S1 Marketing PDF

Preview

Summary

Download S1 Marketing PDF

Description

COURS 1: MARKETING DEFINITIONS DEF MARKETING: strategy to sell a product, responded to consumers’ needs, behaviors, wants!

-

!

- in essence, it’s about value, exchange, and a lot of common sense ! - either you ask customers what they want, or you use bid data to improve understanding of customers habits. ! ! ! ! ! Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging value with others .! —> What makes a product better ? !

-

EX: Hyundai Motors ! - spent a lot of money to improve its image to sell his motor!

!

• Forms of marketing traditional

contemporary

- making a sale ! - abundance of products in the nearby shopping

- satisfying customers ! - imaginative web site and mobile phone

centers ! - television, magazine, direct mails ads

blogs, inline videos, ! customers directly, personally

,

Defining M.’s role in a company • strategic planning: the heart of the company ! - the process of developing and maintaining a strategy fit between the organization’s goal and capabilities and its changing M. opportunities ! • a winning marketing strategy ! - What customers will serve ?! - How can we serve these customers best ? ! : • Knowing what the company is aiming for is via a statement of an organization’s purpose; what it wants to accomplish in the larger environment; needs to be specific, realistic, and motivating; today’s statement are market-oriented ! • Where does M. take place? —> M. environment ! - the actors and forces outside m. that affect m. management’s ability to build and maintain successful relationship with target customers ! ! !

MICROENVIRONMENT! • The company! M. must consider other parts of the organization like finance, R&D, purchasing, accounting, operations, design ! —> M. decisions must relate to broader company goals and strategies ! • Suppliers (=fournisseurs)! - Marketers must watch supply availability and pricing : what happens if you need widgets and only one supplier can make it ? (raw materials) ! - Effective partnership relationship management with suppliers is essential —> Be nice to those you work with !! • Marketing Intermediaries ! - resellers, distribution firms, financial intermediaries, marketing services, transport ! - help to promote, sell and distribute goods to final buyers ! - They are real partners, not just ways to sell ! • Customers !

- types of customers: consumer (us) , business (others firms) , reseller (ex: fnac), government, international ! • Competitors ! - conducting competitor analysis is critical for the success of the firm ! - a marketer must monitor it’s competitors’ offerings to create strategic advantage ! - «$keep your friends close but your enemies closer$» ! • Publics ! any group that has an actual or potential interest in an organisation ! —> incluses: financial, media, government, citizen action, local, general, internal !

MACROENVIRONMENT: ! • Demographic environment ! - the study of human population in term of size, location, age, gender .. ! • Economic environment !

- marketers should pay attention to income distribution (upper/middle/working calss)! - the distribution of income has created a two-tiered market: the affluent and the less-affluent ! • Natural Environment !

- involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities ! - trends: shortages of raw materials, increased pollution, green movement focus on environmental sustainability strategies ! • Technological environment !

! - rapidly changing force which creates many new marketing opportunities but also turns many existing product extinct ! - research and development is a key element ! - government agencies to regulate new product safety ! • Political environment !

- consists of laws, gov agencies, and pressure groups that influence or limit various organizations and individuals in a given society !

- legislation affecting businesses worldwide has increased ! - law protect companies, consumers & interest of the society ! - increased emphasis on socially responsible actions ! • Cultural environment ! - made up of institutions and other forces that affect a society’s basic values, perceptions, preferences and behaviors ! - persistence of cultural values ( chinese value, french values ..)! - secondary cultural values are more open to change (society, nature, perspectives change..)! • The new marketing landscape ! - with Globalization, new twists and trends are present within the environment that marketers plan in ! - challenges can include: the digital age, Rapid Globalization, Ethics and social responsibility, not for profit marketing ! • Responding to the M. environment ! «$these are three kinds of companies: those who make things happen, those who watch things happen, and those who wonder what’s happened$»!

COURS 2: The market place and customer needs ! ! ! EX: milk farmer —> his customer: supermarkets but consumers: population ! EX: biberon pour bébé : baby’s bottle —>

!

• exchange ! —> the act of obtaining a desired object from someone by offering something in return ! —> one exchange is not the goal, ! —> relationships are built through delivering value and satisfaction ! • market ! —> set of actual and potential buyers of a product ! ! • DEF: ! - Need: it’s necessary for our «$life$»! - Wants: just a —> the form of needs are shaped (=formé) by culture and the individual ! - Demand: wants which are backed by ! • marketing offers satisfy needs/wants/desires! - combination of products, services, information or experiences ! - offer may include: services, activities, people, places, information or ideas ..! - Products do not have to be objects but can just be ideas. EX: Greenpeace doesn’t sell an object but an idea ! • Value ! - customers form expectations regarding value ! - marketers to consumers ! • Satisfaction a satisfied customer will buy again and tell others about their good experience ! ! ! ! • Psychological factors: Motivation - a motive is a need that is sufficiently pressing to direct the person to seek satisfaction ! - maslow ordered needs based on how pressing they are to the consumer: ! `! • Psychological factors: perception

-

!

- perception includes: ! ! ! !

• Psychological factors: learning Learning theory describes changes in an individual’s behavior arising from experience !

Learning occurs through : -drives: a strong internal stimulus that calls for action ! -stimuli: objects that move drive to motive ! -cues: minor stimuli that affect response ! -reinforcement: feedback on action ! •Psychological factors beliefs and attitudes —> Belief: ! -a descriptive thought about a brand or service ! -may be based on real knowledge, opinion or faith ! —> attitude: ! -describes a person’s evaluations, feelings and tendencies toward an object or idea ! -they are difficult to change !

A/ MARKET SEGMENTATION • Segmenting consumer market - geographical segmentation ! - d segmentation: most popular bases for segmenting consumer market !

- using multiple segmentation bases !

! !

• Geographic segmentation variables: ! - world region or country, US region, State, city, neighborhood, density, climate .. ! ! • - age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, nationality ..! •

variables

- behavioral segmentation divides buyers into groups -

based on their knowledge, , , or ! but, buyers can be grouped according to: occasions, the different benefits that key seek from the product, usage( light, medium and heavy product users), consumer loyalty !

• Segmenting markets effectively - measurable: size, purchasing power, and profile of segment ! - accessible: can be reached and served! - substantial: large and profitable enough to serve ! - differentiable: respond differently ! - actionable: effective programs can be developed !

B/ TARGET MARKETING •

- segment size and ! - segment structural attractiveness !

-

level of competition ! substitute products ! power of buyers! powerful suppliers ! company objectives and ressources !

• target marketing strategies - undifferentiated targets the whole market with - differentiated

: market coverage strategy that ignores market segment differences and ! : market coverage strategy that targets several market segments and

! : market coverage strategy in which a company pursues a large share of one or a few submarkets like luxury brands ! micro marketing : the practice of tailoring products and marketing programs to the needs/wants of specific individuals and local customer groups. It includes: local marketing and individual marketing !

- concentrated -

• choosing a target marketing strategy considérations include:! - company ressources ! - the degree of product variability ! - product’s life-cycle stage ! - market variability ! - competitors’ marketing strategy !

C/ Market positioning POSITIONING - the way

-

on important attributes - t products relative to competing products ! involves implanting the brand’s unique in the customer mind ! perceptual positioning maps show perceptions of brands on important buying dimensions !

• choosing a positioning strategy - identifying possible —> competitive advantages: differentiation can be based on products, services, channels, people, image ! - choosing the right—> competitive advantage: ! > to promote: different ways: unique selling proposition or several benefits ! > differences to promote: important, distinctive, superior, profitable ! - selecting an overall positioning strategy ! > value propositions represent the full positioning of the brand ! > possible value proposition: ! • Developing a positioning statement

! - EX: To (target segment and need) our (brand) is (concept) that (point of difference) !

CCl: ! - not all consumers are alike ! - there are many considerations to take into account when establishing which consumer to build a relationship with !

COURS 3 MARKETING MANAGEMENT PHILOSOPHIES • Production concept Focus on production ! - view of consumers: ! —> they will buy as long as the product is available and affordable ! —> Model T: you can have any color as long as it’s black ! - Focus on production justified: ! —> demand is higher than supply! —> non-competitive product cost ! • Product concept Focus on the product ! - view of consumers: we have to have the best quality and the most features and they will buy ! - consumers might not care about quality and just want a low price ! - consumers might not be willing to pay for the best quality ! - consumers might be not able to discern quality difference ! - consumers might prefer simplicity! —> Issues of this both concept: marketing myopia: they forget needs and wants of consumers ! • Selling concept: focus on selling !

- view of consumers: we have to sell to them or else they won’t buy. EX: car insurance ! - focus on selling justified: introductory stages of product life cycle // unsought goods ! • Marketing conce - creating m rew exchange relationships ! - consumer needs an ! - view of consumers: ! - achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competition do ! - «$what does my consumer wants? then that’s what i will make$»! • Marketing management orientations

• societal marketing concept : !

the marketing strategy should deliver value to customers and other stakeholders affected by marketing decisions in a way that the consumer’s and the !

or

• Designing a customer-driven marketing strategy - what customer will we serve ? —> ! - how can we serve these customers best? —> ! • Consumer markets and buying behavior - consumer buyer behavior refers to the buying behavior of final consumers individuals and households who buy goods and services for personal consumption ! - all of these final consumers combine to make up the consumer market ! —> BASE de «$how and why a consumer buy a product$»! • Model of buyer behavior

! • Types of buying decision behavior

-

-

. it depends of what you buy: if it’s a house: high degree of involvement but if it’s a chewing gum. Higer level for products that are expensive, risky, purchase infrequently, and highly self-expressive ! degree of perceived differences between brands ! the type of decision will influence the promotional strategy most likely to be effective !

IMPORTANT

• The buyer decision process (related to your satisfaction)! 1) Need recognition ! - triggered by internal (person’s normal need) or external stimuli (advertisments, friends) ! - must reach an intense high enough to become a drive ! - needs are basic, wants are learned behavior to satisfy them ! 2) Information search ! - influenced by level of involvement (interest) in the decision ! - memory (internal) search ! - external search: personal, commercial, public, experiential sources of information ! - word-of-mouth sources are most influential (credibility) ! 3) Evaluation of alternatives ! - exaltation procedure depends on the consumer and the buying situation ! - attributes and importance weights are chosen as criteria ! - alternatives compared against the criteria ! - marketers can influence this stage; personal selling ! 4) purchase decision ! - two factors intercede between purchase intentions and the actual decision: !

and

5) Post-purchase behavior ! - what the consumer thinks and does after purchasing and using the product or service ! . Delighted consumers engage i positive word-of-mouth. Unhappy customers tell on average ! - cognitive dissonance ! • Buyer decision process for - new products: goods, services or ideas that is perceived by customers as new ! - the adoption process: mental process thought which an individual passes from first hearing about an innovation to final adoption ! - Five stages in the Adoption Process: awareness, interest evaluation, trial and adoption! - individual differences in innovativeness: consumers can be classified into five adopter categories, ! (laggards) ! - influence of product characteristics on rate of adoption: relative advantage, compatibility, complexity, divisibility, communicability !

• Marketing strategy: designing the business portfolio

! - business portfolio planning involves two steps: analyzing its current business portfolio + shaping the future portfolio by developing strategies for growth and down sizing ! EX: —> Food & refreshments: Lipton, Hellmann’s; Beauty: Axe, Dove; Home car: Skip, Comfort ..! !

IMPORTANT

EX: Under Armour ! -market penetration:! direct to consumers sales: E commerce, own retail stores, factory outlet —> direct-toconsumer sales tripled over the last 8 years. Account for 3à% of total revenue ! - market development: uses women in his add —> 28$ increase in women sales. 42% increase in traffic to UA.com !

-product development: chooses ! -diversification: a fitness app (measures your power) !

• Planning marketing: partnering to build customer relationships - provide a guiding philosophy! - inventif attractive opportunities ! - design effective strategies ! - build customer and partner relationship management: form strong value chains + form superior value delivery networks ! • Managing the marketing effort

1)

!

- finding opportunities, avoiding threats, understanding strengths, knowing weakness !

2) ! marketing plan include: executive summary, analysis of current situation(industry analysis, corporate size up, competitive analysis), objectives, targets and positioning, marketing mix, budget, controls! 3)

!

- process that turns strategies and plans into marketing actions that accomplish strategic marketing objectives ! - good implementation is a challenge ! - marketing department organization! 4)

!

- involves of marketing strategies and plans and taking corrective action ! - checks for differences between goals and performance ! - operating control, strategic control, marketing audit !

•

IMPORTANT

- build customer relationships by transforming the marketing strategy into action !

- includes the

of marketing: : what it is; : what it will cost; : where will you put it; : how will you talk about it !

IMPORTANT

COURS 4- MARKETING STRATEGY

•What is a product ? -a product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or want ! -a service is a form of product that consists of activities, benefits or satisfactions offered for sale that are essentially and do not result in the ! -can be an event, a person, a good ….. ! !

HYPER IMPORTANT • Product levels

-

TYPE OF CONSUMER PRODUCTS ! purchases bought with little comparison shopping !

-widespread distribution ! -mass promotion by producer : snack foods, toiletries, food products ! •Shopping product: purchases! -more shopping effort for comparisons ! than a convenient product ! -sélective distribution in fewer outlets ! -advertising and personal selling ! •Specialty product: -strong brand preference and loyalty, requires special purchase effort, little brand comparisons and low price sensitivity !

-exclusive distribution ! -carefully targeted promotions !

• Unsought product: - little product awareness and knowledge (or if aware, sometimes negative interest)! ! ! - aggressive advertising ( advertising everywhere) and personal selling by producers and resellers !

INDIVIDUAL PRODUCT AND SERVICE DECISIONS • Product and Service attributes - Quality: lined to customer value and satisfaction: the whole company need to be involved (TQM) ! - Features: + should be valued bu the customer as determined through market research ! - Style & design: as well as looks ! • Packaging ! - Often includes primary, secondary and shipping packages ! ! ! ! ! • Labeling serves to:! ! - must be careful not to mislead customers, fail to describe ingredients, fail to include safety warnings! • Product support services - survey customers regularly to assess crurent customer service ! - companies usa a mix of phone, email, fax, internet and interactive voice and data technologies !

•

-

PRODUCT LINE DECISION ! a group of products that are because they may: ! —> function in a similar manner ! —> are sold to the same customer groups ! —> market through the same types of outlets ! —> fall within given price ranges !

• product line length !

-

! !

A connaître

PRODUCT MIX DECISIONS , also known as a ! • Consists of all the product lines and items that a particular seller offers for sale: ! - width of product lines ! - length of products in lines ! - depth of versions of each product carried ! - consistency: how closely related the product lines are ! • Stages of the PLC (

):

product development: ! -Introduction: you cant make profit because you spend all your money to develop your product and its marketing ! -maturity: you can make profit !

PRODUCT LIFE-CYCLE STRATEGIES • The product life-cycle concept can be applied to a:! ! ! ! —> Using the PLC to forecast brand performance or to develop marketing strategies ! NEW PRODUCT DEVELOPMENT STRATEGY • New product development: the development of original products, product improvements, product modifications, and new brands through the firm’s own R&D efforts ! • New products c...