Studied by 10 people
Marketing: Planning, Research, Product, Price, Place, Promotion, Other 3 P's, BCG Matrix,
Needs vs. Wants
Determining the difference between needs and wants of a customer: Needs are what humans need to survive; while Wants are desires, arguably humans have infinite wants beyond the ability to afford. The goal of marketing is to turn a customers wants into perceived needs.
What is Marketing?
Marketing involves identifying the needs and wants of a customer
Anticipating those needs and wants in the future
Seeks to satisfy the customer
About making a “Profit”
Impact on finance
Marketing costs money, joint effort between marketing and finance, need to work together closely to set appropriate budgets
Impact on human resources
Marketing requires staff and HR needs to be sure to hire appropriate staff who; for example, are innovative and competitive in marketing. People who are passionate, determined, a cultural fit, creative. This includes sales people
Impact on operations management (production)
Marketing requires the development of products
Operations need to be sure that products developed meet the specifications of marketing department to ultimately satisfy customers needs
What is a Market?
Market size: total potential # of customers in a particular market
Competitors: need to be aware of # and size of existing competition
Barriers to entry: obstacles that determine how easy or hard it is to enter a market
Examples of barriers to entry
economies of scale
financial requirement- high start up costs, cost of advertising
differentiation of products
govt policies( access to raw materials, licensing)
predatory pricing (other firms purposely lowering prices to drive other entrants out)
switching costs: the one time cost incurred by a customer when trying to switch suppliers
patent
Market oriented
Focused on making products that they can sell by determining what the customer wants
Product oriented
Focus on selling products that they make assuming there will always be a market for their goods
Pros- Market orientied
Increased confidence that their products will sell
Firms can respond more quickly to chang\e
Cons- Market oriented
Conducting market research can be costly
May find it difficult to meet frequently changing customers tastes
pros- Product oriented
Associated with the production of high-quality goods
It has a greater control over its activities
Cons- Product Oriented
A lot of money is spent on R& D which may not yield results
Ignoring the needs of the market can lead to failure
Marketing for Goods (vs. Services)
Are tangibles
Can be returned if there is a problem or customer changes their mind
There is ownership, it can be stored and consumed later
Goods can more easily be compared
Marketing for services
Are intangible
Cannot be returned
No “ownership”of the product; it is consumed immediately
Can be difficult to compare as experiences differ
Also differ depending on the location while goods do not
Market Share
Measures the value of a firm’s sales revenues as a percentage of the total sales revenue in the industry
Calculated: Firm’s sales in a time period DIVIDED BY the total industry sales in a time period
Importance of being a market leader
Being market leader can be used in promotional material
Market leaders are in a strong bargaining position with both suppliers and retailers
Recruitment of employees is easier
Despite this, it puts pressure on the business to continue to do well in the future and competitors and media will be watching your actions closely
Objectives For- Profit
Commercial Marketing: meeting the needs and wants of customers in a profitable way
Increased sales revenue, higher market share, improved brand awareness, developing new products
Objectives Non- Profit
Social marketing: to encourage the public to support a cause or change behaviors
Build membership, generate awareness, create positive attention, demonstrate organization’s value to society
Changing marketing strategies impacts
Changing consumer tastes
Internet and mobile technologies ( consumers have far more choice than ever before)
Competitive rivalry (prevalence of multinationals has increased competition)
Globalization ( causing consumer tastes to become integrated)
Is Marketing and Advertising the same?
Advertising is the exercise of promoting a company and its products or services through paid channels such as social media, TV, internet, magazines
Marketing Mix
Product, price, promotion, place
Product
this is the good or service offered in the market
Price
This is the amount consumers are charged for a product
Promotion
this refers to the various ways in which consumers are informed about and persuaded to purchase a product
Market segmentation
Demographic, Geographic, Psychographic
Demographic
Age, gender, race, marital status, religion, and socio-economic status
Geographic
Location- cultures and attitudes; climate
Psychographic
Lifestyle choices including habits, hobbies, interests, and values
Examples of market segmentation
Dink- Double income no kids
Silk- Single income lots of kids
Woof- well off older folks
Oink & Oinky- one income no kids yet
Market segmentation definition
Splitting a market into individual sub-groups consisting of customers who share common characteristics
Market Segment
is a sub group of market made up of consumers with similar characteristics
ex- clothing market
Target markets
are the segment of the market that the business is going to aim its products
clearly identifiable group of customers that an organization focuses its marketing efforts on- from this markets can create a suitable marketing mix
ex- segments of clothing market include: kids, men’s, women’s,
Sub categories may include low-income vs. middle income
Order of market segment vs target market
Market segments first identified
Then business determines which segment they will target
Consumer profile
detailed description of your current customers- figuring out who is actually buying your product to tweak your marketing mix
Consumers profile helps…
A consumer profile helps businesses to get a clear picture of the consumers in the target market to allow for more successful marketing and sales
main character
Main characteristics of consumer profiels
Income levels
Age
Gender
Social class
Region
Mcdonald’s takeaways
segmenting central to marketing
Use market managers: director of young adult, moms, different cultures
Brand presence: info about consumer behavior developed through market research
Consumer insights- relevant to segments for marketing (consumer profiles)
Mcdonalds business strategies
Consistency- similar experience in each store
Market segmentation such as vegetarian options in India
Risk taking
Brand Presence- tag line, promotion
Innovation-from response and feedback from its customers
Market types
niche vs mass markets
Niche
targets a specific and, well defined market segment
single product/ single market
Mass
Large number of different market segments are targeted for maximum sales
single product/ all markets
Advantages Niche market
Small markets may be able to survive and thrives in markets dominated by larger firms
Higher prices= higher profits
Advantages of mass market
Larger economies of scale
lower average cost of production
run fewer risks than niche markets
can sell at lower prices but to a much larger market
Product positioning
Once a market has been segmented and target markets identified, a business has to position its products
Product position- analyzing how the new brand will relate to other brands in the market
Product positioning map
a graph that analyzes consumer perceptions of a group of competing products in respect 2 characteristics
Unique selling point
a factor that differentiates a product from its competitors such as
lowest cost
highest quality
what do you have that competitors don’t
Marketing research purpose
Identify needs and wants of customers
id opinions of potential and existing customers
give business up to date info abt their industry
improve marketing strategies for their target market
Primary research
original data collected for a specific purpose
Advantages of primary research
provides up-to-date and relevant information
It is confidential
Provides objective analysis
Disadvantages of primary research
can be time consuming and costly
validity may be questioned due to sample size
ex primary research
interviews
surveys
questionnaires
focus groups
Secondary research
data previously collected by researchers for other purposes
Secondary research advantages
Cheaper and faster to analyze than primary
provides insight into trends
large range of sources
secondary research disadvantages
may be out of date
available to competitors
non specific nature may be inappropriate format or only provide partial information
Surveys
directly asking consumers or potential consumers- usually by means of a questionnaire for their opinions and preferences
can provide both qualitative and quantitative data
Interviews
Conducted by an interviewer usually in the street or respondents home
skilled interviewers avoid bias in the way they ask questions
can be explained and follow up
secondary research ex
market intelligence analysis reports such as key not reports
academic journals
govt publicatiopns
local libraries and govt offices
internal company records
trade organizations
media reports and specialist publications
internet
done before primary research
Quantitative
research that leads to numerical results that can be presented
Note 
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