Marketing summary

There are two general approaches to advantages in competition.. (two strategic options)

- Market driven We enter the market and adapt to the market. - Market driving, also resource driven You drive the market, you can change the market.

Now you need to determine your opportunities and threats for the SWOT analysis. What are you looking for, when you look at the economic trends?

Must keep an eye on global, national, regional, and local economic trends. Some measures typically monitored: - Buying power - Income - Debt - Credit Usage Consider foreign exchange trends.

Which are the two "theoretical" perspectives that a company can use, to know, how to deploy scarce resources?

These are: - the market oriented view (MOV) - the resourced based view (RBV) They are perspectives on measuring competitive advantages.

Definition of Marketing

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (Approved 2017)

What is the PESTEL analysis?

straight forward way to catergorize and analyze the important external forces that affects a firm

What is strategy?

An organisations long-term course of action designed to deliver a unique customer experience while achieving its goals. in short: Doing the right things!

What is customer value?

Costumer Value = Relative benefits/ Relative costs

Understanding B2B customer behaviour They buying process in the B2B market

Depending on the process stage, different customer needs must be addressed

Now you need to determine your internal strengths and weaknesses for the SWOT analysis. What are you looking for, when you look at the business relationships?

Includes relationships with: Suppliers Distributors Other business partners Examine: Capacity Quality Value provided

Now you need to determine your opportunities and threats for the SWOT analysis. What are you looking for, when you look at the social-cultural trends?

Key consumer demographic trends include: - Population growth - Population composition: Age Gender Ethnic background Religious background Education Occupation Household size Income

Now you need to determine your opportunities and threats for the SWOT analysis. What are you looking for, when you look at the technological trends?

Key trends include: Internet, "Internet of Things", smart technologies Smartphones and mobile technology, wearables Digital media and big data Machine learning, AI

Now you need to determine your opportunities and threats for the SWOT analysis. What are you looking for, when you look at the political trends?

Political stability, corruption, foreign trade policy...

Now you need to determine your opportunities and threats for the SWOT analysis. What are you looking for, when you look at the ecological trends?

Potential impacts: Availability of raw materials Government regulations Social attitudes

What are objectives?

Specific, quantifiable, realistic targets that measure the accomplishment of a goal over a specified period of time. e.g. "Increase revenues by x% in 2004. Limit increases in overhead costs to y%. Achieve a z% reduction in management staff through increased automation."

What ist the value chain-based view (VBV)?

We argue that the value chain-based view (VBV) provides a way of reconciling this potential conflict, it represents a balanced view of the RBV and the MOV. The RBV focuses on what the firm has, whereas the VBV focuses on what the firm does. In addition, the VBV integrates some elements of the MOV, but it does not ignore the costs of performing the activities.

Understanding B2C customer behaviour What is the consumer market?

«Consumer market consists of individuals and households, who buy products and services for their own use.»

Understanding B2B customer behaviour What is the B2B market?

«Marketing of goods and services to other businesses, governments and institutions is known as business-to-business marekting. It includes everything but direct sales to [end-] consumers.» examples: • Paper cups for McDonald's • Computer chips for Toshiba • Transformer oil for a Power Plant • Fertiliser for Farmers • Accountancy services for Companies

What is a SWOT analysis?

Identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T) SWOT can be used as a strategic tool for gaining competitive advantage. SWOT analysis must result in strategies for S/O, W/O, S/T, W/T.

Now you need to determine your internal strengths and weaknesses for the SWOT analysis. What are you looking for, when you look at the key to success, warning signs?

Keys to Success: Identify special factors most crucial to success. Maintain focus on key priorities. Warning Signs: Indicate potential problems with leveraging the keys to success and performing as planned.

Assessing the internal marketing situation leads to strengths and weaknesses. We need those S/W for the SWOT-Analysis. Which six points do we analyse?

- Mission - Resources - Offerings - Previous results - Business relationship - Key to success, warning signs

Assessing the external marketing situation leads to opportunities and threats. We need those O/T for the SWOT-Analysis. Which six points do we analyse?

- Political-legal trends - Economic trends - Social-cultural trends - Technological trends - Ecological trends - Competitive trends This is the PESTEL analysis with porter's five forces analysis (competitive trends)

Understanding B2C customer behaviour The key questions...

- Who is important? - What are the choice criteria? - When do they buy? - Where do they buy? - How do they buy?

What are the four typical innovation types? (MM08)

-> Modular Innovation Uses the architecture and configuration associated with the existing system of an established product but employs new components with different design concepts • Use of new or different component is key factor of modular innovation • Less dramatic impact than radical innovation Example: Clockwork radio (radios were already there but different power supply, not autonomously as in clockwork radio) -> Incremental Innovation It reflects small continuous improvements in products or product lines. It generally represents small improvements in benefits noticed by the consumer and it does not change significantly the business model or the way the product is consumed. Example: iPhone, smartphones existed before apple entered the market (e.g. Danger Hiptop in 2002 or BlackBerry in 2007) but apple introduced larger touchscreen, app store, and an overall improvement -> Architectural Innovation "The essence of an architectural innovation is the reconfiguration of an established system to link together existing components in a new way. The important point is that the core design concept behind each component-and the associated scientific and engineering knowledge- remain the same. Example: Sony Walkman (all main components existed before already but were used in other products) -> Radical Innovation It represents a drastic change in the way that the product or the service is consumed. It generally, brings a new paradigm to the market segment that modifies the existing business model Example: the evolution of the music CD to digital files in MP3 extension

Marketing Process - four key tasks

1. Analysis Strengths and Weaknesses 2. Planning strategic planning -> Strategy 3. Implementation staffing, allocating tasks and responsibilities, budgeting resources needed to carry out the plans 4. Control sometimes neglected, task of the manager is measuring and evaluating progress against objectives and targets established in plans.

Every company set a goal the want to achieve. They see a potential where they could be in the future. But know they aren't there! There is a gap between performance and potential. How can we close the gap? The resulting goal is to find strategic alternatives for closing the planning gap. Name 4 generic strategies models.

1. Ansoff's Matrix 2. Porter's three (four) generic strategies 3. The Boston Consulting Group Growth-Share Matrix 4. McKinsey Matrix

There are different product components according to Meffert. Which are these 4 benefits that a customer can get from a product? (MM07)

1. Basic benefit > from functional and physical Basic-features 2. Additional functional benefit > from functional and physical additional features 3. Emotional additional benefit > from aesthetic impact and emotional brand value 4. Social additional benefits > from social effects of a product You can add certain product features that can have an impact on the benefits. For example better tires can lead to additional benefit drive noise or curve stability. Or you can improve your engine that also can give the customer a product benefit in case of less consumption.

What are two types of services? (MM08)

1. Core Services: A service that is the primary purpose of the transaction. → A haircut or the services of lawyer or teacher. 2. Supplementary Services: Services that are rendered as a corollary to the sale of a tangible product. → Home delivery options offered by restaurants above a minimum bill value.

What are the four product levels, according to Levitt? (MM07)

1. Core benefit > What is the buyer really buying? 2. Expected product > What does the customer expect beyond the core benefit? 3. Augmented product > What additional features/services exceed customers expectation and help to differentiate the offer from competitors? 4. Potential product (not on the picture) > Which additional features and services could be offered in the future?

There are 3 main pricing strategies: (MM09)

1. Customer Value-based Pricing 2. Competition-based Pricing 3. Cost-based Pricing

There are six main criterias for the segmentation in the B2B market? (TE 5)

1. Demographics > Industry classification > OEM, end-user, MRO > Company size, location, financial info 2. Operations > Technologies > Heavy/light user > Centralized/decentralized 3. Purchasing situation > New task/rebuy > Attitude toward firm > Relationships 4. Vendor/product attributes > Value, quality, reputation > Application 5. Customer variables > DMU/buying centre make-up > Purchase importance > Corporate culture 6. Personal characteristic > Risk tolerance > Loyalty > Personal demographics

typical external factors wich are affecting a company's pricing decisions (MM09)

1. Environmental factors - Government influences and constraints - Inflation - Currency fluctuations - Business cycle stage 2. Market factors - Customers' perceptions - Customers' ability to pay - Nature of competition - Competitors' objectives, strategies, strengths and weaknesses

typical internal factors wich are affecting a company's pricing decisions (MM09)

1. Firm-level factors: - Corporate and marketing objectives - Competitive strategy - Firm positioning - Product development - Production location - Market entry modes 2. Product factors - Stage in PLC - Place in product line - Most important product features - Product positioning - Product cost structure

Mintzberg's 5 P's of Strategy

1. Strategy as Plan: The strategy is made in advance of its implementation and is followed up by actual implementation and development. 2. Strategy as Ploy: This is a specific maneuver intended to outperform a competitor. 3. Strategy as Pattern: Strategy can sometimes be explained in terms of a pattern that emerged rather than something that was preplanned. 4. Strategy as Position: This is represented by finding a niche, providing distinctive product, or by exploiting existing competences to deter competitors. 5. Strategy as Perspective: This refers organizational culture as strategy can be a result of the way a company views itself (e.g. quality production and/or innovation

The typical six phases of product development process. (MM07)

1. Ideation > Analysis of consumer needs and competitive activities, Experiences of the field service and results of goods test institutes, creative techniques 2. Screening > Idea checking with the help of a rating matrix, the profile-, Value scale or point value method 3. Analysis > Profitability analysis using the method of internal interest rate or the present value method, cost and profit analysis with the help of contribution margin accounting 4. Product-development > Development of product concepts, product descriptions or prototypes 5. Tests > Evaluation of the results from phase 4 with the help of Conception tests, store tests, product test panels etc. 6. Introduction > Introduction of the product on the market -> Different to the typical process there is also an other process possible. The Toll (Stage) Gate Process! Every time of reach a gate you have to ask yourself the question "is it still worth to go to the next step or not". benefit: You don't waste that much time and money if you would fail.

There are four main criterias for the segmentation in the B2C market? (TE 5)

1. Sociodemographic variables > Age > Gender > Income > Race and ethnic origin > Religion 2. Behaviouristic > Readiness > Ability and experience > Loyalty > Usage frequency 3. Psychographic > Lifestyle > Personality 4. Benefits sought > Delivery > Product features > Price/Service

How many segments do you want to target? Targeting strategy depends on many factors. There are five main factors. (TE 5)

1. The company's resources. If resources are limited, a concentrated market targeting strategy might make more sense. 2. The degree of product variability. For uniform products, such as apples or steel, undifferentiated marketing may be suited. For products that can vary in design (cars, cameras etc.), more narrow differentiation and concentration is suitable. 3. The product life cycle. For new products, it may be helpful to launch only one version. Undifferentiated or concentrated marketing might make most sense. In the mature stage, a segmented market targeting may be appropriate. 4. Market variability For product where all buyers have the same tastes, buy the same amounts etc., undifferentiated marketing makes sense. 5. Competitors' marketing strategies. If competitors apply differentiated or concentrated market targeting strategies, using undifferentiated marketing may prove to be fatal. However, using a different market targeting strategy may help, especially if it can serve individual customers better by meeting their needs. Then, a concentrated market targeting strategy or micromarketing will work best.

What is he purpose of the "Market segmentation"? (TE 5)

1. We have different market segments that require different marketing programs. 2. We can set target markets, that are homogeneous groups, that are likely to be the most profitable or have the highest growth potential.

Strategic marketing planning process (4 questions needs to be answered)

1. What are we doing? -> Mission statement 2. Where are we today? -> Situational analysis 3. Where do we want to go? -> Strategic objectives 4. How do we get there? -> Strategy

The marketing management process with the SOSMAC approach

1. Where are we now? SWOT, Key Competences, Competitive Advantages, Market share 2. Where do we want to be in the future? Market shares, Customer acquisition and Retention targets, Customer satisfaction targets 3. How do we get there long-term? STP (Segmentation, Targeting and Positioning)- Value proposition Use of strategy tools (Ansoff, BCG, GE/McKinsey) 4. How do we get there mid-term? Marketing Mix (4Ps, 7Ps), Social Media Marketing, E-commerce 5. How do we get there short-term? Who does what and when? Locate responsibilities 6. How do we monitor performance? KPIs, evaluate performance against KPIs

The four levels of strategy are:

1. corporate strategy This level answers the fundamental question of what you want to achieve. 2. business-level strategy This level focuses on how you're going to compete. 3. functional strategy, e.g. marketing strategy This strategy level focuses on how you're going to grow. 4. operational strategy This one focuses on overcoming the flaws of production processes, resource optimization, people, quality and inventory control processes etc

Understanding B2B customer behaviour Different buying situations

> B2B buying behaviour is mainly influenced by buying situations rather than products > There are three main buying types: 1. New task buying 2. A modified rebuy 3. A straight rebuy > Moreover, those buying types can be enhanced with the following criteria 1. Buying volume / buying cost 2. Organisational impact

Understanding B2B customer behaviour The buying centre (decision making unit)

> One of the main differences from consumer buying is that organizational buying usually involves group decision making (known as the "decision-making unit" or as the buying center). > The buying center can formal or informal AND one role can be assigned to many persons and one person may have more then one role Initiators Those who begin the purchase process Influencers/evaluators People who influence the buying decision. Technical personnel are especially important as influencers. Gatekeepers Group members who regulate the flow of information. Frequently, the purchasing agent views the gate keeping role as a source of his or her power. Decider The person who has the formal or informal power to choose or approve the selection of the supplier or brand. Purchaser The person who actually negotiates the purchase. Users Members of the organisation who will actually use the product. Users often initiate the buying process and help define product specifications.

Price as a part of the marketing mix (MM09)

> Pricing is the only element of the marketing mix to generate revenue >Within the marketing mix only the price can be changed rapidly without large cost implication >The marketing objective is not only to sell a product: - much more it is to create value for the customer and the seller - therefore, products should be priced fairly !

Understanding B2B customer behaviour Identifying buyers in organisational markets

> The organisational markets can be segmented in 1. Manufacturers as customers 2. Intermediate customers (resellers) 3. Public sector customers 4. Non profit organisations > Moreover, the organisation size is also influencing the buying behaviour

What is covered in the vision?

A vision statement is what the enterprise want to become. A vision statement should build enthusiasm. It should provoke inspiration. It should stimulate people to care. (Where do we wish to go?)

What are tactics?

Actual procedures and actions taken to successfully carry out strategies.

What are the three main points for the RBV?

Also called the inside-out-perspective: − Here is the focus on the firms core competencies − The RBV suggests that performance is essentially driven by the resources of the organisation − The source of superior performance lies in owning and deploying distinctive, hard to imitate or protected resources

What are the three main points for the MOV?

Also called the outside-in-perspective: − Here is the focus on the customers needs, wants and demands − The MOV also suggests a clear a profound understanding of the competition in the market from the customer's perspective. − In essence, market orientation refers to the way a firm implements the marketing concept.

Which two different types of markets can organizations compete within?

B2B Business • The buyer is an organisation • The buying purpose is -* use in the operation of a business -* manufacture other products -* resale to other business B2C Business • The buyer is a private person • The buying purpose is -* personal use -* consumption

Which are the three special psychological effects on price & demand? (MM09)

Bandwagon Effect > The bandwagon effect is the observation that people often do things because many other people do the same. Without examining the merits, people tend to "follow the crowd" > This leads to the fact that eventually the demand for a product increases if it is demanded by other customers and individuals Snob Effect > The snob effect refers to the desire to own exclusive goods. These goods usually have a high economic value, but low practical value. The less availability, the higher its snob value. > The effect implies that demand for a product declines if it is being demanded by other individuals Veblen Effect > Veblen goods are commodities for which peoples' preference for buying them increases as a direct function of their price. (+ price = + quality) > The implication is that a high price for an object leads to a higher demand than a lower price

Types of E-Commerce

Business-to-consumer (B2C) The model denotes a financial transaction or online sale between a business and consumer. B2C involves a service or product exchange from a business to a consumer. Business-to-business (B2B) Companies doing business with each other such as manufacturers selling to distributors and wholesalers selling to retailers. Pricing is based on quantity of order and is often negotiable. Consumer-to-consumer (C2C) There are many sites offering free classifieds, auctions and forums where individuals can buy and sell. Thanks to online payment systems like PayPal where people can send and receive money online with ease.

Now you need to determine your internal strengths and weaknesses for the SWOT analysis. What are you looking for, when you look at the resources?

Check your resources. What are your assets? - Technical (R&D) - Financial (Creditworthiness) - Human (Abilities of employees) - Marketing (Relationship) - Information systems (Decision support) When you looking at your resources and you know your advantages, you can bundle them to core competences. This competences are definitely a strength! Core competences ... 1. should be difficult to duplicate 2. should provide potential access to a wide range of markets 3. make a considerable contribution to the customer value

Understanding B2C customer behaviour The S-P-R (SOR) model

Consumer behaviour may be described with the stimulus-organism-response model (S-O-R model) S - Stimulus - Culture - Social influence - reference group - marketing mix P - Process (organism) - Psychological factors - Physiological factors - Perceptions and feelings R - Respons - Attitudes and beliefs - Buying behaviour - Buying practices

Understanding B2C customer behaviour Determinants of consumer involvement

Consumer involvement is measured by the degree of importance the product has to the buyer. The two most relevant factors are: 1. Perceived importance of the product 2. Perceived risk associated with its use

According to the procedure of pricing decisions, what are the different aspects in cost-based pricing and value-based pricing? (MM09)

Cost-based Pricing 1. Product 2. Cost 3. Price 4. Value 5. Customer -> more fixed costs, customers that don't care about value Value based pricing is totally different from, or almost the reversal, of cost-based pricing. Value-based Pricing 1. Customer 2. Value 3. Price 4. Cost 5. Product -> premium products

How to Create an Effective Market Positioning? (TE5)

Create a positioning statement that will serve to identify your business and how you want the brand to be perceived by consumers. In sum, you can then take your analysis results and plug them into the following formula to create a positioning statement: 1. For (target customer) 2. Who (statement of need or opportunity) 3. (Product name) is the only (product category) 4. That (differentiation and/or benefit)

Now you need to determine your internal strengths and weaknesses for the SWOT analysis. What are you looking for, when you look at the offerings?

Examining what the firm is currently offering in the way of goods and services: - Affirm the role of each line and item. - Consider how the offerings contribute to relationships with distributors and customers. - Assess fit with mission and resources. To get an image of your current situation of your offerings, you can put them into the BCG Growth-Share Matrix.

Pricing Decisions / Price elasticity of demand There are different levels of price elasticity along the demand curve. Measures of price elasticity commonly range through: (MM09)

Ed = % change in quantity demand / % change in price e < 1 -> price inelastic quantity demanded rises/falls less than price falls/rises in percentage e = 1 -> neutral elasticity quantity demanded rises/falls equal than price falls/rises in percentage e > 1 à price elastic quantity demanded rises/falls greater than price falls/rises in percentage Elastic demand - if demand changes greatly subsequent to small price changes Inelastic demand - if demand changes hardly subsequent to small price changes

Now you need to determine your internal strengths and weaknesses for the SWOT analysis. What are you looking for, when you look at the previous results?

Includes: Sales (dollars and units) Profitability Other financial results (ROI, EBIT, etc.) → Helpful to look for trends in the data. → Helps separate the effective programs from the less- effective programs.

What is the difference between macro and micro level?

Macro-environmental (external) factors are broad forces that impact overall marketing strategy and performance such as: Political-legal, economic, social-cultural, technological and ecological forces. -> PESTEL analysis, to get the O/T Micro-environmental (internal) factors are more direct forces that influence marketing strategies and activities such as: Customers, competitors, channel members, partners, suppliers, and employees. -> S/W analysis

What is ment by "Market segmentation"? (TE 5)

Market segmentation is the activity of dividing a broad consumer or business market, [which normally consists of existing and potential customers], into sub-groups of consumers (known as segments) based on some type of shared characteristics.

During the product mix decision making process, we also have to look at the product lining. At which four aspects can we look at? (MM07)

Product lining is offering several related products for sale individually. A line can comprise related products of various sizes, types, colors, qualities, or prices. Line width > refers to the total amount of product lines that company offers. A diversified product mix can target the maximum amount of customers, however, such amount of product lines require many attentions and focus as each product line targets different groups of consumers and involve individual strategy and management. Line depth > refers to the number of subcategories a category has. Line consistency > refers to how closely related the products that make up the line are. Line vulnerability > refers to the percentage of sales or profits that are derived from only a few products in the line

Now you need to determine your internal strengths and weaknesses for the SWOT analysis. What are you looking for, when you look at the mission?

The mission statement comprise, what the organisation is and what it does. Maybe you can find a strength in your mission statement?

Purpose and Risk of product differentiation? (MM07)

Purpose of Product differentiation: • Take into account the special features of individual segments address differentiated needs • Occupation of shelf space in retail • Improvement / defense of market position • Demonstration of competence Risk of product differentiation : • „ Cannibalization" • Complexity costs • Consumer Confusion

What is relationship marketing (RM)?

Relationship marketing is the ongoing process of identifying and creating new value with individual customers and then sharing the benefits from this over a lifetime of association. It involves the understanding, focusing and management of ongoing collaboration between suppliers and selected customers for mutual value creation and sharing through interdependence and organisational alignment.

What are the different stages of a normal product lifecycle? (MM08)

Stages of the Product Life Cycle 1. Product development • Sales are zero and investment costs mount 2. Introduction • Slow sales growth and profits are nonexistent 3. Growth • Rapid market acceptance and increasing profits. 4. Maturity • Slowdown in sales growth and profits level off or decline 5. Decline • Sales fall off and profits drop

Understanding B2C customer behaviour The consumer decision-making process; 5-Steps

Step 1: Problem identification Consumers' purchase decision processes are triggered by unsatisfied wants or needs. Step 2: Information search Having recognised that a problem exists and might be satisfied by the purchase and consumption of a product or service, the consumer's next step is to refer to information gained from past experience and stored in memory for possible later use. Step 3: Evaluation of alternatives The set of attributes used by a particular consumer and the relative importance of each represent the consumer's choice criteria. Cost, Performance, Social, Availability Step 4: The purchase decision The purchase decision emerges from the evaluation of alternatives. The consumer may decide not to buy and save the money or spend it on a different item altogether. Step 5: The post-purchaseevaluation The purchase evaluation stage results in satisfaction or dissatisfaction.

What is Ansoff's Matrix used for?

The Ansoff Matrix, also called the Product/Market Expansion Grid, is a tool used by firms to analyze and plan their strategies for growth. The matrix shows four strategies that can be used to help a firm grow and also analyses the risk associated with each strategy. Market Penetration: This focuses on increasing sales of existing products to an existing market. Product Development: Focuses on introducing new products to an existing market. Market Development: This strategy focuses on entering a new market using existing products. Diversification: Focuses on entering a new market with the introduction of new products.

What is the BCG Matrix?

The Boston Consulting group's product portfolio matrix (BCG matrix) is designed to help with long-term strategic planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue or develop products. It's also known as the Growth/Share Matrix. The Matrix is divided into 4 quadrants based on an analysis of market growth and relative market share, as shown in the diagram below. 1. Dogs: These are products with low growth or market share. 2. Question marks or Problem Child: Products in high growth markets with low market share. 3. Stars: Products in high growth markets with high market share. 4. Cash cows: Products in low growth markets with high market share

What is the McKinsey Matrix?

The GE McKinsey Matrix comprises two axes. The attractiveness of the market is represented on the y-axis and the competitiveness and competence of the business unit are plotted on the x-axis. Both axes are divided into three categories (high, medium, low) thus creating nine cells. The business unit is placed within the matrix using circles. The size of the circle represents the volume of the turnover. The percentage of the market share is entered in the circle. An arrow represents the future course for the business unit.

What is the concept of marketing?

The achievement of corporate goals (internal) through meeting and exceeding customer (external) needs better than the competition.

In the framework of the product mix, we have to make four decisions. (MM07)

The framework is also called the product policy. The four decisions are: Product variation > improvement or change of already existing products Product differentiation > completion of a product with another product (Line depth) Product elimination > get rid of existing products Product innovation > development of completely new products

The goals of product variation? (MM07)

The goals are.. > Securing the market position through an improved Satisfying consumer needs > Ensuring that a product is up-to-date > Sales and profit growth > Specialization on specific target groups to achieve higher prices > Rationalization of production

B2B Markets

The group of customers that include manufacturers, wholesalers, retailers, and other organisations • Customised products and services, highly complex products • Personal relationships between buyer and the selling firm / salesperson reliance on personal selling • Sophisticated buyers • More rationa l buying; more customer emphasis on risk-reduction; less customer emphasis on self-expressive benefits of brands

What is the basic marketing mix including? 4 P's (MM07)

The marketing goals are realized by 4 instruments. Four instruments comprise the Marketing Mix - the tools are designed and combined to optimal fit segments' needs > Promotion > Place > Product > Price

Understanding B2B customer behaviour Influences on the buying process

The organisational buying behaviour is influenced by 4 major forces: 1. Environmental forces, e.g. growth rate of the economy 2. Organisational forces, e.g. the size and the type of buying 3. Group forces, e.g. the influence of the buying centre 4. Individual forces, e.g. personal preferences

How is the marketing landscape changing today? (company side)

Today, companies face: - growing global competition - more important role of multinational conglomerate - Very liberated markets in some countries (low regulation and legislation) - Technological innovation means: New sources of competition for established products and services

How is the marketing landscape changing today? (customer side)

Today, consumers have: - Better information - More choices - Higher expectations - Better market access, and - More purchasing power. -> Consumers are getting more involved in marketing. -> Consumers demand more transparency.

What is transactional marketing (TM)?

Transactional marketing is a business strategy that focuses on single, "point of sale" transactions. The emphasis is on maximising the efficiency and volume of individual sales rather than developing a relationship with the buyer. The transactional approach is based on the four traditional elements of marketing, sometimes referred to as the four P's: Product -- Creating a product that meets consumer needs. Pricing -- Establishing a product price that will be profitable while still attractive to consumers. Placement -- Establishing an efficient distribution chain for the product. Promotion -- Creating a visible profile for the product that makes it appealing to customers.

Which approach do we use to implement the Market Segmentation in our framework for the marketing planning? (TE 5)

We use the S-T-P approach. 1. Segmentation > Choose variable for segmenting the market > Build a profile of segments > Authenticate rising segments 2. Targeting > Deciding on targeting strategy > Identify which and how many segments should be targeted 3. Positioning > Understand consumer perceptions > Position products in the hearts and minds of the customer > Tailor appropriate marketing mix to satisfy customer needs.

What is covered in the mission statement?

What the organisation is and what it does. The mission statement may change if the company outlives the industry it started in, but it should still tie back to the core values. 1. what the company does for its customers? 2. what the company does for its employees? 3. what the company does for its owners? 4. what the company does for its community? 5. what does the company for the world?

Now you need to determine your opportunities and threats for the SWOT analysis. What are you looking for, when you look at the competitive trends?

You will look at the Porter's five forces analysis. 1. Threat of new entrants (Barriers, Switching cost,...) 2. Bargaining power of buyers (Number of costumers,...) 3. Threat of substitute products 4. Bargaining power of suppliers (Number and Size) 5. Rivalry among existing competitors

different organisational forms of relationship marketing

dyadic relationship: A dyadic buyer-seller relationship that tends to ignore the role of other elements in the distribution channel and the role of other stakeholders. Chain of relationships: The relationship is still dyadic but goes beyond the buyer-seller relationship to include all marketing activities directed towards establishing, developing and maintaining successful relational exchanges in the total vertical value chain. This results in several dyadic relationships along the vertical chain. Networks: A more complex structure of relationships or networks involving three or more actors.

What is Porter's Five Forces Model?

identifies the five most common threats faced by firms in their local competitive environments and the conditions under which these threats are more or less likely to be present

B2C Markets

the name for the consumer market, or business-to-consumer market, which occurs when a consumer is a person or household that buys a product for final consumption B2C markets: • Standardised products, relatively unsophisticated products • Inpersonal relationships between buyer and the selling firm - more reliance on mass market advertising • Buyers growing in sophistication • Often more emotional buying - customer perception of functional, emotional and self-expressive benefits of brands

Understanding B2C customer behaviour Influences on consumers decision making

• Buyers may have similar involvement, but buy different brands for different reasons. • The following influencing factors may lead to a complex decision making process 1. Sociodemographic variables, e.g. social class, culture or life style 2. Psychological variables e.g. needs, attitudes, memory or perception

Important criteria for product elimination? (MM07)

• Economic significance of the product for the company (share of sales, contribution margin etc. and their development) • Market situation of the product (market share, market potential, acceptance by customers, position in comparison to competing products) • Position of the product in the assortment of the company (product range combination, influence of the product on company image, competition to other products of the company) • Use of capacity by the product (production and storage capacities, management capacities) • Future prospects of the product (position in life cycle, expected technological change)

What are Porter's generic strategies?

▪ Overall cost leadership strategy is when a company achieves the lowest production and distribution costs and allows it to lower its prices and gain market share ➢ Only works, if the price is an important criteria for customers ▪ Differentiation strategy is when a company concentrates on creating a highly differentiated product line and marketing program so it comes across as an industry class leader ➢uniqueness, premium price ▪ Cost Focus occurs if a firm's lower cost position enables it to offer a narrow target market and lower prices than the competition ▪ Differentiation focus implies that the product not only has actual uniqueness but it also has a very narrow target market

After you set your target market, it is important that you think about "what should your target market think of you". But why? (TE 5)

➢ Market Positioning refers to the ability to influence consumer perception regarding a brand or product relative to competitors. ➢ The objective of market positioning is to establish the image or identity of a brand or product so that consumers perceive it in a certain way. For example: - A handbag maker may position itself as a luxury status symbol - A fast-food restaurant chain may position itself as the provider of cheap meals

Five Potential Positioning Strategies (TE 5)

➢ Potential Positioning Strategies - Product attributes and benefits: Associating your brand/product with certain characteristics or with certain beneficial value - Product price: Associating your brand/product with competitive pricing - Product quality: Associating your brand/product with high quality - Product use and application: Associating your brand/product with a specific use - Competitors: Making consumers think that your brand/product is better than your competitors -> This is important to establish a brand identity. "what should your target market think of you" -> To have an overview of your current market, a perceptual map may help you