UBC – Marketing Midterm

Marketing
activity, set of institutions, & process for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, etc.
Marketing plan
document composed of an analysis of current market situation, opportunities, and threats to the firm, makriting objectives and strategy specified in terms of 4 P’s, action programs, and projected / pro forma income statements
Core aspects of Marketing
• create value
• sati. custom. needs & wants
• entails an Exchange
• requires product, price, place, and promo decisions
• performed by both individuals. and org.
• affects various stakeholders
Sat. needs and wants (segmenting)
segment based on spec. needs and wants, then tailor product. find most int. intrest. in mark. product
4 P’s
1. Product
2. Price
3. Place
4. Promotions
product:
creating value
goods
items that you can physically touch
services
intangible custom. benefits (experience)
Ideas
thoughts, opinions, philosophies
price
captures value (fiat currency – representative of value of product)
place
delivering the value proposition – delivery mechanism
promotion
communicating the value proposition – informs, persuades, reminds potential customers
history of marketing
1. product oriented era ( turn of 20th)
2. sales oriented era (20’s – 50’s) – bc of over production
3. market-oriented era – customer became king
4. value based marketing – provide utility to end consumer
value
relationship bw costs and benefits
value cocreation
customer = co-collaborators, customize product
becoming more value drive bc of 4 things:
1. sharing of info about custo’s & comp.
2. balance custo’s benefits and costs
3. [ ] on building relationships
4. adv. of new tech
marketing analytics
collection of data
marketing strategy – steps:
1. target market
2. related marketing mix (4 P’s)
3. dev. sustainable competitive advantage
4 macro strat. for marketing
1. customer excel.
2. locational excel.
3. product excel.
4. operational excel.
customer excellence
– curate loyalty so reluctant to go to comp.
– lifelong value perspective
– emotional attachement (CRM)
Operational Excellence
efficient operations, supply chain management
– strong relation. with vendors => long term
Product excellence
high perceived value of product / service
Locational Excellence
particularly for retail location. (ex. McD’s)
Market share
% account by specific company
value based marketing vs. market based
VB Marketing: proactive, adding value more than others

Market based: meeting pre-existing needs

value based marketing
1. maximizing value
2. long term focus
3. relationship
4. beyond just customers ( other stakeholders)
5. evolves over time
marketing plan
1. business plan
2. SWOT
3. develop strategies. ( 4 p’s, target market)
4. Implementation
5. monitoring and control
consumer
final user of product / service
competitors
1. direct competition – does same thing, same niche
2. indirect competition – same benefit, diff. form
3. marketplace competition – not same benefit ,competing for customers time, money, attention, etc.
macroenviron. factors (CDSTEP)
(shapes micro)
cultural
demographic
social
technological
economic
poltical – legal
(N)natural
why do market research?
1. reduce uncertainty
2. provides link bw firms and environ.
3. enables firms to anticipate and respond to comp.
market research process
1. define objectives & research needs
2. designing the research
3. collecting the data
4. analyzing data & dev. insights
5. dev & implementing action plan
secondary data
collected prior to start of project
primary data
collected for project’s needs
data
information when interpreted
secondary data:
more specific / timely to solve needs
– inexpensive compared to primary
syndicated 2nd data
from research firms (e.g. scanner data from ups codes)
Int. 2nd data
from day-to-day operations
=> data warehouse, data mining
churn
# of participants who discontinue use / avg. number of participants
Big data changed marketing bc
• incr. data accessible
• ability to collect data from CRM, transactions
• ease of collecting & storing
• computing ability incr.
• software to convert. data => insights
primary data collection techniques
1. qualitative research – broad open ended q’s
2. quant. research – statistically tested
qualitative methods
1. observation
2. social media mining
3. sentiment mining (commentary)
4. in-depth interviews
5. focus groups
6. survey research (questionnaire)
(DIS)advantages of 2nd research
ADVANTAGES:
• saves time
• free / inexpensive

DISADVANTAGES:
• may not be relevant
• information ≠ timely
• sources ≠ original
• methodologies for data collection may not be appropriate
• data may = biased

(DIS)advantages of primary research
• specific to immed. data needs
• offers behaviour insights
• not available from secondary research

DISADVANT:
• costly
• time-consuming
• requires more sophisticated training and experience to do this

Ethics of marketing
AMA guidelines:
• prohibits selling/fundraising disguised as conducting research
• fair treatment of clients and suppliers
4 C’s
• company
• competition
• collaboration
• consumers
Consumer Behaviour
the dynamic interaction of affect and cognition, behaviour, and the environment by which human beings conduct the exchange of aspects of life
factors influencing consumer decision process
1. elements of marketing mix (4 P’s)
2. psychological factors
3. social factors
4. situational factors
(C.dec.) Psych factors
ex. maslow’s hierarchy of needs
> psychological
> safety
> love needs
> esteem needs
> self-actualization
Attitude
enduring evolution of feelings toward object / idea
3 components of attitude
1. cognitive component: (belief system)
2. Affective component: (emotions)
3. Behavioural component: …

=> ideally these 3 agree with one another
– quick to form, slow to change

Perception
process of interpreting information
lifestyle
ways you spend your time and money to live
learning
change in thought bc of experience. (over course of dec. process.
(C.dec.) Social factors
=> reference groups: 1+ people person uses for comparison

> direct (member)
> indirect( non-member) :
a. aspirational
b. dissociative

3 impacts of reference groups
1. offer info
2. provide rewards
3. enhance self image
(C. Dec.) situational factors
immediate surroundings or context in which purchase decision is made.
– purchase situation
– shopping situation
– temporal state
5 steps to consumer dec. process
1. recognize need
2. search for info
3. eval. alt.
4. chose / search
5. eval. post purchase
types of products (non-exhaustive)
– shopping
– convenience
– habitual
– unsought
– speciality products
– emergency
Evoked set model
(look at notes, important to know flow)
Buyer’s remorse
post purchase. dissonance.
Common Segmentation Bases
• geographic (location)
• demographic (age, education, etc.)
• psychological (how feel about it)
• behavioural (how they interact with prod.)
market positioning
def. marketing mix variables => target customers have clear, distinct, & desirable understanding of what product is
value proposition
cust. benefits received from product / service. (ideal if no comp. overlap in supplying same benefit (but means that comp. will soon come))
=> monop. only ones with unique value prop. over long term.
positioning methods
value prop.
salient attributes
symbols
competition
Positioning Equation
positioning = target market + differentiation
Questions to ask regarding Marketing Positioning
• points of parity
• points of difference
• frames of reference
Positioning statement
for internal use only (own position and benefit, versus that of competition) – here’s how we’re different