Marketing Principles PDF

Marketing Principles Mark 101 Dr. Rumaila Abbas Building Strong Brands Seller’s Market Production: Focus on Company Buyer’s Market Examples? Marketing: Focus on Customer and Competition.  Customer focus...

Marketing Principles Mark 101 Dr. Rumaila Abbas Building Strong Brands Seller’s Market Production: Focus on Company Buyer’s Market Examples? Marketing: Focus on Customer and Competition.  Customer focused marketing Look at what the customer wants, and deliver a product that meets the needs of that customer. In a customer-based market, try to create product to meet that customer's need. What do Customers Want?  Marketing Environment The marketing environment includes the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers.  Types of Environments Micro and Macro 1 2 Microenvironment Macroenvironment consists of the actors consists of the larger close to the company societal forces that affect that affect its ability to the microenvironment— serve its customers— demographic, economic, the company, suppliers, natural, technological, marketing political, and cultural intermediaries, forces. customer markets, competitors, and publics.  The Marketing Environment (External Influences) Economic Conditions ▪ Interest rates, inflation, exchange rate (the value of the US $) ▪ Growing economy usually leads to increased demand ▪ Shrinking economy usually leads to decreased demand ▪ Not always, however (e.g., flour, auto repair, home improvement)  The Marketing Environment (External Influences) Competition ▪ Direct (inter-product) ▪ Indirect (product substitute) ▪ Total-dollar (alternative gratification)  The Marketing Environment (External Influences) Social, Cultural and Demographic Influences ▪ Language (English, French, other), spelling (color, colour), expressions (beanie, toque) ▪ Sub-cultures: skaters, hipsters, mountaineers ▪ Demographics: age, gender, ethnicity, income, education, occupation, family life- cycle ▪ Demographic changes are usually easy to predict  The Marketing Environment (External Influences) Technology Influence ▪ Technology is evolving very quickly; new discoveries, inventions, and innovations ▪ Smartphones, tablets ▪ Internet as a preferred communication channel ▪ Rise of Consumer Generated Content (on Facebook, Twitter, YouTube, Instagram etc.) ▪ Crowdsourcing (Threadless, Lego)  The Marketing Environment (External Influences) Political, Legal and Regulatory Influencer ▪ Political players: government (national, provincial, municipal), lobbyists, interest groups, “grass roots” organizations ▪ Industries are differentially sensitive ▪ Adherence to legislation and regulation (e.g., Competition Act, Federal Trade Commission) Marketing Environment How did companies adjust their marketing strategies in the recent marketing environment (in the face of a pandemic)? The Hershey bar started out with one price point-- $0.05.And the company had a business model that kept the chocolate bar at $0.05 every year! Question: if you're keeping the price constant, or static, what has to change? Opportunity? Think of Snickers and the Mars bar.. Ingredients? Most expensive ingredient in a chocolate bar? A bigger bar than the smaller Hershey bar--and price it at much higher level, $0.10. Hershey’s Response? Innovate! ▪ Innovated - Kisses ▪ Bought new companies ▪ Priced up the bar to $ 0.10 Now what do you think the consumer did here, right? Were they excited?  Marketplace is dynamic!! Consumers are going to want new things. Consumers are going to want old things. Your company is going to change. https://www.youtube.com/watch?v=AfAzUAxWELU  At its core, PESTEL analysis is a framework to break down and examine the large external forces that affect every business. The acronym represents 6 categories of factors to consider: Political Economic PESTEL Social Technological Environmental Legal Tesla Political​ Government support for auto manufacturers​ Incentives for purchasing electric vehicles​ Trade regulations for components like their batteries (China, Japan, South Korea)​ Economic​ Price of materials​ Growing shifts in consumer preference to purchasing electric vehicles​ Renewable energy costs decreasing​ Low interest rates for purchasing​ Social​ Growing interest in environmental sustainability​ Awareness of carbon emissions​ Access to highly skilled engineering talent​  Technological Environmental Legal Emergence of Need for reduction of Intellectual property autonomous vehicles carbon emissions protection Decreased Need for ways to dependence on Dealership model utilize renewable vehicle ownership regulations energy through ride sharing Expansion of Increase in electric environmental Antitrust laws vehicle options programs  Midterm ALL Material covered in class including week 6 and corresponding book chapters MCQs – 30 questions In class through laptops