UWEC Marketing 330 - Exam 1

Define marketing

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

What are the Marketing P's?

Place

Price

Promotion

Product

People

Physical Evidence

Process

Place

Activities to make products available to consumers at the right time and in a convenient location

-How do we get things where they need to be

Price

The value placed on something being exchanged

-how do we determine price

-what do consumers have to put into it to get it

Promotion

Activities used to communicate to the target market to

Product

Any good, service, or idea that satisfies a need or want and can be offered in an exchange

- We have something we are trying to sell

People

all human actors who influence the buyer's perceptions by being part of product delivery

-who is going to make it happen

-people are the product in service orgs

Physical Evidence

Tangibles that represent or provide clues about the good or service

-Credit Card

Process

The actual operational flow of product delivery

-what do customers see or not see

-what do they have to go through

Marketing Mix

A managerial derived combination of processes, people, physical Evidence, product, place, promotion, and pricing decisions that are aimed at satisfying the needs of a particular target market

-Making sure the P's are working together to reach desired goals of images

The Marketing Concept

A philosophy stating that an organization should strive to satisfy the needs of consumers through a coordinated set of activities that also allows the organization to achieve its objectives

Exchange

This is the act of trading a product or service for something of value(money)

-Change the product to match different audiences

What drives exchange?

The idea that both parties profit. Each person involved feels like they are getting more then they have to give up

Necessary Conditions for Exchange

At least two parties

Ability to Communicate Offer

Desire to Deal with Other Party

Something of Value

Freedom to Reject or Accept

Customer Value

Ratio of benefits to the sacrifice necessary to obtain those benefits

Value = Benefits + Lose

How successful are marketers able to satisfy AND keep their profitable customers

By providing value and offer some competitive advantage

Differentiation and Competitive Advantage

A Brand's competitive advantage is where it is different from its competitors and superior in some way

Target Market

A group of consumers at whom an organization directs its marketing efforts

- we cannot be everything to everybody

- you must know who your target is

Societal Marketing Concept

Considers the welfare of society as well as the interests of the firm and its customers

Reasons Customers Quit

#1: Bad Employees - 68%

Better product - 14%

Competition - 9%

Strategic Planning

The process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, and marketing strategy

-what is our goal and what are the tactics to achieve these goals

Strategic Market Planning

Revenue Growth

Financial Performance

Strategic Market Position

-Offensive vs Defensive

Market Penetration

Product - Present

Market - Present

Examples: loyalty program, sales, or deals

Product Development

Product - New

Market - Present

Example: Make a new product

Market Development

Product - Present

Market - New

Example: campaign to new Markets

Diversification

Product - New

Market - New

Example: new product, new customers, buy or start a new business

Defensive Strategies

Protect and Hold

Reduce Focus

Harvest

Divest

Reduce Focus

Get into multiple areas and look into what meshes well and what doesn't

Harvest

Slow death spiral

Few competitors

Minor advertising

Cut sales people, keep core people

Divest

Low marketshare

Just sell to competitor or shut down and sell assets

Hard to do, these were people's babies

Get cash and move on

Market Strategies

The means by which a marketing go is to be achieved, usually characterized by a specific target market and a marketing program to reach it

1. Defining the mission/vision

Short and philosophical

Everyone must know it

2. Situation Analysis

Involved taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organizations plans and external factors and trends

SWOT analysis

Strengths ⬅️ Weakness concert/minimize

↕️ strategic window when matching

Opportunity ⬅️ Threat concert/minimize

Competitive Advantages

The place where opportunities, core competencies, and strategic windows meet

Marketing Objectives must be:

Realistic

Measurable

Time Specific

Consistent w/Organizations Priorities

3. Identifying and Evaluating Opportunities

Segmenting

Targeting

Position

Market Segmentation

Involves aggregating prospective buyers into groups(segments) that have common needs and will respond similarly to marketing action

Targeting

Process of evaluating each market segments attractiveness x selecting kind of mods segments to enter

Marketing Positioning

The arranging for a product to occupy a clear, distinctive, and desirable place realities to competing products in the minds of the target consumer

SBU

Strategic Business Unit

Is a subsidiary or division that markets a set of related offerings to a clearly defined group of customers

Star

Fast growing market leaders with substantial profits, but have a high cost to maintain their position over time. These are MAJOR players

Strategies:

Protect existing shares and reinvest earnings in the form of price reductions, product improvements.

Work to obtain a large share of new users

Cash Cow 🐄

These have profitable products and generate more cash then is needed to maintain their marketshare due to slow growth and less competition

Extra money from cash cows goes to fund stars

Market Strategies:

Maintain market dominance, invest in process improvements, maintain price leadership

Problem Child

These have rapid growth with poor profit margins and an enormous demand for cash

Market Strategies:

Invest heavily to get a disproportionate share of new sales.

Focus on a definable niche where definable dominance can be achieved

Divest or Harvest (see Dogs)

Dog 🐕

Greatest number of products fall in this category. These operate at a cost disadvantage and have few opportunities for growth at a reasonable cost.

Market is not growing therefore there is little new business

Market Strategies: defensive tactics

Focus on a specialized segment of the market that can be dominated

Harvest: Cut support costs back to a minimum level for remainder of life

Divestment: sale or liquidation

Portfolio Matrix

⭐️ 👶

🐄 🐶

Circle Size:

SBU's position

Marketing Tactics

These are detailed day-to-day operational decisions essential to the overall success of marketing strategies

Implement Marketing Mix and Resources

Marketing Mix Utilization

Evaluate Performance

1. Establishment of Performance Standards

- is our method working

2. Evaluation of actual performance relative to established standards

- better than we thought or nothing at all

3. Corrective Action if necessary

Repeat

Marketing Dashboard

What is the visual display of the essential information related to achieving a marketing objective

The Marketing Plan

A written document that acts as a guidebook of marketing activities for the marketing manager

Market Segmentation must be:

Identifiable/Measurable

Accessible

Substantial

Responsive

Identifiable/Measurable

Clearly distinguishable between groups

Accessible

Are they able to get the product/service

Ex: alcohol and teens

Substantial

Do they make up a portion of the market that is worth it

Responsive

Are they willing and able to purchase product

Geographic Segmentation

The process of dividing the market on the basis of location or other geographical criteria such as climate or population density

Demographics

The process of dividing the market on the basis of population characteristics

Geodemography

A segmentation technique that combines geography with demographics/socioeconomic criteria

Psychographics

Buyers are divided on the basis of lifestyle and/or personality

Life-style refers to how people live, how they spend their money, and how they allocate their time

Behavioral Segmentation

Divided based on their knowledge of, attitude toward, us of, or response to a product

Usage

Application

Benefits

Occasions

Usage

Heavy/Average/Light/Non-user

You cannot convert people to your product

Applications

How can it be used

Benefits

Outcomes you want

Occasions

Special events can create an entire segment

-weddings

-Birthday/birth of children

-graduation

Organizational Markets

Geographic location

Size of customer

Type of organization

Product Use

Target Marketing

The evaluation of the attractiveness of the segments and selecting ones the firm will serve

Undifferentiated/Mass Market Approach

Single Marketing Mix ——> Target Mix

Differentiated/Multi-Segment Approach

Mktg Mix 1 ——> Target Segment 1

Mktg Mix 2 ——> Target Segment 2

Mktg Mix 3 ——> Target Segment 3

Concentration/Niche Approach

Single Target Segment 1

Marketing ——> Target Segment 2

Mix Target Segment 3

Mass Customization

Single Marketing Mix —> single person

Positioning Strategies

1. Determine consumers' perceptions and evaluations of the product or service in relation to competitors'

2. ID competitors' positions

3. Determine consumers preferences

4. Select the position

5. Monitor the positioning strategy

Positioning Maps

show consumer perceptions of their brands versus competing products on important buying dimensions

Product Positioning

Involves changing the place an offering occupies in consumers' minds relative to competitive products

Market Research

The systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities

Research Process

Problem Definition

Research Design

Data Collection

Data Analysis & Interpretation

Reporting Findings

Research Design

An overall plan for obtaining the information needed to address a research problem or issue

Exploratory Research

Descriptive Research

Casual Research

Exploratory Research

- Research conducted to gather more information about a problem or to make a tentative hypothesis more specific

- To better understand a problem or situation and/or help identify additional data needs or decision alternatives

Descriptive Research

Research conducted to clarify the characteristics of certain phenomena to solve a particular problem

- demands prior knowledge

- assumes problem is clearly defined

Casual Research

Research the allows marketers to make casual interference about relationships

- Provides cause-effect Evidence

- need a dependent variable and interdependent variables in order to set up research projects

Internal Data

Collections of consumer and market information obtained from data sources within the company network

Competitive Marketing Intelligence

Is the systematic collection and analysis of publicly available information about consumers, competitors and developments in the marketplace

Primary Data

Information collected for the first time. Used for solving the particular problem under investigation

Secondary Data

Advantages: cost, speed, could not get data otherwise

Disadvantages: Current, relevant, accuracy, impartial

Focus Group Interviews

Free Flowing interview with a small group of people

Advantages:

Speed, snowballing, synergism, security, structure, scientific scrutiny

Disadvantages: misuse, misjudge, moderation, messy

In-Depth Interview

A direct, personal interview in which a single responded is probed by a highly skilled interviewer to uncover, underlying motivations, beliefs, attitudes, and feelings on a topic

Observation

Involves gathering primary data by observing relevant people, actions, and situations

Ethnographic Research

Sending trained observers to watch and interact with consumers in their natural environment

Mechanical Observation

Use of mechanical devices to gather data and information

Physiological Tests

Galvanic Skin Response

- useful in measuring effectiveness

- sensitive to affective stimulation

Pupil Dilation

- Dilation associated with interest and action

- Constriction indicated disinterest

Eye Tracker

-Tracks eyes movements to determine what readers read on print ads or focus on TV commercials

Causal Methods

Experimental research is best for gathering causal information

- Cause and Effect

Descriptive Methods

Survey Research

- the most popular technique for gathering primary data

- researcher interacts with people to obtain facts

Survey Types

Personal Interviews

Fax/Mail Surveys

Phone Surveys

Email/Interview Survey

Phone Interview

Advantages:

High participation

Props and visual aids

Completeness

Length

Complexity

Feedback

Disadvantages:

Lack of anonymity

Interviewer Characteristics

Differential Techniques

Cheating

Cost

Phone Interview

Advantages:

Speed, Cost, Co-Operations, Call Backs, Central Location Interviewing

Computer Assisted Interviews

Disadvantages:

Absence of face to face

Representative samples

Limited durations of interview

Lack of Visual Medium

Mail/Fax

Advantages:

Cheap Cost, respondent convenience, anonymity of respondent, standardized questions

Disadvantages:

Standardized Questions

Time is Money

Response Rates

Online Research

Advantages: low cost, speed, higher response rates, good for hard to reach groups

Disadvantages: restricted internet access, not sure who is answering

Sampling Procedure

Limited number of units systematically chosen from all members of the population