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Marketing
- creating customer value
Peter Zackariasson, Ph.D.
University of Gothenburg
School of Business, Economics and Law
peter.zackariasson@handels.gu.se
Schedule
• Thursday - basic
marketing, group
exercise	

• Friday - B2B, social
media and marketing,
guest lecture: Peter
Svensson, head of
marketing (nelly.com)	

• Saturday - case: Mutti
• ”the primary observable phenomenon for
any theory of marketing is the hard
practical fact of the market”

(McInnes 1964, p.52)	

• ”a theory of marketing explains how
markets work”

(Alderson 1965, p.23)
"Marketing is the activity, set of institutions, and
processes for creating, communicating, delivering, and
exchanging offerings that have value for customers,
clients, partners, and society at large.”	

!
American Market Association (AMA) 2007
• first, there is no stable set of practices or ideas
that we can unequivocally call ‘marketing’; what
counts as ‘marketing’ depends on local
contingencies and changes over time	

• second, the processes of ‘producing’ markets are
complex and many marketing efforts partake;
hence, the outcome rarely takes on the shape
intended as part of anyone effort	

• third,‘markets’ regularly take on a wide variety of
forms; there is thus no single outcome of
productive marketing work
”How do WE
create value for
YOU?”
1970 - 14 000 employees in 140 countries	

1973 - sold to Electrolux
Production
capacity
Product orientation
Manufacturing
Aggressive sales
Consumer
Consumer need
Consumer orientation
Potential market
possibilities
Marketing of
product/service
Consumer
Customer orientation
TAKE 5 MINUTES AND THINK ABOUT WHAT PRODUCTS
OR SERVICES YOUR COMPANY ARE SELLING, TO
WHOM YOU SELL THIS, AND HOW.
PRESENT THE RESULTS TO YOUR COLLEAGUES AT
THE TABLE, DISCUSS SIMILARITIES AND DIFFERENCES
BETWEEN YOUR COMPANIES.
WHAT ABOUT YOUR COMPANY?!
Augmentetd

Product
Actual
Product
Core
Product
What are we selling?
Core Product?
Core Product?
Marketing Mix
• Product Planning	

• Pricing	

• Branding	

• Channels of Distribution	

• Personal selling	

• Advertising	

• Promotions	

• Packaging	

• Display	

• Servicing	

• Physical handling	

• Fact finding and analysis
• Product	

• Price	

• Place	

• Promotion	

!
• People	

• Process	

• Physical evidence
The world’s shortest
market plan (Kelly Odell)
What Why When How
How
much
Who
Product
What products
do you sell?
What need does
it fill?
When do you
need it?
How will the
product fill the
need?
Product cost,
volume to be
sold etc.
Customer
segments to be
targeted?
Price
What price will
you sell for?
Why is that the
right price?
How long will the
price be valid?
How will the
price develop
over time?
How much sales
and margin will
be created?
Different prices
for different
segments?
Place
How will
products be
distributed?
Why choose
these channels?
When do
customer choose
different
channels?
How will we
create of enter
these channels?
What are the
cost/benefits of
these channels?
How do different
segments use
different
channels?
Pro-
motion
What type of
promotion to be
used?
Why choose
these activities?
Timing: launch,
lifecycle etc.
How will the
promotion be
executed?
Cost/benefit of
the promotion?
Target group for
various
promotions?
DOES THIS MATRIX ADD KNOWLEDGE
FOR YOU TO HANDLE YOUR COMPANY?
(HOW) DOES THIS CHANGE THE IMAGE
YOUR HAVE DRAWN OF YOUR COMPANY?
Place to meet customers?
Price strategies
Product lifecycle
Market
Penetration
Product
Development
Market
Development
Diversification
Existing
Markets
New
Markets
Existing
Products
New
Products
Brand Repositioning
Product - Service
Strength Weaknesses
Opportunities Threats
SWOT
BCG matrix
What about the customer?
Profile
Demografy	

Socioeconomic	

Geografic
Psykographic
Lifestyle	

Personality
Behaviour
Benefits sought	

Buying occation	

Buying behaviour	

Usage	

Perceived benefits
Market segmentation
Köpare
Beslutsfattare
Användare Påverkare
Gatekeeper
Initiativtagare
Decision maker
Customer
Consumer
Initiator
Influencer
Gatekeeper
Market communication
The communication
process
After-sales service
CHOOSE A WELL KNOWN PRODUCT OR SERVICE
THAT IS EASILY EXPLAINED TO ANYONE
AS IT HAPPENS, YOU ARE ON THE BOARD FOR
THE COMPANY PRODUCING THAT PRODUCT!
BUT SADLY, IT’S NOT SELLING!!
WHAT TO DO?!
YOU HAVE 15 MINUTES TO YOUR DISPOSAL
GROUP ASSIGNMENT: BRAND
REPOSITIONING
NOW, LEAVE THE CHALLENGE TO A
CONSULTING COMPANY.
THE TASK AT HAND FOR THE
CONSULTING COMPANY IS TO CREATE
A MARKET PLAN FOR THE PRODUCT/
SERVICE THAT WILL SAVE THE DAY!
BE CREATIVE AND BOLD!
USE AVAILABLE RESOURCES FOR
YOUR 5 MINUTES PRESENTATION TO
THE BOARD
GROUP ASSIGNMENT: BRAND
REPOSITIONING
Rory Sutherland,TED.com
B2B marketing
Business markets involve far more money and items than do
consumer markets.
Derived demand - business demand that ultimately comes
[derives] from the demand for consumer goods
Inelastic demand - total demand for a product that is not
much affected by the price changes, especially in the short
run
Business Buying Behaviour
The environment!
!
Marketing stimuli!
4 x P!
!
Other stimuli!
economic!
political!
cultural!
competitive
The buying
organization!
!
the buying centre!
buying decision process
Buying responses!
!
product or service choice!
supplier choice!
order quantities!
delivery terms and times!
service terms!
payment
Major types of buying situations
✤ straight rebut!
✤ modified rebut!
✤ new task!
!
✤ systems selling
Major influences on business buyers
Environmental!
!
economic developments!
supply conditions!
technological change!
political and regulatory
developments!
competitive
developments!
culture and customs
Organizational!
!
objectives!
policies!
procedures!
organizational structures!
systems
Interpersonal!
!
authority!
status!
empathy!
persuasiveness
Individual!
!
age!
income!
education!
job position!
personality!
risk attitudes
The Business Buying Process
TAKE 5 MINUTES AND THINK ABOUT THE DIFFERENCES
BETWEEN YOUR BUYING BEHAVIOR IN YOUR
ORGANIZATION COMPARED TO YOUR BUYING
BEHAVIOR IN PRIVATE.
PRESENT THE RESULTS TO YOUR COLLEAGUES AT
THE TABLE, DISCUSS YOUR CONCLUSIONS.
WHAT ABOUT YOU?!
Module assignment
Written reflection
Use the course literature in acquiring knowledge about the
subject of marketing
The task is to use the knowledge communicated throughout
the module to analyze your organization and its customer.
This in order to construct a market communication
campaign that reflect both your companies values and
strategies, and the needs and wants of your customer.
Format: 2000-3000 words

Make explicit references

Deadline: in May 10
MARKETING AND SOCIAL MEDIA
Peter Zackariasson, Ph.D.	

University of Gothenburg
From one to one, to many to many
Kaplan and Haenlein(2010)
Social presence / Media richness
Low Medium High
Self-
presentation
/ self-
disclosure
High Blogs
Social
networking sites
(e.g., Facebook)
Virtual social
worlds (e.g.,
Second Life)
Low
Collaborate
projects (e.g.,
Wikipedia)
Content
communities
(e.g.,YouTube)
Virtual game
worlds (e.g.,
World of
Warcraft)
Social media is everywhere through mobile technology
CONVERGING MEDIA
Henry Jenkins (2006)
ON CONVERGENCE –THE
MATRIX
Movie
Video Game
Comics
TEN PIECES OF ADVICE
Using the media:
• Choose carefully	

• Pick the application, or make
your own	

• Ensure activity alignment	

• Media plan integration	

• Access for all	

Being social:
• Be active	

• Be interesting	

• Be humble	

• Be unprofessional	

• Be honest
The Worlds Largest Social Media, 750 million
2010	

4,1 million Swedes logged in the last month	

3,9 million Sweden back each week	

!
61% 25+ years	

51% male	

!
13-17 18%	

18-24 18%	

25-34 22%	

35-44 24%	

45+ 19%
Six degrees of separation
Flickr
Downfall and user-created content
Ownership
What are your company’s strategy
when it comes to social media?
• Take 5 minutes each and map out WHAT
you are doing when it comes to social
media and WHY.	

• Communicate the results to the rest of
your group. (15 minutes)
Where everybody knows your name...
The term third place was invented by sociologist Ray
Oldenburg and first appeared in his 1990 bookThe Great
Good Place, a celebration of the places where people can
regularly go to take it easy and commune with friends,
neighbors, and just whoever shows up.The subtitle says it
all: "Cafes, Coffee Shops, Community Centers, Beauty
Parlors, General Stores, Bars, Hangouts and HowThey Get
YouThrough the Day."
Third Place
"All great societies provide informal meeting places, like the
Forum in ancient Rome or a contemporary English pub,"
explained Oldenburg, a faculty member at West Florida
State University. "But since World War II,America has
ceased doing so.The neighborhood tavern hasn't followed
the middle class out to the suburbs...Accordingly, for eight
years, Oldenburg devoted himself to gathering the legend
and lore of America's last remaining neighborhood taverns,
ma-and-pa grocery stores and other examples of what he
calls "third places."The term derives from Oldenburg's gloss
on a Freudian concept.	

!
...
Sigmund Freud held that emotional well-being depends
upon having someone to love and work to do. Oldenburg
argues that the great psychoanalyst made his mental-health
list one item too short. Besides a mate and a job, Oldenburg
said, we need a dependable place of refuge where, for a few
minutes a day, we can escape the demands of family and
bosses. In that kind of psychological Eden, an easy-going
conviviality allows us to be temporarily amnesic to our woes
and shortcomings. Oldenburg is convinced that many
problems of contemporary society — alienation in the
workplace, soaring divorce rates, etc. — trace to America's
declining supply of such third places.”

Ron Grossman, "Hangouts," ChicagoTribune, February 4,
1990
Mazlow’s pyramid of needs
Word of mouse
Democracy, or anarchy of thousand monkeys?
Dog poop girl
Multi-Use Dungeon
Massively-Multiplayer Online Role-Playing Game (MMORPG)
GAMES AS ADVERTISING
MEDIA
Reach
• 68 % of US household play video games	

• Average gamer is 35 year	

• 40 % are female (entertainment software
association)	

Frequency
• Video games are part if the mainstream
media exposure	

• Some genres has an average participation
up to 23 hours/week	

Media Impact
• Video games give opportunity to interact
with advertising	

• The medium is rich of opportunities to
use sight and sound
ADVERTISING IN GAMES
“If you landed at exactly the right spot, a McDonald’s
appeared.The astronaut would come out, walk over to
the McDonald’s and order a Big Mac to go, walk back
and take off again. If you crashed ON the McDonalds,
it would print out “You clod!You’ve destroyed the only
McDonald’s on the Moon!””	

!
(Adverlab about Lunar Lander (1973), interview on
Gamer Limit)
Electronic Arts sport games
PRODUCT PLACEMENT AS
PART OF GAMEPLAY
The Sims (Electronic Arts)
ALTERNATIVE REALITY GAMES
SERIOUS GAMES
September 12th (Watercooler Games)
Rives tells a story of mixed emoticons
GAMIFICATION
gamification involves the use of game mechanics in “non-game” contexts
thefuntheory.com
Gamified Bond promotion

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Emba 2014 marketing module

  • 1. Marketing - creating customer value Peter Zackariasson, Ph.D. University of Gothenburg School of Business, Economics and Law peter.zackariasson@handels.gu.se
  • 2. Schedule • Thursday - basic marketing, group exercise • Friday - B2B, social media and marketing, guest lecture: Peter Svensson, head of marketing (nelly.com) • Saturday - case: Mutti
  • 3. • ”the primary observable phenomenon for any theory of marketing is the hard practical fact of the market”
 (McInnes 1964, p.52) • ”a theory of marketing explains how markets work”
 (Alderson 1965, p.23)
  • 4. "Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.” ! American Market Association (AMA) 2007
  • 5.
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  • 7. • first, there is no stable set of practices or ideas that we can unequivocally call ‘marketing’; what counts as ‘marketing’ depends on local contingencies and changes over time • second, the processes of ‘producing’ markets are complex and many marketing efforts partake; hence, the outcome rarely takes on the shape intended as part of anyone effort • third,‘markets’ regularly take on a wide variety of forms; there is thus no single outcome of productive marketing work
  • 8. ”How do WE create value for YOU?”
  • 9.
  • 10. 1970 - 14 000 employees in 140 countries 1973 - sold to Electrolux
  • 12. Consumer need Consumer orientation Potential market possibilities Marketing of product/service Consumer
  • 14.
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  • 16. TAKE 5 MINUTES AND THINK ABOUT WHAT PRODUCTS OR SERVICES YOUR COMPANY ARE SELLING, TO WHOM YOU SELL THIS, AND HOW. PRESENT THE RESULTS TO YOUR COLLEAGUES AT THE TABLE, DISCUSS SIMILARITIES AND DIFFERENCES BETWEEN YOUR COMPANIES. WHAT ABOUT YOUR COMPANY?!
  • 20.
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  • 22. Marketing Mix • Product Planning • Pricing • Branding • Channels of Distribution • Personal selling • Advertising • Promotions • Packaging • Display • Servicing • Physical handling • Fact finding and analysis • Product • Price • Place • Promotion ! • People • Process • Physical evidence
  • 23. The world’s shortest market plan (Kelly Odell) What Why When How How much Who Product What products do you sell? What need does it fill? When do you need it? How will the product fill the need? Product cost, volume to be sold etc. Customer segments to be targeted? Price What price will you sell for? Why is that the right price? How long will the price be valid? How will the price develop over time? How much sales and margin will be created? Different prices for different segments? Place How will products be distributed? Why choose these channels? When do customer choose different channels? How will we create of enter these channels? What are the cost/benefits of these channels? How do different segments use different channels? Pro- motion What type of promotion to be used? Why choose these activities? Timing: launch, lifecycle etc. How will the promotion be executed? Cost/benefit of the promotion? Target group for various promotions?
  • 24. DOES THIS MATRIX ADD KNOWLEDGE FOR YOU TO HANDLE YOUR COMPANY? (HOW) DOES THIS CHANGE THE IMAGE YOUR HAVE DRAWN OF YOUR COMPANY?
  • 25.
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  • 29. Place to meet customers?
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  • 35.
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  • 40. What about the customer?
  • 41.
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  • 57.
  • 58.
  • 60. CHOOSE A WELL KNOWN PRODUCT OR SERVICE THAT IS EASILY EXPLAINED TO ANYONE AS IT HAPPENS, YOU ARE ON THE BOARD FOR THE COMPANY PRODUCING THAT PRODUCT! BUT SADLY, IT’S NOT SELLING!! WHAT TO DO?! YOU HAVE 15 MINUTES TO YOUR DISPOSAL GROUP ASSIGNMENT: BRAND REPOSITIONING
  • 61. NOW, LEAVE THE CHALLENGE TO A CONSULTING COMPANY. THE TASK AT HAND FOR THE CONSULTING COMPANY IS TO CREATE A MARKET PLAN FOR THE PRODUCT/ SERVICE THAT WILL SAVE THE DAY! BE CREATIVE AND BOLD! USE AVAILABLE RESOURCES FOR YOUR 5 MINUTES PRESENTATION TO THE BOARD GROUP ASSIGNMENT: BRAND REPOSITIONING
  • 64. Business markets involve far more money and items than do consumer markets.
  • 65. Derived demand - business demand that ultimately comes [derives] from the demand for consumer goods Inelastic demand - total demand for a product that is not much affected by the price changes, especially in the short run
  • 66. Business Buying Behaviour The environment! ! Marketing stimuli! 4 x P! ! Other stimuli! economic! political! cultural! competitive The buying organization! ! the buying centre! buying decision process Buying responses! ! product or service choice! supplier choice! order quantities! delivery terms and times! service terms! payment
  • 67. Major types of buying situations ✤ straight rebut! ✤ modified rebut! ✤ new task! ! ✤ systems selling
  • 68. Major influences on business buyers Environmental! ! economic developments! supply conditions! technological change! political and regulatory developments! competitive developments! culture and customs Organizational! ! objectives! policies! procedures! organizational structures! systems Interpersonal! ! authority! status! empathy! persuasiveness Individual! ! age! income! education! job position! personality! risk attitudes
  • 70. TAKE 5 MINUTES AND THINK ABOUT THE DIFFERENCES BETWEEN YOUR BUYING BEHAVIOR IN YOUR ORGANIZATION COMPARED TO YOUR BUYING BEHAVIOR IN PRIVATE. PRESENT THE RESULTS TO YOUR COLLEAGUES AT THE TABLE, DISCUSS YOUR CONCLUSIONS. WHAT ABOUT YOU?!
  • 71. Module assignment Written reflection Use the course literature in acquiring knowledge about the subject of marketing The task is to use the knowledge communicated throughout the module to analyze your organization and its customer. This in order to construct a market communication campaign that reflect both your companies values and strategies, and the needs and wants of your customer. Format: 2000-3000 words
 Make explicit references
 Deadline: in May 10
  • 72. MARKETING AND SOCIAL MEDIA Peter Zackariasson, Ph.D. University of Gothenburg
  • 73. From one to one, to many to many
  • 74.
  • 75.
  • 76. Kaplan and Haenlein(2010) Social presence / Media richness Low Medium High Self- presentation / self- disclosure High Blogs Social networking sites (e.g., Facebook) Virtual social worlds (e.g., Second Life) Low Collaborate projects (e.g., Wikipedia) Content communities (e.g.,YouTube) Virtual game worlds (e.g., World of Warcraft)
  • 77. Social media is everywhere through mobile technology
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  • 85. TEN PIECES OF ADVICE Using the media: • Choose carefully • Pick the application, or make your own • Ensure activity alignment • Media plan integration • Access for all Being social: • Be active • Be interesting • Be humble • Be unprofessional • Be honest
  • 86. The Worlds Largest Social Media, 750 million 2010 4,1 million Swedes logged in the last month 3,9 million Sweden back each week ! 61% 25+ years 51% male ! 13-17 18% 18-24 18% 25-34 22% 35-44 24% 45+ 19%
  • 87. Six degrees of separation
  • 89.
  • 92. What are your company’s strategy when it comes to social media? • Take 5 minutes each and map out WHAT you are doing when it comes to social media and WHY. • Communicate the results to the rest of your group. (15 minutes)
  • 93. Where everybody knows your name...
  • 94. The term third place was invented by sociologist Ray Oldenburg and first appeared in his 1990 bookThe Great Good Place, a celebration of the places where people can regularly go to take it easy and commune with friends, neighbors, and just whoever shows up.The subtitle says it all: "Cafes, Coffee Shops, Community Centers, Beauty Parlors, General Stores, Bars, Hangouts and HowThey Get YouThrough the Day." Third Place
  • 95. "All great societies provide informal meeting places, like the Forum in ancient Rome or a contemporary English pub," explained Oldenburg, a faculty member at West Florida State University. "But since World War II,America has ceased doing so.The neighborhood tavern hasn't followed the middle class out to the suburbs...Accordingly, for eight years, Oldenburg devoted himself to gathering the legend and lore of America's last remaining neighborhood taverns, ma-and-pa grocery stores and other examples of what he calls "third places."The term derives from Oldenburg's gloss on a Freudian concept. ! ...
  • 96. Sigmund Freud held that emotional well-being depends upon having someone to love and work to do. Oldenburg argues that the great psychoanalyst made his mental-health list one item too short. Besides a mate and a job, Oldenburg said, we need a dependable place of refuge where, for a few minutes a day, we can escape the demands of family and bosses. In that kind of psychological Eden, an easy-going conviviality allows us to be temporarily amnesic to our woes and shortcomings. Oldenburg is convinced that many problems of contemporary society — alienation in the workplace, soaring divorce rates, etc. — trace to America's declining supply of such third places.”
 Ron Grossman, "Hangouts," ChicagoTribune, February 4, 1990
  • 99. Democracy, or anarchy of thousand monkeys?
  • 103.
  • 104. GAMES AS ADVERTISING MEDIA Reach • 68 % of US household play video games • Average gamer is 35 year • 40 % are female (entertainment software association) Frequency • Video games are part if the mainstream media exposure • Some genres has an average participation up to 23 hours/week Media Impact • Video games give opportunity to interact with advertising • The medium is rich of opportunities to use sight and sound
  • 106. “If you landed at exactly the right spot, a McDonald’s appeared.The astronaut would come out, walk over to the McDonald’s and order a Big Mac to go, walk back and take off again. If you crashed ON the McDonalds, it would print out “You clod!You’ve destroyed the only McDonald’s on the Moon!”” ! (Adverlab about Lunar Lander (1973), interview on Gamer Limit)
  • 107.
  • 108.
  • 110. PRODUCT PLACEMENT AS PART OF GAMEPLAY The Sims (Electronic Arts)
  • 112. SERIOUS GAMES September 12th (Watercooler Games)
  • 113. Rives tells a story of mixed emoticons
  • 114. GAMIFICATION gamification involves the use of game mechanics in “non-game” contexts