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Rotman Commerce (1,103)
RSM100Y1 (287)
Lecture

Marketing.docx

18 Pages
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Department
Rotman Commerce
Course Code
RSM100Y1
Professor
John Kloppenbord

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Description
Underneath Marketing 1) Consumer Psychology 2) Segmentation, Targeting and Positioning 3) Products and Services 4) Market Research 5) Pricing and Promotion 6) Retailing Marketing: planning and executing the development, pricing, promotion and distribution of ideas, goods, services to create exchanges that satisfy both buyers’ and sellers’ objectives Market making: Connecting buyers and sellers •Value creation: Providing valuable products/services profitably Two underlying factors: Information and Physical Distribution Two basic activities –Identifying customer needs and wants –Getting the product to the customer (not just getting customers for our best products and services; but also getting products and services for our best customers) Defining Competition •Other ways in which people can solve the problem that you solve for them The value (FB e.g.) –Targeted advertising –Database / data mining –Viral marketings for blackboard.pdf Adobe Reader Document Tools Window Help 11 81 e 66.9% Find Marketing Tasks Implement Look for Positioning Opportunities Product Consumer Segmenting Price Competition Targeting Promotion Company Positioning Place (Uncontrollable (STP) 3Cs) (Controllable 4Ps) Rotman loseph I Rotman School of Management n W W Accounting W W RSM Read 1 Finance Micr... Document4 s for blackboard.pdf Adobe Reader Document Tools Window Help 11 81 e 66.9% Find Marketing Tasks Implement Look for Positioning Opportunities Product Consumer Segmenting Price Competition Targeting Promotion Company Positioning Place (Uncontrollable (STP) 3Cs) (Controllable 4Ps) Rotman loseph I Rotman School of Management n W W Accounting W W RSM Read 1 Finance Micr... Document4Segmentation: The act of slicing up the total market Targeting: The act of choosing one (or more) slice Positioning: The act of giving your product some image to people in the chosen slice Identifying Market Segments Search for common traits between consumers Focus on traits that affect product need or purchase behaviour Geographic region Customer demographics Customer psychographics Behavioural variables / Product use variables Intended usees for black board.pdf Adobe Reader Document Tools Window Help Find 18 81 66.9% Positioning Giving your product an "image" Coffee Shops Yuppie Target Commuter Target (Market Size) (Market Size) t I customized) leisure relax meeting place convenience express +fast) (standardized) Tim Hortons Starbucks lcappuccino) 1. Fast: "Always have time," basic coffee, drive thru (lounge chairs) 2. Fresh "Always Fresh," 20 minute (classical music) 3. Friendly customer service (chocolate treats) fpre 15.3 Product positioning. RBU Hotton Rotman I Rotman School ol Manage University Toronto E W Accounting W Finance Micr... n RSM Read 1. W D es for black board.pdf Adobe Reader Document Tools Window Help Find 18 81 66.9% Positioning Giving your product an "image" Coffee Shops Yuppie Target Commuter Target (Market Size) (Market Size) t I customized) leisure relax meeting place convenience express +fast) (standardized) Tim Hortons Starbucks lcappuccino) 1. Fast: "Always have time," basic coffee, drive thru (lounge chairs) 2. Fresh "Always Fresh," 20 minute (classical music) 3. Friendly customer service (chocolate treats) fpre 15.3 Product positioning. RBU Hotton Rotman I Rotman School ol Manage University Toronto E W Accounting W Finance Micr... n RSM Read 1. W DPosition by: User Competition “meaningless attributes” emotional appeal Perception: Walmart is limited service and traditional, Holt Renfrew is fashion forward with extensive service Understanding consumerses for blackboard.pdf Adobe Reader Document Tools Window Help 26 81 66.9% Find The Research Process The Research Process Study the Select a Research Collect Data Analyze Data Current Method Situation Use Prepare Focus Group Secondary Report Data Use Make Survey Primary Recommendations Data Observation Experimentation Rotman losePi Rotman School ol Management University of Toronto RSM Read 1 D W W Accounting W Finance Micr... W Document es for blackboard.pdf Adobe Reader Document Tools Window Help 26 81 66.9% Find The Research Process The Research Process Study the Select a Research Collect Data Analyze Data Current Method Situation Use Prepare Focus Group Secondary Report Data Use Make Survey Primary Recommendations Data Observation Experimentation Rotman losePi Rotman School ol Management University of Toronto RSM Read 1 D W W Accounting W Finance Micr... W DocumentMarket Research •A systematic study of consumer needs –Focuses on the marketing mix elements –Leads to more effective marketing –Increases the accuracy and effectiveness of market segmentation Survey •Questioning consumers about purchasing attitudes and practices –Relies on a reliable random sample –in person, via phone, mail, or the Internet –choosing appropriate questions and ensuring honest answersPitfalls: 1)People often have no / little insight into their own behavior 2)The question determines the answer Observation •Viewing or monitoring human behaviour •Useful for cases where actions occur automatically without thinking –grocery shopping •May be human observation or technological –supermarket scanners –video mining “apparel purchasing behaviour”: walk, stop at display, touch, collect information, reaffirmation Focus Group •A small discussion group of prospective customers or product users –in-depth discussion of issues –Usually group does not know who is the sponsor –search for common themes in participants’ feedback Experimentation •reactions of similar people are compared under different circumstances –The situations can be manipulated to compare responses to such things as: •shelf placement of products, •package colours and design, •advertising strategy –Very costly Consumer Behaviour •The study of the process by which customers come to purchase and consume a product or service •Influenced by –psychological factors –personal factors –social factors –cultural factorsThe Consumer Buying Process •Problem Recognition –Consumer becomes aware of a problem or need •May be automatic (the need for food or sleep) •Due to a lifestyle change (new parents, retirement) •Information Seeking –The information search may be long and detailed, or short and limited •buying a car versus buying a candy bar The Consumer Buying Process •Evaluation of Alternatives –Products are compared to identify the best choice •Purchase Decision –choice may be made based upon rational or emotional motivations –Rational motives include cost, quality, usefulness –Emotional motives include fear, sociability, aesthetics, imitation of others Post-Purchase Evaluation •Marketers must market after the sale –to ensure satisfaction & repeat purchases•negative word-of-mouth can be harmful Consumer psychology: medium effect, framing effect, over choice, attractive people (healthy and fit e.g.) Product Strategy •Offering a good, service, or idea that satisfies the buyers’ needs is the goal of the firm •Product differentiation –creating a product that has a different image than existing products on the market to attract consumers •May involve –changing existing products by responding to trends or improving current offerings –adding new products Pricing Strategy •Choosing the right price to attract consumers and meet the firm’s profit goals •May be low price strategy (salt) or high price strategy (mink coat) •Price must consider all costs –operation and administration –marketing research –advertising Place (Distribution Strategy) •The part of the marketing mix concerned with –Getting the product from producer to buyer –Physical transportation –Choice of sales outlets Promotion Strategy •Choosing the right method of communicating information about the product –advertising –personal selling –sales promotions –public relations Product Decisions •A product = Bundles of attributes •Core and augmented product –Core: Basic benefit (e.g., transportation) –Expected -> Augmented -> potential Additional features (e.g., meals) Product Mix •Product mix –the group of products a company has for sale •Procter & Gamble sells household cleansers, disposable diapers etc.•Product line –a group of similar products intended for a similar group of buyers •Procter and Gamble sells more than one brand of laundry detergent Branding •Branding –use of symbols to communicate the qualities of a product made by a particular producer •Brand Equity –degree of loyalty to and awareness of a brand and its relevant market share •manage brands to increase value and “brand loyalty” –International Branding •takes a long time to establish national or global brand recognition •must consider how brand names translate Types of Brands National –distributed by, and carrying the name of the manufacturer (Kellogg’s) Private –brands carrying the name of the retailer or wholesaler (President’s Choice) Licensed –selling the right to use the firm’s name on another company’s product (Mickey Mouse) Brand Loyalty •Measured in 3 stages (from least to most loyal): –Brand Recognition: •consumers recognize the brand name –Brand Preference: •consumers prefer one bran
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