MKTG2005:

Marketing Management

Wanyi Zheng
[email protected]
January 13, 2024

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WELCOME

▪ Welcome to MKTG2005: Marketing Management!

▪ 13-session module

▪ Time: Every Monday 09:30-12:20 @ AAB502

▪ Jan 27: Chinese New Year holiday
▪ March 3: No class
Mid-Term Test (Between Mar 3-7). Details will be confirmed in due course.

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Self-Introduction

Course Introduction

Marketing Management Intro

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I would like to invite you to:
▪ Complete your student information card and submit it on Moodle

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Course Introduction

▪ Recommended Textbook:
Kerin, Roger A. and Hartley, Steven W.
(2022), Marketing, 16th Ed., McGraw-Hill:
New York.
▪ Free access E-book at: HKBU library

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Course Introduction: Additional references
1. Grewal, D. and Levy, M. (2021), Marketing, 8th Ed., McGraw-Hill Education.
2. Kerin, R.A., Theng, L. G., Hartley, S.W., and Rudelius, W. (2015), Marketing in Asia, 3rd
Ed., McGraw-Hill/Irwin.
3. Kotler, P. and Armstrong, G., (2020), Principles of Marketing, 18th Ed., Upper Saddle
River: Prentice-Hall.
4. Boon, L. E. and Kurtz, D. L. (2021), Contemporary Marketing, 19th Ed., Cengage Learning.
5. Selected papers from journals, e.g. Journal of Marketing, Journal of Marketing Research,
Journal of Consumer Research, Journal of Consumer Psychology, Journal of the Academy
of Marketing Science, Harvard Business Review.
6. Self-Learning Platforms: Coursera, edX, YouTube, etc.

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Course Introduction

Components Marks Type

Class Participation 10 Individual

Participation
Oral Presentation 10 Group
Marketing Plan Written Report 20 Group
Mid-term Test 20 Individual
Final Exam 40 Individual
Total 100

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Course Introduction: Class Participation 10%

▪ Come to the class and speak up

▪ Students are expected to actively engage in class discussion, activities, and case analysis.
▪ Please record the number of questions you’ve answered on the sheet provided after class.
▪ Complete class exercise
▪ Turn in class assignment
▪ Attachment 1 for the Rubrics.

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Course Introduction: Oral Presentation 15%

▪ Group Presentation (Starts on February 24, 2025):

▪ Please form a group of 5 during the next class. The same group will be used for the
group project.
▪ Each group needs to present ONE of the four marketing topics in class.
▪ 15 minutes (including Q&A)
▪ All group members are required to give the presentation.
▪ Apart from the group marks, each member will be awarded ONE participation mark.
▪ In addition to the content, the use of audio-visual aids, presentation materials, and
creative formats for oral presentation will also be graded.
▪ The arrangement will be announced in class.
▪ Attachment 3 for the Rubrics.
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Marketing Topics:

Topic 1: Macro-environmental Scanning (Week 6)

Often times when firms can identify and ride on some emerging trends in the macro
business environment, they can come up with successful new products. Propose a new
technological product that is not yet available (or rarely available) in Hong Kong. Explain
why you think it will become successful in Hong Kong.

Topic 2: Product-Market Growth Analysis (Week 8)

Current Products New Products

Current Markets 1. Market penetration 3. Product development

New Markets 1. Market development 3. Diversification

The figure above shows the four product-market expansion strategies. Choose a brand,
discuss its current strategy and suggest the most suitable marketing strategy for its future
development. Please explain your recommendation.
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Topic 3: Market Segmentation (Week 9)
There are many ways that a company can segment the consumer market. Choose a brand,
and (1) identify as many ways (e.g., demographic segmentation; psychographic
segmentation, etc.) the company uses to segment the market; and (2) develop a market
segmentation strategy that targets at a new market segment for the company in the coming
5 years.

Topic 4: Services Marketing (Week 10)

Please apply the extended 3Ps (Physical Environment, Process and People) to a chosen
service brand. Analyse its strength and weakness. Give recommendation on how they can
be improved.

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Course Introduction: Group Project 20%
▪ Imagine that you are a marketing manager of a company and are asked to develop a new
product/ service that is going to be marketed locally in Hong Kong. It should
generate profits and bring benefits to society. (creative and realistic)
▪ Written Assignment Format:
▪ The marketing plan may not exceed 2500 words including references and appendices.
▪ Each page should have at least one-inch margin on each of the four sides, with font
size at 12 and one-and-a-half spacing shall be used.
▪ **Refer to Appendix A (pp 58-72 OR on Moodle) in the text as a reference for the
structure of a marketing plan. Don’t need to copy all the sections from Appendix A.
▪ Submission:
▪ Submit a soft copy to BU Moodle by 12:00noon on April 25 (Friday).
▪ The grading criteria are shown in Attachment 3.
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Course Introduction: Group Project 20%
▪ Your marketing plan is suggested to have the following elements:
 Executive summary (up to 1 page)
 Company description
 Strategic focus: mission, goals (financial and non-financial), core competency and sustainable
competitive advantage
 Situation Analysis: SWOT analysis, environmental scanning, customer analysis, competitor
analysis, etc. (if any)
 Market / Product Focus: marketing / product objectives, target markets, points of difference,
positioning
 Marketing Strategy: product, price, promotion and place
 Reference section if you give citations in the text.
 Appendix – It may be used for supporting materials. Note that the appendix should contain
materials which are useful, but not essential, for the project.
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Course Introduction:
Mid-Term Test 20% & Final Exam 40%

▪ How to best prepare for your exam?

▪ Pay attention in lectures!
▪ Review lecture notes
▪ Please ask if you don’t understand.

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Course Introduction: General Expectation
▪ Please come to class on time!
▪ You are expected to attend lectures and participate actively.
▪ Listen respectfully when others speak, raise your hand if you wish to speak, and
speak with respectful language.
▪ Ask for clarifications if something is unclear and ask for help when you need
assistance.
▪ If you have to miss class or any group work, please inform me or your groupmates.
▪ Academic integrity: If you use any AI software, such as ChatGPT, in any of your
homework or coursework, you must acknowledge it.

Ensure transparency and adherence to ethical standards in your academic work

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Course Introduction: Communications
▪ Class Announcements: All announcements related to the class will be
communicated through Moodle.
▪ Ensure you are subscribed to Moodle to receive emails from the system when an
announcement is posted.
▪ Regularly check the class Moodle page to stay updated.

▪ Email: [email protected]
▪ Please include the course code (MKTG2005) in the subject of all your emails

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Marketing Management Introduction

Q: What do you think marketing is? Use keywords to express your thoughts.
Sentences are not necessary.

Access code:

3615 6351

Notes: All online questions in this course are anonymous.

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CREATING CUSTOMER
RELATIONSHIPS AND
VALUE THROUGH
MARKETING

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 1. An example of Bombas
2. What is marketing
3. Discovering consumer needs
4. Satisfying consumer needs
5. The marketing program
OVERVIEW
➢ An example of 3M
6. How marketing became so important
➢ Evolution of market orientation
➢ Ethics and Social Responsibility in Marketing
➢ Breath and depth of marketing

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Q: What are the most-requested item at homeless shelters?

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1. AN EXAMPLE OF BOMBAS

Randy Goldberg and David Heath

▪ A New York City-based apparel brand

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 ▪ Previously, socks were not Q: When will you buy socks?
viewed as being very
comfortable.

▪ “Replenishment Mode”—
simply buying socks to
replace old ones.

▪ Conduct research and test

prototypes

▪ The most comfortable

socks in the history of feet.

Marketing starts with discovering

consumer needs and wants

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▪ The brand is driven by more than profits.

▪ Latin word: “bumblebee”: bees live in a hive and

▪ Buy-one-give-one model
work together to make their world a better place.
▪ Added a bee as their logo and adopted “Bee
Better” as their motto.
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 As of October 2023, they’ve done $1.3 billion in retail sales.

https://en.wikipedia.org/wiki/Bombas#cite_note-10 25
2. WHAT IS MARKETING?

▪ You are a marketing expert already

➢ Involved in thousands of buying decisions
➢ Involved in some selling decisions as well

▪ Good marketing is NOT easy

➢ Every year, thousands of new products fail.

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2.1 Marketing and Your Career

▪ Marketing affects all individuals, organizations,

industries, countries.

▪ Large organizations, small businesses offer

marketing careers.

▪ You could start a successful business while in

college!

Mark Zuckerberg Elon Musk

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2.2 Marketing: Delivering Value to Customers

Marketing - the activity for creating, communicating, delivering and exchanging

offerings that benefit the organization, its stakeholders, and society at large (AMA
definition of Marketing) • Customers
• Employees
• Suppliers and Distributors
• Investors and Shareholders
• Communities
• Regulatory bodies

▪ Marketing
Marketingisis more than advertising
advertising and personaland personal selling; it also includes
selling?
activities such as market research, product development, and more.
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2.2 Marketing: Delivering Value to Customers

▪ Two key marketing tasks:

1. To discover needs and wants of prospective customers
2. To satisfy these needs and wants.

▪ Exchange is the key to achieve these two tasks.

1. The trading of things of value between a buyer and a seller;
2. Each is better off after the trade.

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 Prospective Marketing seeks to create values
customers may for customers and to develop long
include
term customer relationships.

Organizations – business
Individuals – buying buyers buying products for
products for personal or manufacturing, for
household consumption facilitating office
operations or for resale

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 The Diverse Elements Influencing Marketing Actions

Its mission and objectives determine what business it is in and what goals it seeks

Marketing decisions are

affected by and, in turn, often
have an important impact on
society as a whole

Shape an organization’s marketing actions

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The organization must strike a balance among the differing interests of these groups

It is impossible to simultaneously …

▪ Provide lowest priced and high-quality products to customers

▪ Pay highest prices to suppliers

▪ Pay highest wages to employees

▪ Provide the maximum dividends to shareholders

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The marketing department relates to many people, organizations, and environmental forces

▪ Works with a network of other departments

▪ Develops customer-satisfying products so the organization

can survive and prosper

▪ Facilitates relationships, partnerships, and alliances with

customers, shareholders, suppliers and other organizations

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Q: What is needed for marketing to occur?

Two or more A desire and A way for the

parties with Something to
ability to satisfy parties to exchange
unsatisfied these needs communicate
needs

Consumer Seller
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3. DISCOVERING CONSUMER NEEDS

Google Glass (wearable computer)

Benefits?

Glasses with Internet, camera, phone, speaker,

microphone, touch pad, and heads-up display

√ Technology Enthusiasts; Mass Market ✕

Showstoppers?

$1,500 price, “nerdy” looking, privacy right concerns

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Why Google Glass Failed?

▪ Google lost around $895 million on moonshot projects -

Google Glass

▪ Concerns over Health and Safety; No clear Functioning;

Battery Issues; Price; Language Issues; Heating Issues

▪ One of the biggest reason: It lacked the clarity on why

the product exists. The designers did not clearly define
or validate, what solutions Google Glass would give for
its users, or how customers would use the glasses.

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Needs vs. Wants

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Needs vs. Wants

Needs are states of deprivation - A need occurs when a person feels physiologically
deprived of basic necessities, such as food, clothing, and shelter.

▪ Physical – food, clothing, warmth, safety

▪ Social – belonging and affection

▪ Individual – knowledge and self-expression

Wants are the forms that needs take as they are shaped by knowledge, culture, and
personality; more specific in nature

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3. DISCOVERING CONSUMER NEEDS

▪ 38,000 new products are introduced each year.

40% of new products fail!

▪ Effective marketing research can help -

Customer survey, concept tests, and other forms
of marketing research, crowdsourcing website

▪ Customers may not know or describe what they

need and want – how to ask the right questions

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Marketing does not create need for a product but
shapes a person’s wants.

Discussion Question:

Studying late at night for an exam and being hungry, you

decide to eat a Chocolate Bar. Is this a need or a want?

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What a Market Is Target Market: One or more specific groups
of potential consumers toward which an
organization directs its marketing program.

▪ Potential consumers refer to those people

with both the desire and ability to buy a
specific product.

▪ Potential consumers make up a market.

However, potential consumers may vary in
their needs and wants.

Concentrate resources and deliver more

personalized and effective marketing messages

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4. SATISFYING CONSUMER NEEDS

Organization’s Marketing Department

Satisfy consumer needs

Discover consumer needs Concepts for
products
By designing a marketing
By researching what program that has the right
consumers need combination of the marketing
mix (4Ps)

Information about needs Products, services, ideas

Potential consumers: The market

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 2021 New Batman Steps Counter Generator for Smart Bracelet Watch Pedometer Fitness Sports Tracker Phone Shaker Clock Clocker | Lazada Singapore

What’s this product?

It is a phone cradle!

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 2021 New Batman Steps Counter Generator for Smart Bracelet Watch Pedometer Fitness Sports Tracker Phone Shaker Clock Clocker | Lazada Singapore

But why do people purchase it?

Exercise goal Rewards

A convenient way to boost step count

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The Big Bang Theory (season 8) - Wikipedia

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4. SATISFYING CONSUMER NEEDS

▪ The 4 Ps: Controllable Marketing Mix Factors:

Product, Price, Promotion, Place

▪ Uncontrollable environmental forces affect

marketing decisions:
social, economic, technological, competitive,
regulatory

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What is 4Ps?
▪ Marketing Mix
▪ Developed by marketing professor E. Jerome
McCarthy in the 1960s
▪ The combined tools and methodologies used by
marketers to achieve their marketing objectives.
▪ “controllable factors”: they are under the control
of the marketing department in an organization

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 A good, service, or idea to satisfy the consumers’ needs

A means of communication
What is exchanged
between the seller and buyer to
for the product
promote product awareness.

A means of getting the product to the consumer

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5. THE MARKETING PROGRAM

▪ Customer Value – the unique combination of benefits received by targeted

buyers that includes quality, convenience, on-time delivery, and both before-
sale and after-sale service at a specific price.

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 Value Strategies: Best price; Best service; Best product

Kai Bo: Market Place:

Low-priced, self-service, no-frills concept Premium-Priced, full-service with a wide
range of international brands

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 Relationship Marketing

❑ The hallmark of developing and maintaining

Relationship Marketing
effective customer relationships.

Marketing
❑
Programa personal, ongoing relationship
It involves
between the organization and its individual
Marketing Segment
customers.

❑ Done through “Internet of Everything” and

“Data Analytics”

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 A mere 5% increase in customer retention
Acquiring a new customer can cost five to could result in a substantial 25% to 95%
seven times more than retaining an old one increase in company profitability.

A cost-effective

5-7X investment.

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❑ Marketing Program – a plan that integrates the marketing mix to provide a good, service or
idea to prospective buyers

❑ Marketing Segment - a group of relatively homogeneous prospective buyers that

❑ (1) have common needs and (2) will respond similarly to a marketing program

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Case Study: 3M’S STRATEGY & MARKETING PROGRAM
- Discovering & Satisfying Students’ Study Needs

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Think about adding new items to the Post-it® line

Conduct Research

Understand how college students really study

Hired four students

▪ Observe and question (survey) college students

Discussion
about their studying such as how they -
+
✓ used their textbooks
If you were the students being hired, how would
you✓plan
wrote term paper
to conduct the research? What
✓ tookmight
questions notesyou ask other college students?
✓ reviewed for exams

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1. Move from Ideas to a Marketable Highlighter Product
2. Add the Post-it® Flag Pen (People in offices)
3. Develop a Marketing Program for the Post-it® Flag Highlighter and Pen

Highlighter

Post-it Flag

Post-it Flag Highlighter

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6. HOW MARKETING BECAME SO IMPORTANT

6.1 Evolution of Marketing Orientation

6.2 Ethics and Social Responsibility in Marketing

6.3 Breadth and Depth of Marketing

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6.1 Evolution of Marketing Orientation

Four different market orientations in the history of business

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Production Era (Until the 1920s)
▪ Supply < Demand

▪ Goods were scarce and buyers would accept anything

▪ Focused on Production; goods would ‘sell themselves’ (e.g., 1910 Sanyo radios, bicycle, lamp)

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Sales Era (1920s - 1960s)
▪ Supply > Demand

▪ More products available; difficult to sell - Firms could produce more goods than their
buyers could consume, and competition grew

▪ Hire salespeople to increase sales and to find new buyers for their products

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Marketing Concept Era (from late 1950s)

▪ Shift from firm-oriented production to consumer-orientated research/marketing

▪ Marketing occurs before production, not after

▪ GE launched the concept: integrating marketing into each phase of business

▪ Manufacturers met consumer needs while achieving organization’s goals

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Customer Relationship Era (from 1980s)

▪ Customer Relationship Management (CRM)

✓ Satisfy high consumer expectations

✓ Developing favorable long-term relationships rather than one-off transactional purchases

✓ Use new technologies to increase value for consumers and enhance customer relationships

Virtual Reality

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6.2 Ethics and Social Responsibility in Marketing

▪ Balance the Interests of Different Groups

▪ Ethics: Companies develop codes of ethics, policies, and

guidelines.

▪ Social responsibility: Organizations are accountable to a

larger society.

▪ Societal marketing concept: organizations should satisfy

the needs of consumers in a way that provides for society’s
well-being.

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6.3 Breadth and Depth of Marketing

▪ Who Markets? Every organization

▪ What Is Marketed? Goods, services, and ideas

▪ Who Buys & Uses? Both individuals and organizations

▪ Who Benefits? Consumers who buy, organizations that sell, and society as a whole.

▪ How Do Consumers Benefit? Utility: Benefit or value received by buyers.

• Form, place, time, and possession utilities.

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What is Marketed?

Physical Goods Services Ideas

e.g., Toothpaste, e.g., Airline trips e.g., ideas marketed
Smartphones, Financial advice by Non-Profit Organizations
Computers Art museums or government agencies

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Marketing creates utility

▪ Form Utility – Produce the product or service

▪ Time Utility – Have it available when needed

▪ Place Utility – Have it available where needed

▪ Possession Utility – Make an item easy to purchase

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Summary

Define Define marketing and identify the diverse factors influencing

marketing actions.

Explain Explain how marketing discovers and satisfies consumer needs.

Distinguish between marketing mix elements and environmental

Distinguish
forces.
Explain how organizations build strong customer relationships and
Explain
customer value through marketing.

Describe Describe how today’s customer relationship era differs from prior eras.

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Next Class:
▪ Marketing Strategy (Ch. 2)

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Thank you for your attention!
Q&A

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