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• Marketing: Activity, institutions, and processes that create, communicate, deliver, and exchange offerings of value.
• Marketing also involves collaboration with suppliers and learning from customers.
• "Marketing Mix" commonly refers to the 4P's

Traditional 4 P's

• Product: Goods and services created.
• Promotion: Communicating with the target audience.
• Place: Point of sale.
• Price: Monetary value of a product.

Marketing Mix

• Combination of product, price, place and exchange.
• The components are nouns that fail to capture all activities of marketing.

Value

• Benefits buyers receive that meet their needs when consuming an offering.
• Value = Benefits received - (Price + Hassle)

Marketing Concept

• Philosophy underlying all marketing, focused on satisfying consumer needs.
• Firms following this philosophy are market oriented.

Production Era

• From the 1800s to 1920s, companies were production oriented.
• The focus was on reducing production costs as the best way to compete.

Selling Era

• 1920s to post-WWII, companies were selling oriented.
• Heavy advertising and selling were used to push products.

Product Era

• Post-WWII, demand increased, and companies focused on product innovation.

Marketing Era

• Emerged around 1950-1990, leading companies to find new ways to compete.

Modern Eras

• Value era: Companies focus on customer value.
• One-to-one era: Building individual customer relationships.
• Transformative era: Transforming companies to meet customer needs completely.

Company's Offering

• Goods, services, and price, forming a bundle for customers.
• Marketing entails ensuring new products deliver value.

Delivering

• Getting the product to the consumer for maximum benefit.
• Involves the supply chain.
• Logistics: Managing the physical flow of materials in the supply chain.
• Exchange: The transaction.

Who Does marketing

• For-Profit companies use marketing to promote and sell products/services.
• B2C: Directly to consumers.
• B2B: To other businesses
• Nonprofits use marketing to achieve their missions.
• Marketing for nonprofits is called nonprofit marketing.
• Individuals promote themselves via résumés, LinkedIn, and interviews
• Self-promotion is a form of Marketing.

Why Study Marketing

• Marketing facilitates transactions and improves quality of life.
• Careers in marketing are diverse but face criticisms like false advertising.
• Marketing can enhance a company's reputation and societal impact.

Marketing Plans

• A document communicating the marketing strategy.
• Understand customers wants, needs, and value, then develop and test products and services.

Delivering Value

• Planning production and distribution. Communicating value means making customer aware of the product.

Refining Plans

• Adjusting based on feedback, competition, and market changes.
• Marketing has shifted from static to dynamic because of digital information, ethics, service, metrics, and global environment.

Value Proposition

• Concise statement summarizing the key benefits to target audience.
• Answers "Why should I buy from you?" and is supported by company strategies.

Strategic Planning

• Resources are allocated based on marketplace opportunities.
• Involves situation analysis, mission statement, value proposition, and strategies.

Situation Analysis

• Assessment of internal and external environments. A situation analysis leads to SWOT analysis.

Internal Environment

• Strengths can capitalize on opportunities.

External Environment

• Tracking conditions, including economic, demographic, and technological factors.

Analyzing Competition

• Analyzing both direct and indirect competition for the consumer's resources.
• Involves understanding strengths, weaknesses, image, and resources of competitors.

Competitive Analysis

• Gathering competitor info like financial statements and news.
• Mystery shoppers observe service and cleanliness.

Other factors include

• Potential entrants, supplier power, buyer power, and substitute products.
• Organizations adhere to government regulations.

Economic Environment

• Impacts spending through inflation, unemployment, and interest rates.

Demographic and social environment

• Includes trends, age, income, and culture that are constantly changing.

Technology

• Changed how firms communicate, including AI and mobile phones.
• Natural Resources include Green marketing and sustainability.

Organizational Objectives

• What organizations want to achieve in a timeframe.
• Should be realistic, measurable, and motivate employees during action.

Strategies

• Means to achieve objectives and maintain competitive advantage.
• Tactics: Specific actions like coupons and ads.

Marketing Plan

• The strategic plan at a working level within a company which allocates resources.

Market penetration strategies

• Focus on increasing sales of existing products to existing customers through promotions.

Product Development Strategies

• Creating new products for existing customers through innovation or extensions.

Market development strategies

• Focus on new markets with existing products, such as exporting.
• License: is selling the right to use production items, trademarks, or patents
• Franchising: longer-term version of licensing

Contract Manufacturing

• Hiring manufacturers in other countries.

Joint Ventures

• Combining expertise and investment to enter foreign markets.

Direct Investment

• Owning a facility overseas, this gives the most control, but is also the most risky.

Diversification strategies

• Entering new markets with new products, often by acquiring other businesses.

Strategic Planning Occurs

• Corporate-level plans are for the entire corporation.
• Business-level plans are for strategic business units (SBUs).
• Functional-level plans are for departments like accounting and marketing.

Portfolio Planning

• Group of business units owned by a firm.
• Evaluating each unit based on market growth rate and market share.
• SBUs can be categorized into stars, cash cows, question marks, and dogs.

General Electric (GE)

• Examines business' strengths and industry attractiveness.
• High(green) means build market share and invest in new products and tech.
• Medium (yellow) means hold market share Low (red) means harvest or stop investing.

Planning Roles

• Chief Marketing Officer (CMO) is responsible for the marketing plan. Includes an executive summary and a mission statement.
• Should describe the market segments and company status along with collaborators and competitors.

Value Proposition and Strategy

• The strategy, offering, and communication methods. Includes a budget.
• Determine Market Potential for particular product category for the time period of interest
• Determine Sales Potential based on total revenue generated
• Judgment and Survey Techniques rely on someone's estimate like customer and channel surveys.
• Time Series Techniques - Forecast on the rate of change for previous time periods.
• Exponential smoothing - Weights more recent periods of time more heavily than more distant periods of time.

Correlates and Other Models

• Correlational analysis estimate based on trends of other variables
• Leading indicator correlate that occurs before the variable Being Forecaster
• Market tests: launch new offering on new markets

Forecasting

• Track actual results and adjust the number produced
• Causality: relationship between two variables whereby one a direct consequence of the other
• Control allows you to separate the effects of a variable on a consequence, can be managed or eliminated.

Marketing audit

• A "snapshot" of an organization's marketing strategies.
• Fidelity - the degree of implementation. Marketing creates value through creating, communicating delivering and exchanging.

Seven P's

• Value Proposition, Positioning, People, Promotion, Place, Product, and Price
• STP: Segmentation, Targeting, Positioning allocates resources better in the selling market

Mass marketing

• The predecessor to targeted marketing. Ignores market segment differences and appeals to the mass.

Segmenting Markets

• Avoid direct competition while focusing on a profitable revenue target.
• Retain "at-risk" customers so they do not defect to competitors.

Segmentation Strategy

• Retain existing customers as much as possible
• Customer preference and behaviors improve loyalty - social media and analytics help gather the data.

Segment Bases

Classify multiple base buyers to get the bigger picture

• Benefits sought from product
• Usage (Daily vs holiday use), Buyer's status - is a user regular or not, total revenue. ○ CLV = Σ(R)L sum or revenue over lifetime

Multiple Data Points for Segmentation

• Demographic, Geographic, Psychographic
• Activities, Interests, Opinions, Values, Attitudes according to VALS.
• B2B (company size, profit margin)

How Markets are Segmented

Target an attractive market that isn't crowded.

• It must be accessible with enough resources to invest in the marketing strategies.
• Multisegment marketing - can allow firms to respond to demographic changes in other markets

Concentrated Marketing

Risky strategy because it can have all of it's eggs in one basket.

• Niche markets: target even more consumers
• Micro targeting is using personal information to personalize data communications.

Positioning and Repositioning

How consumers perceive a product relative to its competition.

• How consumers perceive a product relative to its competition is positioning. An effort to reposition moves a product to a different place in to the consumer's mind.

Consumers

• Considers the many personal, psychological, and social reasons why people shop for products, buy and use them, and dispose of them.

Advertising

• Appears when webpages when online searches are conducted. Includes situational, personal or psychological factors.
• Physical location, social situation, budget, mood, gender, age, and cognitive age all affect purchase decisions.

Attitudes

• Values, lifestyles and opinions of consumers using demographics.
• Social factors, culture, class, family, and influences are societal factors.

Perception

Filtering out information based on how relevant it is to you

• Rewarding to the user encourage future repeating of positive behavior. Includes operant and instrumental conditioning.

Low-involvement decisions

• Products that have low price tags or carry a low risk

High-involvement decisions

• Carry high price tags that cause a lot of risk. This leads to an increase in the amount of data collected before making the decision. Includes a decision about if you want to purchase.

6 Stages of buying process

• Need recognition, search for information, produce evaluation, product choice and purchase, post purchase use and evaluation, disposal of the product.
• When experiences of users don't align with expectations problems arise.

Obsolete Products

Effort Companies made to ensure periods of time until that product is obsolete and/or unusable.

B2B Marketing

• Companies work with each other towards goals. Products that are produced by other companies
• Involves resellers and value added products (VARS). Also governments , non-profits and institutions.

Decision centers

• Companies within the products that make purchasing goods and products. Need to be aware of changes in the supply and products.

Buyers

• Initiate purchases and are users the same product. "Gatekeepers" decide if and when sellers are given access. Ultimately the "Decision Maker" finalizes decisions.

B2B Marketing

• Recognized need turns in to qualified and requested proposals
• Proposals are evaluated with vendors listed. They follow compliance codes.

Websites

• Sell-side, buy-side, or btb exchanges. Utilize "e-commerce"
• Follow regulations with "ethics codes" administered by "Chief of Ethics".

Ethnography

• Quality research used to study people and culture within the natural environment.

Data

Can make a profile to determine best practices

• "Big Data" can be acquired through online ads, and is best managed with a clear marketing information system.
• Analyze the data to make critical decisions and stay on top of the markets through research.

Agile Marketing

• Using data / analytics to identify and conduct short tests for potential solutions.

Problem

• Research objective, goal that research is supposed to accomplish. Research is outlined through Company's internal records.

Exploratory Vs Descriptive Research

• Less structures vs used to gather "hard number" figures. Scanner based etc.

7 steps to follow

• Design, create and test the information forms, determine your population (Sample), collect the data, Analyse the data (data cleaning , validity), write what you are thinking.
• Validity - the degree to which study tests what studies.
  • Reliablity - Degree to which survey get a reasonable answer.
  • Products are tangible goods which a benefit and/or feature.

Tangible Product Benefits

The TCO of a product or intangible offerings. Customer "touchpoints" and "experiences" create customer surveys. Utilize the RATER Model to focus marketing efforts on key segments in the services market.

Reliability

Provide quality product that consumers can trust.

Service models

Can be dominant, service-oriented or service dominated depending on service delivery. Offer core product features and upgrade them with other features.

Segmentation

• Dividing a market into subgroups of consumers based on shared characteristics or needs.

Product line

• Group of selling names that are simple to find and use. Line breadth is the # of products offered by line extension while line depth is the # of variations.

Consumer Offerings

• A consumer category that falls into 4 general categories with low price and shopping efforts.
• Products can sit in different demographics depending on price point. In addition a product can be manufactured or raw

Businesses

• OEM is used to manufacture from another company directly without much added material. Operations run in the order below.
  • Facilitary offering - brand, labeling.
  • Brand promise - the value a company makes the product with.
  • Brand Equity - the value for the good or liabilities.

Management

Helps identify with other manufacturers to identify their strengths and market positions. Helps determine prices.

Pricing Strategies

• Skimming, Penetration. Tutorial note 5 will identify product categories.