Untitled Flashcards Set

Marketing

Lecture 1

Just introduction

Lecture 2

Week 1: Marketing Principles

🤔 Wants vs. Needs

The lecture began by contrasting wants and needs, using the examples of choosing a phone and an energy drink. This highlighted the core concept that marketing addresses both.

📖 Defining Marketing

Several definitions of marketing were presented:

• CIM (2015): The management process responsible for identifying, anticipating, and satisfying customer requirements profitably.

• AMA (2013): 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.

• Lendrevie & Levy (2014): The strategy of adaptation of organizations to competitive markets to influence the behavior of publics through an offering with perceived superior value. In the commercial sector, it creates economic value by creating perceived customer value.

These definitions suggest the need to:

• Understand customers and their values.

• Effectively convey value.

• Analyze competitors' actions.

• Generate profit.

🤝 Exchange Theory

Exchange: The act of obtaining a desired object by offering something in return. Every interaction involves an exchange of value (Bagozzi, 1975).

This concept applies to various marketing contexts:

• Simple value exchange: A basic transaction between customer and consumer.

• Public Sector, B2B, B2C: Exchange theory applies across different sectors.

• Relationship Marketing: Building relationships alongside transactional exchanges, emphasizing customer retention.

🎯 Marketing Contexts

• Consumer Goods: The dominant marketing approach, utilizing the 4Ps framework.

• Services: Emphasizes intangibility and managing expectations/service quality.

• Business-to-Business (B2B): Focuses on relationship marketing and supply-chain management.

🧑‍💼 Marketing vs. Sales

⏱ The Development of Marketing

🎯 What Marketers Do

The lecture referenced The Marketing and Sales Standards Setting Board (2006) for a detailed explanation of marketer roles, but that detail was not included in this transcript.

🧩 Segmentation, Targeting & Positioning (STP)

This section emphasises the importance of understanding the customer. The STP process is crucial:

• Segmentation: Dividing the market into groups with similar needs.

• Targeting: Selecting specific segments to focus on.

• Positioning: Creating a distinct image in the minds of target customers.

📈 Benefits of STP

• Enhanced Competitive Position: Provides direction and focus for marketing strategies. Example: Coke Zero.

• Market Growth Opportunities: Identifies new customers and segments. Example: Lucozade.

🤔 Why Segment the Market?

It's difficult to appeal to all consumers simultaneously. Different consumers have different needs. Therefore, marketing efforts need to be focused on specific market segments, leading to better product development and marketing mix creation.

⚙ Market Segmentation Process

The process involves ensuring:

• Segment heterogeneity: Identifiable differences between segments.

• Member homogeneity: Similarities within each segment.

📊 Segmenting Consumer Markets

The lecture highlighted several criteria for segmenting consumer markets:

1. Demographic: Example: Gender

2. Geographic: Example: Location

3. Behavioral: Example: Where, when, and how consumers behave

4. Psychological: Example: Why consumers behave a certain way

Example: Photography market segmentation by speed (slow vs. fast), style (casual vs. intelligent). The tradeoff between accessibility and usefulness was also considered.

🏢 Segmenting Business Markets

The lecture mentioned segmenting business markets, but the specific criteria weren't detailed in this transcript.

🎯 Targeting

Successful targeting requires segments to be:

• Distinct: Clearly different from other segments.

• Accessible: Reachable through appropriate channels.

• Measurable: Easy to identify and measure.

• Profitable: Large enough to generate sufficient revenue and profit. (Kotler, 1984)

Companies need to consider their own resources and objectives when targeting segments.

🎯 Targeting Approaches

The lecture discussed targeting approaches, but the specifics were not included in this transcript.

📍 Positioning

Positioning: Designing a company's offering and image to occupy a meaningful and distinct competitive position in the target customer's mind.

Positioning aims to differentiate a brand in a competitive market.

📍 Positioning Strategies

Positioning is influenced by:

1. Physical attributes: Functionality and capability.

2. Communication: How the brand is perceived relative to competitors.

Example: A strong brand positioning creates a clear, consistent, credible, and competitive image in the consumer's mind.

🗺 Positioning Maps

These visual representations show how brands are perceived based on customer-valued attributes.

Example: A positioning map could show brands' positions based on attributes like "crunchy vs. smooth", "children vs. adults", etc.

🔄 Repositioning Strategies

Several strategies were mentioned for repositioning a brand, but the specifics weren't detailed in this transcript.

Lecture 3

Week 2: The Marketing Environment & Strategy

The Marketing Environment 🌎

The marketing environment encompasses all internal and external factors influencing a firm's ability to conduct successful transactions with customers. Marketers cannot directly control their external environment.

Three Marketing Environments

• External Environment: Analyzing this environment involves environmental scanning and PESTLE analysis.

• Performance Environment: This focuses on competitor and supplier analysis, often using tools like Porter's Five Forces.

• Internal Environment: This uses tools like portfolio analysis and the BCG matrix to assess the firm's internal capabilities and offerings.

Analyzing the Marketing Environment 🤔

A SWOT analysis synthesizes information from the three environments into a manageable format, highlighting Strengths, Weaknesses, Opportunities, and Threats. Companies may even hire lobbyists to influence the political and legal environment.

Environmental Scanning 🔎

Environmental scanning is the continuous monitoring and assessment of the external environment to anticipate changes and adapt accordingly. Organizations that fail to adapt may decline and even cease operations.

Competitor Analysis 🤝

• Direct Competitors: Offer similar products/services targeting the same market.

• Indirect Competitors: Target the same market but with different offerings.

Internal Environment: Portfolio Analysis & BCG Matrix 🗂

Product Portfolio 💼

Portfolio analysis assesses the relative performance of a company's product offerings. The goal is to achieve a balanced portfolio across various offerings for short, medium, and long-term profitability.

Key Considerations:

• Product market growth rate

• Desired market share for each product

The Boston Consulting Group (BCG) Matrix 📊

The BCG matrix analyzes the relative performance of a firm's product portfolio using market share and growth rate to categorize products as Stars, Cash Cows, Question Marks, or Dogs.

Example: Coca-Cola's Portfolio (UK): Coca-Cola's portfolio includes various brands like Oasis, Smartwater, Fanta, Monster, and many more. This portfolio is constantly evolving.

Marketing Strategy & Goals 🚀

Corporate Strategy & Mission Statement 🎯

A mission statement defines the organization's long-term goals. Coca-Cola's mission is to refresh the world, inspire moments of optimism and happiness, and create value.

Strategic Marketing Goals & Objectives 🥅

These goals should align with the mission statement and overall corporate strategy.

Strategies for Growth 📈

Four main approaches:

1. Market Penetration: Same product, same market.

2. Product Development: New product, same market.

3. Market Development: Same product, new market.

4. Diversification: New product, new market.

Ansoff's Matrix (1957): This matrix visually represents the four strategies for growth.

Pulling it All Together: TOWS Matrix 🧩

A good strategy effectively matches environmental opportunities and threats with an organization's strengths and weaknesses.

Competitive Advantage: An organization's strengths define its competitive advantage – what it does better than the competition.

SO (Strengths & Opportunities): How can strengths be used to capitalize on opportunities?

ST (Strengths & Threats): How can strengths mitigate threats?

WO (Weaknesses & Opportunities): How can opportunities overcome weaknesses?

WT (Weaknesses & Threats): How can weaknesses be minimized and threats avoided?

Strategic Planning & Key Metrics 📏

Strategic planning should incorporate key metrics to measure marketing success (source: Fletcher et al., 2013).

Summary 📝

• External Environment Analysis: PESTLE framework

• Performance Environment Analysis: Porter's 5 Forces

• Internal Environment Analysis: BCG Matrix

• Integration: SWOT/TOWS analysis to guide strategy

• Strategic Goals: Various types exist

• Growth Strategies: Ansoff's Matrix

• Measurement: Key performance indicators are crucial for evaluation.

Lecture 4

The Marketing Mix

What is Marketing?

Marketing is the process of identifying, anticipating, and satisfying customer needs profitably (CIM, 2015). The American Marketing Association (2013) defines marketing as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings of value to customers, clients, partners, and society.

The Marketing Mix (4Ps & 7Ps)

A framework describing the key elements marketers must consider:

• 4 Ps: Product, Price, Promotion, Place

• 7 Ps (for services): Product, Price, Promotion, Place, People, Process, Physical Evidence

Target Market

A group of customers with similar needs and wants.

Product

• The offering to the customer (tangible product or intangible service).

• Must satisfy customer needs.

• Key Marketing Decisions: Design, Features, Quality

Product Mix & Product Line

• Product Mix: The total range of products offered by a business.

• Product Line: A range of related products under one brand (e.g., Coca-Cola, Diet Coke, Cherry Coke).

Product Lifecycle (PLC)

1. Introduction: Low sales, high costs, little profit.

2. Growth: Rapid sales increase, brand awareness grows, competition increases.

3. Maturity: Sales stabilize, competition intensifies, new features added.

4. Decline: Sales fall, profits decrease, product may be phased out.

Price

• The amount customers pay for a product.

• Influences customer perception (low price = low quality?).

• Pricing Strategies:

  • Penetration Pricing: Low price to gain market share.

  • Price Skimming: High launch price to attract premium buyers.

  • Premium Pricing: High price to suggest high quality.

Place (Distribution)

• How and where the product is sold.

• Distribution Channels: Wholesalers, retailers, e-commerce.

• Ensuring correct placement improves sales and reaches the target audience.

Promotion

• Communicating product benefits to the target audience.

• Promotion Mix:

  • Advertising (TV, social media, radio)

  • Sales Promotion (discounts, BOGO deals)

  • Personal Selling (direct interaction with customers)

  • Public Relations (brand reputation management)

  • Direct Marketing (emails, messages, targeted ads)

Promotional Models

• AIDA Model (1898): Awareness, Interest, Desire, Action

• DRIP Model: Differentiate, Reinforce, Inform, Persuade

• 8 Steps to Effective Marketing Communications (Kotler, 2019):

  1. Identify the target audience

  2. Determine objectives

  3. Design communications

  4. Select channels

  5. Establish a budget

  6. Decide on the mix

  7. Measure results

  8. Manage integrated marketing communications

People, Process, and Physical Evidence (Services Marketing)

• People: Employees influence customer experience and satisfaction.

• Process: Service delivery must be standardized and efficient.

• Physical Evidence: Tangible aspects (branding, website, packaging) influence customer perception.

Marketing Environment

• External Environment: PESTLE analysis (Political, Economic, Social, Technological, Legal, Environmental).

• Performance Environment: Competitor and supplier analysis (Porter’s Five Forces).

• Internal Environment: Portfolio analysis using the BCG Matrix (Stars, Cash Cows, Question Marks, Dogs).

Marketing Strategy & Growth

• Corporate Strategy & Mission: Align marketing goals with company objectives.

• Ansoff’s Matrix (1957):

  1. Market Penetration (Same Product, Same Market)

  2. Product Development (New Product, Same Market)

  3. Market Development (Same Product, New Market)

  4. Diversification (New Product, New Market)

• TOWS Matrix: Aligns strengths with opportunities and weaknesses with threats.

• Competitive Advantage: A company’s unique strengths that set it apart from competitors.

Lecture 5

What is a Product?

• A proposition or offering:

  • Anything offered for use/consumption in exchange for money or value

  • Includes physical goods, services, ideas, people, places, experiences, or a mix

Service > Product

• The concept of proposition applies beyond physical products to services and experiences

Levels & Types of Consumer Products

Durability

• Durable goods → High buyer involvement

• Non-durable goods → Low buyer involvement

Consumer Behaviour Categories

1. Convenience Products → Low effort purchase

   • Staple products → Regularly bought essentials

   • Impulse products → Bought spontaneously

   • Emergency products → Urgent necessity purchases

Types of Business Products

1. Equipment Goods

2. Raw Materials

3. Semi-Finished Goods

4. Maintenance, Repair, & Operating (MRO) Items

5. Component Parts

6. Business Services

The Need for New Products

• Products become obsolete over time

• To compete, businesses must offer superior value

• New products may be:

  • Completely new innovations

  • Existing products with new features

Ways to Develop New Propositions

1. Buy in finished products

2. Develop products through collaboration

3. Develop new products internally

Challenges & Reasons for Failure (Drucker, 1985)

• No market demand

• Product fails to meet market needs

• Poor communication of product value

Case Studies

• Google Glass

• Cadbury’s product innovations

New Product Development Process (NPDP)

• Structured approach to bringing new products to market

Developing New Service Propositions

• Value creation is key

• Service Innovation Strategies:

  1. Competitive services → Established markets

  2. Incremental innovation → Value-added features

  3. Radical innovation → Completely novel services

Services Adding Value to Products (Shelton, 2009)

1. Basic after-sales support

2. Complementary after-sales services

3. Integration of products & services for differentiation

4. Services as a core part of the offering

Innovation Adoption & Diffusion

• Adoption curve:

  • Innovators (2.5%)

  • Early adopters (13.5%)

  • Early majority (34%)

  • Late majority (34%)

  • Laggards (16%)

Lecture 6

Definition: Marketing Research

Marketing research links consumers, customers, and the public to marketers through information used to:

• Identify and define marketing opportunities and problems.

• Generate, refine, and evaluate marketing actions.

• Monitor marketing performance.

• Improve understanding of marketing as a process.
  (American Marketing Association, 2015)

Definition: Market Research

Market research includes social and opinion research and systematically gathers and interprets information about individuals or organizations. It uses statistical and analytical methods from applied social sciences to gain insight and support decision-making.
(European Society for Opinion and Market Research, 2016)

Market Research vs. Marketing Research

Market Research determines structural characteristics of an industry, such as:

• Demand

• Market share

• Market volumes

• Customer characteristics

• Segmentation

Marketing Research informs specific marketing strategy decisions, such as:

• Pricing

• Sales forecasting

• Proposition testing

• Promotion research

Marketing Research in Action

Key questions marketing research can answer:

• Why are sales levels not meeting expectations?

• Have household incomes in the area decreased?

• Is a new competitor taking customers?

• Are customers bored with the product range?

• Were management expectations too high?

Definition: Customer Insight

Customer insight is knowledge about the customer that is valuable for the firm. (Said et al., 2015)

Sources of customer insight:

• Industry reports

• Mystery shoppers

• Competitive intelligence

• CRM systems

• Social media analysis

• Big data

• Quantitative & qualitative research

Marketing Information System (MIS)

Used to:

• Collect, store, and analyze data

• Aggregate data from multiple sources

• Provide continuous vs. ad-hoc information

Types of Marketing Information:

• Offering or market data (e.g., sales data)

• Analytical decision models (e.g., SWOT, segmentation analysis)

• Internal information (e.g., costs, KPIs)

• External information (e.g., macro and industry trends)

• Historical data (e.g., past sales, profitability)

• Future-oriented data (e.g., horizon scanning, forecasts)

• Quantitative data (e.g., market share, NPS)

• Qualitative data (e.g., buyer behavior, competitor strategies)

What Marketing Research Can and Can’t Do

✅ Can:

• Inform decision-making

• Understand customer motivations and behaviors

• Test new product propositions

• Provide sales forecasts

❌ Can’t:

• Guarantee consumer behavior

• Predict future commercial environments

• Ensure context-specific results

• Determine the best timing for market entry

The Marketing Research Process

1. Interpret the management problem accurately

2. Develop appropriate research questions

3. Select a research design that answers these questions

4. Use the right analysis methods

5. Present results meaningfully in a report

Research Design Considerations

• Sampling: Who will be surveyed?

• Data Source: Primary vs. secondary data?

• Methodology: Qualitative or quantitative?

• Question Design: How will questions be structured?

• Data Analysis: What methods will be used?

• Validity & Reliability: Are findings accurate?

Sources of Secondary Data

• Government sources (e.g., export databases, statistical offices)

• Market research companies (e.g., Mintel, Euromonitor)

• Company internal records (e.g., sales reports, previous research)

• Trade associations (e.g., industry databases)

• Internet sources (e.g., blogs, discussion forums)

Assessing Source Reliability

• Who is the author? (Are they affiliated with a reliable institution?)

• Is the author named? (Anonymous sources may be less credible.)

• Is the information up to date?

• Is it balanced or biased?

• Is it a primary or secondary source?

• Academic vs. Non-Academic:

  • Peer-reviewed journal article → Highly reliable

  • News article, press release → Less reliable

  • Company brochure, website → May be biased

Reliability Ranking of Sources (From Most to Least Reliable)

1. Journal article (peer-reviewed)

2. Academic book

3. Textbook

4. Industry report

5. Newspaper article

6. Magazine

7. Website

8. Brochure

9. Personal correspondence

Qualitative vs. Quantitative Research

• Quantitative = Numbers (measurement-based)

• Qualitative = Words (meaning-based)

Data Collection Methods

Qualitative:

• Focus groups (in-person)

• Discussion forums (online)

• In-depth interviews (in-person/telephone)

• Observation

Quantitative:

• Online surveys

• Face-to-face surveys

• Administrative records

Definition: Big Data

Big data is the systematic gathering and interpretation of high-value, high-velocity, and/or high-variety information using innovative, cost-effective methods to enhance decision-making and process automation. (McAfee & Brynjolfsson, 2012; Press, 2014)

Ethics in Marketing Research

Marketing research should be:

• Objective, unobtrusive, and transparent

• Voluntary (informed consent required)

• Not used for persuasion or sales tactics

• Clear on purpose and subject

• Securely stored

International Marketing Research Challenges

• Cultural differences

• Language barriers

• Infrastructure variations

• Equivalence issues:

  • Semantic equivalence (Do terms mean the same?)

  • Data collection equivalence (Is the same method used?)

  • Conceptual equivalence (Are concepts interpreted the same way?)

  • Measurement equivalence (Are scales and metrics comparable?)

  • Functional equivalence (Does the function of a product/service differ?)

  • Sampling equivalence (Are populations comparable?)

  • Translation equivalence (Is the translation accurate?)

Summary

• Market research, marketing research, and consumer insights are distinct concepts.

• Marketing Information Systems (MIS) manage marketing data.

• Marketing research follows a five-stage process.

• Ethics are central to successful research.

• International research faces challenges due to data equivalence.