Marketing Concepts and Strategies Notes

Market Development and Diversification

• Market Development: Strategy that involves expanding into new markets.

  • Example: Tim Hortons opens new stores in Mexico.
  • Example: Ryerson University offers live online interactive undergraduate courses.

• Diversification: Strategy of creating new products to appeal to different markets.

  • Example: Nintendo develops a new smartphone.
  • Example: TELUS starts its own Canadian bank.

Market Penetration and Product Development

• Market Penetration: Increasing market share of existing products.

  • Example: Rogers Wireless offers deals on bigger data plans.
  • Example: Cadbury India promotes chocolates as gifts during Diwali instead of traditional sweets.

• Product Development: Introducing new products to existing markets.

  • Example: KFC adds salads to its menu.
  • Example: Sony produces games for both PlayStation 4 and Nintendo Wii U.

Environmental Factors and Microenvironment

• Economic Factors: Trends affecting consumer behavior.

  • Example: 29% decrease in Canadians taking extended vacations due to recession from 2008 to 2012.

• Competitors: Reactions from rival companies that affect market dynamics.

  • Example: Tim Hortons' "Roll Up to Win" campaign coinciding with McDonald's free coffee promotion.

Business Buying Behavior

• Business to Business (B2B) vs Business to Consumer (B2C): B2B purchases often involve more customization.

• Noise in Communication: Disruptions in the communication process hindering message delivery.

  • Example: Technical issues with accessing online journals affecting research.

Distribution Channels

• Direct Distribution: Selling products directly to consumers through one’s own website.

  • Example: Selling J.K. Rowling's novel directly.

• Indirect Distribution: Selling through third-party platforms.

  • Example: Selling Dan Brown's novel via Amazon.

Marketing Strategies and Consumer Adoption

• Pull Strategy: Involves creating consumer demand through marketing efforts.

  • Example: Procter & Gamble sending coupons for Dawn dishwashing liquid.

• Consumer Adoption Groups:

  • Laggards: Consumers who are skeptical and wait for product popularity before purchasing.
  • Example: Barry, who adopts products late.
  • Early Adopters: Individuals influential in later consumer buying decisions.
  • Example: Andrew, who is respected for his knowledge.
  • Cognitive Dissonance: Refers to buyer’s remorse after purchasing a product.

Marketing Environment Factors

• 4 Key Consumer Markets: Global, Consumer, Business, Government.

• Types of Marketing Environments:

  • Demographic
  • Political-Legal
  • Technological
  • Natural
  • Economic
  • Socio-Cultural

Segmentation Strategies

• Market Segmentation: Dividing the market based on characteristics.

  • Effective segmentation needs:
  • Substantiality
  • Identifiability
  • Accessibility
  • Responsiveness

• Types of Segmentation:

  • Demographic: Dividing based on age, gender, income.
  • Geographic: Based on region or climate.
  • Behavioral: Based on product usage or loyalty.

Consumer Needs and Product Types

• Maslow's Hierarchy of Needs: Understanding consumer motivation in purchasing.

  • Ranges from physiological needs to self-actualization.

• Types of Consumer Products:

  • Convenience Goods: Inexpensive, require little shopping effort.
  • Shopping Goods: Comparison shopping, more effort involved.
  • Specialty Goods: Unique products requiring extensive search.
  • Unsought Goods: Products that consumers don’t actively seek.

Product Development and Branding

• Product Mix: Total variety of products offered by a company.

  • Width: Number of product lines.
  • Length: Number of items in a line.
  • Depth: Variations within a product line.

• Branding: The promise to deliver quality and performance.

  • Types of Brands: Individual (distinct names) and Family Brands (shared name).
  • Brand Equity: The value associated with a brand name.

Pricing Strategies

• Price Skimming: Setting high initial prices to target early adopters.
• Penetration Pricing: Low initial price to attract a larger market.
• Status Quo Pricing: Maintaining current price levels to meet competitor prices.

Advertising and Promotion Strategies

• 4 Major Types of Advertising:
  • Pioneering, Competitive, Comparative, Advocacy.
• Media Planning: Choosing appropriate channels to reach target audiences.

Innovation and Market Trends

• Diffusion of Innovation: The spread of a product or service through a market over time.
• Niche Market: Targeting a specific segment of the market for specialized products.
• Cannibalization: New product sales impacting existing product lines.
• Brand Loyalty: The importance of meeting changing consumer wants for sustained growth.