Introduction to Marketing - BA 100 - Fall 2024 PDF

Introduction to Marketing Day 1 - Key Definitions and Understanding the Market BA 100 Fall 2024 What is Marketing? “Activities, a set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value f...

Introduction to Marketing Day 1 - Key Definitions and Understanding the Market BA 100 Fall 2024 What is Marketing? “Activities, a set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners and society at large” - American Marketing Association To Buy or Not? Customers decide whether to buy by assessing: Comparative Benefits vs. Costs: weighing benefits of the product (features, functionality, and emotional appeal) against costs ( price, time, and effort spent acquiring it) Value: perceived benefits and the costs associated with the item. Can help benchmark customer’s Willingness to Pay. Marketing draws attention to benefits, which can increase WTP and/ or influence choice to buy Everything is Marketed Banks Food/Beverages Concerts Schools Airlines Clothing Insurance 5 The 5 P’s of Marketing Product Price Place Promotion People Product The goods or services offered to meet customer needs Includes: features, quality, branding, and packaging Price The amount of money customers must pay for the product. Must consider: profit, costs, demand, segmentation, market competition, market share objectives Place The channels through which the product is distributed and made available to customers Includes: 1. Distribution Channels: The paths through which products travel from the manufacturer to the end consumer, including direct sales, wholesalers, retailers, and online platforms. 2. Location: The physical or digital locations where products are sold, such as stores, marketplaces, or e-commerce websites. 3. Logistics: The planning and management of the transportation and storage of products, ensuring they are delivered efficiently and in good condition. 4. Market Coverage: Strategies that determine how widely a product is available, such as intensive (available everywhere), selective (available in specific locations), or exclusive distribution (limited to certain retailers). Promotion The activities that communicate the product's benefits and persuade customers to purchase Includes: advertising, public relations, social media, and sales promotions People Refers to everyone involved in the product's creation, sale, and customer experience Includes: employees and customers Referred to as an additional fifth “P” in some models  Which company would you rather buy basketball shoes from? What type of customer do you think would disagree with your brand choice? For what reasons? Difference in Brand Perception Why are Nike and Walmart able to sell similar products at drastically different prices? Marketing Research The process of gathering, analyzing, and interpreting information about a market, including information about the target audience, competitors, and industry trends. Helps businesses understand customer needs, preferences, and behaviors, allowing them to make informed decisions about product development, marketing strategies, and sales. Understanding Consumer Behavior Market research is used to best understand consumer needs and wants - their “behavior” Buyer Decision Process: need recognition to post-purchase behavior Influencing Factors: cultural, social, personal, psychological Can you think of any other influencing factors? A Successful Research Process Forms of Marketing Research Market research can involve surveys, interviews, focus groups, and analyzing existing data, providing valuable insights to guide marketing efforts.  5 Stages of the Consumer Decision Making Process 1 2 3 4 5 Recognition of Information Evaluation of Purchase Post-Purchase Need Search Alternatives Decision Evaluation  Focus Group Exercise with your Team 1. Select a product- a cosmetic item (i.e. mascara, lip gloss, hair gel) or an athletic shoe 2. Select one person to be the moderator 3. Moderator asks questions of the group -what do you like about this product. -what do you not like about the product -if you could design a new product, what features would you include -how much would you pay for this product -anything else A few moderators will present findings and recommendations Developing the Marketing Plan Define Your Objectives: Establish clear, measurable goals for what you want to achieve with your marketing efforts (e.g., increase brand awareness, drive sales, or grow social media following). Conduct Market Research: Gather information about your target audience, competitors, and market trends to identify opportunities. Develop Your Strategy: Determine the marketing mix (product, price, place, promotion) that will best reach your audience and achieve your goals. Create an Action Plan: Outline specific tactics, timelines, and resources needed to implement your strategy Monitor and Adjust: Regularly track progress using KPIs and be prepared to make adjustments to your plan based on what’s working.