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EXAM!!! Exam drop in tutorials Tuesday 5th June, 10am-2pm Thursday 7th June, 10am-2pm MSG4.G (below Momento Cafe) - Do reading of slides/textbook before hand Select topics/specific areas you would like clarification on Email questions to Verity, not your tutor Section A - Compulsory: Multiple choice...

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EXAM!!! Exam drop in tutorials Tuesday 5th June, 10am-2pm Thursday 7th June, 10am-2pm MSG4.G.01 (below Momento Cafe) -

Do reading of slides/textbook before hand Select topics/specific areas you would like clarification on Email questions to Verity, not your tutor

Section A - Compulsory: Multiple choice - 30 question 1 mark each (30 Marks Total) Section B - Short answer Question - Answer 1 of 2 Questions - 10 Marks each (10 Marks Total) Section C: Essay Questions - Choose any 3 of 4 Questions - 20 Marks each (60 Marks Total) Exam Tips: 1. Read the question 2. Time management (min per multichoice) 3. Plan your answer - what points you want to bring up etc. 4. Provide Theory + examples (best example is from trade show - explain what you did) - E.g market research - give examples from own research 5. Don’t leave early Students fail because: - Lack of knowledge - Lack of technique Read the question: - Discuss the promotional mix variables - Answering - “price is…” = wrong! NO MARKS

3 Major Fails - Students answer more questions that required for the short answer or essay sections B &C - You will only get arks for the first question/first 3 questions you answer in these sections - Students ignore the marks that are allocated to each section - Time management is critical - Each mark = 1.5 minutes - 10 Marks = 15 minutes - 20 Marks = 30 minutes Section C: Essay Questions E.g. Question 2. - Use examples to illustrate your answer Question 3. - A. (10 Marks) - B. Use relevant examples to illustrate your answer? How essay marking is done As a rough guide: - Marks will be allocated based upon points that show understanding of the key concepts asked for = 50% -

Marks will be allocated based upon examples showing application of those theories = 30%

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Marks will be allocated for creative, insightful points (implications) = 20%

Exam Essays 1. Read the Question 3x 2. Identify the topic area and concepts 3. Re-read the question 4. Draw your mind map 5. Answer the question Sentence form not points Get straight to the point Do not repeat the question in your answer

Do not white-out: cross out anything you do not want marked Use relevant examples (think of when you go to buy a product - do you spend time and consider your options - different processes behind this) 6. Write 5-6 pages for a 20 mark question 7. Manage your time 30 marks = 45 minutes

Answers -

You need to write enough to get the marks -

1-2 page answers rarely have enough key points to get adequate marks to pass

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A twenty mark question is probably wanting between 5-14 key points, each worth 1 to 3 marks per point

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Marks given for examples 1-3 per example

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If it appears to be an easy question the key points are probably worth less marks

Using point format - For most exams you are required to write your answers in essay format - Plan them out first in a point forat - You will probably not get marks for those points but it will help in two ways - It makes it easier for the examiner to give you the marks - It helps you develop your answer Study Aid: Mind maps

Marketing strategy: 7 Ps - Augmented - Actual - product

Structure your study - Look at past year exams - last two years (same format) - Do the ‘check yourself’ questions in each chapter of the textbook - Identify the central slides/core concepts in each topic area and develop mind maps 1. Core areas 2. Branches with examples (trade show or real life) 3. Relate these concepts to your own experiences where possible - Write 5-6 page essay answers on each topic area/past exam questions - Use examples - Throughout the process refer first to the lecture slides and then to the textbook Common goal of marketing - Putting consumers at the heart of our organisational activities - Creating customer value and building profitable customer relationships by: - Understanding consumer needs and wants - Deciding which target markets we can best serve - Developing a coherent and compelling value proposition to attract, retain, and grow target consumers

Core aspects of marketing

Creating value

The fundamental purpose of marketing is to create value by developing a variety of offerings, including goods, services and ideas, to satisfy customer needs. Customers have needs and wants -

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Customers have unsatisfied needs which lead to demand for products and services - Functional, emotional, life changing, and/or have social impact - Basic physical or survival needs for food, drink warmth, shelter, and rest - Psychological needs for security, belonging, love, self-esteem and fulfilment (actualization) Wants reflect a personal preference for how a person desires their needs be satisfied

Understanding and creating customer value -

People do not buy products or services per se People buy a bundle of benefits Value for the customer is derived as an intrinsic function of the product’s features, services, and price Value represents the relationship of benefits to costs Value differs between individuals - customer characteristics, age, lifecycle, beliefs, gender, cultural, state of economy, technology… This value will depend not upon the entire perceived benefit including factors such as after-sale service, delivery, warranties and repair

The Buy ‘Utility’ – usefulness: form, place, time, possession. Product by itself is Sales Bundle of Benefits is Marketing WATCH LINK OF VIDEO:

http://www.bain.com/bainweb/media/interactive/elements-of-value/# Creating value through the 4Ps: The marketing process 1. Understand customers needs and wants (research) - Determine the Value Proposition i.e. The Bundle of Benefits 2. Create a organisational offering (marketing mix) that profitably c  aptures that value – (Product/Service & Price) 3. Communicate the Value Proposition (Promotion) 4. Deliver the Value Proposition (Distribution/Place) 5. Monitor environmental changes that influence customer needs and wants (Research)

All elements of the Marketing Mix are focused on providing and capturing value

Marketing entails an exchange

Marketing can be performed by everyone: individuals and organisations

Marketing impacts various stakeholders

Price: Capturing value -

Everything has a price, but it’s not always monetary – buyers give up money, time and energy How much are customers willing to pay so that they are satisfied with the purchase and the seller achieves a reasonable profit? Does providing good value mean selling at a low price?

Try and compress pain parts of purchasing etc - paint points Place: Delivering the value proposition -

Place, or supply chain management, describes all activities necessary to get the product to the right customer when the customer wants it Without a strong and efficient marketing channel system, merchandise isn’t available when customers want it, resulting in poor sales and low profits

Promotion: Communicating value -

Promotion is communication by a marketer that informs , persuades and reminds potential buyers about a product or service to influence their opinions or elicit a response

Business Orientations - NOTE -

How we came about to this marketing concept Example: Henry Ford with his model car - this meant the wider society of America could have this model

Analyse the external environment - External forces

- The macro-environment  is where ‘uncontrollable forces’ l ie - It is concerned with broad trends and patterns i n society as a whole P olitical/Legal E conomic S ocial/Demographic T echnological Notes: These are Uncontrollable factors They differ from how we might respond – first outline the issue or potential CHANGE, and how it may affect your organisation IF IT OCCURS AND YOU DID NOTHING That is… separate Cause and Effect; PEST focuses on causes Demography is included (as is a geographic element) Technological Environmental Forces T (for technology) has become the dominant and dramatic agent of change within external (uncontrollable) and internal (controllable) environments. The Internet - Social Media - Mobile Media - Smart devices

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Internet of Things (IOT) Big Data

Driverless vehicles Robotics, Genetics, Biotech Relationships Health developments

Competition -

Financial capabilities Technical abilities Omni-channels, SAAS, Lean Methods, Sensory Personnel Alliances and partnerships Analytics Intellectual Property

Tips of conduction PEST(LE+D) -

List and describe these uncontrollable factors This is different from how we might respond First outline the issue or political CHANGE Then, how it may affect your organisation IF IT OCCURS AND YOU DID NOTHING That is… separate the Cause  and Effect  f rom the Response PEST focuses on Causes

Fair trading Act 1986 - About mis leading practice or deceptive conduct - To do with promotion, sales technique and pricing - Protects consumers and can apply to what you do on trade me - The act was developed with the Commerce Act to encourage competition and to protect consumers from misleading and deceptive conduct and unfair trading practices. The act applies to all aspects of the p  romotion and sale of goods and services from advertising and pricing to sales techniques and finance agreements. - Prohibits among other things, misleading or deceptive conduct and the making of false representations in trade - Primary consumer protection legislation but also protects law-abiding traders and can apply to business-to-business transactions

Consumers Guarantees Act 1993 -

Imposes minimum guarantees for the supply of goods and services to consumers “Consumer”- s2-a person who acquires from a supplier goods and services of a kind ordinarily acquired for personal, domestic or household use o  r consumption-not for the purpose of supplying them in trade, consuming them in the course of a process of production or manufacture, or in the case of goods, repairing or treating in trade other fixtures on land

The internal (micro) environment - Uncontrollable - Known as the immediate environment, micro environment or the internal environment - Defines who we define our business - The much more immediate and ‘visible’ aspects of our marketing environments -

Mission, objectives and goals Core competencies and capabilities Competition Our corporate partners (in the value chain) SWOT Profiling

SWOT Profile: Bringing it together

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Is not an Analysis  in itself SWOT is a summary table of the critical factors in our environmental analysis Options and strategies are not the same as opportunities! How we might then use SWOT (Have included Blue Ocean responses to each of these areas)

Analyse the internal environment - Branding The brand of an organisation is the quality perceptions that people associate to their name, symbol, or sign -

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Brands exist in the minds of customers Consumers form emotional bonds and trust with brands Increases retail acceptance Reduce the importance of price in the consumer decision process A brand represents the entire marketing mix, not just the product A brand is, ‘What you stand for’ Brand awareness i s key. Consumers cannot buy products they don’t know exist Branding provides the firm with ways to d  ifferentiate its product offering from that of its competitors i.e. creates a separate identity that consumers, stakeholders, suppliers, competitors, and employees can recognise Invest less, retailers and customers want this - gives them more benefits

EXAMPLE - Think about those people spending money on Kanye's clothes

Aka Company Analysis or Internal Analysis or, in the resource based view ‘internal capabilities’ Brand cannot rescue a bad product - if you have a bad product a good brand might allow you to reconfigure the product and have another go. The brand is part of the differentiation process as it is what makes us different to our competitors. The value of branding -

Facilitates purchasing Can generate high awareness, trust, and consumer loyalty Increase trade acceptance (i.e. retailers prefer) Reduces the importance of price in the consumer decision process Protects from competition Are assets (legally protected forms of ownership) Impact market value as directly impact the bottom line

Summing up: The marketing concept - Marketing creates value in many ways - Bundle of benefits - Value represents the relationship of benefits to costs - The best firms integrate a value orientation into everything they do - Successful firms integrate marketing throughout their organisation - Marketing helps facilitate the smooth flow of goods through the supply chain - Firms ‘do the right thing’ by considering social-economic and environmental impact of their activities, and maintaining ethical practices - Everything a firm does should revolve around their customer. The firm must discover their needs and wants and then provide a valuable product that can satisfy them. - Collaboration with partners and an understanding of their competitors helps to add value. - PEST (LE+D) framework assists our understanding of uncontrollable external environmental forces - SWOT profile assists us to understand and evaluate the important elements of our controllable internal environment - A firm must also understand cultural issues and demographics to identify specific customer groups. - The economy will influence patterns of consumer spending. - Technological advances helps marketers provide consumers with more products, and provide services more efficiently. - Generational cohorts are groups of consumers from the same generation, usually defined within a period of years. - Social trends such as thrift, health and wellness, green marketing, privacy and a time-poor society will impact what consumers purchase and consume.

Marketing Research: A definition

“A set of techniques and principles for s  ystematically  collecting, recording, analyzing and interpreting data that can aid decision makers involved in marketing goods, services, or ideas.” (Grewal et al, 2015)

Research is marketing “lifeblood” -

Companies require insights Companies require accountability of marketing decisions and spend The aim of market research is to reduce the risk of making decisions.

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The Information gathered will depend upon - Time & cost restraints - Previous knowledge - The risk of making a bad decision

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There is a cost and a benefit of collecting information.

Marketing research process

1. Defining objectives and research needs (i.e. the problem or opportunity) 2. Designing the research (to fit the situation) 3. Data Collection process (get relevant data) 4. Analysing data and developing insights (interpreting the data) 5. Action plan and implementation (solving the problem or opportunity and presenting the results to decision makers)

Step 2: Designing the research

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What are the ways I need to go about collecting data that will accurately, adequately (and cost effectively) answer my research questions?

Data does not become information until we interpret it Step 2: Sources of data

Secondary - What we already have - Government data - Company data Primary - Focus groups - Customer interviews - Surveys

Quantitative vs Qualitative

Qualitative research -

In-depth Interviews use trained researchers to ask questions, listen and record the answers, then pose additional questions to clarify or expand a particular issue Focus Group Interviews involve a small group of people coming together for an intensive discussion on a particular topic

Quantitative research - Concrete, numerical data - Accessible for complex statistical analysis - Preferred by academics - Questionnaires (surveys) commonly used Advantages - Can show results numerically (clear cut) - No ambiguity in interpretation - Fast - Relatively low cost for large samples Disadvantages - Sample size is key, and larger samples costly - A lot of behaviour cannot be explained numerically - Errors, assumptions and bias inevitable in research design & questionnaire development - Researcher bias leads to biased results Casual Research: Experiments - E.g. with medicine experiments testing to make sure it works a certain way Experimentation - use of controlled conditions to investigate effects i.e. laboratory tests or test marketing

Experimental Design - understanding the relationship between two or more variables. Systematically manipulate one or more variables while one variable is measured to see changes - i.e. increase price – what is the effect on quantity demanded? The aim is to see if a causal relationship exists i.e. increase in price causes a reduction in demand Summing up: Marketing research -

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Marketing research is a five-step process Secondary data comprises information that has been previously collected. Primary data is collected to address specific research needs Secondary data is easier and generally less expensive but because it is usually collected for reasons other than those pertaining to the specific problem, it may be dated, biased or insufficient, and therefore may not answer the question. Market researchers should gain permission to collect information on consumers. This information should only be used for the purpose of conducting marketing research and not when the intent is to sell products or to fund-raise

Segmentation, Target marketing and positioning

The STP Process

Why do we segment a market? -

Companies segment a market to determine which group of potential customers they can provide the most value to. Essentially, an organization needs to determine which segment has wants/needs that match with a company’s strength’s or capabilities? In markets with customers who value different things it is not profitable or viable to try to target everyone in the market with the same bundle of benefits/marketing mix/brand. People want different things. We may create different mixes.

Segmentation -

Geographic: customers are sorted into groups on the basis of where they live Demographic: customers are grouped based on their age, gender, income and education. This is because these measures are easy to identify Psychographic: d  elves into how consumers describe themselves Psychographic differs from demographic as consumers self-select based on how they choose to occupy their time and the underlying reasons for this

Advanced segmentation -

Behavioural: divides consumers into groups on the basis of how they use the product, including occasion and loyalty Benefit: groups consumers on the basis of the benefits they derive from products

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Deep insights from Actual Behaviour. Behavioural and Benefit are much more robust (predictive) methods of segmentation than intermediary measures such as Attitude etc that rely on people’s self-reports and social biases.

Targeting - Evaluate segment attractiveness upon 5 dimensions

Step 4: Selecting a target market Market Coverage -

Should we sell one version of our product (a single marketing mix), or; Should we have multiple versions targeted to different segments in the marketplace?

This first question asks us how much of the market to serve – all segments i.e. the entire market, or certain selective segments of the market Undifferentiated: where everyone is considered a potential user of its product Differentiated: target several market s...