Lectures Advanced marketing and management
It’s good to use quantitative marketing models, because these are better business decisions with
empirical evidence. The marketers are held accountable. Businesses generate and collect data.
A model is a simplified representation of the world. It is built to help us understand the world and to
make predictions. At some point you have to make predictions. The holistic marketing concept is the
key to achieving organizational goals is being more effective than competitors in creating, delivering,
and communicating superior customer value to your target markets. We segment the market based
on what people want.
Business unit strategic planning is planning: corporate, division, business, product planning,
implementing: organizing, implementing, controlling: measuring results, diagnosing results, taking
corrective action. We start by the strategy formulation. First we have to choose the value: customer
segmentation, market selection/focus, value positioning, then provide the value: product
development, service development, pricing, sourcing/making, distributing/servicing, communicate
the value: sales force, sales promotion, advertising.
Strategic planning in the SBU: lower level in the organization, closer to the market/customers!
Process that if you later work as a marketing manager most work with (together with product
1. Starts with the business mission: more or less given by higher level in the company
influences strategy of SBU.
2. SWOT analysis: strengths & weaknesses: think back to the elements of competitive
advantage we discussed at the beginning of the lecture.
a. External environment: opportunities & threats: picture of the environment yesterday
(macro and micro environment).
i. Opportunity: development in the market (e.g. technology) that you can use
to improve your performance.
ii. Threat: development in the environment that will harm your position if you
don’t do anything
3. Based on the SWOT: what should be our goals in the next planning period? Increase
4. Strategy formulation: how are you going to achieve your goals?
5. Program formulation: How are you going to implement the strategy? Strategy: develop a
new product, Program: what are the activities you need for that?
6. Implementation: E.g., hire R&D people to develop the product.
7. Feedback and control: Were you successful? Did you achieve your goals? If not, where did it
Link between business unit strategic planning and value delivery process: Choosing the value =
strategy formulation. Providing the value and communicating the value = program formulation
Brand choice models
Differentiation (What you do to an offering): Creating tangible or intangible differences on one or
more attributes between a focal offering and its main competitors. Positioning (What you try to do
to the minds of customers): A set of strategies a firm develops to differentiate its offering in the
minds of its target customers. Successful positioning will result in the offering occupying a distinct,
important, and sustainable position in the minds of the target customers. In the world of keyword-
based searching, it becomes important to be able to be found – again this calls for good positioning.
There are different levels of competitions. There are product from competition (diet colas), product
category competition (soft drinks), generic competition (beverages), budget competition (food and
entertainment). You have a certain budget as consumer. You have to convince the customers.
The market share of this moment divided to total multiplied x apple total / total x total = 19.2. We
can standardize the values. Standardized residuals: (O – E) / square E = (49 – 19.2) / SQR 19.2 = 6.8.
Standardized residuals > 1.96 in absolute value are significant. It’s about loyalty of the customers. A
negative standardized residual has to do with switching to other brands.
Market segmentation is the subdividing of a market into distinct subsets of customers. Segments are
members that are different between segments but similar within. You have to search for
homogeneous people within a group with people who has different wants and needs. If we do this,
we could serve a specific segment better. It has advantages for the company and for the customers.
The customers develop preference for your brand, and may become loyal. They will start to
communicate positively about your brand. This is an effective way of marketing. Loyal customers
lead to larger market share. This means that you don’t have to worry about your competitors. You
need fewer marketing resources because there are less people to communicate with. The profit will
This slide shows how the benefit side of the equation develops when doing segmentation and STP.
Desirable criteria for segments:
Measurable: You have to obtain data from these customers. They have to fill in a
questionnaire for example.
Sizeable: If you have a market segment, it should be big enough to be served in a profitable
way. It has to be substantial.
Identifiable: You need to be able to describe a segment in a certain way. You need to have a
label for them.
Reachable: If you identify them, is there a way to deliver your offer to these specific
customers. They have to be accessible.
Brand choice models
Information used in dimensional scaling
Lecture 5 Diffusion and forecasting
Bass diffusion model
Guest lecture Grodan
Guest Lecture Mondelez
Mondelez international strategy
Liga brand management
Guest Lecture Microsoft
Guest Lecture EBRD
Lecture 1 Ch. 1 Introducing strategy
What is strategy?
Strategy statements; key terms
Levels of strategy
Fundamentals of strategy framework
Chapter 2 The business environment
Lecture 2 Ch. 3 Industry and sector analysis
Competitor groups and segments
Chapter 4 Resources and capabilities
What are resources and capabilities?
What type of resources and capabilities can contribute to competitive advantage and superior performance?
How can resources and capabilities be evaluated?
Lecture 3 Ch. 4 Resources & capabilities
How can resources and capabilities be developed and managed?
Technology push or market pull
Product or process innovation
Open or closed innovation
Chapter 5 Stakeholders and Culture
Conflicts of stakeholder interests and expectations
Corporate governance board structures
Marks and Spencer
Chapter 6 Choices
Generic competitive strategies
Lecture 5 Chapter 7
Corporate strategy directions
Value-adding activities and the corporate parent
What methods for expansion?
Lecture 6 Chapter 8 Strategy in action
Strategy in action