NOTES FOR RECI

• 2 functions of business

  • marketing

  • innovation

• Marketing eras

  • 1.0 - product centric

    • markets product than a specific need

  • 2.0 - customer centric

    • customer needs and interests ex. skincare

  • 3.0 - human centric

    • personal desire to form interactive connections and build meaningful relationships.

  • 4.0 - traditional marketing coexisting with digital marketing

    • combines style with substance to build brands and fosters human-to-human connections for stronger consumer engagement.

  • 

    5.0 - technology for humanity

• market - regular gathering of people for the purchase and sale of provisions

• marketplace - open square or place in a town where markets r held

• main objectives business orgs should achieve:

  • attaining a position of comp advantage

  • enhancing a firm’s performance vs competitors

• 2 parts of definition of marketing

  • customer analysis

  • competitor analysis

• customer value - level of satisfaction customers have with your product or service

• 4 PS

  • Product

  • price

  • place

  • promotion

• 7 PS

  • Product

  • Price

  • Place

  • Promotion

  • People

  • Physical Evidence

  • Process

• Product Strategy

  • Vision

  • goals

  • Initiatives

• 3 drivers of customer value

  • need

  • want

  • demand

• 5 level of products

  • core product

  • basic product

  • expected product

  • augmented

  • potential

• market skimming - high price, low volume

• market penetartion - low price, high volume

• status quo pricing - matching competitors price

• prestige pricing - higher price of product when its unqieu

• product line pricing - price steps between various products

• psychological pricing - emotions fo customers

• odd even pricingg - odd prices like 888

• reference pricing - product is below a customer’s price

• everyday low pricing - setting a low price for products consistently ex. walmart

• multiple unit pricing - less payment for multiple units of same product

• bundle pricing - package of goods or services for a lower price

• differential pricing - pricing aligned w demand and supply ex hotels

• product form pricing - different variants of the same product ex. car w diff color

• image pricing - pricing is based on image differences of the same product ex. cheez whiz and its different packages

• channel pricing - distribution channels as a factor in pricing

• location pricing

• time pricing

• customary pricing - product price is consistent over time

• price elasticity - change in demand with unit change in price

MODULE 8

The physical environment - where firm and customer interacts

Process - a series or steps taken to achieve a particular end

Service - can't be experienced until delivered. Demonstrated through testimonials, customer feedback, and referral business

intangibility inseparability variability perishability

7 Ps of MARKETING: Product Price Place Promotion People Process Physical environment Porters generic strategies - how companies achieve competitive advantage

cost leadership differentiation focus (cost or differentiation)

MODULE 7 PLC and BCG

Product Life Cycle:

Intro ->

• penetration pricing - low price for a new product to attract many buyers

• selective distribution - a small number of retail outlets r chosen to distribute the products

• skimming pricing - Involves setting a high price for a new product to skim

  maximum revenue from the segments willing to pay the high price

Growth stage ->

• increase product share

• economies of scale - greater quantity, lower per unit fixed cost

  • internal

  • external

• Economies of scope - cost savings by sharing resources and transferring core competencies

• maintained pricing

• flanker products - “fighter brands” offer a new product within an existing category to boost market share

maturity->

• market is saturated, branding is crucial, products focus on differentiation, distribution intensified

decline stage

• intense price cutting, cost cutting to improve profits even when it leads to many product withdrawal

• a firm has 3 options

  • maintain the product

  • harvest the product

  • discontinue the product

• objectives and strategies of PLC

  • awareness and trial, maximize market share, maximize profits; defend share, milk the brand

BCG Matrix - prioritize business products and guide resource allocation; x axis - relative market share, y axis - market growth

• question marks

• stars

• cash cows

• dogs
  

market size - number of indivduals who r potential buyers

market share - company’s portion of sales within the entire market it operates

market growth - an increse in the demand of product

• most businesses start as a question mark

  • new ventures in high-growth market. if it doesnt gain market share, it becomes a dog

• stars are successful question marks

• cash cows have a superior market position but have low costs

• dogs - weak market share in low growth markets

SESSION 6

Promotional Mix Methods

• traditional marketing - any type of promotion in use by companies for years, proven success rate

• Above the line advertising - mass media methods, builds the brand, large audience

  • ex. when a newspaper asks customers to visit and avail discounts/freebie

• below the line advertising - non traditional advertising, drive sales, tangible incentive

  • ex. when customers finally visit the store, product sample

• through the line advertising - involves atl and btl for maximum growth of brand

• public relations - positive RS between organization, media, and public

• personal selling - firms rep and consumer one2one

• sponsorship - org is paid to use our branding

but, what is your message?

• promo strategy - reaching your audience

• media mix - how to get your message seen

marketing mix

• products, price, place, and promotion

• off shoring - basing company’s processes overseas

• reshoring - moving jobs back home

• outsorcing - job functions done outside a company

• new people paradigm - people strategy

STEEPLE Analysis - tool for scanning the external environment

• socio cultural factors

• technological factors

• economic factors

• environmental factors

• political factors

• legal factors

• ethical

• demographic

macroenvironment - conditions in the economy

microenvironment - internal env of a company

• political vs legal factors

  • political - government policy

  • legal - must be complied with

• steeple should assess national and international laws

MODULE 4

place - how and where a company will place its products and services

distribution strategy

marketing channels - Refers to the entire system for getting products (tangible goods and intangible services) from the point of production to the point of

consumption

channel management - process where company develops various marketing techniques and sales strategy to reach customer base

distribution channel - chain of intermediaries through which the

product passed to get from the producer to the consumer.

• direct: producer to consumer

• indirect: uses intermediary

manufacturers - produces finished goods from raw materials

wholsalers - buy large quantities from suppliers, B2B

retailers - sells to consumers

direct channel marketing

• B2B or B2C

common distribution outlets

• intensive distribution - low priced products

• exclusive distribution - single outlet, high prices

• selective - small num of outlets. large geo spread