Marketing: Satisfying Needs and Creating Value

• Marketing satisfies customer wants and needs
• An exchange is trading value between buyer and seller where all benefit
• Marketing creates value through the marketing mix, which responds to the target market's wants

Marketing Mix

• Product creates value by offering successful goods and services seen as worth purchasing
• Price captures value, based on what price customers are willing to pay and what perceived value is
• Place delivers value by ensuring products are accessible when/where they are wanted
• Promotion communicates value through integrated marketing communications (IMC) for clarity, consistency and impact

Marketing Entities

• Marketing can be done by individuals or organizations, so B2B, B2C, and C2C
• Marketing affects stakeholders like customers, supply chain partners, employees, and society

Marketing Evolution

• Marketing is now in a value-based era that often uses technology
• Value co-creation lets customers collaborate on product/service creation, to optimize value

Customer Value and Competitive advantage

• It involves creating superior value and a sustainable edge over competitors
• Customer excellence retains customers through strong branding and superior service
• Operational excellence achieves efficiency and strong supplier relationships
• Product excellence requires branding products/services of high perceived value
• Location excellence matters for retailers

Sustainable Competitive Advantage

• This is an advantage that is hard to copy and lasts over time
• Usually, a single strategy like low prices or excellent customer service isn't enough
• Multiple strategies or customer relations can make for a strong position

Marketing Plan

• Mission statement outlines the firm's objectives
• Situational analysis uses SWOT
• STP covers segmentation, targeting, and positioning
• The marketing mix involves the 4 Ps
• Metrics measure trends and project the future, assessing performance

Boston Consulting Group Matrix

• Quantifies products based on market growth rate and market share
• Also dictates investments that have been made or need to be made

Marketing research

• It systematically collects, records, analyzes, and interprets data
• Aims to aid decision-makers involved in marketing goods, services, or ideas

Marketing Research Process

• Has steps of defining objectives, designing the research, collecting data, analyzing data, developing insights, and implementing an action plan

Primary vs Secondary Data

• Primary research is specific and offers behavioral insights
• Secondary is quicker and cheaper but may not fit needs exactly or be timely, or be biased

Qualitative Research

• Qualitative focuses on broad insights to formulate research objectives

Quantitative Research

• Quantitative uses statistically tested structured responses, to confirm insights

Marketing Analytics

• Descriptive analytics organize and present data
• Predictive analytics forecast the future such as product sales, which reduces churn and churn rate
• Prescriptive analytics use simulations and optimization for understanding actions
• Active analytics use AI with data from IoT

Consumer Decision Process

• Need recognition is when consumers realize unmet needs or wants

• Information search can be internal/external and weighs benefits vs costs

• Alternative evaluation involves brand attribute sets like universal, retrieval and evoked sets

• Purchase & consumption involves the conversion how well intentions lead to actual purchases

• Postpurchase can have satisfaction, cognitive dissonance, or loyalty

Factors Influencing Consumers

• Include psychological, social, marketing mix, and situational factors
• Maslow's Hierarchy of Needs (physiological, safety, love, esteem, self-actualization)

Segmentation, Targeting, & Positioning

• Segmentation establishes strategy, and uses methods to measure
• Targeting evaluates segment attractiveness and selects the target market
• Positioning identifies and develops a strategy
• Geographic segmentation is continent, or US region
• Demographic is defined as age, gender, income, education
• Psychographic is when lifestyle, self-concept, and self-values are leveraged
• Benefit focuses on convenience, economy, prestige
• Behavioral segmentation focuses on occasion, loyalty
• Identifiable, substantial, reachable, responsive, profitable are keys to success

Targeting Strategies

• Differentiated targets multiple segments with different offerings
• Concentrated focuses efforts on a single primary market
• Micromarketing/One-to-One tailors to individual wants/needs
• Undifferentiated/Mass Marketing uses a single strategy for all

Market Positioning

• Defines marketing mix variables for target customers and distinguishes products in comparison to competition
• The value proposition communicates the customer benefits over competitors

Product Definition

• A product is anything valuable offered in voluntary marketing exchanges like goods, services, ideas, places

Product Complexity

• Core customer value are benefits to consumers
• Actual product includes brand name, quality, design, packaging
• Associated services include financing, warranties, support

Brand Categories

• Manufacturer/National are Kraft's family line
• Retailer/Store refers to Kroger's line

Consumer Products and Services

-Specialty items have consumers who seek best suppliers

-Shopping items are researched and compared before purchase

• Convenience items are purchased without evaluation

• Unsought items are normally unthought of/unknown

Product Lines

• Product Mix includes all products offered by a firm
• Product Lines are groups of associated items
• Breadth refers to number of product lines
• Depth refers to number of products per line
• Firms are strategic to avoid cannibalization

Branding

• It increases awareness and differentiation
• Elements include brand name, URLs, logos/symbols, characters, slogans, jingles/sounds
• Brand repositioning (rebranding) realigns focus to new markets or preferences

Brand Extension

• Includes same brand but different line
• Line extension: Same band, same line

Packages

• Primary is used to contain (toothpaste tube)
• Secondary is packaging around primary

Integrated Marketing Communications (IMC)

• It blends communication tools for clarity and impact
• Consumer, Communication channels, and Evaluation are key, the goal must be specific
• Brand awareness measures a customer’s ability to recognize a brand
• Aided recall requires recognition upon presentation
• Top of mind is when a brand triggers a response
• The highest level of awareness comes when a customer mentions a specific brand

Communication Processes

• The AIDA Model describes cognitive stages in buying
• Communications attempt to drive any kind of desired receiver action
• Lagged effect are marketing campaign delays

Marketing Channels

• Interactive channels such as personal selling and telemarketing
• Passive ones, involve advertising and emails

Advertising

• Advertising is a paid communication from an identifiable source, is persuasive, and appears most
• Steps involve target audience identification, objective setting, budget definition, message conveyance, media selection, advertisement creation and impact assessment

Types of Advertising

• Informative, persuasive, and reminder advertising

Factors for Ads

• Set ads' goals based on campaign objectives
• Ad budget considerations are dictated by promotional goals, expenditures, and market
• Messages should give clear reasons for audience action
• A Unique selling proposition is important and contrasts the product from competitors
• Informational vs. emotional Appeal should dictate the content
• Content depends closely on media
• Media planning, Media mix, Media buy are keys
• Mass (broad) vs. Niche media (narrow) targets desired markets
• The Advertising Schedule can be Continuous, Flighting, or Pulsing

Puffery

• It involves a legal and boastful exaggeration

PR

• An effective marketing strategy to achieve objectives
• PR builds image, handling events, and maintaining relationships
• Tools include cause-related marketing, event sponsorship
• Its coverage is credible

Sales Promotions

• They create excitement to incentivize product purchase
• Are used with advertising/personal selling
• Examples include coupons, deals, premiums, contests, sweepstakes, samples, loyalty programs
• It is important to lower-pricing focus, and for marketers to create value for consumers and the firm

Digital marketing

• Digital marketing promotes brands by connecting through the internet
• It includes email, social media, web advertising, and television

The 4 E Marketing Framework

• It aims to excite, educate, experience, and engage customers

AI in Marketing

• It replaces and augments employee capabilities

Core Goals

• The 7 C Marketing Framework includes several elements/goals

Influencer Marketing

• It involves driving messages by leveraging opinion leaders and popular personalities
• Relevance, reach, response, and return are key evaluating features
• Fraudulent influence and sincerity are potential ethical issues

Pricing

• Pricing is the overall sacrifice a consumer is willing to make
• Successful pricing matches the product with the consumer's perception of value

The 5 C's of Pricing

• Company objectives which is percent profit margin; sales-oriented; competitor-oriented; customer-oriented
• Customers Price elasticity of demand
• Costs of variable/fixed
• Break-even analysis can be leveraged for financial performance
• Competition can impact value chain

Competition Examples

• Perfect Competition involves many similar suppliers
• Monopolistic competition involves many with similar products
• Oligopoly involves very few firms, and airlines are an example
• Monopoly involves one supply chain entity

Competitive Advantages

• All channel members hold pricing perspectives

Channel Synergies

• Retailers' cooperative helps channel members achieve economies of scale

Strategic Pricing Strategies

• Cost-based pricing adds profits to costs
• Competition-based prices are relative offerings
• Value-based prices focus on consumer perception

Everyday Low Pricing

• It involves continuity of pricing between regular sale and discounts

High/Low Pricing

• It shares the original reference price and attract two types of customers: price sensitive, indifferent

New product pricing

• Includes penetration which sets initial prices low during intro
• Price Skimming sets initial price as a premium

Short Term Pricing

• B2C Pricing Tactics (short term) considers markdowns, coupons, price bundling
• It also considers legal/ethical guidelines and discriminatory practices

Retailing and Omnichannel Marketing

• Retailing is about establishing retailer relationships
• Steps involve choosing retailing partners, identifying types of retailers, developing retail strategy, and managing omnichannel strategy

The 3 Types of Distribution Intensity

• Intensive uses retailers that have mass brand distribution
• selective-only some channel intermediaries
• exclusive restricts intermediaries

The 7 P Retail Strategies

• The Seven Ps are Product, Price, Place, Promotion, Presentation, Personnel, Processes

Omnichannel Marketing

• Integrates numerous channels and catalogues for the sale of store merchandise
• Has broader selection and integrated CRM where personnel input and web browsing
• It leverages CRM software, and data collected from internet data put into it
• Brand image and consistency are important considerations

Innovation

• Its leveraged by common reasons such as changing customer needs
• Also useful is saturation the management of risks
• Fashion and improving business relations are also valuable

The Diffusion of Innovation

• It demonstrates how products spread over time with innovators, adopters, majority
• Relative advantage, compatibility, observability, complexity and trialability determine influence

Product Development

• Involves each step starting with ideas and ending in product modification
• Steps are idea generation, concept testing, product development, market testing, product launch and evaluation of results
• Prototype Alpha and Beta are critical development steps

Market Testing

• Can include premarketing and test
• Premarket tests give sample access to gain feedback
• Test marketing launches products into the market on a small scale to gain demand and is normally expensive

Product Life Cycle

• Includes introduction, growth, maturity, decline with unique sales and profitability
• Typical lifecycle segments include innovators, adopters, early/late majority, and laggards
• Few firms product competition, and is highly fragmented