BSc Psychology - Fundamentals of Marketing and Consumer Behaviour PDF

BSc Psychology 1. Course: Fundamentals of marketing and consumer behaviour 2. Unit: 1 Introduction 3. Module: 2 Part 1: Core marketing concepts and marketing mix. 1. Introduction to Core marketing concepts and Types of Marketing Mix  Learning Objectiv...

BSc Psychology 1. Course: Fundamentals of marketing and consumer behaviour 2. Unit: 1 Introduction 3. Module: 2 Part 1: Core marketing concepts and marketing mix. 1. Introduction to Core marketing concepts and Types of Marketing Mix  Learning Objectives By the end of this module you will be able to: 1. Describe the concepts of marketing 2. Explain Marketing Mix  Marketing Concepts Marketing concept involves using data to analyze customer needs and desires, developing strategies The marketing that satisfy and achieve organizational goals. concept is based on the “right” Needs principle. Experience Wants Products & services Demands Marketing Concepts Need is a state of felt deprivation. The need may Needs be physiological, learned, or emotional, or even passive or active. Want is a desire for a specific satisfier of need. Wants Wants are shaped by social culture, social class, and individual personality. Demand is a human want that is backed by Image source: https://rawpixel.com/ Demands ability and willingness to buy. Demand can’t imply a demand when it lacks buying ability. Products & Product is a tangible. Service is intangible. Services Experience is something that customers get Experiences after the products and services. Marketing Mix According to Philip Kotler, he defines, “The marketing mix is the set of marketing tools the firm uses to pursue its marketing objectives in the target market”. The concept of 4Ps is driven by manufacturing based marketing decisions. Product Price Place Promotion 4 P’s of Marketing Mix 1. Product: The term 'product' is defined as a bundle of attributes capable of exchange or use, usually a mix of the tangible and intangible forms. Thus, Image Source: https://openverse.org/ goods and services are two types of the product. 2. Price: Price is the amount consumers would pay for a product or service. 4 P’s of Marketing Mix 3. Place: Place considerations focus on how and where to deliver the product to the consumer most likely to buy it. 4. Promotion: Promotion includes Image source: https://commons.wikimedia.org/ advertising, public relations, many other promotional strategies (including television and print advertisements) internet, social media advertising and trade shows.  BSc Psychology 1.Course: Fundamentals of marketing and consumer behaviour 2.Unit: 1 Introduction 3.Module: 2 Part 2 Marketing Management Orientations Introduction to Marketing Management Orientations  Learning Objectives By the end of this module you will be able to: 1. Identify the various Marketing Management Orientations Marketing Management Orientation Marketing management designs strategies that will engage target customers and build profitable relationships with them. Concepts or Orientation Production Product Selling Marketing Societal  Marketing Concepts or Orientation Production Product Selling Marketing Societal The production concept emerges out of the production Image courtesy: https://openverse.org/ orientation of the firm. The concept holds that consumers will favor products that are available and highly affordable. It is based on the idea that the more we make, the more profitable we become.  Marketing Concepts or Orientation Production Product Selling Marketing Societal The product oriented market holds the consumers that will favor products that offer the Image courtesy: https://openverse.org/ most quality, performance and innovative features. Under this concept, marketing strategy focuses on making continues product improvements. This is called Technology Push Model.  Marketing Concepts or Orientation Production Product Selling Marketing Societal The selling concept is typically practiced with unsought goods-those that buyers do not normally think of buying, such as life insurance or blood donations. These industries must be good at tracking down prospects and selling them on a product's benefits. It focuses on creating sales transactions rather than on building long-term, profitable customer relationships.  Marketing Concepts or Orientation Production Product Selling Marketing Societal Under the marketing concept, customer focus and value are the paths to sales and profits. Instead of a product-centered make-and- sell philosophy, the marketing concept is a customer-centered sense-and-respond philosophy.  Marketing Concepts or Orientation Production Product Selling Marketing Societal The societal marketing concept questions whether the pure marketing concept overlooks possible conflicts between consumer short- run wants and consumer long-run welfare.  BSc Psychology 1. Course: Fundamentals of marketing and consumer behaviour 2. Unit: 1 Introduction 3. Module: 3 Marketing Management Process Introduction to Marketing Management Process  Learning Objectives By the end of this module you will be able to: 1. Identify the stages in the Marketing Management Process Marketing Management Process Construct an Understand the Design a integrated marketplace and customer value- marketing customer needs driven marketing program that and wants strategy delivers superior value Image source: www.pxfuel.com Engage Capture value customers, build from customers profitable to create profits relationships and and customer create customer equity delight 1. Understand the marketplace and customer needs and wants Before we can start the marketing process, we need to have a good idea of what our marketplace looks like. This means answering Image source: https://openverse.org/ some basic questions about our customers, like who they are, their income and purchasing power, and how much they’re likely to spend (particularly on your products or services). 2. Design a customer value-driven marketing strategy Marketing strategy refers to a business’s overall “game plan” to focus its limited resources in order to reach prospective customers and turn them into paying customers, hopefully for the Image source: https://openverse.org/ long run. 2. Design a customer value-driven marketing strategy It’s said that there are two basic types of marketing strategies: -a product-driven, “build-it-and-they-will-come” Image source: https://openverse.org/ strategy and -a customer-driven strategy, in which we analyze prospective consumers and then only create something that they want or need. 3. Construct an integrated marketing program that delivers superior value Customer value is the ratio between the perceived benefits and costs incurred by the customer in acquiring the products or services. Image source: https://openverse.org/ 3. Construct an integrated marketing program that delivers superior value But “value” from the customer’s perspective is a complex term, because we’re really considering four different values types: 1. Functional value 2. Monetary value 3. Social value 4. Psychological value 4. Engage customers, build profitable relationships and create customer delight The bottom line is that profitable customer relationships are the “secret sauce” of any business. This step in the marketing process is where marketers acquire, keep, and grow Image source: https://openverse.org/ customer relationships. When customers have a positive relationship with a company or its products or services, they’re more likely to become repeat buyers. 5. Capture value from customers to create profits and customer equity The goal of successful customer relationship management (CRM) is creating high customer equity than the potential profits a company earns from its current and potential customers. Image source: https://www.behavioraleconomics.com/tag/behavio ral-finance/ 5. Capture value from customers to create profits and customer equity It’s a relatively simple concept: 1. Increasing customer loyalty results in higher customer equity. 2. Increasing customer equity is the goal of Image source: https://www.seobility.net/en/wiki/Retention_Rate marketers because it’s a bellwether (something that leads or indicates a trend) for financial success. Expanded Model of the Marketing Process Image source: Principles of Marketing Textbook- 17th edition by Philip Kotler, Gary Armstrog, Prafulla Y. Agnihotri  BSc Psychology 1.Course: Fundamentals of marketing and consumer behaviour 2.Unit:1 Introduction 3.Module:4 The new digital age  Learning Objectives By the end of this module you will be able to: 1. Know about the new digital ages New Digital Ages The digital age has fundamentally changed customers notions of convenience, speed, price, product information, service and brand interactions. This Photo by Unknown Author is licensed under CC BY-SA-NC As a result, it has given marketers a whole new way to create customer value, engage customer and build relationships. New Digital Ages Digital usage and impact continue to grow steadily. Direct digital and social media marketing This Photo by Unknown Author is licensed under CC BY-SA-NC several forms. These forms include online marketing, social media marketing, and mobile marketing. Online marketing This refers to marketing via the internet using company websites, online advertising and promotion, email marketing, online video, and blogs. This Photo by Unknown Author is licensed under CC BY-SA Social media and mobile marketing also take place online and must be closely coordinated with other forms of digital marketing. MCQ Which of the following best describes online marketing? A) Traditional print advertising and direct mail campaigns. B) Marketing strategies exclusively conducted through television commercials. C) Marketing via the internet using company websites, online advertising, email marketing, and social media. D) Marketing solely focused on in-person events and sponsorships. Correct Answer: C) Marketing via the internet using company websites, online advertising, email marketing, and social media. Online Marketing Websites and Branded Web Communities Online Marketing Online Advertising Email marketing Online videos Blogs and other online forums  Online Marketing Websites and Blogs and Online Email Branded Web Online videos other online Advertising marketing Communities forums Websites vary greatly in purpose and content. Some websites are primarily marketing websites, This Photo by Unknown Author is licensed under CC BY-NC designed to engage customers and move them closer to a direct purchase or other marketing outcome. Learners can check this marketing website: https://www.narang.com/  Online Marketing Websites and Blogs and Online Email Branded Web Online videos other online Advertising marketing Communities forums Brand community websites do much more than just sell products. Instead, their primary purpose is to present brand content that engages consumers and creates customer-brand community. Learners can check this website: https://www.1mg.com/  Online Marketing Websites and Blogs and Online Email Branded Web Online videos other online Advertising marketing Communities forums Online advertising are display ads and search-related ads. This Photo by Unknown Author is licensed under CC BY Together, display and search-related ads account for the largest portion of firms digital marketing budgets.  Online Marketing Websites and Blogs and Online Email Branded Web Online videos other online Advertising marketing Communities forums Email marketing remains an important and growing digital marketing tool. This Photo by Unknown Author is licensed under CC BY-SA “Social media is the hot new thing,” says one observer but email is still the king. Around the world, more than 200 million emails are sent out every minute of every day.  Online Marketing Websites and Blogs and Online Email Branded Web Online videos other online Advertising marketing Communities forums Another form of online marketing is posting digital video content on brand websites or on social media sites such as YouTube, Facebook, etc. Some videos are made specifically for the web and social media.  Online Marketing Websites and Blogs and Online Email Branded Web Online videos other online Advertising marketing Communities forums Brands also conduct online marketing through various This Photo by Unknown Author is licensed under CC BY digital forums that appeal to specific special-interest groups and brand communities. Blogs are online forums where people and companies post their thoughts another content, usually related to narrowly defined topics. MCQ 1. What are the types of Online marketing? a) Websites and Branded Web Communities b) Email marketing c) Blogs and other online forums d) All of the above Answer: All of the above Social Media and Mobile Marketing These online social networks cater to the needs of smaller communities of like-minded people, making them ideal vehicles for marketers who want to target special-interest groups. This Photo by Unknown Author is licensed under CC BY There’s at least one social media network for just about every interest, hobby, or group. Advantages Social Media Marketing 1. Social media are targeted and personal they allow marketers to create and share tailored brand content with individual consumers and customers communities. 2. Social media are interactive, making them ideal for starting and participating in customer conservation and listening to customer feedback. Advantages Social Media Marketing 3. Social media are also immediate and timely. 4. Social media can be very cost-effective. This Photo by Unknown Author is licensed under CC BY 5. Social media is their engagement and social sharing capabilities. 1. Read this Paper on Social Media Marketing specific to Healthcare in India: https://ijper.org/sites/default/files/IndJPhaEdRes_52_2_207.pdf 2. Read this paper on “Health Care Professionals in the Digital Landscape in India” https://www.ijmh.org/wp-content/uploads/papers/v5i7/G1258035721.pdf Fill in the blanks 1. These online _______ networks cater to the needs of smaller communities. Answer: social Mobile Marketing Mobile marketing features marketing messages, promotions and other marketing content delivered to on- the-go consumers through their mobile device. This Photo by Unknown Author is licensed under CC BY-NC-ND Marketers use mobile marketing to engage customers anywhere, anytime during buying and relationship building process. The widespread adoption of mobile device and the surge in mobile web traffic have made mobile marketing must for most brands.  BSc Psychology 1. Course: Fundamentals of marketing and consumer behaviour 2. Unit: 1 Introduction 3. Module: 1 Marketing & Marketing Management, importance, value and scope of Marketing Management 1. Introduction to Marketing Management 2. Evolution of Market 3. Objective, Approaches, Functions, importance and scope of Marketing Management  Learning Objectives By the end of this module you will be able to: 1. Explain Marketing and Marketing Management. 2. Describe the Objective, Approaches and Functions of Marketing Management 3. Illustrate importance, value and scope of marketing Marketing and Marketing Management Marketing is the most important function in the organization of a business unit. It is one of the most significant and fundamental aspects of Image source: https://pix4free.org/photo/1 all corporate operations. 5319/marketing.html Marketing management is a functional area of business management concerned with the general issue of consumer happiness.  Definition of Marketing Man is a social animal. Human needs and wants are shaped by interplay of various social force. Philip Kotler defines marketing as Born: May 27, 1931 (age 92) Chicago, Illinois, U.S. “Marketing is a social and managerial Known as Father of Modern Marketing More details: https://www.pkotler.org/ process by which individuals and groups obtain what they need and want through creating and exchanging products and value with other.” Evolution of Market The term ‘market’ is derived from Latin word called ‘marcatus’ which means trade, merchandise, traffic or place of business. Marketing is indeed an ancient art. This idea was later on changed by shifting the emphasis from “exchange” to “satisfaction of human Image source: www.freepik.com wants” which is known as modern marketing. Stages of Evolution The Barter The New Stone The pre- The Industrial System Age industrial period Period 6000 BC 10000 year back 1500-1700 1700-1800  Approaches of Marketing APPROACHES System Societal Managerial Commodity Institutional Functional Approach Approach Approach Approach Approach Approach Image source: https://www.publicdomainpictures.net/en/view- image.php?image=363822&picture=affiliate-marketing  FUNCTIONS OF MARKETING Functions Of Functions Of Facilitating Exchange Physical Supply Functions -Financing BUYING SELLING -Transportation -Risk Bearing Image source: https://www.wallpaperflare.com/marketing-services- abstract-concept-dark-version-business-wallpaper-agmyo -Storage -Market -Product Information -Planning Planning -Pricing -Contractual -Contractual -Branding -Assembling -Demand Creation -Packaging -Negotiation -Negotiation -Salesmanship -Advertising -Customer Support Services Importance of Marketing ❖Towards Society: a) Helpful in raising and maintaining the standard living of the community Marketing. b) Creates Employment Image source: https://pxhere.com/en/photo/1568213 c) Helpful in Development of an Economy ❖Towards Company: a) Helps in Transfer, Exchange and Movement of goods. b) Source of Income c) Source of new ideas  Scope of Marketing in the Organisation Advertising Marketing Channel of After-Sale Pricing and Sales Financing Research Distribution service Promotion Image source :https://openverse.org/  Scope of Marketing in the Organisation Advertising Marketing Channel of After-Sale Pricing and Sales Financing Research Distribution service Promotion 1. Marketing Research: Research has to be carried out in order to identify the customer’s needs, their tastes and Image source :https://openverse.org/ preferences, their interests, economic position, their paying capacity and effectiveness of certain advertisements. 2. Pricing: Pricing is extremely important since it directly affects an organization’s sales and profits.  Scope of Marketing in the Organisation Advertising Marketing Channel of After-Sale Pricing and Sales Financing Research Distribution service Promotion 3. Advertising and Sales Promotion: In this era of tough competition, the sales promotion and advertisements have become almost an inbuilt part of the marketing. It helps to make Image Source: https://www.publicdomainpictures.net/en/view- image.php?image=261385&picture=marketing-strategy the customer aware about the product, makes him curious about the product and thus promotes sales. 4. Channels of Distribution: Distribution channels are an integral part of a complex system that has evolved from cultural and social patterns in order to facilitate exchange transactions.  Scope of Marketing in the Organisation Advertising Marketing Channel of After-Sale Pricing and Sales Financing Research Distribution service Promotion 5. Financing: The term financing includes decisions like budgeting for marketing activities, obtaining the necessary funds Image source: https://www.thebluediamondgallery.com/ needed for operations and providing wooden-tile/f/financing.html financial assistance to customers so they can purchase the business products and services. 6. After-Sales Service: The furnishing of after sales service is very critical for the satisfaction of the customers.