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MARK 1120

MARK 1120 Introductory marketing 4 P’S Macro environment How marketers make sense of the world -culture: why people buy -demographics: income -social trends: technology & internet -economy-recessionary -political and legal environment MARKETING STRATEGIES - chapter 2 “beyond the plan”▯ ▯ ▯ ▯ ▯ ▯ ▯ PLANNING PHASE Step 1: business mission & objectives Step 2” situation & analysis = SWOT Step 3: Identify opportunities ▯ -segmentation ▯ -targeting ▯ -positioning Step 4: implement marketing mix ▯ -product ▯ -place ▯ -price ▯ -promotion Step 5: evaluate performance using marketing metrics M&O: Definition of mission! Not too specific so that there is no option of exploring Has to be inspiring, e.g. Power talk SWOT: Strengths and weaknesses are internal - on the company Opportunities and threats are external outside world MADE UP COMPANY - THE BODY SHOP STRENGTHS National and global recognition Natural resources Diversity within all age groups NEGATIVE Lack of energy in stores Lack of promotion Lack of customer service THREATS Limited access to scare resources OPPORTUNITIES: Worldwide expansion I&E using STP - implementation Segmentation Targeting - Positioning - HOW YOU WANT CONSUMERS TO SEE YOUR BRAND IMPLEMENTATION PPPP = target marketing & positioning Price and Value for Money - customer perception of value - Price is only a part of value Target a good market with growth* Online pricing has made markets transparent Place and Value Delivery Product must be readily accessible WHY is this retailer growing?? Wide product Well distributed Great customer treatment Promotion and Value -Television - Radio - Magazines - Sales force - New media Evaluation performance and make adjustments (dogs, cows, stars, cash cows) Market growth rate & market shares High market rate but slow growth - take cash to places that have potential to expand market share Low growth rates - dump PROCTOR & GAMBLE GROWTH STRATEGIES Turning around to grow. Selling more - market penetration Expansion- new market same product - market development- geographic development Product development - offer something new e.g. Oatmeal cake timmies Diversification - taking a risk e.g. Making ice cream but selling clothes MARKETING PENETRATION -existing marketing mix -existing customers E.g. Safeway MARKET DEVELOPMENT What can a company do to grow PRODUCT DEVELOPMENT New p/s + current target market DIVERSIFICATION New p/s + new market segment ENTREPRENEURIAL MARKETING -visions -high quality -popular concept SUSTAINABLE COMPETITIVE ADVANTAGE -USP- UNIQUE SELLING POINT What we offer, that no one else offers - locational excellence - Operational excellence - Product excellence - Customer excellence ------------------------------- CUSTOMER VALUE CUSTOMER EXCELLENCE -Retaining loyal customers -Customer service E.g. Walt disney OPERATIONAL EXCELLENCE Efficient operations --> excellent supply chain management E.g. walmart PRODUCT EXCELLENCE Achieving effective branding and positioning E.g. Apple LOCATIONAL EXCELLENCE LOCATION LOCATION LOCATION! STAPLES CS 1. What is staples brand promise 2. Describe the 4 P’s for staples 3. Do a SWOT for staples- used research 4. Describe staples target market as you see it- offices and small business 5. Describe staples positioning as you see it- friendly easy complete solution to office needs 6. Suggest at least 2 growth strategies for Staples- expansion and customer loyalty CLASS 3 ---- CHAPTER 3 Analyzing The targeting market Microenvironment is the company itself Coke - owns the whole bottling network thus as a core comp they control the bottling Competitors Know what they are doing -indirect and indirect competitors -know strengths and weaknesses -competitive intelligence (CI) used to collect and synthesize info CORPORATE PARTNERS -firms are part of alliances -align with competitors -JIT delivery systems MACRO ENVIRONMENT -culture -country culture vs. Regional culture -demographics eg age, GENDER, income, generation, education - provides an easily understood snapshot of the typical consumer in a specific TM GENERATIONAL COHORTS -technology▯ ▯ ▯ ▯ -none -accessibility ▯▯ ▯ ▯ - -eco friendly -brand conscious ▯ ▯ ▯ INCOME -purchasing power is tied to income -statistics canada -many middle class families feel the decline in purchasing power in the recent years Education Education is related to income GENDER Male/female roles have started to shift E.g. Men do groceries SOCIAL TRENDS - green consumers - Privacy concerns--facebook settings - do not call - do not email - identity theft - Time-poor society - people have less time so frozen foods etc More choice with leisure time Many consumers multitask as opposed to just watching tv Technology Has impacted marketing - new products - New forms of communication - New retail channels Economy -foreign currency fluctuations - combined with inflation and I rates affect a firms ability to market g&s Political/Reg Environment -competition act - consumer packaging and labeling - foods and drugs act - Access to info act - NAFTA?? MICRO - competition, corp partners, co`mpany BB - mission - phones Comp- in trouble with apple, and unhappy with customers MACRO - CDSTEP CLASS 4 ---- CHAPTER 4 Cooperate social responsibility KELLOGG - too much salt in their cereals Ethics - ethical climate in the workplace VALUES - establish - Share - Understand RULES - management commitment - Employee dedication CONTROLS - rewards - Punishments CMA CODE OF ETHICS - generally accepted code in marketing - Flows form general norms of conduct to specific values - Subareas within marketing have their own code of ethics to deal with specific issues WHY PEOPLE ACT UNETHICALLY Diff values or circumstance PRIVACY Id theft and privacy CSR Giving back in the community and promoting their brand too Marketing research firm issues Gather info and identify stakeholder 3. Brainstorming alternatives 4. Course of action KELLOGG'S Planning phase - the mission / vision Mission statements are used to guide a SWOT analysis Implementation phase Control phase Google vs CHINA SHOULD google have simply followed Chinese laws and ignore US ethical standards and business practices THE 6 TESTS OF AN ETHICALACTION The publicity test -- look good in media The moral mentor - would the person I admire the most want to see this The admired observer would the person I admire want to see this The transparency test - could I give a reason SCENARIO 1 Ethical issues - misleading and decieving Why would a firm use it -get someone to answer the phone -unethical to pay your bills Customers will respond -angry Would you advise purchasing this service - NO SCENARIO 2 Is this an inappropriate target market? - why are you going after poor people, they still need to buy those things Could you argue that the firm provides a valuable service to this market - yes you could, they aren't praying on vulnerable people but are giving them a credit to buy these things that they couldn't otherwise afford Would you advise the cataloguer to peruse this new strategy? CLASS 4 CSR - corporate social responsibility CHAPTER 4 Marketing research Techniques and principles for systematically collecting, recoding, analyzing and interpreting data that can aid decisions involved in marketing goods, services or ideas. E.g the chair, kids play area etc... 1. Define research problem and objectives 2. Design the reproach project 3. Collect data 4. Analyze data 5. Present action plan i. What info is needed to answer the specific questions - how should info be obtained ii. Type of data -- type of research : primary/ secondary. Has there been research on this done before? Don’t reinvent if done. Then go to primary - personal iii. Exploratory research - projective techniques e.g. -observation - in depth interview - Focus group - Social media - Projective technique - what du think Conclusive research - answer the Q yes or no Either DESCRIPTIVE OR EXPERIMENTAL -experiments -Scanner - walmart -Survey - takes time to come up with good q’s Unstructured - e.g. Descriptions structured- give it a rank 1-5(easier) iv. Converting data into info to explain predict/evaluate a particular situation V. Presenting - executive summary, charts etc.. RITZ CHIPS 1. What was the problem or objective for kraft in doing market research -wanted to increase brand volume- extension What did their secondary research reveal --crackers are for old people, chips sales grew twice as much What finding helped them position the new product? - winter summer, the texture. The buttery flavor was needed. Use toasted instead of baked What decision was made regarding store placement and why? - wanted to take advantage of the good standing of their brand and place it beside their What role did market research play in the process of developing the ritz chips? -used bold fonts, bags, textures of chips etc... Case study Chapter 5 CONSUMER BEHAVIOR Why do people buy 1 need recognition 2. Search for info 3. Look at alternative and compare 4. Buy 5. Decide satisfaction Involvement - a lot of perceived rick Factors that affect decisions Social Situational Physiological Decision heuristics- mental shortcuts - e.g. Price CHAPTER 6 Business to business marketing - B2B - RBC B2b b2c Who is the end user? Difference - * question on test!!!!!!! MANUFACTURERS OR PRODUCERS Resellers Manufacture -> reseller -> retailer (all b2b) Institutions - e.g. G UNI PURCHASING How can a unni reduce its environmental impact through its purchasing?? Using recycled paper Spend 240B buying G&S - have a very strict contract - tenders Some firms specialize in selling to The G CHARACTERISTICS OF BUSINESS MARKETS Market Characteristics--> I.D for business products is derived - track of what consumer wants II. Fewer customers, more geo concentrated, and orders are larger III. D is more inelastic, fluctuates more and more frequently E.g costco only supplies whats demanded Product Characteristics --> I. Products technical in nature, purchased based on specifications II. Mainly raw and semi finished goods; e.g.lumber and jean material III. Heavy emphasis on delivery time, technical assistance after sale service. Financing Buying Process Characteristics--> I.Buying decisions more complex II.Competitive biding, negotiated pricing, complex financial arrangements III.Qualified, professional buyers - more formalized buying process IV.Buying criteria and object specified V. Multiple participants in purchase decisions Marketing Mix Characteristics I.Direct selling and physical distribution often effect B2B BUYING PROCESS 1. Need recognition 2. Product specification 3. RFP- request for proposal Process - “ how will you satisfy our need” 4. Proposal analysis and supplier selection 5. Order specifications 6. Vendor/ performance assessment I.Can be generated internally or externally II.Sources for recognizing new needs: suppliers, sales, competitiors I.Suppliers use to develop proposals II.Can be done collaboratively with suppliers I. Often several vendors are negotiating against each other II.Considerations other than price play a role in final selection - cultural I.Firms place orders II.The exact details of the purchased are specified I.Vendor/suppliers analysis- brand, delivery dates, quality, ease of ordering FACTORS AFFECTING THE BUYING PROCESS The buying centre, organizational culture, buying situations Buying centre; influencer, decider, buyer, user, gatekeeper(finance), initiator Buying Situations - purchase for the first time - Likely to be highly involved - The buying centre will prob use all 6 STEPS IN THE BUTING PROCESS -Purchasing a similar product but changing specs - Current vendors have and advantage -additional unit have been previously purchased -not B2B CASE STUDY ---- DOLE 1. What is doles first step in B2B buying process? Growing smoothie trends - growers cant keep up with volume or if there is a quality issue. 2. What does dole do next - specification Q&A teams went out 3. Whats the rfp processes - word of mouth - bid on a project prevents monopolies, 3 selections 4. What happens to dole in the selection phase - send out inspectors 5. No sweatshop labour - weight , taste, sugar, texture BUSINESS REPORTS -what did you do? -why did you do it? nd -what has changed? 2 week CHAPTER 7 - STP 1. Establish overall strategy or objectives -consistent with mission statement -derived from mission and current state 2. Profile segments -geographic: country, province, urban etc REGIONAL -demographic; age, gender, income, education - finer you get the more expensive it gets -psychographic; lifestyles, values, self concept -behavioral: benefits sought, usage rates, user status, loyalty , prospective etc ----------google vals---------------neighborhood scout----------- 3. Evaluate segment attractiveness -who is in their market - are the segments unique - Does each segment require require a unique marketing mix - Reachable --> knows the product exists, understand what it can do, recognize how to buy - Responsive --> react +ve to firms offering, move towards the firms p/s, accept the firms value proposition - Substantial and profitable --> size matters, too small a segment is insig, not profitable 4. Selecting a target market - you are a marketing manager for a denim co and need to choose a target market for a new line of jeans. How do you choose - Segmentation strategy --> mass/ differential/concentrated-niche-lulu/ 101 5. Identify and develop positioning strategy -positioning methods -value -- the relationship of price and quality -product attributes > close to home > good academic rep > good financial age > did we mention cute gus BENEFITS AND SYMBOLISM - brands COMPETITION Position against a specific competitor Position against an entires product classification POSITIONING STEPS - Determine consumers perceptions and evaluations in relation to competitors - identify competitors positioning - Determine consumer preference - Select the position - Monitor the positioning strategy PERCEPTUAL MAP - ********* MIDTERM REPOSITIONING - whirlpool; new design - Stuff detergent; new message - Elizabeth arden; new faces CHAPTER 8 - DEVELOPING NEW PRODUCTS INNOVATION AND VALUE - changing customer needs..phones - Fashion cycles...clothes, silly bangs - Market saturation... Sold all they can do and cannot do more in current conditions - Managing risk through - WHY RISK THROUGH DIVERSITY New products introductions -pioneers radically change and consumer preferences - discontinues innovation is very rare Adoption cycle - depends on culture What affects the speed of adoption for an ipod Using the diffusion of innovation theory -relative advantage -Compatibility - observability - Complexity and friability(feeling the difference - try before you buy) ----------------------------- Factors affecting product diffusion HOW FRIMS DEVELOP NEW PRODUCTS 1. Idea generation - development of viable new product 2. Concept testing -testing the new product idea among idea among a set of potential customers 3. Product development - development of prototypes 4. Market testing - testing the actual products in a few test markets 5. Product launch 6. Evaluation of results 1 - IDEA GENERATION - Internal R&D - Licensing - Brainstorming - Competitor's products - Consumer input 2 - CONCEPT TESTING - concept is a brief written description of the product - Customers reaction 3 PRODUCT DEVELOPMENT Prototype Alpha testing - in firm Beta testing - out of firm 4 -- MARKET TESTING - Premarket test ----customers expose ▯ Customers surveyed ▯ ▯ Firm makes decision -Test marketing ▯ MORE expensive ▯ ▯ Mini product launch ▯ ▯ ▯ Market demands is estimated 5 -NEW PRODUCT MARKETING MIX PPP - TIMING of launch 6 -- EVALUATION IF RESULTS -satisfaction of technical requirements - customer acceptance - vista - Satisfaction of the firms financial requirements WHY DO NEW PRODUCTS FAIL? 4/5 - too small target market - Poor design - Low product quality - Incorrect positioning - Wrong price strategy - Poor marketing communication - Competition PRODUCT LIFE CYCLE - strategies to extend - develop new uses - Modify products - Increase frequency of use - Increase number of uses - Find new users - Reposition product - Tweak marketing strategy PPPP P&G BRAUN COOLTECH SHAVER 1.Provides relief before the skin irritation occurs 2.The produced a innovative design that had never been marketed before, which includes the latest technology and requires no water to shave hence reducing the irritation, itching, redness, skin tension and warmth 3.Clinical tests at the uni of berlin hospital - where results were noticeable 4.For their market testing they pre- launched the innovative the deign and the technology was well appreciated and successful GLOBALLY even for men who didn’t suffer from skin irritations. 5.The product will be launched during mid 2013, we would launch the product in canada and the US to custom best to the product life cycle 6. P&G would then evaluate sales and analyze this info to see whether or not they would launch globally II.It is a business product - sell to business retailers. TM all males over 16 and especially those who have skin sensitivity III. The technology used - dry shaver - cooling bar - aluminum - no need of additional after shave products IV. Innovative product - early adopter and early majority - matures over late majority and doesn't decline it laggers V.Succeed - its unique with no additional costs one time thing CHAPTER 9 ---- BRANDING Dove - brand extension from soap bar to multiple personal care areas - Brand image always associated with moisture/mildness - Brand promise: mildness and moisturization COMPLEXITY OF PRODUCTS Core customer value - is always what benefits the customer- functionality Types of products - speciality - wedding dress, travel for jewelry - Shopping - paying a lot of money e.g. clothing - Convenience - frequently - Unsought - people don't know it exists or insurance Product depth - how many options are there for this product? Oral care A lot of shoes nothing else Breadth - number of product lines e.g. Walmart Change product mix depth Increase depth -- bandaid now has over 40 Decrease depth-- get rid of what isnt profitable BRANDING - brand name - URL’s - Logos and symbols - Characters - Slogans - Jingles/sounds Value of branding for the customer and the marketer -brands impact market value - brands are assets - Brands reduce marketing costs - Brands protect from competition - Brands establish loyalty BRANDING OVERVIEW - brand equity ▯ ▯ -brand awareness ▯ ▯ -perceived value ▯ ▯ Brand associations ▯ ▯ Brand loyalty - brand ownership strategies - manufacturer or national brand ▯ ▯ -Store or private label ▯ ▯ -generic - brand name - Corporate ▯ ▯ - individual Perceived value -organic or locally or handpicked Brand association -personality Brand loyalty -consumers are often less sensitive to price - marketing costs are much lower - Firm insulated from competition Brand Ownership ----strategies - manufa
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