Introduction to marketing and market definition PDF

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These are notes taken from marketing classes by Madeleine Belin at EDHEC Business School. These notes cover the introduction to marketing and the Market Analysis use and methodology....

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Markets Analysis CM1: Introduction to marketing and market definition I. Introduction to marketing Marketing: the activity, set of institution, and processes for creating, communication, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. What do big companies have in common? o Excellent knowledge and understanding of the market o A deep investigation of consumers and their unsatisfied needs and wants (consumer insights) o Track consumer trends and the society at large (sociological trends) A well-defined and well-implemented strategy needs a good understanding of both the market and the consumer. Key customer markets: o Consumer markets (B2C) o Business Markets (B2B) o Global markets o Non-profit and governmental markets

Marketing o Limited to advertising and promotion, o Surveys and models to manipulate consumers o A non-enduring trend, simply a fashion that won’t prevail o The reason why we consume and it triggers over-consumption

Evolution of the place of marketing in companies: o Passive marketing: production focus o Operational marketing: sales focus o Strategic marketing: customer focus o Marketing-driven management: marketing at any place of the company New marketing realities: Technology, globalization and social responsibility

Companies can: o Leverage the internet as a powerful information and sales channel, including for individually differentiated goods o collect more and richer information about markets, customers prospects and competitors o reach customers quickly and efficiently via social media and mobile marketing o send more targeted ads, promotional coupons and other relevant information

II. Market definition Market: selecting among products and buyers those on which the company will operate Market delineation: action of describing or portraying something precisely; helps the company to develop a plan of action. 3 approaches to define a market:

Product: -Result of production (tangible, visible good = material) -Non-material, nontangible or visible (service)

Needs: -Needs: Basic human requirements, become wants when directed to specific objects -Psychological, safety, social, esteem and selfactualization

Different Products: Service Characteristics: intangibility

inseparability

SERVICES variability

perishability

Product Classification: Goods: Frequent/non-frequent purchase Services: Pure service/hybrids

Market of products (identical products) Market of substitute: satisfies same needs/wants Generic Market: market of product, substitute and complementary products Market of complimentary products

Example: Product = coffee Substitutes = (tea/chocolate) Generic Market: Hot drinks Complimentary Products: milk/sugar

Supply and Demand: Upstream Market Resources (raw material/suppliers) V The Company V Downstream Market Market (demand: customers)...