170 NOTES.pdf

BA 170: Marketing Management Module 1 - Detailed Notes 1. Definition of Core Marketing Concepts Marketing and Its Goals: ○ The main goal of marketing is to facilitate exchanges that benefit society. This goes beyond simply making money or advertising. ○ Commo...

BA 170: Marketing Management Module 1 - Detailed Notes 1. Definition of Core Marketing Concepts Marketing and Its Goals: ○ The main goal of marketing is to facilitate exchanges that benefit society. This goes beyond simply making money or advertising. ○ Common misconceptions about marketing include the belief that: Marketing is solely about making money. Marketing is simply advertising. Marketing is a scam aimed at fooling people. ○ Key Idea: Marketing is about creating and delivering value for people, ensuring that consumers get what they need and improving their lives​. 2. Definitions of Marketing Philip Kotler & Kevin Keller: Marketing involves human activities that facilitate and consummate exchanges. Philip Kotler & Gary Armstrong: Marketing is about creating value for customers and building strong relationships to capture value from customers in return. Louie Lee: Defines marketing as an applied social science that facilitates the exchange of products, services, and ideas between people​. 3. What is Exchanged in a Marketing Relationship? Marketing involves the exchange of: ○ Products/Goods: Tangible items that can be consumed, acquired, and used. ○ Services: Intangible benefits or expertise that provide satisfaction without resulting in ownership. ○ Ideas/Experiences: Intangible aspects, often symbolic, that exist more in the recipient's mind​. 4. Examples of Marketing Components Milo Energy Drink: ○ Product: Malt-flavored beverage containing vitamins and minerals for energy and growth.  ○ Idea/Experience: Represents the idea of "Champion Energy," associated with athletes​. Starbucks Coffee: ○ Product: Coffee, customizable beverages, and other food products. ○ Service: Expert baristas, free Wi-Fi, and other conveniences. ○ Idea/Experience: The "Third Place" between home and work, characterized by comfortable interiors and a relaxing atmosphere​. Disney Resorts and Parks: ○ Product: Themed food, Disney merchandise. ○ Service: Booking services, park attractions, and onsite performers. ○ Idea/Experience: The magic of Disney stories brought to life, creating memorable experiences​. 5. Understanding Markets and Brands Market Definition: ○ A market is composed of consumers and competing products, services, and ideas constantly in exchange with each other. Consumer and Category: ○ Consumer: Any individual or organization involved in purchasing and using a product, service, or idea. ○ Category: Refers to organizations creating and delivering similar or competing offerings​. Brand Definition: ○ A brand is an identity built around products, services, and ideas, differentiating them from others. ○ Brand Managers: Responsible for developing distinct, relevant, and memorable identities for products, services, and ideas​. 6. Brand Architecture and Portfolios Masterbrand: ○ The primary or umbrella brand that holds strong brand equity across a general product category. Sub-brand: ○ A brand that expands on specific associations of the masterbrand, often to target new categories. Brand Extension: ○ A separate brand that borrows the masterbrand's credibility while providing something distinct​. 7. Brand Situational Analysis Definition: A snapshot of brand performance within a market, helping brand managers identify where improvements can be made. Purpose: To "look outside and change from within" by evaluating a brand's position, consumer needs, and opportunities for growth​. How to Get Started on Marketing Cases: ○ Good marketing doesn't happen in a vacuum—it is context-driven. ○ Marketing strategies need to be updated for relevance over time. ○ Efficient use of resources is crucial for successful marketing​. 8. Market Analysis Understanding the Market: ○ A market comprises consumers and an industry, and each brand must identify its market and the competition within that market. Market Analysis Steps: ○ Mapping the Market Landscape: Identify brands and categories for potential growth. ○ Assessing Growth Options: Evaluate market position and rivalry intensity. If the brand is a leader, consider category alternatives. If not, focus on strengthening within the category. ○ Capturing Market Size: Use tools like Euromonitor to evaluate market size, prospects, and competitive positions​. 9. Marketing Strategy and Growth Opportunities Growth through Incremental Opportunities: ○ Current Usage: Focus on increasing loyalty and frequency of use among current customers. ○ Infrequent Usage: Aim to enhance frequency among occasional users. ○ Non-Brand Users: Convince users of competing brands to switch. ○ Non-Category Users: Target those using indirect alternatives to switch to the brand's offerings​. Evaluating Market Size and Position: ○ Understand whether a brand's market is growing, shrinking, or steady. ○ Assess the brand's position and make strategic decisions based on market dynamics​. 10. Importance of Brand vs. Category Analysis Brand Analysis: ○ It is important to compare the brand's competitive advantages against key competitors within the same category. ○ This involves assessing factors like market position, consumer perceptions, and recent market movements. Value Proposition: ○ What unique benefits does the product, service, or idea offer? How does it differ from competitors, and what value does it provide to consumers? Brand Image: ○ Represents the quality of the emotional relationship between the brand and consumers. This relationship is subjective and varies from consumer to consumer​. 11. Marketing Mix and Brand Definition Audit 7Ps of the Marketing Mix: ○ Product: General description and benefits that respond to consumer needs. ○ Price: The cost of the product and its value proposition. ○ Place: Availability and distribution channels. ○ Promotion: Methods used to communicate brand value and image. ○ People: Personnel involved in delivering the brand promise. ○ Process: Procedures for delivering and consuming the product or service. ○ Physical Evidence: Tangible elements associated with the brand (e.g., store layout, uniforms, environment). Brand Definition Audit: ○ Evaluates each brand's strength in the marketing mix and identifies opportunities for improvement against competitors​. 12. Importance of Consumer Understanding Consumer understanding is crucial in any marketing strategy. Without understanding consumer needs, no marketing benefits will make sense. Consumers have both functional needs (e.g., tangible benefits) and emotional needs (e.g., feelings of confidence). Marketing strategies must address both to succeed​. 13. Case Study: Crocs  Brand Situation Analysis for Crocs: ○ Market Definition: Define the market for Crocs, potentially focusing on specific sub-brands or extensions. ○ Growth Strategy: Identify key marketing objectives and analyze Crocs’ position in the market. Highlight trends that influence potential user groups. ○ Recommendations for Marketing Mix: Assess which areas of the marketing mix need improvement and provide specific recommendations for how Crocs can achieve growth​. These notes provide a comprehensive overview of the key concepts discussed in the "BA 170 Marketing Management Module 1." They highlight core marketing concepts, strategies for growth, the importance of consumer understanding, and detailed analyses of markets, brands, and competition. This module emphasizes how effective marketing is built on creating value, understanding consumer needs, and strategically positioning brands within competitive landscapes. BA 170: Marketing Management Module 2 - Detailed Notes 1. Introduction to Market Segmentation and Targeting Market Segmentation and Targeting is the process of identifying specific subgroups of consumers within a market and tailoring marketing efforts to address their distinct needs. Importance of Context in Marketing: Good marketing is context-dependent, requires consumer understanding, is time-bound, and must be resource-efficient to maintain effectiveness​. 2. Understanding Consumers and the Consumer Journey Who are Consumers? Consumers can be customers, users, buyers, subscribers, or purchasers. They are any individual or organization involved in purchasing and using a product, service, or idea. The focus of marketing strategies should be the decision-maker​. The Consumer Journey: ○ Awareness: Knows the brand exists but does not consider purchasing. ○ Consideration: Considers the brand as an option but does not select it. ○ Trial: Selects and tries the brand but does not repurchase. ○ Repeat: Repurchases the brand but does not become fully loyal. ○ Loyalty: Continuously repurchases and may advocate for the brand​. 3. Needs vs. Benefits in Marketing Needs: Requirements that must be addressed for consumers to feel fulfilled; can be functional (tangible) or emotional (intangible). Benefits: Attributes that a consumer gains from using a brand; these are functional or emotional and created/communicated by brands to fulfill consumer needs​. 4. Understanding Consumer Complexity Expressing Needs in Reality: ○ Needs can vary in complexity and individual expression: Food: Consumers express hunger, but options are vast (different cuisines, meal values, etc.). Beauty: Preferences are influenced by evolving genetic sciences and social norms. Health: Latent needs like seasonal health concerns may create unspoken anxieties​. 5. Awareness Levels in the Consumer Journey Levels of Awareness: ○ Top of Mind: First brand recalled by the consumer when a need is mentioned. ○ Unaided: Brands that can be recalled without explicit prompting. ○ Prompted: Brands recalled only when explicitly mentioned. ○ Sources of Awareness: Personal Experience: First-hand use of the brand. Social Interaction: Word of mouth from friends or groups. Branded Content: Advertising designed by the brand​. 6. Buying Decision Behavior Behavioral Categories: ○ Complex Decision Making: Initial decision behavior that involves significant consideration. ○ Dissonance Reducing: Behavior aimed at reducing anxiety post-purchase. ○ Variety Seeking: Trying out different options even if satisfied. ○ Habitual Behavior: Regular purchasing without much thought due to previous satisfaction​. 7. Understanding Market Segmentation Segmentation Process: ○ Segmentation Variables: Demographic: Attributes like age, gender, income, etc. Behavioral: Consumer behaviors such as usage method, purchase frequency, and budgetary constraints. Psychographic: Deduced personality attributes describing lifestyle, aspirations, and relationships, providing insight into consumer motivations​. Filipino Socio-Economic Classifications (SEC): Understanding income-based segmentation is crucial due to the price sensitivity of the market: ○ A & B (Upper Class): High income, exclusive residences. ○ C1 & C2 (Middle Class): Moderate income, professional or junior executive roles. ○ D & E (Lower Class): Low income, basic facilities, temporary structures​. 8. Targeting Market Segments Market Targeting: ○ Definition: A marketing strategy of focusing brand initiatives on specific segments within the market. ○ Evaluating Segment Attractiveness: Size of Prize: Total potential revenue from the segment. Right to Win: Brand’s competitive advantage within the segment. Cost to Serve: Resources required to reach and serve the segment. Segment Value: A combination of size, right to win, and cost to serve​. Segmentation Strategies for Brand Building: ○ Focus on one or a few segments, without alienating existing consumers. ○ Avoid targeting multiple segments simultaneously to prevent diluted impact. 9. Consumer Insight and Market Targeting Consumer Insight: An internal motivation statement representing why consumers fulfill their needs. Insights are often not directly revealed through standard research but are inferred based on behavior​. ○ Example insights: Indulgers: "If I don't carve out time and spending for self-love, it takes a toll on my physical and mental health."  Germophobes: "It only takes one moment of carelessness to suffer a devastating health problem"​. 10. Market Research and Consumer Profiles Market Research: The systematic collection and interpretation of information to gain consumer insights and support marketing strategies. ○ Types of Research: Quantitative: Uses a statistically significant sample to determine consumer attitudes, preferences, and behaviors. Qualitative: Gathers data on consumer attitudes, motivations, and beliefs through in-depth methods like focus groups and home immersions. ○ Data Sources: Secondary: Pre-existing business data and reports (e.g., sales data). Primary: Data specifically collected for a particular brand analysis or initiative​. Components of Consumer Profiles: ○ Character Study: A creative fictional profile of a target market representative to humanize the consumer. ○ Brand Strategy Map: Highlights the critical benefit barriers that need improvement for changing consumer behavior​. 11. Case Studies and Applications Case Study Example: Safeguard: ○ Business Objective: Achieve at least 10% market share in the body wash category. ○ Brand in Market Analysis: The body wash category is young and growing, influenced by pandemic concerns. ○ Brand vs. Category Analysis: Competitors like Dove and Dettol dominate the body wash segment with moisturizing and antibacterial promises. ○ Brand and Consumer Analysis: Identifies "Germophobes" as the most attractive target market due to their focus on antibacterial products​. Brand Situational Analysis for Biotherm Homme: ○ Growth Opportunity: Analyze market dynamics, choose a target market, and recommend strategic changes to marketing mix variables​. These notes provide a comprehensive overview of Module 2, focusing on market segmentation, targeting, consumer insights, and the various methods used to understand and profile consumer behaviors. This module emphasizes the importance of identifying subgroups within a market, targeting them effectively, and ensuring that all marketing efforts are aligned with the unique motivations and needs of these segments.