Marketing L2

Marketing is about both...

Marketing is about both strategy and tactics (Analyze the situation, Choose a segmentation strategy and target segment, Determine the positioning of the product, Communicating the position through tactics (4ps)0

The General Environment

Demographic Trends,

Economic Trends,

Natural Trends,

Technological Trends,

Political & Legal Trends,

Cultural & Social Trends

Demographic Trends

Population trends & shifts,

Generational Marketing

Economic Trends

Monitor short & long-term changes (-Macroeconomic factors (Interest Rates & Inflation), -Consumer Income (Gross, Disposable, and Discretionary)

Interest Rates

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets (lower rates to stimulate the economy)

Inflation

Rate at which the general level of prices for goods and services is rising (Affects purchasing power)

Gross income, Disposable Income, Discretionary Income

Gross Income = All earnings,

Disposable Income = All earnings - taxes,

Discretionary Income = All earnings - taxes - living expenses

Natural Trends

-Monitor short and long term trends that impact resource availability,

-Environmental sustainability

Technological Trends

-Smart Home Technology,

-VR,

- On-demand services,

-AI

( Technology has impacted every aspect of marketing seen by new products, new forms of communication, new retail channels (online retailing))

Political & Legal Trends

Things that change in society that are no longer permitted by the government and stuff such as when it comes to cars

Cultural & Social Trends

- Family Structure,

- Changing Attitudes & Values (like LGBTQ+ rights, #metoo movement, religiosity),

- New Social Trends (like health & wellness, privacy concerns, environmental concerns)

What is a Market

A market is defined as the sum total of all the buyers and sellers in the area or region under consideration. The area may be the earth, or countries, regions, states, or cities

Market Share

us/(us + them)

Competition is defined by

the customer

How do you define the Market.Competition?

Product Form Competition (Direct), Product Class/Category Competition, Need-level Competition, Budget Competition

Product form competition

Products or services of the same product type (For example for drip coffee machines it would be other drip coffee machines)

Product Class/Category Competition

Products that have similar features and provide the same basic function (for example for a drip coffee machine it would be other drip coffee machines, percolators, espresso machines, cappuccino makers)

Need-level Competition

-Products and services that the consumer views as fulfilling the same need.

-Notion of substitutability (For example fo drip coffee machines it would be other machines that make beverages (if a drink is the need), coffee shops or energy drinks (if caffeine is the need)

Budget Competition

Products and services that are purchased from the same general budget (usually discretionary) ( for example with 50 dollars one could get a drip coffee machine or pots/pans/knives)

The Marketing Manager's Job

Product form level, Product category level, Generic competition level

Product form level

Marketing activities directly aimed at similar competitors (iphone > Samsung)

Product category level

You must convince customers that the product form is the best (Smartphone > Regular mobile)

Generic Competition level

You must convince customers the product category solution is superior (Smartphone > Other forms of communication)

How to deal with competition

Monitor competitors, Respond to competitors' moves

Market Managers must monitor

Competitors targets, product features, Core strategy, Supporting marketing mix

Things to take into consideration about a competitor

SWOT analysis