Marketing Fundamentals

Core of Marketing and Strategic Implementation

• Marketing involves discovering and satisfying needs/wants through value creation/exchange, beyond just selling or advertising
• Marketing is vital for business success

Delivering Customer Value

• Main objective of marketing is discovering and satisfying customer needs and wants through the concept of exchange
• Marketing strategies are influenced by the organization, its departments, alongside societal and environmental forces, which should be guided by a clear mission and objectives

Requirements for Marketing

• The presence of two or more parties with unmet needs is a condition for marketing
• Parties must have a desire and the means to fulfill these needs
• Communication is key
• Existence of something of value for exchange

Discovering and Satisfying Needs

• Overcoming the difficulty of customers not being able to articulate needs is a challenge
• Successful marketing pinpoints consumer benefit, using the lessons of past mistakes
• Differentiating needs (necessities) from wants (desires shaped by culture) is essential with marketing turning needs into wants by adding value

Strategic Marketing Process Overview

• Achieves marketing goals by using resources effectively to meet customer needs
• Involves planning, implementation, and evaluation

The Planning Phase

• Situation Analysis (SWOT) assesses internal strengths/weaknesses alongside external opportunities/threats
• Market-Product Focus and Goal Setting includes segmentation, targeting, and positioning
• Marketing Program Design is all about product, price, promotion, and distribution strategies

The Implementation Phase

• Obtaining Resources: securing financial, human, and material resources
• Designing the Marketing Organization: establishing an efficient structure for the marketing plan
• Defining Tasks and Responsibilities: clear assignments with deadlines
• Executing the Marketing Program: implementing strategies through campaigns and activities

Essential Marketing Concepts

• Profit is the financial gain after expenses.
• Strategy is the long-term plan for customer experience.
• Core Values and Mission guides organization.
• Organizational Culture are the shared values within the company.
• Goals and Market Share involves the firm's position relative to competitors.
• Marketing Plan and Dashboard maps out performance monitoring tools.
• Metrics and Analysis are the quantitative measures for evaluating actions.

Market Segmentation

• Requires dividing a broad market into subgroups with shared characteristics for more effective efforts

Understanding Consumer and Organizational Buying Behavior

• Consumer behavior encompasses actions during purchasing/using products, including mental and social processes

Sociocultural Influences on Consumer Behavior

• Social class groups individuals based on shared values, driven by the likes of occupation and education
• Upper, Middle, and Lower are the main social classes
• Family Influence: Children learn habits from adults
• Traditional families only make up 20% of households
• Spouse-dominant/Joint describes family decision-making

Family Member Roles

• Roles in family decision-making are information gatherer, influencer, decision-maker, purchaser, and user

Culture and Subculture

• Culture: Shared values and ideas
• Subcultures have unique buying patterns

Hispanic Buying Patterns

• Quality and brand-conscious is key
• American-made products are preferred
• Family and peers are a big influence
• Advertisements are credible
• Convenience is less important

African American Buying Patterns

• Focus on boys' clothing, rental goods, smartphones, and audio equipment
• Women spend more on health/beauty
• Price and quality-conscious, with income disparities

Asian American Buying Patterns

• Most are immigrants under 30 years
• Have a strong emphasis on hard work, family, and education

Psychological Influences

• Motivation and Personality is key
• Maslow's Hierarchy of Needs: Physiological, safety, social, personal, self-actualization
• Personality traits: assertiveness, extroversion, compliance, and dominance

Perception

• Selective perception is filtering info through biases, focusing on exposure, comprehension, and retention
• Subliminal perception occurs at a subconscious level

Learning

• Behavioral learning is developing responses through repeated exposure, consisting of drive, cue, response, and reinforcement
• Cognitive learning links ideas together

Values, Beliefs, and Attitudes

• Attitudes form from learned responses
• Beliefs come from personal experiences

Lifestyle

• Lifestyle Analysis (Psychographics): segment consumers based on time/resource allocation
• VALS Types: Thinkers/Believers (ideals), Achievers/Strivers (achievement), Experiencers/Makers (self-expression)

Consumer Purchase Decision Process

• Problem Recognition: identifying a need or problem
• Information Search: seeking internal and external value
• Alternative Evaluation: assessing options
• Purchase Decision: making assessment-based decisions
• Postpurchase Behavior: is evaluating decisions and determining satisfaction

Involvement Levels

• High Involvement (Extended Problem Solving): complex decisions
• Medium Involvement (Limited Problem Solving): moderate complexity
• Low Involvement (Routine Problem Solving): minimal effort

Situational Influences

• Influences include the purchase task, environment, and temporal effects.

Organizational Buying Behavior

• Key Characteristics: Derived Demand
• Organizational demand driven by consumer demand

Buying Objectives

• Objectives include profit maximization, ethical partnerships, and efficiency

Buying Center and Process

• Roles Include: Users, influencers, buyers, deciders, and gatekeepers

Buy Classes

• New Buy: involves a major decision by many people over time
• Straight Rebuy: it's routine, with few people and short time
• Modified Rebuy involves minor changes and moderate time frame

Business-to-Business Marketing

• E-marketplaces: platforms for exchange.
• Online Auctions include traditional and reverse.
• Bidders compete to buy from a single seller during a traditional auction
• During a reverse auction multiple sellers compete to fulfill the needs of a single buyer

Ethical and Social Responsibility

• Corporate Culture and Expectations involves ethics codes/officers

Personal Moral Philosophy

• Moral Idealism: universal principles
• Utilitarianism: actions judged by their ability to provide the greatest good for the greatest number

Social Responsibility

• Profit Responsibility maximizes profits for stockholders
• Stakeholder Responsibility has obligations to all parties affected
• Societal Responsibility focuses on environmental and societal contributions

Sustainable Development

• Balances environmental protection with economic progress that can improve word-of-mouth and outperform

Summary

• Consumer behavior is shaped by sociocultural, psychological, and situational factors
• Knowing these things lets marketers create strategies that meet the demands of consumer groups while being ethical and socially responsible

Marketing Research and Global Strategy

• Demands understanding research methodologies and market strategies

Importance of Marketing Research

• Essential for understanding consumer demand and reducing risks
• Movie industries use extensive research

Five-Step Marketing Research Approach

• Define the Problem: Set goals and determine success measures
• Develop the Research Plan, setting time and cost limits
• Determine Data Collection Methods so you can distinguish concepts from collection methods
• Sampling applies statistical inference
• Collect Relevant Information which is either Primary or Secondary data
• Develop Findings using data visualization
• Take Marketing Actions with implement recommendations and evaluate

Data Collection Methods

• Secondary Data saves time and money
• Disadvantages of Secondary Data is that may be outdated/not specific enough
• Primary Data includes observational and questionnaire data.
• Observational relies on mechanical/neuromarketing methods
• Questionnaire Data relies on individual interviews/focus groups

Data Analytics and Data Mining

• Data analytics involves deriving insights from analyzed data
• Data Mining discovers patterns
• Predictive Modeling uses statistical algorithms

Global Dynamics

• Economic Protectionism has national governments shielding industries via tariffs, quotas
• Ethical issues surround protectionism policies

Economic Integration

• European Union (EU) integrates countries, includes euro
• United States-Mexico-Canada Agreement(USMCA) updates NAFTA

Global Companies

• International Firms markets products without differentiation
• Multinational Firms customizes for different markets
• Transnational Firms combines global efficiencies with local responsiveness

Global Consumers

• Segmented based on universal needs, exhibiting similar purchasing behaviours that are available through standardized products

Market-Entry Strategies

• Strategies are Exporting, Licensing, Joint Ventures, and Direct Investment
• Each varies in commitment, risk, and control

Cultural Considerations

• Cross-Cultural Analysis analyzes cultural similarities and differences
• Values, customs, symbols, and language are important
• Cultural Ethnocentricity favors domestic products
• Political Stability impacts trade

Economic Factors

• Economic Infrastructure is the quality of transportation, comms, finance
• Consumer Income and Purchasing Power influences potential
• Currency Exchange Rates impact comparative prices
• The case study involves Carmex Social Media Programs

Metrics for Evaluation

• Conversation Velocity measures mention rate
• Share of Voice measures brand presence
• Sentiment Analysis assesses positive/negative mentions

Sales Forecasting Techniques

• Judgment-Based Forecasts relies on experts
• Surveys collects prospect opinions
• Statistical Methods predicts from data patterns

Product and Promotion Strategies

• Product Extension is selling the same in multiple countries
• Product Adaptation modifies for markets
• Communication Adaptation adjusts messages
• Dual Adaptation adapts product and strategy
• Product Invention develops new products