Marketing Management: An introduction

Introduction to Marketing Management

• Marketing involves creating, communicating, delivering, and exchanging offerings with value for customers, clients, partners, and society as a whole.
• Companies build strong customer relationships to capture value in return through marketing
• Marketing strategies are created centered around customer needs and satisfaction
• Apple, for instance, develops products with improved applications and systems, sets prices based on customer desires, and sells where other Apple products are available

Role of Marketing

• Meets consumer needs and wants
• Secures organizational survival, growth, and reputation
• Expands the market reach
• Mass communication tools, like advertising, sales, event marketing, and PR, are used to promote products extensively
• Public Relations programs build and safeguard a company's image and its products
• Adapts pricing strategies based on various considerations
• Improves product offerings to meet the evolving needs of consumers
• Creates utility that satisfies wants through form, place, time, information, and possession
• Manages demand through diverse marketing techniques
• Addresses competition with superior services, premium products, and efficient dealerships to maintain market share
• Contributes towards overall economic growth

Alternate Marketing Types

• Branding helps products succeed by ensuring they have a focus, target market, and recognizable name or "brand."
• PR garners publicity through company stunts, statements, and newsworthy actions, working alongside ad campaigns and promotions via news and information outlets
• Broadcast advertising is buying radio or television time, with radio using jingles and TV utilizing program demographics for targeted marketing
• Point-of-purchase leverages packaging for marketing, which defines product placement on shelves, creates brand recognition, ensures consumer safety, and builds retail opportunities
• Online presence uses the Internet and its permutations as the latest frontier for marketers, using websites, social media, and mobile apps for targeted ads and audience interaction
• Direct marketing occurs when manufacturers deal directly with consumers without intermediaries, such as retailers or wholesalers, often using mail, telephone, or Internet
• Multi-level marketing uses salespeople who earn commissions on their own sales and those of their recruits
• Street teams use personal interaction to express the virtues of a product to potential customers, usually targeting consumers in front of venues with entertaining antics
• Philanthropic marketing occurs when companies support charities and nonprofits through sponsorship and fundraising to create a sense of community
• Guerrilla marketing combines different marketing types to surprise consumers and leave lasting impressions through unconventional tactics like publicity stunts or viral videos

Sales vs Marketing

• Marketing systematically plans and implements business activities to unite buyers and sellers while sales executes transactions in exchange for money or assets
• Marketing determines future needs for long-term relationships, while sales matches current products to customer demand
• Marketing promotes a full view of satisfying customer needs, while sales focuses on achieving volume objectives
• Marketing analyzes the market and sets pricing strategies versus the one-to-one process of sales
• The scope of marketing includes advertising and customer satisfaction, whereas sales' scope is to persuade customers after a product is created
• Marketing operates with a longer-term view and employs "pull" strategies, whereas sales uses "push" strategies in the short term
• Marketing prioritizes building lasting customer relationships, whereas sales prioritizes achieving the ultimate transaction

Marketing Relationships with Functional Areas

• Marketing connects and permeates different functions within an organization
• Research and development, R&D, creates new products and services, driven by consumer needs to deliver products that satisfy
• Production/operations/logistics focuses on warehousing, packaging, distribution, and manufacturing to get products to the consumer efficiently
• Human resources is involved in job scoping and assessing applications
• Information Technology treats information, with websites, intranets, and extranets forming the basis of Customer Relationship Management, CRM
• Customer service facilitates the exchange process by ensuring customer satisfaction
• The finance department works with marketing to ensure an adequate budget for research, promotion, and distribution

The Marketing Mix

• The marketing mix is a set of actions or tactics to promote a brand, traditionally the 4Ps: Price, Product, Promotion, and Place
• The marketing mix increasingly includes several other Ps: Packaging, Positioning, People, and even Politics

Factors Affecting Marketing Function

• Environmental factors impacting marketing capabilities

The Internal Environment

• Includes factors within a marketing firm and are called controllable factors that management can alter to suit the environment
• Internal factors impacting a marketing function include top management support, finance and accounting practices, research and development activities, manufacturing processes, purchasing strategies, as well as the company's image and brand equity

External Environment

• Consists of macro and micro domains, beyond a firm's control requiring adaptability for success
• Micro influencers include suppliers, market intermediaries, customers, competitors and the public

Macro Influencers

• Consists of demographic, economic, physical, technological, political and legal as well as social and cultural forces

Consumer Buying Behavior

• Consumer buying behavior encompasses a consumer's attitudes, preferences, intentions, and decisions in the marketplace
• The study of consumer behavior utilizes social science disciplines, like anthropology, psychology, sociology, and economics.

Product Buying Motives

• Product buying motives induce a buyer to select a specific product over another, based on its physical and psychological attractions in preference to other products
• These motives are subdivided into emotional and rational categories

Emotional Buying Motives

• Buyers make decisions without logical reasoning
• Emotional buying motives include pride/prestige, emulation/imitation, affection, desire for comfort, sex appeal, ambition, desire for distinctiveness/individuality, recreation/pleasure, hunger/thirst, and habit

Rational Buying Motives

• Buyers make decisions after careful consideration
• Rational product buying motives include safety/security, economy, relatively low price, and suitability

Patronage Buying Motives

• Patronage buying motives encourage a buyer to purchase from a particular shop instead of others
• These motives are divided into emotional and rational patronage buying motives

Emotional Patronage Motives

• Buyers patronize a shop without reasoning
• These motives include appearance and display of goods as well recommendations and even imitation based on others' choices alongside prestige and habit/routine

Rational Patronage Buying Motives

• Patronage driven by logic, including convenience, low prices, credit/sales services offered, salesperson efficiency, and wide choice of goods

Types of Consumer Buying Behavior

• Four types of buying behavior that depend on the degree of buyer involvement

Four Types of Comsumer Buying Behaviors

• Complex buying behavior involves high consumer involvement and significant brand differences, which requires detailed information gathering
• Variety seeking behavior has low involvement but with significant brand differences.
• Dissonance buying behavior includes high involvement but few brand differences.
• Habitual buying behavior has low involvement and few brand differences; products are bought quickly

Standard Behavioral Model

• A 5 step process
• Step 1 is problem recognition, where the consumer identifies an unfulfilled need
• Step 2 is information search, relevant data collected for problem's solution
• Step 3 is evaluation based on gathered information against needs, preferences, and financial resources
• Step 4 is the purchase decision that can depend on factors like price or availability
• Step 5 is post-purchase evaluation, determination if the purchase satisfied needs and wants

Economic Model of Consumer Behavior

• A consumer's buying pattern aims to maximize benefits while reducing costs, based on purchasing power and product pricing
• During an increase in power or economic flux some consumers seek benefits while some products may be at lower prices

Maslow's Hierarchy of Needs

• Buying behavior is governed by the need to satisfy basic and learned needs and that people base their actions on fulfilling them
• Satisfying lower-level needs, like food/shelter and high-level needs like feeling prestige

Psychoanalytical Model

• Consumer behavior influenced by conscious and subconscious mind, consisting of "id, ego, superego" levels for hidden symbol manipulation
• Consumers may buy a product over the similar products from a brand they favor

Sociological Model

• Considers influence and role of individuals buying patterns with behavior being affected by those the consumer may associate with

Family Decision Making Model

• Interaction of the influence of family and consumers decision making process. Includes certain roles:
• (i) - Influencer are members gathering information to affect decision
• (ii) - Gatekeepers who control information to family
• (iii) - Deciders with money or power to buy
• (iv) - Buyers who buy the products

Factors Influencing Buying Behavior

• Age affects buyers because a teenager has different motivation than a retired veteran
• Culture, including education, shapes a consumer's buying attitude and decisions, varying significantly worldwide due to cultural differences that reach a large amount of people living in different parts of the world.
• Socio economic level, influences price points and brands that customer is interested it
• Perception, influences purchase decision through marketing tactics and advertising
• Attitude, influences customer services through thoughtless, habitual, decision
• Trends and fashion victims
• Personality, influenced by many variables and genetics
• Experience, people learn and build memory that is used for shopping

Markets

• Through segmentation target markets are personalized by using different marketing characteristics

Market Segmentation

• Market segmentation tailors marketing campaigns through segmented groups to utilize time and money effectively
• When marketers divide a market based on key characteristics and personalize their strategies based on that information, there is a much higher chance of success than if they were to create a generic campaign and try to implement it across all segments.
• Consumers can be prioritized for segmentation based on those more likely to buy a product

Segmentation Bases

• Common methods for segmenting markets are traditional (geographic, demographic) and modern (psychographic, behavioristic)

Segmentation Types

• Geographic segmentation divides based on location
• Demographic segmentation groups data via demographics like age, sex, occupation, income, education
• Psychographic segmentation divides into segments based on the individual's psychology like personality, attitude and lifestyle
• Behavioristic segmentation looks in to consumer knowledge, attitude and use of a product or its properties

Behaviouristic Divisions

• Consumer attitudes are sorted by: (a) - Purchase Ocassion (b) - Benefits Sought (c) - Utilizer Status

Consumer Volumes Segmentation

• Heavy vs light use and how to approach them for sales techniques and advertising

Segmentation Inquiries

• Group customers by similar similarity and latent attributes and group brand

Benefit Segmentation

• Segment where consumers are sorted by high and low attributes and marketing qualities

Benefit Segments

• (a) Status Seeker
• (b) Swinger. Always Up to date
• (c) - Conservative. Like popular brands.
• (d) - Rational man
• (e) - Inner Directed Man
• (f) - Hedonist

Part of STP

• Segment
• Target
• Positioning

Position Targeting

• Where is marketing focuses efforts towards target market using unique resources

Targeting

• Three pronged: First: Single segment with single product
• -Second Single product at segment markets
• • MultiSegment Here marketer targets product and segment with diffenreatiated product for diffenreatiated segments

Target Market

• Target strategies can be mass to Micro level customers each with its pro and con approach

Brand Positioning

• Brand stands to relate with similar products with how you look in marketplace for mindset of customer

Positioning Description

Creates good and unique position for USP by standing out with a solid view to change market

• Market strategies are using product characteristics

Market Positioning Strategy

• Quality and product benefits by looking into aspects like items with bikes and cycles
• Quality approach uses different price ranges to signify levels

Positioning Strategy: Used or App

• Nescafe winter then summer strategy

Product Brand Positioning Strategy

• By users and classes, like fashion labels

Consumer Product Class Positioning

• Freeze dried to regular, instant, and milk maker for breakfast substitute

Cultural Symbol Brand Positioning

• Like using Maharaja logo to say welcome

Competitor Positioning

• What competition has on the product and see where is needed to better the product

Marketing Mix

• What tactic company uses to promote product and brand with 4 Ps = Price, Product, promotion, and Place and also people as vital mix

Importance of Marketing Mix

• All elements of marketing mix influence each other to influence the business

Pricing

• Reduce price or increase value in regards to product or consumer

Location

• Company access for place it is available for product

Product

• Goods with service as tangible, physical buy and goods with services that consumers engage in and buy

Physical Evidence

• tangible components for facilitation of performance or communication

People and Process

• Humans for service delivery to have impact and effect with consumers, tend to be consume as person

Sony Market Mixing Mix

• Company with products and history started in `45 by engineers with products

Product Mix

audio and video as well and credit cards

Prices

• Pricing of items and distributors for wholesale

Process and Promotion

Sony umbrella strategies