- LECTURE NOTES MODULE 1.pdf

7/27/2019 - LECTURE NOTES MODULE 1.pdf

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Curtin University is a trademark of Curtin University of Technology

CRICOS Provider Code 00301J

Module 1 Introduct ion to Marketing Management

MM555

Source: http://www.forbes.com/sites/sap/2012/12/03/6-steps-

to-executing-a-content-strategy/


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Session Outline Welcome & Introduction

Housekeeping & Safety

Great Expectations

MM555 An Overview

Unit Learning Outcomes

Unit Structure & Text

The Marketing Management Framework

Our Approach

Assessment in Brief

Whats New in 2013

Resources and Suggestions for Success

So Lets Begin

Module 1: An introduction to Marketing Management

Next Steps


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Our Team

Margot Wood

Unit Co-ordinator F2F [email protected]

Alison Barker

Industry Teaching Associate

F2F [email protected]

Kristina Georgiou


F2F [email protected]

Jennifer Davies


[email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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Housekeeping Health & Safety

Curtin University requires that incidents of all

types be reported and managed to ensure that

lessons can be learned and appropriate controls

can be implemented. Talk to your Lecturer or the

SSO if you have an incident to report.

Emergency Evacuation of the CGSB: The sounding of the EWIS evacuation alarm will constitute

the evacuation signal in buildings. The alternate evacuation signal will be a fire alarm bell or averbal directive. The Evacuation Assembly Area is out the front of the building and to the left

(corner Irwin Street) in front of 48 Murray St (Ainsley House). When you get to the assembly

point, a further check will be carried out by the relevant staff member to ensure that everyone has

assembled. If you identify that someone is missing, immediately advise the nearest staff member

or the Building Warden, who will be located at the ground floor fire panel (or directly outside, in

front of the CGSB). At the assembly point students will be provided with further direction.

Other Bits

Please adhere to start and finish times and return promptly from breaks. Punctuality is regarded

as a form of respect for yourself and others. Theres a nice piece here on this.

Washroom facilities are available in the east end of the CGSB building on Level 2.

Student Representatives will be agreed in Week 2. This role is a focal point for class

communication and is eligible for 2 hours of professional portfolio points.

Refer to BB for further details.
http://www.prolificliving.com/blog/2010/08/26/the-importance-of-being-punctual/http://www.prolificliving.com/blog/2010/08/26/the-importance-of-being-punctual/


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Student Class Representative

Purpose: To serve as a point of contact

between the UC and/or lecturer and the class

Role: The role culminates with attendance at the Student

Feedback Session at the end of the trimester, so please

only nominate if you can attend this important wrap up.

Wednesday 24th April, 5.30pm-7.00pm, CGSB Boardroom

Responsibilities:

Act as a liaison between the class and the UC and/or Lecture e.g. in

MM555 we have two informal feedback sessions (Stop, Start, Continue)

during the trimester and the Class rep has a key role here.

From time to time you may be asked to represent an individual or a

group of students to confidentially raise an issue or a concern with the

Lecturer and / or UC.

To encourage feedback from the class via eVALUate

Receive Professional Portfolio Points (2 hours)


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GREAT EXPECTATIONS


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CGSB Student Snapshot67.5% Male/ 32.5% Female

Average age: 34yrs

Average years of managerial experience: 11

Australian passport holders: 70%

Nationality breakdown of the rest of the cohort:39% Europe

32% Asia/Pacific

15% Africa/Middle East

14% North/South America

90% Part-time

57% plan to study at least one online unitMost common sectors:

Mining and engineering

Manufacturing

Public sector

Consulting

Employer financial assistance:

48% full assistance17% some assistance

35% no assistance

Average salary on commencement: AUD$ 101,000.

Students have high expectations and value adult

learning principles

Predominantly work full time and

study part time


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First Impressions.

MM555

Have a quick look

through yourmaterials. Reviewthe Unit Outline.

What do younotice ? Whatare the first

thoughts that

come to mind?

What were youexpecting to find?Where did that

expectation come from?

How do theresources differ

from other classes?How are they thesame? What might

this suggest?

What ideas are youbeginning to develop

about this unit?About theLecturer?

What interests youabout the outline?What concerns

you?

What are you nowexpecting in theweeks to come?

What do you thinkthe MM555 team is

expecting of you?!

Make some

notes

...


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Expectations

Perceptions

GAP =

Beware the Gap!

More on this later

in the session and

In Module 7:Services Marketing Does customer satisfaction matter?

Think of the last time you felt highly

satisfied or dissatisfied. What

caused this? How did you respond

when you felt this way?

Degree of

Satisfaction


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MM555 AN OVERVIEW

Unit Structure, MM Framework, Assessment


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Unit Learning Outcomes

1. Understand and apply key marketing concepts, theories

and techniques for analysing a variety of marketing

situations.

2. Critically evaluate and reflect upon specific marketingdecisions and marketing strategies.

3. Review international trends with regard to the theory and

practice of marketing management principles

4. Interpret and apply relevant theoretical and conceptual

frameworks and develop a solution with regard to an

applied project


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MM555: Unit StructureModule Topics

Module 1 An introduction to Marketing Management

Module 2 Environmental Analysis

Module 3 Objectives, Segmentation, Targeting & Positioning

Module 4 Consumer Behaviour

Module 5 Business to Business Marketing

Module 6 Products, Brands & New Products

Module 7 Services Marketing

Module 8 Marketing Channels (Place)

Module 9 Pricing

Module 10 Integrated Marketing Communication (1) (Promotion)

Module 11 Integrated Marketing Communication (2) (Promot ion)

Module 12 Implementation, Monitoring & Performance

Module 13 Unit Evaluation - Please complete eVALUate

If people knewhow hard I

worked to getmy mastery, it

wouldn't seem sowonderful atall. Michelangelo


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Your Text & the Publisher's

Website

Go to http://login.cengagebrain.com

Register as a new user or log in as

existing user. Follow the prompts.

Here you will find an

additional resources to

draw on throughout the

trimester.

M k ti M t F k
http://login.cengagebrain.com/http://login.cengagebrain.com/


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Marketing Management Framework

The MM555 Marketing Management Framework draws

on a number of sources including Iacobucci (2013),

Armstrong et al (2012) and Gibbs (2009) and includesthe key factors which need to be taken into account

when developing a comprehensive marketing strategy.

Create Value

Product / Service

People

Processes

Physical Evidence

Capture Value

Price

CommunicateValue

Integrated MarketingCommunications

(includingPromotion)

Deliver Value

Placement Logistics

CustomerConsider factors such

as decision making,

values, needs &

wants

CompanyOr organisation. What

is our Strategic

Purpose? Capabilities?

Weaknesses?

ContextWhats going on in

the macro

environment?

CollaboratorsWho do we work with?

Who are our partners?

CompetitorsWho are our current

and potential

competitors? Where

are they placed in the

market?

SegmentationBased on geographic,

demographic,

psychographic and/or

behavioural factors

TargetingConsider strategic fit;

potential and defensibility

against competition

Analysis &

Strategy

Planning &

Implementation

PositioningYour place in the market space

Core benefit proposition

Unique selling proposition

Positioning Statement

DifferentiationDifferentiating the market

offering to create superior

customer value

Implementation, Monitoring &Measuring Outcomes

Marketing is

about creating

customer value

and profitable

customer

relationships

Marketing Objectives


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Our Approach Key Elements

Engaging&Interactive

ExtensiveResources(Text, Journals,Presentations,

Articles)

StarterPack

Case Based

GuestSpeakers Small

Group &Forum

Discussion

DigitalMedia

(e.g. clips; Tedtalks; YouTube;Marketing Links

etc.)

High endFacilitation


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We cant do it

for you or

without you


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StakeholderFeedback

LatestResearch

eVALUate

Update

Learning Outcomes clarified Resources available earlier

Significantly reduced workload

Updated Cases & Examples

Enhanced interactivity

.and we kept the best bits

knowledgeable and experiencedteam, slimline text, Guest

Speakers, good feedback, links

to industry, personal approach


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Blackboard Tips1. Log into Blackboard via OASIS.

2. Explore the site for a few minutes. Go through all of theitems in the menu bar and get to know where everything is.

3. Read theAnnouncements to see if there is any new important information.

4. Have a look in the Contacts section to learn more about your Unit Coordinator and

Lecturer.

5. Print out a copy of the Unit Outline. Pay particular attention to the following:1. Assessment section which details all the assessment components and due dates.

2. Unit Plannersection which outlines a recommended timetable.

6. Start working through the Unit Resources week by week / day by day, again depending

on mode of study or as directed by your Lecturer.

7. Go to The Learning Hub. Explore the resources available. This also tells you how tocreate yourStudent Home Journal Page.

8. Now create yourStudent Home Journal Page. This will help all of us to learn a little

more about each other.


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Suggestions for Success Take responsibility for your own learning

Read broadly and gather examples

Speak from your own experience not for others

Listen actively and with respect avoid side conversations

Participate and stretch your boundaries.

Stay on topic and allow room for others.

Respectfully challenge, focus on ideas not people.

Be present. Face to face - practice timely attendance and

mobiles off; online participate fully, dont leave it until thelast minute

Collaborate constructively and be conscious of team

dynamics


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Assessments The Tangible Bits

Assessment Type of

Assessment Weight Due Date

Assessment 1:

Written Analysis &

Discussion

Individual 30%

F2F Assessment 1: One Case PaperDue 5:00pm,Wednesday of the week of the relevant case

discussion. Submit via Turnitin.

FO Assessment 1: Discuss ion Opens Monday Feb

4, 6:00am; Closes Mon Feb 18, 8:00pm Perth, WA

Time (UTC/GMT +8 Hrs) .

Assessment 2:Case Study Individual 35%

Assessment 2 Indiv idual Case Analysis dueMonday March 18, 11: 59pm via Turnitin. Week 9

Assessment 3:

Appl ied Project

Group 35%

Assessment 3: Appl ied Project

Optional Draft 1 Due (Situation Analysis) Monday

Feb 25, 11: 59pm (via Turnitin) Week 6

Final complete project due Monday April 15,

11:59 pm via Turnitin. Week 13

We will discuss each of these

further. Also ensure you check

the Unit Outline and the

Assessment section in BB.


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SO LETS BEGIN


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Module 1: Learning Objectives

1. Define marketing and outline the Marketing

Management Framework applied in MM555.

2. Explain the importance of understanding and managing customer expectations

and delivering value

3. Identify the key elements of a customer-driven marketing strategy and discuss

the marketing management orientations that guide marketing strategy.

4. Discuss customer relationship management and identify strategies for creating

value forcustomers and capturing value from customers in return.

5. List some of the main trends and forces that are changing the marketing

landscape in this age of relationships.

6. Gain a holistic view of marketing management function, including the elementsof a marketing plan, and discuss the importance of measuring and managing

return on marketing investment.


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Textbook Resource: Kotler, Keller, Burton: Marketing Management 2009 Pearson Education Australia

What is Marketing to you?Write down every word you can think of. If it

keeps coming up write it again! And again!

Paste the text into www.wordle.com. The

result is what marketing means to you.

Share it with us.

What is Marketing ?
http://www.wordle.com/http://www.wordle.com/


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What is Marketing.?Marketing is the activity, set of institutions, and processes forcreating, communicating, delivering, and exchanging offerings thathave value for customers, clients, partners, and society at large.American Marketing Association)

Marketingconsists of activities that facilitate and expeditesatisfying exchange relationships in a dynamic environmentthroughthe creation, distribution, promotion, and pricing ofproducts (goods, services, and ideas). The Marketing Association of Australia

Marketing is the process by which companies create value forcustomers and build strong customer relationships in order to

capture value from customers in return.(Kotler & Armstrong, 2012, Principles of Marketing 14e, Pearson, England)

The process of creating, pricing, distributing, and promoting,goods, services, and ideas to facilitate satisfying exchangerelationships with customers and develop and maintain favorablerelationships with stakeholders in a dynamic environment.(Pride and Ferrell, 2012 Marketing, South-Western, Cengage Learning , USA)

Marketing is an exchange between a firm and its customers.Iacobucci 2013 MM3 South-Western, Cengage Learning , USA


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The Shift in Orientation

over the last 100 Years

Production

Product Sales

MarketingSocietal

Marketing

Societal Marketing Orientation

This is the idea that an organization exists

not only to satisfy customer wants but also

to preserve or enhance individuals and

societys long-term best interests. Less toxic products

More durable products

Products with reusable

or recyclable materials

What can

we make or

do best?

How can we

sell more

aggressively?

What do

customers

want and

need?

What do

customers

want and

need, and how

can we benefitsociety?

What can

we

make?The you can

have any car

as long as

its black

concept


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What drives these shifts?

The Changing Marketing Landscape: Uncertain and volatile economic environment

Rapid globalization

Sustainable marketing call for more social responsibility

Growth of not-for-profit marketing

New consumer frugality

The digital age and advances in mobile technology

Others? Try searching Marketing Trends for 2013! Some

very interesting shifts. Whats your prediction?

From a Creatives perspective: Creative

Forecast: How Marketing Will Change In 2013
http://www.fastcocreate.com/1682140/creative-forecast-how-marketing-will-change-in-2013http://www.fastcocreate.com/1682140/creative-forecast-how-marketing-will-change-in-2013http://www.fastcocreate.com/1682140/creative-forecast-how-marketing-will-change-in-2013


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Marketing Myopia

Marketing Myopia:

Mistake of focusing on specific products a

company offers rather than the benefits andexperiences produced by the products

They focus on the wants and lose sight of

the needs

Levitt, T. 1960 Marketing Myopia,

Harvard Business Review,

July August


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So...is the Marketing System still current?

Sellers send goods, services and communications to the

market. In return, they receive money and information(customer attitudes, sales data).

Source: Figure 1.1A Simple Marketing System from Kotler, P. and Keller, K. 2012A Framework for Marketing Management 5e Pearson Education Australia

In what ways do you think that current trends may have

impacted on this simple marketing system? Does it still

hold true?


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What Can We Market?

30

What else

can you think

of? Otherexamples?

Is there

anythingmissing from

this list?


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A CLOSER LOOK ATCUSTOMERS



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The MM555 Marketing Management Framework draws

on a number of sources including Iacobucci (2013),

Armstrong et al (2012) and Gibbs (2009) and includesthe key factors which need to be taken into account

when developing a comprehensive marketing strategy.

Create Value

Product / Service

People

Processes

Physical Evidence

Capture Value

Price

Communicate

Value

Integrated MarketingCommunications

(includingPromotion)

Deliver Value

Placement Logistics

CustomerConsider factors such

as decision making,

values, needs &

wants

CompanyOr organisation. What

is our Strategic

Purpose? Capabilities?

Weaknesses?

ContextWhats going on in

the macro

environment?

CollaboratorsWho do we work with?

Who are our partners?

CompetitorsWho are our current

and potential

competitors? Where

are they placed in the

market?

SegmentationBased on geographic,

demographic,

psychographic and/or

behavioural factors

TargetingConsider strategic fit;

potential and defensibility

against competition

Analysis &

Strategy

Planning &

Implementation

PositioningYour place in the market space

Core benefit proposition

Unique selling proposition

Positioning Statement

DifferentiationDifferentiating the market

offering to create superior

customer value

Implementation, Monitoring &

Measuring Outcomes

Marketing is

about creating

customer value

and profitable

customer

relationships


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Its all about Customer Value

Customer Value

The relationship between

benefits and the sacrifice

necessary to obtain

those benefits.

A Unique Selling Proposition is the

value that you offer customers thatnobody else does

Marketers try to increase perceptions

of value


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Customer Satisfaction

34

The customers

evaluation of a good or

service in terms of

whether it has met their

needs and

expectations.

Customer

Satisfaction

More on

this InModule 7


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Building Relationships

35

Relationship Marketing

A strategy that focuses on

keeping and improving

Relationships with current

customers.

Customer Relationship Management (CRM) emphasises the

importance of building long-term relationships with customers to

keep them satisfied and coming back.

Selling products that dont come back to people that do.


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ExpectedService

PerceivedService

GAP

Satisfaction Beware the Gap!

More on

this In

Module 7Does customer satisfaction matter?

Think of the last time you felt highly

satisfied or dissatisfied. What

caused this? How did you respond

when you felt this way?


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Customer Evaluations

Customer evaluations include:Customer satisfaction

Customer engagement

Perceptions of quality

Customers intentions to repurchaseCustomers likelihood of word-of-mouth, etc.

Marketers track these evaluations to inform planning and

to measure outcomes

37

C t E l ti


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38

Oliver, R.L. 1980. A cognitive Model of the Antecedents and Consequences of

Satisfaction Decisions. Journal of Marketing Research, Nov. pp460-469.

Low-involvement purchases

Evaluation is instantaneous

Expectations are usually latent

Evaluation Outcomes

If customers experiences:

Surpass their expectations delighted

Meet their expectations satisfied

Fall short of their expectations

dissatisfied

Disconfirmation Paradigm

Higher-involvement purchases

Evaluation is deliberative & conscious

Evaluation Processing



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Credence purchases Dont have expertise to evaluate

Evaluate what one can (price, looks, etc.)

39

Experience purchases

Evaluation completed after

trial/consumption

Expectations might not be fully formed;

the experience shapes evaluation &

expectations

Search goods

Evaluation is straightforward


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Sources of Expectations

Self

Consumers trust their own experienceExperience can be direct or indirect

Friends and experts

Trust those with no commercial gain

Marketing mix

Ads, price, retail atmosphere, etc.

Third party communications

e.g., Consumer Reports, books,

Internet, etc.

40

Ideal levels of quality

Predicted levels of quality

Adequate levels of quality

Zone of tolerance exists between the

adequate and predicted levels of

quality

Types of Expectations


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Characteristic and Measurement of Expectations

Expectations are dynamic

What pleased a customer last time may no longer suffice

Expectations vary cross-culturally

In individualist cultures, satisfaction is heavily influenced by quality of

reliability and service provider responsiveness

In collectivistic cultures, satisfaction is heavily influence by the relationalaspects of front-line employees

Measuring Expectations

Measuring quality with precision is difficult

Customer perceptions can be measured with surveysCustomer churn rate

Mystery shoppers

Monitor competitive performance

41

Customer Loyalty and Retention


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Customer Loyalty and Retention Customer Lifetime Value (CLV):

The value of the entire stream of purchases that the customer would make

over a lifetime of patronage ie the present value of the future cash flowsSome customers are costly to acquire, others more costly to retain

Share of Customer:

The portion of the customers purchasing that a company gets in their

product categories

Calculating CLV

Refer to your text. The following site also has detailed instructions and a

downloadable excel spreadsheet.

http://www.zeromillion.com/marketing/determining-lifetimevalue.html

Re Customers -

The 80/20 rule

often applies!
http://www.zeromillion.com/marketing/determining-lifetimevalue.htmlhttp://www.zeromillion.com/marketing/determining-lifetimevalue.html


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Delivering Value

Managing the Marketing Mix: The 7ps

Some texts talk

about 4Ps do we

really need to

consider 7?


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DIGGING DEEPER

In the News; Out of Academia; Around the Grounds

In each Module we encourage

you to hunt out the latest news;

explore the research and scansocial media for whats new,

whats important and what has

piqued your interest on the topic

of marketing


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..What Caught Your Eye This Week?Source: http://thisweekin.com

Thi W k R di


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This Weeks Reading.

..Which Ideas Will You Hold Onto? Achrol, Ravi A. and Philip Kotler. 2012. "Frontiers of the marketing

paradigm in the third millennium"Journal of the Academy of MarketingScience 40 (1): 35-52.

Ho Yin Wong, Kylie Radel, Roshnee Ramsaran-Fowdar. 2011.

"Building a Marketing Plan." BusinessExpress Press: Chapter 5:

Marketing Objectives and Strategy Formulation, HBP Product number:

BEP119-PDF-ENG.

Lusch, Robert F. 2007. "Marketing's evolving identity: defining ourfuture." Journal of Public Policy and Marketing 26 (2): 261-268.

Wilkie, William and Elizabeth Moore. 2012. "Expanding our

understanding of marketing in society." Journal of the Academy of

Marketing Science 40 (1): 53-73.

Zineldin, Mosad and Sarah Philipson. 2012. "Kotler and Borden are

not dead: myth of relationship marketing and truth of the 4Ps"The

Journal of Consumer Marketing 24 (4): 229-241.

Other Marketing Thought Leaders include Peter

Drucker; Theodore Levitt and his seminal 1960 article

Marketing Myopia and of course Kotler

Your top 3

concepts from

the readings?

Share these in

class or online

http://eres.lis.curtin.edu.au/cgi-bin/gw?url=DC65087193http://eres.lis.curtin.edu.au/cgi-bin/gw?url=DC65087193http://link.lis.curtin.edu.au/gw?url=http://www.CURTIN.eblib.com.au/patron/FullRecord.aspx?p=876613http://eres.lis.curtin.edu.au/cgi-bin/gw?url=DC65087197http://eres.lis.curtin.edu.au/cgi-bin/gw?url=DC65087197http://eres.lis.curtin.edu.au/cgi-bin/gw?url=DC65087195http://eres.lis.curtin.edu.au/cgi-bin/gw?url=DC65087195http://eres.lis.curtin.edu.au/cgi-bin/gw?url=DC65087199http://eres.lis.curtin.edu.au/cgi-bin/gw?url=DC65087199http://eres.lis.curtin.edu.au/cgi-bin/gw?url=DC65087199http://eres.lis.curtin.edu.au/cgi-bin/gw?url=DC65087199http://eres.lis.curtin.edu.au/cgi-bin/gw?url=DC65087195http://eres.lis.curtin.edu.au/cgi-bin/gw?url=DC65087195http://eres.lis.curtin.edu.au/cgi-bin/gw?url=DC65087197http://eres.lis.curtin.edu.au/cgi-bin/gw?url=DC65087197http://link.lis.curtin.edu.au/gw?url=http://www.CURTIN.eblib.com.au/patron/FullRecord.aspx?p=876613http://eres.lis.curtin.edu.au/cgi-bin/gw?url=DC65087193http://eres.lis.curtin.edu.au/cgi-bin/gw?url=DC65087193


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Checking In..1. Define marketing and outline the Marketing

Management Framework applied in MM555.

2. Explain the importance of understanding and managing customer expectations

and delivering value

3. Identify the key elements of a customer-driven marketing strategy and discuss

the marketing management orientations that guide marketing strategy.

4. Discuss customer relationship management and identify strategies for creating

value forcustomers and capturing value from customers in return.

5. List some of the main trends and forces that are changing the marketing

landscape in this age of relationships.

6. Gain a holistic view of marketing management function, including the elementsof a marketing plan, and discuss the importance of measuring and managing

return on marketing investment.

Next Steps


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Next Steps

Hit the ground Running!

Review the Material for

Modules 1 and 2

Revisit the Suggestions for Success!

Review the Unit Outline for Set Tasks

Start Networking think about Project Teams. As part ofthis, complete your Student Home Journal

Do the Reading and watch for Announcements

Digging Deeper What will you offer us?

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