MARKETING 1

Learning Diary

Tharindi Jayalath

October 2024

Bachelor of Business Administration in International Business

ABSTRACT

Tampereen ammattikorkeakoulu
Tampere University of Applied Sciences
Bachelor of Business Administration in International Business

Tharindi Jayalath
Marketing 1: Learning Diary

October 2024

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1 INTRODUCTION .................................................................................. 5
2 INTRODUCTION TO MARKETING ...................................................... 6
2.1 What is Marketing? ......................................................................... 6
2.1.1 Marketing Fundamentals ...................................................... 6
2.1.2 Market Orientation ................................................................ 6
2.1.3 Marketing Strategies............................................................. 7
3 MARKETING PROCESS AND MODERN MARKETING
PHILOSOPHIES ................................................................................... 8
3.1 Introduction ..................................................................................... 8
3.1.1 Marketing Management Philosophies................................... 8
3.1.2 Understanding the Marketplace and Customer Needs ......... 9
3.1.3 Customer-Driven Marketing Strategy ................................... 9
3.1.4 The Marketing Mix (4 Ps) ................................................... 10
3.1.5 Customer Relationship Management (CRM) ...................... 10
4 UNDERSTANDING THE MARKETPLACE ......................................... 12
4.1 Introduction ................................................................................... 12
4.1.1 Microenvironment ............................................................... 12
4.1.2 Macroenvironment .............................................................. 12
4.2 Managing Marketing Information................................................... 13
4.2.1 Marketing Information Systems (MIS) ................................. 13
4.2.2 Competitive Intelligence ...................................................... 14
4.2.3 Big Data and Customer Insights.......................................... 14
4.3 Market Research........................................................................... 14
4.3.1 Approaches to Research ........................................................... 14
5 UNDERSTANDING CONSUMER AND BUSINESS MARKETS ......... 15
5.1 Introduction ................................................................................... 15
5.2 Understanding Consumer Buyer Behaviour .................................. 15
5.2.1 The Consumer Buying Model .............................................. 15
5.2.2 Factors Affecting Consumer Behaviour ............................... 15
5.2.3 Types of Consumer Buying Behaviour ................................ 16
5.2.4 The Consumer Decision-Making Process ........................... 16
5.3 Understanding Business Markets ................................................. 16
5.3.1 Business-to-Business (B2B) Markets .................................. 16
5.3.2 Business Buyer Behaviour .................................................. 17
5.3.3 Types of Business Buying Situations .................................. 17
5.4 Consumer and Business Buyer Participation ................................ 17
5.4.1 B2C and B2B Social Media Marketing ................................ 17
5.4.2 E-Procurement and Online Purchasing ............................... 17

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6 COMPETITIVE STRATEGIES, SUSTAINABLE MARKETING AND
MARKETING ETHICS ........................................................................ 19
6.1 Introduction ................................................................................... 19
6.2 Competitive Strategies .................................................................. 19
6.2.1 Basics of Competitive Strategies......................................... 19
6.2.2 Competitive Positions .......................................................... 20
6.3 Sustainable Marketing .................................................................. 20
6.3.1 Corporate Strategies for Sustainable Marketing.................. 20
6.3.2 Consumer Actions to Promote Sustainable Marketing .................... 21
6.4 Ethical and Societal Marketing ...................................................... 22
6.4.1 Marketing Ethics.................................................................. 22
6.4.2 Societal Marketing ............................................................... 22

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1 INTRODUCTION

Marketing is essential, not only for connecting a business with its final customers
but also for generating and capturing value. The purpose of this learning diary is
to reflect on topics of Marketing such as market orientation, process of marketing,
understanding marketplace and consumer buying behaviours, competitive mar-
keting strategies and marketing ethics.

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2 INTRODUCTION TO MARKETING

2.1 What is Marketing?

Marketing is the process where a company manages profitable customer rela-

tionships. This involves finding new customers by delivering superior value and
maintaining relationships with current customers by meeting their various needs
and expectations. The steps in the marketing process include understanding the
marketplace, designing a customer-driven marketing strategy, constructing a
marketing mix, building relationships, and capturing value from these relation-
ships.

2.1.1 Marketing Fundamentals

Marketing encompasses creating, communicating, delivering, and exchanging of-

ferings that offer value for customers and stakeholders. As identified, it is a pro-
cess of mutually beneficial exchanges where customer needs are at the heart of
every strategy. The six key principles of marketing emphasize customer orienta-
tion, competition, market heterogeneity, and adaptability. For instance, as much
as companies must pay attention to what the customer wants immediately, they
also must be ready for change with the dynamics of the demands of the market.

2.1.2 Market Orientation

Following Kohli and Jaworski's (1990 definition, market orientation involves an

organization-wide effort to understand and satisfy the needs of the customer. The
three critical components are as follows:
• Customer orientation: Generating superior value for customers
• Competitor orientation: Informed about competitor capabilities
• Inter functional coordination: Integrating all the firm's resources to meet
the customer's needs.

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 2.1.3 Marketing Strategies

• Target Market Segmentation

Segmentation allows a business to focus its effort and resources on spe-
cific groups of clients. For example, a firm selling sports shoes can spe-
cialize in targeting youthful adults who are enthusiastic about keeping fit
by creating energetic and dynamic campaigns that portray the athletes.
Such a method helps an organization reach out to its prospective custom-
ers more effectively.

• Product Differentiation
Differentiation is where a company tries to indicate the unique features of
its product in order to stand out in crowded markets. A smartphone brand
may want to stress better battery life or new augmented reality features
that will attract tech-savvy customers. This way products will be viewed
not as commodities, but as a certain type of solution.

• Social Media Marketing

Social media in the digital era is very useful. As an example, fashion
brands, particularly those that are addressing young adults, use Instagram
and TikTok to connect with target customers using influencers and activity-
based content. Social media allows brand loyalty and a sense of commu-
nity regarding one's products.

• Guerilla Marketing
For smaller companies, the concept of guerrilla marketing means a crea-
tive, inexpensive method of generating buzz. For instance, a coffee shop
could place a pop-up stand on occasion in a park and give away samples
of their offerings to create some memorable experiences among potential
customers.

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3 MARKETING PROCESS AND MODERN MARKETING PHILOSOPHIES

3.1 Introduction

The very process of marketing is framed as a process of understanding custom-

ers' needs, then developing strategies to fill those needs, and finally building long-
term relationships. As core marketing concepts and practical examples illustrate,
companies must give customers top priority while remaining flexible in view of
dynamic changes within the market. Besides, the adoption of new marketing con-
cepts, such as the societal one, means that companies will satisfy not only the
immediate demands of their customers but also contribute to the well-being of
society, thus ensuring a non-destructive business for the future.

3.1.1 Marketing Management Philosophies

There are five key marketing philosophies that help guide a company on how it
carries out its marketing activities:

• Production Concept: The focus is on methods for improving production

and distribution efficiency as a means of reducing costs and thereby ena-
bling the sale of one's products at a lower price than its competitors. Ex-
ample: Low labour costs and mass distribution enable Lenovo and Haier
to dominate the Chinese market.

• Product Concept: Stress unending product quality, performance, and in-

novative enhancement. This is risky, too, as the company might also be
blind to the interests of the customers for a superior solution.

• Selling Concept: Stresses hard-sell techniques and heavy promotional

efforts, especially in the case of unsought goods, such as insurance. The
downside with this approach is that this concept may neglect customer
relationship building in the longer run.

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 • Marketing Concept: A customer-oriented approach; this involves con-
ducting business with the focus of meeting customer needs better than the
competition. Example: Henry Ford made this very clear when he said, "If I
had asked customers what they wanted, they would have said faster
horses."

• Societal Marketing Concept: It balances customer needs against socie-

tal welfare, including sustainable and ethical business operations.

3.1.2 Understanding the Marketplace and Customer Needs

The process of marketing starts by identifying the needs, wants and demands of
a customer. Needs may be physiological, for example food and water; social,
such as the need for belonging; or individual, for example self-expression. Com-
panies design market offerings-products, services, and experiences-to satisfy
these needs. A trap that keeps many marketers from seeing customers' needs is
marketing myopia-a narrow-minded focus on an organization's own products ra-
ther than the customer needs.

Examples of Marketing Myopia:

A company might heavily invest in producing the most advanced air conditioning
units and then completely forget that people just want to have clean, temperature-
controlled air. When some alternative solution that is going to be way more
straightforward or cheap comes up, it can be a recipe for disaster.
A manufacturer of drills may think customers need drill bits, but they need holes.
If there is a better solution to make holes, the customers may leave the drill bit
company.

3.1.3 Customer-Driven Marketing Strategy

After understanding the market, the companies need to design a customer-driven

marketing strategy. It includes:

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 • Market segmentation: It is the process of segmenting the markets into
distinctly identifiable groups, based on demographic, behavioural, or pref-
erence factors.
• Target marketing: The process of choosing those segments which are
the most attractive to serve.
• Value proposition: This is all about positioning the product in a unique
way from competitors in a way that will satisfy the target market.

3.1.4 The Marketing Mix (4 Ps)

The marketing mix is the four controllable elements that the company manages
in its quest to provide value to the customer market.

• Product: Anything the company provides to the market for satisfying cus-
tomer needs.
• Price: The amount to be paid by the customers for buying the product.
• Place: Where the product is available to buy.
• Promotion: It refers to the description of how the company informs its
customers about the value of the product or service through advertising,
public relations, and digital marketing.

This is where the 4 Ps are integrated in creating value both from physical stores
like K-Market and online platforms like Amazon.

3.1.5 Customer Relationship Management (CRM)

Customer relationship management can be described as a firm activity-based

process of building permanent relations with customers by providing superior

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value. The main aim of CRM is to assist firms in ensuring that customers continue
to be loyal because of the ongoing delivery of value through various channels.
The main tools in coming up with developed customer relationships include:

• Loyalty programs such as: K-Plussa, Lidl Plus

• Club marketing programs (e.g., BMW Car Club)
• Customer engagement through digital platforms; that is, customers are di-
rectly involved in shaping brand experiences.

Examples of CRM include:

LEGO Ideas: LEGO allows customers to submit ideas on creating new sets and
vote for them, creating greater engagement and loyalty.

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4 UNDERSTANDING THE MARKETPLACE

4.1 Introduction

The modern marketplace is influenced by several environmental factors. The

marketing of today involves gathering and managing information that emanates
from several sources for customer needs, wants and activities of competitors and
changes occurring in the market to be ascertained and understood. The core as-
pects of the management of marketing will be covered in this section, commenc-
ing with the environment in which marketing functions and ending with the various
ways customer relationships are managed.

4.1.1 Microenvironment

The microenvironment consists of factors that directly affect the ability of an or-
ganization to serve its consumers. These include suppliers, marketing intermedi-
aries, consumers, competitors, and publics. Marketing intermediaries are re-
sellers and financial institutions that help companies in promoting their products.

4.1.2 Macroenvironment

It also includes a wide range of forces within society, including demography, eco-
nomics, technology, and culture. These are forces external to an organization
that substantially impact the marketplace. For instance, a shift in the age structure
or dispersion of income directly influences purchasing power.

• Demographic Change in Marketing

The demographic environment of an aging population, increased urbanization,

and increasingly diverse population has huge ramifications for marketing strate-
gies, which may be continuing to segment into generational groups-like market-
ing to Baby Boomers versus Millennials-and also reach increasingly different
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and specific family structures, such as single parent households.

• The Economic Environment

At the centre of all marketing strategies, lie economic factors, including the con-
sumer's ability and willingness to buy and spend. During economic downturns,
low-price retailers such as dollar stores will see increased sales, whereas the
luxury brands may struggle during this time.

• Natural and Technological Environment

The depletion of natural resources and environmental sustainability are top con-
cerns businesses are facing these days. Besides that, the technological revolu-
tion-to be best manifested by firms such as Airbnb and Uber-opened different
business models and perspectives.

• Political and Social Environment

Government regulations and laws, ethics, and social mores are also strong forces
that shape the way companies do their marketing. For example, laws on product
safety or ethical advertising guide companies in their relations with consumers.

4.2 Managing Marketing Information

4.2.1 Marketing Information Systems (MIS)

MIS refers to a system that provides marketing information by collecting, analys-

ing, and distributing information. These help a company get insight into customer
behaviour and market conditions. Big data increasingly plays a critical role in this
in so far as firms are given the ability to develop detailed customer profiles.

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4.2.2 Competitive Intelligence

Competitive intelligence is organized information gathering and treatment related

to competitors and market trends. Competitive intelligence helps businesses out-
compete others through the monitoring of rival products and strategies.

4.2.3 Big Data and Customer Insights

Big data refers to any acquisition by firms of more informed decisions through the
analysis of large data sets. For example, Netflix uses big data analytics in recom-
mending products and even churning up productions that best suit their custom-
ers' tastes.

4.3 Market Research

4.3.1 Approaches to Research

Marketing research is conducted in various ways, such as observation-based,

survey-based, and experimental. Each one of them provides different insights
into customer motivations and behaviours. Ethnographic research methods
study customers in their natural environment while surveys provide data regard-
ing consumer preferences.

4.3.2 CRM and Marketing Analytics

The most important one is the CRM system, which retains a detailed profile of
customers to help the business retain long-term relationships with its customers.
Applications such as Salesforce and Oracle provide excellent relationship man-
agement and a 360-degree view of customer interactions. Marketing analytics
enhance CRM further by leveraging data from various sources for personalization
in marketing.

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5 UNDERSTANDING CONSUMER AND BUSINESS MARKETS

5.1 Introduction

This section explains how consumer and business markets differ due to various
factors influencing buyer behaviour. Firms should learn the motives of their target
audience for effective engagement. Consumer and business markets apply dif-
ferent ways of marketing products, managing customer relationships using mod-
ern tools such as social media and e-procurement systems.

5.2 Understanding Consumer Buyer Behaviour

5.2.1 The Consumer Buying Model

Consumer purchasing behaviour refers to buying goods and services by individ-

uals and households for personal use. The following model illustrates how a per-
son's buying decisions evolved from the interplay of several influences, cultural,
social, personal, and psychological.

5.2.2 Factors Affecting Consumer Behaviour

There are basically four kinds of factors affecting consumer behaviour:

• Cultural Factors: These deal with the central beliefs and values passed
on through generations.
• Social Factors: The family, reference groups, and social networks deter-
mine attitudes towards products.
• Personal Factors: The buyer's age, lifestyle, occupation, and economic
circumstances will affect his/her preferences.
• Psychological Factors: Motivations, perception, learning, and beliefs
drive buying behaviour.

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5.2.3 Types of Consumer Buying Behaviour

There are several types of consumers buying behaviour depending on the level
of involvement with the purchase and the degree of difference among brands:

• Complex buying behaviour: High involvement and significant brand dif-

ferences (e.g., buying a car).
• Dissonance-reducing behaviour: High involvement but few perceived
differences among brands (e.g., buying carpeting).
• Habitual buying behaviour: Low involvement with little brand difference
(e.g., buying table salt).
• Variety-seeking behaviour: Low involvement but significant brand
switching for variety (e.g., cookies).

5.2.4 The Consumer Decision-Making Process

The process consumers follow includes:

• Need recognition
• Information search
• Evaluation of alternatives
• Purchase decision
• Post-purchase behaviour

5.3 Understanding Business Markets

5.3.1 Business-to-Business (B2B) Markets

B2B markets involve organizations that buy goods and services for production or
resell. Business markets are larger and involve far fewer but larger buyers com-
pared to consumer markets. The demand for business products is derived from
the demand for consumer goods.

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5.3.2 Business Buyer Behaviour

Business buyers are different from consumers in terms of the complexity of the
buying process. Often, business purchases involve many decision makers, are
formalized, and involve a greater level of risk than consumer purchases. B2B
buyers seek to maximize efficiency and value. They tend to rely heavily on pro-
fessional procurement processes.

5.3.3 Types of Business Buying Situations

There are three types of business buying situations:

• Routine rebuy: A straightforward purchase; there is no change in product
specification, price, or terms of purchase.
• Modified rebuy: There is some alteration in product specification, prices,
or terms of purchase.
• New task: High-involvement and high-risk first-time purchase with much
decision-making.

5.4 Consumer and Business Buyer Participation

5.4.1 B2C and B2B Social Media Marketing

Social media sites such as Facebook, LinkedIn, and YouTube allow both B2C
and B2B buyers to engage with companies interactively. Companies use social
media to create brand communities and offer companies the opportunity to obtain
feedback in an effort to enhance customer loyalty. For B2Bs, the social media
sites maintain the relationship with key business customers and offer a means
for publicly held companies to control perceptions of their firms.

5.4.2 E-Procurement and Online Purchasing

E-procurement has changed the face of purchasing within a business, whereby

buyers can access a myriad of suppliers with much ease, reduce costs, and en-
hance speed in procurement. These platforms also allow businesses to conduct

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reverse auctions or manage their procurement via web portals, since this simpli-
fies interactions between the buyer and supplier.

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6 COMPETITIVE STRATEGIES, SUSTAINABLE MARKETING AND MAR-
KETING ETHICS

6.1 Introduction

The modern marketplace is characterized by rapid changes in technology, con-

sumer preference, and environmental awareness. It is in this environment that a
corporation not only has to be competitive but also ecological in its approach to
business strategy. Competitive marketing strategies will position businesses
against rivals, whereas sustainable marketing ensures long-term brand loyalty
based on social and environmental consumer expectations. Competitiveness of
marketing strategies and those directed at sustainability will be discussed in this
section, pointing toward their importance and implementation in different sectors.

6.2 Competitive Strategies

6.2.1 Basics of Competitive Strategies

Competitive strategies are the basic ways in which firms compete in markets. The
strategies include cost leadership, differentiation, and focus strategies. All these
strategies provide a different avenue for the firms to achieve their competitive
advantages.

• Cost Leadership: Firms like Carrefour and Ryanair dominate the market
by always having the lowest production and distribution costs which ena-
ble them to sell their products at a lower price compared to their competi-
tors.
• Differentiation: Companies like Mercedes-Benz and Bang & Olufsen em-
ploy a differentiation strategy where the products put out are highly dis-
tinctive and of high quality, hence attracting premium pricing.

• Focus Strategy: Firms like Ritz-Carlton and Tetra Food focus their target
markets to provide customized services or products to a specific group of
consumers.

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6.2.2 Competitive Positions

Companies play various roles within the marketplace based upon the extent of
their market share and strategic goals:

• Market Leaders: Companies like Coca-Cola and Google increase total

demand through innovation and defend market share by engaging cus-
tomers and continuously developing new products.
• Market Challengers: Companies like PepsiCo and Burger King aggres-
sively pursue market leaders for greater market share by attacking the
leader's strengths.
• Market Followers: These maintain a very conservative approach. Learn-
ing from the leaders after following them, they can perfect their innovations
and maintain stable market shares.
• Market Nichers: These specialize in servicing particular segments that
are not taken care of. Lefty’s for left-handed individuals is an example.

6.3 Sustainable Marketing

6.3.1 Corporate Strategies for Sustainable Marketing

With increased environmental and social awareness, businesses today are fast
embracing the principles of sustainability. Businesses like Unilever have intro-
duced the Sustainable Living Plan that focuses on decreasing environmental
footprints by improving consumer health and well-being. Some of the strategies
towards sustainable marketing include:

• Product Stewardship: Companies develop more products that are easier

to recycle and utilize fewer resources. Green packaging by companies like
Unilever and products that utilize less water is product stewardship.

• Operational Excellence: This is an area where firms provide lean, low-

cost operations to offer value to the consumer. Companies such as
Walmart and IKEA concentrate on operational excellences.

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6.3.2 Consumer Actions to Promote Sustainable Marketing

Consumers are increasingly taking responsibility for sustainable practices too.

Increased consumerism and environmentalism have come with increased con-
cern about the depletion of resources and climate change. Movements such as
these facilitate the ability of consumers to demand products that are Sustainably
and ethically produced.

Environmental Sustainability: Nowadays, the consumer is more and more willing

to choose greener products. Companies will have no choice but to evolve their
business strategy to take such demand into consideration. For instance, McDon-
ald's tried to offer healthier nutrition and use less single-use packaging in its effort
to be more socially responsible.

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6.4 Ethical and Societal Marketing

6.4.1 Marketing Ethics

Consequently, there is increased pressure for companies to assume such ethical

marketing practices in relation to the well-being of society and consumers. Ethical
marketing encompasses product safety, honesty in advertising, and just pricing
strategies. Codes of Ethics by the American Marketing Association have empha-
sized trust, fairness, and transparency in marketing.

6.4.2 Societal Marketing

Social marketing strategies don't just focus on consumer wants but also consider
their long-term interests. A bicycle helmet has low short-term satisfaction but
huge long-term benefits. Firms that implement societal marketing are attempting
to strike a balance between earning profits and being socially responsible.

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