Marketing Fundamentals

Basic Marketing Concepts

• Marketing aims to satisfy consumer needs while achieving the company's profit goals, balanced with societal well-being
• Criticism points toward misleading practices, planned obsolescence, creating unnecessary desires, and using manipulative advertising
• Ethical marketing, regulatory bodies, and legal rules are needed to address unethical marketing practices.
• CSR (Corporate Social Responsibility) has 3 pillars: profits, consumer satisfaction, and social well-being
• There are four product types: desirable, salutary, pleasing, and deficient

Definition of Marketing

• Marketing involves aligning all relevant company activities and processes with consumer desires
• It should consider company goals, especially profit targets.

Markets and Marketing Activities

• Markets are where supply and demand meet, including procurement and sales markets.
• A market constitutes potential customers who seek to satisfy their needs through exchange
• Two perspectives exist on the company-market relationship: Top-Down and Bottom-Up

Top-Down vs Bottom-Up Approaches

• The Top-Down approach begins with the company's resources and identifies markets where these can be successfully applied
• This approach emphasizes advantages over competitors through experience, expertise, and efficiency
• The Bottom-Up approach starts with consumer needs and looks for relevant sub-markets with unmet needs
• Market analysis relies on key figures like market potential and volume, market share (absolute and relative), and business sales volume
• A growth market has a demand exceeding supply, while a saturated market sees high competition

Company Activities in Marketing Management

• It involves planning, managing, and overseeing all company activities aimed at the market
• Achieving success in the market requires themes and constant knowledge of needs and competition
• Setting concrete goals is needed to test efficacy later

Brand Image

• The brand image is key for marketing because packaging, store design, and market entry point for new products will make all offers visible
• Implementation of goals is constantly checked to see if they match demands

Key Marketing Stakeholders

• Multiple marketing approaches are employed for diverse stakeholders like suppliers, employees, competitors, distributors, end customers etc
• Demarketing manages unprofitable or inactive customers by reducing their service/product exposure

Marketing Accountability

• Marketing managers must justify marketing investments via metrics such as profitability and brand value
• CLV (Customer Lifetime Value) assesses a customer's worth to a company, calculating future brand profits with discounting
• Formulas help calculate a customer's lifetime value, including acquisition costs and contribution margins

Consumer Behavior

S-O-R Model

• S-O-R (Stimulus-Organism-Response) model is used for explaining customers behavior
• Controlled stimuli factors involve marketing mixes such as product design or pricing
• Uncontrolled stimuli factors include weather or other people
• Purchase behavior consists of scanner data

Activating Processes

• Activation drives human actions by arousing alertness
• Factors include emotional, cognitive and intensive triggers
• Tonic is daily fixed activation levels whereas Phasic involves short bursts and reactions to a stimuli

Emotion

• Emotion activation judged as pleasant or unpleasant
• Transfers through images, colors and other stimuli rather than words
• Affects recalling information
• Goals involve positive brand memories

Motivation

• Motivation is based on how one needs or wants to fulfil something
• Motives and what they drive to behave in such methods depends on factors
• Emotions play a role as well as cognative decision making

Attitudes

• Attitudes are how one responds to subject and how suitable a product is to be able to fulfil
• Products are placed so one thinks it can provide that fulfilment
• Mostly controls behaviour of being a positive situation to be in.

Measurement

Fishbein Model

• Affective or emotion like "it feels good inside"
• Cognative thought like knowledge to create an affrimate stance

Connecting Activation Emotion Motivation and Attitude

Activation

• The body has internal state and how well it works

Connecting Emotions and the Power They Hold

• Are they unpleasant or pleasant are they derived with activation

Motives and How to Connect this to a Specific Brand

• Motives driven by emotion and is what the brand stands for.

Understanding Communications and its Effects

Communication

• It is found that involvment by consumers needs activation
• Language and imagery is key in building this base with a specific style

What You Know Is Key

• What you know is a filter to this knowledge

What to Consider

• Marketing methods are emotional so is it clear to understand or communicate all areas.

Rational VS Emotional Connection

• Its about understanding how the situation goes to be able to build up a structure of connection

Coginitive Processes

Cog

Recognition of Surroundings

• It is how we as humans create relevance
• This can be subjective and be based on knowledge and activity state

Halo Effect

• Objectivness of what we perceive.

Thinking Patterns and Actions

Distractions

• The way you push a product to get into the mind set.

Important points

A market can change with time and you need to always revalue the marketing techniques your utilizing

Market Research Methods

Study Design

• Exploratory, Descriptive, and Causal designs structured to identify relevant variables

Data Types

• Primary data hasn't already been collected and the secondary data from other sources

Collecting the data

• Relevant info for a population and how the research is being completed

Non-Random

Sampling methods in a study

• Random or has other effects

Scale Values

• Decision on what is relevant to be weighed to make a good product

Collection

Different Collection Methods

• Flexible ideas that can be gathered

Q + A

• Info and the way the team gathers ideas

Scale

• How things end up on a scale for the study

Value and Data

• What that info provides and the data it creates

Key Points on Test

Data Analysis and Testing

Test of Hypothesis

• Used when more than one version of something can be sold

Example Situations

• What occurs to see some thing gain value for use

Test Analysis

• How everything comes together for what was collected in the test

Summary

• Test the process for information collection

Analysis

Types of Analysis

• To group a subject
• Proximity is key (same)

Averages

• Can be obtained from various people and from results

Regression

• Analysis of a theory to work out a good test range.

Attitude and Scale

• Weigh everything to scale up and see where to improve that area to then test to confirm