Marketing Principles General Knowledge: Definition: An activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large.
Needs: States of felt deprivation. Wants: The form taken by human needs as they are shaped by culture and individual personality. Demands: Human wants that are backed by buying power. Customer Value: The difference between the values the customer gains from owning and using a product and the costs of obtaining the product.
Customer Satisfaction: The extent to which a products perceived performance matches a buyers expectations.
Exchange: the underlying un derlying theory of marketing, and explains why we need to work in order to get the things we want. The act of obtaining a desired object from someone by offering something in return
Transaction: A trade between b etween two parties that involves at least two things of value, value, agreed-upon conditions, a time of agreement and place of agreement.
Relationship marketing: marketing: the process of creating, maintaining and enhancing strong, value-laden value-laden relationships with customers and other stakeholders
FOUR Ps: PRODUCT PRICE PLACE PROMOTION
Marketing Challenges in the 21st Century: Marketing accountability Implementation of stronger market orientation The new marketing landscape Growth of non-profit marketing Rapid Globalisation Information Technology and electronic marketing The changing world economy The call for ethical behaviour and social responsibility
Marketin 1.
on epts:
Produc on: available affordable produc s. Mgmt stresses increased production and efficiency.
2. Product: Emphasis on high quality performance and f eatures. Mgmt see s to continuou sly improve the product. 3. Selling: consumers wont purchase or want a produ ct unless org maximises marketing/promotion efforts 4. Marketing: goals depend on determining needs and wants in order to increase customer satisfaction
5. Societal Marketing: goals depend on determining needs/wants in order to increase customer satisfaction, with a society/community outlook: emphasis on environmental sustainability.
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Marketin 1.
ro ess Model:
Understand needs
esearch the market/customers/potential customers
-
2.
3.
4.
Design
Mgmt of data & mktg info marketing strategy
-
Select target mark et & segmentation
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Decide
value proposition diff erentiation/positioning
Integrated marketing
program
-
Product/service design & branding
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Pricing
-
Distribution
-
Promotion
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Essentiall y 4 or 7P s. Other Ps: Process, Physical evidence, Personnel
Build profitable relationships
M
-
5.
and wants
Partner relationship Mktg relationships
Capture
Value
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Create
profits, loyalty
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Capture
customer lif etime value
-
Increase
market share
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Strategi 1.
2.
lanning Strategic fit between goals & capabilities & changing opportunities
Planning -
Strategic plans
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Marketing plans
Implementation Carry out plans
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3.
Control
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Measure results
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Evaluate ake corrective action Process begins again (continuou sly).
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4. y
Analysis
takes place at each step
Marketing Plans 1.
Executive Summary
2.
Current
mktg situation: distributions, microenvironment, product, market, competition
3. SWOT & Issue analysis 4. Ob jectives: financial & mktg goals: sales goals, market share, profit goals 5. Mktg strategy: Mktg approach Broadly 6.
Action
Programs: specific programs for specific ob jectives
7. Pro jections: profit/loss statement 8. y
Controls: monitoring
Macro environment: 1.
Demographi c
2. Economic 3.
Natural
4. Technologi cal 5. Political 6.
Cultural
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Marketing research process 1.
Defining probl em/research
2.
Developing r esearch
-
-
Determine
ob jectives
plan for collecting info
specific needs
i.
Demographi cs
ii.
Consumer
iii.
Forecasts
attitudes
ather secondary data info already exists, initially gathered for another purpose i.
Internal
sources
ii.
Govt publications
iii. Periodicals/books iv. -
Commercial data
Plan primary data collections i.
Approaches
a) Observational b) Surveys c) Experiments
ii.
Contact
methods
a) Mail b) Telephone c) Personal
iii.
Instruments
a) Q uestionnaire ces people metres, scanners b) Mechanical devices -
Presenting the plan i.
3.
4.
Implementing
Including
costs & time frames
research plan
-
Collecting
date
-
Processing info
-
Analysis info
gathered
Interpretation and reporting
of finding s
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Consu er Behaviour 1.
Marketing Stimuli 4/7 Ps
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2. Other Stimuli External Forces
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3.
4.
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Buyers
black box
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Buyer
characteristics
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Buyer
decision process
Response
-
Product/service choice
-
Brand
-
Dealer
-
Timing
choice
Bu er Characteristics 1.
Internal
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Psychologi cal i. Motivations ii. Perceptions
-
iii.
Learning
iv.
Belief s
Personal i.
Age
ii.
Lif e
cycle
iii. Occupation iv. Education v. Economic status vi.
estyle Lif es
2. External buyer environment -
Cultural
i.
Culture
ii. Social class -
Social
i.
Household
ii.
Ref er ence
groups
iii. -
Roles/status
Marketing efforts i. Ob jectives ii. Strategies iii. Mktg mix
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Environmental influences i. Economic climate ii. Technology iii. Political
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Bu er Decision Behaviour 1.
2.
3.
Compl ex Buying
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High Involvement
-
Signifi cant diff erences between brands
Dissonance Reducing
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High involvement,
-
Little
diff erences between brands
Habitual
-
Low
involvement
-
Few
diff erences
4. Variety Seeking -
Low
involvement
-
Signifi cant diff erences
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Bu er Decision Making Process (Existing product) 1.
Need
recognition
2.
Information
Search
-
Personal ref erence points
-
Commercial
sources
3. Evaluation of alternatives 4. Purchase decision 5. Post purchase behaviour
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-
Satisfaction levels
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Repurchases
Bu er Decision Making Process (New product) 1.
Awareness
2.
Interest
3. Evaluation 4. Trial 5.
Adoption
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Three Stages 1.
of Marketing
Mass marketing: mass produced, mass distributed, mass promoted 1 product to the whole market
2. Product variety mktg: 2+ products to diff erent group with diff erent marketing strategies 3. Target mktg: identification of segments, 1 chosen to target y
3
steps of t of target marketing:
1.
Market segmentation: distinct groups of buyers with diff erent needs & behaviours -
Indentif y
bases for segmenting
-
Develop profiles
of segments
2. Market targeting: selecting most attractive segment to target -
Develop measures
of segment attractiveness
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Select target segments
3. Market position: setting competitive positioning (customer perception of value) & mktg mix
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-
Develop positioning strategy
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Develop
for each segment
mktg mix for each target segment
Segmentation: 1.
Geographical
-
2.
Region, City
size, Density, Climate
Demographic:
-
Age,
Sex, Family size, Lif ecyc ecycle, Income, Occupation, Education, Religion, Nationality
3. Psychographic: -
4.
Behavioural:
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Socio economic, Values, Attitudes, Lif es estyle, Personality
Purchase occasion, Benefits sought, User status, Usage rate, Loyalty
Diff ere erentiation/Positioning: the way a product is defined/perceived by consumers
Positioning strategies: -
Product attributes
-
Benefits
-
Usage
occasions
1.
-
Users
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Against Competitors
-
Away
-
Product classes
Identif y
from competitors
customer value diff erences i.e. Competitive Advantage
2. Select the right competitive advantage 3. Select overall positioning strategy 4. Positioning Statement y
Perceptual Map:
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Organisation diff ere erentiation by: 1.
Product Diff erentiation -
Features,
performance, consistency, durability, reliability, reparability
2. Services Diff erentiation -
Delivery,
installation, tallation, repair services, customer training, consultation
3. Personnel Diff erentiation -
4.
Image
Highly
essionalism, knowledgeable, accuracy trained, courteous, prof ess
diff erentiation
-
Image
constructs a strong, singular, distinctive message of org/product
-
Takes time: golden arches, apple, red kangaroo - from persistence in the market
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Endorsements: high profil e people able to convey the distinctive message
PRODUCT: Definition: Anything
that can be off ered to a market for attention, acquisition, use or consumption
that might satisf y a need or want. It includes physical ob jec ts, services, persons, places, organisations and ideas. Three levels of Products: Core
Product problem solving services or core benefit that consumers are really buying
Actual Product
quality level, f eatures, styling, brand name & packaging
Augmented Product additional consumer
services & benefits built around the core & actual
Product Classifications: Consumer Products: bought b y
final consumers for personal consumption.
Convenience: bought fr equently, immediately,
with minimum comparison and effort
Shopping: process of selection, comparison & purchase Specialty: unique characteristics, brand ID, significant group of bu yers willing to mak e a special purchase. E.g. luxury cars Unsought:
consumers either dont know about or dont think about purchasing, e.g. lif e
insurance. B2B Products:
bought for furth er processing or for u se in conducting a business.
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Concepts
relating to mark eting strategies e.g. Product Lif e Cycle
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Bling H2o Case Study
