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PRINCIPLE OF MARKETING and using a product and the cost of obtaining the product. LESSON1 Customer Satisfaction: Depends on a The world of marketing? product's perceiv...

PRINCIPLE OF MARKETING and using a product and the cost of obtaining the product. LESSON1 Customer Satisfaction: Depends on a The world of marketing? product's perceived performance in -Marketing as defined by the American delivering value relative to a buyer's Marketing Association or AMA is an expectations. organizational function, and a set of Exchange: Occurs when people decide to processes for creating, communicating, and satisfy needs and wants through exchange. delivering value to customers and for Transaction: Consists of a trade of values managing customer relationships in ways between two parties. that benefit the organization and its Relationship Marketing: Marketing stakeholders. consists of actions taken to obtain a desired response from a target audience toward Promotional Strategy some product, service, idea, or other object. >Push sales-driven: Trade shows Market: Consists of all potential customers Sales, Point of Sale Display, Demo videos sharing a particular need or want who might >Pull marketing-driven: Advertising be willing and able to engage in exchange o Email marketing, Word of mouth, Social satisfy that need or want. media THE DIFFERENT MARKETING CONCEPT Digital Marketing Models - PRODUCTION CONCEPT -E-commerce model Brands that focus on mass production keep -Branding model costs low and sell to a large customer base. -Online Information model Each item sold attracts a low-profit margin, -Lead Generic model but selling at a very high volume ensures -Content Publishers' model that profit remains high. CORE CONCEPT OF MARKETING - PRODUCT CONCEPT -Need: state of felt deprivation The product concept emphasizes that -Wants: Human needs are shaped by buyers prioritize a product's quality, culture and individual personality. features, and benefits. Product-focused -Demands: Human wants are backed up by buyers seek innovation and uniqueness buying power. rather than solely seeking the lowest price. -Product: Anything that is offered to a market to satisfy a need or want. - SELLING CONCEPT -Service: Activities or benefits offered for The selling concept is founded on the belief sale that are essentially intangible and do that customers will not purchase an not result in the ownership of anything. adequate quantity of a product or service -Value: Customer's estimate of the unless they are actively persuaded to do so. product's overall capacity to satisfy his or her needs. - MARKETING CONCEPT Customer Value : The difference between They understand what problems keep their the values the customer gains from owning customers awake at night and develop products and services to solve those issues. -SOCIETAL MARKETING CONCEPT ENVIRONMENTAL ANALYSIS This concept emphasizes focusing on is the process of assessing and interpreting meeting customers' needs to solve their the information gathered through problems while ensuring no harm comes to environmental scanning. them. TARGET MARKET THE ROLE OF MARKETING IN a defined group most likely to buy a firm's OUR SOCIETY product. CORPORATE SOCIAL RESPONSIBILITY -While all businesses are expected to make Environmental Analysis( internal a profit for their growth and stability, these analysis)strength and weaknesses notable companies are the ones who 7p’s of marketing stepped up into their CSR game to - product showcase what is important in these trying - promotion times. - price - physical evidence SUSTAINABILITY - people - According to the United Nations - process Environment Programme (UNEP), both - place consumers and investors are being turned off by companies that ignore their 5 m’s of marketing environmental impact. Sustainable business - mission practices are an essential part of an - media organization's commitment to social and - measurement environmental responsibility. - money - message PYRAMID OF CSR - A model that suggests corporate social Environmental analysis( external responsibility is composed of economic, analysis) opportunities and threats legal, ethical, and philanthropic Pestle analysis responsibilities and that the firm's economic - political performance supports the entire structure. - societal - legal LESSON2 - economics MARKETING ENVIRONMENT - technological competitive, economic, political, legal - environmental regulatory, technological, and socio-cultural forces that surround the customer and affect The Ansoff Matrix the marketing mix. often called the Product/Market Expansion Grid, is a two-by-two framework used by ENVIRONMENTAL SCANNING management teams and the analyst the process of collecting information about community to help plan and evaluate growth forces in the marketing environment. initiatives. In particular, the tool allows stakeholders to conceptualize the level of risk associated with different growth Catering to a different customer segment or strategies. The Matrix is used to evaluate target demographic the relative attractiveness of growth Entering a new domestic market (regional strategies that leverage both existing expansion) products and markets vs. new ones, as well Entering into a foreign market (international as the level of risk associated with each. expansion) Product Development A business that firmly has the ears of a particular market or target audience may look to expand its share of wallets from that customer base. Think of it as a play on brand loyalty, which may be achieved in a variety of ways, including: Investing in R&D to develop an altogether new product(s). Acquiring the rights to produce and sell another firm’s product(s). Creating a new offering by branding a Market Penetration white-label product that’s actually produced The least risky, in relative terms, is market by a third party. penetration. When employing a market penetration strategy, management seeks to Diversification sell more of its existing products into In relative terms, a diversification strategy is markets that they’re familiar with and where generally the highest-risk endeavor; after they have existing relationships. all, both product development and market development are required. While it is the Increasing marketing efforts or streamlining highest risk strategy, it can reap huge distribution processes rewards – either by achieving altogether Decreasing prices to attract new customers new revenue opportunities or by reducing a within the market segment firm’s reliance on a single product/market fit Acquiring a competitor in the same market (for whatever reason). Market Development Related Diversification – Where there are A market development strategy is the next potential synergies that can be realized least risky because it does not require between the existing business and the new significant investment in R&D or product product/market. development. Rather, it allows a Unrelated Diversification – Where it’s management team to leverage existing unlikely that any real synergies will be products and take them to a different realized between the existing business and market. Approaches include the new product/market. LESSON3 Understanding Consumer Buying Social Influences on Consumer Buying Decision-Making Decisions Types of Consumer Buying Decisions Reference Groups - Routine Response Behavior -Groups that influence our behavior - Limited Decision Making Primary vs. Secondary membership groups - Extensive Decision Making Aspirational vs. Non-aspirational reference Consumer Involvement in Purchases groups What factors determine how involved you -Have you ever bought something are in a purchase? to fit into a group? - Previous experience, interest, perceived risk, situation, social Opinion Leaders visibility -Individuals who influence others' choices Factors Influencing Consumer Buying The Socialization Process (Individual) Decisions Socialization Process Cultural Influence on Buying -Passing down cultural values and norms -Culture shapes our behavior and choices. How might your cultural background Individual Influences: Gender and Age influence what you buy? -Gender and age can shape preferences Values and Consumer Choices Family Life Cycle and Buying -Values are beliefs about what is right, -Different family stages, different needs. good, or desirable. -Reflect on how your values affect your Personality and Purchasing buying decisions. -Personality affects reactions to products. Subcultures and Purchasing Self-Concept and Consumer Behavior -Subcultures share specific cultural -Ideal self-image vs. Real self-image elements -Can you think of a product popular within Lifestyle and Buying Decisions a subculture you belong to? - Activities, interests, and opinions define lifestyle Social Class and Consumer Behavior -Social class impacts preferences and Perception in Consumer Behavior access. -How we interpret stimuli affects our choices -Consumers have an image of what social class a store attracts and have an Selective Exposure understanding of what shopping should be -We notice some stimuli and ignore others. like in a store that appeals to their social class. The Socialization Stimulus Generalization and Process (Psychological) Discrimination Psychological Influences -Stimulus generalization: Responding -How do psychological factors shape your similarly to like stimuli. buying behavior? -Stimulus discrimination: Telling the Consider how mood or emotions have difference between similar products. affected your purchases Beliefs and Attitudes -Beliefs: Personal truths about the world. Marketing Implications -Attitudes: Consistent responses to objects of Perceptions or concepts. Perception in Marketing -Perception is how consumers see and CONSUMER DECISION-MAKING interpret information. PROCESS It can be influenced by marketing strategies. -A repetitive pattern in purchasing behavior. Understanding this can help marketers Selective Distortion and Retention influence decisions. -Selective distortion: Changing information 1. Need Recognition that conflicts with beliefs. -The first step is realizing you need or want -Selective retention: Remembering something. Can be triggered by internal or information that supports beliefs. external stimuli. 2. Information Search What is a Motive? -Internal search: Using memory for -​​A motive is what drives you to take action. information. In marketing, it's about understanding why -External search: Seeking outside consumers want to satisfy certain needs. information 3. Evaluation of Alternatives Maslow’s Hierarchy of Needs -Comparing different products or brands. -A theory categorizing human needs from Involves considering features, prices, and basic to complex quality. 4. Purchase Decision -The moment of choosing and buying a product.Influenced by information and personal preferences. 5. Post-purchase Behavior -Reflecting on the purchase after it's made. May involve cognitive dissonance or buyer's remorse. Evoked Set (Consideration Set) -A group of brands you consider when Learning in Consumer Behavior making a choice.Influenced by marketing -Learning influences changes in behavior and personal experiences. through experience. Cognitive Dissonance It affects how consumers respond to -The tension felt when actions don't align marketing. with beliefs. Often occurs after a purchase. LESSON4 Responsiveness: Will the segment react Understanding Target Markets and positively to targeted strategies? Strategies What is a market? Segmentation Bases for Consumer It's a group of potential buyers with needs Markets and wants. Geographic: Where do they live? Demographic: Who are they? (Age, gender, What is a target market? income) A target market is a specific group within Psychographic: What are their lifestyles and that market that a business aims to serve. beliefs? Behavioral: How do they behave towards Four Criteria of a Market products? Desire: Do they want the product? Benefit: What benefits do they seek from Buying Power: Can they afford it? products? Willingness: Are they ready to buy? Usage-Rate: How often do they use the Authority: Can they make the purchase product? decision? Steps in Segmenting a Market What is Market Segmentation? 1. Select a market or product category. It's the process of dividing a broad market 2. Choose a basis for segmenting. into specific subgroups. 3. Select segmentation descriptors. Why segment? To address different needs 4. Profile and analyze segments. and preferences effectively. 5. Select target markets. 6. Design marketing mixes. Importance of Market Segmentation More efficient advertising: Tailored Defining a Target Market messages for specific groups. A target market is a specific group that a Precise consumer needs: Understand and business aims to reach. It's defined based meet specific desires. on segmentation criteria. The marketing mix Accurate marketing objectives: Set clear is tailored to meet the needs of this group. and relevant goals. Improved resource allocation: Spend where Strategies for Selecting Target Market it counts. Better results: Achieve higher engagement 1. Undifferentiated Targeting Strategy and sales. Treats the market as one whole with no segments. Uses a single marketing mix. Criteria for Successful Segmentation Can be efficient but not always effective. substantiality: Is the segment large enough to be profitable? 2. Concentrated Targeting Strategy Identifiability and Measurability: Can you Focuses on one specific market segment. find and measure the segment? Develop a specialized marketing mix. Accessibility: Can you reach the segment Allows for a deep understanding of with marketing efforts? customer needs.  Understanding Market Position It's the consumer's perception of a brand compared to competitors. Influences buying decisions. Can be based on attributes, price, quality, and more. Product Differentiation It's a strategy to make a product stand out from competitors. Can be based on features, performance, or design. Aims to attract a specific target market. Perceptual Mapping 3. Multi-segment Targeting Strategy A visual tool to compare products based on Targets two or more distinct market consumer perceptions. Helps identify segments. Creates a separate marketing market gaps and opportunities. Can guide mix for each segment. Can increase market repositioning strategies. coverage and profits. What might be a challenge of a Positioning Bases multi-segment strategy? Attribute: Focus on product features. Price and Quality: Emphasize value or One-to-One Marketing luxury. Tailors marketing efforts to individual Use or Application: Highlight specific uses. customers. Builds personalized Product User: Target a particular user relationships. Utilizes customer information group. for customization. Product Class: Associate with a category. Competitor: Position against competitors. Forces Influencing One-to-One Emotion: Connect with customers' feelings. Marketing 1. Increasing diversity in consumer needs. Repositioning a Brand 2. Consumers are more demanding and Changing the market's perception of a have less time. product. Can be due to changing market 3. Decreasing brand loyalty among conditions or new strategies. Involves consumers. altering marketing mix elements. 4. Emergence of new media alternatives. 5. Demand for accountability in marketing spend. What is Market Positioning? It's how a product is perceived in the minds of consumers. Aims to establish a clear, unique, and advantageous position. Involves creating a specific marketing mix.