - -

33
Portfolios

Rel Marketshare Rel Marketshare

- + - +

? Stars ? Stars

+ +
Marketgrowht

Marketgrowth
Poor Dogs Cash Cows Poor Dogs Cash Cows

- -

34
Strategic Objectives and Directions

Products

Present New
Markets

Product (Technology)
Present Market Penetration
Development

Market Development
New (new segments, Diversification
internationalisation)
Ansoff 1988 35
SWOT Analysis

Strenght Weakness

Build competitive Close weakness gaps –

Opportunity
advantage anticipate attacks

Use strength to overcome Avoid fight, deinvest,

Thread
thread collaborate

36
 37
Dibb et al. 2019
Competitive Strategies

Competitive Advantage Competitive Advantage

• Cost focus • Product differentiation
• Price competition • Brand
• Efficiency • Value creation

Total Market
Cost Leader Differentiator
(many segments) Stuck in
the
Niche Middle
Cost Leader Differentiator
(special markets)

38
Positioning

§ Brand positioning: The creation of a desirable, distinctive and plausible image

for a brand in the minds of targeted customers.

§ Target market strategy: The choice for which market segment(s) an

organization decides to develop marketing programmes

Dibb et al. 2019

Competitive advantage

§ Competitors: organizations viewed as marketing products similar to, or

substitutable for, a company’s products, when targeted at the same
customers.
§ Competitive advantage: The achievement of superior performance vis-à-vis
rivals, through differentiation to create distinctive product appeal or brand
identity; through providing customer value and achieving the lowest
delivered cost; or by focusing on narrowly scoped product categories or
market niches so as to be viewed as a leading specialist.
§ Generic routes to competitive advantage: Cost leadership, differentiation
and focus; not mutually exclusive

Dibb et al. 2019

Market Timing

§Pioneers
§Early Followers
§Late Followers
§Me-Too

41
 McKinsey – Attractiveness – Advantage Matrix

Market Attractiveness

- <> +
Relative Competitive Strength

Build
- Deinvestment
Evaluation
Capabilities

Increase Value
<> Evaluation Keep
Promise

Increase Value
+ Cash out
Promise
Winner

Hollensen 2015
International Marketing

Dibb et al. 2019

Foreign Market Entry Strategies

Doole et al. 2018

44
World Trading Groups

Doole et al. 2018 45

Deriving the Marketing Plan
Marketing strategy defined

46