Marketing Final BOSC 1 - Study Guide PDF

Marketing **1. Introduction to Marketing** **Key Points:** - **Definition**: Marketing involves creating, communicating, delivering, and exchanging offerings that provide value to customers, clients, partners, and society as a whole. - Focuses on building strong customer relation...

Marketing **1. Introduction to Marketing** **Key Points:** - **Definition**: Marketing involves creating, communicating, delivering, and exchanging offerings that provide value to customers, clients, partners, and society as a whole. - Focuses on building strong customer relationships to capture value in return (Kotler & Armstrong). **Core Concepts:** - **Needs**: Fundamental human requirements, such as Maslow's hierarchy (e.g., safety, belonging). - **Wants**: Needs shaped by culture and personality. - **Demands**: Wants backed by purchasing power. - **Market Offerings**: Combination of products, services, or experiences offered to meet needs or wants. - **Marketing Myopia**: Focusing on selling products rather than delivering experiences or solutions. **Marketing Management Orientations:** 1. **Production Concept**: Emphasizes affordability and availability by optimizing production. 2. **Product Concept**: Prioritizes high-quality and innovative products (risk: marketing myopia). 3. **Selling Concept**: Drives sales through aggressive promotion, regardless of demand. 4. **Marketing Concept**: Focuses on understanding and meeting customer needs better than competitors. 5. **Societal Concept**: Considers societal well-being alongside profitability and customer satisfaction. **Midterm Project Overview:** - **Strategic Analysis Video**: Evaluate a company's strategy using frameworks like the Ansoff Matrix and Porter's strategies. - **Communication Campaign**: Develop a promotional strategy and create a campaign video. **2. Consumer Behavior** **Factors Influencing Behavior:** 1. **Cultural**: - **Culture**: Influences values and behaviors. - **Subcultures**: Groups within cultures with shared experiences (e.g., ethnicities, regions). - **Social Class**: Hierarchical divisions based on occupation, income, and education. 2. **Social**: - Groups: Membership (direct influence), reference (indirect influence), aspirational (desired groups). - Family: Primary influence on consumer decisions. - Roles and Status: Influence choices based on societal expectations. 3. **Personal**: - Demographics: Age, occupation, income, lifestyle. - Personality: Traits and self-concept shaping preferences. 4. **Psychological**: - Motivation: Drives behavior (e.g., Maslow's hierarchy). - Perception: How information is processed (selective attention, distortion, retention). - Learning: Behavior changes based on experience. - Beliefs and Attitudes: Consistent feelings or evaluations. **Buying Decision Process:** 1. **Need Recognition**: Realization of a problem or need. 2. **Information Search**: Gathering options and details. 3. **Evaluation of Alternatives**: Assessing choices based on criteria. 4. **Purchase Decision**: Selecting the best alternative. 5. **Post-Purchase Behavior**: Evaluating satisfaction and likelihood of repurchase. **ZMOT (Zero Moment of Truth):** - The online research phase (e.g., reviews, comparisons) before the purchase decision. **3. From Corporate to Marketing Strategy** **Strategic Planning Steps:** 1. **Mission Statement**: - Defines the organization's purpose. - Should be market-oriented (focused on satisfying needs) rather than product-oriented. - Examples: - Product-Oriented: \"We make cameras.\" - Market-Oriented: \"We help people capture memories.\" 2. **Goals and Objectives**: - Translate the mission into actionable targets for departments and teams. 3. **Business Portfolio Analysis**: - **BCG Matrix**: - **Stars**: High market share and growth. - **Question Marks**: High growth, low market share (potential for growth or failure). - **Cash Cows**: High market share, low growth (steady profit sources). - **Dogs**: Low market share and growth (candidates for divestment). 4. **Growth Strategies (Ansoff Matrix)**: - **Market Penetration**: Increasing sales in existing markets. - **Market Development**: Expanding into new markets. - **Product Development**: Innovating or enhancing products for current markets. - **Diversification**: Entering new markets with new products. **4. Microenvironmental Factors** **Key Components:** 1. **The Company**: - Cross-functional collaboration among departments (e.g., marketing, operations). 2. **Suppliers**: - Provide necessary inputs; disruptions affect product delivery. 3. **Marketing Intermediaries**: - Firms that help promote, sell, and distribute products (e.g., retailers, agencies). 4. **Competitors**: - Direct Competitors: Offer similar products to the same audience. - Indirect Competitors: Different products meeting similar needs. 5. **Publics**: - Groups influencing or influenced by the company (e.g., media, local communities). 6. **Customers**: - Markets: Consumer, business, reseller, government, international. **Competitor Analysis:** - **Steps**: 1. Define competitors. 2. Evaluate their strengths, weaknesses, and strategies. 3. Identify your competitive advantage (e.g., pricing, innovation). **5. Marketing Research** **Marketing Information System (MIS):** 1. **Internal Databases**: - Company data on sales, customer interactions, costs. 2. **Marketing Intelligence**: - Public data about competitors and market trends. 3. **Marketing Research Process**: 1. Define the problem. 2. Develop the research plan (primary vs. secondary data). 3. Collect and analyze data. 4. Interpret and report findings. **Types of Research:** - **Exploratory**: Initial insights to define problems. - **Descriptive**: In-depth studies on specific topics (e.g., market demographics). - **Causal**: Testing cause-and-effect relationships (e.g., price changes affecting sales). **6. Segmentation, Targeting, Persona** **Market Segmentation:** 1. **Geographic**: Location-based (regions, cities). 2. **Demographic**: Age, gender, income, education. 3. **Psychographic**: Lifestyle, values, personality. 4. **Behavioral**: Usage rate, loyalty, occasion. **Targeting Strategies:** - **Undifferentiated**: Broad, one-size-fits-all approach. - **Differentiated**: Tailored strategies for multiple segments. - **Concentrated**: Focus on one specific segment. - **Micromarketing**: Highly personalized targeting (e.g., local marketing). **Persona Development:** - Create a fictional representation of an ideal customer based on real data. **Differentiation Elements:** - **Product**: Unique features. - **Service**: Exceptional delivery. - **Channel**: Distribution efficiency. - **People**: Staff expertise. - **Image**: Branding and reputation. **7. Differentiation and Positioning** **Differentiation:** - Stand out in the market through: - Features, design, service quality, brand image, pricing. - Example: Apple differentiates through innovation and user experience. **Positioning:** - Influencing perceptions to occupy a unique place in consumers' minds. - **Positioning Statement Template**: - \"To \[target segment\], \[brand\] is the \[concept\] that \[point of differentiation\].\" - **Positioning Map**: Visualize brand's position relative to competitors (e.g., price vs. quality). **8. Product Strategy** **Levels of Product:** 1. **Core**: Fundamental benefits (e.g., a hotel provides rest). 2. **Actual**: Tangible attributes (e.g., design, features). 3. **Augmented**: Additional services (e.g., customer support). **Product Life Cycle (PLC):** - **Stages**: - Introduction: Launch phase. - Growth: Increasing adoption. - Maturity: Peak sales, intense competition. - Decline: Reduced demand. **Product Portfolio:** - **Width**: Number of product lines. - **Length**: Total products in a line. - **Depth**: Variations of each product. - **Consistency**: Relation between product lines. **9. IMC (Integrated Marketing Communications)** **Promotion Mix:** 1. **Advertising**: Paid, non-personal communication. 2. **Sales Promotion**: Short-term incentives (e.g., discounts). 3. **Personal Selling**: Direct interaction with customers. 4. **Public Relations**: Building a favorable image. 5. **Direct Marketing**: Personalized outreach (e.g., email campaigns). **Communication Process:** - Sender → Encoding → Message → Decoding → Receiver → Feedback. **Advertising Objectives:** - **Inform**: Build awareness. - **Persuade**: Encourage preference. - **Remind**: Maintain loyalty. **Good luck with your exam!**