ICORE Marketing

Marketing

An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders

Marketing... (5 things)

-benefits various stakeholders

-is about satisfying customer needs and wants

-entails an exchange (global)

-creates value through four P's

-can be performed by individuals and organizations (entrepreneurial)

Value

the ratio of what is given up for what is obtained

What constitutes an exchange?

both parties must believe they are getting value during the exchange

How is value created?

through the marketing mix

Marketing Mix

Product, Price, Place, Promotion

Product

creating value that satisfies customer needs

Price

-capturing value

-everything a buyer gives up in exchange for product

-must be amount they are willing to pay and which given profit

Place

-delivering value

-supply chain management

-all activities needed to get product to customer when they want it

Promotions

-communicating value

-communication that informs, persuades, or reminds buyers

-to influence opinions/ responses

Timeline of Marketing

production, sales, marketing, value-based marketing, tech-augmented marketing

How do you create value?

-build relationships with customers

-gather + analyze information

-balance benefits + costs

-connect customers on social + mobile media

Where does value stem from?

-adding value

-social + mobile marketing

-marketing analytics

-ethical + societal dilemma

Marketing Strategy includes...

-target markets

-marketing mix

-provides sustainable competitive advantage

-developed through marketing planning

Macro strategies for delivering value

-customer excellence (rewards)

-operational excellence (efficiency)

-product excellence

-location excellence

What do macro strategies for delivering value allow for?

sustained competitive advantage

Phases of Marketing Plan

1) Planning

- business mission + objectives

-SWOT

2) Implementation

- identify opportunities/ target markets (segmentation, targeting, positioning)

- implement marketing mix (4 P's)

-marketing strategy

3) Control

-evalue performance

SWOT

internal strengths, internal weaknesses, external opportunities, external threats

How to identify and evaluate opportunities?

-segmentation (identifying distinct groups)

-targeting (selecting certain groups)

-positioning (making strategy to differentiate and align product with group)

Marketing Metrics

used to explain why things happen and project future

Portfolio Analysis

method to classify current business units/products and helps determine how to allocate resources

Boston Consulting Group Growth Matrix

-star (invest and grow)

-cash cow (maintain and milk)

-question mark (watch and hold)

-dog (drop/ consolidate)

Growth Strategies for Markets and Products

Conscious Marketing

-recognition of marketing's greater purpose

-consideration of stakeholders and their interdependence

-presence of conscious leadership, creating a corporate culture

-understanding that decisions are ethically based

-creating positive social and environmental impact

Corporate Social Responsibility

-economic, social, environmental impacts

-triple bottom line

How does CSR differ from conscious marketing?

CSR is baseline, conscious marketing goes one step further with higher purpose of businesses

Stakeholders of Conscious Marketing

employees, customers, marketplace (competitors), society

Marketing Ethics

-important part of conscious marketing

-implementation of programs that are socially responsible and employees are ethical

Ethics vs Social Responsibility in Marketing

-ethical and socially responsible is conscious marketing

Framework for ethical decision making

Marketing Environment

uncontrollable elements outside of any organization that may affects its performance

Environmental Scanning

systematic analysis of marketing environment

What is at the center of the environment?

consumers

Immediate Environment

company, competition, corporate partners, physical environment

Macroenvironment

culture, demographics, social, technology, economic, political/legal

Culture

-shared meanings, beliefs, morals, values, and customs of a group of people transmitted by words, literature, and institutions

-influences consumer behavior

Hofstede's Cultural Dimensions

power distance, individualism, masculinity, uncertainty avoidance, time orientation, indulgence

Demographics

-the characteristics of a population with respect to age, race, and gender

-used to identify consumer markets

Generational Cohorts

gen alpha, gen z, gen y, gen x, baby boomers

What is purchasing power related to?

education > income > spending power

How do companies respond to the environment?

-implement strategies that respond to multiple forces

-to succeed have to respond quickly, accurately, and sensitively

Types of involvement in the purchasing decisons

high and low involvement

Low Involvement Decisions

-low cost, standardized, low risk

-routine purchases

-in store promotion, linked to high involvement issue

High Involvement Decisions

-important, risky, more effort + expensive

-substantial differences between alternatives

Consumer Decision Process

need recognition, information search, alternative evaluation, purchase, post purchase

Need Recognition

-influenced by internal and external stimuli

-present state vs preferred state

Search for Information

-internal search (what you know)

-external search (getting info from others)

Factors Impacting Search Process

-perceived costs and benefits

-locus of control (internal: more search activities because you control outcome) (external: fate and external factors control outcome)

Perceived Risks

-performance: how the product performs

-financial: monetary risk

-social: how your status will be impacted

-physiological: safety/health risks

-psychological: is the purchase morally right

Sets considered when consumer is evaluating alternatives

-universal: everything that possibly exists

-retrieval: what consumer can actually think of to buy

-evoked: what consumer would actually consider buying

Components of Post-Purchase Outcomes

-customer satisfaction

-post purchase cognitive dissonance (when beliefs contradict actions)

-customer loyalty (customer relationship management)

Factors that affect the consumer decision process

marketing mix, psychological factors, social factors, situational factors

Psychological factors that impact consumer decision process

motives, attitudes, perceptions, learning and memory, lifestyle

Motives of Psychological Factors

physiological, safety, love, esteem, self-actualization

Attitudes of Psychological Factors

-cognitive: thinking

-affective: feeling

-behavioral: doing

Types of Reference Groups

-membership: group you belong to

-aspirational: group you want to belong to

-dissociative: group you want to avoid

Situational Factors

-purchase situation: reason for purchase

-sensory situation: physical surroundings

-temporal state: time of day related constraints

Segmentation Methods

-geographic: where you live

-demographic: most common, age, gender, income

-physiographic: lifestyle, self-concept, self-values

-benefits: convenience, economy, prestige

-behavioral: occasion, loyalty