Lecture Notes - Introduction to Marketing PDF

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Deborah Forbes...

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MKT 1002: Introduction to Marketing MKT1002 Assessment Info: Semester 1 – Unseen Multiple Choice Exam, 1.5 Hours (50%) January  50 questions on a PC based on lectures Semester 2 – Individual Assignment in Essay Format (50%) 05/05/2017  ‘Analyse marketing and strategy of an org.’ (2000 words [including figures, diagrams, appendices]) ra.ombea.com -> session id: NUBSdeborah

Lecture 2: Introduction to Marketing Definition of Marketing (CIM 2016) “The management process of anticipating, identifying and satisfying customer requirements profitability.”  {OR for not 4 profit, a surplus} What is marketing?  Demographics  Research  Communications  Psychology  Manipulation  Networking  Analysis  Pricing  Exchange  Interaction  Advertising  Promotion Marketing is a 4-stage process: 1. Where are you now? 2. Where do you want to be? 3. How do you get there? 4. How do you know you’ve got there? The 3 components of Marketing Orientation The achievement of corporate goals through meeting and exceeding customer needs and expectations better than competitors. The Development of Marketing – Baines o Production Period, 1890’s – 1920’s o Sales Period, 1920’s – 1950’s o Marketing Period, 1950’s – 1980’s o Societal Marketing Period, 1980’s – Present The Marketing Mix: Borden 1964: o Product Planning o Pricing o Branding o Channels of Distribution o Personal Selling o Advertising o Promotion o Packaging o Display o Servicing o Physical Handling

o Fact finding/Analysis McCarthy: o Product o Place o Price o Promotion o People -> Customer Service o Physical -> Environment o Process -> Supply Added by Booms & Bitner (1981)

Lecture 3: Consumer Buyer Behaviour 

the study of how individuals or groups buy; use and dispose of goods services ideas or experiences to satisfy their needs and wants. Kotler et al (2016:218) Who: Initiator, Influencer, Decider, Buyer, User Learning and Memory: Classical Conditioning – we learn by associating one thing with another. This approach to learning is frequently used in marketing. Operant Conditioning –is learning through behavioural reinforcement. Social Learning –we could learn not only from how we respond to situations but also from how others respond to situations, so called modelling. Not animalistic but delay gratification

How and what we buy is also based on our personalities:  The psychoanalytic approach which stresses self-reported unconscious desires, Freud (1927).  Trait (trays) theory which stresses the classification of personality types, using bipolar scales.  The self-concept approach, (eg Dubois & Duquene 1993) which is concerned with how we perceive ourselves as consumers. The Importance of Opinions, Attitudes and Values - Opinions tend to be cognitive (i.e. based on thoughts) and can be described as the quick responses we might give to opinion poll questions about current issues or instant responses to questions from friends - Attitudes are affective (i.e. linked to our emotion states) held with more conviction, held over a longer duration and are much more likely to influence behaviour. - Values are conative (i.e. linked to our motivations and behaviour) are held even more strongly than attitudes and underpin our attitudinal and behavioural systems.

Lecture 4: Marketing Research & Customer Insight American Marketing Association defines “Marketing Research” as “the systematic and objective identification, collection, analysis and dissemination of information for the purpose of improving decision making related to the identification and solution of problems and opportunities in marketing. Market research is a broader look at markets, individuals, and organizations. Marketing research focuses more on marketing issues like promotion and branding. (Smith et al, 2006) The Marketing Research Process

Lecture 5: Marketing Strategy & Planning Marketing Planning: Sequential process involving a series of activities leading to the setting of marketing objectives and the formulation of plans for achieving them. McDonald (2002:27) Specific Measurable Achievable Realistic Time constraint The Vision – statement on what org wants to become. Gives shape/direction to orgs future. The Mission – broad statement of intention, sets purpose and direction. What it wishes to achieve in the long run. Org Values – define acceptable interpersonal and operating standards of behaviour. Govern and guide behaviour of individuals. Org goals – desired outcomes of orgs activities. Could be profit, market share, share value etc. Corporate Strategy – the way resources of the org are matched with the needs of the environment. Good mission statement: clear, memorable, concise. External: Political Economic Social Technological Legal Environmental/Ecological

Microenvironment: Market Customers Competitors Distributors Suppliers

Analysing Industries Porters Five Forces (HBR 1979)

Product Portfolio Analysis Growth Share Matrix (1970)) The Boston Box

SWOT Analysis and Strategy Development:

Ansoff Matrix (1957):

Lecture 6: CANCELLED DUE TO FLOOD (added to lecture 5) Lecture 7/8: Segmentation, Target and Position STP Process: Method by which whole markets are subdivided into different segments. If successful: - Segmentation - Targeting - Positioning Marketing segmentation is the division of a market into different groups of customers with distinctly similar needs and product/service requirements. Why is it important? o To leverage scarce resources o To ensure that elements of the mark mix are designed to meet particular needs of different customer groups o Allows orgs to focus on specific customers’ needs in the most efficient and effective way. How is it done? Breakdown Method: the view that the market is considered to consist of customers which are essentially the same so the task is to identify groups which share particular differences. Build-Up Method: considers a market to consist of customers that are all different, so here the task is to find similarities. Profile Criteria: Who my market is and where are they? Behavioural Criteria: Where, when and how does my market behave? Psychological Criteria: Why does my market behave that way?

Lecture 9: Product The term ‘product’ refers to tangible and intangible attributes related not just to physical goods but also services, ideas, people, places, experiences and a mix of various elements. Three product levels:  Core product – refers to core benefit or service. May be functional or emotional benefit. E.g. transportation/memories  The embodied product - the physical good/service that provides an expected benefit. E.g. durability/design  The augmented product – consists of the embodied product plus all those other factors that are necessary to support the purchase and any post-purchase activities. E.g. credit, delivery. Type of Consumer Products: Durable goods – reflect a purchaser’s high level of involvement in the purchase decision. Non-durable goods – reflect low levels on involvement by buyers who are not concerned which particular product they buy. Convenience products – non-durable goods or services bought because the consumer does not want to put in very much effort. Staple: petrol, milk Impulse: sweets, chocolate Emergency: care recovery service, plumber

Shopping products – not bought frequently so consumers do not always have sufficient up-to-date information in order to make a buying decision. E.g. fridge Speciality product – represent high risk, usually expensive, bought infrequently, often only once. E.g. engagement ring Unsought products – represent group of products which people do not normally anticipate buying or indeed want to buy. E.g. insurance

Types of Business Goods: Equipment goods – concern the everyday operations of the organization. E.g. capital equipment goods, accessory equipment goods Raw Materials – the basic materials that are used in order to produce finished goods. Semi-Finished Goods – raw materials that have been converted into a temporary state. Maintenance, Repair and Operating (MRO) – products, other than raw materials, used to ensure that the organization is able to continue functioning. E.g. nuts and bolts, light bulbs, cleaning supplies Component Parts – finished, complete parts bought from other organizations that are then incorporated directly into the finished product. Business Services - intangible services used to enhance the operational aspects of the organizations. Product Range; Line and Mix Product item: Black iPhone 6 Product line: iPhones Product mix: iPads, macs Product line length: iPhone 5, iPhone 6s, iPhone 6 plus Product line depth: rose gold iPhone 6, silver iPhone 6 Product mix width.

Lecture 10: Branding The process by which manufacturers and retailers help customers to differentiate between various offerings. Types of brand: manufacturer (puma, lego, apple), distributor (asda, tescos, aldi, coop), general brands (words used to describe products, e.g. sticky tape for sellotape. no frills brands) Storytelling Brands – brands that build up a story

Branding Policies: o Individual: every product is different. o Family branding: clearly displayed together e.g. kelloggs cereal, all branded together o Corporate brands: single name that pulls together a range of products e.g. HSBC: banking, insurance etc. Baines page 465 The Product Life Cycle Development: before a product is launched onto the market it is in the development stage where research is being done and the product is still being developed, no sales. Introduction: a very intense period of time where a brand will try and stimulate and generate knowledge about their new product, heavily advertised and trying to establish itself in shops etc. market maven shares info. (the process of diffusion) Growth: profits are increasing, spending money to compete with other orgs, may have to do reminder advertising or promotion. Still a growth area, wide potential market. Want to make your product the product of choice. Maturity: the longest stage of the lifecycle, stable set of loyal buyers, people understand your product, viable market, sit comfortably. Because the market has shrunk and plateaued, a lot of competition. May add minor features or tweaks. Profits start to decline. Decline: sales are falling along with profits, orgs find this stage difficult. Examples include: video tapes, analogue radios. Innovators: people taking risks, 2.5% of the population. Early Adopters: people who are a little more mainstream, wait for some reaction, still perceived as thinking outside the box. 13.5% of population. Early Majority: more considerate, waiting for things to be tried and tested. Not the first, not the last. 34% of population. Late Majority: tend to be much older in social ranking, probably have to have their attitudes changed to ensure its their best option. 35% Laggards: purchase a product as that area is leaping into the next stage of technology. 16% of populations.

New Product Development

Lecture 11: Promotion – Marketing Communications Integrated Marketing Communications - “integrating all useable promotional tools and appropriate media to deliver synergistic communication campaigns” Jobber :501 Elements: Message – e.g. rational (slice of life): emotional (stimulate a response) Tools – e.g. advertising Media channels – e.g. Broadcast; print People – e.g. clients Context – e.g. consumer; NFP; Public; B2B There are three main models of communication: Linear model of communication Two-way model of communication

Interaction model of communication

Three elements of marketing communications: o Engagement – what are the audiences’ communications needs, and is it possible to engage with them on their terms using one-way, two-way or dialogic communications? o Audiences – which specific audience(s) do we need to communicate with and what are their various behavior and information processing needs? o Responses – what are the desired outcomes of the communication process? Are they based on changes in perception, values and beliefs or are changes in behavior required?

Lecture 12: Promotion – Marketing Communications (2)

Tools of the mix: Advertising can be used to influence demand for product and services. It can be used to manage perceptions and understanding about the org. Its role is to engage audiences and this depends upon the context in which the communication occurs. Sales promotions offer customers incentives to buy now rather than in the future, they accelerate sales and provide additional value to induce immediate sale. Used extensively in consumer markets. Need to be used integrated with other tools, such as advertising, personal selling and direct marketing. Public relations is a management activity that tries to shape attitudes and opinions held by orgs stakeholders. It tries to identify policies with the interests of its stakeholders and formulates an action plan to develop mutual goodwill and understanding. Relationships are developed through this process which are in the long run interests of all parties. Direct marketing is concerned with the management of customer behavior and refers to all media based activities that generate a series of communications and responses directly with an existing or potential customer. Personal selling concerns interpersonal communication and representation. It is a highly potent form of communication simply because messages can be adapted to meet requirements of both parties who meet face to face as communication develops.

Media -

Broadcast: television and radio can reach mass audiences with a relatively low cost per target reached. Print media: newspapers and magazines are the two-main media, others include custom mags and directories.

Digital: television, internet, online marketing, wireless, mobile, interactive TV, social media In-Store: point-of-purchase displays (retailers control) and packaging (manufacturers control)

Outdoor: street furniture (such as bus shelters), billboards, transit (includes buses, taxis, the underground) Other: cinema, ambient...