Marketing Course Notes PDF

Inhoud {#inhoud.Kopvaninhoudsopgave} ====== [Marketing 1 2](#marketing-1) [Marketing 2 5](#marketing-2) [Marketing 3 10](#marketing-3) [Marketing 4 15](#marketing-4) [Marketing 5 22](#marketing-5) Marketing 1 ----------- **The strategic planning, implementation, and control processes** Afbee...

Inhoud {#inhoud.Kopvaninhoudsopgave} ====== [Marketing 1 2](#marketing-1) [Marketing 2 5](#marketing-2) [Marketing 3 10](#marketing-3) [Marketing 4 15](#marketing-4) [Marketing 5 22](#marketing-5) Marketing 1 ----------- **The strategic planning, implementation, and control processes** Afbeelding met tekst, schermopname, diagram, lijn Automatisch gegenereerde beschrijving ** Define the corporate mission\ Build corporate culture\ Establish SBUs\ Assess growth opportunities\ Assign resources to each SBU** **Good mission statement** - Focus on a limited number of goals - Stress the company's major policies and values - Define the major competitive spheres within which the company will operate - Take a long-term view - Are as short, memorable, and meaningful as possible  **Characteristics of SBUs (strategic business units)** - It is a single business or collection of businesses, that can be planned separately from the rest of the company - Own set of competitors - Has a manager responsible for: - strategic planning - profitability **Assessing growth opportunities** - Intensive growth: improving existing businesses - Integrative growth: vertical/horizontal integration within the industry - Diversification growth: outside the present businesses/industries **Target market identification** Two activities to define the target market: 1. Strategy: involves choosing a well-defined market in which the company will\ compete and determining the value it intends to create in this market 2. Tactics (marketing mix): make the company's strategy come alive Both are fundamental interwind **Target market identification** The target market, in which a company aims to create value comprises five factors: - Target customers - Collaborators - Competitors - Company - Context or climate Marketing 2 ----------- **Economic environment** - Purchasing power - Income distribution - Savings rate - Debt - Credit availability **Types of industrial structures** - Industrial economies - Industrializing economies - Raw-material exporting economies - Subsistence economies Fad: unpredictable and short-lived and without social economic, and political significance (fidget spinner) Trend: a direction or sequence of events that has momentum and durability; the\ shape of the future is revealed, and many opportunities are provided Megatrend: large social, economic, political and technological change that is\ slow to form, and once in place, they influence us for some time---between\ seven and ten years, or longer (7-10 years) **Population and demographics** - Size - Growth rate - Population age mix - Ethnic mix - Educational groups - Household patterns - Regional characteristics - Movements - Lifestyles **Socio-cultural environment** - Views of themselves - Views of others - Views of organizations - Views of society - Views of nature - Vies of the universe **Technological environment** - Pace of change - Opportunities for innovation - Varying R&D budgets - Increased regulation of change **Natural environment** Challenges: - Anti-pollution pressures - Increased energy costs and use - Government protections - Shortage of raw materials **Marketing information systems (MIS)** A marketing information system consists of people, equipment, and procedures to gather, sort, analyse, evaluate, and distribute needed, timely, and accurate information to marketing decision makers **How to set up a marketing information system?** - What decisions do you regularly make? - What information do you need to make these decisions? - What information do you regularly get? - What information do you want that you are not getting now? - What information would you want daily, weekly, monthly, yearly? - What special studies do you periodically request? - What newsletters, briefings, blogs, reports, or magazines would you like to\ see on a regular basis? - What topics would you like to be kept informed of? - What data analysis and reporting programs would you want? - How to improve your MIS? Afbeelding met tekst, schermopname, kerstboom, Lettertype Automatisch gegenereerde beschrijving **Sources of information** Internal records - Order -\> payment cycle - Sales information system - Databases Market intelligence - Internet - Social media - Books - Consumers - Meeting other company managers Marketing research: specific marketing situation **Marketing research** "Systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing a company" **Research approaches, methods and instruments** Approaches - Data sources (primary and secondary sources) - Observational research: Observing customers behaviour - Ethnographical research: Uncover unarticulated desires - Focus group research - Survey research - Behavioural research Quantitative = surveys, qualitative = interviews Instruments - Questionnaires, qualitative measures, measurements devices, etc **Characteristics of good marketing research** - Scientific method - Research creativity - Multiple methods - Interdependence (model and data) - Value and cost of information - Healthy skepticism - Ethical marketing **Measures of market demand** - Potential market: Consumers with a sufficient level of interest in a\ market offer - Available market: Consumers with a sufficient level of interest in,\ income for and access to a market offer - Qualified available market: Consumers with a sufficient level of interest\ in, income for and access to and qualifications for a market offer - Target market: part of the Qualified Available market that the company\ decides to pursue - Penetrated market: consumers who are buying the company's market\ offer Market demand for a product is the total volume that\ would be bought, - in a defined geographical area - in a defined time period - in a defined marketing environment - under a defined marketing program. **Market demand** - Market forecast: is the market demand at the level of marketing\ expenditure that will actually occur - Market potential: is the limit approached by market demand when\ industry marketing expenditure approaches infinity **Performance marketing** includes understanding of the returns to the business of marketing activities and programs (driven by KPI' s) **Marketing tactics modelling** Marketing 3 -----------  If customers have a **higher customer expectation** **than** they had a **customer-perceived performance**, you speak of **dissatisfaction**  **How to satisfy customers?** - **Customers oriented organisational chart ** - When you think of the role of your customer - **In a modern organisation** that is focused on the customers the customer is first. We do this for creating value for the customer that\'s what everyone wants, that\'s why a customer must be in every part of the organisation - **Focus on customers-perceived value** - **Total customers benefit: get ** - **Total customers cost: give** - **Total quality management (TQM)** - **TQM (Total Quality Management)** is an organisation-wide approach focused on constantly improving the quality of all processes, products, and services. - **Quality** is the overall set of features and characteristics of a product or service that determine how well it meets the needs and expectations of customers. - **Focus on customers instead of transaction** - **Customer profitability analysis ** - The Customer-Product Profitability Analysis using the 80-20 rule (also known as the Pareto Principle) is a method used to identify which customers or products are generating the most profit. The principle suggests that 80% of profits typically come from 20% of loyal customers or products. - Because for loyal customers you don\'t need to do marketing, resulting in lower cost with more value - **Measuring customer lifetime value and customer equity ** - **Customer's lifetime value =** profit margin company% / 100 x annual customer revenue x average number of loyal years - **Customer equity =** sum of the lifetime value of all customers  - **Customer relationship management and database marketing** - **Customer Relationship Management (CRM)** is the process of managing detailed information about individual customers and their interactions (or \"touchpoints\", everytime customer can connect with the producer) with a company.  - The goal is to build stronger relationships, enhance customer loyalty, and improve overall customer satisfaction. - Framworkt CRM is to:  - **Identify**, prospects and customers - **Differentiate** customers by needs and value to company - **Interact** to improve knowledge  - **Customise / personalise** to each customer - CRM strategies - **Reduce the Rate of Defection**:\ Implement retention strategies such as loyalty programs, personalised communication, and proactive customer service to prevent customers from leaving. - **Increase Longevity**:\ Develop long-term relationships with customers through consistent engagement, personalised experiences, and continuous value delivery to increase their lifetime value. - **Enhance Growth Potential**:\ Identify high-value customers and market segments that offer growth opportunities. Leverage data to expand cross-selling and upselling efforts for these customers.\] - **Terminate Low-Profit Customers**:\ Analyse customer profitability and consider terminating relationships with low-profit or high-maintenance customers to optimise resources. - **Focus More Effort on High-Profit Customers**:\ Allocate resources and marketing efforts toward your most profitable customers to maximise their loyalty, retention, and spending. - **Database marketing** is a strategy that uses customer data to create targeted marketing campaigns. It involves collecting, analysing, and leveraging detailed information about customers (such as purchasing behaviour, preferences, and demographics) to deliver personalised messages, offers, and promotions.  - The goal is to improve customer retention, increase sales, and enhance customer relationships by delivering more relevant content. - Downsides of database marketing and CRM - Sometimes not worthwhile to build database - Investment may be to high - Difficult to find people who can work with the information/system - Not all customers want a relationship with the company - **Monitoring customer satisfaction can be done through:** - **Periodic Surveys**: Regular feedback from customers to measure satisfaction. - **Customer Loss Rate**: Tracking how many customers stop using the product or service. - **Mystery Shoppers**: Anonymous shoppers evaluate service quality and customer experience. - **Monitor Competitive Performance:** Comparing your performance with competitors to identify areas for improvement. Characteristics of **business markets:** - **B2B:** - Fewer, larger buyers - Close supplier-customer relations - Professional purchasing - Multiple buying influences - Multiple sales calls - **B2C:** - Derived demand - Inelastic demand - Fluctuating demand - Direct purchasing   **Interpersonal forces:** are the roles within the organisation - Initiators, doesn't need to be managers - Users, tell what could be better about the product - Influencers, consultant company tell you what better can do  - Deciders, general manager makes decisions - Approvers are the shareholders  - Buyers, are the only one who doe the buying things, people who speaks to other companies etc - Gatekeepers are trying to keep it balanced and have the power to stop a deal  **Types of Business Customers:** - **Price oriented: ** - **Strategies to handle them, when the prices are getting to high ** - Order limited quantity - Allow them to give refund, thinks they don't need - Make no adjustments - Provide no services ** ** **\ ** Marketing 4 ----------- **Target marketing requirements** 1. Identify and profile distinct groups of buyers (market segmentation) 2. Select one or more market segments to enter (market targeting) 3. For each, establish and communicate benefits of offering (market positioning) **Bases for segmenting B2C markets** - Geographic - Demographic - Behavioural - User and usage - Psychographic - Needs and benefits **Bases for segmenting B2B markets** Afbeelding met tekst, schermopname, Lettertype Automatisch gegenereerde beschrijving **Bases for segmenting B2C markets** Descriptive characteristics - Demographic - Geographic - Psychographic **Effective segmentation criteria** - Measurable - Substantial - Accessible - Differentiable - Actionable Afbeelding met tekst, schermopname, diagram, Lettertype Automatisch gegenereerde beschrijving  **(statistical) procedure for market segmentation** - Questions about importance of attributes - Factor analysis to identify underlying dimensions - Are cheap - Are expensive - Cluster analysis to identify groups of respondents with similar answers **What is a brand** "A name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors." **Role of brands** Consumer benefits - Identify source/maker - Simplifies decision making - Reduces risk Marketer Benefits - Improved perceptions of product performance - Greater loyalty - Less vulnerable to competition and crisis - Larger margins - Inelastic consumer response to price increases - Elastic consumer response to price decreases - Greater trade cooperation - Increase in effectiveness of marketing communication - Licensing opportunities - Brand extension opportunities **How to build brands?** Creating difference between products "Products are made in factories; brands are made in the mind of the consumer." Positioning: The act of designing a company's offering and image to occupy a\ distinctive place in the minds of the target market Brand promise: What the brand must be and do for consumers **Brand positioning** 1. Competitive frame of reference 2. Points of difference / parity 3. Brand mantra **1.** **Competitive frame of reference** Identify competitors: category membership - Category benefits - Compare to exemplars - Product descriptor **2. Points of difference (POD)** Attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand Criteria: Desirable, Deliverable, Differentiating **3. Points of parity (POP)** Attribute or benefit associations that are not necessarily unique to the\ brand but may be shared with other brands Two forms: Category POP and Competitive POP **Choosing POPs and PODs** Brand benefits: What do consumers get from the product? - Brand attributes reasons to believe **Brand mantras** 'Short phrases that capture the essence or spirit of the brand positioning (for internal use)' Disney -- "fun family entertainment" Brand Mantra Criteria - Communicate - Simplify - Inspire Afbeelding met tekst, schermopname, Lettertype, Elektrisch blauw Automatisch gegenereerde beschrijving  **Brand elements** - Brand Names - URLs - Logos - Symbols - Characters - Spokespeople - Slogans - Jingles - Packages - Signage **Brand element choice criteria** Brand builders - Memorable - Meaningful - Likable Defensive - Transferable - Adaptable - Protectable **Secondary sources of brand knowledge** Afbeelding met tekst, Post-it-briefje, Rechthoek, diagram Automatisch gegenereerde beschrijving **Customer based brand equity** The differential effect that brand knowledge has on consumer response to the marketing of that brand. Consumers' brand knowledge -\> differences in consumer response -\> perceptions, preferences and behaviours **Brand valuation** - Brand Asset Valuator (BAV) - BrandZ - Brand Resonance Mode **Brand dynamics pyramid**  **Branding strategy** Parent brand -\> line extension -\> category extension: Honda -\> automobiles and lawn mowers **Classification of brands** - By brand owner - Manufacturer - Private label (store brand) - By distribution and marketing support - A-brands - B/C-brands - By range of products - Umbrella brand (samsung) - Brand family (Bertolli) - Sub brands (Renault [Megane]) - Products with no brand name are called "generic products" Marketing 5 ----------- **Market Members** - Market leaders (AH) - Market challengers (Jumbo) - Market followers (Lidl) - Market nichers **Market leader -- becoming and staying number one** Expand total market demand New customers More usage - Replacement rate - New product uses Protect current market share Market driven - Responsive marketing - Anticipative marketing Driving markets: creative marketing Increase market share **Market leader -- staying number one** **\ ** **Market leader -- staying number one** 1. Occupying the most desirable market space (being market leader) 2. Flank defence -- make outposts to protect a weak front or support a counterattack (huismerk) 3. Preemitive attack (aggressive manoeuvre) to attack first and keep others off balance (new and innovative product) 4. Counter offensive defense (offer a cheaper product for longer than the competition) 5. Mobile defence -- stretch your domain over new territories through market branding (offering new ecological friendly products first) 6. Contraction -- give up weaker markets, just cut off a part of the market that loses you too much money and let it go **Market leader - Increase market share over the perfect point** - Decreased profitability - Pursue wrong activity - Antitrust action - Lower overall quality (perceived quality lower than actual quality) **Market challenger strategies** - Define objectives and opponent(s) - Choose general attack strategy - Choose specific attack strategy Attack: - Market leader - Weaker, similar size firms - Smaller local or regional firms **Market challenger -- becoming number one** 1. Frontal attack -- attacking them head on 2. Flank attack -- finding gaps that are created by shifts in markets 3. Encirclement attack -- launching an offensive attack on many fronts 4. Bypass attack -- focussing on easier, smaller market that the market leader does not bother with 5. Guerilla attack -- small attack, both conventional and unconventional used to harras the competition **Market challenger -- specific attack strategies** - Discounted products - Product innovation - Improved services - Wider assortment - Distribution innovation - Promotion innovation **Market follower -- strategies** - Counterfeiter - Cloner - Imitator - Adapter **Market Nicher -- Strategies** Nicher tasks - Create niches - Expand niches - Protect niches Target small, profitable segments Achieve higher margins **Product Life-Cycle Strategies** - Products have limited lifetime expectancy - Sales pass through stages - Profits rise, then fall - Different strategies needed **Sales and profit life cycle**  **Introduction stage** Slow sales growth negative profits Marketing strategies: - Inform potential customers - Induce product trial (have a way to cover the demand) - Secure retail distribution **Order of market entry** Pioneer advantage Pioneer disadvantage - Brand name association - Poor new products - Define product class - Bad positioning - Customer inertia - No demands yet - Producer advantages - Product development costs **\ ** **Growth stage** Rapid sales growth, new competitors Marketing strategies: 1. Improve product quality (add new features) 2. Add new models and flanker products 3. Enter new market segments 4. Increase distribution coverage 5. Focus advertising on preferences and loyalty 6. Lower price, attract price-sensitive buyers **Maturity stage** Growth slows, weak competitors exit Marketing strategies: 1. Market modification 2. Product modification 3. Marketing program modification **Decline stage** Decline of sales and profits Market strategies: 1. Rejuvenate product 2. Harvest (let it die and get the most out of it) 3. Divest **Common product life-cycle patterns** Afbeelding met tekenfilm, schermopname Automatisch gegenereerde beschrijving **Characteristics of the PLC (product life cycle)** Afbeelding met tekst, schermopname, Lettertype, nummer Automatisch gegenereerde beschrijving **PLC objectives and strategies**  **Product:** "Anything that can be offered to a market to satisfy a customers' want or need." **Components of the market offering** Afbeelding met tekst, Lettertype, lijn Automatisch gegenereerde beschrijving **Product differentiation** - Form - Features - Durability - Style - Customization - Conformance quality - Reliability - Performance quality - Repairability **Service-related differentiation** - Ordering ease - Customer consulting - Delivery & refunds - Installation - Customer training - Maintenance & repair **Product and brand relationships** 1. Product portfolio design 2. Product mix pricing 3. Co-branding **\ ** **(1) Product portfolio has a certain** 1. Width - number if different product lines 2. Length - the total number of items in the mix 3. Depth - he number of variants offered for each product in the line 4. Consistency - reflects how closely related the various product line are in ed use, production requirements, distribution, etc. **Product line length** Two way stretch **\ ** **(2) Product mix pricing** - Product-line pricing (Canon cameras: low-priced, moderate, high-priced) - Optional-feature pricing (cars: air conditioning, leather seats, etc.) - Captive-product pricing (Video games: Console and games) - Two-part pricing (Phone: fixed fee plus charges for extra service) - By-product pricing (Beer + pulp, meat + bones) - Product-bundling pricing (Bundle price for cable tv, internet and phone) **Packaging** Packaging objectives - Brand identification - Persuade - Protection - At-home storage - Aid consumption **Service:** "An act or performance one party can offer to another that is\ essentially intangible and does not result in the ownership of\ anything." **Continuum of evaluation for products** Afbeelding met tekst, diagram, lijn, Lettertype Automatisch gegenereerde beschrijving **Distinctive service characteristics** - Intangibility - Inseparability - Variability - Perishability **Intangibility** Physicial evidence & presentation - Place - People - Equipment - Communication material - Symbols - Price **Inseparability** - Add more service providers - Work faster - Work with larger groups **Variability** - Good hiring and training - Standardize service-performance process - Monitor satisfaction **Perishability** Matching supply & demand Demand side - Differential pricing - Promote nonpeak demand - Offer complementary services - Reservation systems Supply side - Part-time employees - Peak-time efficiency - Increased consumer participation - Shared services - Facilities for future expansion **Marketing in service industries**