5) social marketing
Wants: the form human needs take as they are shaped by culture and individual personality
Demands: wants that are backed by buying power
Product- consumers will favor the product that offers the most in quality, performance and innovative features.
Selling- The idea that consumers will not buy
enough of the firm’s products unless the firm undertakes a large-scale selling and promotion effort.
Marketing- organizational goals depend on knowing the needs and wants of the target markets and delivering desired satisfactions better than competitors do.
Societal marketing- Is a firm that satisfies the immediate needs and wants of the target market doing what’s best for its consumers in the long run?
Customer satisfaction – the extent to which a product’s perceived performance matches a buyer’s expectations.
Growth of not-for-profit marketing (st jude, etc)
Rapid globalization. (competition in other countries)
Sustainable marketing/ call for social responsibility. Ethics, etc. SOCIALLY AND ENVIRONMENTALLY RESPONSIBLE.
1) defining the company mission
2) setting company objectives and goals
3) designing the business portfolio
4) planning marketing and other functional strategies
can be a company division, a product line within a division, or sometimes a single product of brand. MAKE UP THE COMPANY
EX: when U.S. turkey producers worked to reposition turkey as a good choice for everyday consumption, and not just a food for Thanksgiving.
Market Development: to take the current product, and introduce it to new markets.
EX: printers moving from the business to the home market
Product Development: to offer new products to current customers. EX: Kellogg’s Rice Krispies being sold as Rice Krispie Treats
Diversification: to offer new products in new markets. EX: Yamaha provides an interesting example, as they market products that include motorcycles, watercraft, guitars, and pianos.
Market Segmentation: dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors.
Market Targeting: evaluating each market segment’s attractiveness and selecting one or more segments to enter.
Differentiation: actually differentiating the market offering to create superior customer value
Positioning: arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
Product: the goods and services that the company offers to the target market
Price: amount customers must pay
Place: company activities that make the product available
Promotion: persuades customers to buy it
Customer solution (product)
Customer Cost (price)
The net return from a marketing investment divided by the costs of the marketing investment.
6 major actors:
THE COMPANY: management, mission, objectives, strategies.
SUPPLIERS: provide resources for company to produce goods.
MARKETING INTERMEDIARIES: help company promote, sell, and distribute to its final buyers.
COMPETITORS: position products against them
PUBLICS: group that has interest or impact on an organizations ability to achieve its goals. (financial, media, govt, citizen-action, etc)
CUSTOMERS: most important!!! in microenvironment
Demographic: human populations (size, density, location, age, gender, race, etc)
Economic: economic factors that affect consumer purchasing power and spending patterns
Natural: involves the physical environment and natural resources that are needed as inputs.
Technological: most dramatic force- antibiotics, robotic surgery, miniaturized electronics, smartphone, internet.
Political: laws, government agencies, pressure groups that influence organizations
Cultural forces: institutions and other forces that affect a society’s VALUES, PERCEPTIONS, BELIEFS, BEHAVIOR.
GENERATION Y: millennials – the 83 million children of the baby boomers born between 1977 and 2000. Tech-savvy, lots of millennials.
analysis, and reporting of data relevant to a specific marketing situation facing an organization.
Management looks to marketing research to reduce uncertainty. This is an important point; market researchers do not make decisions, but rather provide information that helps managers make decisions.
Intelligence: publicly available info about consumers, competitors, and developments in marketing environment.
2) developing the research plan for collecting information
3) implementing the research plan- collecting and analyzing the data
4) interpreting and reporting the findings
Descriptive: research to better DESCRIBE marketing problems, situations, or markets. Goal is to tell us about demographics and attitudes.
Causal: research to test hypotheses about cause and effect relationships.
Observation: observing relevant people, actions and situations.
Survey: asking people questions about their knowledge, attitudes, preferences, and buying behavior.
Experiment: selecting matched groups of subjects, giving them different treatments, controlling related factors and checking for differences in responses.
for marketing research to represent the population as a whole.
Probability: each population member has a known chance of being included. SAMPLING ERROR CAN BE MEASURED.
Nonprobability: when probability costs too much or takes too much time, researchers turn to this. SAMPLING ERROR CANNOT BE MEASURED.
SOCIAL: groups and social networks, family, roles and status. Relatively permanent and ordered divions whose members share similar values, interests, and behaviors.
PERSONAL: age and life-cycle stage, occupation, economic situation, personality and self-concept. Personal characteristics.
PSYCHOLOGICAL: motivation, perception, learning, beliefs and attitudes.
Middle class (professionals, independent businesspersons, corporate managers)
Working class: depend heavily on relatives for economic and emotional support
Lower class: the working poor. Poorly paid for unskilled work.
Variety-seeking buying behavior: low consumer involvement, significant perceived brand differences.
Dissonance-reducing buying behavior: in situations characterized by high involvement but few perceived differences among brands.
Habitual buying behavior: low consumer involvement, few significant perceived brand differences.
2) information search
3) evaluation of alternatives
4) purchase decision
5) postpurchase behavior
1) Awareness: consumer becomes aware of new product but lacks information about it.
2) Interest: consumer seeks information about product
3) Evaluation: consumer considers whether trying the new product makes sense
4) Trial: consumer tries product on small scale
5) Adoption: consumer decides to make full and regular use of the new product.
2) Modified rebuy: the buyer wants to modify product specifications, prices, terms or suppliers. “In” suppliers may become nervous and put their best foot forward. “Out” suppliers use modified rebuy situation to make a better offer and gain new business.
3) New task: company buying a product or service for the first time.
4) Systems selling: buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation.
Influencers: often help define specifications and provide information for evaluating alternatives. EX: technical personnel.
Buyers: formal authority to select the supplier and arrange terms of purchase.
Deciders: have power to select or approve the final suppliers. In routine buying, buyers are often the deciders/approvers.
Gatekeepers: control the flow of information to others. EX: agents often have the authority to prevent salespersons from seeing users or deciders.
Organizational: objectives, strategies, structure, systems, procedures
Interpersonal: influence, expertise, authority, dynamics
Individual: age/education, job position, motives, personality, preferences, buying style
prisons, and other institutions that provide goods and services to people in their care. (ex. hospital food)
Government: Governmental units—federal, state,
and local—that purchase or rent goods and services for carrying out the main functions of government. Military, defense, schools, etc. Government organizations typically require suppliers to submit bids, and normally they award the contract to the lowest bidder.
Market targeting: evaluating each market segment’s attractiveness and selecting one or more segments to enter.
Differentiation: differentiating the market offering to create superior customer value.
Positioning: arranging for a market offering to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers.
2) Demographic: age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, generation (jello for kids “wiggle” vs adults “10 calorie guilt free indulgence”
3) Psychographic: social class, lifestyle, personality
4) Behavioral: occasions, benefits, user status, usage rate, loyalty status
Substantial (large/ profitable enough to serve)
2) Segment structural attractiveness (cant contain too many aggressive competitors or be too easy for new entrants to come in. Also, substitute products may limit prices and products earned.)
3) Company objectives and resources
2) Differentiated (Segmented) marketing: a firm decides to target several market segments and designs separate offers for each. P&G detergent is an example, 6 different laundry detergents that all compete with each other.
3) Concentrated (niche) marketing: a firm goes after a large share of one or a few segments or niches. Ex: whole foods has less stores than HUGE Kroger, yet smaller, more upscale retailers have grown faster than rivals.
4) Micromarketing: tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments. EX: places in manhattan making sandwiches and quick lunches for the office workers and commuters.
Marketing, especially towards children, can be harmful. Sexualization, “heathly” happy meals, etc. SOCIALLY RESPONSIBLE MARKETING.
2) Choosing the right competitive advantages
3) Selecting an overall positioning strategy.
More for more, more for the same, more for less, less for less. PRICE vs BENEFITS.
More for more ALWAYS WINS. Less for more always loses.
Then, develop a positioning statement.
2) Actual product- brand name, features, quality level, packaging, design, features.
3) Augmented product- delivery and credit, product support, warranty, after-sale service.
Shopping products: a consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price and style. MUCH TIME SPENT on gathering info, compatisons. Ex: furniture, clothing, used cars, hotels/airlines, etc.
Specialty products: product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. Ex: gourmet food, a Lamborghini, chanel, etc.
Unsought product: a consumer product that the consumer either doesn’t know about or doesn’t consider buying. Ex: life insurance, funeral services, blood donations, etc.
Products and services need to bring value to customers/ builds customer relationships. End goal is money.
Decisions- PRODUCT LINE LENGTH (# of items), also understanding how each product contributes to the line’s performance.
Decisions: depth (number of versions offered for each product), consistency (how closely related items are), width (number of lines in the mix).
Companies may have to weed out lines that don’t work to regain their focus.
traditional product marketing?
Inseparability: services are produces and consumed at the same time and cannot be separated from their providers.
Variability: the quality of services may vary greatly depending on who provides them and when, where and how they are provided. ex: Marriott employees, one may be great and another may be awful, but they’re both employees of the same company.
Perishability: services cannot be stored for later sale or use. Ex: doctors charge for missed appointments.
Differs because services cannot be touched!
internal service quality, satisfied and productive employees, greater service value, satisfied and loyal customers, healthy service profits and growth.
Happy team members result in happy customers. Happy customers do more business for you and become advocates for your enterprise.
Brand equity is the measure of a brand’s ability to capture consumer preference and loyalty.
Positioning: attributes, benefits, beliefs and values
Brand name selection: selection and protection
Brand sponsorship: private brand, licensing, co-branding
Development: line extensions, brand extensions, multibrands, new brands.