Introduction to Marketing

• Marketing includes marketing communications such as advertising
• Marketing is more than just ads, it is a global process
• Marketing is central to any successful business
• Marketing facilitates the exchange between consumers who need something and businesses with products that fulfill that need, thus creating value
• Marketing is used by businesses, nonprofits, governments, and schools to sell products, services, communicate ideas, and encourage actions
• Marketing is defined as 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

History of Marketing

• Production Approach: demand increases before production (chain production → industrial revolution)
• Products Approach: The best product will win, regardless of customer needs (QUALITY)
• Sales Approach: Demand decreases as offer increases, so the best salesperson will win, regardless of product quality; manipulation is used to create a need for their product, and customer needs are ignored
• Marketing Approach: Understand the customers' needs → create a market offering that will fulfill this need

Needs vs. Desire

• A need is something that is fundamental and innate, it is not created by marketing
• A desire is a way to fulfill a need; it is culturally and socially influenced
• Marketers identify customer needs and desires to meet them with the right products at the right price, through the correct distribution network, using the right communication tools and offering first-rate customer service

Categories of Demand

• Demand = amount/value ($) of goods or services consumers acquire on a given market
• Market share = demand to business/market demand
• Market demand = sum of individual and business demand
• Demand made to the company / Real demand = transactions made (in volume or dollars) to purchase a product or service from a given company
• Actual demand = what the demand is right now (actual < potential)
• Potential demand = the maximum level of demand for a product within a given context
• Current demand = can be measured now (past demand or actual demand)
• Projected demand = can't be measured now; it is a forecast

Types of Markets

• Consumer market: individuals purchasing products/services for personal needs
• Business market: organizations buying products/services for use in making other goods or meeting internal needs (industrial suppliers, consumer goods manufacturers, firms selling to other businesses/municipalities/public organizations, B2B)
• Intermediary market: individuals/organizations situated between the producer and consumers (C2C)
• State market: a market where states act as primary client, through invitations to tender
• International markets: individuals and companies located abroad

Value Creation in Marketing

• Consumers want to emerge as winners from the exchange process and seek added value in the benefit they seek
• Companies create the perfect product value by understanding what their consumers expect in terms of value (functionally, economically, socially, experientially)
• Value = Benefits - costs ($ and non $)
• Successful exchange (between a business offering something and a consumer needing something) creates value, satisfaction, and fosters loyalty, but satisfaction does not mean loyalty

Strategy vs. Tactic

• Strategy is a long-term, global vision; it is how objectives are reached
• Tactics are punctual, specific actions and are short-term, they are how strategies are concretely implemented and are the logical result of marketing mix strategies

Marketing Plan

• A marketing plan is an analytical framework that contains a situation analysis, set of strategies, and an action program
• Marketing plan results from the marketing planning process
• Marketing plan affects the whole company and an integral part of the company's strategic vision or be restricted to a particular sector
• Marketing plan is essential allows management to plan, coordinate, implement, and control actions
• Marketing plan is a “living” tool that should be reviewed cyclically
• PLAN: situation analysis → setting objectives → resources → strategy (S,T,P,D) → marketing mix (4P) → execution → control and backup plan

The Seven Parts of a Marketing Plan

• Analysis of the situation: Where are we and where are we going?
• Setting marketing objectives: Where do we want to go?
• SMART (Specific, Measurable, Attainable, Realistic, Timely)
• Resource allocation: What efforts should we invest in this? (budget, HR, technical resources)
• Deciding on a marketing strategy: Who do we want to reach and how do we want to be perceived?
• Deciding on a marketing mix: How do we want to get there?
• Implementation: (operationalization of the marketing strategy and mix)
• What should we do? (tactical adjustments, team, budget, timeline)
• Control: How do we know if we're going in the right direction?

Importance of Control Step

• The control step allows the company to ensure they are going in the right direction (achieving their goals), and actions match their objectives
• Control is a process, allowing for component changes if the forecast and reality do not match up
• Control also includes a backup plan for the unexpected
• Can change actions, objectives or make backup plan

Ethics in Marketing

• American Marketing Association offers Codes of Conduct
• Examples: product must be safe, have fair prices (no collusion), customer service must deliver consistent quality no matter who the client is
• Advertising Standards Canada: provides a Canadian code of acceptable advertising

Competitive Strategy of the impacts of Business Objectives on the marketing strategy

• Leader is the reference point for a market and is recognized by its competitors
• Competitors behave relative to how the leader behaves
• Challenger: Attacks leader, usually only one
• Follower: smaller market share, seeks to follow leaders tone of strategic moves
• Niche/Specialist: target market segment

Marketing Strategy

• Segmentation: similar groups of products created for similar people with needs(market can, therefore, be divided to improve success)
• Targeting: Segment to target to acquire customers
• Positioning: The place the company wants to occupy
• Differentiation: Ensuring positioning is consistent with the proper product for consistency

Analyzing the Environment

• Analytical processes are put in place in order to describe possibly future events
• Issues identify guidelines for strategy and growth opportunities to help better quality, and therefore better decision making

Internal Environment components of an organization

• Key resources and skills that can contribute to an organization's competitiveness, which are difficult to replicate
• Human capital, financial standing, and information technology
• Current offering of the organization in terms of its resources and capabilities

Past Performance of the organization in terms of its resources and capabilities

• The analysis of past organizational performance can allow for the understanding of its strengths and weaknesses

Business Partners relationship with the organization

• Suppliers, distributors and other actors can either provide help or strengthen and hinder

Negative effects of the organization from a failure or success

• internal factors can create an asset or a liability. The key factors can turn into weaknesses, and conversely strength, through the availability of relevant support

Primary and Support activities for organizational and production management

• Key point of increasing margins and profitability

Efficiency of organization and production management

• Internal Logistics for process management
• External Logistic management
• Market strategy
• Mix aftersales service

Support activities for organizational and production management

• Key point of increasing margins and profitability
• Organization structures and procedures along with human resource management
• Technology and development

Analytical Framework with identification of strengths and weaknesses for organizational and production management

• Benchmarking as a support tool for strengths/weaknesses
• External focus of the micro environment
• Focus outside of just the company
• Influenceable by the business in a semi-controllable environment

The Microenvironment in the context of external factors

• Customers, buyers, competitors

Macroenvironment in the context of external factors

• Influence affects everyone with little to no control
• Political, Economic, Social, Technological, Environmental, Legal (PESTEL)

Political Macroenvironment

• Political factors of economic standards and regulation

Economical Macroenvironment

• Economy strength and performance

Social Macroenvironment

• Societal influence on demographic performance and structure

Technological Macroenvironment

• Influence on new product innovations and launches

Ecological Macroenvironment

• Supply and demand changes

Legal Macroenvironment

• Linked to the political ties in legal procedures

Marketing Strategy and its environment to fulfill a business mission

• Strategy includes analysis of threat, opportunity, strengths and weaknesses
• Internal: Analysis is related to each component of value chain, organization

Internal Analysis for components of value chain

• Benchmarking studies

Vigilance of the organization in external environments

• Focus on factors that could cause an opportunity or threat

SWOT Analysis in its entirety

• Organizational tool for internal and external data collection and influence

Strengths in SWOT

• Internal factors that give the organization an advantage over other companies of competition

Weaknesses in SWOT

• Internal factors that do not give the organization an advantage over other companies of competition

Opportunities in SWOT

• Positive external factors that can improve the performance of the company

Threats in SWOT

• Negative external factors that can harm the performance of the company

Comparing through Benchmarking during SWOT

• Identify the competition and their factors
• Regroup competitors by industry
• Apple vs. Samsung as a case study
• Needs they fulfill between groups of businesses
• Netflix vs movies

Marketing Information Systems(MIS)' role

• Set of procedures for collecting and transferring into relevant ideas for company decisions
• Internal->Secondary Data->Primary Data
• To decide a proper process to a potential managerial question

Internal and external data with Primary and Secondary data differences

• Primary data: specific research
• Secondary data: research from a separate purpose

Marketing intelligence and its definition

• External secondary date in correlation to the company's environment
• Data monitoring of the market

Marketing Research as a concept

• Process of gathering exploratory data to see potential phenomena
• Descriptive Data and Client Description
• Casual relations in data

Data Methodologies in marketing research

• Qualitative -> Interviews, focus groups
• Quantitative -> Surveys
• Experimental -> Causality

Consumer behavior as it relates to marketing

• Critical point of marketing

Understanding a product and its relation to commercial applications

• What the donor/user is using the product for, commercial, public service, etc.
• Consumer selection in an array of concepts

Selection in commercial application and consumer influence

• Individual and group influence.

Internal needs

• Meeting the satisfaction of consumer needs and desires
• Consumers, company and products -> Consumer Data

Customer data as a variable

• Guiding tools and marketing to get the proper data points

A consumer process

• Set of concepts and data that are interconnected

Decisions of consumers

• Consumer in relation to needs

Decision on behavior and consumer needs

• Gap of behavior in its relation to the consumer

Finding the consumers

• Internal and External -> Advice, Reviews, Guides etc

Source Data and information required in terms of consumers in decisions

• Perceived Risks and Purchases, more research leads to finding the right consumer

Purchasing and Monetary decisions

• Functional value of an item, Own Value

A number of viable Alternatives

• Meeting the product target (size, brands, etc.)

Marketing strategy for products in order to the meet needs of consumers in new products

• Search information and change of consumer data is relevant and is necessary

Consumer Attention when purchasing

• Decisive Attributes
• Pay attention to decisions

Main models for the consumer

• Heuristics (mental shortcuts for decision making)
• Purchases are emotional and sensitive
• Passing through variable that buyers have to realize from an emotional variable

Consumer Judgement in marketing

• If a purchase is adequate -> Decision making
• Post Purchases-> Satisfied/Dissatisfied

Satisfaction of consumer in marketing

• Product + Service

Internal Factors of Purchasing Behavior

• Psychology and processing data

Processes and needs

• Motivation is more important -> Energy in all processes
• The 5 Senses that are provided for product selection

Senses in relation to decisions

• Integration
• Mental Categorization
• Positive or Negative state of emotions
• Beliefs->Behavioral Data

Perceptions and Actions

• Beliefs->Behavioral
• Values -> Acceptability and what consumer prefers (terminal goals based on consumption)
• Hobbies
• Activities
• Time

The consumers hobbies

• How a consumer takes to spend their free time.

What are the external factors that influence consumers habits

• Groups of related items which can differ
• Assessments and behaviors are key
• Information seeking relations

Consumers that would want to see information

• Norms and information related to that can be followed accordingly

Types of people in that seek related information

• Aspirational Groups-> Wanting to be a part of groups and what they seek to accomplish

The desire for an image

• Dissociation of group influence
• Generational Influence

Influence of the same set of significant experiences

• Cultural influence with genetic common bonds

Influence culture

• Transmits values

Consumer identification across various levels

• Culture
• Subculture
• What are the consumer's contextual or situational factors in their related behaviors?

State of positive or temporary emotion

• Time to make purchases
• What activities that people plan -> Decor, weather
• Mix the consumers will use and purchase

Different Purchases that exist

• Routine
  • Low and Quick-> Limited Value-> Limited Information
• Average
  • Common Information for most
  • Limited Scope and information-> A little bit difficult
• Complexity - > Harder to understand as a purchase
  • Need to understand
  • Experience to provide and get the right products(more expensive)

Types of Market

• Segmentation is critical for marketing and related information
  • Splits the market into pieces for homogeneous groups
  • Sell Effectively

Product and needs in correlation for consumers

• Benefits for clients when buying and segmenting consumers
• Needs for marketing team when buying and segmenting consumers
• Demographics and their family structure

Variables in Segmenting for Marketing

• Sociodemographic
  • Influences of income, age, and education
• Geographic variable
  • location of consumers
• Psychographic variable

Psychological variables

• Mentalities
• Attitudes
• Values
• Lifestyles Variables

Segmentation

• Behavioral, Volume, and Profit
• Elements in market segments can fluctuate
• VALS framework

Targeting Decisions on profitability

• Size is key
• Intermediatories are effective, as well as distributors

Segmentation

• Growth and profitability is linked
• Growth is what is attracted through a multitude of decisions and products
• Accessibility with cost-effective marketing

Cost of adaptation

• Segmentation based on the costs to make the product
• Targeted segments with marketing influence
• The four main types of targeting are best suited
• Mass marketing involves target as one single unit
• Walmart for scale and volume.

Marketing

Types of marketing segments

• Concentrated = smaller segment
• Broad= More products to target
• Comprehensive or ALL= Company segment adapts
• Everyone gets what they need depending on the volume in consumer decision making
• Niche marketing

Target Market

• Single small markets that the companies target toward, less than 10% usually
• Company becomes the specialist and acquire expertise
• Customized marketing is about adapting to the client with specialized one product use cases

Position of companies and the positioning they want to offer to their customers

• Important decisions with that identity and personality
• Desired decisions and images of the specific brand
• The current cognitive and affective levels of brands that customers recognize.

Level of the customers with brands

• Control over the decisions that the buyer has.
• Real and desired values

Segmentation

• Notoriety means no position
• Brand attributes that drive customers

Positioning Angle and Consumer Benefits for cars, electric

• What are elements inside the brand for customers(positioning)
• Target of customers in relation to competition (Advantages with the market)

Elements of a positioning statement

• Main point of differentiation-> Justifying reasons (special show of no negatives)
• Framework and coherence that is clear
• Values of clients

Value components for clients for marketing

• The correct balance is important (the right item), stable through time with proper marketing

Visible differentiations for competitive advantages

• Distinguishing itself from others
• Perceiving different values on a positive note on attributes

Marketing Products and Service factors

• Quality, technology, repairs, training, customer service, simple to use and easy to access for knowledge

Image and communication with the brands and advertising

• Programs for customer that offer promotions and value from the data -> Loyalty Programs
• Segmenting a new marketing strategy
• Revisions of marketing at all stages of implementations
• Positioning is tied and speaks to the customer for the correct type of campaign
• Repositioning and identifying the brand is also key

Differentation ties for marketing

• Segmentation that can be read