MARKETING

MARKETING

1. COMPANY & MARKETING STRATEGY: PARTNERING TO BUILD CUSTOMER RELATIONSHIPS

   • Strategic Planning
     • Coperate Level
       • Defining the company mission
         • Mission Statment
         • Goals
       • Setting company objectives and goals
         • Objective are derived from the mission statment
         • Each department / division will have different objective/sets of objectives
         • Amazon's overall objectives
         • Book division's objectives
         • Book division's marketing objectives
       • Designing the business portfolio
         • business portfolio
         • SBUs (strategic business units)
         • Analyze current business portfolio
           • Boston Consulting Group (BCG) Approach
             • Growth-share Matrix
               • SBUs change their positions in the growth-share matrix as time passes
               • Growth Stages
                 • Emergent stage-> growth stage ->mature stage-> declining stage
                   • First image
               • Once each SBU is defined, a company can determine what role each will play on the firm's future
               • Advantages
               • Disadvantages
           • Develop For Growth and downsizing
             • Growth
               • • Product Development Strategy
                 • Market Penetration strategy
                 • Market Development Strategy
                 • Diversification
             • Downsizing strategies
     • Business unit , product, and marketing level
       • Planning marketing and other functional strategies
         • Planning marketing and marketing mix
           • Marketing Strategy
             • The marketing mix is developed based on the marketing strategy
               • Product
               • Price
               • Place
               • Promotion
             • the strategy be costumer-driven(defining target market is important
               • Segmenting
               • Targeting
               • Differentiation
               • Positioning
             • Planning
             • Implementation
             • Control

2. CREATING & CAPTURING CUSTOMER VALUE

   • Marketing process
     • Give to customer
       • Understand the customer and market
         • Needs
         • Wants
         • Demand
         • Value and satisfaction
           • Value
           • Satisfaction
           • Market
           • Metamarket
         • Market offering
           • Compination of product , Services 
           • Market Myopia
       • Design a customer-driven strategy
         • Defining target market
         • Defining value proposition
         • Evolution of marketing concepts
           • The production concept
           • The product concept
           • The Selling concept
           • The marketing concept
           • The Societal marketing concept
       • Construct a marketing program
         • 4 P's
           • Product
           • Price
           • Place
           • Promotion
       • Build profitable Relationships and create customer delight
         • Acquir
         • Retain
         • Customer Relationship Manaegment (CRM)
         • Partnership Management
     • End Result
       • Capture value from customer
         • Creating loyalty and retention
         • Customer Equity
         • Growing share of customer
         • Sales and market share
         • Trends in marketing

3. UNDERSTANDING THE MARKETPLACE AND CONSUMERS

   • ANALYZING THE MARKETING ENVIRONMENT
     • Marketing Environment
       • Microenvironment
         • Competitors
           • Crucial to differentiate the product and offer superior value
         • Company
           • All Departments in the business (think JMSB majors)
             • Each department has its own objectives
             • Marketing department has to take other department into account
           • All departments combined of internal environment
         • Suppliers
           • Providers of resources necessary to produce
             • Marketing managers need to monitor the prices, quality and availability of supply
         • Inermediaries
           • Help the company distribute, promote and sell products to customers
             • Resellers
               • Wholesalers
               • Retailers
             • Physical distribution
               • warehousing
               • Transportation firms
             • Marketing Services agencies
             • Financial Contractors
         • Customers
           • Consumers
           • Businesses
           • Goverments
           • International markets
         • Puplics
           • Group with an actual pr potential interest in the company/ that has the ability to influence the company's performance
             • Financial
             • Media
             • Goverment
             • Citizen-action group
             • Local
             • General
             • Internal
       • Microenvironment
         • Demographic
           • Size, density , location , age , race, sex, occupation , and education of a population in given market
             • The tree largest age groups
               • The baby boomers (born between 1947- 1966)/ 50% of country's wealth
               • Generation x (1967-1976)
               • Generation Y (Millennials / 1977-2000)
         • Economic
           • Factors that effect consumer purchasing behavior
             • Changes in income
               • Income distribution levels
               • Value marketing (offering great value at a smaller return
             • Changes i spending patterns
               • Engel's law: as income rises ,% spend of food declines, % spent on housing remains constant , % spent on other categories and saving increases
         • Technological
           • New markets and opportunities are created with new technology
             • Existing product/service are being replaced (dvd,blue-ray)
             • Investment in R&D required(driverless cars)
         • Natural
           • Resources used by marketers/affected by marketing activites
             • Shortage of raw materials
             • Increased pollution, global worming -> increased governments regulations
             • Environmental trend ->increased demand for green products and sustainable practices
         • Political
           • governmental laws and regulations /to protect local industry/the . environmental
         • Cultural
           • Core belief/value -> your fundamental , resistant to change
             • Ex: believing the education is important
           • Secondary belief /value -> open to change
             • Ex: believing that people should go to university
           • Most cultural belief/values are expressed in people's perceptions of : themselfs, others, society , organization ,nature, the universe
   • MANAGING MARKETING INFORMATION
     • Purpose of Research
       • To identify the problems
       • To solve marketing and other business problems
         • Ex: Finding out how to help customers
       • To identify and define marketing opportunities
         • Ex: growing demand for a particular product
       • To Evaluate marketing actions
         • EX: Finding out which of two possible products customers will prefer
     • 3 sources of information
       • Internal Data
         • Information from data sources within the company
           • Accounting Department: Financial Statments
           • Operations:information about inventories
           • Marketing Department: Demographics, psychographics, purchasing behavior
           • Sales Force: Reseller reactions
           • Customer Service Department: Customer Reactions, complaints
         • Advantages
           • Can be accessed quickly
           • Cheap to access
         • Disadvantages
           • Can be disorganized
           • Can be incomplete
           • can cause biased results
       • MArket intellegence
         • The collection and analysis of publicly avalible information about customers , competitors and trends in the market environmental
           • can be collected inside the company(employees from different department)
           • can be collected from suppliers. resellers, key customers , etc
           • can be collected by observing competitors/their published information
           • "Dumpster diving" (looking for competitor garbage) - legal but unethical
       • Marketing Research
         • Systematic design , collection , analyses and reporting of data relevant to a specific marketing situation facing the organization
           • T?he marketing Research process
             • Stage 1: Define problem and research objectives
               • Type
                 • Exploratory Research
                   • Descriptive Research
                     • Causal Research
               • Purpose
                 • Preliminary information to uncover the problems /hypotheses
                   • To describe marketing problems/situation/ market potential
                     • To test hypotheses about causal relationships
               • Example
                 • Find opportunities for new product in the market
                   • Attitudes of customers regarding new product
                     • is there casual relationships between the weather and consumption of ice cream
               • How
                 • Case analysis ,in depth-interview.focus group
                   • Cross section surveys , store audits
                     • experimental design , market test
             • Stage 2: Developing a research plan
               • Determining what information is needed
               • Developing a plan to gather it
                 • Who, what, where, why , when , how ?
                 • Primary/Secondary Research
               • Presenting plan to management
             • Stage 3: Secondary Data collection
               • Existing data/ information from internal or external sources collected for another purpuse
                 • Internal Sources: Company database
                 • External sources:
                   • External database-> business data / ex: PMB , IBIS word
                   • Internal data /Ex: Google
                   • Government data/ Ex: stats canada
                   • Advantages
                     • Quick acesss
                     • Inexpensive
                     • Can provide data the company cant collect by itself
                   • Disadvantages
                     • Not necessarily precisely relevant to the situation at hand
                     • Can Be unavailable
                     • Can be outdated-> inaccurate
                     • Can be unreliable
             • Stage 4: Primary data collection: new data collected by the company secifically to answear the problem/research obkjectives
               • Research Approaches
                 • Observation
                   • Mechanical obervation -> Using computer and machine
                   • Checkout scanner -> Recording purchases
                   • Cookies-> Monitor Internet users
                   • Disadvantages
                     • Motives/feeling cannot be obsearved (you can obsearve how a person is acting but not why he is acting that way)
                   • Advantages
                     • Good Exploratory research
                     • Can obtain information people wouldn't provide in interview/survay
                 • Survey
                   • Asking people questions to get insight about their opinions and preferences
                     • Written form(mail/online) or oral form(by telephone/in person)
                   • Advantages
                     • Good descriptive research
                     • CAn get a lot of insight by asking the right questions
                   • Disadvantages
                     • Sometimes, unwilling to answer truthfuly/talk about private matters
                 • Interview/focus group
                   • Interview: asking a series of question face to face
                   • Focus group: on average , 6-12 people that participate in a free discussion centrad around a brand /product
                 • Expermintal
               • Contact methods
               • Sampling plan
               • Research instuments
             • Stage 5: Implementing the research plan
               • Hiring fieldworkers and getting people to participate in the research
               • analyzing the data and transforming it into meaningful information
             • Interpreting and presenting the finding
               • Involves interpreting the information -> how can this information be used ot the company advantage
               • reporting the finding to management
   • UNDERSTANDING CONSUMER BEGAVIOUR
     • CONSUMER BEHAVIOUR : PURCHASING BEHAVIOUR OF END CONSUMERS
       • END CONSUMERs : Individuals/households
         • Not business
       • Consumer Behaviour includes
         • How individual maeks purchasing decision
         • how consumes the product/sercice
         • how disoses of the product or service
     • Consumer Decision-making process
       • Need Recognition and problem awearness
         • Internal: hunger/thirst/etc
         • External : advertizing/ disscution with friend
       • Information search
         • Internal :personal recollection of product /experiances
         • Exteranl : sources by Md(commercial sopurces/)/not by Md (public/Experientaial/personal)
       • Evaluation of alternatives
         • All Brands
           • Known brand
             • Acceptable brands
               • Purchased brand
               • Rejected brand
             • Unacceptable brand
             • Overlooked brand
           • Unknown brands
       • Purchase
         • afer evaluatin making purchase by who . to buy froma dn when to buy
         • can be influned through : attitudes of others (family members), unexpected situational factor(unaccepted cridet or no stock
       • Post-purchase behaviour: diffrence between consumer expectation and brand percived performance
         • Cognitive dissonace
           • consider of comprmises
           • more likley to happpen with bigger purchases
           • To reduce it : good after sale service/ warranties/ advertizing