MOS 1021A Consumer Behavior

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Western University
Management and Organizational Studies
Management and Organizational Studies 1021A/B
Kevin Thompson

MOS 1021 Chapter 1 MARKETING FUNDAMENTALS The essence of marketing is discovering consumer insights Product must be relevant and engaging enough for the consumers to choose your product or service. Marketing Mix: Product- What? Price how much? Place where? Promotion - How to attract? o Public Relations o TV advertisement Shows/celebrities watched by the target market o Print-based advertising o Online advertising o Point-of-sale materials The Essence of Marketing Success is rooted in focusing on consumers and providing them with value through products and services that meet their needs Objective: realize a profit, or, if working in the non-profit sector, to generate revenue to fund their programs and run their operations. Customer Needs Encourage consumer loyalty At times can get wrong information (can ask wrong questions, target market doesnt know what their want/need is) Creating Customer Value Is the unique combination of benefits received by targeted buyers that includes quality, price, convenience, on-time delivery, and both before-sake and after-sale service. Achieved after carefully managing every element of marketing mix On-going marketing encourages consumers to become long-term loyal consumers Gaining customer loyalty, providing the consumer with value: Pricing strategy Product design Service elements Appealing to Target Market Target market: a specific group of people that have the same needs/wants One company may have several products for different target markets Coordinating the Marketing Mix Elements: Product o All attributes that make up a good/service/idea. Including the physical features (color/shape) and incentives (warrantee) Price o Expected retail and sale price Place o Distribution channels and retailers required to sell the product Promotion o Communication tools to help reach to the target market (advertising, sales promotion, public relations, direct marketing, and personal selling) The Marketing Process It involves: Identifying consumer needs Managing the marketing mix to meet these needs Realizing profits Marketing- describes the process of planning goods, services, or ideas to meet consumer needs and organization objectives Exchange- trade of things of value between buyers and sellers so that each benefits (usually money/volunteer) Market- describes the potential consumers who have both willingness and ability to buy a product. The Evolution of Business Philosophies 1 stage: Production orientation- focused on manufacturing. Short in supply, so manufactures goods sold regardless of quality. 1930s Model T, sold in black Engineering-driven 2nd stage: Sales orientation- focused on selling as many products as possible. Market became more competitive, production became more efficient, and products were in abundance. 1960s Postwar prosperity Baby boom rd 3 stage: marketing orientation- organization to strive to satisfy the needs of consumers while trying to achieve organizations goal. (Marketing concept follows this idea) th 4 stage: relationship marketing- when organizations create long-term links with customers, employees, suppliers, and other partners to increase loyalty and customer retention. The Progression of Marketing and Evolving Areas Some of the latest evolving areas: Customer Relationship Management (CRM) The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction Air miles, rewards, points card High cost of obtaining new customers and database marketing help create the focus on CRM [13] Experiential Marketing Creating opportunity for consumers to directly interact with brands Create an occasion for a few consumers to interact personally with the brand BMW provides a test track with prospective customers can test drive the cars under the supervision of a professional driver and test the superior handling and performance of the vehicles Corporate Social Responsibility (CSR) Is a concept where organizations voluntarily consider the well-being of society by taking responsibility for how their businesses impact consumers, suppliers, employees, shareholders, communities, the environment, and society in general Societal marketing concept- focusing on the consumer and the well-being of society A Focus on Ethics Requires financial commitment and long-term support from the organization and its employees. For e.g.: the national do not call list blocks telemarketers. LECTURE: Whats so difficult about marketing research? [5]
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