Marketing
Integrated Marketing Communications-
Carefully integrating and coordinating the company's many communications channels to deliver a clear, consistent, and compelling message about the organization and its products- Advertising, Personal Selling, Public Relations, Direct Marketing, Sales Promotion/ P 407
Channel Behavior and Organization-P 344
Channel conflict- disagreements among marketing channel members on goals, roles and rewards- who should do what and for what rewards
Characteristics affecting consumer behavior
Consumer purchases are influenced strongly by cultural, social, personal, and psychological characteristics
Sustainable Marketing Principles:
Consumer-oriented- company should view and organize its marketing activities from the consumer's point of view. Consumer-Value- company should put most of its resources into customer-value-building marketing investments(creating value). Innovative- company needs to continuously seek real product and marketing improvements, new and better ways to do things. Sense-of-mission- company should define its mission in broad social terms rather than narrow product terms. Societal- company should make marketing decisions by thinking about consumer wants, company requirements, consumer long-run interests and society's long run interests. P 596
Buyer Decision Process: 5 stages
(1.) need recognition: the consumer recognizes a problem or need (2.) information search: the consumer is motivated to search for more information (3.) evaluating alternatives: the consumer uses information to evaluative brands in the choice set (4.) purchase decision: the buyer's decision about which brand to purchase (5.) post-purchase behavior: which consumers take further action after purchases, based on their satisfaction or dissatisfaction Clearly the buying process starts long before the actual purchase, and continues long after
Services
are a form of a product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in ownership of anything. I.e.... banking, airline, hotel, retailing, and home repair services
Market segmentation
dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs
Marketing Defined
is managing profitable customer relationships. The aim of marketing is to create value for customers in order to capture value from customers in return. → Twofold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction. P 5
Sustainable Marketing
socially and environmentally responsible actions that meet the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs. P 582
Types of Costs
Variable costs, fixed costs, total costs
Differentiation
Actually differentiating the market offering to create superior customer value
4 P's
-Product: need-satisfying market offering -Price: how much to charge for offering -Promotion: how will you persuade/communicate to consumers to actually buy the product -Place: how that market offering is going to be available to customers
Setting Advertising Objectives P 435
Advertising objective: A specific communication task to be accomplished with a specific target audience during a specific target audience during a specific period of time
Products
Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. Products include more than just tangible objects, such as cars, cellphones. Products also include: services, events, persons, places, organizations, ideas, or a mixture of these.
Break-even Analysis and Target Profit Pricing P 297
Break even pricing: setting price to break even on the costs of making and marketing a product, or setting price to make a target return
Public Relations p 450
Building good relations with the company's various publics by obtaining favorite publicity; building up a good corporate image; and heading off unfavorable rumors, stories and events
1.3 Market Offerings
Consumers' needs and wants are fulfilled through market offerings- Some combination of products, services, information, or experiences offered to a market to satisfy a need or want. Market offerings are not limited to physical Products. They also include Services- activities or benefits offered for sale that are essentially intangible and do not result in the ownership of anything. Examples include banking, airline, hotel, retailing, and home repair services. Experiences- smart marketers look beyond the attributes of the products and services they sell. By orchestrating several services and products, they create brand Experiences for customers. I.E. Disney world Resort, HP personal user experiences, GoPro...
Relationship Building Blocks:
Customer Value and Satisfaction- the extent to which a product's perceived performance matches a buyer's expectations
Marketing channel design
Designing effective marketing channels by analyzing customer needs, setting channel objectives, identifying major channel alternatives, and evaluating those alternatives
Major Pricing Strategies
Good value pricing (offering the right combination of quality and good service at a fair price) Value added pricing (attaching value added features and services to differentiate a company's offers and charging higher prices.) Cost based pricing (setting prices on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk)
Developing Strategies for Growth and Downsizing
Market Penetration vs. Product Development vs. Market development vs. Diversification
Defining a Market-Oriented Mission
Mission Statement: a statement of the organization's purpose-what it wants to accomplish in the larger environment → mission statements should be market-oriented and defined in terms of satisfying basic customer needs Quiz question: Which of the following companies has a market-oriented business definition? Answer: A cosmetic company, whose business definition is: "We sell hope and self-esteem."P 41
The Promotion Mix
P 406 The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relations
Market Offerings
Products, Services, and Experiences
Customer Needs/ wants
States of felt deprivation Wants- the form of human needs take as they are shaped by cultural and individual personality Demands- Human wants that are backed by buying power P 6
Marketing Management Orientations P8
The art and science of choosing target markets and building profitable relationships with them
Macroenvironment
The larger societal forces that affect the microenvironment-demographic, economic, natural, technological, political, and cultural forces P 71
Market targeting
The process of evaluating each market segment's attractiveness and selecting one or more segments to enter
Competitive Marketing Intelligence
The systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment P 105
Experiences
To differentiate their offers, beyond simply making products and delivering services, they are creating and managing customer experiences with their brands or company. Experiences have always been an important part of marketing for some companies, like Disney, Nike, GoPro
Consumer Products
a product bought by final consumers for personal consumption. Marketers usually classify these based on how consumers go about buying them, include: convenience products, shopping products, specialty products, and unsought products.
Marketing Research Process:
systemic approach to understanding the marketing insight of your customers
Value Proposition
the full mix of benefits upon which a brand is positioned → A brand's value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs.
Positioning
the place that your business occupies relative to your competitors in the consumer's mind
