Cultural Marketing: Consumer Needs and Value

Introduction to Cultural Marketing

• Marketing focuses on product orientation versus consumer orientation, and its application within companies.

Definition of Marketing

• Marketing is defined as creating profitable customer satisfaction
• Focuses on understanding consumer needs
• Marketing involves various activities and institutions for creating and exchanging value for customers and society.
• Marketing is helping someone solve a problem, enabling them to become who they want to be
• Marketing is about values.

How Marketing is Applied

• Marketing affects fast-moving consumer goods like toothpaste
• Impacts services that are intangible
• Covers cultural assets, retail, restaurants, entertainment, information, and more
• Includes investments, non-profits, and real estate

What Marketing Isn't

• Marketing is not just sales, advertising, or commercial activity
• It's not about pushing unwanted products onto consumers
• Communication is just one tool used in marketing

ESG Marketing

• ESG (Environmental, Social, Governance) marketing aims to improve business practices, encompassing environmental impact and community involvement
• ESG strategies create a positive brand image and connect with stakeholders sharing similar values, highlighting a company's dedication to sustainable and ethical operations.

Key Aspects of ESG

• Environment: Focuses on the impact of production, packaging, ingredient sourcing, and disposal processes
• Social: Considers fair salaries, safety, work-life balance, and inclusivity
• Governance: Includes turnover rates, profit margins, and typical business KPIs

Social Balance Sheet

• An economical report that specifically focuses on the the social and human capital aspects of an organization
• It provides a detailed view of how an organization manages and impacts its employees and other human related elements.

Types of Marketing

• Non-profit organizations compete for public attention akin to for-profit entities.
• Non-profit marketing aims to generate awareness, fundraise, and advocate for positions on various topics using subscriptions, fundraising, advocacy, and consciousness-raising
• Political marketing involves politicians competing on more than just ideas by trying to gain attention, leveraging compelling subjects, presenting achievements, and communicating effectively.

Sports Marketing

• Sports marketing promotes sports through events, teams, athletes, and products, is a $487+ billion global market.
• It is split it into marketing of sports, promoting events/teams/leagues
• Split into marketing through sports, leveraging sports figures to promote a brand

Strategic and Operational Marketing

• Strategic marketing is how an organization differentiates itself by focusing on its strengths to provide better service and customer value
• Operational marketing involves short- and medium-term tactics to achieve results

Demarketing

• Demarketing reduces demand for a product or service through strategies like managing scarcity, promoting alternatives, demonstrating social responsibility, and ensuring brand exclusivity

Examples of Demarketing

• Advertising might discourage certain behaviors
• Can involve raising prices for luxury
• Limited product availability, or removing products

Marketing-Oriented Companies

• Production-oriented companies focus on production, prioritize market growth, and measure success by product availability and affordability
• Product-oriented companies focus on product differentiation and innovation, catering to consumers open to new ideas.
• Sales-oriented companies prioritize efficiency, high sales, and promotions to drive volume and resources, often dealing with commoditized products and price-conscious consumers.
• Marketing-oriented companies focus determining how to best meet consumer needs, differentiate themselves, and increase consumer loyalty

Brand Manager

• Responsible for brand performance, manages marketing tools, monitors competition, and ensures quality.

How to Succeed in Marketing

• Companies succeed in the market by answering consumer market needs through better, sooner, cheaper, more convenient, more reliable, more lasting and by providing a better image

Criticisms of Marketing

Marketing faces criticism for:

• Pushing unnecessary purchases
• Overpromising benefits
• Exploiting vulnerabilities
• Planning obsolescence

Market Definition and Segmentation

• Market definition includes understanding consumers, competition, market research, and segmentation: the market can be split by who is consuming goods at home or at establishments
• Defining the market is crucial for understanding competition, measuring market share, assessing growth potential, auditing needs, positioning products, monitoring technology, and gaining inspiration.

Market Share

• Market share measures the percentage of a market owned by a company
• The KPI is used to measure performance vs competitors
• Market share can be measured by dividing a brand's total sales by the total overall market sales
• Expressed as a % in a given period/geography, measured by volume or value

Related Concepts of Market Share

• Share of stomach quantifies the amount of food a company accounts for in someone's diet
• Share of wallet is the measure of money occupied by a company in comparison to the total money spent

Evaluating Market Share

• Market share in a growing market can see sales grow and share shrink
• Market share in a declining market can see sales fall and share expand
• If a market leader, work for market growth, otherwise focus on you own share.

Consumer Segmentation

• Consumer segmentation involves differentiating consumers and choosing a target consumer group.
• Segmentation aggregates prospective buyers into groups with common needs that respond to marketing actions similarity

Segmentation Strategies

• Grouping by demographics
  • age
  • geography
  • education
  • marital status
  • children/no children
• Grouping by behaviour
  • if products have/not been bought
  • if products have been tried
  • loyalty
  • response to promotion
  • where people buy
  • buying regularity
  • expensive/inexpensive
• The key of need structure has grown more complex: people need
  • time
  • recognition
  • care for environment
  • meaning of life
  • a future world

Segmentation Analysis

• Group customers into groups with similar attitudes and feelings based from close association, regarding innovation, sustainability, politics, investment, food, mobility to segment lifestyle.
• Hybrid segmentation depends on data, market research, product, and the market as there is no "best" grouping area

Marketing Personas

• These represent a typical target consumer, but they risk being stereotyped
• Context is important to create a real-world scenario

Factors Affecting Consumers' Decisions

• The key factors include economic trends, political stability, safety, optimism, and geopolitics.

Market Research Types

• Qualitative research uses small non-statically reliable samples to extract understanding with preliminary recognition with interviews
• Quantitative research can be used for attitudes with samples representing the statistically population with quick interviews

Market Research Bias

• Market research faces bias due to interviewee biases, which can affect data

Lesson 3

• Fundamentals of brand and product success

Brand Manager Responsibilites

• Brand managers oversee performance, manage marketing, monitor competition, and drive innovation.

The 4 P's of Marketing

• The marketing tools consist of product, price distribution and promotion

Product vs Brand

• Products are not brands, instead brands have relevant values with an identifiable logo/name
• Fast Moving Consumer Goods (FMCG)/Consumer Packaged Goods (CPG) are supermarket durable products
• Commodities lacking emotional involvement have used creativity and advertising

Private Label vs Standard Products

• Private labels are produced by a company and marketed under another.
• Durable Products, services, and cultural assets also key

Being Responsible With Product Marketing

• Shrinkflation lowers the product size, increasing price without changing it

Marketing with Planning

• "It is not bad to be a fad, if it was planned," refers to marketing with intent

Social Media Considerations

• "Social media are a Fad accelerator," refers to the fast nature of the platforms
• From introduction to maturity, the most critical part requires Reputation and consistency.
• Constant innovation and financial investment are key

Product Life Cycle Strategies

• During introduction; test the market, explain the product
• During growth; grow distribution, keep prices low, and introduce new versions
• During maturity; attract new users, seek new opportunities
• During decline; lower costs and reinvest

Innovation

• Acquisitions and New Product Development are key, while measuring acquisition benefits against incremental

The Innovation Process

• The Innovation Process from idea generation/evaliation/analysis to an implementation
• Following proper market production at the "market launch" is crucial

Product Innovation Rules

• New products must generate more profit, while considering cannibalism

Price

• Economists understand; Where demand and supply reach EQUILIBRIUM
• In practice product is more linked to stocks, commodities, and real-estate

Impacting Price

• Price determination is a market skill that varies based on category, production costs, consumer behaviors
• Impacts factors like product uniqueness and economic context

Reacting to Price

• It is noted; people are not rational, and behave uniquely
• "In some category, more expensive = better", defines unique purchase factors

Price Elasticity

• Price sensitivity can be measured by change in quantity, the higher the quantity change, the more sensitive, "elastic"

Promotions

• Running price promotions comes in the shape of discounting and quantity promotions

Coupons

• Coupons and cards help attract consumers and generate volume
• Producers pay retailers to offer them, with retailers also able to make money from producers to sell their products

Ditribution

• The distribution role is helping consumer accessibility through service
• Includes knowledge, gathering consumer data

Distribution In Practice

• E commerce focuses on long-tail niche products, compared to brand stores which help the product feel more real
• The two types include direct (producer to consumer) and modern (Producer -> Retail -> Consumer) and older forms with multiple steps

Omnichannel

• Multichannel distribution helps consumer touchpoints and create easier interactions
• Needs strategies that implement pricing, data and planned interactions

Distribution Definitions

• There are various strategies focused

Consumer Insights

• Shoppers Marketing focuses on shoppers not consumers
• Specific marketing plans for a specific consumer, such as Walmart

Consumer Definition

• Not in store promotions

Reaching Consumers

• Marketing can help to reach different target consumers
• Purchase insights often determine the purchase

Consumer Actions

• A brand's main objective is to inform, persuade and remind buyers

Objectives for Brands

• With objectives we can set backgrounds, budgets, goals and means to measure success

Insight Details

• The insight can be very effective in providing a benefit

Brands

• Rooted brands benefit

The Innovation Process

• Creativity benefits the innovative proccess

How Creativity Recognised

• Creativity is an innovation

Communications

• Good media plans and a strong market drive success Media

Modern Marketing

• Marketing is increasingly influenced by tech
• Automation, targeting, and recognition define brand images

Guerilla Marketing

• Guerilla marketing helps promote brands well
• Storytelling is key in this strategy
• Focus on keeping up with the latest

Costs

• Cost can be kept low if the creative is done well
• Placing products in media is another way to promote

Copywriting

• Great copywriting helps brand influence

Company Plans

• Company plans need proper analysis

Company Insights

• Must understand their employees and customers by knowing the current trends

Planning Insights

• Proper corporate plans helps with product launch
• Vision and Mission are key

Product Strategy

• Marketing strategies benefits all aspects and levels of a business

Internal Strategy

• Good company culture creates new ideas and improves branding

Metrics

• Proper metrics such as Economic data, motivation and ethics provide vision

Product Offer

• Defining these metrics helps create innovation and sustainability

Explore the definition and application of marketing, focusing on creating customer satisfaction and understanding consumer needs. Learn how marketing impacts various sectors, from consumer goods to cultural assets, and what it truly entails beyond just sales and advertising.