MGMT 390 (phase 2) Lecture 1 - 8 PDF

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Prof. Jose Casal
Winter 2017-2018
Phase 2...

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W1  Lecture 1: Intro to Marketing (Ch 11)  Marketing is a process:  - design right products and services - setting the right price - identifying the right customers (target market) - connecting w. Customers effectively  Needs, wants and demands - come from customers - demands can be measured or created Products, Services, Experiences - competitive adv. - more than just one of the 3 Exchange, Transactions, Relationships - residual, profit - relationship: series of on-going transactions Markets - competitors Value and Satisfaction - can expect future transactions  Marketing v. Sales - pushing products through sales channels in hopes to make profit - marketing entices customers into consuming Changing Markets: - tech changes - connections w. Customers and suppliers - demographic and social - end of mass marketing, markets are segmented - global markets - global customers and transactions  Successful Marketing - change positioning and look - broadened target market - extended product line - effective communication strategy Types    

 Lecture 2: Consumer Behavior (Ch 11)  Factors Affecting Consumer Behavior - Cultural - culture, subculture, social class Global Markets - Social - reference groups, family, roles and status Determines lifestyle - Personal - age and lifecycle stage, occupation, economic situation, lifestyle

- Psychological - motivation, perception, learning, beliefs and attitudes  VALS (Values and Lifestyles) Experiencers - buy products based on experience of it Achievers - status value of car (symbol of accomplishments)  Personality Extrovert - love attention, very social Neuroticism - feeling of doom, racing thoughts Agreeable - easy to agree with avoid conflict Conscientiousness - very responsible considerate Openness - try new things Maslow’s need hierarchy Esteem - need to feel good about themselves (recognition) Social - being part of community w. Deep social ties Safety - feel confident product or service is safe Learning - Past experiences teach us things - past experience with product - assimilation of other’s experiences Buyer behavior: need recognition ---> info. Search ---> evaluation of alternatives ---> purchase decision --->purchase behavior Low product involvement: new toothpaste High product involvement: new car

 Lecture 3: Corporate and Mark. (Ch 11) Competitive Adv. - positioning company to win - leveraging strength - outperforming competitors - matching competency w. Opportunity - HARD TO ACHIEVE Corporate Strategy - mission (what do we do) - business portfolio (what business are we in) - strategy (how do we win) Business Portfolio - Disney: theme parks, tv broadcasting, film, animation - NJIT: education, research, economic development Corp. and Mark. Strategies Define mission ---> setting goals ---> designing portfolio ---> plan marketing strategy Marketing Strategy - gain comp. Avantage - managing the market mix - price, product, promotion place Marketing Organization - product and brand management - marketing research - advertising and communication - new product development and testing  

 Lecture 4: Segmentation, Targeting ... (Ch 11)  Segmentation - chop up the market to identify segment profiles Market Segmentation (choose what you want to be in) ---> Target Marketing (segments you want to be in) ---> Market Positioning (differentiate v. competitors)  - geographic (by country, region within country, metro: urban, suburban, rural) - demographic (SES, family lifestyle, generation) - psychographic (social class, lifestyle, personality - behavioral (user, product benefits) Target Markets - Undifferentiated (mass) marketing - Differentiated (segmented) marketing - several market segments - Concentrated (niche) marketing - high share in one or few segments, giving up mass market - Micromarketing (local / individual marketing)  Factors in choosing markets - size - growth rate - number and size of competitors - barriers to entry Positioning - gain competitive adv. In target markets - how is product better or different - why people should buy it (value proposition) 

 W2  Lecture 5: Promotion (Ch 13)  Advertising Strategy: objective setting ---> budget decisions ---> message strategy and media strategy ---> campaign evaluation  Advertising Objectives: Informative - build image or brand, explain product or service Persuasive - build brand preference Reminder - to use product Message Strategy: Positioning - Creative concept “big idea” - Meaningful, believable, distinctive (crap box v. dream car) Message Execution - Slice of Life (product in action in life) - Fantasy (Victoria’s Secret ads) - Mood or Image (Campbell’s Soup) - Humor - Testimonial - Scientific Evidence

*Safe advertising is risky*  Advertising Campaign - sustained, orchestrated ad for product, brand, company - most ads are part of campaign - message: - multiple, phased execution - manage effectiveness and wear out Wear Out - people get tired of campaign, ad or concept  Media Strategy - where / how the ads are placed - print - TV - Radio - Outdoor (billboards) - Internet Sales Promotional Strategies - incentivising people to use product or service - giving trials - coupon - rebates - discount - point of purchase - contests / sweepstakes Public Relations - mass promotion - press relations (ad for prius while talking about global warming) - product publicity - lobbying - community and investor relations

 Lecture 6: Pricing (Ch 13)  Pricing Strategies - product line pricing (high end and low end) - captive product pricing (razors) - product bundle pricing - segmented pricing - psychological pricing  Cost and production - product becomes more in demand, production goes up, production cost goes down Elasticity of demand - demand drop when price goes up, customers won’t pay higher price (can do without and inelastic is like price of rent) Break even point - where product pricing and production cost are at best ratio, with best amount of profit  New Products - skimming - price at premium at intro. - must be worth the price and barriers to enter - penetration pricing - low price to gain share - Ex. dell, walmart

Managing Price Changes Price Cuts - excess inventory - greater efficiency Price Increases - better product, higher costs Developing Pricing Strategies - maintain market share - maximize profits - successfully launch new products

 Lecture 7: Product (Ch 12) Product Life Cycle Management: Development ---> Introduction ---> Growth ---> Maturity ---> Decline Introduction - Slow Sales and losses (start up costs) Growth - attracts early adopters and later buyers - jump in profits as costs are spread out - add new feature to fuel more growth Maturity and Decline - slowing growth, need to spur consumption (research and development, price cuts) - extend as much as possible - modify market of product Decline - changing tastes - tech advances - competition  Product Portfolio Management New Product Development Idea gen. ---> concept development ---> marketing strat. ---> business analysis ---> product development ---> conventional iteration  Marketing Problems / Issues - manage portfolio - alignment of corp and marketing startegies - realistic expectations - need proper marketing mix - know when to withdraw - know when and how to revise product to extend life - develop new innovative products - how to attract and retain customers - find right target markets - develop the right position

 Lecture 8: Place [Distribution] (Ch 12)  Marketing Channel - (network) interdependent organization, what makes the product or service available Involves channel members and relationships, w. sellers and customer  Consumer Marketing Channels: Channel 1 - Producer ---> Consumer Channel 2 - Producer ---> Retailer ---> Consumer

Channel 3 - Producer ---> Wholesaler ---> Retailer ---> Consumer Business Marketing Channels: Channel 1 - Producer ---> Bus. Customer Channel 2 - Producer ---> Bus. Distributor ---> Business Customer Channel 3 - Producer ---> Manu. Rep or Sales Branch ---> Bus. Distributor ---> Bus. Customer Vertical Marketing Channels: Company owns Retailer, Producer, Wholesaler and sells directly to consumer  Multi-Channel System: One producer moves through multiple channels, ie. consumer, distributors, retailers, dealers etc.  Supply chain management: Supplier ---> Company ---> Resellers ---> Customers works w. reverse logistics (when customers return products)

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