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.