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Core Curriculum Readings in Marketing cover fundamental concepts, theories, and frameworks in marketing. For classroom use in higher education, this Reading is accompanied by a Teaching Note, test bank, and exhibit slides. This Reading begins with an overview of marketing communications strategy and then presents a framework for designing strategies to optimize consumer engagement. This framework offers managers three broad phases for developing a marketing communications plan: strategic intent, strategic execution, and strategic impact. Crafting such a plan ensures that coordinated and complementary messages are delivered in an integrated marketing communications plan across all consumer touch points. This Reading contains two Interactive Illustrations, "Budgeting for Marketing Communications," which illustrates the objective-and-task budgeting method with a hierarchy of effects perspective, and "Viral Effect of Marketing," which explores the likelihood that a shared YouTube video will "go viral." The Reading also contains links to two video clips, the Taco Bell "Routine Republic" advertisement, a classic example of a conflict-based story, and "Cracking the Code of Super Bowl Ad Effectiveness," which describes research linking viewers' brain activity to the emotional connection of effective ads. Please note: this Reading does not cover the complexity of digital marketing. Its influence on marketing communications is covered in greater depth in Core Reading: Digital Marketing (HBP No. 8224), which is a recommended pairing (assignment) with this Reading.

InMobi, a mobile advertising company, considered one of India's first unicorns, has launched a new product called Miip. InMobi hopes that the product will grow its revenue 8 times by 2018. Visually identified by a mascot, Miip seeks to re-imagine adverting by becoming a user's trusted companion on the mobile phone, introducing them to new, relevant products, much as a friend would. As the CEO and co-founder Naveen Tewari introduces the product in China, he wonders if the product will be as successful as InMobi anticipates.

Bisleri International, a household name in the bottled water segment in India, launched a new energy drink called Urzza in 2014. The energy drink market in India, dominated by Red Bull, was in a nascent stage but was growing at a rapid pace. Recently, energy drinks had been the subject of grave health concerns owing to the harmful effects of excessive caffeine. Urzza, an energy drink without caffeine, had been launched with the intention of creating a new category of drinks that could appeal to everyone. However, it remained to be seen whether Urzza could succeed in creating mass appeal and could meet ambitious sales targets. Was its unique positioning correct, or was it better off marketing itself as a more traditional energy drink?

Bimbra 4x4 was established in 2010 as an after-market customization service providing aesthetic and functional modifications for off-road vehicles. The platform of choice was a utility vehicle called the Mahindra Thar, popular for its bare-bones design that allowed for a wide range of modifications. Bimbra 4x4 adopted a buffet-like approach to its business, where customers were able to pick and choose options to completely customize their vehicles according to their taste and budget. The customer service, quality, and quick turnaround time made this service a preferred choice among off-road enthusiasts. Competition came from two very different segments. The first was local garages offering rudimentary vehicle modifications; the second was the vehicle manufacturer itself. Bimbra 4x4 needed to stabilize and grow based on an understanding of the competitive forces. Was the orientation toward the Mahindra Thar justified or was it a narrow dependence on a single platform? How could the business grow from a one-platform, one-location business into a sustainable multi-location company?

In 2015, Biziga Solutions Private Limited (Biziga), a first generation start-up based out of the National Capital Region, India, operated within the “instructional games” industry. Its first product, MarkLabs, was an emerging market-centric business simulation that promised to provide a contextually relevant simulation. Biziga had recorded revenues of ?20 million in FY2014/15. By the end of 2019, the company wanted to build a portfolio of 20 simulations across five domains and serve 25,000 learners. While the founders were convinced about the market opportunity, a lot depended on their ability to articulate the benefits convincingly to the defined target market, as well as the ability to build critical capabilities and resources needed to deliver benefits to customers.

In 2015, Biziga Solutions Private Limited (Biziga), a first generation start-up based out of the National Capital Region, India, operated within the "instructional games" industry. Its first product, MarkLabs, was an emerging market-centric business simulation that promised to provide a contextually relevant simulation. Biziga had recorded revenues of ₹20 million in FY2014/15. By the end of 2019, the company wanted to build a portfolio of 20 simulations across five domains and serve 25,000 learners. While the founders were convinced about the market opportunity, a lot depended on their ability to articulate the benefits convincingly to the defined target market, as well as the ability to build critical capabilities and resources needed to deliver benefits to customers.

Relationship Marketing Re-Imagined: Marketing's Inevitable Shift from Exchanges to Value Cocreating Relationships is an eight-chapter book published by Business Expert Press in 2016 and written by Naresh K. Malhotra, senior fellow, CIBER and Regents' Professor Emeritus at the Scheller College of Business at Georgia Institute of Technology, Can Uslay, associate professor of marketing at Rutgers Business School, and Ahmet Bayraktar, assistant professor of marketing at Bozok University. The book argues why organizations should focus on creating customer relationships. They consider business-to-business, business-to-consumer, and internal relationships and provide a framework for understanding how to market for each. They also explain how using a Customer Lifetime Value model effectively measures marketing success. Within each chapter, the authors include questions, an analysis of a real-world example, and a review of concepts. In Chapter 1, Introduction (9 pages), the authors state their belief that the focus of competitive marketing is shifting from short-term transactions to long-term value. They explain that customer retention is vital to an organization. Thus, managing relationships with current customers should be a priority. They present a brief analysis of Ritz Carlton as an example of a business that builds strong relationships.

Relationship Marketing Re-Imagined: Marketing's Inevitable Shift from Exchanges to Value Cocreating Relationships is an eight-chapter book published by Business Expert Press in 2016 and written by Naresh K. Malhotra, senior fellow, CIBER and Regents' Professor Emeritus at the Scheller College of Business at Georgia Institute of Technology, Can Uslay, associate professor of marketing at Rutgers Business School, and Ahmet Bayraktar, assistant professor of marketing at Bozok University. The book argues why organizations should focus on creating customer relationships. They consider business-to-business, business-to-consumer, and internal relationships and provide a framework for understanding how to market for each. They also explain how using a Customer Lifetime Value model effectively measures marketing success. Within each chapter, the authors include questions, an analysis of a real-world example, and a review of concepts. In Chapter 2, What Is Relationship Marketing? (13 pages), the authors consider how marketing has shifted focus from individual transactions to customer relationships. They outline a taxonomy of markets: supplier, channel intermediaries, end users, competitive influences, and external and internal influences. They outline three levels of relationship marketing: financial, social, and strategic, and outline characteristics of each level along with examples. They analyze how IKEA conducts successful relationship marketing.

Relationship Marketing Re-Imagined: Marketing's Inevitable Shift from Exchanges to Value Cocreating Relationships is an eight-chapter book published by Business Expert Press in 2016 and written by Naresh K. Malhotra, senior fellow, CIBER and Regents' Professor Emeritus at the Scheller College of Business at Georgia Institute of Technology, Can Uslay, associate professor of marketing at Rutgers Business School, and Ahmet Bayraktar, assistant professor of marketing at Bozok University. The book argues why organizations should focus on creating customer relationships. They consider business-to-business, business-to-consumer, and internal relationships and provide a framework for understanding how to market for each. They also explain how using a Customer Lifetime Value model effectively measures marketing success. Within each chapter, the authors include questions, an analysis of a real-world example, and a review of concepts. In Chapter 3, B2B Relationship Marketing (38 pages), the authors explore partnerships between businesses. They outline three criteria for effective relationships: dependence, commitment, and trust. They describe requirements for building these, and highlight how opportunistic behavior affects relationships. They also outline what factors improve a firm's relationship management capability. They categorize four types of B2B relationships and review different types of strategic alliances. The chapter ends with two real-world examples: Eatiply (cause marketing) and Apple and Clearwell (alliance).

Relationship Marketing Re-Imagined: Marketing's Inevitable Shift from Exchanges to Value Cocreating Relationships is an eight-chapter book published by Business Expert Press in 2016 and written by Naresh K. Malhotra, senior fellow, CIBER and Regents' Professor Emeritus at the Scheller College of Business at Georgia Institute of Technology, Can Uslay, associate professor of marketing at Rutgers Business School, and Ahmet Bayraktar, assistant professor of marketing at Bozok University. The book argues why organizations should focus on creating customer relationships. They consider business-to-business, business-to-consumer, and internal relationships and provide a framework for understanding how to market for each. They also explain how using a Customer Lifetime Value model effectively measures marketing success. Within each chapter, the authors include questions, an analysis of a real-world example, and a review of concepts. In Chapter 4, B2C Relationship Marketing (17 pages), the authors review how relationship management works between businesses and consumers. They outline the major differences between B2B and B2C relationships. They describe customer-based and organization-based relationship marketing. They also consider personalization strategy in building relationships and how an organization can implement an effective personalization program. They demonstrate how Gaylord Opryland used a customer request as an opportunity to create a strong relationship.

Relationship Marketing Re-Imagined: Marketing's Inevitable Shift from Exchanges to Value Cocreating Relationships is an eight-chapter book published by Business Expert Press in 2016 and written by Naresh K. Malhotra, senior fellow, CIBER and Regents' Professor Emeritus at the Scheller College of Business at Georgia Institute of Technology, Can Uslay, associate professor of marketing at Rutgers Business School, and Ahmet Bayraktar, assistant professor of marketing at Bozok University. The book argues why organizations should focus on creating customer relationships. They consider business-to-business, business-to-consumer, and internal relationships and provide a framework for understanding how to market for each. They also explain how using a Customer Lifetime Value model effectively measures marketing success. Within each chapter, the authors include questions, an analysis of a real-world example, and a review of concepts. In Chapter 5, Internal Relationship Marketing (9 pages), the authors review how the idea of marketing within an organization began and evolved. They categorize internal marketing as either treating employees as customers or treating individual business units as customers and summarize each approach. They provide two real-world examples: the "quit now" incentive at Zappos and tuition reimbursement at Starbucks.

Relationship Marketing Re-Imagined: Marketing's Inevitable Shift from Exchanges to Value Cocreating Relationships is an eight-chapter book published by Business Expert Press in 2016 and written by Naresh K. Malhotra, senior fellow, CIBER and Regents' Professor Emeritus at the Scheller College of Business at Georgia Institute of Technology, Can Uslay, associate professor of marketing at Rutgers Business School, and Ahmet Bayraktar, assistant professor of marketing at Bozok University. The book argues why organizations should focus on creating customer relationships. They consider business-to-business, business-to-consumer, and internal relationships and provide a framework for understanding how to market for each. They also explain how using a Customer Lifetime Value model effectively measures marketing success. Within each chapter, the authors include questions, an analysis of a real-world example, and a review of concepts. Chapter 6, Building Brand Equity Through Relationship Marketing (12 Pages), first discusses loyalty programs. The authors suggest business partners will form collaborative loyalty programs to maximize profitability. They also explore how social media and the Internet have expanded the possibilities for customer relationships by creating two-way relationships between customers and products that present both new channels and challenges. They use the example of American Airlines to suggest that frequent flier programs are no longer effective and explore Kickstarter as an innovative way to create relationships.

Relationship Marketing Re-Imagined: Marketing's Inevitable Shift from Exchanges to Value Cocreating Relationships is an eight-chapter book published by Business Expert Press in 2016 and written by Naresh K. Malhotra, senior fellow, CIBER and Regents' Professor Emeritus at the Scheller College of Business at Georgia Institute of Technology, Can Uslay, associate professor of marketing at Rutgers Business School, and Ahmet Bayraktar, assistant professor of marketing at Bozok University. The book argues why organizations should focus on creating customer relationships. They consider business-to-business, business-to-consumer, and internal relationships and provide a framework for understanding how to market for each. They also explain how using a Customer Lifetime Value model effectively measures marketing success. Within each chapter, the authors include questions, an analysis of a real-world example, and a review of concepts. In Chapter 7, Customer Relationship Management Analytics (28 pages), the authors define and examine Customer Relationship Management (CRM). They argue that loyal customers are not always profitable, and suggest segmenting customers by profit potential. They explain why Customer Lifetime Value (CLV) maximizes profitability better than traditional methods do. They explain the basic CLV model and variations of it, and suggest two approaches to CLV: across-customer, for customer-oriented activities, and within-customer, for increasing revenue or reducing cost. Two examples illustrate these concepts: Trusted Media Brands' use of direct marketing and the Orlando Magic's use of statistical analysis.

Relationship Marketing Re-Imagined: Marketing's Inevitable Shift from Exchanges to Value Cocreating Relationships is an eight-chapter book published by Business Expert Press in 2016 and written by Naresh K. Malhotra, senior fellow, CIBER and Regents' Professor Emeritus at the Scheller College of Business at Georgia Institute of Technology, Can Uslay, associate professor of marketing at Rutgers Business School, and Ahmet Bayraktar, assistant professor of marketing at Bozok University. The book argues why organizations should focus on creating customer relationships. They consider business-to-business, business-to-consumer, and internal relationships and provide a framework for understanding how to market for each. They also explain how using a Customer Lifetime Value model effectively measures marketing success. Within each chapter, the authors include questions, an analysis of a real-world example, and a review of concepts. In Chapter 8, Future of Relationship Marketing (4 pages), the authors argue that CRM is increasingly important. They posit that using metrics to demonstrate the profitability of CRM will increase the use of CRM and CLV models. They suggest that small organizations have more ability to develop personal customer relationships than larger organizations do. They also explore emerging markets as a frontier for relationship marketing. They suggest mindfulness in relationship marketing can reduce poverty and excess consumption, and increase sustainability.

In the summer of 2016, PepsiCo Beverages Canada faced a choice: whether to launch its new product, organic Gatorade, in Canada. Only a few months previously, PepsiCo North America Beverages’ chief executive officer had announced a company-wide initiative that was designed to offer consumers a greater variety of healthier products. Would such a product ultimately make PepsiCo more competitive in the Canadian market in light of recent trends that emphasized healthy options? Did Canadian consumers want organic Gatorade? PepsiCo also had to keep in mind its long-standing competition with The Coca-Cola Company, and decide how that would affect its strategic choices.

Reckitt Benckiser was the world’s largest manufacturer of household products and a major marketer of health-care and personal-care products. The company was at a threshold of opportunities provided by a growing market of Indian consumers who were becoming health conscious and buying antibacterial products to make their homes germ-free. At a time when more and more Indians were looking for antibacterial products to protect their health, the company wondered if it should launch an antibacterial laundry detergent powder as part of its brand expansion strategy. Would the company benefit from a first-mover advantage by launching the first antibacterial laundry detergent in India? If the company were to consider entering this market, what strategic and branding objectives should it adopt? Should this new detergent be an extension of the company’s famous Dettol brand or a new brand name?

Many companies want to raise their level of customer service--but how? The typical response is to rewrite frontline employees' scripts and conduct pilot projects. Those tactics may be fine for a company whose service operation is functioning reasonably well. But if the operation is badly broken, or the industry is being disrupted and customers suddenly have many more choices, argue Singapore-based researchers and consultants Jochen Wirtz and Ron Kaufman, deeper cultural change may be needed. On the basis of 25 years of work with global customer service operations, the researchers recommend jettisoning four conventional practices, singly or in combination: (1) Don't start with customer-facing employees. Instead, make sure they're getting the right support. (2) Don't focus on specific skills or scripts. Educate people more generally about what "service excellence" means. (3) Don't pilot changes. Go company-wide to create momentum fast. (4) Don't worry about traditional metrics, such as share of wallet and NPS. Track the number of new value-adding actions put into practice. For companies looking to differentiate on service, these strategies can make the difference between slow, fleeting progress and rapid, sustainable success.

Social media success stories have highlighted the impact social media can have on companies'fortunes. Yet the authors argue that there is a significant opportunity that isn't being realized: utilizing social media to support innovation and new product development. Consultants and academics alike have touted social media as a vehicle for developing customer insights, accessing knowledge, cocreating ideas and concepts with users, and supporting new product launches. Yet despite this promise, the authors have found that the expected positive results are frequently not realized in practice. Although some companies have been able to use social media to develop new insights that lead to successful new products, many others simply do not know how to utilize social media for innovation. Some get distracted by the diversity of input and listen to the "wrong audience."Nevertheless, the authors believe that social media provides a game-changing opportunity for companies that learn how to develop clear strategies and objectives. Analyzing data on the social media practices of large global companies as they relate to new product development, the authors found that for the companies that jumped on the bandwagon and invested in social media initiatives without having a clear strategy, the right skills, or sufficient knowledge frequently did not achieve the results they were looking for. Those that utilized social media sources exclusively to search for technical information saw no improvements in new product development performance; in fact, the effect on performance for these companies was often negative (due to information overload and the complexity of processing such information). The companies that benefited the most from using social media for new product development were companies that used social media in every stage of the new product development processes; they built organizational processes and structures to support new product development activity.

market share, net promoter score, the value of a "like,"customer lifetime value, and return on investment. They conducted interviews with marketers and administered formal surveys to managers. They found that popular marketing metrics are regularly misunderstood and misused. The authors'goal is to encourage appropriate and consistent use of popular marketing metrics. Market Share: If the aim is to maximize the returns to shareholders, the authors argue, increased market share offers no benefit unless it eventually generates profits. Still, in a survey the authors conducted, they found that more marketing managers prioritized maximizing market share than prioritized maximizing profitability. Although, they note, companies with superior products tend to have high market share and high profitability, this does not necessarily mean that increasing market share will increase profits. Using market share as a metric of success simply because other marketers do it can be counterproductive. Net Promoter Score: Companies in a variety of industries have embraced net promoter score as a way to monitor their customer service operations. One of NPS's strongest selling points, the authors write, is its simplicity: It's easy for managers and employees to understand the goal of having more promoters and fewer detractors. However, they note weaknesses in how the theory has been presented to managers. Value of a "Like"The authors caution that managers shouldn't automatically assume that differences in value between social media fans and nonfans are caused by social media marketing activity. When there are differences, managers need to investigate whether they existed prior to the social media marketing effort. Customer Lifetime Value: Marketers often use CLV to help them decide whom to target in acquisition campaigns.

This exercise has been prepared to help the instructor in explaining the process of segmentation in B-2-B marketing context. The segmentation process in B-2-B context is different from consumer segmentation context and this exercise aims to highlight the steps involved in B-2-B segmentation process. This exercise will help the participants to understand the concept of macro segmentation and micro segmentation.