ARBUS 303 Notes PDF

ARBUS 303 Notes Sep 5 Lecture Marketing - Think of advertising, but only a small part of the whole of marketing - Planning, managing. Manipulating parts of the marketing mix - Satisfy customer needs, meet their wants - Market research, add value to the consumer needs - Value...

ARBUS 303 Notes Sep 5 Lecture Marketing - Think of advertising, but only a small part of the whole of marketing - Planning, managing. Manipulating parts of the marketing mix - Satisfy customer needs, meet their wants - Market research, add value to the consumer needs - Value proposition is the combo of benefits received by buyers - Quality, price, convenience, delivery, pre/post sale service - Utlitarian - Practical use, like Staples - Hedonic - Endulgence, Lays - Deservingness - Hallmark - Others like fear humor, etc - What can be marketed - Goods, services, ideas - iPhone, Apple Care, Movember - many things are layered (Tesla) - they spend 0\$ on marketing - Marketing process - Discover needs, - Satisfy with 4Ps - Products, Services, Ideas - The Market (all consumers who might buy your products, services, ideas) - Information about needs - Marketing Strategy - Overall gamplan for customers to turn them to customers for their products - Marketing Mix (4Ps) - Product - Price - Place - Promotion - Market Product Analysis - A close-up of a product analysis chart Description automatically generated - (Penetration) Increase sales within existing market Sep 10 Lecture Promotion - Promotion mix - Ads, promos, personal, PR, Event, and Digital - Pros and cons on slides - Ads - Paid form of medium, not interactive, purchased from 3^rd^ party - TV, radio, print media (magazines, newspaper) radio, product placement (imbedded marketing) - Imbedded marketing (better when brand is mentioned rather than just shown) - Info on slides - Native ads - Paid content that resemble traditional media - Highly favourable article in newspaper but its actually paid sponsored media (need to have it in the fine print) - Out of home, big con is that people's attention has decreased and people tend to ignore this type of advertising - Advertising spending trends (still spend a lot of money on tv even if the internet is where people are at - Personal Selling (more details on slides) - Customer relationship management - Public Relations - Unpaid media exposure, they have little control over what is said about them - Community (example: Harley Davidson, Friday the 13^th^ ride. Brand community that advertise the product - Customers of the brand - Event Marketing - Networking, self promotion - Digital Marketing - Search Engine Marketing - SEO (search engine optimization) - Looks at the code, the links, content development (blogs) - Ensures that websites are indexed properly on search engines like google (how to get to top pages on google) - Pay per click (PPC) - Pay for keywords, only when the ads are clicked, they need to pay - Banner ads - Create brand awareness on websites - Retargeting - Most people leave websites without buying anything - Remind visitors on other platforms (like IG) to show products people look at - Chatbots - E-WOM (electronic word of mouth) - Influencers - 49% of IG influencers buy their followers - Partnerships - Also called affinity marketing - Brands with similar customers can get together for mutual benefits - Brand ambassadors - Celebrity who is hired to boost brand reputation and sales - Embody the brand, appearance, ethics and values - Reviews and ratings - Not illegal to buy reviews - Google, amazon, meta try to counter these fake reviews - Social Media Marketing - High return on investment - Facebook is the most effective website - Dashboard is very important - Paid ads - Even though Facebook has the most users, Instagram has the most engagement - YouTube partnered with shopify - Allows viewers to buy from a live video - LinkedIn (professional profile) - - Marketing purpose - Awareness (minimal wording, eye catching, timing) - Mobile Marketing lecture slide - Google Colab - Complements - Movies and pocorn - Selling one increases the other - Substitutes - Soy milk and dairy milk - Selling one decreases sales in other - Association analysis (discuss the important one) - Support: P(A) - Frequency it shows up in dataset - High is useful relationship, low, not useful - Confidence: P(A&B) - Of the transaction of A, how many B? - Anything of 0.5 is good - Lift: P(A&B)/P(A)xP(B) - Probability that they are bought together - If above 1 = complements - If under 1 = subsitutes - Write code in google colab - Make sure to use one file (MarketBasketAnalysisData.csv) - Data Frame: Column headings ex: 'Bread', 'Milk', etc (all headings) - Need antecendents (if), consequents, support, confidence, lift - Df2 copy into assignment Sep 17 lecture Product - Industrial products - Capital goods - Buildings, machinery (used for production) - Raw materials - Used to make other goods (wheat for bread) - Component parts - Go into the goods (computer chip into computer - Major equipment - Company cannot function without (delivery truck for amazon) - Accessory Equipment - Make process easier (desk for offices) - Operating Supplies - Pens and paper - Services - Lawyers needing corporate lawyers) - Consumer products (designed for end user) - Convenience - Frequently purchased, mass marketed, many substitutes - Milk, gum, band aids - Shopping - In frequent, customers compare products - Homogenous= satisfy similar need - Heterogeneous= perceived differences (clothing) - Specialty products - Brand loyalty, higher prices, limited distribution - Unsought products - Customers don't know they exist until they need them - Types of Products - Durable goods - Home vs office = printer/copier - Non-durable goods - Paper - Services - Personal vs corporate lawyer - 4 Is of services to distinguish them - Intangible (not held, touched) - Inconsistency - Inseparability - Inventory (cant be held in inventory at another time) - Netfilx is one that could be one where inventory exists in their catalogue - Product Elements - Kotler advanced the total product concept - total product concept - core product - fundamental benefits the consumer (being able to drive the car, wear clothes) - actual product - actual thing you get (battery of an electric vehicle, every aspect of the car) - augmented product - the additional feeling after using the product/services (happy or mad about a hair cut) - packaging and labelling - functionality - protects product (eggs), make it easier to use - communicates information - nutritional information, assembly info - signal brand image - can be most important part of the product (pepsi and coke) - Product Lines - similar products that are related and directed at the same audience - product line length - total number of products in a product line - product line depth - diversity of products within a product line (ice cream and cones and sticks - product mix - all product lines marketed by the firm - product mix width - how many different lines of products are there - Branding products - Value of a brand that comes from favourable exposure that consumers get over time - Key components - Trustworthy (confidence that the product will work) - Engaging (more loyal word of mouth) - Leading edge (unique, innovative and forward thinking) - CSR (proud to be associated with the brands) - Presence (widely known) - Protecting Brand Equity - Copyright - There are permitted uses of copyright. Fair use and public domain (after 50 years no longer copyrighted) - Trademark - Only limited to product category, or geography - Counterfeit, bare the tm of the legitimate brand but produced by other party - Patent - Product lifecycle - Curve will change based on the: - Product - Category - How its marketed - Phases - Product development (building the hype) - First mover advantage (first on the market, innovator) - Late mover advantage (do it better than the competitors on the market) - Introduction - Slow sales growth - High product development costs - High marketing budgets for awareness - Growth - Rapid sales - Competitors will come up - Adding features, adjusting prices, distribution changes - Maturity - Longest for most products (not fad ones) - Slow down in sales, tightening costs - Marketing is to maintain brand loyalty in this stage - Decline - Becoming obsolete - Adjusting the product - Modify the product - Modify the market - Increasing use - Repositioning the product - Apple product lifecycle - Iphone is consistent, as there is a decline, they bring in the new product Sep 24 Lecture Price - Money or other consideration that is exchanged for the ownership or use of product - Including goods and services that are traded - Objectives - Survival: staying afloat - Sales volume: sell more units - Profit margins: make more money - Market share growth: beat competitors - Social responsibility: people and planet - Price Equation - F=L-A+E - Final = list -- allowance + extra fees - Profit Equation - P=R-C - Profit = total revenue -- total costs - Total revenue = unit price x quantity - Price signals value - Value = Perceived Benefits/Price - Pricing strategies - Demand oriented - Skimming - Super high price, over time lower the price to attract customers (TVs) - Penetration - Lower price to get into market (the Wii) - Prestige - Set high price for quality/status (Bugatti) - Lining - Not one but line of same products and set different price points (clothing, different colours) - Odd-even - Prices are t at 10.99 (feels lower, doesn't work anymore) (grocery store) - Target pricing - Manufacturers estimate the price of what they think they can charge and adjust after (cars) - Bundles - Marketing of 2 or more products in a package that customers are more likely to buy them together (vacations) - Yield management - Customers are charged Different prices to maximize revenue for a set amount of capacity at any given time (hotels, flights) timing and dates you book these things, the prices are different - Cost oriented - Set a break even point, and see where profit can be earned - Markup - Gross margin - Percentage on top of manufacturing cost compared to selling price to wholesaler, then retailer, then customer - Cost-Plus - Standard markup, but used when they don't know the estimated cost will be - Estimate the costs, like a lawyer - Profit oriented - Profit - An annual amount of profit they want to attain - New or unique products or low competition - Return on sales - Sets price that will give it a set percentage of profit - Return on investment - Sets prices to achieve a mandated ROI target - Competition oriented - Customary - Long standing customers dictates the price that a firm can set - Chocolate bars (even cocoa prices go up, put less in the bars to keep the price the same) - More impactful for lower priced items (gum, Costco hot dog) - Market - Set price based on what consumers are willing to pay (put price over or under the competitor prices) - Loss Leader - Takes a loss on one product to sell others (Costco food court to get people in the store to spend \$100s) - Price Discounts - Volume: reduced unit cost for buying more - Seasonal: entice purchases before demand rises - Trade: compensates intermediaries for marketing - Cash: early pay incentives (things sold on credit) - Cash discount doesn't mean you pay with cash - Allowances: price reduction in exchange for the buyer performing some activity - Promotions: temporary price reductions to create a sense of urgency - Market constraints - Demand - Superordinate \> Subordinate \> Basic Level - Changes at each level - Newness - Product lifecycle stage (higher at beginning), not always the case - Costs - Production and marketing (can't remain viable is cant cover the costs) - Competition - Higher value vs higher volume (other companies prices have an effect on setting prices) - Legal constraints - Pricing schemes are prohibited federal competition act: - Price fixing - Competitors collaborate to set prices - Price discrimination - Charge different prices to different consumers for the same products - Based on race, gender, disability - Ex: Lululemon wants to set prices higher for bigger sizes, is it discrimination? Quiz example: not discrimination (weight is not protected grounds in the constitution) - Predatory pricing - Lower price to drive out competition, then inflate it (iPhone for \$100 to get Samsung out of business) - Deceptive pricing - Price offers that mislead consumers (offer lower price and then have only more expensive options in store) - Google trends - Ex. Not lulu search query/ want Lulu clothing company in dropdown Oct 1 Lecture - Marketing channel - Set of intermediaries involved in the process of making the product available to the consumer - Benefit to producer - Logistical - Transactional - Facilitation - Benefit to consumer - Time utility - Place utility - Form utility (enhance the product) - Information utility (customer service) - Payment utility - Logistics - Inbound - Sourcing supplies, raw materials - Outbound - Marketing channels - Channel Structure - Consumer channels - Direct channel - Supply product to consumer directly, every step is through them - Lululemon - Indirect channel - Retailer model, dove having Walmart sell their soap - Large retailers that buy in bulk from producer - Wholesaler model - High turnover items sold to many retailers - Agent model - Independent selling arm for the producer and the wholesaler - JK rowling-\>Agent-\>Publisher-\>Amazon-\>Consumer - Business Channels - Usually shorter than consumer - Intermediaries - Agents - Represent one or more companies on all transactions - Manufacturers agent: represent many producers - Selling agents: represent one producer - Purchasing agents: represent consumers - Brokers - Represents either the seller or buyer on any transaction - Sellers broker: represent sellers - Buyers broker: represent buyers - Wholesaler - Do take title and possession of the product - Full line: general merchandise (broad assortment of merchandise) - Limited line: speciality merchandise (variation among merchandise) (4 types below) - Rack jobbers (display merchandise) - Cash and carry - Drop shippers - Truck jobbers (deliver things before they spoil) - Distributors - Point of contact: exclusivity - Selling: In/Direct to Consumer - Retailer - Service level - Degree of service provided to consumer - Self serve (gas station, vending machine, online shopping) - Limited service (grocery store, video game store) - Full service (apple store, tailor, hair salon, plumber, mechanic) - Store - Planograms - Producer provides a design of where products should be located in the store, and how displayed - Atmosphere - Physical atmosphere of the store that give a vibe to the customer, interior and exterior - Location - Brick or click, how many stores. - Agglomeration (near each other by design) (physical stores) - Central business district (downtown) - Regional shopping centre (50-100 stores with 2 anchor stores - Anchor store drives traffic to other stores (Walmart, the Bay) - Community shopping centre (20-30 stores, 1 anchor store) - Strip mall - No anchor store, few random stores - Power centres - 1 or more anchors, all stores are accessible from the outside (trending since covid for public health reasons) - Shrinkage - Losing inventory - Breakage, theft, return fraud, errors - Primary source of theft in stores are employees - Channel Strategy - Direct Channel - Supply directly to consumer - Control distribution - Allows company to hold all customer data (data is gold today) - Multi-Channel - Which channel best resonates with the consumer - Usually gives consumers a choice (online and in store) - Gap, makes them not overlap and keeps things exclusive to online and in store - Get you to one channel, not both - Omni Channel - Seamless between channels, allow consumers to interact with through all channels - Some move from omni to multi which is strange, usually the other way around - Channel conflicts - One channel member is preventing another from achieving their goals (usually profit) - Vertical - When manufacturer stops using distributor and start selling to consumer - Conflict between 2 parties at different levels - Horizontal - Multiple at same level having conflict (too many retailers, wholesalers) - Multiple - When producer has 2+ channels in the same market - One channel is being cannibalized by the other - Channel conflict case - Dog treat case where they wanted to sell online but retailers did not want this, created other brand to sell to the consumer online Last class (Jessica notes) Market Research - Defining a marketing problem and opportunity, collecting information and recommending actions - Data is the new oil - Commodity - Data allows you to improve your marketing mix, giving a competitive advantage - Looking at top companies, many are data-driven and collect and sell data Purpose of Market Research - Exploratory - Gathering lots of open-ended data from many sources - Eg. Is social media a good marketing tool for companies in our industry? - Specific - Gather exact information from a target source to get insights about a particular issue of concern - Eg. Should our firm use paid ads on facebook to promote product X? Types of Market Research - Secondary: using pre-existing info - Internal sources - External sources - Primary: gathering first-hand info Secondary research: Internal Data - Father of marketing is economics, mother is psychology - Behavioural (psychology) - CRM Platforms - When, how, and what do they buy? - Website - Where are they hovering and clicking? - What's in their carts? - Social media - Mobile apps - Email - Sales (economics) - Loyalty programs - Similar to CRM but more like how many points they accumulate and redeem - Thinks of numbers - Customer volume - How many people came to our store? - What's our web traffic? - Returns/Exchanges - Important as an early warning sign for product defects - Channels - Trends Secondary Research: External Data - B2B Services - Google Analytics - Provides a lot of external data - Tracks cookies and searches - Census Bureau - Government database that collects information about an entire country - Hubspot - Has a tool called "make my persona"  - Persona is the idealization of the target demographic - Tableau - Statista - Offers all kinds of reports on 170 industries across over 150 countries - Claritas - Marketing segmentation tool - They do research for you on your customers - SurveyMonkey - Custom templates for surveys - Typeform - Online forms to gain consumer insights - Upwave - Brand advertising and tips for improving customer perceptions - Loop - How to improve your brand experience Primary Research: Qualitative - The collection of primary or secondary data that is non-numerical in nature, and therefore harder to measure. It uses in-depth analyses to infer and interpret various phenomena. - Common Types - Observation - Watching people and noting what they do - There is a lot of online observation now - Ethnography - Immerse yourself in the environment, and become part of the study - Influence the outcomes - Interviews - Structured and semi-structured - Focus groups - Introduced in 1950s, created by Ernest Dicher - He approached Betty Crocker for their cake mix, and recommended they have their users add eggs to make it feel more homemade - Hard to analyze Primary Research: Quantitative - The collection of primary or secondary data that are numerical in nature, and therefore easier to measure. It aims to produce objective evidence such as facts and figures. - Lots of ways we can get quantitative data - Common types - Surveys - Ask a group questions and ranked on a scale - Descriptive - Observe and measure variables without manipulating them - Mean, median, mode, etc - Correlational - Data is manipulated - Tries to understand the relationship between two or more variables - Quasi/Experimental - Data is manipulated - US Office of Naval Research funded the Stanford Prison Experiment - Intended to understand the use of power - DV was situational influence Research Ethics - Participants must have informed consent - Vulnerable populations: mentally impaired, children, elderly - Use fairness and inclusion in selection of participants - Unless the research question warrants it - Privacy - Anonymity of participants, storing data, and reporting results - Conflicts of Interest Market Research: Experiments - Perceptual bias - Important for packaging - Anything with an unquantifiable amount should be packaged vertically, which makes people feel like there's more product Primary Research: Data Science - A multi-disciplinary approach (math, statistics, programming, analytics, etc) to explain the business insights buried in large amounts of data - AI - Machines, usually computers, that mimic the problem-solving and decision-making capabilities of humans - Eg. Alexa, Chatbots,  - Machine Learning - Requires some type of human intervention to train the machine so that it can learn - Eg. Give the machine 10,000 images of labelled images, and then you can give the machine 10,000 images of **un**labelled images and have it label them - Neural Networks - Layers of the algorithm that make sense of data using a process called "Fuzzy logic" - Eg. auto-pilot. Has to calculate on multiple layers what it is doing and how it is responding - Deep Learning - Uses large, unstructured datasets that cannot be detected by a human - A neural network with 3 or more algorithms within its neural network. Primary Research: Mixed Methods - Research in which the investigator collects and analyzes data, integrates the findings, and draws inferences using both qualitative and quantitative approaches or methods. - Becoming more popular and valuable - Common types - Triangulations - Analyze data using both qual and quant and mix the results - Exploratory - Starts with qual and narrows down the research question, and then uses quant to answer it - Like a focus group to narrow down the question, and using that data to make a quantitative analysis - Explanatory - Starts with quant and tries to understanding the findings with qual - When sales are down is quant, and then you answer why with qual - Embedded - One method is used within another method Careers in Market Research - If you have a certificate or diploma, you make an average of 99k, if you have a BA then 151k, and MA is 214k+. PhD starts at 200k - Lucrative career that is easy to get into - Has the least gender gap - females make 4% less than males