Lecture 1: Intro to Marketing

Question 1

What does dual processing theory consist of

Answer 1

system 1 and system 2

Question 2

Characteristics system 1

Answer 2

1. Unconscious
2. Uncontrollable
3. Effortless
4. Great capacity
5. Non-verbal
6. Fast
7. Parallel
8. Associative
9. Emotional

Question 3

Characteristics system 2

Answer 3

Conscious
Controllable
Effortful
Small capacity
Verbal
Slow
Serial
Rule-based
Rational

Question 3

What is marketing as a tactic

Answer 3

• sales promotion and coupon
• advertising, logos, brochures

Question 4

what is marketing as a cost

Answer 4

• the accountability problem
• the accounting problem

Question 5

accountability problem

Answer 5

it is hard to say whether marketing related items generate retunr

Question 6

accounting problem

Answer 6

marketing is always perceived as a cost in P&L

Question 7

strategy

Answer 7

it is a clear set of plans, actions and goals that outline how business will compete in a particular market with their product or service

Question 8

how are marketing and strategy perceived

Answer 8

they are the same but from different perspectives hence why 5Cs and 5 forces are similar

Question 9

how has marketing changed over the years

Answer 9

from: product-oriented
to: customer oriented
now: system oriented

Question 10

product oriented (1960s)

Answer 10

marketing is the execution of business activities aimed at navigating a stream of products and services from manufacturers to customers
(nothing about customer wants and needs)

Question 11

example of product oriented

Answer 11

French wine manufacturers
- they haven’t realised how to satisfy needs of their customers, they assume everyone knows different grapes and where they are made.

Question 12

Customer orientation (1990s)

Answer 12

the process of identifying wants and needs
- focus on customer benefit

Question 13

example of customer oriented

Answer 13

Black and Decker drills
- perceived need: drill holes - but that doesnt explain why people drill on average 1 hole a year.
- the REAL need is to feel independent from parents
- target: young men who just moved out
- fastest growing segment: young women who just moved out and have the same need as the men (independence)

Question 14

why B&D never tapped into professional construction people

Answer 14

these people are opinion leaders and don’t want and need the same tool as average person
- to combat they made a new brand for professionals

Question 15

what is the implicit assumption at the heart of marketing

Answer 15

as long as consumption creates value for both consumers and companies, we should encourage unlimited consumption
NO LONGER HOLDS

Question 16

system orientation view

Answer 16

creating shared value for everyone involved

Question 17

system orientation example

Answer 17

Danone
- CEO turned them into a company with a purpose (purpose driven)
- introduced carbon-adjusted EPS to illustrate the carbon impact
- got fired because purpose driven can and will cost money and company marketing share will likely decrease.

Question 18

financial performance benefits of shared value

Answer 18

1. enhanced firm reputation
2. stakeholder endorsement (internal and external)
3. risk mitigation
4. improved innovation capacity - via access to knowledge and internal capabilities

Question 19

what is the most important thing if you are purpose driven?

Answer 19

consistency in everything that you do.
purpose needs to build strong appeal.