Marketing Concepts and Strategies

Definitions: Exchange: is the act of obtaining a desired object by offering something in return. Marketing Myopia: paying more attention to the specific products than to the benefits and experiences produced (Greater focus on current wants than the underlying needs) Marketing Management: Choosing target markets and building profitable relationships Market Segmentation: refers to dividing the markets into segments of customers. Target Marketing: refers to which segments to go after Value Proposition: the company must decide how it will differentiate and position itself in the marketplace. Traditional Making a sale Abundance of products in the nearby shopping centers Television, magazine, and direct-mail ads Contemporary       Satisfying customer needs Imaginative Web sites and mobile phone apps, blogs, online videos, and social media Reach customers directly, personally, and interactively Markets    All actual and potential buyers of a products Sellers and Consumers market Customer-managed relationships Designing a Customer Value-Driven Marketing Strategy Customer value-driven marketing strategy  Once a company fully understands its consumers and the marketplace, it must decide which customers it will serve and how it will bring them value. Designing a winning marketing strategy Target market? Value proposition? Marketing 4P's Product: Price: Promotion: Place: Misson Statement Statement of the organization’s purpose Market oriented—defined in terms of satisfying basic customer needs Emphasize the company’s strengths Focus on customers and the customer experience Growth Share Matrix Evaluates a company’s SBUs in terms of market growth rate and relative market share Problems with Growth Share Matrix Difficult, time consuming, and costly Difficult to define and measure Provides little advice for future planning Big data: the huge and complex data sets generated by today’s technology infrastructures Require different organizational and analytics methods than traditional research data Concerns Marketers need better information, not necessarily more information Establishing causality The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situa problem •Can be aided by outside resources •Balance between systematic and “just-in-time” research is needed What is the specific (or general) problem being addressed? Objectives can be ... •Exploratory research •Descriptive research •Causal research Market segmentation: dividing a market into distinct groups based on needs, behaviors, and other characteristics  Necessary as different groups may need different marketing strategies Market Targeting  Evaluating each segment and choosing one or more to enter Market Differentiation  Distinguishing your unique value among existing market offerings Market Positioning  Arranging for your offering to occupy a unique place relative to existing offerings  Positioning is about how customers perceive your offering Segmenting Consumer Markets Geographic  Simply location Demographic  Age and life-cycle stage  Gender  Income Psychographic Behavioral  Occasions  Benefits sought  User status  Usage rate  Loyalty status Requirements for Segmentation  Attributes of relevance must be measurable  The market segments must be accessible to be reached and served  also substantial or large/profitable enough to serve  and differentiable: conceptually distinguishable and able to respond to different marketing m  actionable in terms of effective marketing programs can be designed for attracting and servi these segments  Product and Branding      A product is anything that can be offered to a market for attention, acquisition, use, or consump that might satisfy a want or need A service is an activity, benefit, or satisfaction offered for sale; it is intangible and does not resu ownership of anything                Product Life Cycle: The course that a product’s sales and profits take over its lifetime Product quality is one of the marketer’s major positioning tools. A brand is a name, term, sign, symbol, or design (or a combination of these) that identifies the m seller of a product or service Packaging concerns the activities of designing and producing the container or wrapper for a pro Brand equity consumer perception dimensions: •Differentiation •Relevance •Knowledge •Esteem Brand value is the total financial value of a brand. For a marketing orientation, better name might be demand chain Upstream partners Supply parts, raw materials, and information needed to produce a product or service Downstream partners These look toward the customer and are a vital link between the firm and customers Marketing channels Marketing Channels: Set of interdependent organizations that help make a product or service available or consumption by the consumer or business user Pricing depends on whether a company works with national discount chains, uses high-quality specialt or sells directly online Success with imaginative distribution systems have benefited companies Pros of advertising: can reach a lot of a people for a low cost. Cons of Advertising: consumers wants to avoid ads Advertising •Can reach masses of geographically dispersed buyers at a low cost per exposure •Can be repeated many times •Can be connected with online and other efforts •Very expressive; hits many senses •Consumers view advertised products as more legitimate Personal Selling •Effective when building up buyers’ preferences, convictions, and actions •Adjustments to know preferences can be updated in realtime •The customer usually feels some need to respond •Yet, sales forces require a long-term commitment; much more than advertising •Also expensive: US companies spend 3x more on personal selling than Advertising Sales Promotion •Coupons, discounts, contests, and premiums •Invite and reward quick responses •Can boost sagging sales and dramatize product offerings •Less effective than the other two strategies Public Relations •Very believable and credible •Message gets to buyers as “news and events” rather than a salesdirected communication •Often underused Direct and Digital Marketing •More targeted and directed to a specific individual •Immediate and personalized •Messages can be personalized and tailored in real time •Can be interactive or update based on interactions Push strategy: using the sales force and trade promotion to push the product through channels Pull strategy: a promotion strategy that calls for spending a lot on consumer advertising and promotion to induce final consumers to by the product Product advertisements: focused on selling a product or service Institutional advertisements: to build goodwill or an image for an organization rather than promote a sp product Creative concept: the compelling big idea that will bring an advertising message strategy to life in a distinctive and memorable way Message Execution Styles • Slices of life: This style shows one or more “typical” people using the product in a normal setting. • Lifestyle: This style shows how a product fits in with a particular lifestyle. • Fantasy: This style creates a fantasy around the product or its use. For instance, many ads are built dream themes. • Mood or image: This style builds a mood or image around the product or service, such as beauty, lov serenity. • Personality symbol: This style creates a character that represents the product. • Technical expertise: This style shows the company’s expertise in making the product. • Scientific evidence: This style presents survey or scientific evidence that the brand is better or better than one or more other brands. • Testimonial evidence or endorsement: This style features a highly believable or likable source endors product. Sales promotion targets • final buyers -> consumer promotions • Retailers and wholesalers -> trade promotions • Business customers -> business promotions • Members of the sales force -> sales force promotions Consumer promotions •To urge short-term customer buying or boost customer brand engagement Trade promotions •To get retailers to carry new items and more inventory, buy ahead, or promote the company’s products and get more shelf space Business promotions •To generate business leads, stimulate purchases, reward customers, and motivate salespeople