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Through essays, you develop your understanding of discipline-specific content, strengthen your critical thinking, and develop your ability to translate that thinking into a persuasive written form.

You will submit a discussion paper of 1000 words (+/- 10%) evaluating how a company creates value for their customers, for the company and for society at large.

In your essay, you must:

·Select one of the follwing three companies:

1.Lyka: https://lyka.com.au/

2.Honey Insurance https://www.honeyinsurance.com/

3.What Ability https://whatability.com.au/

·Consult and reference a minimum of 4 academic sources and 2 non-academic sources. Note: If your essay does NOT meet this requirement then a ZERO grade will be awarded.

·Follow the checklist below carefully for detailed instructions.

STEP 1: TASK UNDERSTANDING

·Read the Instructions and Checklist carefully

·Read the Marking Rubric

oThis will be used to assess your individual essay. Students are strongly advised to consult the marking criteria before writing the essay.

·Analyse the essay question, i.e. content, term, and directive terms

STEP 2: SELECT COMPANY

·Choose a company from the list that you are most interested in.

STEP 3: TOPIC RESEARCH

·Read the Library Search Tips guide in Cadmus Manual

·Identify a minimum of 4 academic sources

oOne of these can be the prescribed textbook for this course

oOther academic sources are research-based books and journal articles written by scholars (i.e., Professors at Universities and PhDs) that you access through the library.

·Identify a minimum of 2 non-academic sources relevant to your selected company

·Survey, skim, and scan to find the relevant parts of your sources

STEP 3: CRITICAL READING

·As you read each resource, jot down notes using this framework:

oThe author’s purpose: why has the author written the material? Are these purposes explicitly stated? Are these implicitly stated?

oThe author’s approach: what are the author’s underlying assumptions? Are these explicitly stated? Is there any proof of bias?

oContent: what is the author’s thesis? How do they develop the thesis? What evidence, examples, or explanations are used?

STEP 4: ESSAY PLAN

The basic structure of a good research essay consists of a clear introduction, followed by the main body of analysis and research and finishes with a conclusion which summarises the key points.

·Plan your essay using this structure:

·Introduction (approx. 10% of word count)

oBrief background of organisation, explaining how the company is creating customer value and why value creation is important to the company.

oThesis statement. It is essential that you state your argument or point of view clearly and directly in the introduction. Do not leave this until the conclusion.

oProvide a roadmap. You must tell the reader what you are doing and in what order in subsequent paragraphs of the essay.

oScope. If relevant: narrow down your essay’s focus by outlining what you won’t be covering in your analysis. This helps to manage your marker’s expectations.

· Body:

One of the hallmarks of a good essay is that it demonstrates clarity of thought. You need to identify different value-related issues and discuss them in a logical manner, organise materials into a coherent structure for the essay, and show that you can make important distinctions and offer relevant insights.

Hence, this section of the essay must be organised clearly and logically so that your argument is developed step by step.

·The main body must use concise paragraphing that demonstrates:

oConcept exploration: Clear identification, definition and explanation of value creation marketing concept using scholarly research. Accurate application of relevant company specific example.

oApplication and reasoning: analysis and integration of value creation by the chosen company.

oTheory and argument: Application and reasoning should follow logical and relevant arguments. Incorporate critical theoretical ideas, facts.

oImplications: Think along the lines of outcomes. Discuss business, societal, sustainability implications with clear outline of relevant performance outcomes.

·Conclusion: should be a summary rather than a repetition. You need to make it clear to the reader how you have answered the question, without restating the whole essay all over again.

·Reference List: include a list of all references that you cited

STEP 5: WRITE ESSAY

·Building on your plan, write your essay. Things to remember:

oClear writing: use short simple sentences and familiar terms

oObjective writing: be unbiased and unemotional, presenting facts or evidence for your argument

oAccurate writing: present accurate and complete information

·The assignment must be of 1000 word (+/- 10%). Penalty applies for exceeding word count limits (see Subject Guide for penalties). Your word count excludes your in-text citations and reference list.

oPlease make a word count declaration at the beginning of your essay as to the total word count of what you have written (less the above exclusions). For example, “Word count: 1,032 words”

·It is important that you give attention to spelling, grammar, and punctuation to avoid ambiguity and confusion.

Unformatted Attachment Preview

LECTURE 2A: CONSUMER BEHAVIOUR AND CONSUMER CULTURE
PRINCIPLES OF
MARKETING
Eugene Skewes
[email protected]
https://www.linkedin.com/in/eugene-skewes
I would like to acknowledge the Wurundjeri People and their Elders past, present, and emerging, and extend that
respect to any First Nations people who are present today. I acknowledge that Aboriginal sovereignty has not been
ceded.
Why is it so important to understand a consumer’s
behaviour?
Assessment
PRE-TUTORIAL
ONLINE ACTIVITY
(5%)
RESEARCH
COMPONENT
PARTICIPATION (4X
30 MINUTE
STUDIES)
OPTION TO REQUEST
ALTERNATIVE ASSIGNMENT
(5%)
Due: Throughout the semester
via Canvas (Weeks 1-12)
Submit 1pm the day of the tute
Must ATTEND & PARTICIPATE in the tutorial
Submit: Cadmus
Due: Throughout the
semester via SONA
Look for the MARKETING studies
You will be emailed your SONA log
in details
In-person/online
Assessment (cont.)
Groups will be formed in Week 2b
Group contract is due in Week 3a
INDIVIDUAL ESSAY
(10%)
1,000 WORDS
GROUP
ASSIGNMENT
(20%)
2,000 WORDS
2-4 STUDENTS
MAY BE DONE INDIVIDUALLY
UPON REQUEST
Due: 11pm
st
Sunday 21
January (Week 3b)
Due: 11pm Wednesday
th
7 February
(Week 6a)
Submit: Cadmus
Submit: Canvas
Assignment 1: Discussion paper
HOW A COMPANY OR BRAND
CREATES VALUE FOR THEIR
CUSTOMERS, FOR THE
COMPANY, AND FOR THE
SOCIETY AT LARGE
+
SELECT ONE OF THE
THREE COMPANIES
FROM THE LIST:
FIND ARTICLES/REPORTS
ABOUT THE
COMPANY/COMPETITORS/
INDUSTRY
+
1.Lyka: https://lyka.com.au/
2.Honey Insurance
https://www.honeyinsurance.com/
3.What Ability

HOME

These will focus on the company, competitors or
industry (not theory) (minimum of two)
FIND ACADEMIC
JOURNAL ARTICLES
ABOUT THIS
CONCEPT
These can be from any year and they will have
nothing to do with your brand/company/product. It
is just about the theory (minimum of four)
Assessment (cont.)
END OF SEMESTER
EXAM
(60%)
2 HOURS
During the exam period: Time and
date to be advised
On campus exam (no exceptions)
Submit: Cadmus
RIGHT NOW…
The importance of
understanding why
consumers behave they
way they do
Top 8 responses from the 14
(Most want to see more of in lectures)
What will we achieve in this session?
• Introduce a hierarchical model of consumer behaviour
• Investigate some of the key processes that lead to the
making of a purchase decision
• Consider some of the contextual factors that influence the
way consumers behave
Why study consumer behaviour?
• Understand how consumers choose products
• Identify target markets and segments
• Identifying unmet (latent) needs
• Understand how consumers perceive brands and
stores
• Discover how attitudes can be changed
• Identify opportunities for value creation
Rational decision-making model
• Rational: characterised by
making consistent, valuemaximising choice within
specified constraints
• A decision-making model that
describes how individuals
should behave in order to
maximise some outcome
Rational decisionmaking model (cont.)
1. Define the problem
2. Identify the decision criteria
3. Allocate weights to the
criteria
4. Develop the alternatives
5. Evaluate the alternatives
6. Select the best alternative
Bounded rationality
• A process of making decisions by constructing simplified
models that extract the essential features from problems
without capturing all their complexity
• Because the human mind cannot formulate and solve
complex problems with full rationality, we operate
within the confines of bounded rationality
• Our limited information-processing capability makes it
impossible to assimilate all the information necessary to
optimise
GROUP ACTIVITY
WHAT ARE SOME
REASONS THAT
CONSUMERS’
DECISION MAKING
IS BOUNDED?
Improved understanding of
consumer behaviour
• A more realistic view…
• People are often irrational
(e.g. bounded rationality)
• Consumers face incomplete
and asymmetric information
• People frequently satisfice
• Transactions do not occur in
isolation
A model of consumer behaviour
ENVIRONMENT
Marketing Stimuli
• Product
• Price
• Place
• Promotion
Other
• Economic
• Technological
• Social
• Cultural
Factors Influencing
Consumer Behaviour
• Cultural
• Social
• Personal
• Psychological
Understanding this model of
consumer behaviour will be
very helpful in the exam
Knowledge related to the exam
The consumer decision-making process
NEED RECOGNITION &
PROBLEM AWARENESS
INFORMATION SEARCH
EVALUATION OF ALTERNATIVES
If you have a question on the exam that related
to how consumers are making their decisions,
be sure to consider which of these steps are
important and how marketers are approaching
the relevant steps.
PURCHASE
POST-PURCHASE EVALUATION
Assessment tips, how to approach exam questions and how to excel in assignments
Stage 1: Need recognition
NEED RECOGNITION
• Discrepancy between a desired state and an actual state that is sufficient to activate the decision process
• Marketing can stimulate problem/need recognition
Purchase & usage motives
Negatively originated
(informational)
motives
Positively originated
(transformational)
motives
Problem removal
Sensory gratification
Problem avoidance
Intellectual
stimulation or
mastery
Incomplete
satisfaction
Social approval
Normal depletion
Maslow’s hierarchy of needs
Explain how concepts were generated
NEED RECOGNITION
Case studies and practical exams / Real life examples
Passive versus active consumption stages
NEED RECOGNITION
Stage 2: Information search
INFORMATION SEARCH
• Effort directed toward obtaining data or information related to
the purchase under consideration
• Extensive of the search depends on:
• Product attributes (SEC: search, experience, credence)
• Involvement and memory
• Expertise and experience (including vicarious experience)
• Purchase situation
Stage 2: Information search: Involvement
INFORMATION SEARCH
• Involvement: the perceived relevance of the product to the
consumer based on their inherent needs, values, and interests
• Functional risk:“What if it doesn’t work?”
• Financial risk: “What if I waste my money buying it?”
• Social risk: “What will others think of my purchase?”
• Physical risk: “What if it injures me or others?”
• Obsolescence risk: “What if it quickly becomes outdated?”
High vs low involvement products
INFORMATION SEARCH
How do Aussies buy televisions?
How do Aussies buy televisions?
How do Aussies buy televisions?
How do Aussies buy televisions?
How do Aussies buy televisions?
Stage 3: Alternative evaluation: Evoked
set
• Evaluation criteria:
objective and
subjective
• Evoked set: mental
list of acceptable
brands
EVALUATION OF
ALTERNATIVES
How do Aussies buy televisions?
It is costly to compare
Total set
Awareness
set
EVALUATION OF
ALTERNATIVES
Stage 3: Alternative evaluation: Heuristics
EVALUATION OF
ALTERNATIVES
• Heuristics: mental shortcut. Rules
consumer employ to simplify the
decision-making process
• Satisficing: a situation where
people seek solutions or accept
choices or judgements that are
“good enough” for their
purposes (rather than an
optimal solution)
https://www.beeswrap.com/
• Problem: You (consumers) are polluting the environment by using
regular food wrap.
• Marketer: ‘we provide you with a convenient solution’
Case studies and practical exams / Real life examples
Stage 4: Purchase decision
• Purchase decision = buy the
preferred brand (identification
of the seller)
• Attitudes of others
• Unexpected situational factors
• Product trial: exploratory phase
in consumer behaviour
PURCHASE DECISION
Stage 4: Purchase decision (cont.)
Unexpected situational factors
PURCHASE DECISION
Decision > action!
PURCHASE DECISION
Stage 5: Post-purchase behaviour
POST-PURCHASE BEHAVIOUR
• Consumers evaluate the products’ performance in the light of their own
expectations (which change over time):
• Dissatisfaction: the product’s performance does not match the buyer’s
expectations (negative disconfirmation)
• Satisfaction: the product’s performance matches the buyer’s expectations
(neutral feeling)
• Delight: the product’s performance exceeds the buyer’s expectations
(positive confirmation)
• Cognitive dissonance: the buyer is unsure of the product performance
relative to his or her expectations
Stage 5: Post-purchase behaviour: Cognitive
dissonance
• Feelings of post-purchase
psychological tension or anxiety
that results from an imbalance
among an individual’s knowledge,
beliefs, and attitudes after an
action or decision is taken
• Buyer discomfort: “Did I make
the right/correct choice?”
POST-PURCHASE BEHAVIOUR
POST-PURCHASE BEHAVIOUR
Stage 5: Postpurchase behaviour
• Usage
• Information search
• Satisfaction/dissatisfacti
on
• Word-of-mouth
• Disposal
Stage 5: Post-purchase behaviour
• Repeat purchase:
• Resulting from a positive experience
• Monogamous loyalty: 100% loyal to a
brand
• Polygamous loyalty: brand switcher
• Increasing perceived switching costs
• Inertia/habit
POST-PURCHASE BEHAVIOUR
Consumer decision-making in context: Influences
1. Reference group influence and social networks
2. Situational factors
3. Personal traits
4. Culture and socioeconomic factors
5. Marketing mix
Reference groups &
interpersonal influence
• Family and consumer socialisation
• Normative reference groups:
e.g. parents, siblings, teachers,
peers, associates, friends
• Comparative reference groups:
e.g. celebrities, heroes >
aspirational groups
SOCIAL FACTORS
CASE STUDY DISCUSSION
MAC VS PC ADS
Apple has successfully leveraged reference
groups to influence consumer behavior. The
“mac vs. PC” advertising campaign is a notable
example. The campaign featured two reference
groups: the cool, casual, and creative mac user,
and the nerdy, uncool, and boring PC user. By
associating the mac with a desirable reference
group, apple effectively influenced consumer
behavior by creating a want or desire to be part
of the “cool” group, leading to an increase in
mac sales and a shift in consumer perceptions.
Do you think this campaign would still work
today? Why/why not?

Case studies discussions
Reference groups & interpersonal influence
(cont.)
SOCIAL FACTORS
• Reference group influence will be greater when they are
• Credible
• Attractive
• Powerful
Example: Medical
professionals
SOCIAL FACTORS
Example: Sports stars
SOCIAL FACTORS
Social roles
SOCIAL FACTORS
Social roles (cont.)
SOCIAL FACTORS
Personal traits
• Age and life-
cycle stage
• Occupation
• Economic
situation
• Lifestyle
INDIVIDUAL FACTORS
Personal traits
INDIVIDUAL FACTORS
• Age and life-
cycle stage
• Occupation
• Economic
situation
• Lifestyle
Lecturer speaking from personal experience
Personal traits (cont.)
INDIVIDUAL FACTORS
• Attitudes: a person’s consistently favourable or unfavourable
evaluations, feelings, and tendencies towards an object or idea
• Cognitive (beliefs, thoughts, and attributes) formed through
experiences and observations > comparison to others; logical
• Affective (feelings, emotions) based on personal judgment >
positive = like, negative = dislike, neutral = indifference or ‘meh’ >
strong feelings = strong attitudes
• Conative/behaviour (how we act or would act should the situation
arise)
INDIVIDUAL FACTORS
Attitudes
•
Imagin you had the following
question in one of your
assignments or exam
Explain how the Mac vs PC advertising campaign by
Apple targeted consumers’ attitudes, incorporating
the cognitive, affective, and conative components.
Provide examples to illustrate your understanding of
each component.
•
Below are some key aspects
needed in a good quality response
Cognitive Component: Discuss how the “Mac vs. PC” campaign influenced
consumers’ thoughts and beliefs about the two brands. Provide specific
examples of how the ads portrayed Mac users as creative and trendy, while
depicting PC users as nerdy and uncool.
Affective Component: Explain how the campaign targeted consumers’
emotions and feelings. Provide examples of how the ads aimed to evoke
positive emotions in consumers and create a strong emotional connection
with the Mac brand, such as using humor and wit to make the Mac more
likable and relatable.
Conative Component: Describe how the campaign aimed to influence
consumers’ behavior and intentions. Provide specific examples of how the
ads sought to drive consumers to act in favor of the Mac by creating a desire
to be part of the “cool” group associated with Mac users, ultimately
influencing their purchase decisions and brand loyalty.
Responses to essay and exam style questions rather than analysis
Situational factors
• Purchase reason: pleasure? Emergency? Gift? Convenience?
• Surroundings: layout, music, lighting, smells
• Time constraints/situation: time of day, time of year,
whether you are a morning person, time starved
• Consumer’s mood:
Cultural and socioeconomic factors
CULTURAL FACTORS
• Cultural norms: the standards we live by > shared expectations and rules that
guide the behaviour of people within social groups
• Learned from and reinforced by parents, friends, teachers, society
• Folkways (conventions, customs): standards of behaviour that are socially
approved but not morally significant
• Mores: norms of morality > breaking mores offends most people of a culture
(e.g. when is it okay to wear a swimsuit/bathers?)
• Taboos: a culture absolutely forbids them
• Laws: formal body of rules enacted by the state and backed by the power of the
state (taboos are enacted into law but not all mores are)
Going against cultural norms
CULTURAL FACTORS
Customer Journey Maps

Feedback Implemented
• Case studies and practical exams
• Knowledge related to the exam
• Case study discussions
• Assessment tips, how to approach exam questions and how to excel
in assignments
• Real life examples
• Responses to essay and exam style questions rather than analysis
• Explanation of how concepts were generated
• Lecturer speaking from personal experience
Please continue to provide feedback on how the lectures can be
more valuable for you.
Recap
• Consumer behaviour is
incredibly complex but we can
break it down to some of its
components
• Understanding consumer
motives, information
research, and decisionmaking processes helps the
marketer respond to, and
influence, consumer
preferences
Recap (cont.)
• Encouraging a product trial is an important
objective for firms
• Consumers are at their most vulnerable
once they have made a decision to
purchase (cognitive dissonance); this is
where marketers can help build satisfaction
and loyalty
• Context has a powerful influence over
consumer behaviour; managing the
contextual variables (to the extent that this
is possible) is also the marketer’s
responsibility
Readings…
Required: Textbook
Recommended: Articles
• Week 2a:
• Chapters 3 and 5
• Martin-Woodhead (2021)
• Week 2b
• Chapters 4
Next time…
Marketing strategy and market research
Submit your pre-tutorial online activity by 1pm of on the day of the tutorial
WEEK 1: LECTURE 1: COURSE INTRODUCTION: UNDERSTANDING
MARKETING & VALUE
PRINCIPLES OF
MARKETING
Eugene Skewes
[email protected]
https://www.linkedin.com/in/eugene-skewes
I would like to acknowledge the Wurundjeri People and their Elders past, present, and emerging, and extend that
respect to any First Nations people who are present today. I acknowledge that Aboriginal sovereignty has not been
ceded.
What do you think marketing is all about?
Marketing is like an iceberg…
Branding and
marketing
communications
Everything else
RIGHT NOW…
We learn about the
subject & the importance
of value creation!
Subject leader
A bit about me
My hobbies:
• Cricket,
• Rock climbing,
• Home renovations,
• Travel
Subject leader
Qualifications and teaching experience:
•Bachelor Business (Marketing)
•Master Management
•Grad Cert in University Teaching
•Teaching for 12 years across various universities in Melbourne
Industry experience:
•Bendigo Bank
•Rainbow Shores Resort
•Protiviti Consulting
•Entrepreneur
•Consulting in learning and teaching
•Contact:
•[email protected]
•Consultation by appointment
Your teaching team: Tutors
Dr. David Fiorovanti
Tute group 3, Tuesday and
Thursdays 3:15pm in room
2014 The Spot
Azra Bakric-Kolar
Tute group 4, Tuesday and
Thursdays 1pm on 2015 The Spot
AND Tute group 2, Tuesday and
Thursdays 2.15pm on 2015 The Spot
AND Tute group 6, Tuesday and
Thursdays 3.15pm on 2015 The Spot
Eugene Skewes
Tute group 1, Tuesday
and Thursdays 1pm in
room 2014 The Spot
Have a question? Go to the Discussions board first
• Discussion boards as first stop
1. Identify the proper thread
2. Search existing answers
3. Post your question
4. Answers will be posted in 48 hours or less
• Save e-mails for personal issues (e.g. special
consideration, career-related queries)
• If you send us an email that is meant for the
Discussions board, you will be asked to post it
there.
Who to contact if you have questions
Does your question
(and the answer) only
concern you?
e.g. illness
Extension requests need
to be made via Subject
Eugene
Guide & Extension
Requests
Your tutor
Specific questions
Is your question (and the
answer) also relevant to
other students?
e.g. assessments
Discussion board
Find the relevant section
Your tutor
Ask the question during
your tutorial
STOP1
Enrolment questions (including swapping tutorials)
Look for Q&A that have
already been published
Do not wait until after
class or ask via email
Special consideration requests
(we are not allowed to grant these ourselves)
If the Q&A is not present,
then post your question
and it will be answered
How you will learn
Live lectures
The lectures will be conducted on Tuesdays and
Thursdays: 10:00am – 12:00pm
PAR-115-L1-102-Latham Theatre (165)
This is in the Richmond Barry building
1.
2.
3.
4.
Objectives:
Learn key concepts, connect these to examples
Recap concepts, points of confusion
Address questions (at the end of the lecture)
Engage with lecturer and fellow students
Tutorials
On-campus
Start in Week 1
Connect the theory to a task
(company/brand/product)
Connect with your fellow
students!
Textbook
Armstrong et al. (2021),
Principles of Marketing (8th ed)
eBook or physical
Library will have access to both
The chapters from the
textbook (and other readings)
that you are required to read
each week are outlined in the
Subject Guide
How to study this subject
Weekly pre-tutorial work
via Cadmus
e.g. case study reading,
survey, analysis
Lecture attendance/listen to
the lecture. Take notes
Lecture
Tutorial
Participate in tutorial
discussions, take notes
Pretutorial
Extra
readings
Textbook
Textbook and other
recommended readings
ACTIVITY
WHAT DO YOU
WANT TO SEE
MORE OF IN
LECTURES?
Learning about marketing
• Observe your surroundings
• Think about the products you use
• Consider which brands you like and dislike (and why!)
• Check marketing-related news often:
• www.marketingmag.com.au (Marketing News)
• www.ama.org
• Forbes.com (Consumer, Industry, Retail)
• Business sections on magazines and newspapers
• Academic research: theconversation.com
• HBR Ideacast podcast
• Gruen on ABC iView
Assessment
PRE-TUTORIAL
ONLINE ACTIVITY
(5%)
RESEARCH
COMPONENT
PARTICIPATION (4X
30 MINUTE
STUDIES)
OPTION TO REQUEST
ALTERNATIVE ASSIGNMENT
(5%)
Due: Throughout the semester
via Canvas (Weeks 1-12)
Submit 1pm the day of the tute
Must ATTEND & PARTICIPATE in the tutorial
Submit: Cadmus
Due: Throughout the
semester via SONA
Look for the MARKETING studies
You will be emailed your SONA log
in details
In-person/online
Assessment (cont.)
Groups will be formed in Week 2b
Group contract is due in Week 3a
INDIVIDUAL ESSAY
(10%)
1,000 WORDS
ARTICLE NEEDS TO BE FROM
JANUARY 2023 ONWARDS
GROUP
ASSIGNMENT
(20%)
2,000 WORDS
2-4 STUDENTS
MAY BE DONE INDIVIDUALLY
UPON REQUEST
Due: 11pm
st
Sunday 21
January (Week 3b)
Due: 11pm Wednesday
th
7 February
(Week 6a)
Submit: Cadmus
Submit: Canvas
Assessment (cont.)
END OF SEMESTER
EXAM
(60%)
2 HOURS
During the exam period: Time and
date to be advised
On campus exam (no exceptions)
Submit: Cadmus
Lecture + tutorial schedule
Principles of Marketing is like…
Principles of Marketing is like…
Active learning
Pre-tutorial activities – Lectures – Discussion boards – Drop-in Q&A sessions – Assignments – Tutorials
Subject objectives
• Comprehension of basic theories and models within
marketing
• Analyse and critically evaluate marketing practice (explain
why some marketing activities are more successful than
others)
• Be capable of applying theories and problems presented in
case studies and assignments
What is a theory?
• A set of hypotheses related
by logical arguments to
explain and predict a wide
variety of connected
phenomena in general terms
What will we achieve in this session?
• Find out what marketing actually is
• Understand how our view of marketing has evolved
• Introduce you to the marketer’s ‘toolkit’
• Understand why creating value for customers is the most
important goal for firms
• Outline a value framework
• Find out what the market-oriented firm looks like
ACTIVITY
WHAT IS
MARKETING?
What is…
“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 Marketing Association (2007)
What is marketing?
“Marketing is not a specialised
activity, It is the whole business
seen from the point of view of
its final result, that is, from the
customer’s point of view.”
– Peter Drucker, 1909-2005
Marketing is three integrated processes
DIAGNOSIS
STRATEGY
TACTICS
Source: https://www.marketingweek.com/mark-ritson/
Core concepts
and processes
Stages of marketing evolution
Era
Time
Description
Mass production era
1860s-1920s
Mass produced at a low cost. One product. “If produced, someone
will buy”
Sales
1920s-1940s
Competition increased. Persuasion needed. Profit and price focused
rather than quality of the products or customer focused.
1940s-1960s
Refinement. Advertising, sales, promotions, and anything marketing
related all grouped together.
1960s-1990s
Guide a company’s direction. All employees involved. “Customer is
king” and becomes main focus. Distribution and pricing strategies
are refined.
1990s-2010
Focus shifts to creating and maintaining long-term relationships
with customers with the main goal of fostering customer loyalty.
2010-present
Focus shifts to connecting with customers in real-time. The customer
is in the “driving seat”.
Marketing
department
Marketing company
Relationship
marketing
Societal/mobile
marketing
Marketing orientations through time
…to a value delivery sequence…
Choose the value
Provide the value
Communicate the value
Customer value (CV) &
needs analysis
Organisational value
creation
Build internal &
external understaning
of:
Market segmentation &
target markets
Product & process
(re)design
– CV framework
Value positioning vs.
competitiors
Customer-firm cocreation
– CV position vs.
competitors
A shift in focus…
How is marketing era/orientation
• Marketing orientation is ultimately concerned with making
the right decisions when implementing the marketing mix,
in relation to a pre-defined market segment
• 4Ps
• Product, place, price, and promotion
Marketing myopia
• Short sightedness by
business firms causing
management to define their
business (and hence their
competitors and market
opportunities) too narrowly
For example:
Societal marketing era: Make money and act ethically
Benefits to customers, employees,
shareholders, and communities
A customers doesn’t just buy a laptop…
Customer value
creation
“The customer rarely buys what
the firm thinks its selling
[them].”
– Peter Drucker, 1909-2005
What is customer value?
Benefit
Value
All tangible and intangible
desirable attributes of the
product consumed over the
life of its ownership
=
Cost
All tangible and intangible
costs incurred by the
customer over the life of
ownership
What is customer
value? (cont.)
The GOAL: To create superior
perceived value (where the
customer perceives higher
value than any competing
alternative)
Value creation &
delivery
• Value creation is not a
‘shotgun approach’
(appealing to a wide market
of potential customers)
• It requires tradeoffs:
• What elements should we
offer the customer? Which
elements should we deny
them?
Marketing toolkit for
creating &
communicating value
• Product
• Place
• Price
• Promotion
Product
• New product & service
development
• Value co-creation
• Building the brand
• The augmented product
• Service quality
Place
• Selection of channels &
channel partners
• Finding complementarities
between routes to market
• Design and implementation
of channel controls
• Design of promotional plan
for channels
Price
• Value-based pricing (prices
are based mostly on
consumers’ perceived value
of the product or service)
• A consumer-based view of
pricing (how much each
customer is wiling to pay)
• Pricing tactics
Promotion
• Determination of promotion
objectives
• Development of
communications content &
creativity
• Selection of media
• Design of control/evaluation
methodology
• Timing
Understanding customers’
definition of value
• Customers define benefits
not in terms of product and
service features, but in terms
of results delivered:
• Improved performance
• Improved productivity
• Improved experience
• Reduced risk
Tools for creating value through benefits
• Product
• Features
• Performance
• Conformance
• Support services
• Distribution
• Installation
• Merchandising
• Training
• Reliability
• Maintenance
• Packaging
• Consulting
• Design
• Information management
Tools for creating value through benefits (cont.)
• Relationship management
• Competence
• Courtesy
• Credibility
• Reliability
• Responsiveness
• Communication
• Image
• Company reputation
• Brand reputation
• Atmosphere
• Promotion
• Media/publicity
Understanding customers’
definition of value
• Customers define costs not in terms of
purchase price, but in terms of total
tangible and intangible costs/savings
over the relationship life cycle:
• Less money
• Less time
• Less psychic cost (social costs; added
stress or losses to quality of life
associated with having to think about a
transaction)
• Less effort
Tools for creating value through costs
• Search cost
• Product availability
• Information available and easy
to understand
• Relationship management:
• Competence
• Responsiveness
• Credibility
• Acquisition cost
• Price level
• Timing
• Order placement and
fulfilment process
• Allowances
• Incentives
Tools for creating value through costs (cont.)
• Set-up cost
• Switching costs (economic
and psychological)
• Understanding how to use
the product
• Installation
• Maintenance cost
• Service costs (complexity;
reliability; availability)
• Repair costs
• Relationship management
• Systems management
The Value Proposition Canvas
• Customer-perceived value (CPV)
is based on the difference
between the benefits customers
get and costs they assume for
different choices
• A Value Proposition consists of
the whole cluster of benefits the
company promises to deliver,
and how it plans to reduce costs
for consumers
Readings online:
Strategyzer. (2018, January 1). Value Proposition Canvas.
Strategyzer; Strategyzer.
https://www.strategyzer.com/library/the-value-proposition-canvas
The Value Proposition Canvas

The Value
Proposition
Canvas
Example
Source: designabetterbusiness.com
Customer Value Framework
Symbolic /
Expressive
Hedonic /
Experiential
Creating customer value leads to (long-term) firm
value
Increased customer
loyalty
Increased volume
Increased purchases and/or Increased cash flow
& experience
& referrals
Premium prices
Reduced costs
FIRM VALUE
MARGIN * VOLUME / INVESTMENT
CUSTOMER VALUE
TOTAL LIFE CYCLE BENEFITS /
TOTAL LIFE CYCLE COSTS
Needs, wants, and desires
Need: any difference
between a consumer’s actual
state and some ideal or
desired state (it can be
recognised or latent)
Want: desire to satisfy needs
in specific ways that are
culturally and socially
influenced
Desire:
Overpowering urges that
dominate ones’ thoughts, feelings,
and actions.
Desires cannot be controlled, rather
they take control of the individual.
Needs
Recap
• Marketing is an approach to
doing business and not a
specialised function or
department within the firm
• The customer is the starting
point for everything we do in
business
• Marketers have a range of
powerful tools to create value
for, and influence, customers
Readings…
Required: Textbook
Recommended: Articles
• Week 1a / Lecture 1a:
• Chapter 1
• Smith and Colgate
• Week 1b / Lecture 1b:
• Chapter 2
Next time… On campus lecture!
Relationship marketing and customer loyalty
Submit your pre-tutorial online activity BEFORE the start of your tutorial
WEEK 1B: LECTURE 1B: RELATIONSHIP MARKETING AND CUSTOMER
LOYALTY
PRINCIPLES OF
MARKETING
Eugene Skewes
[email protected]
https://www.linkedin.com/in/eugene-skewes
I would like to acknowledge the Wurundjeri People and their Elders past, present, and emerging, and extend that
respect to any First Nations people who are present today. I acknowledge that Aboriginal sovereignty has not been
ceded.
Assessment
PRE-TUTORIAL
ONLINE ACTIVITY
(5%)
RESEARCH
COMPONENT
PARTICIPATION (4X
30 MINUTE
STUDIES)
OPTION TO REQUEST
ALTERNATIVE ASSIGNMENT
(5%)
Due: Throughout the semester
via Canvas (Weeks 1-12)
Submit 1pm the day of the tute
Must ATTEND & PARTICIPATE in the tutorial
Submit: Cadmus
Due: Throughout the
semester via SONA
Look for the MARKETING studies
You will be emailed your SONA log
in details
In-person/online
Assessment (cont.)
Groups will be formed in Week 2b
Group contract is due in Week 3a
INDIVIDUAL ESSAY
(10%)
1,000 WORDS
ARTICLE NEEDS TO BE FROM
JANUARY 2023 ONWARDS
GROUP
ASSIGNMENT
(20%)
2,000 WORDS
2-4 STUDENTS
MAY BE DONE INDIVIDUALLY
UPON REQUEST
Due: 11pm
st
Sunday 21
January (Week 3b)
Due: 11pm Wednesday
th
7 February
(Week 6a)
Submit: Cadmus
Submit: Canvas
Assignment 1: Discussion paper
HOW A COMPANY OR BRAND
CREATES VALUE FOR THEIR
CUSTOMERS, FOR THE
COMPANY, AND FOR THE
SOCIETY AT LARGE
+
SELECT ONE OF THE
THREE COMPANIES
FROM THE LIST:
FIND
ARTICLES/REPORTS
ABOUT THE
COMPANY/COMPETITO
RS/INDUSTRY
+
1.Lyka: https://lyka.com.au/
2.Honey Insurance
https://www.honeyinsurance.com/
3.What Ability

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