Key Concepts in Marketing, Psychology, and Business Strategy

choice overload

too many choices, a decision never gets made, overwhelmed with choice

framing effects

the wording of something is changed

Lewins equation

behavior is a sum of a function of a person and their environment B = f(P, E)

skinners box

rat in the box:

- random scheduled reinforcement

- people are addicted to reward

marketing is everything

everything is marketing

4 P's

product

price

place

promotion

product and sensory values

what delivers value? has to be something we can sense

- 44% of luxury sports car consumers say the sound is the primary factor in brand choice

product

what creates value?

price

never assume people always want the cheapest option

- price is a signal of quality, price is status

place

how you distribute value to customers

- blockbuster: at the time buying movies at the store was cool at the time

now we're all into netflix and buying movies from home and watching them at home is where we currently find value

nothing happens in business until

something is sold

marketing evolution

production, sales, marketing, value based marketing

culture

the way we do things

IRA

individual retirement account

401(k)

retirement savings provided (sometimes matched) by an employer $24,500 maximum annual contribution

traditional retirement account

no tax now, tax later

Roth IRA

tax now, no tax later

529 Plan

education savings account

Rob's Financial Tips

1. maximize 401k or equivalent contribution

2. buy inexpensive, well-diversified funds such as vanguard target 20XX funds

3. get fixed rate mortgage (15 yr)

4. underspend to save

- housing 25% of budget

- car

most people overspend by

- too much house

- too much car

- too much entertainment

deductible

amount you pay before insurance starts to pay

coinsurance

% of costs you pay

copay

fixed amount you pay for service

annual-out-of-pocket premium

after you spent this amount on deductibles, copays, coinsurance, your health plan pays 100% of the costs.

strategy

plan of action or policy designed to achieve a major or overall aim

good strategy

application of strength against weakness

bad strategy

broad goals, broad ambition, broad vision, broad values

marketing strategy

a firms strategy, a related marketing mix, builds sustainable competitive advantage

strategies to develop customer value

locational, operational, customer, product EXCELLENCE

operational excellence

efficient operations, strong relationships with suppliers, excellent supply chain management

product excellence

high perceived value and effective branding and positioning,

top global brands: target, amazon, microsoft, apple, toyota, facebook, IBM, Coke, Mercedes

locational excellence

very important for retailers and service providers

think starbucks

competitive advantage based on locational excellence isnt easily duplicated

mktg plan: planning phase

business mission and objectives

situational analysis (internal strength & weaknesses, external opp. and threats) and SWOT analysis (Strengths, Weaknesses, Opportunities, Threats)

implementation phase

Step 3: identify opportunities (STP) (how to divide a market, choose the most attractive segments, and position a brand correctly)

- Segmentation

- Targeting

- Positioning

STP ^^^^

Step 4: Implement marketing mix! 4 p's!

Product, Price, Place, Promotion

control phase

evaluate performance using marketing metrics

segmantation

there isnt one product that is for everyone

target

pick an audience

von steuben day

ferris buellers day off: third saturday of september

digital marketing

online, social, mobile

The 6M Model of Marcom: Mission

what are the objectives of the communication

STRATEGIC INTENT

The 6M Model of Marcom: Market

to whom is the communcation addressed!

STRATEGIC INTENT

The 6M Model of MARCOM: Message

what is the story communicated

STRATEGIC EXECUTION

The 6M Model of MARCOM:Media

where and how was the story delivered?

STRATEGIC EXECUTION

The 6M Model of MARCOM: Money

how much will be spent?

STRATEGIC IMPACT

The M Model of MARCOM:Measurement

How will the impact be assessed?

Micheal Jordan

"unbannable" message

Bill Bernbach

"ITS NOT WHAT YOU SAY ITS HOW U SAY IT"

Volkwagon guy: Bill Bernbach again

we like things and show loyalty based on how they make us feel~~~ SENSUAL

united states ad spending

majority digital

framework for digital marketing

company to consumers feedback loop

outbound marketing

goal: send a message to the TARGET consumers

- search

- display

- ads

inbound marketing

organic links for a firm rank higher than competing links

driving focus:

- diminished influence of advertising

organic links

an unpaid, natural link that appears on a search engine page because it was seen to be relevant

retargeted ads

you engage in some kind of behavior so it sends ads at you directed toward those things

ex: instagram, facebook, youtube, etc.

awareness, interest, consideration, intent, evaluation, purchase

marketing funnel

ZMOT

the zero moment of truth: reading reviews, researching the product, ratings, search and display

second moment of truth

purchase

first moment of truth

seeing items on the shelf

sentiment analysis

brands go in and observe how you feel about their products

conscious marketing principles

recognition of marketing's greater purpose

- consideration of stakeholders and their interdependence

- the presence of soncious leadership creating a corporate culture

- understanding that decisions are ethically based

NO RIGHT OR WRONG ANSWER

key conscious marketing stakeholders

employees, customers, society, marketplace

triple bottom line

business framework that measures success across people, place, profit

ethics

concepts of right and wrong behavior

metrics and questions to help decide

publicity test, admired observer and moral mentor, can I look at myself in the mirror test

transparency, golden rule

green marketing

environmental sustainability: development and mktg to minimize negative effects on planet

green washing

deceptive practices to promote their fake sustainability

using mktg mix to decide... PRODUCT

material sourcing

usage

disposition

appropriateness

using mktg mix to decide.. DISTRIBUTION

partnerships

environmental concerns

using mktg mix to decide... PRICING

fair versus predatory

using mktg mix to decide... PROMOTION

honest and truthful, partnerships--ethical?

the marketing environment

always starts with customers!

5 c's

customer, company, competitors, corporate partners, culture

the immediate environment

consumers

- company

- competitors

-physical environment

- corporate partners

company capabilities

successful marketing firms focus on satisfying customer needs that match their core competencies

eric migicovsky- pebble watch

made a watch based on bikers, his core competency

competitors

know their strengths , weaknesses, and likely reactions to firms marketing activities

macroenvironmental factors

physical env. = context

- society

- politics

- culture

- etc.

demographics

charactreistics of the human population and segments used to identify consumer markets

income

= purchasing power

marketing opportunities exist across broad ranges of income

not everyone wants the cheapest option

education

highly related to income

gender roles

male and female have been shifting, marketing changes to reflect this change

ethnicity

approximately 80% of all population growth in the next 20 years is expected to come from minority communities

social trends

sustainability, health and wellness, efficient utilization and distribution of food

world food prizez foundation is in DM

diet related products, reducing hunger and food waste

tech advances in every aspect of marketing

new products and services

new communication

new retail channels

- growing importance of mobile devices -

new cutting edge tech, AI, robotics, internet of things (IoT),

PRIVACY. CONCERNS??

Economic situation

affects the way consumers act and spend their money

monitor situation domestically and internationally

MAJOR FACTORS TO MONITOR

- inflation

- foreign currency fluctuation

- interest rates

Politial environment

compromises political parties, gov., organizations, and legislation

FIRMS MUST COMPLY WITH LEGISLATION REGARDING

- FAIR COMPETITION

- CONSUMER PROTECTION

- INDUSTRY SPECIFIC REGULATION

James Vicary

made a machine that could flash an image for 1/1000 of a second. When flashing ads for coca-cola and popcorn at the movie theater, concession sales skyrocketed by up to 600%.

- people freaked out because they believed companies were trying to manipulate consumer behavior, causing the US congress to BAN subliminal advertising`

subliminal advertising

embedded/hidden visual elements/ cues below the threshold of conscious awareness - Banned bc of James Vicary

Marketers that succeed are the ones who respond...

quickly, accurately, and sensitively to customers

thrive and survive

everything the brain does involves helping that person and the people they care about get ahead in life.

unconscious mind

most of the thoughts and feelings that influence behavior occur in the unconscious mind

mind of the market visual

top of the visual, mind of the market with the mind of the consumer, connecting thoughts and feelings

below the line of conscious: connects the unconscious minds of both the consumer and the marketer, through brand storytelling, sensory cues, status cues, and evolutionary drives to "thrive and survive"

psychological factors

motives, attitudes, lifestyle

marketing mix

product, price, place, promotion

social factors

family, groups, culture

situation factors

purchase, sensory, temporal state

SITUATION

Maslow's heirarchy of needs

maslow avtually never said they needed to be in this order, fundamental distribution error.

external influences:

culture, subculture, family, social status