Marketing chapters 1-7

understanding the needs of the customer

Product orientation - letting people know about the product being produced
sales orientation - hard selling to customers becuase they have a lot of options (established to convince people to buy)
Marketing comapny orientation - aim is to better understand the customer rather than blindy selling to them
societal marketing orientation - look at what consumer wants but also what society wants
Relationship marketing orientation - focuses on keeping and improiving existing relationshipos with customers

the relatioship between the benefits and the sacrifice necessary to obtain that product

groups of people families or comapnies placed together becuase it is beleived that they share similiar needs

Product - tangible and intangible aspects a comapnys offering
Price - the quantifying value in exchange for a companys offering
Place - behind the scenes activities of making the product available to the customer
Promotion - most visible activities of marketing, get into the faces of customers

organizations objectives and resources + evolving makret opportunities = strategic planning

corporate - sets the direction and scope ( mission statement resource allocation etc)
business (SBU) - goal is to gain competitive advantage
Marketing - target market and marketing mix activities

strategies
made at all 3 levels of strategic planning
wider in scope
long term
affet allocation of resources and financial sucess

tactics
made at the operartional level or marketing level directed from strategic decisions
narrow in scope
short term
limited impact of long run profitability

cost
skillset - capabilties in technical skills

competitors
customers
company

strengths
weaknesses
opportunities
threats

will result in themes that can take the form of alternative growth strategies

threat of new entry
threat of substitution
buyer power
supplier power
competitive rivalry

acheive competitive advantage that is sustainable
Complete a swot at the SBU level

product/service differentiation competitive advantage
niche competitive advantage
sustainable competitive advantage

consequence of mature industries where slowing innovation, extenisve product assortment, excess supply and frugal consumers force margins to the floor

ROI

no it doesatn because it is one of the most expensive and least efficient marketing strategies

begins with market opportunity analysis
estimation of the size and sales potential of segmetns that are of interest
a decision regarding which or how many segments to target is then made

the heart of the marketing mix

physical product or a service
-physical unit
-warranty
-after sale service
-brand name
-image
-value

what buyers must give up in the exchange
-quickest element to change
-can be important competitive weapon

making the products available when and where the customer wants them

maintain a community between comapny and customer

-advertising
-direct marketing
-public relations
-sales promotion
-personal selling
-digital marketing

the process that turns the plan into action

evaluation + control = marketing audit

evaluation - gauging acheivment of objectives
Control - informal and formal control will create efficieny

continual attention
creativity
management commitment

competitve
Regulatory
economic
social
technological

competitors whose products can satisfy the same need but in different ways

competitors most closley matching a firms product offering

firms must abide by the law, but many laws are vague and difficult to enforce

federal legisltation - competition act, CPLA , PA etc
provincial and territorial laws - quebec bill 101 etc
self regulation - adstandards canada and CAB

advertising standards Canada(ASC)
- mission is to ensure the integrity and viability of advertising through self regulation

-privacy act
- personal information protection and electronc documents act
- canada's anti spam legislation

econimic cycle
inflation
consumer income/purchasing power

education

what a person has to spend after necesities are paid off

the changing roles of family members have blurred the parental lines of responsibility

children especially generations x,y and younger are generating more influence over thier parents due to the fast pace of technological innovation

the triple bottom line

Plante
People
Profit

economic profits - drive profits for shareholders
legal responsibilities - obey the law
ethical responsibilities - do what is right
phianthropic responsibilities - be a good corporate citizen

standard of behavior by which conduct is judged

-laws are the values and standards enforced by the courts
-ethics are the moral principles and values

rules developed as a result of cultural norms and values

the values you use to make decisions in business have been acquired since birth through family, as well as educational and cultural institutions

the reflections of the consequence of the behavior
the rules
an individuals moral character

- extent of ethical problems within the organization
- top mangement actions on ethics
-potential magnitude of the consequences
-social consensus
-probability of harmful outcome
- length of time between decision and onset of consequences
-number of people affected

a guidline to help marketing managers and others make better decisions

ads
-helps employees identify the business practices their firm recognizes as being acceptable
-can be effective internal control on behavior
-helps employees avoid confusion when determining wether their decisions are ethical
-the process of formulating the code of ethics facilitates discussion among employees

the agency is known for its work with dove, american express, and IBM

part of the WPP group, one of the largest advertising and public relations companies in the world

- a methodology to investigate a problem and seek out solutions
- also used to help companies understand their customer, marketplace, and challenges of meeting customer needs
- overarching activity for the firm

role of marketing research - should be used to bring clarity to unknown aspects of the marketplace

descriptive - presenting factual statements
diagnostic - explaining relationships within data
predictive - predicting the results of a marketing decision

1.) identify problem/opportunity
2.) gather secondary data
3.) specify the sampling procedures
4.) collect primary data
5.) analyze the data
6.) present the report
7.) follow up

research problem
exploratory research
descriptive research
casual research
solution

expensive, takes time, and answers specific questions that exploratory data cannot

data previously collected for any purpose other than the one at hand

inside org - annual reports, reports to shareholder, product testing data

outside org - statistics canada, online journals, research studies conducted by others

probability samples - simple random, stratified, cluster, systematic
probability sample becuase it requires a random selection of n participants however it is more expensive and difficult to get a truly random sample

nonprobability samples - convinience, judgement, quota, snowball
most common is convinience sample andis cheaper easier but less representative

qualitative - often used to get a clearer understanding of a problem. may involve in depth reviews

quantitative - often used when we want a specific numerical statistics

uses of the internet
-online surveys
- research panels
-focus groups
-online research communities

mobile marketing research
-in the moment surveys via cel phone

social media marketing research
-the use of databased of social media sites

significant increase in penetration of this method becuase:
-rapid development, real time reporting
-reduced costs
-improved respondent participation
-ability to reach hard contact

- a groups of respondents who agree to be polled on a more regular basis over longer periods of time
-they can respond quickly
-the numbers in the online panels are high

- much like traditional focus group
- much less expensive
- remote technology enables similar interactions

- huge penetration and usgae of mobile devices has organically made them useful tools for online research
- dynamic and almost instant connection with respondent
- key issue-privacy and security

- exponential growth in volume, variety, and velocity of information

three v's
-Volume
-Velocity
-Variety

-the development of complex new tools to analyze and create meaning from the data
-gathered both online and offline data

the engine for bringing patterns to light
create ability for managers to share, descrive, and explain what has been discovered

inside the company
- sales data from check-out scanning software
-webiste data
-interactions on social media sites

outside the comapny
-government sources
-supply chain partners
- commercial data sources

organizing the data
-the data must be organized: structured but flexible

structured
-customer lists
-sales transaction lists
-store traffic counts
- census and other demographic
- website traffic statistis

unstructured data
-social media posts
- emails
- instant messages
- youtube videos
customer service call transcripts

- small and generally reasonably contained trade offs
- voluntary and we understand the impact

large reach and no consent
-facebook tracking of borwser activity

- the first step in the process is key to sucess (understand the problem)
-be willing to admit you dont have the answers
- competitive intelligence can create a more efficient and effective company
-especially cost effective
-quarterly competitive intelligence reporting can keep a pulse

competitive intelligence + enviornmental scanning = marketing intelligence

- identifying profitable customers
- goal - maximize the value that is attributed to that customer relationship

-building customer loyalty
- retaining valued customers
-delivering on the promises
-now and in the future

- overall company strategy
-understand customer needs
-keep updated as to needs
- long-term customer satisfaction

Marketing research -> business development -> customer support

identify customer relationships - who they are, where they are located, what they are buying

understand the interactions with current customers- by collecting data on all types of communication the customer has with the company

capture relevant data on interactions

store and integrate customer data by using information technology

- qr code
- email
-customer service call
-registrations
-web-based
-point-of-sale

data warehouse -> database -> response list and compiled list

useful but can be controversial
customer concerns of privacy

to be succesful, companies need to use CRM to identify those customers that
- yield high profits
-high potential
-analyze and interpret the data

20% of customers yield 80% of sales

- an analytical process that compiles actionable data on the purchase habits of a firms current and potential customers
-once the data is collected it must be leveraged shared with all areas of business and used to build strategies

-search the data warehouse
-capture the relevant data
-categorize
-develop customer profiles

-customer segmentation
-RFM analysis
-LTV analysis (lifetime value)
-Predictive modelling

-CRM programs focus too much on transactions and not on other aspects of the customers life
- relationships cannot be solely about acheiving loyalty
-a relationship is dynamic and has two sides, it is not enough to get a list of customers and their spending habits; the relationship will evolve with each transaction and CRM systems must as well

-data mining identifies the most profitable customers and prospects
-managers can then desing tailored marketing strategies to be appeal to the identified segments

campaign management
retaining loyal customers
designing targeted marketing communications
reinforcing customer purchase decsions
improving customer service

-building customer loyalty
-retaining valued customers
-delivering on the promises
-now and in the future

-continued use of the newest and best technologies will be vital to CRM maintaining its relevance
-time needed to input data and manage the information provided is a growing concern
-movement in CRM to automating customer relationship-predictive modeling advances, relation data bases
-on demand marketing-taking CRM to a new level
-consumers expectation of their decisions buying related expiriences have rised
-want to interact anywhere anytime
-want to do new things with varied information to create value
-expect data stored about them to be targeted uniquely to them
- expect all interactions to be easy

need recognition - occurs when consumers are faced with an imbalacne between actual and desired states

information search - internal vs external information search

evaluation of alternatives - consideration set includes criteria/product attribute

prucahse

postpurchase behaviour - provide decision confirmation from evaluation of alternatives through to pruchase to post purchase

previous expirience
interest
perceived risk of negative consequences
situation
social visibility

cultural influences on consumer buying decisions
broadest and deepest influence
learned
dynamic
give ries to beleifs

most defining element - values

group nearly equal in status or esteem
combination of income education, wealth
education most reliable factor

direct - face to face membership
- primary - small informal group
- secondary - large, formal group

indirect - nonmembership
- aspirational - group that someone would like to join
- nonaspirational - group that somone wants to avoud being identified with

reference groups who ifnluence others
-first to try new products
-self indulgent
-vary by category

family
-socialiation process
-influences values, attitudes and self-concept
-variety of roles
-initiatior, influencer, decision maker, purchaser, consumer

Gender
Age
family life cycle
personality
self-concept - ideal self image and real self image

perception
selective distortion
selective retention
motivation
learning
beleifs and attitudes

effective marketers carefully study their target markets all the time to see the changes in their buying decisions

adjustments are made to the marketing mix to meet the changing consumer needs and help to move the consumer through the buying process

people or organizations with needs or wants and willingness and ability to buy

a subgroup of people or organizations sharing one or more characteristics that cause them to have similiar product needs

the process of dividing a market into meaningful, relatively smalle and identifiable segments or groups

-identify groups of customers with similair needs and study them
-information to design appropriate marketing mixes is uncovered
-more accuracy in defining marketing objectives and allocating resources
-consisten with marketing concept

use bases will create segments that are:
- substantial
-measurable
-accessible
-respond uniquely

region of the world
region of the country
market size
market density
climate

readily available information such as:
-age
-gender
-income
-ethnic background
-occupation
-family life cycle

Personality
motives
lifestyles
geodemographic

groups potential customers on the basis of their needs or wants
usage rate - based on the amount bought or consumed

substantiality - large enough and profitable
identifiable - measurable and available data
accesible - reach the consumer
responsive - must respond uniquely to be treated seperately

company characteristics
-geopgraphic location
-type and size of company
-product use
-type of customer
-usage rate
-buying organizations structure
-how product is used

buying processes
-purchase criteria
-purchasing strategies (satisfiers, optimizers)
-buyers personal characteristics

select a market or product category
choose a basis or bases
select segmentation descriptors
profile and analyze the segments
select targets
desing, implement,and maintain an appropriate mix

purpose of marketing segmentation is to identify marketing opportunities

a group of people or organizations for which an organization designs implements and maintains a marketing mix

undifferentiated - mass market
concentrated - niche
multisegment - two or more segments
one-to-one - sell more products to single customer

personalization - consumer want to be treated as individuals and dont want to be mass marketed to

time saving - becuase of one to one marketing consumer save time when making purchase decisions

loyalty - one to one marketing techniques focus on finding a firms best customers and rewrding them for their loyalty

technology - advances in marketing research and database technology will allow marketers to collect detailed info on their customers

the place the product brand or service occupies in the consumers mind

-assesing the positions occupied by competing products
-determining the important dimensions underlying these positions
-choosing a position in the market where the organizations marketing efforts will have the greatest impact

companies can base their positioning on what distinguishes the product from competition

a means of displaying or graphing, in two or more dimensions, the location of products brands or groups of products in customers minds

attribute
price and quality
use or application
product user
product class
competitor
emotion

changing the consumers perception of a brand in relation to competing brands