PoM Exam Prep PDF

# Marketing ## Session 1 **Needs:** - Definition: Basic human requirements essential for survival or well-being. They motivate consumer behavior. - **Example:** Companies selling bottled water meet the need for hydration. **Wants:** - Definition: Specific forms of needs shaped by culture, personal...

# Marketing ## Session 1 **Needs:** - Definition: Basic human requirements essential for survival or well-being. They motivate consumer behavior. - **Example:** Companies selling bottled water meet the need for hydration. **Wants:** - Definition: Specific forms of needs shaped by culture, personality, or individual preferences. Companies differentiate themselves by appealing to wants. - **Example:** A person needs food but may want a gourmet meal from a specific restaurant. **Demands:** - Definition: Wants backed by purchasing power. It reflects the willingness and ability of consumers to pay for specific products or services. - **Example:** A consumer may want the latest smartphone but can only demand it if they have the financial means to purchase it. **Marketing Process: The Core Steps** - Understand the marketplace and customer needs - Design a customer-driven marketing strategy - Construct an integrated marketing plan (Product, Price, Place, Promotion) - Build strong relationships with customers - Capture value from (sales, loyalty, and brand equity) **Strategic Marketing** - Definition: Long-term planning to achieve sustainable competitive advantage. - Key components are market research, target market selection, value proposition, marketing objectives **Operational Marketing** - Definition: Day-to-day execution of marketing strategies. Key component: 4P's, Product, Price, Promotion, and Place **Needs, wants, and demands are fundamental concepts in marketing?** ## What is marketing, what can be marketed? Marketing process? - Marketing is a process aimed at attracting potential customers, providing them with value, and making sales for a product, service, or idea. - Through marketing, messages that address the needs and desires of the target audience are created, and communication is established through appropriate channels. Things that can be marketed are not limited to products or services; experiences, ideas, people, places, and even brands can also be marketed. - The marketing process typically consists of four stages: - Market research and analysis, followed by defining the target audience and developing a strategy. - The marketing mix (product, price, distribution, and promotion) is planned and implemented. - The final stage involves performance evaluation and process improvement based on feedback. ## Strategic marketing and operational marketing - **Strategic Marketing:** Activities focused on the bigger picture, such as market analysis, target audience selection, competitive advantage creation, and branding, all aimed at achieving the company's long-term goals. It seeks to establish a strong market position and ensure sustainable growth. - **Operational Marketing:** Shorter-term activities that implement strategic plans on a daily basis. Tactical efforts like advertising campaigns, promotions, sales activities, and social media management fall under operational marketing. Operational marketing manages daily efforts to achieve strategic marketing goals. ## Session 2 **Marketing Orientation** - Definition: A business approach where a company prioritizes understanding and meeting customer needs and desires through its products and services. Instead of focusing only on production or sales, the company puts the customer at the center of its decisions and activities. - Key points: - **Customer-centric Focus:** The primary goal is to fulfill customer needs - **Market Research:** Ongoing research is essential to understand shifting consumer behaviors and preferences. - **Value Creation:** Businesses aim to create and deliver superior value to customers. - **Competitive Advantage:** By focusing on customer needs. Companies gain an edge over competitors. **Customer-Centered Approach** Is a business philosophy where all strategies and activities are centered around understanding and fulfilling customer needs, wants, and expectations. ## Production Orientation - Definition: Customers will favor products that are available and highly affordable. Focus on improving production and distribution efficiency. Production orientation means the business focused on efficiently building a quality, rather than what a customer wants. - **Characteristics:** - Innovation - Internal research and development - Approach is suitable when market demand is higher than supply - Customer awareness - Continuous improvement ## Sales orientation - Definition: A business only focuses on convincing customers to buy its products and services rather than taking into consideration the actual needs of customers. - **Focus on:** - Advertising and marketing instead of quality - Abilities of the Sales Force - Creating massive advertising campaigns to overcome competition **Marketing, Production, Product, and Sales Orientations?** - **Marketing Orientation:** This approach centers on understanding and meeting customer needs and wants. Products or services are designed and marketed according to customer expectations, aiming to provide value and gain a competitive edge. - **Production Orientation:** Focused on cost reduction and high efficiency, this strategy involves mass production and low-cost solutions to reach a broad audience. It's often used in industries with high demand and a cost-centered focus. - **Product Orientation:** This approach emphasizes product quality and features to attract customers. The business prioritizes making the product exceptional rather than focusing directly on customer needs. - **Sales Orientation:** Emphasizing persuasive sales and promotional activities, this strategy involves aggressively marketing products to customers, aiming to boost sales volume. ## Session 3 **Consumer Behavior Influences:** - **Cultural:** refers to share values, customs and behaviors in a group of people, which is effecting their customer behavior. - **Example:** Mesela cocacola during ramadan makes advertisement about iftar meals in Middle-Eastern countries. - **Social:** refers to impact family, friends, social media or social status can be effected by the customers behaviour. - **Example:** For instance a teenager can influence by his friend and get a new pair of sneakers. - **Personal:** Effects customers by their individual status such as age, gender, occupation, lifestyle, income and personal preferences. - **Example:** For instance, a middle-aged professional may prefer purchasing high-quality Nike business casual shoes that reflect their career status and personal taste, while a college student might opt for more affordable and trendy Nike sneakers to fit their budget and lifestyle. - **Psychological:** Psychological influences on consumer behavior involve internal factors such as motivation, perception, beliefs, attitudes, and learning processes that affect an individual's purchasing decisions. - **Example:** For instance, a consumer who believes that a particular brand of organic skincare products (like The Body Shop) is better for their health may be motivated to purchase those products over conventional brands, reflecting how personal beliefs and attitudes can shape buying behavior. **Consumer Buying Decision Process: 7 Stages** 1. Recognition of a need 2. Description of Desired Characteristics 3. Determination of Desired Characteristics 4. Search for Qualified Sources 5. Acquisition & Analysis of proposals 6. Evaluation & Selection 7. Performance Feedback & Evaluation **Irrational Consumer Behaviour** - Sales orientation is as a sales approach where a business only focuses on convincing customers to buy its products and services rather than taking into consideration the actual needs of customers. - **Focus on:** - Advertising and marketing instead of quality - Abilities of the Sales Force - Creating massive advertising campaigns to overcome competition ## Session 4 **Marketing Environment** - **Microenvironment impacts day-to-day operations:** Company, suppliers, intermediaries, competitors, public, and customers. These factors directly impact day-to-day operations. - **1. Customers:** - **Impact:** Understanding customer preferences, behaviors, and feedback is crucial for businesses. Changes in consumer demand can influence product offerings, pricing strategies, and marketing campaigns. - **Example:** A sudden shift in consumer preference towards eco-friendly products may lead a company to modify its supply chain to source sustainable materials. - **2. Suppliers:** - **Impact:** Suppliers play a vital role in ensuring that a company has the necessary materials and resources to operate. Supplier reliability, pricing, and quality directly affect production schedules and costs. - **Example:** If a supplier raises prices or delays deliveries, it can disrupt production timelines and impact profit margins. - **3. Competitors:** - **Impact:** The actions and strategies of competitors can significantly affect a company's market position. Businesses must continually monitor competitors to adjust their own strategies accordingly. - **Example:** If a competitor launches a successful marketing campaign or introduces an innovative product, a company may need to enhance its marketing efforts or accelerate product development. - **4. Employees:** - **Impact:** The workforce is a critical component of the microenvironment. Employee morale, skills, and productivity levels can influence operational efficiency and customer service quality. - **Example:** High employee turnover can lead to increased training costs and a decline in service quality, affecting customer satisfaction. - **5. Intermediaries:** - **Impact:** Distributors, retailers, and agents help move products from the manufacturer to the consumer. Their effectiveness can impact sales and market reach. - **Example:** A strong relationship with distributors can lead to better shelf placement in stores, while poor relationships may hinder sales. - **6. Publics:** - **Impact:** Various public groups (media, government, local communities) can influence a company's reputation and operations. Positive media coverage can enhance brand image, while negative press can have detrimental effects. - **Example:** A company may need to adapt its practices in response to public concerns about environmental issues, leading to changes in operations or product development. - **Macroenvironment forces shape long-term strategies:** Larger societal forces like demographic, economic, political, technological, cultural, and natural factors. These shape long-term strategies. ## Session 5: **Marketing Research** - **Definition:** The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation that an organization may face. It helps companies to take best marketing decisions - **Types:** - Exploratory - Descriptive - Casual - Primary research - Secondary research **Categories of Research** - **Quantitative Research:** Gathers large amounts of data that can be measured in a certain way and is usually used to support certain hypotheses. - **Qualitative Research:** Explores a topic from a descriptive or conceptual lens examining the subjective meaning behind customer beliefs and behaviors. ## Session 6 **Market segmentation:** analyze markets, choose target market. (Mesela norveçte halkın %90'ında elektrikli araba var o yüzden norveçte bir elektrikli araba launch etmek mantıklı değil %10 için değmez) - **Subgroupsları belirlemek önemli, karakteristik özelliklerine göre belirlemek önemli (demografic, strategic)** - **Market segmentation** is the process of dividing abroad consumer or business market into sub-groups of consumers based on shared characteristics. - **4 Key marketing strategy:** Which customers will we serve? - **1)** **Market segmentation:** - Dividing market groups based on their needs. - Divide the total market segments in smaller… - **2)** **Market targeting:** - Evaluating each market segmentes attractiveness and selecting the one or more segments to serve. - **How will we servet them?** - **3)** **Differentiation:** - Diğer competitorlardan farklı bir şekilde aradan sıyrılmak - **4)** **Positioning:** - Diğerlerinin yanında farkını göstererek ortaya çıkıp markette belli bir yere ulaşıp oraya yerleşmek (hermes zara gibi) **Segmentation:** - Enables more precise - Improves resource allocation - Enhances customer satisfaction - Improved product development - Increased customer loyalty - Better competitive positioning **Types of market segmentation** - **Demographic segmentation** - **Psychographic segmentation** - **Geographic segmentation** - **Behavioral segmentation** - **Demographic segmentation:** Dividing markets based on: age, gender, income, education, occupation, family size (example: Anthropologie-French Bohemian Chic Life Style) - **Geographic segmentation:** Dividing market based on geographical units:Nation,country,region,city,climate,population density (examples: mc donalds her yere özgü farklı ürünler çıkarıyor) - **Intermarket(cross-market) segmentation:** Forming segments of consumers who have similar needs and buying behaviors) - **Hyperlocal social marketing:** Location-based targeting to consumers in local communities or neighborhoods using digital and social media. - **Psychographic segmentation:** Dividing market based on: Lifestyle,attitudes,personality traits,values,interests -VALS model framework and segments. VALS is an acronym for values, attitudes and lifestyles. - **Behavioral segmentation:** Dividing market based on: purchase behavior,brand loyalty, usage rate, benefits sought, occasion-based buying (example:amazon prime :-Frequent shoppers offered Prime membership,-Tailored reccomendations based on browsing and purchase history.) **Requirements for effective segmentation** - **Measurable:** The size.purchising power and profiles of the segments can be mesured - **Accessible:** The market segments can be effectively reached and served. - **Substantial:**The market are large or profitable enough to serve. A segment should be the largest possible homogeneous group worth pursuing with a tailored marketing program. - **Actionable:** Effective programs can be designed for attracting and serving the segments. For example, although one small airline identified seven market segments, its staff was too small to develop separate marketing programs for each segment. - **Differentiable:** The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs. If men and women respond similarly to marketing efforts for soft drinks, they do not constitute separate segment **Market Targeting** - The process of evaluating each market segment's attractiveness and selecting one or more segments to enter. **Factors In Segment Evaluation** 1. Segment size and growth 2. Segment structural attractiveness 3. Company objectives and resources, **Targeting Strategies** 1. Undifferentiated (Mass) Marketing 2. Differentiated (Segmented) Marketing 3. Concentrated (Niche) Marketing:focusing on one or a few market segments for example rolex 4. Micromarketing (Loca lor Individual): Tailoring products and marketing to spesific individuals or locations for example Spotify personalized playlists, FitMYFoot custom footwear - **Undifferentiated (Mass) Marketing:** Targeting the whole market with one offer. Examples: Coca-Cola's classic marketing approach. Amazon. - **Differentiated (Segmented) Marketing:** Targeting several market segments with separate offers for each. - **Examples:** Nike uses differentiated marketing to target various customer segments with specialized products and marketing strategies.