Marketing Key Concepts and Evolution

Marketing Key Concepts

• Marketing is the performance of business activities that direct the flow of goods and services from producers to consumers.
• Also involves the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.
• Marketing is an organizational function and a set of processes for creating communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Evolution of Marketing

• Production period (1890s - 1920s)
• Sales period (1920s - 1950s)
• Marketing period (1950s - 1980s)
• Societal marketing period (1980s - Present)

Adding Value

• Brands add value to persuade customers to choose their product over others.
• This is often done by adding features, loyalty schemes, or emphasizing luxury.

The 4Ps of the Marketing Mix

• Product - what is being sold/offered.
• Place - location of the product.
• Price - cost for the customer.
• Promotion - strategies to stand out from competitors

Extended Marketing Mix

• People - individuals involved in the process.
• Process - focused on customer service.
• Physical evidence - evidence to show growth (e.g., target audience reach)

Marketing Relationship with Society

• Marketing exchange process = when the organization takes something of value from customers, giving value in return (e.g., university exchange money for education).
• Changing to a relationship-focused approach.

Marketing Strategy and Analysis

• Corporate strategic planning drives marketing strategy.
• Situational analysis is a critical component of strategic marketing planning.

Environmental Scanning

• Process of collecting, analyzing, and interpreting information about an organization's external environment.
• Sources include media, industry reports, government reports, marketing intelligence reports.

Internal Analysis

• Analyzing portfolio (e.g., Stars, Question Marks, Cash Cows, Dogs) helps compare market growth rates and relative market share.
• Value chain analysis identifies sub-activities for each primary and support activity, analyzes value and cost, and identifies competitive advantages.

Porter's Five Forces

• Analyzes competitive forces within an industry to understand intensity of competition and profitability.
• The five forces include competitive rivalry, threat of new entrants, bargaining power of suppliers, bargaining power of buyers, and threat of substitutes.

SWOT Analysis

• Identifies an organization’s strengths, weaknesses, opportunities, and threats.

Consumer Behaviour

• Study of how individuals or groups select, purchase, use or dispose of products, services, ideas, or experiences.
• Needs vs Wants (pyramid structure): Physiological, safety, love/belonging, esteem, self-actualization.
• Consumer proposition acquisition processes: motive development, information gathering, proposition evaluation, proposition selection, acquisition/purchase, re-evaluation.

Attitudes (ABC Model)

• Affect (feelings)
• Behavioural (intentions)
• Cognition (beliefs)

Effects Models

• Standard learning hierarchy (cognition -> affect -> behaviour).
• Low-involvement hierarchy (cognition -> behaviour -> affect).
• Experiential hierarchy (affect-> behaviour -> cognition).

How do brands enter the mind of consumers?

• Through perceptions, learning and memory.
• Advertising messages affect this entry

The Self-Concept in Marketing

• Consumers use consumption as a means of expressing identity.
• The self-concept summarizes beliefs and evaluations of one's attributes.
• Products can be bought to highlight or hide aspects of an individual's self.

Multiple Selves

• People play different roles in various situations.
• Our social environment can influence how we see ourselves.

Symbolic Consumption and Self + Product Congruence

• Symbolic meaning is attached to products.
• Symbolic meaning is used through product selection.
• Products can be selected based on emotional response or rational needs.

Predicting and Dictating Trends

• Predicting trends in consumer behaviour and preferences.
• Helps in market segmentation and target marketing

Segmentation and Target Marketing

• Separating consumers into groups to identify likely buyers of a product.
• Helps boost sales and appeal to individual customer needs.

STP Process

• Market segmentation, target market, brand positioning
• Helps identify similar groups of customers as a target market.

Segmentation Criteria

• Behavioural, psychological, and profile criteria.
• Help to identify groups with similar needs and preferences.

Segmentation in Business Markets

• Organizational, firmographic, economic and geographical criteria.
• Consider what the customer is (not necessarily the end consumer).

Differentiation Approach

• Multiple distinct & attractive market segments.

Positioning

• Final stage in the STP, involves differentiating offerings from competitors.
• Helps provide consumers' reasons to buy.

Products

• Anything offering attention, acquisition, use, or consumption that satisfies a want or need.
• Classifications: Non-durable/Durable, Convenience/Shopping/Specialty/Unsought.

Product Classification

• Non-durable products are typically used in one or a few uses
• Convenience products are bought frequently with minimal effort, and easily accessible.
• Durable products are used for an extended period.
• Shopping products are compared thoroughly on aspects like quality, price, and style.
• Unsought products aren't actively sought out by the consumer.

B2C vs. B2B Products

• B2C (Business-to-Consumer) products are purchased by individuals for personal use, and are further classified by factors like durability, tangibility.
• B2B (Business-to-Business) products are used in further processing, or for use in conducting business (materials & parts, capital items, supplies, and services.)

Product Offering (Total Product Concept)

• Product — total package including supporting features.
• A marketer should consider the entire offering around the product and how it surrounds it.
• Includes all supporting features like branding, packaging and servicing

Product Decisions

• Decisions focusing on attributes and features of a product. • Attributes • Packaging • Labeling • Product support service

Product Line Decisions

• Collection of products that function similarly and are aimed at the same customer groups.
• Length of product line is important (how many different offerings).

Product Mix Decisions

• Decisions about overall product range offered by a company

Product Life Cycle

• Stages products go through when introduced to the market
• Introduction, Growth, Maturity, Decline - changes in sales and profit affected by how consumers respond to new products or trends.

Services

• Actions performed for another party (recipient, object)

Types of Services

• People processing
• Possession processing
• Mental stimulus processing
• Information processing
• Intangible actions

Product - Service Spectrum

• Goods-dominated offer (pure tangible goods and items)
• Service-dominated offer (offering more services to the actual and tangible items)

Service Characteristics

• Intangibility
• Heterogeneity
• Inseparability
• Perishability

Place (Distribution Channels)

• Geographical locations of where products/services purchased.

Atmospheres of Place

• Feeling one gets when visiting a place.
• Can affect consumer behaviour positively or negatively

Retailing

• Traditional physical stores, online purchasing.
• Role and advantages: Product availability, reducing customer search time/travel, providing more information for purchase, important for marketing decisions, being a social gathering place and entertaining option.

Distribution Channels

• Intermediaries: Agents, distributors, retailers, wholesalers (refinements to offerings from manufacturers).
• Intensity of channel strategy (intensive, selective, exclusive).
• Supply chain management (SCM) is the management of the flow of products from manufacturers and distributors to customers.

Cost and Demand-Oriented Pricing

• Cost-oriented, the price of the product/service will depend on the costs of production.
• Demand-oriented, the price of a good will depend on the demand for the product.
• Competitor-oriented, set prices around offerings at similar prices or slightly above in the industry.

Pricing Strategies

• Penetration pricing
• Premium pricing
• Skimming pricing

Pricing Tactics

• Promotional pricing
• Loss leader pricing
• Behavioral pricing
• Freemium pricing
• Dynamic pricing

Immersive Technology

• Blend of real and virtual worlds for customer interactions. • Augmented Reality • Virtual Reality • Mixed Reality

Flow Theory

• A psychological state of full immersion in an activity; a sense of fun, focus, feeling involvement, and enjoyment

Branding

• Communicates why an organization is distinct from others.
• It is a means of differentiation.
• Components/elements: Logo, language, sound, symbolism, taste, social interface, Physical, color

Social Identity

• Humans as social animals want to identify with individuals or groups to satisfy their needs/motives.

International Marketing

• Understand social, cultural, technological, economic, political, and/or institutional factors.
• Some key concepts: socio-cultural factors, technological factors, economic factors, political factors, legal factors
• Strategies - developing products to fit the needs of different markets

Sustainability Marketing

• Creating, communicating and delivering value to customers in ways that protect and improve the environment and human well-being/preserving natural and human capital. •Three pillars: Ecology, Equity, Economy •Auxiliary, reformative and transformative approaches —Various methods of introducing and executing sustainability in daily business operations.
• Different types of companies and people are interested in this.

Critical Marketing

• Critical analysis of commercial marketing.
• Examining how it affects society and the issues. (example: ethical issues)

Explore the foundational concepts and evolution of marketing through different periods. This quiz covers essential elements like the marketing mix, value addition, and the roles of branding in persuading consumers. Test your knowledge and understanding of how marketing strategies have developed over time.