Marketing

Marketing is all about lying

Marketing is all about lying

Wrong

• consumers not naive

• consumers will realise that the product is deceptive and will punish companies on social media

• deceptive advertising is prohibited !

Marketing = sales

Wrong

• marketing and sales are distinct function units in the organization

• marketing comes before sales

Tell me the evolution of marketing

• production concept : large production low price when demand > supply

• product concept : buy when good quality

• selling concept : buy when enough selling efforts

• marketing concept : customers satisfaction key, sell what consumers want and desire

Explain to me the selling concept

• starting point : factory

• focus : existing products

• means : selling and promoting

• ends : profits trough sales volume

Explain to me the marketing concept

• starting point : market

• focus : customer needs

• means : integrated marketing

• ends : profits trough customer satisfaction

Marketing is used by companies to sell products to consumers

Wrong

• marketing can be used by many different organizations : NGO’s, political parties, individuals, events

• no just to sell also for exemple get votes for political party

• marketing not always directed to consumers Ex.: public service announcment

What is marketed ?

• goods

• services

• events

• experiences

• persons

• places

• propreties

• organizations

• ideas

What is marketing?

Marketing is all about common sense

• built on academic research in psychology, sociology, economics and neuroscience, as well as real business practices

• creating, communicating, delivering and exchanging offerings that have value for customers

• creating and exchanging products that are needed and wanted by consumers

What is marketing management?

• superior customer value

• before product oriented → sales before marketing => push product

• now customers oriented → analyze customer needs and create satisfaction, loyalty

What is marketing? 3P

creating value : 3P

• people

• planet

• profit → prosperity

What are the core marketing concepts?

• understanding consumer behaviour

• strategic marketing

• operational marketing

what is a need?

the basic human requirements such as air, food, water, clothing and shelter

what is a want?

specific objects that might staisfy a need

what is a demand?

wants for specific products backed by an ability to pay

what is the marketing process in an organization?

1. opportunity

2. segmentation and targeting

3. marketing mix

4. implementation and control

what are the major market forces?

• technology

• globalization

• physical environment

• social responsability

What are the new consumer capabilities?

• can search, communicate and purchase on the move

• can use internet as a powerful information and purchasing aid

• cant tap into social media to share opinions and express loyalty

• can actively interact

  • can reject marketing they find inappropriate (Adblock)

What are the new companies capabilities?

• can use the internet as a powerful information and sales channel, including for individually differentiated goods

• can collect fuller and richer information about markets, customers, prospects and competitors

• can reach customers quickly and efficiently via social media and mobile marketing, sending targeted ads, coupons, and information

What are the new competitive environment?

• retail transformation (Amazon, multiverse etc)

• heightened competition

What are the new marketing realities?

• from exclusive (only Western world/culture) → to inclusive (others)

• science & data based

• hiring, training and motivating employees to serve consumers well

What is environmental scanning?

refers to possession and utilization of information about occasions, paterns and relationships within a company’s internal and external environment

What is the purpose of environmental scanning?

• identify trends

• identify opportunities/threats

• evaluate the company’s strenghts/weaknesses

What is the macro environment?

consists of a number of brad forces that affect not only the company, but also the other actors in the micro environment

Does companies have control on the macro environment?

NO !!!!

What is a fad?

unpredictable, short-lived and without social, economic and political significance

What is a trend?

more predicticable and durable than a fad; trends reveal the shape of the future and can provide strategic direction

What is the PESTEL analysis?

• political

• economical (income distribution)

• social (demographic and cultural)

• technological

• environmental (corporate environmentalism)

• legal

What is the micro environment?

consists of actors in the firm’s immediate environment or business system that affect its capabilities to operate effectively in the chosen markets

HAVE CONTROL !!

What is the market (demand)?

refers to the group of consumers or organizations that is interested in the product, has the ressources to purchase the product, and is permitted by law and other regulations to acquire the product

How do you estimate futur demand?

• composite of sales force opinions

• expert opinion

• past-sales analysis

• survey of buyers’ intentions

What is consumer behavior?

the study of how individuals, groups and organizations select, buy, use, and dispose of goods, services, ideas or experiences to satisfy their need and wants

What influences consumer behavior?

• cultural

• social

• personal factors

What is hedonic?

= feelings involved

VS rational

not depend on product category

What determines age and life-cycle?

determines what consumer buys at each stage of life

What is personality?

set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environment stimuli

When a need becomes a motive?

whent it is aroused to a sufficient level of intensity to drive us to act

What is motivational strenght?

the degree to which a person is willing to expend energy to reach one goal as opposed to another reflects their underlying motivation to attain that goal

what is motivational direction?

they are goal oriented in that they drive us to satisfy specific needs

What are motivational conflicts?

• positively valued goals

  • consumers are motivated to approach the goal and will seek out products that will be instrumental in attaining it

• avoiding negative goals

  • consumers are motivated to avoid a negative outcome structuring their purchases or consumption activities

What is Freud’s theory?

behavior is guided by subconscious motivations

What is Maslow’s Hierarchy of needs?

behavior is driven by lowest, unmet need

1. psychological needs

2. safety needs

3. social needs

4. esteem needs

5. self-actualization needs

What is Herzberg’s two-factor theory?

behavior is guider by dissatisfiers and satisfiers

What is consumer product involvement?

the consumer’s level of interest in making a particular purchase, which can range from inertia t very high involvment

What is message-response involvement?

the consumer’s interest in processing marketing communications

What is perception?

the process by which we select, organize and interpret information inputs to create a meaningful picture of the world

What is a perceptual map?

tool which evaluates the relative standing of competing brands along relevant dimensions (scensory receptors)

What is selective attention?

the inclination for consumers to pay attention to messages that connect with their needs, beliefs, interests, and values

What is selective distortion?

how consumers interpret brand messaging in a way that fits with their preconceptions of that brand

what is selective retention?

how customers remember brand messaging based on their previously established needs, beliefs, interests, and values

what is sensory marketing?

stimulating 5 senses

• seeing

• hearing

• touching

• smelling

• tasting

How adding emotions to advertising helps?

more

• perception

• attention

• shares on social media

what is experiential marketing?

samples

what are nostalgic brands?

used by consumers to retreive memories about past experiences and are often valued for their ability to do this

ex.: nutella, la laitière etc

What are the stages of the buying decision process?

• problem recognition

  • the buyer recognizes a problem/need triggered by internal/external stimuli

• information search

  • internal/external

  • deliberate/accidental

  • pre-purchase / ongoing

• evaluation of alternatives

• purchase decision

• post-purchase behavior

what are beliefs?

descriptive thought that a consumer holds about something

what are attitudes?

person’s enduring favourable or unfavourable evaluations, emotional feelings and action tendencies toward some object or idea

What are the 3 types of attitude?

• conative : will to act

• emotional : feelings

• cognitive : knowledge

What are the bundle of attributes?

• core product

• actual product : packaging, style, desing, brand name

• augmented product : after-sale service, warranty, installation, delivery&credit

What is a product?

anything that can be offered to a market to satisfy a want or need

• <del>owning</del> ==> solution to a specific need

what is greenwashing?

exagerate “green” features and communicate on sustainability but they are not

ex.: TUI flights

what is packaging?

all the activities of designing and producing the container for a product

used as a marketing tool

• self-service

• consumer affluence

• company and brand image

• innovation opportunity

what is a planogram?

plan made by retailers in collaboration with brands to make sure that everything is at the right spot

• best product below because people would make the effort to grab them

• eye level to promote products

what are the objectives of packaging?

• identify the brand

• convey descriptive and persuasive information

• facilitate product transportation and protection

• assist at-home storage

• aid product consumption

what is the customer journey?

• pre purchase

• during purchase

• post purchase

what is adoption?

an indivdual’s decision to become a regular user of a product

• awareness

• interest

• evaluation

• trial

• adoption

what are the factors that influence the adoption process?

• readiness to try new products

• personal influence

what defines market attractiveness?

• merket forces

• competitive intensity

• market accessibility

what is the product lifecycle model? (market forces)

• introduction

• growth

• maturity

• decline

explain the introduction stage of the product lifecycle model

• pioneering advantages

  • recall of brand name

  • establishes product class attributes

  • recrutes more consumers

• pioneering drawbacks

  • imitators can surpass innovators

  • once leadership is lost, it’s rarely regained

explain the growth stage of the product lifecycle model

to sustain rapid market share growth

• improve product quality/ add new features

• new models/flanker products

• new market segments

• increase distribution coverage and new distribution channels

• shift from awareness and trial communication to preference and loyalty communication

• lower prices to attract price-sensitive buyers

explain to me the maturity stage of the lifecycle product model

• market modification

• product modification

• market program modification

explain to me the decline stage of the product lifecycle model

• eliminating weak products

• harvesting and divesting

How can we measure competitive intensity?

Porter’s 5 forces

• competitive rivalry

• threat of new entry

• byer power

• threat of substiution

• supplier power

Give me the caracteristics of perfect competition

number of firms : very large

type of product : standardized

control over price : none

entry conditions : no barriers

Give me the caracteristics of monopolistic competition

number of firms : many

type of product : diffenrentiated

control over price : slight

entry conditions : no barriers

Give me the caracteristics of oligopoly

number of firms : few

type of product : standardized or diffenrentiated

control over price : considerable

entry conditions : large barriers

Give me the caracteristics of monopoly

number of firms : one

type of product : unique

control over price : considerable if not regulated

entry conditions : large barriers

what are the different types of competitors?

• direct competition

• indirect competition

• generic competition

what are the Porter’s generic strategies?

• overall cost leadership

  • shein, primark

• differentiation

  • nike, addidas

• focus

  • chanel, clothes for dissabled people

What are the targeting strategies?

• undifferentiated : baton mars

• partial undifferentiated : alcool

• differentiated : volksvagen

• partial differentiated : BMW

• concentrated : david loyd

What is positioning?

• reason for being / value proposition

• benefits that differentiate brands

What are points-of-difference? PODs

attributes/benefits that consumers strongly associate with a brand, positively evaluate and believe they could not find to the same extent with a competitive brand

What are the PODs criteria?

• desirable

• deliverable

• differentiating

What are points-of-parity? POPs

attribute/benefit associations that are not necessarily unique to the brand but may in fact be shared with other brands

What are POPs criteria?

• category

• correlational

• competitive

what are the growth strategies?

• diversification growth

• integrative growth

• intensive growth

what is intensive growth?

corporate management should first review opportunities for improving existing businesses

• market penetration strategy

• market development strategy : geographic / new segmentation

• product development strategy

• diversification strategy : new product but close to your existing product

what is integrative growth?

business can increase sales and profits through backward, forward or horizontal integration within its industry

what is diversification growth?

makes sense when good opportunities exist outside the present business

what is branding?

the process of endowing products and services with the power of a brand

what is a brand?

is a name, term, sign, design, symbol to identify the goods or services

what is the brands’ role for consumers?

• set nd fulfill expectations

• simplify decison making

• take on personal meaning

what is the brands’ role for firms?

• secure competitive advantage

• create brand loyalty

• practicality

what are the types of brand name?

• “name” brand : IKEA, Google (mot)

• “figurative” brand : nike, apple (image)

• “semi-figurative” or “combined” brand : lacoste, bacardi (mot + image)

what are the caracteristic of a brand value proposition?

• emotional value

  • the utility derived from the feelings or affective states that a product generates

• social value

  • the utility derived frome the product’s ability to enhance social self-concept

• functional value (price/value for money)

  • the utility derived from the product due to the reduction of its perceived short term and loger term costs

• functional value (performance/quality)

  • the utility derived from the perceived quality and expected performance of the product

what is brand identity?

the set of messages sent by a unique brand

what is the brand identity prism

• physique

• personality

• relationship

• culture

• reflection

• self-image

what is brand image?

the set of mental representations, both affective and cognitive, that an individual or a group of individuals associates with a company or a brand (= message received)

what is the difference between reflection and brand image

reflection : how people/consumers are supposed to be seen

brand image : how the message is perceived/ how they are effectively seen

what is brand equity?

• added value

• strenght of a brand