MKTG3303 Trimmed Exam Notes PDF

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Condensed Exam Notes with Key Concepts...

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MKTG3303 Marketing 4Ps 1) Price: What consumers pay for a product. Marketers must link price to real and perceived value of the product, as well as; supply costs, price of competing products, seasonal discounts. 2) Product: The goods or service being offered by a company, products must meet a certain consumer demand. 3) Place: Where the product is sold/ how its delivered to the market. Goal of executives is to get the product infant of the consumers who are most likely to buy it. 4) Promotion: Advertising, public relations, and promotional strategy,

Differentiation: Cost Leadership: Focus:

The 5 C’s of Marketing 1) Customers: Determine what their needs are. 2) Company: Determine if the company is in a position to meet those needs (SWOT analysis is a good tool) 3) Competition: Who competes with your company when meeting customer needs. 4) Collaborators: Determine if there are outside/ 3rd party sources that can help the company (distributors, suppliers, etc.) 5) Context: Determine if there are limitations due to: PEST Analysis

- Political issues (legal, trade regulations, taxes, labor laws) - Economic Issues (growth rate, labor costs, business cycle stage) - Social Impacts (demographic, education, cultures) - Technological developments: impacts on cost structures.

Topic 2 Porters 5 Forces 1) Threat of new entrants 2) Threat of substitutes 3) Bargaining power of customers 4) Bargaining power of suppliers 5) Industry Competition

Topic 3 What is a product? A good, idea, method, information, object or service created as a result of a process and serves a need or satisfies a want. It has a combination of tangible and intangible attributes (benefits, features, functions, uses) that a seller offers a buyer for purchase.!

Product Positioning: How to best communicate their products best attributes to their target consumers, based on customer needs, competitive pressure, available communication channels and carefully crafted key messages.

What are Product Extensions? Placing a established products brand name on a new product. Line extensions occur when companies introduce additional items in the same product category under the same brand name. (New flavours, forms, colours, etc.)

Products Breadth This is the number of items or particular styles that you carry of a particular product Product Width The variety of product lines that a company produces.

3 Product Levels 1) Augmented ! - The added value. Offers additional consumer services and benefits.

2) Core! - The benefit of the product that makes it valuable to the consumer. 3) Actual ! - The physical, tangible product.! - Brand name, quality level, packaging, design, features

Value Proposition (in marketing) an innovation, service, or feature intended to make a company or product attractive to customers.

Social Marketing: is the use of commercial!marketing!principles and techniques to improve the welfare of people and the physical,!social!and economic environment in which they live. It is a carefully planned, long-term approach to changing human behavior. ALSO USE THE 3 PRODUCT LEVELS For Social Marketing Core - healthy long lung cancer free life Actual- like anti nicotine things Augmented - support groups

Topic 4 Why 80% of new precast fail (LONG ANSWER) • Government regulations • Poor product differentiation • Poor launch support • Solving a non-existent problem • Not meeting consumer needs • Lack of market research

Different types of new product categories: 1) New to world products 2) Minor improvements 3) Reinventing self 4) Repositioning Existing Product

5) Line extension 6) Entering new product category

New Product Ideas Come from: • Product Managers • New Product Departments • New product managers • New Product committees

Biomimicry: (Getting answers from nature)

Topic 5 (Aug 30) Supply Chain Getting rid of middle management

- Downs stream / up stream activities - what’s the difference - Material Flows - Intermediaries - Distributers, retailer, wholesaler and agent/ broker Why do you think its important for consumer goods companies to use intermediaries? Information flows

- Internet of things How to make a supply chain more sustainable? • Remanufacture • Reuse • Recycle Down Stream Activities! Crucial for management of the supply chain, more concerned with the end product. Manufacturers > consumers Upstream activities Getting the materials to the manufacturer.

Topic 6

Marketing Communications/ Promotion Reach and Repetition - whats the difference? Integrated Marketing Communications (Advertising, print, word of mouth, online): 8 Forms of communication

Topic 7 Brand Equity: The commercial value that derives from consumer perception of the brand name of a particular product or service, rather than from the product itself.

Brand Awareness The extent to which consumer are familiar with the qualities or image of a particular brand of goods or services.

Brand Image The general impression of a brand held by real or potential customers

Brand Strategies (1 big brand, lost of little products)

House of Brands (The Just Group, Loreael)

Topic 8 (Potential Long Answer Topic) Price is linked to emotions important factors to determine price: (Internal Factors) Skimming Pricing - Penetrate the market at a higher price point, then as new models/ similar models are released, reduce the price tag. Penetration Pricing - Penetrate the market at a low price point to attract consumers. Then slowly raise prices over time. (External) Inelastic/ Elastic Fast moving Consumer Goods (elastic)

What role do you think the internet plays in influencing price decisions? • Easy access to information/ cheapest deal • Shipping and handling must be factored in

Topic 9 Consumers: A person who purchases goods or services.

Identifying customer needs: 1) Identifying your customers 2) Understand why they shop 3) Identify preferred shopping methods 4) Consider their spending habits 5) Find out what they think of you

Neuro Marketing:

- Eye gazing technology! ( Babies attract more attention, when the baby is looking towards the product name)

- Using effective packaging - Colour is key

Irrational Consumers Transactional Utility: The perceived value of getting a good deal. The difference between the amount payed and the notional reference price. Vicarious Learning Competition Crowd Sourcing Obtain (information or input into a particular task or project) by enlisting the services of a large number of people, either paid or unpaid, typically via the Internet.

Topic 10 (Digital Marketing) Advantages/ Disadvantages of digital marketing ADVANTAGES

DISADVANTAGES

• Targets a large number of potential

• Closely reliant on the internet

customers at one time • Enables direct advertise and creates awareness about a brand or product • Makes advertising more accessible to target consumers at any time or place • Enables companies to make INTERNATIONAL advertisements -

• Competing good and services appear on consumer search results/ homepage • Negative publicity can spread and harm the image of a brand • Only beneficial to consumer goods (not pharmaceutical , industrials goods, etc.) • May not reach older demographic.

eliminates geographical boundaries • Accessible any time, any place (Online shopping)

Strategic Formulation Process (As applied to DM) 1) Strategic Analysis = 2) Strategic Development = 3) Strategic Implementation! - Listening! - Talking! - Energising! - Supporting 4) Strategy evaluation

Make DM campaigns - familiar • Contents - something interesting to say • Network - a forum for them to talk and listen • Participation.

Digital Marketing Threats

- 6/10 customers have no interest in interacting with organisations via social media - Technology is rapidly evolving, attention must be refreshed constantly in order to keep up. - NEED to make the right distribution channel choice - RISKY in terms of the threat to brand image - a wrong move on a social media platform could result in a serious threat to a companies brand image....