MGT 8803 - Marketing

Marketing

The creation and satisfaction of demand for a product/service

average cost pricing

means adding a reasonable markup to the average cost of a product

Buyer Journey

Discovery (loosening of status quo, committing to change) Consideration (exploring possible solutions, committing) Decision (justifying decision, making selection)

positioning statement

For (our target market), (our brand) of all (product type) delivers (key benefits or point of differentiation) because (our brand) is (reasons to believe).

Economic Environment

Global Economy, Rapid Change, Interest rates

Product Planning

Making decisions about the features and services of a product or idea that will help sell the product.

Promotion types

- Personal Selling - Advertising (mass selling) - PR and Publicity (mass selling) - Sales Promotion

Elements of Product Planning

-product idea -branding -packaging -warranty -product classes

Customer Market Model

1. Awareness 2. Engagement 3. Acquisition 4. Customer segmentation (differentiate between segments of customers) 5. Customer retention 6. Support & Advocacy

Consumer Product Classes

1. Convenience 2. Shopping 3. Specialty 4. Unsought

Segmentation Steps

1. Define the Market (all possible customers) 2. Use Variables to Divide Market into Segments 3. Select Segments to Target 4. Develop a marketing mix for each selected segment/Use 4 Ps to Position & Build Performance

Improved Product

Product with high total cost and low sales at inception, where sales ultimately jump way above total cost

The 4 Ps

Product, Price, Place, Promotion

Retailer types

Supermarkets, Specialty shops, vending/c-stores, internet

Indirect Distribution

A channel of distribution in which goods and services move from the producer to the channel members and then to consumers or industrial users

Oligopoly

A market structure in which a few large firms dominate a market

Strategy

A set of ideas that outline how a product line or brand will achieve its objectives.

Tactic

A specific action or method that contributes to achieving a goal

Direct Distribution System

allows the product to reach the intended final user of their product by distributing the product directly to the customer. There are no other parties involved in the distribution process that take ownership of the product. The direct system can be further divided by the method of communication that takes place when a sale occurs.

Customer Lifetime Value (CLV)

approximate worth of a customer to a company in economic terms; overall profitability of an individual consumer

adoption process

awareness, interest, evaluation, trial, adoption

B2B Marketing

business-to-business marketing; the process of selling merchandise or services from one business to another

combined target market approach

combining two or more submarkets into one larger target market as a basis for one strategy

market penetration

company growth by increasing sales of current products to current market segments without changing the product

Geographic Dimensions

region of world, county, region of country, city size

multiple target market approach

segmenting the market and choosing two or more segments, and then treating each as a separate target market needing a different marketing mix

single target market approach

segmenting the market and picking one of the homogeneous segments as the firm's target market

Firm's Marketing Program

target market + marketing mix = marketing strategy, + time related details = marketing plan, + other marketing plans = firm's marketing program

Advertising Types

agricultural, industrial, trade, professional

Product lifecycle stages

1. Introduction 2. Growth 3. Maturity 4. Decline

Promotion Methods

- Informing - Persuading - Reminding

Skimming vs. Penetration

Apple vs. Android

"Me too" Product

products essentially similar to something already on the market, total cost just under sales

Pricing Objectives

profit oriented, sales oriented, competitor oriented, customer oriented

Marketing Functions

- Buying - Selling - Transporting - Market Information - Risk Taking - Storing - Financing - Standardization & Grading (Sorting products)

customer profile/personas

- Demographics - Geographic - Psychographic - Behavioral - RFM (Monetary, Frequency, Recency)

Product Development Process

1. idea generation 2. concept testing 3. product development 4. market testing 5. product launch 6. evaluation of results

Business Product Classes

1. installations 2. accessories 3. raw materials 4. components 5. supplies 6. professional services

how long can a product be called new?

6 months

Marketing Plan

A written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected or pro forma income (and other financial) statements.

Marketing Environment

All customer needs => some generic market => one broad product market => homogeneous product market => choose {single target market, multiple target market, combined target market}

Steps in Marketing

Analyze Needs, Predict Wants, Estimate Demand, Determine Where, Estimate Price, Decide Promotion, Estimate Competition, Provide Service

Positioning

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

AIDA model

Attention, Interest, Desire, Action

5 Cs of Marketing

Company, Customers, Collaborators, Competitors, Context

Marketing Mix

Controllable variables the company uses to satisfy the target group. (4 Ps)

Generic market definition

Customer (user) needs + Customer types + Geographic Area

Legal Environment

Customer protection, Safety (CPSC, FDA, etc.)

Cultural and Social Environment

Demographic data, health/eco consciousness, fads/trends

Marketing v. Production oriented managers

Marketing oriented manages see everyone as different and practice target marketing, whereas production oriented managers practice mass marketing as everyone is the same

Advertising Mediums

Movies, TV, video games Newspaper, direct mail, magazines Sports Internet

Monopoly

One firm controls the market

Planning Grids

Plots industry attractiveness v business strength (high, medium, low), pursue high/medium quadrant activities

Political Environment

Political Stability, Trade Policy, Labor Law

Price Element of the Marketing Mix

Price objectives, price flexibility, price over the life cycle, discounts and allowances, geographic pricing terms, competition

Digital Marketing

Uses all digital media, including the Internet and mobile and interactive channels, to develop communication and exchanges with customers

Monopolistic Competition

a market structure in which many companies sell products that are similar but not identical

Target Market

a set of buyers sharing common needs or characteristics that the company decides to serve

Differentiation

actually differentiating the market offering to create superior customer value

channel specialists

adjust quantity discrepancies by accumulating and bulk-breaking

Types of Promotion

advertising, public relations, sales promotion

Demographic Dimensions

age, gender, family structure, social class and income, race and ethnicity, occupation and education

buying emotions

control, self-achievement, nurturing

External Environment

cultural & social, economic, political & legal, technological

Product market definition

customer needs + customer types + geographic area + product type

Criteria for Segmentation

customers roughly alike, different from other customers, large enough to be profitable, identifiable and measurable, accessible, company must be able to adjust responsively to segment

Direct Environment

customers, company (firm resources and objectives), competitors

Segmentation Dimensions

demographic, geographic, and behavioral.

customer segmentation

divides a market into categories that share similar attributes such as age, location, gender, habits, and so on

Buying Influences

economic, psychological, sociological, purchase

adoption curve

innovators, early adopters, early majority, late majority, laggards

Behavioral Dimensions

needs, benefits sought, thoughts, rate of use, purchase relationship, brand familiarity, kind of shopping, type of problem solving, information required

buying center

the group of people typically responsible for the buying decisions in large organizations

Pure Competition

the market structure that exists when there are many small businesses selling one standardized product

buying center members

users, deciders, influencers, buyers, gatekeepers