103: final prep

Chapter 9:Read chapter


Market segmentation


Why do we segment and should we segment:

  • Cost effective

  • Marketers don't want to waste their resources and money and are bringing in profit

  • When we segment the market we have to ensure the individuals have a similarity between each other

  • Ability to meet the consumers needs and get the product to them


Segmentation strategies:

  • Exact same product but you are selling to a different segment; these segments are all different

  • Harry potter books: for children, teenagers, adults: three completely segments that enjoy one product

  • A company creates a separate product because of the different segments in order to meet the needs of the consumer

  • Segments of one: a product is created for an individual

    • Is extremely customized

    • It doesn't happen often

  • A brand releases a product and target an audience and release another product of a different market

    • Cannibalize own sales: when the first market is buying the second product that was released




Segmentation variables:

  • Geographic is not only which coast you live in

    • Can get a family member same-day delivery for medication if they live in phoenix compared to a member who lives in south dakota which wouldnt be possible

  • Psychographic variables

    • Do they only buy items on sale, when theyre on sale, with coupons


Commonly used variables for segmentation:

  • Harvard placing their magazine on the whole foods lane

    • Higher educational customer


Age

  • What age marketers must appeal to



Psychographic segmentation:

  • Selling a toyota prius

    • Someone who actually needs a car

    • Someone who cares about the environment 

    • What their values and hobbies are, what their interests are



Behavioral segmentation:

  • Individuals who live in san diego and fly every week to dallas



Segmentation: disposable diapers

  • Pampers: target first-time parents

    • Very successful

    • Partnering with hospitals


Evaluate market segments:

  • Carefully analyze segments

  • Segmentation: taking a big group of people, using variables and breaking it up into smaller segments and decide which ones you want to target

The target market process:



Positioning:

  • Is it compelling in a way that it matters to the consumer


Head to head strategy

  • Competing on the same characteristics

  • Trader joes:

    • Healthier option?

    • They dont carry other outside brands

    • Employee-customer interactions 

    • Don’t have any sales


Shifting a position

  • Targets children

  • Shifts to athletes for post-workouts; protein shakes

    • Adult market


Chapter 12: Services


  • Financia/l services: staying at a hotel, going to disneyland, taking a flight

  • Some are pure services some are pure goods, some are both or in between

  • Every service has intangibility and inseparability

  • Inventory is related to the hotel stay

  • A concert, a seat must be sold that day

  • Are impacted by other customers

  • How to overcome when there's no inventory…change the price

  • Sell concerts for half the price 



  • Describing different types of attributes 

  • Experience attributes: cant figure out ahead of time

    • Can only objectively identify if it was good or not after trying it

  • Credence attributes

    • Difficult to say if something is good


Search, experience and credence attributes:

  • Service providers need to work on establishing trust with their clients 






Thursday 1/30


Chapter 10: New Products 


Products and the value proposition:



Durable goods:

  • Furniture


Non-durable:

  • Food / drinks

  • Gasoline 


Product classification:

  • The shopping products wont be as convenient as the specialty products

  • Unsought products: products we need but dont often think about them as a need

    • Life insurance

    • Fire extinguisher


Product items, lines, mixes:

  • Items: individuality

    • Ipad 

  • Line: similar products that are offered by a brand or company

    • All types of ipads available 

  • Mix: all product lines a company has

    • Ipad, iphone, airpods, macbooks


Innovation:

  • An association of tech within innovation but it doesnt have to be high tech to be innovative

  • Understand three types of innovation

    • Continuous: how much consumer learning is needed - no learning has to happen

      • Cheeseitz 

      • Gain consumer awareness by advising bigger cheeseitz

    • Dynamically continuous:

      • Electrical toothbrushes

        • Different manual compared to traditional toothbrush

    • Discontinuous innovation

      • Discontinuous from what was previously available to the consumer

  • Personal selling

    • Customer engages with customer


  • Product failures:

    • What causes it:

      • A red sea of competition

      • Mismatches with the consumer

        • Wrong target market

        • No figuring out the consumer’s needs

        • No need to create or change product if you are the market leader


Chapter 11: Managing Products and Brands


Product Life Cycle:


  • Maturity stage may last for 100 years, more or less


  • Maintain maturity stage by maintaining loyal to your company and product


The goals of promotions:

  • The goal of making a sale is not always the goals

  • Majority of the time is making awareness

  • Intriguing people and gaining interest in the product



Brand

  • Consists of plenty of brand elements

  • An emotional connection with customers

  • Name, logo, colors


Elements:

  • Higher quality=higher equity



Why brands matter:

  • Equity: the loyalty of a consumer choosing tylenol over cvs brand


Brand hierarchy:

  • Individual: multibranding

    • Multiple products

  • Umbrella: multiproduct branding

    • Multiple products under the same brand

  • Brands are created to serve a certain market


Packaging:

  • Package wont impact the product but it influences if the individual will buy it or not

  • Its appealing to the eye and slow opening boxes demonstrate quality and value




W5: Tuesday 2/4:



Cultural impact:

  • Large group of people

    • Culture you belong to

    • Ethnicity

    • Geographic region

    • Major

    • Not family or friends


Social

  • One-on-one

  • Family members

  • Social influence

  • A friend


Brand name; model


Economic impact:

  • Chapter 5


Psychological 

  • Contextual effects can impact you psychologically


  • Wider target market

  • “The customers love to be overwhelmed” - they don’t

  • Paradise of choice

    • People think they want plenty of options but at the time of action, they are overwhelmed, cant choose, walk away

      • They overthink, less satisfy with what they walk away with



Presentation:

  • The product

  • When you purchased it

  • And why: include the 4’s


Hello, my name is jazmine valles and i will be sharing with you a purchase i made recently. a month ago i purchased the iphone 16pro


Apple iphone 16pro in shade black titanium 



Economic: 

  • I raded my phone in and i saved 370 dollarsI decided to pay the phone in full since i had money saved up, it was somewhat pricey since i didn't trade in my old iphone

  • I already knew what to expect from apple so the price range didnt come to a surprise

  • Due to its high demand i didn't purchase the iphone during its release because of high demand but i did purchase it in january 

Social: 

I was socially influenced because almost everyone around me owns an iphone so i've always felt the peer pressure into owning an iphone. On the bright side i really enjoy the aesthetics and efficiency of the phone and its technology

  • My sister who is up to date with apple products and who previously worked  also made me aware of the apple intelligence and new camera feature which i automatically new i would make a good use of it 


Cultural:  

  • My friends and family

  • I am the memory keeper of the family and i care about having great camera quality to capture meaningful moments with the people i love and it came with great features such as removing undesired background objects

  • Running out of storage; limited space



Psychological: 

  • It will make me feel better after not having such a great christmas break and i rewarded myself with it  

  • I did face the difficulty of choosing what color i wanted to buy 

  • I am a tech enthusiast so i always look forward to new features by apple products 

  • aesthetics and efficiency of the phone and its technology

  • Distinct taiwanese government

  • 1977 almost al authors disappeared from tv

  • One hour of tv with a dialect besides mandarin


W6: Tuesday 2/11


Chapter 13: Building Price Foundation



Importance of Price to Marketers:

  • Profit: revenue - total costs

  • Price holds psychological impact on customers

    • One way it impacts: if its low price we think its not good quality compared to higher price = higher quality

    • We may think differently about ourselves

  • Price being momentary

  • Understanding demand

    • How can demand change without changing the price?

  • Elastic and inelastic demand:

    • Quantity demanded

    • inelastic demand movies; if you move price from p1 to p2 on price demand, it decreases

    • Elastic: higher change

  • General rules: of there is more substitute product its elastic

  • Air travel: elastic; may drive to destination instead

    • Business travel during covid: inelastic


Break even:

  • Where is the money that is coming in crossing the money that is coming out 

  • Green line is revenue

  • Purple line are total costs

  • Dashed line: fixed costs; dont change based on what youre selling

  • Fixed costs: fixed in relation to production or how much theyre selling; they dont change as a function of what the sales are that month

    • Salary of employees

  • Variable costs

    • How much is being produced, how much is being sold

    • Ingredients at a bakery


Break even analysis: 

  • How many of a product do i have to sell in order to be at break even and not operate at a loss

  • 1.1;1.8 ; always rounds up to the next number so either 1 or 2

  • You dont break even until you sell the whole item

  • Contribution margin; how you calculate it

    • Total revenue - total variable costs

  • Contribution unit margin

    • Price - variable costs


Assessing price vs value

  • Take into consideration

    • All costs are covered

    • Competing products

    • Consumer 

  • Ex: tutors

    • Estimate the costs based on what sd location theyre tutoring in 


Pricing strategies:

  • Utilize all three pricing strategies


Demand based pricing

  • The more demand for your product, the higher the price

  • Less demand, less price


What you want to achieve can help determine set price


  • Objects that target different things

    • Focus on customer satisfaction

    • Focused on the way customers perceive the product


  • Cost plus

    • What i want to have over my costs 

  • Demand : captive pricing

    • For product to work well, you need to pair it with a different thing

  • Competitive pricing: predatory

    • Not good; illegal

    • Decreasing the price for an item knowing competitor cant decrease their price

    • Intent is to drag the competitor out of business

  • Dynamic pricing

    • Price is changing

    • Can change with time

  • Bringing a new product to the market

    • Skimming: pricing your product high initially and through time groping it; skimming off the people who are willing to purchase your product; getting a narrow piece of the pie initially

    • Penetration: pricing low; charging high to get a bigger piece of the pie


Psychological pricing:

  • Impact that a price that ends in .00 or ends in .99

    • With a piece of art you dont want the customer to think what a bargain

    • The .00 will demonstrate higher quality


Price Lining

  • Loss, leader, pricing

  • Anchor and adjust downward



Endowment effect:

  • What type of pricing 

  • Results in willing to pay a higher price 


Difference between skimming and penetration: 


Loss-leader and predatory


Loss-leader pricing:

  • Costco hasn't changed their rotisserie chicken prices in forever, they remain being $4, they don’t care about that loss since it attracts other customers to purchase other items

Thursday 2/13


Chapter 15: Managing Distribution


Marketing perspectives: 


Place:

  • How do we get the product from us to the consumer

    • Retailing


Distribution channels:

  • Intermediaries: distributor and retailer

  • Pros and cons

  • Direct channel: company to customer

  • Even if there using a wholesaler and the customer it is indirect

  • Farmer channel

    • Grow apples, set up stand and sell to customers (direct)

    • Farmers markets are not formerly direct

    • As a farmer you want to sell to wholesaler who then they will sell to different retailers such as a variety of grocery stores 

  • Indirect: when someone else in involved between the farmer and the consumer 

  • Hybrid channel:

    • Direct and indirect: can shop both online and at the store

      • Apple: offer their own products at their own store while also finding them at other retail stores such as best buy and target

  • Direct: direct communication; no communication; access to customers; any complaints 

    • Disadvantages: 

      • Access to limited customers than if the retailers where to be target

  • Indirect: wide reach is the trade-off

    • No direct communication

    • You don't know how your product will look like to the customer when they approach it at a retail store

    • Loss of control over environment and brand associations


  • Intermediaries

    • Creating the product but not as good as contacting the customer

    • Match supply from manufacturer to demand from consumers

  • Value chains

    • Change from the creation of the product to the customer and each step increases the value of the product

    • How can we efficiently get the product while it's still in great shape to a place where a customer can buy it

    • In a setting that is consistent with the brand’s image

    • The brands right to ok how their product is distributed

    • If your values align with mine, i want a contract with you whereas there is another retailer whose values dont align with yours

    • The brands determine how their product is being distributed because they want to demonstrate the value

  • Forward vertical integration

    • Manufacturer and retailer and then consumer (forward)

    • Start manufacturing and distribute through retailers and do the retailer yourself; take control towards that step with the consumer

    • Owning manufacturers and own retail shops

      • Manufacturer owns a retailer shop


  • Backwards

    • Consumer and retailer and manufacturer

    • Retailer serving the consumer

    • Retailer owning a manufacturer

    • Netflix: producing their own movies 

    • Tiffany and co

  • Target market coverage decisions

    • Each coverage maps with a type of product

      • Intensive: so many locations

        • Convenience products 

        • Selective fewer locations 

          • Shopping products 

        • Exclusive: very few outlets

  • Slotting allowances: fee that is paid by the manufacturer to the retailer that you want to sell your product

    • Depending on the product; if you pay a higher fee you will get a better place for your product

  • Retailing

    • Brick and mortar stores

    • Non store

      • Vending machines

    • Qvc

      • Traditional television

      • Tv channel that sells product after product

    • Direct selling

      • Door to door

      • Solar panels

      • Home security

  • Levels of service:

    • Limited service: do a lot of the work yourself but have employees there to help you

    • Full service: may not buy anything but still provide the full service; nordstrom 

  • Retailers:



W7: Tuesday 2/18


Chapter 17/18/19: IMc and Direct Marketing & Advertising, sales Promotions and PR



Integrated marketing communications

  • Were we study it: has been around for 20 years

  • Incorporated into promotions

  • Across org to make sure that all your marketing connotations are integrated

    • To ensure marketing promotions online align across all websites 

  • Want consistency but not duplication to avoid demonstrating laziness

  • Who you are targeting through the various ways of promoting

  • Habituation

    • Being accustomed to it

    • Dont want to lose the attention

  • Consistent message across all the promotions but change it at timeless to still be able to grab the audience 


Purpose:

  • Creating awareness

    • Intrigue

    • What we might offer the customer

    • To persuade the audience

    • Lean heavily into persuasion of promotion

      • How you compete with other in the market

Promotional strategies

  • Are they on certain apps; linkedin, tv: jeopardy audience

    • Figuring out the target market and where you can interact with them

    • Uber targeting the parents of teens who failed their driver’s exam

  • Direct marketing / selling


Coherence:

  • The tone is accurate

  • The message is accurate among the message

  • Music, font, color is similar among what the consumer is being exposed to

Five primary elements of promotional mix:

  • Advertising

  • Selling

  • Direct marketing

  • Sales promotions

  • Public relations 

 


Communication mode:

  • Call to action: contact us regarding this

    • How many people who saw the message clicked the link although they didnt purchase anything   


Strategies: both can be used for the same thing

  • Push:

  • Messaging is coming from the manufacturer to the wholesaler

  • Could be messaging

  • Heinz manufacturer of ketchup talks to ralphs and for every 10 cases of our product that ralphs sells this week, they will get a free box 

  • Ralphs pushes marketing onto the customers  



Pull:

  • Ralphs mails coupons to its customers 


  • Pharmaceuticals


Direct marketing 

  • Trying to get a person to engage in an activity

  • More targeted than some type of promotions

  • Direct mail or catalogues 

  • Emails 

  • Text messaging directly onto the phone number

    • Must provide name and consent


Pros and cons of direct marketing

  • Adv

  • Dis:  invasion of privacy


One to many model


Advertising:

  • Part of  segment of people that this company believes it would be appropriate 

  • Know demographics and psychographics 

  • Contact of very low price

  • Little to no immediate feedback

 


Neilson family:

  • Everytime a family sits down in the living room to watch a tv program, they log info on who is tuning into the program and who isnt by including their demographics 



Competitive advertising: mentioning own products without mentioning other products 

Comparative: speaking about products by comparing how your product is better than other 

  • Coke is comparative: they are not mentioning pepsi but they are mentioning how they are the main leader of sodas


Papajohns indirectly mentioning pizza hut by saying better ingredients, better pizza




Advocacy: where a brand advocates for a cause and use it in their promotional material 


  • How many people and who is watching tv 

Specific 

Measurable

Achievable: if set too high it wont be attainable 

Relevant

Timeline



Strategy: 

  • Are you talking to who you want to buy your product or who they want to influence others to buy it



Good strategy, bad execution or vice versa wont work well



Good  strategy, bad execution:pepsi and kendall jenner

  • Promote product to a younger generation in a way that it will enable the generation to stand towards what they believe in 


Creative consideration:

  • Fear based

  • Humor based

  • What type of appeal


  • How do you measure 


Sales promotions:

  • One of the five ways of promoting product

  • Composes everything from a discount to free samples, loyalty program 

  • May increase sales and are often temporary 


Public relations

  • Credible way of promoting

  • News release of the product

  • The stars of movies talking about the movie at talk shows

  • New media to talk about your product

  • News radio, morning show mentioning a new restaurant opening nearby 


Product classicfications

Chapter 15

Target market for products - pie chart



Chapter 12: 


Credence 


Product life cycle

Marginal competitor

maturity:

  • Revenue


Thursday 2/20


Chapter 19/20/21: Social Media & Personal Selling


Sales / Personal Selling:

  • Personal selling: interactions between seller and customer

    • Two way flow of information 

    • Direct marketing: feedback is a little bit better

      • Sales promotion

    • Customer is able to communicate back with you

    • Disadvantages: if both work for the same company and are trying to sell the same product, it will be sold differently compared to a single ad that is promoted to all consumers the same way

    • B2C

      • Investments

      • Getting your nail done, hair, dentist appointment

        • Relationship building way 

        • Transactional: what the seller is in the benefit of 

        • Modern family: their realtors is involved in their lives

          • Realtors have to be supreme at B2C 

          • Barbers: ask about personal life and life plans

        • You would think that a therapist would

          • They are probably less than others because they keep it boxed in; keeping it within the walls of the therapy session and will avoid you if they see you outside

          • Family therapist??

      • Referring to friends 

Inside vs outside


  • Order taker: Taking orders, you're not trying to find new customers you just attain to current orders


  • Order getter: focuses on increasing new customers


Read through presentation section within personal selling

  • Stimulus: suggestive selling; you dont get the sale all the time; you either get or you dont get the response

    • Going to a restaurant and asking the customer: would you like a drink with that

  • Formula selling: scriptive 

    • Solar panel presentation

      • They know exactly what and how to say it


  • Need-satisfaction: adaptive selling 



Techniques 

  • Acknowledge and advert: 

  • Youre at home depot and youre looking at a washer and a dryer; someone points out what you think its a problem and they respond with “yes thats true and the reason is because..”

    • Its not a problem but they turn the answer into a positive thing

  • Postpone: great question, ill get back to you

  • Agree and neutralize: bring something that its a problem for them and the customer mentions why they think its not a problem and they explain why 

  • Denial: when they come with a reason why they dont want to buy; if there’s no truth, you have to deny it 

  • Ignore: IF you can tell they’re going to buy 


Many to many model


  • Crowdsourcing: utilizing the public to create knowledge and providing funds

    • Benefits: you need customers working for you

    • The customers get excited to have their work shown on the television 

  • Crowdfunding: 

    • Youre not at the point where you can get angel investors or the bank can lend you a loan

    • Gathering a community to accumulate money for a startup


  • Do it yourself 

  • Its about the creation of it

    • Podcasts

    • Vlogs

    •  

  • Work from a consumer is more important than from a brand 


  • Get the crowd working for you through reviews

    • Rules around online reviews


Disclosures:

  • What makes you subscribe: 

    • enjoy the authenticity and trust  

    • Their sponsored videos must be relevant to their content 

  • Pepsi can tell a certain person to stop mentioning their brand 

  • Poppi 

  • Carl's Jr.









W8: Tuesday 2/25


Social Marketing:

  • The marketing of goods and services

    • Insulated drink containers

    • Concerts

    • Plane tickets

  • The marketing of behavioral change for the good of society and the individual 

  • Dumb ways to die campaign

    • Increase safety awareness around trains and change behavior to behave in a safer manner


What is it used for

  • Increasing public's health by encouraging to get vaccinated, donate blood

  • Wear helmets

  • Protecting the environment


Commercial marketing

  • Targets

  • Research on how to connect with the audience through which platforms


How does it differ

  • Main goal of cm is to get a product or service in the hands of a consumer who needs or wants a product and connect with the consumer that its important to the company

  • Cm is centered around selling a product to the customer and the money comes back to the company

    • Financial gain

  • Behavioral change that results in a better society 


Target markets

  • Sm 

    • Primary audience

      • Trying to get them to change their behavior

      • Secondary audience: audience that surrounds primary audience; family, friends 

      • Policy makers who might institute a law that will necessitate a change for the audience