Marketing Fundamentals

Introduction to Marketing

• Marketing involves creating, communicating, delivering, and exchanging value for customers and society

Four Components of Marketing

• Creating
• Communicating
• Delivering
• Exchanging

The Traditional Four P's of Marketing

• Product
• Price
• Place
• Promotion

The Modern Seven P's of Marketing

• Value Proposition
• People
• Promotion
• Product
• Place
• Price
• Positioning

Value Proposition

• Balancing benefits, price, and effort
• It must meet the buyer's needs

Positioning

• How an offering compares to others in the marketplace

Ways to Go to Market

• Production orientation focuses on mass production at a minimum cost, and gave rise to the production era
• Selling orientation uses persuasion to convince consumers and raise sales, and price was most important which gave riseto the selling era
• Product orientation focuses on customer's needs and satisfying the customer

Marketing Eras

• Value era emphasizes creating value for customer
• One-to-one era focus on building relationships with individual client
• Transformative era focus on serving customer with companies and products more completely

Value Proposition Defined

• A succinct statement of why consumers buy a brand

Positioning Defined

• How your product differentiates your product, in the customers mind.
• Good positioning is compelling and differentiated

Promotion Defined

• Creating awareness for your product or service

Promotion Tools

• Advertising on the web, TV, billboards, or magazines
• Product placement in movies and on TV
• Social Media
• Earned Media
• Event Marketing
• Sponsorship

Product or Service Defined

• Any item or service that is sold to satisfy buyers want, need, or both

Brand Defined

• A unique name/image for an offering that promises a significant and differentiated benefit in the customers mind

Brand Benefit

• A marketer can command a higher price and/or deliver more volume than competitors

Place (or Distribution)

• Delivering an offering involves:
  • Getting the product into the hands of the user
  • Ensuring the user understands how to use the product
• Value is delivered through a company's supply chain
• Logistics involve the transportation and storage of materials and products

Why Marketing is Important

• Everyone uses some form of marketing, even individuals (resume, clothing, LinkedIn profile)

Career Opportunities in Marketing

• Branding
• Pricing
• Customer satisfaction
• Public relations
• Strategy
• Marketing research
• Merchandising
• Sales
• Advertising
• Product development
• Direct marketing
• Digital media
• Event marketing
• Non-profit marketing

Strategy Defined

• How you get what you want
• Starts with objective setting

Marketing Strategy

• Objective involves turning people in your target group into customers/consumers

Developing a Marketing Strategy

• Consider the external (Secondary and Primary Research)
• Consider the internal factors (Secondary and Primary Research)

SWOT Analysis

• Strengths and weaknesses are internal
• Opportunities and threats are external

Assessing the Internal Environment

• Companies should use their strengths to capitalize, and must refer to objectives and trends to better understand consumers and succeed

Internal SWOT Analysis

• Strengths consist of finances and market position
• Weaknesses consist of poor product awareness and weak facilities

Assessing the External Environment

• Involves tracking the macro like economic factors and micro environment like competition
• Opportunities consist of global markets

External SWOT Analysis

• Threats consist of economic contractions

The Competitive Environment

• Includes potential new entrants and buyer's/supplier's

Competitive Analysis

• It helps determine direct competitor's strengths/weaknesses, image, and resource
• According to Porter's Five Forces, substitute products, potential entrants in the marketplace, the bargaining power of suppliers/buyers should be considered

PESTEL Analysis

• Political like government activity
• Economical like GDP
• Social like cultural factor
• Technological like infrastructure
• Environmental like consumption trends
• Legal like regulations

The Political and Legal Environment

• All organizations must comply with government regulations

Competitive Analysis

• Economic factors include unemployment and interest rates
• Inflation occurs when the cost of living continues to rise

The Demographic, Social, and Cultural Environments

• Constantly changing the global marketplace

Technology

• Changes the way people communicate
• Organizations must adapt to new technologies.

The Competitive Environment

• Green marketing not only helps the environment but also saves the company money

Marketing Plan Defined

• A comprehensive document designed to sell your plan, provide details, and ask for feedback

Executive Summary

• This should provide a brief objective

Objectives

• What is the objective of the firm/project

Research Findings & Methodology

• Detail proof points for facts

Promotion Defined

• Defining the promotional tools needed

Value in Marketing

• In 2007 the AMA added the word "value"

Define Marketing Strategy

• Turning people in your target group into customers

Define Types of Segmentation

• Marketing Segments involve dividing people depending on the group's product need
• Targeting Segments involve selecting market segments
• Positioning involve customer preferences when buying

Types of Segmentation Bases

• Behavioral (What benefits do customers want?)
• Demographic (Profile of customers)
• Geographic (Where are customers located?)
• Psychographic (What do our customers value?)

Segmentation by Behaviour

• Segmentation through consumers who buy products

Segmentation by Demographics

• Segments commonly done because the data is available

Segmentation by Geography

• Geographic segmentation divides buyers by where they are located

Segmentation by Psychographics

• Focus on consumer attitudes

The VALS Types - Values & Lifestyles

• Innovators are sophisticated and take-charge people
• Thinkers mature, satisfied, comfortable, and well educated
• Achievers are goal oriented, conservative, and stable
• Believers conservative, conventional, and believe in established codes
• Strivers trendy and fun loving
• Makers are practical
• Survivors has few resources and is low motivation

Segmentation in B2B Markets

• There are fewer behavioural segments in B2B versus B2C markets for 2 reasons:
  • More B2C markets
    • Business segments include Price focuses
    • Quality and Brand focus
    • Service Focused
    • Partnership focusses

Targeted Marketing vs Mass Marketing

• Targeted marketing is now known as differentiated, the opposite know as undifferentiated

What is Targeting

• It is the direction of efforts to gain a specific consumer base

Pro's of Targeting

• Is Efficient
• Leads to higher customer acquisition
• Helps successful companies manage resources

Keys to Successful Targeting

• Is operating cost efficient
• Growing
• Not already taken by competition
• Accessible

Schools of Thought

• 1 school targets the firms current customers, while the other targets new customers

Factors for Growth

• Sales
• 2 kinds of new customer

Positioning

• How consumer perceive to competition

Segmentation

• A roadmap to provide details on the project you are working on
• Marketing creates values, but does not create new products

Positioning Involves

• A tagline

Marketing Plans

• Starts with SegmentationAnalysis, then a targeting strategy
• Helps achieve the statement

Consumer Behavior

• This analyses peoples reasons for buying goods and liking certain brands
• It covers personal, situational, psychological, and Social Factors

Situational Factors

• Store location and layout
• Physical Factors such as climate
• The consumers mood

Time

• The right product, at the right time

Consumer Mood Can Affect Buying Patterns

• People's economic situation affects what and how much they buy

Economic Situation

• Concerns peoples financial status

Demand During Pandemic

• High increase in demand in some industries and low demand in others

Personality

• The Big Five" Personality Traits
  • Openness
  • Conscientiousness
  • Extraversion
  • Agreeableness
  • Neuroticism

Personality

• Consumers act in a way that meets their self-concept and how they value themselves

Gender

• Womens shop till you drop, mens like to save time and money

Age

• Consumers also buy goods based on both their chronological age and cognitive Age

Lifestyle

• Can be predicted using questions

Motivation

• It is the inward drive people have to get what they need

Maslow's Hierarchy of Needs

• Includes safety and phyciological
• Perception - filtering out irrelevant information

Attitudes

• Can be achieved building on mental feelings

Societal Factors

• Includes culture

Social Class

• People group with similar social and econimic status

Family

• Can affect customer buying habits

Involvement in Buying Decisions

• Factors include
• Routine purchase
• Low/High prices

Stages in the Consumer's Purchasing Process

• Need recognition
• Information search
• Product Evaluation and choice
• Product Evaluation
• Disposal

Post-purchase dissonance

• That occurs if customers end up being dissappointed

Business Customers are Different From Consumers

• Can be more customisable

B2B

• Business market in large quantities, unlike consumer markets

Marketing

• The analysis of large B2B markets