MARKETING IN

TODAY’S ECONOMY
(PART 2)
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Course: Marketing Strategy

Lecture: Mai Dong Tran
 remember…

“True marketing is fair

marketing where price
must match the quality
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of product”
Philip Kotler
the crisis of KERA brand, Hằng Du Mục, Quang Linh Vlog, Miss Thùy Tiên…

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“Quality creates prosperity.
A good and true quality of
product/service is its own
the best sales”

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“No matter what
product/service you sell,
let tell me what is your
business model …”

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 Digital Media Usage Trends
Recent studies show a dramatic shift in media consumption:
• Approximately 56% of time is spent on digital media
compared to 30% on TV and lower percentages for print
and radio.
• Visualizing: the chart or pie diagram that clearly shows the
dominance of digital media.
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• This trend compels marketers to invest in digital channels.

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Digital Media
Usage Trends
Approximately 56% of Time Visualizing the This Trend Compels
Dramatic Shift in Media
Spent on Digital Media vs. 30% Dominance of Digital Marketers to Invest Heavily
Consumption
on TV Media in Digital Channels
Budget Reallocation: As more
Changing Habits: Consumers now Decline of Traditional Outlets: Pie Charts or Bar Graphs: Illustrate consumers flock to digital platforms,
dedicate more time to digital While TV still holds a significant the contrast between digital and marketers must shift advertising budgets
share, print and radio have seen traditional media usage with a clear accordingly—focusing on online ads,
devices—computers, smartphones,
social media campaigns, influencer
tablets—than ever before. This shift more pronounced drops in usage. visual. For instance, a pie chart can
partnerships, and search engine
is accelerated by on-demand This indicates a broader movement 10 highlight the 56% digital share, the marketing.
streaming, social media, and mobile away from linear and scheduled 30% for TV, and the smaller slices for Data-Driven Opportunities: Digital
apps. media toward flexible, on-demand print and radio. channels provide rich analytics and real-
digital options. Year-Over-Year Comparisons: Show time insights, enabling marketers to
Mobile Dominance: A substantial historical data to underscore how measure engagement, refine messaging,
Generational Differences: and personalize campaigns more
portion of digital media consumption digital’s share has expanded—and
Younger audiences, in particular, effectively than traditional media.
occurs on smartphones, where users continues to expand—over time.
spend a large majority of their Integrated Strategies: Although digital
access streaming services, social is important, integrating offline and
media time online, influencing platforms, news, and more—often online efforts can create unlimited brand
overall consumption trends across simultaneously or in short bursts experience, ensuring that no potential
demographics. throughout the day. touchpoint is overlooked.
Ex. Social Media Analytics

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Opportunities in
Fragmented Media
While fragmentation poses challenges, it also
offers new possibilities:
• Marketers can target niche segments with
tailored content.
• Greater personalization is achievable
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through digital platforms.

• The ability to measure engagement in real
time helps optimize campaigns quickly.
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Opportunities
in Fragmented
Media
Marketers Can Target Greater Personalization Ability to Measure
Niche Segments with Is Achievable Through Engagement in Real Time
Tailored Content Digital Platforms Helps Optimize Campaigns
Quickly
Precision Targeting: Rather than a “one- Data-Driven Insights: With analytics tools, Instant Feedback Loop: Digital platforms
size-fits-all” approach, media fragmentation marketers can track user behaviors, provide immediate metrics on clicks, views,
allows you to zero in on specialized preferences, and 20purchase histories. This data and conversions. Marketers can see what
audiences—like hobby enthusiasts, specific enables them to create personalized works (and what doesn’t) almost instantly,
age groups, or geographic communities— recommendations, ads, and content that align allowing them to refine their approach.
across different platforms. with each user’s interests.
Relevance and Resonance: Crafting Adaptive Strategies: With real-time data,
Enhanced User Experience: Personalized campaigns can pivot mid-flight. For instance, if
messages that address the unique needs or
interactions—such as customized product an ad underperforms on one channel,
interests of each niche segment often leads
suggestions or tailored email campaigns—can marketers can redirect budgets to a more
to higher engagement, more meaningful
increase customer satisfaction and loyalty by successful platform or modify the creative to
customer relationships, and better return on
showing that the brand understands individual improve results.
marketing investment. needs.
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 Shifting Value
Propositions
Today’s value propositions are changing:
• Instead of one-time purchases, consumers now
value ongoing access (e.g., subscription services
like Netflix).
• Companies must continually demonstrate value
to retain customers.22

• The focus shifts from ownership to the

experience and convenience provided by the
product.
 Shifting Value Propositions
1. Instead of One-Time Purchases, Consumers Now Value Ongoing Access
Subscription Economy: Services like Netflix, Spotify, and meal kits (e.g., HelloFresh) exemplify how customers increasingly favor
continuous access or usage rights over outright ownership.
Predictable Revenue Streams: For companies, subscription models can yield recurring revenue, enhancing customer lifetime value.
However, they also require ongoing content updates or feature improvements to maintain subscriber interest.
Convenience and Flexibility: Many subscription services let users opt in or out at will, giving them a sense of control and making
them more inclined to try new services without a big commitment.

2. Companies Must Continually Demonstrate Value to Retain Customers

Ongoing Engagement: With a subscription or membership model, the customer relationship doesn’t end after the initial purchase; it
must be nurtured through new content, personalized offers, or loyalty rewards.
Proactive Customer Success: Firms must anticipate user needs and solve potential issues before customers consider canceling.
Providing timely support and relevant updates can help ensure a positive experience.
Performance Metrics: Retention rates, churn analysis, and Net Promoter Scores become key indicators of success, prompting firms
to refine offerings in real time. 23

3. The Focus Shifts from Ownership to the Experience and Convenience Provided by the Product
Experiential Marketing: Rather than touting product features alone, brands emphasize the unique experiences, benefits, or
outcomes that come with usage. For example, a car-sharing service highlights freedom and hassle-free mobility rather than vehicle
specs.
Lifestyle Integration: When customers perceive a product or service as seamlessly fitting into their daily routines, it becomes more
valuable. This can be achieved by offering intuitive interfaces, integration with other apps, or flexible usage options.
Emotional Connection: By focusing on how a product improves a user’s life—saving time, reducing stress, or enhancing enjoyment—
companies can foster deeper brand loyalty that goes beyond mere transactional relationships.
 Traditional products like
Shifting newspapers are in decline
while digital news consumption
rises.
Demand
Patterns Entertainment, music, and
video are increasingly
consumed via streaming
24 platforms.

Companies must anticipate

these shifts to reallocate
resources and adjust
marketing strategies.
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 Shifting Demand Patterns
1. Traditional Products Like Newspapers Are in Decline While Digital News Consumption Rises
Changing Consumer Preferences: Many readers now get their news via apps, social media, and online aggregators, making
print formats less convenient.
Revenue and Business Model Shifts: Newspapers face dropping ad revenue and circulation, prompting them to explore
digital subscriptions, paywalls, or sponsored content to stay viable.
Implication for Marketers: Brands that once relied on print advertising must reallocate budgets to digital channels where
audiences now focused.

2. Entertainment, Music, and Video Are Increasingly Consumed via Streaming Platforms
On-Demand Culture: Streaming services like Netflix, Spotify, and Disney+ offer instant access to massive libraries of content,
drastically changing consumer expectations about availability and convenience.
Subscription Boom: Rather than buying CDs or DVDs, many consumers pay for monthly or annual streaming subscriptions—
placing a premium on consistent, fresh content.
Implication for Marketers: Campaigns must reach consumers 27 through digital touchpoints (e.g., streaming ads, influencer
collaborations, platform sponsorships) while considering user preferences for minimal interruptions and high personalization.

3. Companies Must Anticipate These Shifts to Reallocate Resources and Adjust Marketing Strategies
Proactive Adaptation: Firms that quickly change their offerings to align with new consumption habits can gain a competitive
edge (e.g., launching an app, creating exclusive digital content).
Integrated Approaches: An omnichannel marketing plan—combining both online and offline touchpoints—can help capture
customers wherever they choose to engage.
Continuous Monitoring: As technology and consumer habits increasing, regular market research and real-time analytics are
essential to keep strategies aligned with changing demand.
Examples of
Shifting Demand
Consider these industries:
• Entertainment: Netflix, Disney+,
and Hulu have transformed media
consumption.
• Music: Spotify and Apple Music
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lead in digital streaming.

• News: Online platforms now
outpace traditional newspapers in
readership.
• These examples illustrate how
customer preferences have
evolved.
 Examples of Shifting Demand

1. Entertainment: Netflix, Disney+, and Hulu Transform Media Consumption

Cable-Cutting Trend: Streaming platforms have led many consumers to reduce or eliminate
traditional cable subscriptions, preferring on-demand access to vast libraries of TV shows and movies.
Original Content: Services like Netflix and Disney+ invest heavily in exclusive series and films,
attracting customers to subscribe and stay engaged.
Implication for Marketers: Advertisers must adapt by placing ads within streaming services (where
allowed) or creating branded content that resonates with binge-watching audiences.

2. Music: Spotify and Apple Music Lead in Digital Streaming

Subscription Model: Listeners often pay monthly fees for unlimited access to millions of songs,
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rather than purchasing individual albums or tracks.
Personalized Experiences: Selected playlists and algorithm-driven recommendations have become
key differentiators, shaping how fans discover new music.
Implication for Marketers: Brands can partner with streaming services for sponsored playlists,
exclusive artist collaborations, or integrated audio ads that reach targeted listener segments.
 Examples of Shifting Demand

3. News: Online Platforms Now Outpace Traditional Newspapers in Readership

Instant Access: Digital news sites and social media channels provide breaking stories in real time,
making daily or weekly print editions seem slow by comparison.
Diverse Revenue Streams: Many news outlets have adopted paywalls, subscription levels, or
native advertising to maintain profitability while declining print ad revenues.
Implication for Marketers: Shifting budgets to digital channels can better capture audiences who
seek timely, mobile-friendly news content.

4. Overall Illustration of Changing Consumer 30 Preferences

On-Demand Culture: Across these industries, customers increasingly demand convenience,
immediate access, and personalization.
Opportunities for Innovation: Firms that anticipate and respond to these shifts—through new
distribution models, fresh content, or specialized features—can gain a competitive edge.
Case study: (Textbook, page 367)
Netflix Fights to Stay Ahead of a Rapidly Changing Market

- Group working
- Duration for discussion: 10’
- Presenting: < 5’
- Answer the Questions
+ Group 1: Question 131

+ Group 2: Question 2
+ Group 3: Question 3
+ Group 4: Supporting (at least 3 opinions/group)
+ Group 5: Opposing (at least 3 opinions/group)
- Summary
 Examples of Shifting Demand

- Netflix has used artificial intelligence (AI) and big data to provide a personalized experience
for each user, based on their viewing behavior and preferences.
- Every time a user watches a movie or series on Netflix, AI collects data on the genre,
duration, and elements they like (such as actors, directors), and then recommends content
that matches their personal preferences.
- No two Netflix users have the same list of content recommendations.
- Netflix constantly monitors and adjusts its content recommendations based on what users
have watched most recently. This not only improves the user experience but also keeps
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them engaged with the platform.
- According to research, 80% of the content on this platform that users choose to watch is
based on recommendations from the AI ​system.
- This proves that the company's ability to personalize content plays an important role in
retaining customers.
- At the same time, Netflix also saves about $1 billion annually by using AI to optimize content
recommendations and prevent user leaving…
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Privacy, Security, and
Ethical Concerns
With increased digital interaction comes
greater concern for privacy:
• Consumers are increasingly aware of how
their data is collected and used.
• Security issues, such as breaches and
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misuse of personal data, have become

common.
• Marketers must balance data utilization
with ethical standards and legal
requirements.
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 Privacy, Security, and Ethical
Concerns
1. Consumers Are Increasingly Aware of How Their Data Is Collected and Used
Data Transparency: With websites, apps, and connected devices collecting vast amounts of personal information, customers now
question what’s being done with their data—whether it’s shared, sold, or stored securely.
Informed Approval: Laws such as the General Data Protection Regulation (GDPR) in the EU and the California Consumer Privacy Act
(CCPA) in the U.S. reflect the growing push for explicit user approval and clear data usage policies.
Trust as a Differentiator: Companies that are open about their data practices can foster trust and loyalty. Conversely, those that
appear secretive risk reputational damage and potential legal repercussions.

2. Security Issues, Such as Breaches and Misuse of Personal Data, Have Become Common
Data Breaches: Cyberattacks on major retailers, banks, or social media platforms expose sensitive user information, damaging
consumer confidence and incurring heavy costs in legal fees, resolving, and lost business.
Misuse of Data: Incidents where personal data is used for unauthorized advertising, political manipulation, or identity theft further
erode trust in digital platforms.
Preventive Measures: Encoding, secure servers, regular vulnerability assessments, and employee training can decrease risks.
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Marketers must partner with IT teams to ensure robust security protocols are in place.

3. Marketers Must Balance Data Utilization with Ethical Standards and Legal Requirements
Responsible Targeting: While data analytics allows for highly personalized marketing, it can also cross ethical lines if it becomes
overly intrusive or manipulative. Obtaining the right balance is crucial.
Compliance and Accountability: Marketers should stay up to date on relevant regulations, industry guidelines, and best practices to
avoid fines or public backlash. This includes honoring consumer opt-outs and obeying to do-not-track preferences.
Long-Term Relationship Focus: Ethical data usage is not just about avoiding lawsuits; it’s about building lasting customer
relationships founded on respect, honesty, and transparency.
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 ADDRESSING PRIVACY
AND SECURITY
With increased digital interaction
comes greater concern for
privacy:
• Consumers are increasingly
aware of how their data is
collected and used. 40

• Security issues, such as

breaches and misuse of
personal data, have become
common.
• Marketers must balance data
utilization with ethical
standards and legal
 Addressing Privacy and
Security
1. Consumers Are Increasingly Aware of How Their Data Is Collected and Used
Growing Demand for Transparency: Users want to know exactly what personal information is gathered—whether it’s
browsing behavior, location data, or purchase history—and how it will be used.
Regulatory Environment: Laws such as the GDPR (EU) and CCPA (California) reflect heightened global scrutiny, requiring
organizations to be explicit about data collection and to give consumers more control over their information.
Building Trust: Providing clear, easy-to-understand privacy policies and obtaining explicit consent can help reassure customers
that your brand respects their data and is acting responsibly.

2. Security Issues, Such as Breaches and Misuse of Personal Data, Have Become Common
Frequent Data Breaches: High-profile hacks and leaks erode customer confidence, leading to potential financial losses and
reputational damage for companies involved.
Misuse of Data: Beyond hacking, misuse can include unauthorized sharing or selling of data, or overly invasive ad targeting—
further eroding trust.
Proactive Measures: Marketers should coordinate with IT 41 and legal teams to ensure encoding, secure servers, and regular risk
assessments are in place to protect customer information.

3. Marketers Must Balance Data Utilization with Ethical Standards and Legal Requirements
Responsible Targeting: While data can personalize marketing, too much personalization or aggressive retargeting can feel
invasive. Obtaining the right balance fosters loyalty rather than suspicion.
Legal Compliance: Understanding and obeying to privacy regulations—like honoring opt-out requests and user data deletion—
protects both the brand’s reputation and its bottom line by avoiding fines.
Long-Term Relationship Focus: Ethical handling of data helps establish a sense of trust and respect, creating deeper, more
enduring connections with customers over time.
Addressing
Privacy and
Security
Companies are taking steps to mitigate privacy concerns:
• Implementing robust data protection measures and
transparent privacy policies.
• Providing consumers with controls over their data
(e.g., adjusting privacy settings on smart devices).
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• Adhering to regulations such as COPPA to protect

vulnerable groups.
 Addressing Privacy and
Security
1. Implementing Robust Data Protection Measures and Transparent Privacy Policies
Data Encryption and Secure Servers: By encrypting data both at rest and in transit, companies reduce the risk of unauthorized access.
Using secure servers with up-to-date firewalls and intrusion detection systems also helps safeguard customer information.
Clear Privacy Statements: Explaining how, why, and when data is collected (and with whom it may be shared) fosters transparency. This
can include detailed, plain-language privacy policies and easy-to-find “Frequently Asked Questions” about data usage.
Regular Security Audits: Conducting periodic risk assessments or hiring third-party firms to test systems ensures vulnerabilities are
detected and patched before breaches occur.

2. Providing Consumers with Controls Over Their Data (e.g., Adjusting Privacy Settings on Smart Devices)
User-Friendly Settings: Offering straightforward ways for consumers to opt out of certain data collections, customize marketing preferences,
or delete personal information promotes trust.
Consent Management Platforms: Many websites and apps now use consent management dashboards where users can accept or reject cookies
and tracking technologies. This gives individuals a sense of agency over how their data is utilized.
Granular Permissions: On mobile devices and smart home products, letting users decide which apps or features can access their location,
microphone, or camera reduces privacy anxieties.
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3. Adhering to Regulations Such as COPPA to Protect Vulnerable Groups

Children’s Online Privacy Protection Act (COPPA): In the United States, COPPA imposes strict requirements on collecting personal data
from children under 13. Companies must obtain verifiable parental consent, disclose data practices clearly, and protect the information
collected.
Global Frameworks and Best Practices: Beyond COPPA, firms may also need to comply with laws like the General Data Protection
Regulation (GDPR) in the EU or the California Consumer Privacy Act (CCPA) in the U.S. These regulations reinforce the need for responsible data
handling.
Reputation Management: Demonstrating compliance not only avoids legal repercussions but also positions companies as socially
responsible—particularly crucial when dealing with sensitive user groups like children or seniors.
Unclear Legal Jurisdictions in
Global Marketing
Operating in multiple countries introduces legal complexities:
• Differences in tax laws, intellectual property rights, and
consumer protection can affect strategies.
• For instance, online retailers must now collect sales taxes
in many jurisdictions. 44

• Firms must continuously adapt to varying legal

environments to avoid penalties and maintain
competitiveness.
 Unclear Legal Jurisdictions in
Global Marketing
1. Differences in Tax Laws, Intellectual Property Rights, and Consumer Protection Can Affect Strategies
Varying Tax Regulations: Each country may have unique requirements for sales taxes, value-added taxes (VAT), or customs duties.
Navigating these differences can complicate pricing, supply chain decisions, and profit margins.
Intellectual Property Complexities: Patent, trademark, and copyright laws vary widely around the world. A product or brand name
protected in one country might not receive the same protection elsewhere, opening the door to knockoffs or infringement.
Consumer Protection Standards: Regulations around product safety, data privacy, and labeling also differ. Failing to comply with
local consumer protection laws can result in legal disputes, fines, or damaged brand reputation.

2. Online Retailers Must Now Collect Sales Taxes in Many Jurisdictions

Evolving E-Commerce Laws: Court rulings in various countries have expanded the obligation for remote sellers to collect sales tax,
even if they have no physical presence in that jurisdiction.
Administrative Burden: Managing multiple tax rates, filing requirements, and reporting deadlines can become complex and time-
consuming. Technology solutions or third-party tax specialists are often needed to stay compliant.
Impact on Pricing: The additional cost of collecting and remitting taxes may affect a company’s competitive pricing strategy,
especially if consumers are price-sensitive. 45

3. Firms Must Continuously Adapt to Varying Legal Environments to Avoid Penalties and Maintain Competitiveness
Dynamic Legal Landscape: Laws and regulations can change rapidly, especially with ongoing debates around data privacy,
consumer rights, and global trade agreements. Firms need to monitor legal updates closely.
Risk Management: Non-compliance can lead to fines, lawsuits, or bans from key markets. By proactively adjusting operations to
meet new legal requirements, companies can reduce risk and protect brand value.
Strategic Flexibility: Adapting to local legal norms often requires customizing products, packaging, or marketing messages for each
market. A flexible supply chain and localized marketing teams can help address these diverse needs more effectively.
Basic Marketing
Concepts – Market and
Marketplace
• Market: A collection of buyers and sellers
sharing similar needs.
• Marketplace: Traditionally a physical
location (e.g., a mall) where transactions
occur. 46

• Marketspace: Today’s digital arena where

exchanges happen online (e.g., Amazon,
Etsy).
• Understanding these terms is fundamental
to developing effective marketing
strategies.
 Basic Marketing Concepts – Market and
Marketplace
1. Market: A Collection of Buyers and Sellers Sharing Similar Needs
Defining a Market: At its core, a market is any group of people or organizations that have the
willingness, ability, and authority to purchase a particular product or service. For example, the
“housing market” is composed of buyers and sellers of residential real estate, while the “automotive
market” includes both car buyers and car manufacturers.
Importance in Strategy: Identifying the right market is essential. Marketers must understand the
needs and wants of that market (e.g., budget-conscious consumers vs. luxury shoppers) to tailor
products, pricing, and promotions effectively.

2. Marketplace: Traditionally a Physical Location

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(e.g., a Mall) Where Transactions Occur
Brick-and-Mortar Environment: Historically, marketplaces were tangible spaces—like shopping
centers, flea markets, or retail stores—where buyers and sellers engaged in face-to-face transactions.
In-Person Customer Experience: The physical setting influences how products are displayed, how
sales staff interact with customers, and how branding elements (e.g., signage, store layout) shape the
customer experience.
 Basic Marketing Concepts – Market and
Marketplace
3. Marketspace: Today’s Digital Arena Where Exchanges Happen Online (e.g., Amazon, Etsy)
Shift to E-Commerce:
- The internet has revolutionized the concept of a marketplace by removing geographical constraints.
- Platforms like Amazon, Etsy, or eBay allow transactions to happen virtually 24/7, reaching a global audience.
Implications for Marketers:
Operating in a marketspace requires attention to website functionality, user experience, online payment security, and
digital marketing tactics (e.g., SEO, social media, influencer marketing)
4. Understanding These Terms Is Fundamental to Developing Effective Marketing Strategies
Choosing the Right Channel:
Marketers decide whether to focus on physical marketplaces, digital spaces, or a hybrid approach (omnichannel) based on
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where their target market shops.
Tailoring the Customer Journey:
Each environment—physical or digital—offers different opportunities for product display, customer interaction, and brand
storytelling.
Long-Term Planning:
As technology evolves, markets and marketspaces can shift quickly. Successful marketers keep an eye on emerging
platforms and trends to stay relevant and competitive.
 Understanding
Exchange
Exchange is the core of marketing—it’s how value is traded:
• Definition: The process of obtaining something of value by
offering something in return.
• Five Conditions:
1. At least two parties must be involved.
2. Each party provides something valuable.
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3. Communication and delivery must be possible.

4. Both parties have the freedom to accept or reject the
exchange.
5. Each party finds the exchange desirable.
 Understanding Exchange
1. Definition: The Process of Obtaining Something of Value by Offering Something in Return
Core of Marketing: Exchange underpins the entire marketing concept—whether it’s buying a product in a store, subscribing to a
service online, or donating to a charity, there’s always a trade of value between two parties.
Mutual Benefit: Successful exchanges occur when both sides feel they’ve gained something of worth, fostering ongoing
relationships and repeat transactions.

2. Five Conditions for Exchange

1. At Least Two Parties Must Be Involved
Basic Requirement: An exchange can’t happen if there’s only one side. Whether it’s a business and a consumer, two companies,
or even a charitable organization and a donor, you need at least two participants.
2. Each Party Provides Something Valuable
Offerings of Worth: Both sides bring something to the table—money, goods, services, time, or even information. For example, a
customer pays with money, and the retailer offers a product or service.
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3. Communication and Delivery Must Be Possible
Practical Feasibility: The parties need to be able to communicate their needs and deliver on their promises. This could be face-
to-face in a store, through an online platform, or via any other channel that facilitates interaction.
4. Both Parties Have the Freedom to Accept or Reject the Exchange
Voluntary Participation: A genuine exchange requires freedom of choice. If one party is forced or deceived, it’s not a true
exchange—rather, it becomes unethical or even illegal.
5. Each Party Finds the Exchange Desirable
Win-Win Outcome: For an exchange to occur, both parties must believe they’re better off afterward. This mutual satisfaction is
key to establishing trust and long-term customer relationships.
 What Is a Product?
A product is any offering designed to satisfy a customer
need or want:
• Categories include:
⚬ Goods (tangible items such as electronics and
apparel)
⚬ Services (intangible offerings like banking or
consulting)
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⚬ Ideas (social or cause-related initiatives)

⚬ Information (educational content, news, digital
media)
• In today’s economy, the concept of a “product” is
broadened to include digital products (“digital asset”,
 What Is a Product?

1. A Product Is Any Offering Designed to Satisfy a Customer Need or Want

Broad Concept: Traditionally, we think of a product as a physical item sold in stores. However, the term “product” in marketing encompasses anything that delivers value
—whether tangible, intangible, or even conceptual.
Customer-Centric View: The central idea is that a product addresses a problem, fulfills a desire, or otherwise meets the needs of its target audience.
2. Categories Include:
Goods (Tangible Items Such as Electronics and Apparel)
Physical Attributes: These are items customers can see, touch, and typically own outright—ranging from clothing and furniture to smartphones and cars.
Production & Distribution: Managing inventory, shipping, and warehousing are crucial considerations for tangible goods.
Services (Intangible Offerings Like Banking or Consulting)
No Physical Ownership: Services are experiences or processes (e.g., financial advice, healthcare, home repairs) that can’t be stored or touched.
Customer Interaction: Often delivered in real time, requiring skilled personnel and a strong focus on customer satisfaction and relationship-building.
Ideas (Social or Cause-Related Initiatives)
Promoting Change: Ideas might include public awareness campaigns, health advisories, or advocacy efforts for environmental or social causes.
Non-Commercial Value: The “value” here often lies in influencing attitudes or behaviors rather than direct financial gain.
Information (Educational Content, News, and Digital Media)
Knowledge as a Product: Online courses, research reports, and subscription-based news services are examples of information products.
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Digital Delivery: The internet has made it easy to distribute and monetize information through e-books, blogs, webinars, and subscription platforms.
3. In Today’s Economy, the Concept of a “Product” Is Broadened
Digital Products: These include software, streaming media (e.g., Netflix), mobile apps, and cloud-based services that users access on-demand rather than purchase
outright.
Experiences: Theme parks, concerts, and immersive VR offerings focus on creating memorable moments for customers, rather than selling a physical item.
People as Products: Personal branding, celebrity endorsements, and influencer marketing illustrate how individuals can be packaged and promoted much like traditional
goods or services.
 Form Utility: Unique attributes that
differentiate a product (e.g., design, quality).

The Time Utility: Availability when consumers

need it (e.g., 24/7 service).
Concept of Place Utility: Accessibility in the right
Utility in location (e.g., home delivery).

Marketing 53
Possession Utility: Ease of transfer or
ownership (e.g., credit options).

Psychological Utility: Emotional and

experiential benefits (e.g., the atmosphere of
a luxury dining restaurant; a luxury car).
 The Concept of Utility in
Marketing
1. Form Utility: Unique Attributes That Differentiate a Product (e.g., Design, Quality)
Product Benefits: This refers to how well a product’s specific features, materials, or craftsmanship meet
customer needs. For instance, a luxury handbag made with premium leather and expert stitching offers higher
form utility than a mass-produced alternative.
Competitive Edge: Businesses that excel in form utility often highlight superior design, durability, or
innovation—helping them stand out in a crowded market.

2. Time Utility: Availability When Consumers Need It (e.g., 24/7 Service)

Convenience Factor: By ensuring products or services are ready for purchase at the exact time customers
want them, companies reduce waiting and enhance satisfaction. Think of 24-hour convenience stores or
streaming services that allow on-demand access.
Speed and Timeliness: In many markets, faster delivery or extended operating hours can be a decisive factor
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in winning customer loyalty.

3. Place Utility: Accessibility in the Right Location (e.g., Home Delivery)

Ease of Access: This involves making products or services available in locations that are convenient for the
customer—whether it’s a neighborhood store, a pop-up shop, or a website that ships globally.
Distribution Channels: Strong place utility often relies on well-organized logistics, local partnerships, or an
efficient online presence so that customers can easily obtain what they need.
 The Concept of Utility in
Marketing
4. Possession Utility: Ease of Transfer or Ownership (e.g., Credit Options)
Smooth Transactions: Possession utility is about removing barriers to purchase, such as
offering multiple payment methods, financing plans, or hassle-free returns.
Flexibility for Customers: The simpler and more flexible the transaction, the more likely
customers are to commit. For example, “buy now, pay later” options can encourage bigger
purchases.

5. Psychological Utility: Emotional and Experiential Benefits (e.g., the Ambiance of

a Fine Dining Restaurant)
Emotional Connection: Beyond tangible55benefits, psychological utility addresses how a
product or service makes the customer feel—proud, relaxed, excited, or fulfilled.
Brand Image and Experience: Luxury brands, high-end restaurants, and personalized
services often rely on psychological utility by creating a memorable experience that
customers value as part of their identity or lifestyle.
 Traditional products like
Shifting newspapers are in decline
while digital news consumption
rises.
Demand
Patterns Entertainment, music, and
video are increasingly
consumed via streaming
56 platforms.

Companies must anticipate

these shifts to reallocate
resources and adjust
marketing strategies.
 Shifting Demand Patterns
1. Traditional Products Like Newspapers Are in Decline While Digital News Consumption Rises
Real-Time Access: Today’s consumers expect up-to-the-minute news available on their phones or computers. As a result, physical
newspapers—which have set publication schedules—often struggle to keep pace with digital media.
Interactive Content: Online platforms enable features such as embedded videos, reader comments, and personalized newsfeeds,
creating a richer user experience compared to static print.
Industry Response: Many newspapers have launched digital editions and introduced paywalls or subscription models to adapt, but
they must continually evolve to remain competitive and financially viable.

2. Entertainment, Music, and Video Are Increasingly Consumed via Streaming Platforms
On-Demand Culture: Services like Netflix, Spotify, and Disney+ let consumers choose what to watch or listen to, whenever they want
—rather than adhering to a TV schedule or purchasing physical media.
Subscription Economy: Users pay recurring fees for access to large content libraries, creating predictable revenue streams for
companies and removing the need for one-off purchases like CDs or DVDs.
Content Competition: Streaming platforms compete fiercely by producing original shows, films, and exclusive music content. This
competition drives innovation and can lead to fragmentation 57as users subscribe to multiple services.

3. Companies Must Anticipate These Shifts to Reallocate Resources and Adjust Marketing Strategies
Resource Allocation: As consumer preferences move toward digital and streaming, firms should consider shifting budgets away from
traditional channels (e.g., print ads, physical retail) and toward online marketing, content creation, or platform partnerships.
New Business Models: Businesses can explore subscription-based approaches, offer digital-only versions of their products, or
develop exclusive content to capture audience interest and loyalty.
Continuous Adaptation: Demand patterns can change quickly with new technologies or platforms. Successful companies stay agile
—monitoring consumer behavior, testing new offerings, and refining strategies to remain relevant.
Product
Differentiation and
Value Creation
• Differentiation is crucial to stand out in
a competitive market.
• Companies build value by linking
product features with customer needs.
• Example: Starbucks differentiates not
just by serving coffee but by creating
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a “third place” experience beyond

home and work.
• A strong value proposition helps
generate customer loyalty and
competitive advantage.
Product
Differentiation and
Value Creation
Differentiation Is Crucial to Companies Build Value by Example: Starbucks Differentiates Not A Strong Value Proposition Helps
Stand Out in a Competitive Linking Product Features with Just by Serving Coffee but by Creating Generate Customer Loyalty and
a “Third Place” Experience Competitive Advantage
Market Customer Needs

Avoiding the Commodity Trap: In Benefit-Focused Approach: Rather Beyond the Product: Starbucks Clear Customer Promise: A
industries where multiple brands offer than simply listing features, doesn’t just sell coffee; it offers well-crafted value proposition
similar products, it’s easy for successful marketers highlight how ambiance, personalized service, and communicates precisely what sets
customers to see those offerings as those features solve a customer’s a comfortable environment where your offering apart and why
interchangeable. Differentiation— problem or enhance their life. For
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customers can relax or work— customers should care, helping
whether through unique features, example, a vacuum cleaner that’s
making it a “third place” separate them quickly grasp your product’s
lightweight addresses a customer’s
branding, or superior service—helps a from home or office. benefits.
need for ease of use.
company rise above the noise.
Aligning with Brand Identity: Emotional and Social Value: This Long-Term Success: When
Co-Creation with Customers:
Differentiation should reflect what approach taps into psychological customers consistently
Gathering feedback through surveys,
makes your brand special. Consistency social media, or focus groups can utility, as people enjoy the experience and believe in your
across product design, messaging, and reveal unmet needs, allowing firms to experience and community aspect unique value, they become repeat
customer experience reinforces that refine products or add features that of Starbucks, leading to strong buyers and brand advocates,
uniqueness. resonate with the target audience. brand loyalty. fueling sustained growth and
market leadership.
Major Marketing
Activities and
Decisions
Marketing today involves a series of strategic
actions:
• Strategic Planning: Crafting a roadmap for
achieving long-term goals.
• Research and Analysis: Gathering and
interpreting internal, customer, and external
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data.
• Competitive Advantage: Creating unique
offerings that stand out.
• Marketing Mix Decisions (STP & 4Ps): Defining
product, price, place, and promotion strategies.
• These activities form the backbone of a
 Major Marketing Activities and
Decisions
1. Strategic Planning: Crafting a Roadmap for Achieving Long-Term Goals
Mission and Vision: Effective planning starts with a clear understanding of the organization’s purpose (mission) and
future direction (vision).
Marketing Plan: This plan outlines how marketing will help achieve broader business objectives—defining target
markets, setting goals, and detailing how resources will be allocated.
Ongoing Process: Strategic planning is never “one and done.” Markets evolve, consumer preferences shift, and new
technologies emerge, requiring continuous review and adjustment of the plan.

2. Research and Analysis: Gathering and Interpreting Internal, Customer, and External Data
Internal Assessment: Evaluating the firm’s resources (financial, human, technological) and current performance
metrics (sales, market share) to identify strengths and weaknesses.
Customer Insights: Understanding customer needs, behaviors, and preferences through surveys, focus groups, social
media listening, or big data analytics.
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Environmental Scanning: Monitoring external factors—like economic trends, cultural shifts, technological
breakthroughs, and competitive moves—to spot opportunities and threats.

3. Competitive Advantage: Creating Unique Offerings That Stand Out

Differentiation: Firms must leverage their core strengths (e.g., product innovation, superior service, brand reputation)
to provide something customers can’t get elsewhere.
Value Proposition: Communicating the specific benefits that make the product or service worth purchasing—such as
convenience, quality, or cost savings—helps attract and retain customers.
Sustainability: Competitive advantages are most powerful when they’re difficult for competitors to replicate, ensuring
the firm’s success over the long haul.
 Major Marketing Activities and
Decisions
4. Marketing Mix Decisions (STP & 4Ps): Defining Product, Price, Place, and Promotion Strategies
Segmentation, Targeting, Positioning (STP): Dividing the market into distinct groups, choosing which
group(s) to serve, and crafting a unique image or offering to meet their needs.
Product: Designing or refining the goods and services to satisfy customer demands, including features,
branding, and packaging.
Price: Setting prices that reflect perceived value, competitive pressures, and organizational goals (e.g.,
profitability or market share).
Place (Distribution): Ensuring the product is accessible where and when customers want it—whether that’s
online, in physical stores, or both.
Promotion: Communicating the offering’s benefits via advertising, public relations, sales promotion, social
media, and personal selling to build awareness and drive sales.

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5. These Activities Form the Backbone of a Successful Marketing Strategy
Holistic Approach: Success often depends on how well these elements—planning, research, competitive
advantage, and the marketing mix—work together to create and deliver value.
Cross-Functional Alignment: Marketing decisions should be coordinated with other departments (finance,
operations, human resources) to ensure consistent execution of the overall business strategy.
Continuous Improvement: By monitoring results (e.g., sales, market share, customer feedback) and
adapting quickly, firms can refine their approach and stay ahead in a dynamic marketplace.
THE ROLE OF
STRATEGIC PLANNING
• Strategic planning coordinates
marketing with other business
functions (HR, production,
finance).
• It provides a structured process for
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setting goals, allocating resources,
and defining responsibilities.
• A well-crafted plan acts as a
roadmap that guides
implementation and control.
• Emphasize that strategic planning
is ongoing—it requires regular
updates to remain relevant.
 The Role of Strategic Planning

1. Strategic Planning Coordinates Marketing with Other Business Functions (HR, Production, Finance)
Holistic Alignment: By collaborating with different departments—such as human resources for talent needs, production for inventory or
manufacturing capacity, and finance for budget constraints—marketing initiatives can be more effectively designed and executed.
Resource Efficiency: When all business functions share a common vision, organizations can avoid duplicated efforts or miscommunications, ensuring
that each department’s actions reinforce overall objectives.

2. It Provides a Structured Process for Setting Goals, Allocating Resources, and Defining Responsibilities
Clear Objectives: Strategic planning outlines what the organization wants to achieve (e.g., market share growth, product launches, revenue targets),
giving everyone a unifying set of goals.
Resource Management: By determining budgets, timelines, and necessary personnel up front, companies can allocate funds and talent where
they’re most needed. This reduces waste and increases accountability.
Defined Roles: A structured plan clarifies who is responsible for each task or deliverable. This helps prevent overlap or confusion and ensures that
key activities don’t fall through the cracks.

3. A Well-Crafted Plan Acts as a Roadmap That Guides Implementation64 and Control

Actionable Steps: The plan typically includes specific tactics (e.g., marketing campaigns, product development milestones), along with metrics to
measure success. This ensures teams know exactly what needs to be done.
Control Mechanisms: Strategic planning also includes evaluation and monitoring processes (e.g., performance dashboards, regular reviews). This
allows leaders to track progress, make data-driven decisions, and adjust course if needed.

4. Emphasize That Strategic Planning Is Ongoing—It Requires Regular Updates to Remain Relevant
Dynamic Environments: Markets, technologies, and customer preferences can change rapidly. A living strategic plan ensures the organization can
pivot quickly in response to emerging trends or unexpected challenges.
Continuous Improvement: Frequent reviews and updates help organizations refine their strategies based on real-world outcomes, staying one step
ahead of competitors and better serving customer needs.
Integration of Strategy,
Implementation, and
Control
• The marketing process is continuous: from strategy
formulation to execution and evaluation.
• Successful execution depends on coordination
among all functional areas.
• Tools like dashboards, KPIs, and regular audits help
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monitor progress and allow for real-time

adjustments.
• This integration ensures that strategies remain
aligned with business goals even as market
conditions evolve.
 Integration of Strategy,
Implementation, and Control
1. The Marketing Process Is Continuous: From Strategy Formulation to Execution and Evaluation
Ongoing Cycle: Rather than a linear process that ends once a plan is written, marketing involves continuous improvement. Strategies
are developed, put into action, measured, and then refined based on results.
Adaptive Planning: Market conditions, customer preferences, and competitive landscapes can shift rapidly. This cyclical approach
ensures that your marketing strategies remain flexible and up to date.

2. Successful Execution Depends on Coordination Among All Functional Areas

Cross-Functional Collaboration: Marketing strategies often require input and support from departments like finance (for budgeting),
operations (for production or logistics), and human resources (for staffing and training).
Unified Goals: When every department understands and aligns with the marketing objectives, the entire organization moves in the
same direction—enhancing efficiency and increasing the likelihood of success.

3. Tools Like Dashboards, KPIs, and Regular Audits Help Monitor Progress and Allow for Real-Time Adjustments
Data-Driven Insights: Dashboards that display key performance indicators (KPIs) give teams instant visibility into how well campaigns
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and initiatives are performing.
Agile Responses: With real-time data, marketers can quickly spot underperforming tactics, adjust budgets or messaging, and capitalize
on emerging opportunities—rather than waiting for quarterly or annual reviews.
Accountability and Transparency: Regular audits or performance reviews keep the entire organization accountable to stated goals
and highlight areas needing improvement.

4.This Integration Ensures That Strategies Remain Aligned with Business Goals Even as Market Conditions Evolve
Strategic Consistency: By tying daily actions back to the broader corporate mission and objectives, marketers maintain focus on what
truly matters for the organization’s success.
Long-Term Viability: An integrated approach makes it easier to pivot strategies if economic, social, or technological changes arise—
helping the firm stay competitive and relevant over time.
Real-World Example: Amazon’s
Marketing Evolution
(Textbook, page 14)
• Amazon began as an online bookstore and has transformed into a
global marketplace.
• Key innovations include:
• The A-to-Z Guarantee ensuring customer protection.
• “Amazon Choice” to help customers find quality products easily.
67

• Innovations such as Amazon Go (checkout-free shopping) and

Alexa (voice-controlled devices).
• These examples illustrate how a customer-centric, innovative
approach can drive continuous success.
 Real-World Example: Amazon’s
Marketing Evolution

1. Amazon Began as an Online Bookstore and Has Transformed into a Global Marketplace
Humble Beginnings: Launched in 1994 as a digital bookstore, Amazon’s initial focus was on providing a vast selection of books
online—something traditional bookstores couldn’t match in terms of inventory.
Expansion Strategy: Over time, Amazon diversified into selling music, movies, electronics, and eventually virtually every
product category, including groceries and fashion. Today, it’s a one-stop shop for millions of items.

2. Key Innovations Include:

The A-to-Z Guarantee Ensuring Customer Protection
• Risk-Free Purchasing: Amazon’s A-to-Z Guarantee gives buyers confidence by promising they’ll either receive their product
on time and in good condition, or get a refund. This was crucial in building trust when online shopping was still new.
• Customer-Centric Culture: The guarantee underscores Amazon’s commitment to putting the customer first—reinforcing
the brand’s reputation for reliability and service. 68

“Amazon Choice” to Help Customers Find Quality Products Easily:

• Data-Driven Recommendations: Products labeled “Amazon Choice” are often highly rated, well-priced, and ship quickly,
making it simpler for shoppers to decide.
• Trust Indicator: This feature leverages customer feedback and algorithmic insights to highlight the best options, saving
users time and boosting their confidence in making purchases.
 Real-World Example: Amazon’s
Marketing Evolution
3. Innovations Such as Amazon Go (Checkout-Free Shopping) and Alexa (Voice-Controlled Devices)
Amazon Go: By using sensors and AI, Amazon created physical stores where customers can “just walk out,”
with no lines or checkout counters. This reinvents the in-store shopping experience, blending online convenience
with a brick-and-mortar setting.
Alexa and Smart Devices: Through voice-activated technology, Amazon has moved beyond retail into
everyday consumer life—enabling hands-free product searches, music streaming, home automation, and more.

4. These Examples Illustrate How a Customer-Centric, Innovative Approach Can Drive Continuous
Success
Obsess Over Customers: By constantly refining the shopping experience—whether through fast shipping,
easy returns, or personalized recommendations—Amazon
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keeps customers at the heart of its decisions.
Embrace Experimentation: From drone delivery concepts to new subscription services (e.g., Prime),
Amazon’s willingness to try bold ideas helps it stay ahead in competitive markets.
Sustainable Competitive Advantage: This culture of innovation and customer focus allows Amazon to adapt
quickly to changing technologies and consumer behaviors, maintaining its leadership position over time.
 Chapter Summary

• Marketing today is shaped by rapid technological changes,

global competition, and evolving consumer behavior.
• Foundational concepts such as market, exchange, product, and
utility remain critical.
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• Strategic planning, integrated execution, and continuous
evaluation are essential for success.
 How do emerging technologies empower

Discussio
consumers?

In what ways can companies leverage data

n analytics to create value?

What strategies can ensure ethical handling

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of consumer data?
Thank you

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