Marketing Management
Buying Decision Process
- Problem recognition: old latop crashed, need new one - information search: where do i go to get information about it - evaluation of alternatives: difference between mac and dell - purchase decision: decision based on the pros and cons of both - post purchase behavior
Overview of buying process
-problem recognition -information search -evaluation of alternatives -purchase decisions -post purchase behavior
Four levels of segmentation
1) Full market coverage 2) Multiple Segment Specialization 3) Single Segment Specialization 4) Individual Marketing
Porter's Five Forces
1) Threat of intense segment rivalry 2) Threat of potential entrants 3) Threat of substitutes 4) Threat of buyers bargaining power 5) Threat of supplies bargaining power
6 steps in marketing research process
1) define the problem, alternatives, objectives, 2) develop the research plan 3) collect the information 4) analyze the information 5) present the findings 6) make the decision
Modern Marketing Information System
1) internal records 2) marketing intelligence 3) marketing research system 4) marketing data support systems
Creative Problem Solving Process
1) more of a qualitative or intuitive approach to making decisions 2) requires "stepping outside the box" to find creative solutions to business problems and opportunities 3) the usefulness of marketing intelligence is only as valuable as the decision-maker's ability to look at the data in a new way and consider new possibilities
Marketing formulation - Porter's generic strategies
1. Cost Leadership - a firm sets out to become the low cost producer in its industry. The sources of cost advantage are varied and depend on the structure of the industry. 2. Differentiation - In a differentiation strategy a firm seeks to be unique in its industry along some dimensions that are widely valued by buyers. 3. Focus - The generic strategy of focus rests on the choice of a narrow competitive scope within an industry. The focuser selects a segment or group of segments in the industry and tailors its strategy to serving them to the exclusion of others.
Market Strategy Development
A company's positioning and differentiation strategy must change as its product, market and competitors change over the product life cycle: Introduction Stage, Growth Stage, Maturity Stage, Decline Stage.
Key Psychological Processes: Motivation
A need becomes a motive when it is aroused to a sufficient level of intensity to drive us to act
Key factors in Demographic segmentation
Age and lifestyle, life stage, gender, income, culture, generation. (VAL's Segmentation system)
Product Characteristic and Classifications
Anything that can be offered to a maker to satify a want or need, including physical goods, services, experiences, events, persons, places, properties, organization, and ideas
Stages in the Consumer Adoption Process
Awareness Interest Evaluation Trial Adoption
Key Psychological Processes: Maslow's hierarchy of needs
Behavior is driven by lowest, unmet need
Key Psychological Processes: Herzberg's two-factory theory
Behavior is guided by dissatisfiers and satisfiers
Key Psychological Processes: Freud's theory
Behavior is guided by subconscious motivations
Marketing and customer value: value delivery process
Choosing, providing, communicating the value
Marketing Dashboard
Collection of metrics that we have. They help us gauge how we are doing in a company
Market segment
Consists of a group of customers who share a similar set of needs and wants
Consumer goods classification
Convenience goods, shopping goods, specialty goods, unsought goods
Product Levels - Value Hierarchy
Core benefit Basic product Expected product Augmented product Potential product
Influences of consumer behavior
Cultural forces, consumer behavior, social factors
Major forces of sales forecasting methods market demand function
Demographic, economic, socio-cultural, natural, technological, political/legal
Marketing Plan Contents
Execute summary, table of contents, situation analysis, marketing strategy, marketing tactics, financial projections, implementation controls
Packaging factors and objectives
Factors: All activities of designing and producing the container for a product Objectives: Identify the brand, convey descriptive and persuasive information, facilitate product transportation and protection, assist at-home storage, aid at-home consumption
Value of Marketing
Financial success often depends on marketing ability. Successful marketing builds demand for products and services, which, in turn creates jobs.
Product/Services Differentiation
Form Features Performance Quality Conformance quality Durability Reliability Reparability Style Customization
Motivational Theories
Freud - behavior is guided by subconscious motivations Maslow - Behavior is driven by lowest, unmet need Herzberg - Behavior is guided by satisfiers and dissatisfiers
Four basis types of segmentation
Geographic Demographic Psychographic Behavioral
Assessing growth opportunities
Intensive growth -- corporate management's first course of action should be a review of opportunities for improving existing businesses. Integrative growth -- a businesses sales and profits may be increased through backward, former, a horizontal integration within its industry. Diversification growth -- several types of diversification are possible -- new products, new technology, marketing synergies with existing product lines, new groups of customers, etc. downsizing and divesting older businesses -- week businesses require a disproportionate amount of managerial attention
Product Life Cycle Stages
Introduction Growth Mature Decline
Labeling, Warrentees, Guarantees
Labeling: identifies, grades, describes, and promotes the product Warrantees: formal statements of expected product performance by the manufacturer Guarantees: Suggest product is of high quality and the company is dependable
Scope of Marketing
Marketing is the activity, set of institutions, and processes for creating, communicating and exchanging offerings that have value for customers, clients, partners, and society at large.
Marketing Metrics
Measures that help marketers quantify, compare, and interpret performance: sales metrics, customer readiness to buy metrics, customer metrics, distribution metrics, communication metrics
Effective Segmentation Criteria
Mesurable, Substantial, Accessible, Differentiable, Actionable
Modern Marketing Management
People, Processes, programs, performance
Priori
Priori is not having to determine segmentation, you think you know it.
Market Testing
Product are tested for variables like trial, first repeat, adoption, and purchase frequency.
Marketing Mix Component's
Product, price, place, promotion
The marketing plan
Strategic (big picture, decision to market online), Tactical (do promotion on facebook)
Marketing Management Defined
The art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.
Consumer behavior defined
The study of how individuals, groups, and organizations select, buy, use and dispose of goods, services, ideas, or experiences to satisfy their needs and wants.
Value equation
Things you get/ Things you pay = Value
Co-Branding
Two or more well-known brands are combined into a joint product or marketed together in some fashion
Nielsen Clarita's PRIZM
Using this we can look at market segmentation in a number of different ways. It classifies more than hald a million US residential neighborhoods into 14 distinct groups and 66 distinct lifestyle segments called PRIZM clusters. (Education and affluence, family life cycle, urbanization, race and ethnicity, mobility)
Legal and Ethical Issues with segmentation
Vulnerable groups, disadvantaged groups, potentially harmful products
Product mix/line/width/depth
Width - refers to how many differenct products lines the company carries length - refers to the total number of items in the mix depth - refers to how many variants are offered of each product in the line consistency - describes how closely related the various product lines are in end use
SWOT external
a business must monitor macroeconomic forces that affect its ability to earn profit. It should track trends and important developments.
SWOT internal
a business should evaluate its internal strengths and weaknesses
Marketing and customer value: core competencies
a source of competitive advantages and makes a significant contribution to perceived consumer benefits, applications in a wide variety of markets, difficult for competitors to imitate
Marketing and customer value: value chain
a tool for identifying ways to create more customer value
Ingredient Branding
an ingredient of a product or service is pulled into the spotlight and given it's own identity.
Definition of Marketing Research
links the customer and public to the marketer through information
Marketing and customer value: central role of strategic planning
managing the businesses as an investment portfolio, assessing the market's growth rate and the company's position in the market, establishing a strategy
Forecasting and demand measurement: Available demand
the consumers who have interest, income, and access to a particular offer. Eligible adults constitute the qualified available market.
Forecasting and demand measurement: Target Market
the part of the qualified available market the company decides to pursue
Forecasting and demand measurement: Penetrated market
the set of consumers who are buying the customers who are buying the copn
Forecasting and demand measurement: Potential demand
the set of consumers with sufficient level of interest in a market offer. However, the interest is not enough to define a market unless they also have sufficiently income and access to the product.