Exam Revision: Principles of Marketing (PDF)

The difference between product orientation vs marketing orientation for a company ================================================================================= **Production orientation:** production capabilities - manufacture product - aggressive sales effort - customers the companies were di...

The difference between product orientation vs marketing orientation for a company ================================================================================= **Production orientation:** production capabilities - manufacture product - aggressive sales effort - customers the companies were dictating the game (in the start of 20th centuries) customers got what they were offered **Production orientation:** production capabilities - manufacture product - aggressive sales effort - customers the companies were dictating the game (in the start of 20th centuries) customers got what they were offered How is customer value generated =============================== Created through the solution that a product or service provides, not only to the buyer but to their organization as well. - product, service, image and relational benefits - monetary, time, energy and psychological costs The marketing mix and its managerial implications (practical use) ================================================================= The concept of the marketing mix - - - - they show us what they are about fancy does not always equal successful Marketing audit checklists for micro and macroenvironment ========================================================= A marketing audit checklist evaluates strategies, identifies improvement areas, and aids goal development. It covers target market analysis, goal setting, SWOT analysis, and content strategy, benefiting marketing teams and business owners for effective targeting and growth. Microenvironment audit checklist: - - - - - - Macroenvironment audit checklist - - - - - - Segmentation as an activity and segment variables. Make sure you are able to apply those ======================================================================================== **Segmentation -** The identification of individuals or organizations with similar characteristics that have significant implications for the determination of marketing strategy and marketing mix. Difference between differentiation and positioning ================================================== **Differentiation** - - **Positioning** - - Sources of competitive advantage ================================ Competitive advantages can arise from many internal and external sources - - - - - - - - Different positioning strategies ================================ - - - - - - The 4Cs and its use =================== Keys to successful (re)positioning: - - - - Country-of-origin effect and its use ==================================== This refers to the influence that the country where a product is made has on consumers\' perceptions and purchasing decisions. This effect can either positively or negatively shape consumer attitudes toward a product, depending on the associations they have with the product\'s origin. These perceptions may stem from the country\'s reputation for quality, cultural stereotypes, perceived craftsmanship, innovation, reliability, and even political or historical factors. The difference between a (core) product and a brand =================================================== **A product** is anything that is capable of satisfying consumer needs. **A brand** gives a product a distinctive identity through the creation of a name, design or, more usually, some combination of these. Brand assets and their managerial implications ============================================== **Brand assets** are valuable elements and attributes associated with a brand that contribute to its unique identity, differentiation, and equity in the market. These assets include tangible and intangible features that help create strong customer loyalty, awareness, trust, and a positive brand perception. Managing these assets strategically is crucial for maintaining and growing a brand\'s market position and long-term success. Principles for creating the brand =================================  The success factors behind brand extensions =========================================== The new product category that the brand extends into must be logically linked with the category of the first product. The new category is logically linked to the existing product if: - - - The danger is a potential cannibalization of the first product brand extension The Boston Consulting Group matrix and its managerial implications ==================================================================  Elasticity of demand ==================== **Elasticity of demand** measures how the quantity demanded of a good or service responds to a change in one of its determinants, such as price, income, or the price of related goods. It helps businesses and policymakers understand consumer behavior and how sensitive demand is to changes in these factors. Pricing methods, their content and use ======================================  - - - - - - - - - - Possible characteristics of high and low price market segments ============================================================== **Conditions for charging high prices:** - - - - - - **Conditions for charging low prices:** - - - - - - - Functional areas of marketing communication and what the choice of the area depends on ====================================================================================== - - - - - - - Because every area achieves a different purpose, the choice of which area to use depends on what the company is selling and what it wants to achieve. Media of marketing communication and what the choice of media depends on ======================================================================== - - - - - - - Depending on the nature of the product and what kind of media the target group of the brand/product follows, the right media must be chosen. Communication process and meaning of noise in communication process =================================================================== **Marketing communication** - creating, delivering, managing and evaluating brand messages clearly, consistently credibly and competitively to impact brand perceptions To break through the noise Use the surroundings Create physical involvement / interaction Create 3D effect "Out-of-the-box" both in terms of visual and place Be controversial Advertising objectives (especially ways of positioning the brand in consumers ́ mind) ==================================================================================== Create awareness Stimulate trial **Position products in consumers ́ mind** - - - - - - Correct misconceptions Remind and reinforce Ways of enhancing consumer attention to break through the clutter of noise ========================================================================== To get and maintain the consumers attention, brands need to stand out through relevance, engagement, emotional connection, and innovation. It's about cutting through the clutter with the right combination of strategies to ensure that the message resonates and sticks in consumers' minds. For example: - - - - -...and so on Decision-making units ===================== The decision making unit: 1. 2. 3. 4. 5. You have to know who you are advertising the product to, the target Decision-making process ======================= High involvement decisions/purchases (HI) / Low involvement decisions/purchases (LI)  Difference between high- and low involvement products ===================================================== **high involvement decisions/purchases** (considered carefully, bad consequences, the more expensive the more carefully chosen, think carefully about the message) **low involvement decisions/purchases** (not always carefully considered, rather cheaper and spontaneous choices) buying process and marketing also differ **What we need vs what we want** **...and how we justify our decisions** Motivated reasoning - processing information in a biased way so that they can obtain a particular conclusion they want to reach What causes risks in purchasing and what risks there are ======================================================== **Perceived risk** - the extent to which the consumer is uncertain about the personal consequences of buying, using, or disposing of an offering. - - **Circumstances Causing Increased Perceived Risk:** Lack of information Newness High price Complex technology Brand differentiation **Types of Perceived Risk:** Performance (won ́t work/last) Financial Physical (Safety) (due-date over) Social (anti-smoking campaigns) Psychological (inconsistency with self-concept) Time for acquisition, use, etc It's the company's responsibility to minimize perceived risk! Marketing implications of the 5 senses ====================================== **Sight:** Visual appeal impacts brand recognition and recall. Marketers use attractive packaging, colors, shapes, and visual storytelling to influence consumer perception and buying behavior. **Sound:** Music, jingles, and soundscapes enhance brand identity and mood. Background music in stores or unique audio branding can evoke specific emotions and drive purchasing decisions. **Touch:** Tactile experiences, like product textures or hands-on trials, build a sense of ownership and trust. Allowing customers to touch products, such as fabrics or devices, increases perceived quality and purchase likelihood. **Taste:** Sampling and taste testing, especially for food and beverage products, deepen consumer engagement. Positive taste experiences can create lasting brand associations and drive customer loyalty. **Smell:** Scent marketing leverages fragrances to evoke memories, attract attention, and influence mood. Retailers, hotels, and product lines use signature scents to enhance brand recall and customer comfort. Guerrilla marketing and its principles ====================================== - - - - - - The purpose of event marketing ============================== Events allow customers to engage and experience the brands. Sponsorship, its guidelines and objectives ========================================== **Sponsorship** - the financial support of an organization, person, or activity in exchange for brand publicity and association. **Objectives:** - - - - - **Guidelines:** - - - - - Values transferred from sponsorship categories ==============================================  Factors of market attractiveness ================================ Marketing mix for international markets (adaptations vs standardization when positioning) ========================================================================================= **Standardization** - **Adaptation** - - Global consumer culture positioning (consumers identify with the globally cosmopolitan segment) Foreign consumer culture positioning (consumers identify with foreign culture) Local consumer culture positioning (reflects local cultural norms and identities) - 35. What it is about: Recognizing not only marketing's positive contributions to the quality of life some people enjoy, but pointing out also its (potential) negative effects in the lived experiences of various groups. Recognizing that the practices associated with marketing are political rather than neutral because they represent the views of specific interest groups constituted by people who have a reason for describing the world in certain ways and not others. Thus, they encourage people to think about their existence in limited ways. **Benefits:** - - - **Non-benefits:** - - -