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.