Marketing Intro & Red Mobile Case Study

Introduction to Marketing

• Marketing involves identifying and satisfying customer's needs and wants to achieve a firm's goals.
• Key components of marketing include advertising, selling, buying, and delivering goods and services.
• Selling transfers goods to a buyer for money or something else of value.
• Salesmanship persuades prospects, using logic and product features to encourage a purchase over competitors.
• The marketing concept focuses on customer needs, while the selling concept focuses on the product.

Red Mobile Case Study

• Red Mobile's initial strategy did not attract many subscribers.
• Red Mobile allowed users access to GSM/EDGE networks to increase market potential since 3G handsets were not yet common.
• In March 2010, Red Mobile promoted unlimited service while maintaining a 50-centavo rate.
• Subscribers reported the CURE UMTS network converting to GSM, resulting in loss of video calling and 3G services.

Marketing Concepts

• Selling concept focuses on the product.
• Marketing concept focuses on customer's needs and wants.
• Selling aims for profit maximization.
• Marketing aims for customer satisfaction.
• Selling adopts a narrow concept.
• Marketing adopts a broader concept.

Marketing Definitions and Importance

• Marketing involves careful planning and execution using state-of-the-art tools and techniques.
• Data is crucial in marketing.
• Advertising is essential for business.
• Focus on finding products for customers, not customers for products.
• Many executives acknowledge marketing's importance.

Core Marketing Principles

• Marketing: "meeting needs profitably."
• Marketing: "the art of selling products."
• Marketing: "communicating an idea to an audience."
• A market traditionally was a physical place, now it's where sellers are the industry and buyers are the market.

The 7 P's of Marketing Mix

• Product
• Promotion
• Price
• Place
• People
• Process
• Physical Evidence
• The marketing mix uses tools to achieve marketing objectives in the target market.
• The four Ps of marketing are product, price, place, and promotion.

Scope of Marketing

• Marketing encompasses goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.
• Marketplace is physical.
• Marketspace is digital, as on the Internet.

Marketers and Prospects

• A marketer seeks a response from another party, the prospect (attention, purchase, vote, donation).
• Both parties are marketers if each seeks to sell something to the other.

Needs, Wants, and Demands

• Needs are basic human requirements (food, air, water, clothing, shelter, recreation, education, entertainment).
• Demands are wants for specific products, with an ability to pay.
• Companies must assess both how many want their product and how many can actually buy it.

Product and Brand

• A product satisfies a need or want: goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.
• A brand comes from a known source (McDonald's).
• Brand image arises from associations (hamburgers, fun).
• Companies aim to build a strong brand.

Channels in Marketing

• Communication channels deliver messages (newspapers, radio, TV, Internet).
• Distribution channels display, sell, or deliver the physical product to the buyer.
• Service channels facilitate transactions (warehouses, transportation, banks, insurance).

Evolution of Marketing: Eras

• Production Era: Focus on product availability and affordability; improve production and distribution.
• Product Era: Favor products with the best quality, performance, and features.
• Sales Era: Products are bought if the company promotes/sells them effectively.
• Marketing Era: Focus on target market needs, delivering satisfaction and surpassing competitors.
• Relationship Marketing Era: Focus is on long-term customer relationships, delivering superior value.

Market Segmentation

• Market segmentation identifies and profiles distinct groups of buyers with varying needs.
• Loyalty status can be: hard-core loyals, split loyals, shifting loyals, or switchers.
• Other types include Geographic, Demographic, Psychographic, and Behavioral.

Buying Motives

• Buying motives can be either product or patronage related.
• They can be either rational or emotional.

The Marketing Mix and the 7 P's in Detail

• Marketing Mix uses 4Ps to achieve marketing objectives in the target market.
• Product: Includes features, advantages, and benefits purchased.
• Price: Refers to pricing strategy and effects on customers.
• Place: Distribution channels.
• Promotion: Activities used to make customers aware.

Additional Marketing Elements

• People: Staff involved in the business.
• Process: Delivering products/services to the customer.
• Physical evidence: Tangible aspects influencing customer perception.

Market Segmentation Bases

• Geographic segmentation: divide market into geographical units.
• Demographic segmentation: consumer wants, preferences, usage rates are associated with demographics.
• Psychographic segmentation: divide groups by lifestyle, personality, values.
• Behavioral segmentation: divide groups by knowledge, attitude, use, or response to a product.

Customer Goods Categorization

• Convenience Goods (Staple & emergency products)
• Shopping Goods
• Specialty Goods
• Industrial Goods consist of raw materials, fabricating materials, installations, and accessory equipment.

Steps in Product Development

• Industry analysis -> ideation -> ideaforms -> research
• Screening -> modeling -> marketing plan -> market testing -> introduction
• Product Mix includes Product Line

Brand Development & Management

• A brand is a name, symbol, or design used to identify a product.
• Brand Identity is how a business wants to be perceived by consumers.
• Components of the brand (name, logo, tone, tagline, typeface).
• Brand Image is the impression of a product held by real or potential consumers.
• Brand Awareness is the extent to which a brand is recognized.
• Brand Loyalty is a pattern of repeat purchases of brands over time.
• A Trademark is an exclusive right to use a brand.

Types of Brands

• Divided by ownership, market area, and the number of products.

By Ownership

• Manufacturer's brand: firm itself brands its products.
• Middleman's brand: wholesalers or retailers brand unbranded products.

By Market Area

• Local brand: limited to a local area.
• National brand: sold/supplied all over the nation.

By Number of Products

• Primary (main) brands.
• Umbrella brands. Secondary brands are an add-on to a popular brand.

Packaging

• Package: physical container or wrapper.

Goals

• Promote a company and its image.
• Give an old product a new image.
• Preserve the product for a time period.
• Help customers product use.
• increase sales and profits

Functions of Packaging

• Protection against humidity, puncture, damage
• Childproof, sealed tops, tamper-proof
• Contains the product
• Kinds of packaging includes family packaging, reuse packaging, multi packaging.

Levels of Packaging

• Primary: direct container of the product.
• Secondary: protection of primary package.
• Shipping: storage and shipping container.

Label Element

• The label is the means to present information.

Label Characteristics

• Persuasive
• Informational

Types of Labels

• Brand label
• Descriptive label
• Grade- judged quality

Types of Brand Names

• Descriptive: readily convey the service or product.
• Evocative: employ suggestion and metaphor.
• Invented: fanciful fabrications, distinctive.
• Lexical: are related to wordplay.

More Brands

• Acronym: are straightforward, utilitarian purpose.
• Geographical: brands tied to regions.
• Founder: Brands named for people, a tradition.

Product Differentiation

• Form: physical attributes like size, shape, or structure.
• Features: characteristics that supplement the product’s basic function.
• Performance quality: the level at which the product’s primary functions operate.
• Conformance quality: degree to which produced units are identical.
• Durability: expected operating life under normal conditions.
• Reliability: probability that a product will not malfunction.
• Repairability: measure of the ease of fixing a product.
• Style: the look and feel aesthetics
• Design: incorporates all qualities for manufacture, distribute, easy use to to consumers.

Service Differentiation

• Critical to success in competitive markets.

Components

• Ordering ease.
• Delivery speed, accuracy, customer care
• Installation service
• Customer training. Helps them use equipement.
• Customer consulting.
• Maintanence and repair services.

Other Forms of Differentiation

• Personnel: well-trained personnel exhibit competence, courtesy, credibility, reliability, responsiveness, communication.
• Channel: better trained dealers, more locations.
• Image: how the public perceives the brand or product.

Price

• Value for something.

PRICE definition

• Price: value of money on a good or service.
• Factors that affect price include.
• Supply and demand.
• Brand loyalty, income, substitutes, luxury, costs, competition, etc.
  • The series of businesses
    • involved in selling or distributing your product, Competition
    • AND Price wars in certain sectors – airlines, gasoline, computers, etc.

Determining Price: Six Steps

• Determine pricing objectives.
• Study costs.
• Estimate demand.
• Study competition.
• Decide on a pricing strategy.
• Set price.

Importance of Price

• Seller: revenue.
• Consumer: cost.

Pricing Approaches

• Cost-led pricing - most common pricing mechanism.
• Competition-led pricing.
• Customer-led pricing.

Objectives of Pricing

• Profit oriented.
• Sales oriented.
• Status quo.

Pricing

• Introductory, skimming, penetration, etc.
• Psychological Pricing Policies involve fixed prices or variable prices
• Fixed - everyone pays the same price.
• Variable- price changes on customer.
• Odd-price policy- set prices at small increments

Policies of Geographical Pricing

• F.O.B. point of production: buyer selects transport mode and pays freight.
• Freight equalization: same delivered price regardless of locations.
• Zone pricing: prices increase as distances increase

Formulas

• Mark-up: the amount added to the cost price of goods to cover overhead and profit =SELLING PRICE-COST

Production Costs

• Cost Of Ordering : included in economic order quantity
• Cost Of Production: raw materials, labor, overhead, taxes, loyalties, general costs

Discounts

• Quantity: The more you buy, the cheaper it becomes-cumulative and noncumulative.
• Trade: reduction from list for functions performed-storage and promotion.
• Cash: deduction granted to buyers for paying costs

Place (Distribution)

• Middlemen promote goods to consumers on behalf of producers.
• Trade channels distribute product from producer to end consumer.

Classification is as follows

• Direct: producer sells directly to customer.
• Indirect: uses intermediaries.

Types of Intermediaries include

• Merchants (wholesalers, retailers)
• Agents (brokers, representatives)
• Facilitators (transportation, banks)

Market Exposure Types

• Exclusive distribution: protected territories to dealers.
• Selective distribution: limited number of outlets.
• Intensive distribution: use of all appropriate outlets.

Concepts

• Retailing: selling to ultimate consumers.
• Wholesaling: involves selling to those buying for business use.

Market Division

• Large scale retailers- large sales volume, inventory size,capital investment, and physical size of outlet, specialization and division of labor.
• Small Scale retailers-flexibility of operations in terms of merchandise selection, services offered and store design.

Product Line Division

• General merch stores - variety of product lines
• Limited line store - only one or related product items.

Ownership

• Corporate chain stores: centrally owned and managed.
• Independent retailer -self-service methods, improve store appearance and lay-out, better location, and improved inventory-control.

Method of Operation

• full-service retailing.
• Supermarket retailing
• Department retailing
• Non-store retailing