Table of Contents

Marketing Principles and Processes

Module 1: What is Marketing?
Marketing is about customers, processes, and profits
1. What is Marketing?
2. The History of Trading and Wealth Creation
How world trade got started
3. Master Traders
4. Global Trading System Dynamics
5. A Theory of Market Dynamics
Product innovation life-cycle
6. Process Improvement
Business Process Thinking Scale

Cases
Case 1: Cyrus McCormick: Understanding the Importance of Marketing Processes and Product Innovation
Case 2: Southwest Airlines: Superb Processes Invented and Implemented by Superb Process Thinkers
Case 3: The Future of the “We-Market-They-Make” Business Model
Case 4: The Chinese Gooseberry Story: The Inevitability of the Global Innovation-Imitation Process
Case 5: Excellence in the Wrong Direction

Slideshow
The Big Picture · Marketing and Humanity · Prosperity and Wealth Creation · The Schumpeter
Wealth Creation Principle · The Smith Wealth Creation Principle · Marketing and Wealth
Creation · The Wealth Creation Dynamic · The Wealth Creation Feedback Effect · The Wealth of
Nations · Trading and Wealth Creation · A Short Story of Civilization · Global Trading System
Dynamics · Global Trading Implications · Understanding Supply and Demand · A Theory of
Market Dynamics · The Product Innovation Life-Cycle · Creative Destruction · Thinking about
Competitive Processes · The Big Picture

Module 2: Analysis and Planning:

Chance favors the prepared mind
1. Analyzing Competition
Auditing current competitors
2. Analyzing Channels
Researching individual trade customers
3. Market Scanning and Analysis
4. Market Law and Regulation
5. Marketing Planning
Market analysis and intelligence generation and dissemination
Sources of analysis, expertise and intelligence
Calling intelligence experts
6. SWOT Analysis and Strategic Planning
7. Implementation and Budgeting
Entrepreneurial business development teams
The budget documents
Market Orientation Appendix

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Cases
Case 1: Trading Relationship Competitive Analysis and Metrics
Case 2: The World Electric Car Vehicle (WeV) Situation Analysis
Case 3: The All in 1 Net-tablet Situation Analysis
Case 4: Campaign Process Mapping Exercise
Case 5: Understanding and Managing Costs
Case 6: Gap Analysis
Case 7: Capital Creation Analysis
Case 8: National Family ArchivesTM Planning and Budgeting

Worksheets
Competitive Analysis
Planning Gap Analysis
Capital Creation Analysis
NFA Case Budget

Slideshow
Analyzing Competition · Analyzing Channels · Environment Scanning and Analysis · Market Law and
Regulation · Planning Documents and Processes · SWOT Analysis and Strategic Planning · How to
Implement Plans · Budgeting Documents and Processes

Module 3: Ethics and Social Responsibility:

Good marketing and marketing good
1. Codes of Ethics
Company codes of ethics in practice
2. A Personal Ethics Checklist
3. Understanding Marketing Ethics
The most good for the most people: the utility principle
The categorical imperative
The source of our ethics
Global cross-cultural ethics
A global business ethics index
4. Marketing’s Social Contract
Wasteful marketing of too many products that fail
Wasteful marketing of too many unneeded products
Wasteful spending on advertising
The subliminal advertising fraud
Unintended effects of advertising on third parties
The high cost of distribution: unfair distributor profits
5. Giving Back
Social marketing

Cases
Case 1: Contrasting Different Codes of Ethics
Case 2: Desire, Fulfillment & Happiness: A Different Cultural Perspective
Case 3: The Relationship Between Business Bribery Practices and Government Corruption
Case 4: Five Contemporary Ethical Cases

Worksheet
Corruption-Bribery

Slideshow
The CMA Code of Ethics · Company Ethics in Practice · What Drives our Ethical Behavior · A Personal
Ethics Checklist · Understanding Marketing Ethics · The Source of Our Ethics in Practice · Cross-Cultural
Ethical Problems · Global Cross-Cultural Ethics · The Global Business Ethics Index · Marketing’s Social
Contract · Too Many Products Fail in the Market · Too Many Unneeded Products · Planned Obsolescence
· Products are Too Shoddy (Low Quality) · Products are Too Durable · Wasteful Advertising · Advertising
is Too Powerful · Unintended Advertising Effects · Inefficient Gouging Distribution Systems · Giving
Back

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Module 4: Understanding Consumer Behavior:

Knowledge is power
1. Researching Customers
Types of research
2. Qualitative Consumer Research
Customer visits
Focus group research
3. Survey Consumer Research
Probability sampling
Sampling problems
Online research
4. Cultural and Social Influence
Drivers of cultural change
The effect of income and time pressure on consumer behavior
Word of mouth and social networking
Social networking in business-to-business markets
5. Customer Shopping Behavior
Habitual behavior
Recreational shopping
Complex search and shopping behavior
Professional purchasing behavior
Joint venture buying
6. Consumer Beliefs
7. Customer Satisfaction
Measuring satisfaction
Hyundai’s miracle performance
8. The Consumption Behavior of Businesses
Supply-chain partnering and management
Social networking in business to business marketing

Cases
Case 1: Measuring and Managing Customer Satisfaction
Case 2: Questionnaire Design

Slideshow
Researching Customers · Qualitative Research· Consumer Surveys · Customer Shopping Behavior ·
Cultural and Social Influence · Consumer Beliefs · Types of Survey Questions

Module 5: Segmentation, Targeting and Positioning (STP):

Profitability, desired features, desired channel
1. Customer Focus and Positioning
Focusing on customer profitability
2. Benefit-Feature Segmentation
3. Fitting Features to Benefits Desired
4. Channel/Contact Segmentation
5. 3D Customer Focus
6. 3D Segmentation Process
Step 1: Capture customer purchase histories and measure profitability
Step 2: Profile customer benefit segments
Step 3: Understand how customers use the product or service
Step 4: Sub-Segment by contact channel
7. Organizing Around Customer Segments
Accepting political realities
Geographical segmentation and organization

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Cases
Case 1: Segmenting and Targeting the Electric Car Market
Case 2: Best Practice Benefit Segmentation
Case 3: Profitable Segmentation in Retail Banking
Case 4: National Family ArchivesTM Target Segments
Case 5: The Perils of Presenting a New Segmentation Framework

Worksheet
Customer Profitability Analysis

Slideshow
Segmentation Principles · Segment Variables for Consumer Markets · 3D Customer Focus and
Segmentation · Step by Step Customer Segmentation · Fitting Features to Benefits · The Quality Function
Deployment Matrix for the Pencil · General Product Quality Dimensions · What Happens when you Short
Change on Quality· Understanding Customer Usage · Sub-segment by Contact Segment · A B2B
Segmentation Process · Customer Alchemy · The Competitive Dynamics of Growth Segments · Managing
Market Segments · Global Market Segments

Module 6: Brand Management and Product Development:

Branding by design
1. Brand Management
Brand loyalty
Leveraging brand reputation
Brand mismanagement
Brand name, logo and trademark tactics
2. Product Development Best Practice
Product development as a filtering process
3. Faster and Better Development Processes
Concurrent engineering: a parallel rather than sequential process
Fast prototyping processes
4. Changing Product Development Processes
5. Warranties and Quality Assurance
Following through on claims
6. Dressing the Product: Packaging and Labeling
Point of purchase packaging: the first moment of truth
Packaging to enhance usage utility: the second moment of truth
Better instructions, better performance, higher perceived quality

Cases
Case 1: Cirque du Soleil: “We Reinvent the Circus”
Case 2: Samsung: Building a Great Brand
Case 3: Bank of America: “Keep the Change” Service Design
Case 4: Designing Customer/User Interfaces
Case 5: Key Best Practice Features in the Product Development Process
Case 6: Product Line Analysis: Product Line Extensions
Case 7: Is a Blue Ocean Product Differentiation Strategy Profitable?

Worksheets
Blue Ocean Strategy
Product-line Extension

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Slideshow
Introduction · Blue Ocean Strategy · Red Ocean Strategy · Product Development Strategy · Projects in the
Development Stage · Superior Product Development · Blue Ocean Product Development · Product
Development Best Practice · Expose Designers to Best Design Ideas · Downtown Seoul Product Usability
Lab · 24/7 Engineering Problem Solving · Management Get out of the Way! · So Yesterday! Bureaucratic
Muddling · So Today! Relentless Fast Cycling · Ideas from Everywhere · The Lafley P&G New Way ·
Concurrent Engineering · Dressing Up the Product · Redesign this User Interface for your Grandma ·
What is a Brand? · How is Brand Reputation Created? · Types of Brand Loyalty · Brand Extension:
Leveraging Reputation · The Keys to Successful Brand Extension · Brand Name Logo and Trademark ·
Changing Brand Name Logo · The Color Awareness Test

Module 7: Pricing:
Profitable price setting
1. Understanding Price
2. Price sensitivity
3. Setting the Price of Quality
4. Price Skimming and Price Penetration
When penetration becomes predatory
5. Pricing Tactics
Price shading
Payment terms
Volume discounting
Off-peak demand pricing
Tied pricing
Perceptual pricing
6. Price Promotion Tactics
Promoting a new brand
Promoting a mature brand
The timing of promotions
Getting off price promotions
7. Transfer Pricing

Cases
Case 1: When Does an Increase in Price Increase the Quantity Demanded?
Case 2: Quality Pricing Drug Therapies
Case 3: Price Bundling
Case 4: Responding to a Price Change
Case 5: Defensive Retail Pricing
Case 6: Electric Car Pricing
Case 7: National Family Archivestm Pricing
Case 8: AT&T’s Added-Value Pricing of iPhone Services

Worksheets
Price Setting Analysis
Changing Price Analysis
Island Lady Case
NFA Case Budget

Slideshow
The Big Picture · The Laws of Market Forces · Yield Management Pricing · Price Sensitivity is High
When · Sensitive Price Points · Quality Pricing · Price Skimming · Prestige Pricing · Penetration Pricing ·
Target Return Pricing · Changing Price · How Pricing Tactics Create a Price Range · Price Shading · Price
Bundling · Payment Terms · Off Peak Usage Discounting · Coupons and Rebates · Defensive Pricing ·
Transfer Pricing · Transfer Pricing to Reduce Taxes

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Module 8: Selling:
Sales is all about process
1. Sales Objectives
Typical functions of a field salesforce
Relationship selling processes
Four approaches to relationship selling
Fitting the sales function to customer buying behavior
2. Salesforce Structure
EDI and cross-functional team selling
High growth stresses on salesforce structure
Field salesforce organization
The politics of multiple salesforces
Applying TQM to selling
3. Salesforce Size
How to determine salesforce size based on profit maximization
Assigning salespeople to territories
Field staff support
4. Managing a Sales Rep Force
The fit of the rep’s existing customer base
Reps and customer service problems
5. Managing Salespeople
Recruiting
Selecting salespeople
Training salespeople
Basic behavioral sales training
Specific content training
Mentoring
6. Rewarding the Salesforce
Sales compensation
Quotas
7. Salesforce Leadership Skills
Annual sales conferences
8. Personal Selling Skills
Sales prospecting and trade shows
Qualifying the customer
Qualifying the selling situation
The sales presentation
Adapting presentation to salesperson personality
Handling objections and closing the sale

Cases
Case 1: IBM and its World Class Salesforce
Case 2: The Future of Drug Salespeople
Case 3: Rewarding Salespeople Based on Profitability
Case 4: The New Age of CRM Capability
Case 5: Negotiating With Customers
Case 6: Outsourcing Sales
Case 7: Optimizing Salesforce Size

Worksheets
Optimizing SF Size
Sales Strategy

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Slideshow
Selling is Push Marketing · Marketing is a Lot of selling · Sales Objectives · Four Approaches to
Relationship Selling · Fitting Function to Buyer Behavior · Customer Relationship Management · National
Account Management · Salesforce Territories · How to Determine Salesforce Size · Independent
Manufacturer Sales Reps · Managing Salespeople · Personal Selling Skills · Successful Sales Presentations
· Consumer and Trade Shows.

Module 9: Advertising:
Form follows function
1. Advertising Principles
The “learning affects feelings that affect behavior” explanation
The simple “for sale, try me” explanation
The “changing feelings changes behavior” explanation
The creative brief
2. Where to Place Your Ads
Point of purchase advertising
Newspaper advertising
Magazine advertising
Radio advertising
Television advertising
Internet and digital advertising
3. Media Buying
Minimizing cost-per-thousand of the target audience
Achieving effective reach and frequency
Campaign timing
Counting exposures and clicks
4. Generating Publicity
Buzz marketing
Sponsorship advertising
5. Public Relations Management
6. Direct Advertising

Cases
Case 1: Message Function
Case 2: Cross-Culture Humors and Functionality
Case 3: Comparing Campaign Effectiveness
Case 4: Regional Ad Campaign Analysis
Case 5: What Do You Call this Type of Creative Tactic?
Case 6: Search Engine Optimization

Worksheets
Regional Campaign Analysis
Comparing Campaign GRPs
TV Advertising Effectiveness
Social Site Ad Potential

Slideshow
Advertising as Pull Marketing · Basic Advertising Principles · Without Attention You are Dead ·
Novelty Gets Your Attention · Gets Your Attention! What is the Message? · Point of Purchase
Motion Display · Attention Grabbing but Appropriate? · Attention Grabbing and Appropriate ·
Handsome Face Gets Whose Attention? · Learning-Feeling-Behavior Process · LFB: We are, We
Have · LFB: This is how I Work · LFB: Do you have this Problem? · LFB: This is More of a
Problem than you Think · LFB: We work Better in this Situation · BFL: Behavior-Feelings-
Learning Process · FBL: Feelings-Behavior-Learning Process · FBL: Think Love, Think
Diamonds · FBL: Smile, Like Me · FBL: The Feeling of Speed · FBL: What is he Dreaming of? ·
Managing the Advertising Agency · What is Wrong with this Creative Brief? · Advertising

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Innovation and Evolution · POP (Point of Purchase) Advertising · Television Advertising · TV

Ads are the Funniest by Far · Radio Advertising · Newspaper Advertising · Magazine Advertising
· Outdoor Billboards and Vehicles · Outdoor 3D Advertising · Attention Grabbing but Who are
You? · Weenie Advertising but Cost Effective! · Direct Mail Advertising · Internet Advertising –
Internet Search Advertising · Media Buying and Placement · Campaign Timing · Publicity ·
Public Relations · Sponsorship Advertising · Reinforcing the Association! · Direct Database
Marketing · Direct Marketing Hook · Problems with Direct Marketing · Direct Marketing of
Services · What is the Persuasion Strategy?

Module 10: Distribution:

Go with fit, flow and trust
1. Basic Channel Functions
2. Distribution Systems
Franchising
Mass Distribution
Selective Distribution
3. Channel Fit
4. Distribution Quality Function Deployment
Distribution unreliability management
Order frequency and average inventory carried
Inventory pools
Warehousing tactics
Order taking processes
Transportation processes
Full service freight forwarders
Servicing customer inbound logistics
5. Managing Multiple Channels
6. Retailing

Cases
Case 1: Moving Music
Case 2: Trading Partnership Success and its Bitter Fruits
Case 3: Retail Atmospherics
Case 4: Trading Relationship Analysis
Case 5: Designing Customer Delivery Systems
Case 6: Retail Dashboard Management
Case 7: Trusting Trading Partners: How Trusting Are You?

Worksheets
Margin Analysis
Trading Relationship Analysis
Customer Delivery Logistics
Trading Trust Analysis
Retailing Dashboard

Slideshow
Introduction · Distribution Innovation · Distribution Innovation: Railways · Railways still Dominate ·
Communication Innovation · Transaction Cost and Quality Innovation · Transaction Costs in Trading
Are · Remember Global Trading Theory · Increased Competition Consequences · Fundamental Trading
Channel Activities · Superior Distribution Channels · Partnership Fit: Two Entities · Evaluate the
Partnership Fit · To Become One Competitive Partnership · Partnership Fit · Integrated Distribution
Logistics · Order-Delivery Cycle Reliability · Order Delivery Frequency · Delivery Service
Differentiation · Managing Multiple Channels · Partnership Trust and Profitability · Retailing is About ·
E-Retailing is About · Retail Atmospherics