Marketing Strategy and Management

Marketing Strategy

• A comprehensive plan to achieve specific business goals by understanding customer needs, creating value, and maintaining a competitive edge
• Encompasses various activities, including market research, segmentation, targeting, positioning, and development of marketing mixes (product, price, place, promotion)

Market Research

• A systematic process of collecting, analyzing, and interpreting information about the market, including customers, competitors, and the industry
• Provides insights into consumer behavior, market trends, and the competitive landscape
• Involves both primary research (surveys, interviews, focus groups) and secondary research (industry reports, academic journals, market analysis)

Buying Motives

• Psychological factors that influence consumers' purchasing decisions
• Categorized into rational motives (based on logical reasoning, such as price, quality, and functionality) and emotional motives (based on feelings and desires, such as prestige, fear, and pleasure)

Types of Markets

• Classified based on different criteria, such as the nature of the product, target audience, and buying process
• Common types of markets include:
  • Consumer Markets: individuals or households that purchase goods and services for personal use
  • Business Markets: organizations that buy goods and services for use in production processes, for resale, or for operational purposes
  • Global Markets: international markets that involve cross-border trade and cater to a global customer base
  • Niche Markets: small, specialized market segments with unique needs and preferences

New Product Development

• The process of bringing a new product to the market
• Involves several stages:
  • Idea Generation: generating new product ideas from various sources
  • Idea Screening: evaluating and selecting the most promising ideas
  • Concept Development and Testing: developing detailed product concepts and testing them with potential customers
  • Business Analysis: assessing the financial viability of the new product
  • Product Development: creating prototypes and refining the product design and features
  • Market Testing: introducing the product in a limited market to test its performance
  • Commercialization: launching the product in the market and implementing marketing strategies

Product Life Cycle

• Describes the stages a product goes through from its introduction to its decline in the market
• Consists of four stages:
  • Introduction: product launch, marketing efforts focus on creating awareness and generating interest
  • Growth: product gains market acceptance, sales increase rapidly
  • Maturity: sales growth slows down, market becomes saturated
  • Decline: sales decline due to changing consumer preferences, technological advancements, or increased competition

Sales Organization

• The structure and management of a company's sales force
• Involves defining sales roles, setting sales targets, developing sales strategies, and managing sales personnel
• Key elements include:
  • Sales Structure: defining the hierarchy and roles within the sales team
  • Sales Training: providing ongoing training and development to equip sales personnel with necessary skills and knowledge
  • Sales Compensation: designing incentive programs and commission structures to motivate and reward high-performing salespeople
  • Sales Performance Management: monitoring and evaluating sales performance through metrics such as sales volume, revenue, and customer acquisition

Advertising

• A paid form of communication used to promote products, services, or brands to a target audience
• Aims to create awareness, generate interest, and influence consumer behavior
• Types of advertising include:
  • Traditional Advertising: print, broadcast, and outdoor advertising
  • Digital Advertising: utilizes online platforms such as social media, search engines, and email marketing
  • Content Marketing: creating and sharing valuable content to attract and engage the target audience
  • Influencer Marketing: collaborating with influencers or opinion leaders to promote products and services to their followers

Methods of Selling

• Different methods of selling are employed to reach and persuade customers
• Types of selling methods include:
  • Personal Selling: direct, face-to-face interaction between a sales representative and a customer
  • Telemarketing: selling products or services over the phone
  • Online Selling: utilizing e-commerce platforms and websites to sell products and services
  • Direct Mail: sending promotional materials, catalogs, or product samples directly to potential customers

Consumer Behavior

• The study of how individuals, groups, or organizations make decisions to purchase, use, and dispose of goods and services

• Factors influencing consumer behavior include:

  • Cultural Factors: culture, subculture, and social class shape consumer preferences and behaviors
  • Social Factors: reference groups, family, and social roles and status influence consumer choices
  • Personal Factors: individual characteristics such as age, occupation, lifestyle, personality, and economic status affect buying behavior
  • Psychological Factors: perception, motivation, learning, beliefs, and attitudes impact how consumers interpret information and make purchasing decisions### Consumer Decision-Making Process

• Triggered by internal stimuli (hunger, thirst) or external stimuli (advertising, word-of-mouth)

• Involves five stages: Information Search, Evaluation of Alternatives, Purchase Decision, Post-Purchase Behavior, and Post-Purchase Evaluation

Information Search

• Consumer seeks information about potential solutions to the problem
• Involves internal search (memory, past experiences) and external search (friends, family, online reviews, advertisements)

Evaluation of Alternatives

• Consumer evaluates different products or brands based on criteria such as features, price, quality, and brand reputation
• Involves comparing alternatives and considering pros and cons of each option

Purchase Decision

• Consumer makes a purchase decision based on evaluation of alternatives
• Involves selecting a product or brand and choosing the place of purchase

Post-Purchase Behavior

• Consumer evaluates satisfaction with the purchase
• May involve post-purchase dissonance (doubt or regret) and likelihood of repeat purchases or brand loyalty

Marketing Strategies

• Understanding factors influencing consumer behavior and stages of decision-making process helps develop effective marketing strategies
• Strategies can be tailored to address specific needs, preferences, and behaviors of different consumer segments

Marketing Success

• Effective marketing strategies involve understanding the market, identifying customer needs, and developing products and services that provide value
• Market research, buying motives, types of markets, new product development, and product life cycle are essential elements of a successful marketing strategy
• Sales organization, advertising, methods of selling, and consumer behavior play a vital role in reaching and persuading customers