Marketing Management Review PDF

MARKETING MANAGEMENT Evaluation of Alternatives - After a consumer has gathered information Group 1 about certain brands of a product or service, he is now r...

MARKETING MANAGEMENT Evaluation of Alternatives - After a consumer has gathered information Group 1 about certain brands of a product or service, he is now ready to make Consumer Market - global markets evaluation. where individuals buy products or services for personal use, not for sale Purchase Decision - Customers to others. search for brands and choose the one offering maximum benefits and Consumer Buying Process - satisfaction. Retailers often believe that consumers buy in randomized patterns, but this is Factors that contribute on the not always the case. decision of the consumer to avoid, modify, or postpone a purchase Problem Recognition - Before a decision, which are: customer can make a purchase, they must have a problem that contradicts 1. Attitudes of others - Sometimes their desire or reality. This problem is other persons' attitudes are negative known as identifying an unmet need, about the consumer's preferred brand. which forms the basis of buying 2. Unanticipated situational factors - behavior. Increase in price, unemployment, income of the household, big medical Information Search - Following the expenses, and unavailability of the problem recognition, an interested most favored brand and such other consumer will undertake to search for comparable unexpected situations information. may change the buying intention. 3. Consumer's perceived risk - INFORMATION SOURCES: Some basis of perceived risk could be on price, quality doubt, entrance of a 1. Personal Sources - composed of new better- quality product and the family members, friends, package, customer self- confidence. colleagues, and relatives. 2. Commercial Sources - Advertising, Purchase - All the stages that lead salesmen, dealers, package, trade toward purchasing have been show, display, and exhibition are completed, although it is still unsure leading commercial sources. whether the customer will really buy. 3. Public Sources - Mass media such as radio, TV, newspapers, magazines, Post-Purchase Evaluation - cinema, and consumer-rating agencies After a purchase, customers evaluate are some primary public sources. their decision, potentially deciding to 4. Experimental Sources - consist of return if they feel unsatisfied. handling, examining, testing, or using the product. Here are some of the few things that Temporal Perspectives - focuses on a marketer should check about the time allocation for shopping, including post- purchase experience of the day, season, year, and festival. buyers, namely: THREE FORMS ON HOW TIME CAN 1. POST PURCHASE SATISFACTION AFFECT SHOPPING: - Marketers must understand customer 1.​ Time Pressure satisfaction levels to avoid 2.​ Time of Year discrepancies 3.​ Time of Day between expectations and actual performance. Satisfaction occurs when Purchase Task - refers to the buying a product meets or exceeds intention or reason behind a product or expectations, leading to repeat service purchase. purchases and positive word-of-mouth. Social Surroundings - During 2. POST-PURCHASE ACTION shopping, the presence of societal - The success of advertisements elites can influence consumer depends on customer satisfaction, as decisions. dissatisfied customers may file complaints or seek legal action. Atmospheric in the Physical Marketers should welcome and Surroundings - Atmospherics address complaints, as their feedback encompass physical surroundings, can provide valuable insights for future music, and crowd management, success. influencing customers' perceptions and decision. 3. POST-PURCHASE USE AND DISPOSAL OBSERVABLE AND COMMONLY - Information concerning product USED ATMOSPHERICS: usage and disposal have to be 1.​ Point-of-purchase displays observed by marketers. Marketers can 2.​ Color make use of the information as guide 3.​ Smell to find out potential problems and 4.​ Music opportunities. Most of the time, 5.​ Crowds consumers use or dispose a product in 6.​ Promotional deals these manners. 7.​ Stock out Situational Influences on Consumer Antecedents States - Everyone Behavior - Motivation to buy can be involved in marketing knows that when influenced by situational and the buyer is in the mood. situational factors, such as relaxation, shopping alone, or store crowdedness. They include: GROUPS THAT AFFECT BEHAVIOR: 1. Momentary moods - things as provisional states of depression or 1. Initiator - Initiates the buying high excitement. decision. 2. Momentary condition - These are 2. Influencer - Influences the buying such things as being tired, feeling ill, decision through their opinion. and so on. 3. Decider - Has the authority to make the purchase decision. Psychological Influences on 4. Buyer - Ultimately makes the Consumer Behavior - Human purchase psychology has an important role to play in manipulating the consumer's Roles and Status - Status is the preferences and likes or dislikes for a position a person occupies in a specific product and services. particular situation, and everyone holds multiple statuses and performs Perception - Consumer perception of associated roles. a product and brand significantly influences their buying decision. Family - plays a significant role in shaping an individual's preferences Learning - experiential process that and behavior. changes consumer behavior. TWO PRIMARY TYPES OF FAMILY Values, Beliefs and Attitudes - INFLUENCES: Individuals have specific beliefs and 1.​ Family of Orientation attitudes about products, which 2.​ Family of Procreation significantly influence their purchasing decisions. Social Class - influences consumer buying decisions, as it reflects where Socio-Cultural Influences on an individual stands within society. Consumer Behavior - Individuals are social beings who live in a complex Culture - encompasses the beliefs, environment among people with customs, rituals, and practices varying buying behavior. followed by a particular group of people. Reference Group - group that an individual desires to associate with and Subculture - categorize individuals be identified as a member. more specifically based on shared customs and beliefs. Personal Influences on Consumer Behavior - Personal factors refer to the individual characteristics of consumers that significantly influence their buying behaviors. Age - People’s preferences and needs Liquid Assets and Savings of the change as they move through different Consumer - The liquid assets of a stages of life. consumer significantly impact their buying behavior. Gender - plays a significant role in shaping consumer buying behavior as The Business Market - distinct from men and women have different needs. the consumer market. It consists of organizations that purchase goods and Education - significantly influences services. consumer behavior as it affects individuals' outlook and judgment. TYPES OF BUSINESS MARKET: 1.​ Industrial Markets Occupation - significantly influences 2.​ Resale Markets their buying behavior as the nature of 3.​ Government Markets their job affects the products and 4.​ Institutional Markets brands they choose. THREE PRIMARY TYPES OF Lifestyle - the way an individual lives PURCHASING SITUATION: and interacts within society. 1. Straight Rebuy - Is a routine Economic Influences on Consumer purchase made by an industrial Behavior - Economic factors are the business buyer without adjustments. elements that impact the level of sales in the market and the financial position 2. Modified Rebuy - Involves of consumers. businesses changing product specifications, price, or terms due to Personal Income - significantly changing preferences or substitute influences buying patterns as it products. dictates purchasing power. 3. New Task - process where a Family Income - refers to the business purchases an exact product combined income of all family or service for the first time. members. Participants in the Business Income Expectations - An individual's Process - Business buying behavior is expectations about future income complex due to various participants levels significantly influence their and interests, as well as conflicting current buying behavior. requirements potential products, and seeking vendors to provide solutions. Consumer Credit - significantly influences buying behavior as liberal Initiators - Initiate the buying process credit terms encourage customers to for various departments. spend more on luxury items, durable goods, and shopping. Influencers - providing information Search of Supplier - The business and decision standards for capital buying process involves searching for equipment and component purchases. suppliers using directories, the internet, or other organizations. Deciders - have the power to choose a supplier, often working with major Proposal Solicitation - Suppliers are influencers or top management. solicited to submit proposals, which can range from salespersons to Users - individuals or groups who use detailed written presentations. a product. Selection of Supplier - The final Buyers - Companies often require the supplier is selected from a list of purchase department to handle all proposals by the buying organization's purchasing. selection team, based on their importance and the main attributes Gatekeepers - Controls information listed in the proposal. flow within a Decision Making Unit (DMU). 1. Quality of product 2. Delivery time Business Buying Process - differs 3. Ethical corporate behavior from consumer buying due to unique 4. Reasonable price market characteristics and demands. It 5. Honest communication consists of new task buying involving 6. Past performance and reputation all stages. 7. Repair and maintenance service Problem Recognition - crucial stage Supplier Proposal - are evaluated in the business buying process where based on important criteria for each an organization's needs or problems decision-making unit member. are identified through internal or external cues. Order Routine Specification - includes final specifications, supplier, Description of General Need - The delivery time, quantity, price, and general need stage involves a team of repair/maintenance services, with buyers, engineers, and professionals payment and delivery details handled working together to agree on a desired by the purchasing department. product. Performance Review - crucial stage Specification of the Product - The in the business buying process, where organization in the business buying the buying organization evaluates the process organizes a comprehensive supplier's performance. list of technical specifications through value analysis by the engineering team. GROUP 2 CRITERIA FOR SUCCESSFUL SEGMENTATION: Market Segmentation - Segmentation ​ Segment Must be Measurable entails discovering what types of ​ Segment Must be Accessible consumers with diverse needs exist. ​ Segment Must be Substantial ​ Segment Must be Actionable THREE APPROACHES IN MEETING ​ Segment Must be Differentiable THE NEEDS OF CUSTOMERS: Demographic Characteristics 1. Undifferentiated strategy - all - Demographic variables entail but are consumers are treated as the same, certainly not limited to grouping with companies not making any consumers with regard to their gender, specific efforts to satisfy particular age, ethnic background, income, groups. occupation, education, household size, religion, generation, marital status, 2. Concentrated strategy - company nationality, and even social class. chooses to focus, specialize and target only one segment of the market while Psychographic Characteristics leaving other segments to competitors. - psychographic variables cover lifestyle, personality interests, 3. Differentiated strategy - company activities, opinions, values, and is trying to sell to two or more specific attitudes. market segments' consumers that are treated in different ways. Behavioral Characteristics - consist of product usage rates, brand TYPES OF SEGMENTATION loyalty, user status, or how long they APPROACHES: have been customers, and even benefits that consumers seek. 1. Needs based approach: Under the needs based approach, market is Geographic Characteristics segregated into different segments - is the practice of segmenting a according to similar nature of needs. campaign's target audience based on where they are located. Geographic 2. Profilers' approach: Profilers are variables include market size, region, descriptive in nature and measurable country, city, locality, population in terms of customer characteristics density and even climate. (such as location, nationality, age, sex, and income) which can be used to Business Market Segmentation update a segmentation exercise - Business markets can be subdivided based on marketer's objectives and product offerings. More accurately segmented markets increase chances of connecting with consumers and influencing preferred actions. Geographic Segmentation - Helps POSITIONING STRATEGIES: businesses identify target markets based on their location. Customer Benefits - commonly used strategy and consists in Segmentation By Size - Business to associating an object with a product Business (B2B) marketers target characteristic or customer benefit. customers based on size. Price/Quality - The price-quality Segmentation Industry - Strategy issue is so important in some product used by marketers to target specific category that it is a positioning strategy groups with specific needs and in itself. challenges. Application - Another positioning Business Needs Segmentation - approach is to associate the product Helps marketers connect with with its users or a class of users. businesses across geographies, sizes, and industries. Product User - This is a strategy of associating the product with a Selecting Target Market - Target particular type or class of user. marketing is the process of dividing a market into segments and focusing Product Class - The price-quality marketing efforts on specific customer issue is so important in some product segments that align with a company's category that it is a positioning strategy product or service offerings. in itself. Undifferentiated Targeting - Strategy Cultural Symbols - Many where a company selects the entire advertisers are using deeply market as one big market. entrenched cultural symbols to differentiate their brands from the Multiple Segment Targeting - competitors. Strategy where a company selects two or more distinct segments to target. Competitors - In this type of positioning strategy, an implicit or Concentrated Targeting - Focuses on explicit frame of reference is one or specific segments or niches in a more competitors. market to achieve a larger share. Perceptual Mapping - visual Micromarketing - is a marketing representation of the perceptions of strategy that tailors marketing customers or potential customers programs to meet the needs of specific about specific attributes of an locations and individuals. organization, brand, product, service, or idea. Repositioning - is a strategy to THREE LEVELS OF PRODUCT: change consumer perceptions of a brand, often due to a less attractive 1. Core Customer Value - The basic current position. benefit the customer seeks. BENEFITS OF REPOSITIONING: 2. Actual Product - Transform the ​ Stronger competitive position identified core customer value into the ​ Enhanced sale product, including features, quality, ​ Clearer target market brand, and packaging. ​ Better aligned to present market needs 3. Augmented Product - This round ​ Possible media attention out the three levels of product built around the core customer value and REPOSITIONING STRATEGIES: the actual product. ​ Image Repositioning ​ Product Repositioning Consumer Products - can be used ​ Intangible Repositioning without further commercial ​ Tangible Repositioning and engineering processes. CHALLENGES OF REPOSITIONING: 1. Convenience Products: Frequent, ​ Development Costs low-effort purchases (e.g., soap). ​ Significant Costs Of 2. Shopping Products: Requires Re-Educating The Market comparison (e.g., clothes, appliances). ​ Loss of Current Sales 3. Durable Products: Long-lasting ​ Confused positioning goods (e.g., cars, furniture). ​ Decision of repositioning 4. Non-Durable Products: Quickly against a new offering consumed (e.g., food, drinks). ​ Competitive actions 5. Specialty Products: Unique, ​ Brand risk high-effort (e.g., luxury cars). 6. Unsought Products: Not actively sought (e.g., insurance). GROUP 3 7. Services: Intangible (e.g., transportation & barbers). Product - package of physical and psychological benefits designed to Industrial Products - Used as inputs satisfy consumer needs and wants. by manufacturing companies for further processing. 1. Materials and Parts: Includes PRODUCT LINE EXPANSION component materials (e.g., iron, STRATEGY: cement) and component parts (e.g., ​ Life Cycle motors, tires). ​ Market Opportunities 2. Capital Items: Long-lasting goods ​ Customer Needs for production (e.g., factory buildings, ​ Customer Loyalty machinery). 3. Supplies: Short-term goods for PRODUCT LINE EXTENSION production (e.g., nails, lubricants, STRATEGY: office supplies). ​ Products in New Areas 4. Business Services: Services that ​ Products for New assist production (e.g., maintenance, ​ Demographics legal consulting). ​ Products at New Price Points ​ Products for New Needs Product Mix or Product Assortment - refers to the total number of product Product Differentiation - Creating a lines a company offers to its unique product identity customers. ADVANTAGES: ​ Width - Number of product lines ​ Creates Value ​ Length - Total number of ​ Non-Price Competition products across lines. ​ Brand Loyalty ​ Depth - Variations within a ​ No Perceived Substitute. product line ​ Consistency - Relatedness of TYPES OF PRODUCT product lines in production or DIFFERENTIATION: use. 1.Product Form Product Line - is a distinct set of 2.Product Features products that a company offers, which 3.Performance quality of the product are closely related by function, 4.Product Durability customer group, market, or price 5.Product Reliability range. 6.Product Style 7. Service FOUR TYPES OF BRANDING: ​ Individual, brand names Product - A company’s tangible or ​ Family brand names intangible offering. ​ Product-line brand names ​ Corporate brand names. Brand - Built through trust, perception, and experience. Brand Equity - Value derived from awareness, preference, and loyalty. COMPONENTS OF BRAND EQUITY: Guarantees - Promises high product quality. ​ Brand Awareness (1) Aided Awareness (2) Top of mind Warranties - Assurance against awareness defects, enhancing trust and loyalty. ​ Brand Association ​ Perceived Quality Service - intangible offerings. ​ Brand Experience ​ Brand Preference CHARACTERISTICS OF SERVICE: ​ Brand Loyalty ​ Intangibility ​ Variability Brand Personality - is the unique and ​ Inseparability lasting personification of a brand. ​ Perishability BRANDING STRATEGIES: TYPES OF SERVICE OFFERINGS: ​ Product Line Extension: 1.Pure tangible good (e.g., Variants in the same category toothpaste). ​ Multi-Brand: Competing 2.Tangible good with services. (e.g., brands in the same market. cellphone). ​ Brand Extension: New 3.Hybrid (goods + services, e.g., categories under an existing dining). brand. 4. Major service with accompanying ​ New Brand: Entirely new minor goods and services (e.g., air product lines or markets. travel with additional services). 5. Pure service (e.g., babysitting & Packaging - Protects, attracts, and psycotherapy). informs. DIFFERENTIATORS OF SERVICE: BENEFITS OF PACKAGING: ​ Ordering ease ​ Protects Products ​ Delivery ​ Attracts Customers ​ Installation ​ Provides Information ​ Customer training ​ Reinforces Branding and Logo. ​ Customer consulting ​ Maintenance and repair Labeling - Provides details like ingredients, instructions, and branding. SERVICE MARKETING STRATEGIES: TYPES OF LABEL: ​ Dry Peel Labels ​ Referrals ​ Booklet Labels ​ Education ​ Reseal Labels ​ Demonstrations ​ Prime Labels ​ Industry Specialization ​ Social Media TYPES OF NEW PRODUCTS: GROUP 4 ​ New-to-the-world ​ New product line Price - is the value assigned to a ​ Addition product or service that consumers pay ​ Improved to obtain it. ​ Repositioned ​ Lower-cost. Customer View - Customers seek to satisfy their needs by purchasing NEW PRODUCT DEVELOPMENT products, either as end-users or (NPD) PROCESS: businesses buying raw materials. 1.​ Idea Generation Society’s View - The monetary 2.​ Idea Screening system enables purchasing and wealth 3.​ Concept Testing accumulation, with prices significantly 4.​ Marketing Strategy influencing economic health. 5.​ Business Analysis 6.​ Product Development Price reflects perceived value and is 7.​ Test Marketing vital for businesses for several 8.​ Commercialization reasons: STANTON’S SIX STAGES: 1. Profit Margins - Higher prices can increase profit per unit but may reduce 1. Awareness Stage - Learning about sales volume. the product. 2. Sales Volumes - Price changes 2. Interest and Information Stage - affect sales; increases may reduce Seeking more information. volume slightly, while decreases can significantly boost sales. 3. Evaluation Stage - Assessing suitability. 3. Positioning - Price influences perceptions of quality and brand 4.TrialStage- Testing the Product. reputation. 5. Adoption Stage - Purchase 4. Market Share - Competitive pricing decision. can attract customers and build loyalty, allowing for future price adjustments. 6. Post-Adoption Behavior Stage - Building loyalty and advocacy. 5. Loss Leaders - Some businesses price below cost to draw in customers and encourage repeat purchases of higher-margin items. PRICING OBJECTIVES: Premium Pricing - ideal for new products and small businesses, 1. Survival - Prices may be set to involves charging higher prices than cover costs during intense competition. competitors for high-quality, uniquely branded goods. 2. Maximizing Current Profits - Companies aim to maximize profits by PREMIUM PRICING IS HIGHLY analyzing demand and supply. EFFECTIVE IN THE FOLLOWING CONDITIONS: 3. Capturing Market Share - Companies use low pricing to gain 1. Early introduction - Premium market share. pricing works well during a product’s initial market launch. 4. Market Skimming - This involves setting high initial prices for innovative 2. Uniqueness - Small businesses products. with unique products can differentiate themselves by charging higher prices 5. Product-Quality Leadership - and building a reputation for quality. Prices are set based on perceived quality, with luxury brands. 3. Luxury products - Consumers distinguish that the product is a lavish Setting the Price of the Product - product and has remarkably high Setting product prices is an ongoing quality or elite design. process; companies must continually research their market and adjust prices 4. Strong barriers to entry - accordingly to ensure profitability. Establishing a product as a premium requires significant investment, Consideration in Price Setting - creating a high barrier to entry for Choosing a pricing strategy can be competitors. challenging due to its significant impact. 5. Limited production - Limited product availability can create FIVE FACTORS: perceived uniqueness and value. ​ Cost ​ Customers 6. No substitutes - Aggressive legal ​ Competition action against copycat products can ​ Tiered Pricing deter competition and protect brand ​ Odd Number Pricing uniqueness. Pricing Strategy - focuses on finding Penetration Pricing - uses low initial the optimal price for a product, shaped prices to rapidly gain market share, by market demand, product features, often for new products. competition, economic trends, and the four P’s. Economy Pricing - prioritizes low SEVERAL GEOGRAPHICAL prices by minimizing costs, attracting PRICING STRATEGIES: price-sensitive customers. ​ Point of Production Pricing Price Skimming - sets a high initial ​ Uniform Delivered Pricing price for a new product with a ​ Zone Pricing temporary competitive advantage. ​ Freight-Absorption Pricing OTHER PRICING STRATEGIES: Value Pricing - sets prices based on customer perceived value, not cost or Psychological Pricing - uses competition. numbers just below round figures to create a perception of lower cost. Price Adjustment - Adjusting prices, whether increasing or decreasing, is a Bundle Pricing - offers multiple difficult decision with potentially goods or services at a discount significant impacts on both businesses compared to individual purchases. and consumers. Product Line Pricing - uses different COMMON REASONS TO RAISE price tiers to reflect varying product PRICES: quality levels, justifying price differences based on features and 1. Inflation - During times of inflation, quality. companies necessitate increasing prices to sustain profitability. Optional Product Pricing - uses a low base price to attract customers, 2. Increased - costs When production then adds extra fees for optional costs for the company swell, they are add-ons, increasing overall revenue. expected to increase their prices to make up for the change in costs. Captive Product Pricing - uses a low price for the main product but REASONS FOR A DECREASE IN charges high prices for essential PRICE: complementary items. 1. Answer to competitor’s changes - Promotional Pricing - temporarily If a competitor drastically lowers its lowers prices to create a sense of price, a company may require doing urgency and value through perceived similarly to continue to be competitive. scarcity. 2. Center on growth - Companies Geographical Pricing - regulating a may reduce their prices to enhance product's sale price anchored in their market share or to support growth location to reflect shipping or satisfy of the market as a whole. the market-clearing price in that place. 3. Reduced costs - As production costs sink, companies can decide to drop off their prices also which may make them more competitive while making better their perception amongst customers.