Core Marketing Concepts

Placement decisions
Transportation costs
Logistics trade off
Inventory carrying costs
Conversion lost quantity costs
Order-processing and information costs
Warehousing costs-throughput costs not storage
Levels of Market Exposure
Exclusive (BMW Dealership)
Selective (White goods)
Intensive (Coke)
Promotional Mix Elements
Online
Direct marketing
Personal selling
Public relations
Sales promotion
Advertising
Stages of competitive analysis
1. Identify potential and current competitors
2. Assess each key competitors
3. Assess strengths and weaknesses of each competitor
4. Focus analysis on key marketing capabilities
5. Estimate competitors strategies and responses
Steps in developing IMC
(Integrated marketing communication)
1. Identify target audience
2. Determining response sought
3. Selecting a message
4. Selecting a media
5. Selecting message source
6. Collecting feedback
Approaches to advertising
Informative
Persuasive
Reminder
Advertising Appeals
Rational
Emotional
Moral
External Pricing Factors
Pure competition
Monopolistic competition
Oligopolistic competition
Pure monopoly
Internal Pricing
Survival
Profit leadership
Market share maximum
Product-quality
Other objectives
Types of costs
Fixed
Variable
Total
Sales Promotions
Attract new buyers
Reward brand-loyal consumers
Reduce in between purchase time
AIDA Model
Attention, interest, desire, action
Branding
Name, term, sign, symbol that identifies the make or seller of a service
Packaging
Designing a container/ wrapper for a product
Labelling
Identifies, grades, describes and promotes a product
Retailing Factors
Amount of service
Product line sold
Relative prices
Control of outlets
Store clusters
Physical presence
Online presence
Consumer Product Classifications
Convenience
Shopping
Unsought
Specialty
Model of consumer behaviour
Stimuli > Buyer black box> Buyer response and attitudes
Buyer Characteristics
Behaviour
Social
Cultural
Psychological
Environment
Buyer response
Marketing programs
Product Attributes
Quality, design, features, style
Buyer Decision Process
Recognition of a need
Search for information
Selection of options
Decision from options
Post-purchase behaviour
Importance of market research
Marketing environment
Competition
Strategic planning
Customer needs
What is Marketing Research?
Customer, publics consumers
v
Identification
Definition
Action
v
Marketer
Product and Services (Marketing Mix)
Variety, quality, features, brand name, design, packaging, sizes, add-ons, warranties, returns
Price (Marketing Mix)
List price, discounts, allowances, settlements and credit terms
People (Marketing Mix)
Services often comprise of people-to-people
Process (Marketing Mix)
Customers involved in delivery of service process
Physical Evidence (Marketing Mix)
Mostly intangible and need to create physical reminders
Placement (Marketing Mix)
Managing supply and demand,logistics, channel management
Promotion (Marketing Mix)
Advertising, personal selling, direct marketing, synchronous marketing
Research Process
Defining the problem
Developing research plan
Implementing research plan
Interpreting and reporting findings
Developing Research Plan
Exploratory- Why? How? When?
Casual- Who, what, when, where?
Descriptive- How often? How many?
Segmentation Stages
Identify Bases for segmentation
Develop profiles from resulting segments
Develop measures of segment attractiveness
Select the target segments
Develop positioning for each target segment
Develop marketing mix for each target segment
Determining response sought (IMC)
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Advertising Definition
Any paid form of non-personal presentation of ideas, goods or services
PR
Non-personal stimulation of demand for goods by generating commercially significant news about them in mass media
Sales promotion
Any marketing activity other than personal selling, advertising and publicity that stimulates purchase
Personal selling
Oral presentation with 1+ prospective purchasers
Direct marketing
Communication directly at end customer aimed at generating a response
Online
Use of the internet to communicate with customers and stakeholders
Skimming
High price, low sales, more profits
Lower price set later for price sensitive markets
Quality and image match high price
Production costs low
Price Adjustment Strategies
Discount pricing allowance
Segmented pricing
Psychological pricing
Conventional Channels
Manufacturer> Wholesaler> Retailer> Consumer
Vertical Channels
Manufacturer [wholesaler] Retailers> Consumer
Examples of Vertical Channels
Great degree of control- Corporate
Medium degree of control- Contractual (IGA)
Lesser degree of control- Administered (BRISTOL)
Contractual Networks
Wholesaler Sponsored retailer
Retailer co-operatives
Franchise
Franchise Types
Manufacturer sponsored retailer (car retailer)
Manufacturer sponsored wholesaler (coca cola)
Service firm sponsored retailer (Car rentals-hospitality)
Qualitative Research
Information about the motivations, perceptions, thoughts (focus groups)
Quantitative Research
Information about how many people share characteristics (study, survey)
Primary Research
Information gleaned by researcher for specific purpose
Secondary Research
Previous information collected and published
Placement Decision Factors
Speed
Reliability
Capability
Cost
Availability
Flexibility