Marketing strategies:

• Segmentation
• Targeting
• Differentiation
• Positioning

Creating value! ---> customers, company

Promoting the product to sell
Creating brand image
To be more popular
Analyzing consumers’ needs and wants.

Managing relationships with customers, develop and maintain long-term.

Attracting new customers is more expensive than maintaining current customers.

Value for the company is  profit

Product life cycle:

Introduction
Growth
Maturity
Decline

Chapter 1 Marketing: Creating Customer Value and Engagement

THE MAIN DEFINITION OF MARKETING

Marketing is a process by which companies create value for customers and build strong
customer relationships in order to capture value from customers in return.

Needs are states of felt deprivation.

Wants are the form human needs take as they are shaped by culture and individual
personality.
Demands are human wants that are backed by buying power.

Market offerings are some combination of products, services, information, or experiences

offered to a market to satisfy a need or want.
Market offerings include other entities, such as persons, places, organizations, information,
and ideas.

Marketing myopia: paying more attention to the specific products than to the benefits and
experiences produced
Louis Witton example: girls
 – Satisfied customers buy again (Value=Expectation)
– Dissatisfied customers switch to competitors (Value<Expectation)
– Delighted customers (Value>Expectation)

Each party in the system adds value.

Marketing management is the art and science of choosing target markets and building
profitable relationships with them.
• What customers will we serve (target market)?
• How can we best serve these customers (value proposition)?

A brand’s value proposition is the set of benefits or values it promises to deliver to

customers to satisfy their needs.

1) Production concept:
should be available, affordable.
It holds that consumers will favor products that are available and highly affordable.
Therefore, management should focus on improving production and distribution
efficiency.
The oldest concept.
PRODUCTION & DISTRIBUTION
Coca Cola  distributable easily

2) Product concept:
customers focus on best benefits, features.
It holds that consumers will favor products that offer the most in quality, performance,
and innovative features.
For example: Apple, Phillips

3) Selling concept:
The firm should effort to sell products to customers. They should try, persuade you to
sell products.
Insurances etc.

4) Marketing concept:
 The firm should understand the needs and wants of customers and should shape their
strategy.
The job is not to find the right customers for your product but to find the right products
for your customers.

5) Societal Marketing concept:

The firm should consider the long-term effects of society.
You should satisfy company, consumers, and society at the same time.
Sustainability is important.
For example: Starbucks karton bardak

The company’s marketing strategy outlines which customers it will serve and how it will
create value for these customers.

Next, the marketer develops an integrated marketing program that will deliver the intended
value to target customers. The marketing program builds customer relationships by
transforming the marketing strategy into action. It consists of the firm’s marketing mix, the
set of marketing tools the firm uses to implement its marketing strategy.

Marketing mix: Exist of 4Ps.

 Product
 Price
 Promotion
 Place
 i. The firm must first create a need-satisfying market offering (product).
ii. It must then decide how much it will charge for the offering (price).
iii. How it will make the offering available to target consumers (place)
iv. Finally, it must engage target consumers, communicate about the offering, and
persuade consumers of the offer’s merits (promotion).

Integrated marketing program

Rolex does not care TV ads.
You cannot find luxury goods everywhere; the key is scarcity.

Attracting, engaging customers with developing, maintaining profitable long-term

relationship

Attracting new customers is more expensive than keeping the current customers. (making
Ads etc.)

Relationship Building Blocks with Customers

First Step: Satisfy
You need to value.
Perceived value
Comparing the cost with purchasing the product as a customer, you look at: time, money.

Customer lifetime value is the value of the entire stream of purchases that the customer
would make over a lifetime of patronage.

Share of customer is the portion of the customer’s purchasing that a company gets in its
product categories.

A customer buys from the firm that offers the highest customer-perceived value—the
customer’s evaluation of the difference between all the benefits and all the costs of a market
offering relative to those of competing offers.

Customer satisfaction depends on the product’s perceived performance relative to a buyer’s

expectations. If the product’s performance falls short of expectations, the customer is
dissatisfied. If performance matches expectations, the customer is satisfied. If performance
exceeds expectations, the customer is highly satisfied or delighted.

Customer equity is the total combined customer lifetime values of all the company’s
customers.
the more loyal the firm’s profitable customers, the higher its customer equity

brand equity // worth of a brand: marka değeri

it can be classified into 2 groups.
To look at the brand equity we can look up at the brand’s future.

Financial brand equity

Bir şirketi satarken onun değerine satmazsın eğer ki marka değeri yüksekte daha fazla bi
paraya satarsın arada bir fark olur.

The Changing Marketing Landscape

• Digital Age
Digital and social media marketing involves using digital marketing tools such as websites,
social media, mobile ads etc. that engage consumers anywhere, at any time, via their digital
devices.
• Changing Economic Environment
• Growth of Not-for-Profit Marketing
Vakıf vs
• Rapid Globalization
• Sustainable Marketing

Chapter 2 Company and Marketing Strategy

Short Term: is about current timeline, up to 1 year.

Long term: more than 1 year
The first three steps are at the corporate level and the fourth is at the Business unit,
product, and market level.
1. Defining the company mission
2. Setting company objectives and goals
3. Designing the business portfolio
4. Planning marketing and other functional strategies

Strategic planning is about long term.

It develops strategies in order to achieve its goals.
Protecting company against external threads is one of the aims.

Rather than focusing product oriented def. , it is more important to focus market oriented
def.

Strategic planning is the process of developing and maintaining a strategic fit between the
organization’s goals and capabilities, and its changing marketing opportunities.

First 3 steps are corporate level.

Steps of Strategic Planning

1) Mission statement:

It is reason for existence, statement of purpose. Mission statement should be customer

oriented. Having a market-oriented mission statement carries importance.
2) Setting Company Objectives and Goals:

Business objectives
a. Build profitable customer relationships.
b. Invest in research.
c. Improve profits.
Marketing objectives
d. Increase market share.
e. Create local partnerships.
f. Increase promotion.

3) Designing The Business Portfolio:

The business portfolio is the collection of businesses and products that make up the
company.
1st: analyzing current portfolio.
2nd: developing strategies to design new business portfolio.

SBUs are making up your business portfolio.

You need to make different strategies for different brands.
For example: Hilton -> Conrad, Double Tree, Hilton Garden Inn

Strategic business units can be a

o Company division
o Product line within a division
o Single product or brand

Analyzing The Current Business Portfolio

• Identify strategic business units (SBUs)
• Assess the attractiveness of its various SBUs.
• Decide how much support each SBU deserves.

What should you do?

Star: you must maintain your position.
Cash Cow: Cash cows are low-growth, high-share businesses or products that are established
and successful SBUs requiring less investment to maintain market share.
?: You must look at the competition, look at your own product whether offer different things
or not
Dog: It is about downsizing. They will be closing down.

Problems with Matrix Approaches

• Difficulty in defining SBUs and measuring market share and growth

• Time consuming
• Expensive
• Focus on current businesses, not future planning.

Market Prentation: Same product, same market. Making more sales to current customers
without changing its original product. It is a growth strategy. “Marketi domine etmek”
For example: Opening A101, BİM everywhere.

Product development: New product, same market. It involves offering modified or new
products to current markets.
For example: Apple, it is developing itself.

Market development: Same product, different market. Managers could consider new
geographic.
For example: Simit Sarayı, they opened new places in other countries.

Diversification (related, unrelated): New product, new market.

For example: Harley Davidson. They are a motorcycle producer. They started to sell bottle
water.

Developing Strategies for Growth and Downsizing

Downsizing is when a company must prune, harvest, or divest businesses that are
unprofitable or that no longer fit the strategy.
 The firm may have grown too fast or entered areas where it lacks experience.
 The market environment might change, making some products or markets less
profitable.
  Some products or business units simply age and die.

Marketing Strategy and the Marketing Mix

1. Customer
2. Marketing Strategy
3. 4 Ps

Customer Value-Driven Marketing Strategy

Market segmentation is the division of a market into distinct groups of buyers who have
different needs, characteristics, or behaviors and who might require separate products or
marketing mixes.

Market segment is a group of consumers who respond in a similar way to a given set of
marketing efforts.

Market targeting is the process of evaluating each market segment’s attractiveness and
selecting one or more segments to enter.

Market positioning is the arranging for a product to occupy a clear, distinctive, and desirable
place relative to competing products in the minds of target consumers.

Differentiation begins the positioning process.

 Chapter 3 Analyzing the Environment Marketing

The marketing environment includes the actors and forces outside marketing that affect
marketing management’s ability to build and maintain successful relationships with target
customers.

Microenvironment is close to the company/actors.

Ex: the company, suppliers, marketing intermediaries, customer markets, competitors, and
publics.

Macroenvironment is close to the forces.

Ex: demographic, economic, natural, technological, political, and cultural forces.

Actors in the Microenvironment:

The Company
The Suppliers:
• Provide the resources to produce goods and services.
• Treat as partners to provide customer value.

Marketing Intermediaries
Firms that help the company to promote, sell, and distribute its goods to final buyers.
• Resellers
• Physical distribution firms
• Marketing services agencies
• Financial intermediaries

Macroenvironment consists of the larger societal forces that affect the microenvironment—
demographic, economic, natural, technological, political, and cultural forces.

Figure 3.2 Major Forces in the Company’s Macroenvironment

a) Demographic:
• size, income level, density, location, age, gender, race, occupation, and other
statistics.
• Demographic trends include changing age and family structures, geographic
population shifts, educational characteristics, and population diversity.
• Generational marketing: Baby boomers and millennials are now moving over to
make room for younger Generation Alpha. Generational marketing is important in
segmenting people by lifestyle or life stage instead of age.
b) Economic:
 Inflation rate, GDP, income level, distribution of income

c) Natural:
The natural environment is the physical environment and the natural resources that are
needed as inputs by marketers or that are affected by marketing activities.
• Growing shortages of raw materials
• Increased pollution
• Increased government intervention
• Developing strategies that support environmental sustainability.

d) Technological:
This environment makes people more powerful.
For example: People can check the prices of products via phones etc.
• Most dramatic force in changing the marketplace.
• New products, opportunities
• Concern for the safety of new products

e) Political and Social:

Legislation regulating business is intended to protect.

f) Cultural:
The cultural environment consists of institutions and other forces that affect a society’s
basic values, perceptions, and behaviors.
Core beliefs and values are persistent and are passed on from parents to children and are
reinforced by schools, churches, businesses, and government.
Secondary beliefs and values are more open to change and include people’s views of
themselves, others, organizations, society, nature, and the universe.
“People’s views”

Responding to the Marketing Environment

• Uncontrollable
– React and adapt to forces in the environment.
• Proactive
– Take aggressive actions to affect forces in the environment.
• Reactive
– Watch and react to forces in the environment.

Chapter 4 Managing Marketing Information to Gain Customer Insights

Customer insights are fresh marketing information-based understandings of customers and

the marketplace that become the basis for creating customer value, engagement, and
relationships.
 • Fresh and deep insights into customer needs and wants
• Companies use customer insights to develop a competitive advantage
• Insights can be difficult to obtain; marketers must manage marketing information
from a wide range of sources

You can collect info from internal data base.

Big data comes from marketing research, internal transaction data, and real-time data
flowing from its social media monitoring, connected devices, and other digital sources.

Big data is the huge and complex data sets generated by today’s sophisticated information
generation, collection, storage, and analysis technologies.

A marketing information system (MIS) refers to the people and procedures dedicated to
assessing information needs, developing the needed information, and helping decision
makers to use the information to generate and validate actionable customer and market
insights.

MIS provides information to the company’s marketing and other managers and external
partners such as suppliers, resellers, and marketing service agencies.

Marketers obtain data from:

1. Internal data
2. Marketing intelligence
3. Marketing research

1. Internal databases are collections of consumer and market information obtained

from data sources within the company network.
2. Competitive marketing intelligence is the systematic collection and analysis of
publicly available information about consumers, competitors, and developments in
the marketing environment.
3. Marketing Research
Marketing research is the systematic design, collection, analysis, and reporting of data
relevant to a specific marketing situation facing an organization.

The marketing research process

I. Defining the Problem and Research Objectives

• Exploratory research
• Descriptive research
• Causal research

Students will have the following responses for the above questions:

exploratory research (focus groups, interviews)

descriptive research (who, when, how, why)
causal research (price/demand, environment/purchase rate)

II. Developing the Research Plan

• Outlines sources of existing data

• Spells out the specific research approaches, contact methods, sampling plans, and
instruments to gather data
A. Secondary data is information that already exists somewhere, having been collected for
another purpose.
i. Advantages
 a) Lower cost
b) Obtained quickly
c) Cannot collect otherwise
ii. Disadvantages: Data may not be
a) Relevant
b) Accurate
c) Current
d) Impartial

B. Primary data is information collected for the specific purpose at hand.

• Observational research: by observing relevant people, actions, and situations.

• Survey Research: by asking questions to people.
• Experiment: by selecting matched groups

Sampling Plan
Probability Sample:

Nonprobability Sample:

III. Implementing the Research Plan

– Collecting the information
– Processing the information
– Analyzing the information

IV. Interpreting and Reporting Findings

– Interpret findings
– Draw conclusions
– Report to management
 Chapter 5 Consumer Markets and Buyer Behavior

Consumer buyer behavior is the buying behavior of final consumers—individuals and

households that buy goods and services for personal consumption.

Consumer markets are made up of all the individuals and households that buy or acquire
goods and services for personal consumption.

Where
When
How & How Much
What
WHY

Stimulus-Response model:

People reacts differently, so their behaviors differ from each other.

Occupation: Job

I. Cultural

A. Culture
B. Subculture
C. Social Class

II. Social

A. Groups and Social Networks

B. Opinion leaders
C. Word-of-mouth influence
D. Influencer marketing
E. Online social networks
F. Family
G. Roles and Status

III. Personal

A. Age and Life Cycle Stage

B. Occupation
C. Economic Situation
D. Lifestyle
E. Personality and self-concept

IV. Psychological

A. Motivation
B. Perception
C. Learning
A drive is a strong internal stimulus that calls for action. A drive becomes a motive when it is
directed toward a particular stimulus object − a person’s drive for self-actualization might
motivate him or her to look into buying a camera.
Cues are minor stimuli that determine when, where, and how the person responds. For
example, the person might spot several camera brands in a shop window, hear of a special
sale price, or discuss cameras with a friend. These are all cues that might influence a
consumer’s response to his or her interest in buying the product.
Suppose the consumer buys a Nikon camera. If the experience is rewarding, the consumer
will probably use the camera more and more, and his or her response will be reinforced.
Then the next time he or she shops for a camera, or for binoculars or some similar product,
the probability is greater that he or she will buy a Nikon product.

D. Beliefs and Attitudes

Types of Buying Decision Behavior

• Complex buying behavior

• Dissonance-reducing buying behavior
• Habitual buying behavior
• Variety-seeking buying behavior

Buyer Decision Process

Need Recognition
Need recognition is the first stage of the buyer decision process, in which the consumer
recognizes a problem or need triggered by:
• Internal stimuli
If you are hungry or etc.
• External stimuli
You show a AD etc.

Information search is the stage of the buyer decision process in which the consumer is
motivated to search for more information.
Sources of information:
– Personal sources
– Commercial sources
– Public sources
– Experiential sources

Evaluation of Alternatives
Alternative evaluation is the stage of the buyer decision process in which the consumer
uses information to evaluate alternative brands in the choice set.

Purchase Decision
Purchase decision is the buyer’s decision about which brand to purchase.
The purchase intention may not be the purchase decision due to:
• Attitudes of others
• Unexpected situational factors

Postpurchase Behavior
Postpurchase behavior is the stage of the buyer decision process in which consumers take
further action after purchase, based on their satisfaction or dissatisfaction.

Postpurchase cognitive dissonance: Postpurchase customer satisfaction is a key to building

profitable customer relationships. Most marketers go beyond merely meeting the customer
expectations—they aim to delight customers.

Customer journey: the sum of the ongoing experiences consumers have with a brand that
affect their buying behavior, engagement, and brand advocacy over time.