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Quiz Study Chpt 1  Intro to marketing Marketing – activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large. Marketing much more than advertising. Creating, communicating, delivering and exchanging offerings that have value’ recognises that marketing must involve an exchange that benefits both the customer who buys the product (a good, service or idea) and the organisation that sells the product (a good, service or idea). Customers, clients, partners and society at large’ recognises that organisations need to conduct their marketing in such a way as to provide mutual benefit, not just for the users of their products, but also for partners in the supply chain, and that marketers must consider their impact on society. Production Orientation: Demand for these goods was strong. Marketing at this time could best be described by the concept of a ‘production orientation’. Marketers’ offerings were largely determined by what could be made, and what people bought was largely determined by what was available. Sales Orientation: As competition increased, companies could no longer rely on consumers to want and buy everything they could make. This led to the ‘sales orientation’, which focused on increasing profits through advertising and one‐to‐one selling. Marketing orientation: In a new era of increased competition, businesses realised that customers would not automatically buy any product that a business happened to devise. The approach to marketing changed to a ‘market orientation’ in which businesses worked to determine what potential customers wanted and then made products to suit. Societal Orientation: Marketers have broadened the concept of market orientation to view the market as not just their customers, but also broader society. This view is reflected in marketers’ consideration of issues such as the sustainability of their products and the benefits their products might bring to society generally. This is known as a ‘societal market orientation’.

Marketing is a science, a learning process and an art. Marketers need to learn what customers, clients, partners and society want. This is an ongoing process as customer preferences are continually evolving. Customers’ needs and wants change with each product purchased, magazine read, conversation had or television program watched. Marketers must use information to maintain their understanding. Marketers must be creative and able to develop new ideas. Markets are cluttered and there are many options available to consumers. Marketers start by understanding the consumers, the market and how they are currently situated. This may involve under- taking some market research to gain insights into a problem the marketer currently faces or reviewing sales data to understand how the company is

currently performing. Marketers need to undertake a situation assessment to understand how their company is positioned relative to the competition. Successful marketing exchange  two or more parties participating, each with something of value desired by the other. All parties benefit from the transaction. Exchange must meet both parties’ expectations (quality for consumer, price for consumer and business). Value  assessment of utility, based on perceptions of what is received and what is given. Benefits Customer receives from product relation to price. Market group of customers with heterogeneous (different) needs and wants Types of markets; Geographic Location, e.g. Australian Market Product Smartphone market, TV market Demographic Age, sex, religion, ethnicity Customers are those people who purchase products for their own or someone else’s use, while consumers are people who use the good or service. Clients Refer specifically to customers of not-for-profit organisation. Partners Partners are organisations or individuals who are involved in the activities and processes for creating, communicating and delivering offerings for exchange Society  Society is a body of individuals living as members of a community. A society is a highly structured system of human organisation for large‐scale community living that normally furnishes protection, continuity, security and an identity for its members. Marketers must understand the needs of the societies in which they operate Many marketing decisions involve ethical issues, in which a choice must be made between multiple possible courses of action, which each involve different ethical, legal, social, economic and environmental considerations. Competing priorities are the source of many ethical dilemmas in business. Some of the most common that arise in marketing are truth in advertising, the marketing of products that may be dangerous or contribute to poor health, and engaging in fair competition with rival businesses Sustainable development  development that meets the needs of the present without compromising the ability of future generations. Achieving sustainable development includes strategies to reach economic (profit), social (people) and environmental (planet) goals. These include factors such as a reduction in consumption (purchasing less), changing purchasing (e.g. moving from finite energy resources to renewable energy resources), downsizing of the products consumed (e.g. purchasing smaller homes and smaller cars), the reuse of materials (e.g. recycling shopping bags into furniture) and the marketing of green products.

The concept of sustainable marketing refers to the marketing profession’s obligation to

change marketing processes in which the exploitation of resources, the direction of investments, the orientation of technological development and institutional change are made consistent with future as well as present needs. Chpt 2  Marketing Environment and Market Analysis Growth can be gained by selling more, increasing prices or reducing product costs. This puts marketers in a situation where they need to balance the customers’ needs with the companies’ expectations. marketing environment refers to all of the internal and external forces that affect a marketer’s ability to create, communicate, deliver and exchange offerings of value. The factors and forces within the marketing environment can be classified as belonging to the internal environment, the micro environment, and the macro environment. The internal environment refers to the organisation itself and the factors that are directly controllable by the organisation. The micro environment comprises the forces and factors at play inside the industry in which the marketer operates. Micro‐environmental factors affect all parties in the industry, including suppliers, distributors, customers and competitors. The macro environment comprises the larger‐scale societal forces that influence not only the industry in which the marketer operates, but all industries. Macro‐environmental factors include political forces, economic forces, sociocultural forces, technological forces, environmental forces and legal forces. This macro‐environmental framework has been called the PESTEL (for political, economic, sociocultural, technological, environmental, legal) framework. Micro‐ environmental and macro‐environmental forces are outside of the organisation and, while they can be influenced, they cannot be directly controlled. Marketers seek to monitor, understand, respond to and influence their environment. This is a complex task and encompasses all of marketing. Environmental analysis is an analytical approach that involves breaking the marketing environment into smaller parts to better understand it. Internal environment  parts of the organisation, the people and the processes used to create, communicate, deliver and exchange offerings that have value. The internal environment is directly controllable by the organisation. A thorough understanding of the internal environment ensures that marketers understand the organisation’s strengths and weaknesses. Strengths and weaknesses are internal factors that positively and negatively affect the organisation’s ability to compete in the market- place. Typically, marketers seek to minimize weaknesses and maximize strengths.

Internal Marketing  Cultural framework and a process to achieve strategic alignment between front-line employees and marketing. More specifically, internal marketing is a collection of activities, processes, policies and procedures that threat employees as members of an internal market who need to be informed, educated, developed and motivated in order to serve clients more effectively. Companies that provide and practice internal marketing are more likely to satisfy their employees.

Internal marketing is practiced in three main ways. First, the primary role of internal marketers is to manage internal communications to ensure that employees’ actions are aligned with company goals (internal communications). Second, internal marketing managers use market research to understand employees’ needs and demands (internal market research).

External environment  concerned with things outside of the organisation. The external environment encompasses the people and processes that the organisation cannot directly control. Marketers can only seek to influence the external environment. Micro environment consists of customers, clients, partners and competitors. Unlike the internal environment, the micro environment is not directly controllable by the organisation. The organisation can, however, exert some influence on the customers, clients, partners, competitors and other parties that make up its industry. Marketers must understand the current and future needs and wants of their target market. They must: • Understand what their customers value now • Be able to identify any changes in customer preferences • Be willing and able to respond to changes • Anticipate how needs and wants might change in the future • Be able to influence customer preferences Marketers need to understand their partners, how each partner’s processes work and how their partnerships benefit each party. Partners include the following: Logistic firms, financiers, advertising agencies, retailers, wholesalers and suppliers. To succeed, marketers must ensure their offerings provide their target market with greater value than their competitors’ offerings. Marketers seek to understand their competitors’ marketing mix, sales volumes, sales trends, market share, staffing, sales per employee and employment trends. They do this through casual and formal analysis,

Pure competition Numerous competitors offering undifferentiated products. No one can exercise market power. Monopolistic competition Numerous competitors offering products that are similar, prompting the competitors to strive to differentiate their product offering from others. Oligopoly small number of competitors offer similar but differentiate products. Barriers to entry.

Monopoly Only one supplier and barriers to entry Monopsony Market situation where there is only one buyer The macro environment encompasses the factors out- side of the industry that influence the survival of the organisation. In practice, the macro environment can be at any geographic level including local, state, country or regional (e.g. the Asia–Pacific or the European Union). In some cases, it is possible for marketers to influence macro‐environmental factors. However, these factors will always remain beyond a marketer’s control. For example, a company can lobby government to reduce the tax on wine, but they cannot directly control the rate set by the government. Situation analysis involves assessing the current situation in order to clearly state where the company is now. Together with organisational objectives, situation analysis is used as the platform for marketing planning. Marketers need to be able to analyse their current situation, understanding not only their own business, but also their competitors’ businesses and the marketing environment. As stated earlier, situation analysis leads to an assessment of where we are now. In addition to giving consideration to trends in the internal and external marketing environment, marketers must understand their past performance

SWOT analysis. SWOT is short for strengths, weaknesses, opportunities and threats. Strengths are those attributes of the organisation that help it achieve its objectives: competitive advantages and core competencies. Weaknesses are those attributes of the organisation that hinder it in trying to achieve its objectives. Strengths and weaknesses are considered to be internal factors and there- fore directly controllable by the organisation. Opportunities are factors that are potentially helpful to achieving the organisation’s objectives. Note the emphasis on the word ‘potentially’ in the previous sentence. Opportunities are only of bene t if the organisation responds effectively to them. Opportunities are factors that are beyond the organisation’s direct control, though the organisation may be able to have some influence over them. Threats are factors that are potentially harmful to the organisation’s efforts to achieve its objectives. Like opportunities, threats are beyond the organisation’s direct control, but require an effective response by the organisation. Opportunities and threats can arise from many different factors in the organisation’s environment. Week 3  Marketing and society Critical marketing is concerned with challenging marketing concepts, ideas and the values and systems that underpin it. These values and systems include free market capitalism, the profit motive, and the individualistic conception of consumer behaviour. Critical marketing encourages us to think about the wider implications of marketing activities and set these in their broader macro context. Critical marketing seeks to remind us that all marketing practice takes place within society and that society ultimately sanctions its continued existence. Social marketing seeks to develop and integrate marketing concepts with other approaches to influence behaviours that benefit individuals and communities for the greater social good. Social Marketing practice is guided by ethical principles. It seeks to integrate research, best practice, theory, audience and partnership insight, to inform the delivery of competition sensitive and segmented social change programmes that are effective, efficient, equitable and sustainable. Chpt 3  Market Research A marketing information system (MIS) is the structure put in place to manage information gathered during the usual operations of the organisation. In large organisations, the MIS can comprise considerable infrastructure and dedicated staff. Market research involves five major components: 1. defining the research problem 2. designing the research methodology 3. collecting data in accordance with the research design 4. analysing data and drawing conclusions 5. presenting the results and making recommendations.The stages in the market research

process are designed, of course, to lead to marketing decisions; that is, market research should result in a course of action. Before undertaking market research, the following must be considered. - Relevance - Timing - Availability of resources - Need for new information - Cost-benefit analysis. customers, clients, partners and society expect marketers to act ethically. Market researchers have an ethical responsibility to their clients or employers and to those who participate in the research (just as clients, employers and participants have an ethical responsibility to researchers). Market research brief - Executive summary - Introduction - Background - Problem definition - Time and budget - Reporting schedule - Appendices Types of research Exploratory research  research intended to gather more information about a loosely defined problem. Descriptive research  Descriptive research is used to solve a particular and welldefined problem by clarifying the characteristics Causal research Causal research assumes that a particular variable causes a specific outcome and then, by holding everything else constant, tests whether the variable does indeed affect the outcome. Types of Data Secondary data comprise information originally gathered or recorded for some purpose other than to address the current market research problem. The information may be held by the organisation (e.g. sales records or customer pro les generated from business documents) as part of its MIS (discussed earlier), or by some external organisation (e.g. a market research company such as the Nielsen Company or a statistics organisation such as the Australian Bureau of Statistics or Statistics New Zealand).

Primary data are data observed or collected directly from respondents as part of the current market research project (e.g. responses given on a questionnaire). You may be wondering why we discussed secondary data rst and primary data second — because it already exists, secondary data is cheaper, more quickly available and readily accessible, and often all that is required. Primary data only comes about through a dedicated market research effort.

Marketers should always assess whether their research questions can use secondary data before embarking on primary data collection. Quantitative research focuses on collecting data that can be represented numerically and analysed statistically. It often collects data by asking questions about ‘how much’, ‘how many’ and ‘how often’, usually via online, telephone, mail or in‐person surveys. Qualitative research focuses on obtaining rich, deep and detailed information through techniques such as interviews and focus groups. Chpt 4  Consumer Behaviour Consumer behaviour is the term used to describe the analysis of the behaviour of individuals and households who buy goods and services for personal consumption. Recall that the marketing mix refers to all the elements of the offering that the organisation makes to potential customers. An understanding of consumer behaviour informs every decision made about the marketing mix, including: • what product attributes will appeal to customers • how much value a product has for consumers and hence how much they will be willing to pay for it • the likely response to various promotional options • where the consumer is likely to want to purchase the offering • how the consumer evaluates the purchase • what the consumer expects from dealing with the organisation. Situational influences on consumer behaviour are perhaps the easiest to understand. They are simply the circumstances consumers find themselves in when they are making purchasing decisions and/or consuming the product. Power distance is the degree of inequality among people that is acceptable within a culture. Western societies tend to score low on ‘power distance’, reflecting their relatively egalitarian cultures, whereas Asian societies score high in ‘power distance’, reflecting the greater extent of social inequality and the traditions that maintain this. Uncertainty avoidance is the extent to which people in a culture feel threatened by uncertainty and rely on mechanisms to reduce it. Individualism is the extent to which people in a culture feel threatened by uncertainty and rely on mechanisms to reduce it.

Masculinity is the extent to which traditionally masculine values (e.g. assertiveness, status and success) are valued over traditionally feminine values (e.g. solidarity, quality of life). Australia, New Zealand and the United Kingdom are examples of more ‘masculine’ cultures, while the Scandinavian countries and Thailand are examples of more ‘feminine’ (caring and nurturing) societies.

The three components that make up an attitude are: • the cognitive component, which comprises the person’s awareness of and knowledge about the object or issue • the affective component, which refers to feelings towards, or approval of, the object or issue • the behavioural component, which reflects the individual’s actions or intentions towards the object or issue. The consumer decision‐making process involves five stages: Need/Want recognition Consumer is aware of unsatisfied needs o...