Marketing Zusammenfassung PDF

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Wintersemester 2015/2016. Englischer Marketing Kurs Bobbie....

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Zusammenfassung der Kapitel von Marketing (English) bei Melanie Bobik

Chapter 1: Marketing, Markets and Customer Value Definition: Marketing 

activity and set of processes for creating, communicating, delivering, and exchanging offerings that have value for customers, business partners, and society at large.

Creating Customer Value      

Product quality and features Price Brand name and image Availability After-sale service Sustainability, …

Understanding the Marketplace Ex.: Milk powder scandal in China

Marketing Management 1. Choosing target markets 2. Building profitable relationships with target markets (= customers)  

Find, attract, keep and grow customers Create, deliver, communicate customer value

Who? – Customer Management 

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Market segmentation – divide market into segments, e. g. students in Europe Targeting – which segments to address/to target when selling products

How? – Customer value 

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Value proposition – set of benefits or values a product offers in order to satisfy customers’ needs Differentiation – What makes a product different to competitor’s products? Positioning – Which image/positioning shall the product have?

Zusammenfassung der Kapitel von Marketing (English) bei Melanie Bobik

Chapter 2: Business Strategy vs. Marketing Strategy Business Strategy    

What is our business Who and where is the customer What do customers want/value What should our business be

Setting Company Objectives and Goals Business Objectives - Increase market share - invest in research - improve profits

Marketing objectives - build better customer relationships - expand into new markets - increase brand awareness

Designing the business portfolio Business portfolio – collection of businesses and products that the company offers (Ex.: Disney) Portfolio analysis – major activity in strategic planning whereby management evaluates the products and businesses that the company offers

Business portfolio planning 1. Analyse the current business portfolio  Identify key businesses (strategic business units: SBUs) that the company offers  Assess the attractiveness of various SBUs 

Decide how much support each SBU deserves

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Ex.: Apple o Star: iPad o Cash cow: iPhone o Dog: Apple TV o Question mark: .mac (Problem children)

2. Define the future business portfolio  Downsizing – reduction of the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company’s overall strategy (Ex.: P&G food sector exit)  Different expansion strategies:

Zusammenfassung der Kapitel von Marketing (English) bei Melanie Bobik

Chapter 3: Analysing the Marketing Environment Marketing environment includes actors & forces that affect marketing management’s work (Ex.: Gerry Weber)

Company’s Microenvironment Microenvironment consists of the actors close to the company that affect its ability to serve its customers:     

Staff → Finance, HR, Sales Customers → understanding is important Competitors → influence entire marketing mix (4 P’s) Suppliers → raw material & services Distributors (e.g. resellers -> wholesalers and retailers)

Company’s Macroenvironment 

Natural environment – physical environment; natural resources/raw material that are needed as inputs to produce goods o Trends: climate change, shortage of raw material, increased pollution

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Demographic environment – study of human population in terms of size, location, age, gender, ethnicity, occupation, etc. o Recent trends: changing family life, higher age, moving from rural to metropolitan areas, higher education level, increasing diversity, specific target groups (gay people) Economic environment –factors that affect consumer purchasing power & spending patterns o Trends: buying power in India, consumer spending before & after financial crisis, income distribution → shrinking middle class Technological environment – forces that creates new technology, creating new products & market opportunities (Ex.: Tesco in South Korea: shopping in train station with smartphone) Political Environment – laws, regulations, government institutions, trade agreements Cultural environment – institutions and other forces that affect a society’s basic values, behaviours

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Zusammenfassung der Kapitel von Marketing (English) bei Melanie Bobik

Chapter 4: Managing Marketing information to gain customer insights Goal and purpose: Customer insight  

Fresh an deep insight into customers’ needs and wants Basic of new product development or product revivals or product improvement

Developing Marketing Information 1. Internal data  Collections of consumer and market information obtained from data sources within in company network → customer purchases, sales staff contacts, service and support calls, website visits, satisfaction surveys, credit and payment interactions 2. Marketing intelligence  Publicly available information about consumers, competitors, developments in the marketplace (e. g. trends, changes) → income, age, competitors, infrastructure, legislation, etc. (Ex.: Gatorade: online monitoring of everything which is published from the brand) 3. Marketing research  Systematic design, collection, analysis and reporting of data needs for a specific marketing situation 

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Who is to be surveyed? – sample of population to represent the whole population How is the survey designed? – mail, telephone, personal, online Gathering Primary Data: o Survey research – most widely used method & best for descriptive information, e.g. knowledge, attitudes, preferences, buying behaviour o Observational research – gathers primary data by observing relevant people, actions, and situations o Ethnographic research – trained observers to watch and interact with consumers in their natural environment (Ex.: P&G in rural China → bottom of income pyramid specific needs)

Zusammenfassung der Kapitel von Marketing (English) bei Melanie Bobik

Chapter 5: Consumer Markets (B2C) vs. Business Markets (B2B) Consume buyer behaviour – buying behaviour of final consumers, individuals and households, who buy goods and services for personal consumption Consumer market - all individuals and households that buy goods and services for their personal consumption

Business Markets Business Markets - Companies/organizations buy goods and services for use in production of other products and services that they sell, rent, or supply to others Decision process: Characteristics    

Longer (e.g. more product specifications, written purchase orders) More formalized (careful supplier search, formal approval) More decision participants Buyer and seller are more dependent (e.g. customized products)

Consumer products vs. organisational products Why was the product purchased? Organisational product – for use in the operation of a business or organisation; manufacture other products; for resale to others (Ex: Paper cups by McDonald’s, computer chips by Toshiba, consumer products from producers e. g. Goodyear tires) Consumer products – for personal or household use

Zusammenfassung der Kapitel von Marketing (English) bei Melanie Bobik

Chapter 6: Creating value for customers: Segmentation & Targeting and Differentiation & Positioning

Market segmentation Market segmentation – dividing a market into smaller segments with distinct needs, characteristics, or behaviour that might require separate marketing strategies or mixes 1. Geographic segmentation - divides the market into different geographical units such as nations, regions, cities, cultures, languages 2. Demographic segmentation – divides the market into groups based on age, family size, gender, family life cycle, income, occupation, education, religion, generation, nationality 3. Psychographic segmentation – divides buyers into different groups based on social class, lifestyle or personality (Ex.: Subaru – cars for dog lovers, families, middle-upper class) 4. Behavioural segmentation – divides buyers into groups based on their attitudes, uses or responses to a products → Occasions – soups in winter, swim wear in summer → Benefits – sought in a products → User status – regular/potential/first time/ex-user/nonusers → Usage rate – light, medium, heavy users Ex.: Subaru → cars for dog lovers and families (demographic), middle-upper class (psychographic), region: where dogs are accepted as pets (geographic)

Market targeting – Targeting Strategies 1. Undifferentiated or Mass Marketing – targets the whole marketing with one offer (product) 2. Differentiated Marketing – targets several different market segments and offers different products for each segment → goal: achieve higher sales and stronger position, more expensive than mass marketing (Ex.: Tide: different variation of washing powder) 3. Niche Marketing – targets a small market segment (= niche) → precise knowledge of market, more effective and efficient because of a better focus, good strategy to start business (Ex.: travel agency for people with handicap or gay people) 4. Micromarketing – practice of tailoring products to suit the tastes of specific individuals and locations → Local marketing, individual marketing (Ex.: Kipling backpacks customized by Stickvogel)

Zusammenfassung der Kapitel von Marketing (English) bei Melanie Bobik

Differentiation and Positioning Product position – way the product is defined by consumer on important attributes, place a product occupies in consumers’ minds relative to competing products, helps consumers to orientate Choosing a Differentiation and Positioning Strategy    

Identify a set of possible competitive advantages to build a position Choose the right competitive advantages Select an overall positioning strategy Communicate and deliver the chosen position to the market

Differentiation – identifying possible value differences and competitive advantages Competitive Advantage - advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices (e.g. better quality, service, product features) Differentiation types     

Product differentiation → different product (Ex.: Desigual – handmade, tailored products with in-shop-tailor) Service differentiation → outstanding good service (Ex.: IKEA – bring-back-action for lifetime) Channel differentiation → place, where products were sold (Ex.: Chanel) People differentiation → sales people, service, customer, marketing = employer branding (Ex.: Hooters – Burger’s restaurant with young ladies with big breasts and roller-skates) Image differentiation → positioning (Ex.: Evian – is rated highly, expensive water, positioning itself as young)

Ex.: Chanel → expensive, exclusive, class and tradition (product, channel, image) Ex.: Lush → are green: only use green ingredients & no animal testing; good service (service, people, product, image, channel)

Zusammenfassung der Kapitel von Marketing (English) bei Melanie Bobik

Chapter 7: Products and brands Goods and Services Goods – anything tangible that can be offered in a market for acquisition, use, or consumption that might satisfy a need or want Service – product that consists of activities, benefits or satisfaction that is essentially intangible and does not result in the ownership of anything

Product Decisions 1. Product attributes – communicate and deliver benefits (quality, product features, style, design) 2. Branding – name, term, sign or/and design that identifies the maker or seller of product → helps buyer to identify products and their benefits 3. Packaging – involves designing and producing the container or wrapper for a product → protection, attracts buyers, communicates brand positioning 4. Labelling – identify product or brand, describe attributes, provide information (e. g. ingredients, origin, company), promote brand (e. g. website, quizzes, social activities) 5. Product support service – augment actual products, e. g. ordering ease/delivery/installation; after sale service, e.g. phone/online support service, return policy, warranty, home delivery, assembly service

Product Line Decisions Product Line - group of products that are closely related because they function in a similar manner, are sold to the same customer groups, and are marketed through the same types of outlets Product line filling – same product with different types & flavours → different target group + more market share (Coco Cola, Coca Cola light, Coca Cola Zero, etc.) Product line stretching – different products from the same producer → more market share + different customers (Coco Cola, Fanta, Dr. Pepper, Sprite, etc.)

Branding Strategy – Building Strong Brands 1. Branding positioning – attributes, benefits, beliefs and values from product → position the brand in customer’s minds and engage customers on an emotional level + Country-of-Origin effect Ex.: Pampers – attributes (fluid absorption, good fit), benefits (skin-health, containment), beliefs and values (Pampers Village online with free new products, baby care expert tips, lullabies for download) Ex.: made in Germany; Swiss made 2. Brand name selection – different rules to follow in selection process + protection of brand name 3. Brand sponsorship – Manufactor’s brand (Samsung phones), Private brand/Store brand (A&P at Kaiser’s), licensed brand (Hello Kitty on products), co-branding (designers like Versace & H&M) 4. Brand development – line extension (Lindt with different flavours), brand extension (Oreo – cookies and icecream), multibrand (Coca Cola), new brands (P&G, McCafe & McDonalds)

Zusammenfassung der Kapitel von Marketing (English) bei Melanie Bobik

Chapter 8: New-Product Development How do companies get new products or product ideas? 1. From external sources → from outside the company 

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Acquisition – refers to buying of a whole company, a patent, or a license to produce someone else’s product (Ex.: Facebook bought WhatsApp because of data and competition (Messenger + WhatsApp)) Crowdsourcing – inviting broad communities of people to participate in the new-product development process (Ex.: Lego – customers can make suggestions for new products, other customers can vote and the best three were produced by Lego)

2. From internal sources → within the company  New product development – refers to new products, product improvements and product modifications developed from the firm’s own research and development (R&D)

Zusammenfassung der Kapitel von Marketing (English) bei Melanie Bobik

Chapter 9: Price and Pricing strategy Major Pricing Strategies 1. Cost-based pricing – sets prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk → Fixed costs – costs that do not vary with production or sales level, e. g. rent, heat, etc. → Variable costs – costs that vary with the level of production, e. g. packaging, raw material, etc. → Break-even point – total revenue covers the total costs → Total costs – sum of the fixed and variable costs for any given level of production (calculated price must cover at least total costs; production must be cheaper than competitor’s because of competitive advantage)

2. Competition-based pricing – based on competitor’s strategies, costs, prices and market offerings → consumers will base their judgement of a product’s value on competitor’s price 3. Customer-value-based pricing – understanding how much consumers value product’s benefits and setting price that captures value Perceived value - comprises several elements, such as the buyer’s image of the product performance, customer support, and softer attributes such as trustworthiness, status and esteem

Price ceiling vs. Price floor

Zusammenfassung der Kapitel von Marketing (English) bei Melanie Bobik

New-Product Pricing Strategies 1. Market-skimming pricing – strategy with high initial prices to “skim” revenue layers from the market →prices start high and are slowly lowered over time (Ex.: Apple, Samsung) → Market requirements: product quality and image must support price, buyers must want the product at this price, competitors should not be able to enter the market easily (“lead time” – time between new products with new features and competitors follows & have same products) 2. Market-penetration pricing - sets a low initial price in order to penetrate the market quickly and deeply to attract a large number of buyers quickly to gain market share (Ex.: Ryan Air, Primark) → Market requirements: price sensitive market, production and distribution costs decrease with sales growth, low prices must keep competition out of the market

Price-Adjustment Strategies 1. Promotional pricing – is when prices are temporarily priced below list price to increase demand: discounts, special event pricing, cash rebates, low-interest financing, free maintenance 2. Dynamic pricing – is when prices are adjusted continually to meet the characteristics of the individual customer and situations → tracking of online browsing and purchasing history (Ex.: Amazon, Games, Disneyland, electronic price tag in supermarkets) 3. Discount and allowance pricing – reduces prices to reward customer responses such as paying early or buying a new product → discounts, trade-in allowances 4. Psychological pricing - occurs when sellers consider the psychology of prices and not simply economics → higher price = better quality, psychology of numbers 1,99 € vs. 2 €

Zusammenfassung der Kapitel von Marketing (English) bei Melanie Bobik

Chapter 10: Place: Marketing Channels Supply Chain Partners Supply chain – network of suppliers, producers, distributors and marketing channels (e.g. retailers). It consists of upstream and downstream partners Upstream partners – include raw material suppliers, components, parts, information, finances, and expertise to create a product Downstream partners – include the marketing channels or distribution channels that look toward the customer e.g. retailers, wholesalers

Ex.: Zara

Marketing Channels (downstream partners) Marketing channels (= distribution channels, downstream partners) – sets of interdependent organizations involved in the process of making a product available for use or consumption by the consumer or business buyer Ex.: Carrefour → distribution center

Channel Organisation Conventional distribution systems – consist of independent producers, wholesalers, and retailers → each seeks to maximize its own profits (little control over other members) Vertical marketing system – with producers, wholesalers and retailers acting as a unified system → one channel owns the others or has contracts with them 

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Corporate marketing system – integrates successive stages of production and distribution under a single ownership (Ex.: Inditex with Bershka, Pull&Bear, Zara,..) Contractual marketing system – consists of independent firms at different levels of production and distribution who join together through contracts to obtain more economies or sales impact than each could achieve alone, e.g. franchising (Pizza Hut)

Zusammenfassung der Kapitel von Marketing (English) bei Melanie Bobik

Franchising – Pros and cons Franchisee + well-known brand, concept, products + promotion I sdone by headquarters (HQ) + ordering products is already organised + place/restaurant pre-designed + supply chain management done by HQ - have to follow the rules → no flexibility - invest a lot of money - new product have to be discussed...