Marketing 305

Marketing
(new times) Makes sure right goods and services are provided. Only makes product/service when there is a need.
Production
(old times) Produces and whoever wants is takes it. Mass production of prudcuts
Micro Marketing View
-Needs of Customers, satisfy their needs
-Set of activities performed by individual organizations
Macro View Marketing
-Should be socially responsible, not focusing on specific needs
-Social Process
-Matches Supply with demand
Universal Functions of Marketing
Buying -> Selling -> Transporting -> Storing-> Standardization and Grading -> Financing -> Risk Taking -> Market Information
Marketing Role Over Time
Simple Trade Era (start) -> Production Era -> Sales Era -> Maketing Department Era -> Marketing Company Era (end/current)
Marketing Concept
-Customer Satisfaction is KEY
-Total Company Effort, entire company works together to satisfy customers
-Profit
Marketing Concept & Customer Value
-Customer Satisfaction=Customer Value
-Do the Benefits outweigh the Cost?
-More benefit than cost=Customer Value
Micro Macro Dilema
Negative effects on society (social responsibility). Whats good for some firms and consumers may not be good for society as a whole
The Management Job in Marketing
1. Marketing-Planning
2. Implementing-Marketing Plans Programs
3. Controlling-Marketing Plans and Programs
Marketing Plan
Is a document stating your marketing strategies
What is Market Strategy Planning?
Finding opportunities and developing marketing strategies to capitalize on opportunities.
Marketing mix
controlled variables of the 4 P’s company puts together to satisfy the target market
Mass Marketing
Production oriented manager sees every one similar.
No specific focus
Dont incorporate needs
Target Marketing
Marketing oriented manager sees everyone DIFFERENT
Marketing Mix Categories
4 P’s
1. Product-With Specific Function
2. Place-Location/distribution where customers are
3. Price-Put price to product
4. Promotion-Get people to buy product
Which of 4 P’s Comes First?
All at the same time work together.
Product, place, promotion, price=Selection of target market.
Marketing Strategy
Action plan to attain objective
Marketing Plan
Document of Strategy
A Firms Marketing Program
All marketing plans from different department in one place. The mother of all marketing plans.
Customer Equity
Is the expected earning stream over time. Expected earnings from customers. Customer equity grows, so do earnings
Breakthrough Opportunities
No one has done it before, its innovative and “groundbreaking”
ex; JIB breakfast is served all day
Competitive Advantage
You do it so well that one else can do it similarly.
Ex; subway is winning the sandwich market with 5 dollar footlongs
Market Penetration
High Promotion/Low Pricing
Not good at making money, low profit margin
Product Development
A product that is attractive to customers, offer new and improved products
Market Development
Moving to new markets geographically OR moving into new businesses (expanding on existing)
Segmentation
Divide entire market into different groups, each group with different needs
Targeting
Selecting one of segmented groups to be the focus of the company.
Différentiation
A concept where marketeer makes a product appear different to consumers. Ex; Volvo vs. Toyota
Positioning
creating a mental perception of bran in the customers mind. Ex; lexus=luxury
Product Market Definition
Define by generic product and subcategory which is the market
Product type, customer needs, geographic area, customer type.
Homogeneous Within
Customers in a market segment should be as SIMILAR as possible
Heterogeneous Between
customers in different segments should be as different as possible
A segmenter
-Using a single market and implementing One marketing mix, apply 4 p’s to one market
-Using multiple markets with different marketing mixes, apply 4 p’s to all markets
A Combiner
Using a combine target market approach. Aim at two or more submarkets with same marketing mix. Most commonly used and practiced, saves more money,
Behavioral Dimensions for segmenting consumer markets
Needs(most common) -> Benefits -> Thoughts -> Rate of Use -> Purchase Relationship -> Brand Familiarity -> Kind of Shopping -> Type of Problem Solving -> Information Required
Geographic Dimensions for segmenting consumer markets
Segment market to different region geographically.
Demographic dimensions for segmenting consumer markets
Income, sex or age, family size or family life cycle stage, occupation or education, ethnicity or social class
Segmenting Business Markets
Business to business with a combination of geographic, behavioral and demographic dimensions.
Dimensions used to segment markets
QUALIFYING DIMENSIONS
-Must meet qualifying basic needs.
-Relevant to including a customer type in a product market
-Help identify Core benefits
Dimensions used to segment markets
DETERMINING DIMENSIONS
-In segmenting market choose this one
-What triggers customer to buy
-find attributes that make people buy product
-affect the customers purchase of a product or brand
Direct Marketing Environnent
Controls:
1. Company objectives and resources
2. Competitors, current and prospective
External Marketing Environnent
Has no control on economic, technological, political and legal, cultural and social
Objectives set firms course
Socially and economically useful function. At times marketeers explore social objectives/functions and they look at macro marketing view when dealing with an opportunity.
Monopoly
1 person/company is controlling the product/market
Monopolistic Competition
When market has (1) different heterogeneous products and (2) sellers who feel they have some competition in the market.
A few control market/products
Oligopoly
Special market situation when market has homogeneous products, few sellers, and inelastic demand curves.
Pure Competition
Let market/customers decide. easy entry for buyers and sellers
Key Economic Forces
Global Economy -> Rapid Changes -> Interest Rates
The Technological Environment
An Advancement in Technology
The Political Environment
NAFTA-North American Free Trade Agreement
The Cultural and Social Environment
Means Domestic and demographic trends
Target Maketeers focus on the Consumer
3 Main Questions
1. What are its relevant segmenting dimensions
2. Size: How big is it?
3. Location: Where is it?
People with Money Make Markets (Population)
Birthrate in the US is declining every year, this equates to a smaller market. We need to look abroad for new markets.
Key Trends; Young and Old
-Population growing, but…
-Birthrate boom or bust
-Graying of America
-appealing to older consumers
Changing of US income
People in the middle and upper income levels are becoming richer, have a raise in income
Economic Needs (consumer behavior)
-Economy of purchase
-Convenience
-Efficiency in use
-dependability
Psychological Variables (consumer behavior)
-motivation:Drive to attain something
-Perception: things we make meaning of
-Learning: use past experience in decision making
-Attitude- POV/Expression about a brand
-Personality/Lifestyle- on weekend of leisure
Social Influence (consumer behavior)
-People make impact on decision making
-Family
-Social Class
-Reference Groups
-Culture
Purchase Situation (consumer behavior)
-purchase reason
-time
-surroundings
Psychological Influences with an Individual
NEEDS
Basic and Natural. Thirsty=Drink Water
Psychological Influences with an Individual
WANTS
“acquired” or learned needs, being more specific of needs. A want is a need with a brand. Thirsty=want a gatorade
Hierarchy of needs PSSP
Personal Needs (top)
Social Needs
Safety Needs
Physiological Needs (bottom)
Perception Determines what Consumers See and Feel
1. Selective Exposure-See what you want to see
2. Selective Perception- Believe what you want to believe
3. Selective Retention-Remember what you want to remember
Attitudes Related to Buying
ATTITUDE
A point of view
Attitudes Related to Buying
Belief
An Opinion, a reason behind attitude
Personality and Lifestyles
Personality;How people see things, assume personality behind a brand (i.e harley davidson)
Personality is about activities, interest and opinions
Other Social Influences
1. Reference Groups-(few people) people closes to you playing a role in helping you decide
2. Opinion Leaders-(one person)
3. Culture
Problem Solving Continuum
LOW INVOLVEMENT
Routine response behavior: low involvement, frequently purchased, inexpensive, little risk, little information.
Problem Solving Continuum
HIGH INVOLVEMENT
Extensive problem solving: High Involvement, infrequently purchased, expensive, high risk, much information desired. Key of marketing is to make this into low involvement
4 Categories of Organization Customers
1. Producers-Makers of product (ford, nestle, Coke)
2. Middlemen- Dont make just sell (Walmart, Victoria Secrets
3. Governments-(USPS, FBI)
4. Non Profits (CSUSB, Public Library)
Organizational Customers are Different
Most orgs buy for basic purpose. Basic purchasing needs are economic. Org buyers are usually less emotional.
People that Influence a Decision
Purchasing Managers are specialist in buying. They make decisions based on influences by the buying Center
Buying Center
Buyers -> Influencers(technical knowledge) -> Deciders(bosses) -> gatekeepers (administration/operations) -> Users (users of products)
Buyer Seller Relationships in Business Markets
1.Close Relationships=Mutual Benefits: Reliable supply, cost reduction, improved quality, reduced uncertainty.
BUT
2. Relationships may not make sense: reduced flexibility, small/infrequent purchases.
Dynamics of Buyer-Seller Relationships
1. Powerful Customer May Control Relationship (buyer may dictate terms of contract)
2. Buyer may use several suppliers
3. Reciprocity may influence relationship
The Scientific Method of Marketing Research
Define Problem -> Analyze Situation -> Getting Problem Specific Data -> Interpreting the Data -> Solving the Problem
Define the Problem Step 1
Most difficult, but most important
1. Find the right problem level
2. Problem vs. Symptom
3. Setting Research Objectives
Analyze the Situation Step 2
Formulating Objective, do we have enough info to solve problem.
1. What info do we have
2. pick brains of people around you
3. situation analysis helps educate researcher
Secondary Data
Data from secondary research, research done before.
Primary Data
Research conducted for the first time
Focus Groups Stimulate Discussion
Focus group=a meeting with people and a person controlling and asking the questions.
Quantitative Research
research that has the numbers. a survey intended to find a number to be summarized and analyzed.