Lecture Notes 1 & 2 PDF

Module 1 Inroduction to M&CV Marketing & Selling: The Differences Maketing: - Profit focus - Long term - Future focus Selling: - Volume focused - Short term - Now focused - Component of marketing Marketing types; market research, product design, prototypes, manufacturing, packaging, advertising. Mar...

Module 1 Inroduction to M&CV Marketing & Selling: The Differences Maketing: - Profit focus - Long term - Future focus Selling: - Volume focused - Short term - Now focused - Component of marketing Marketing types; market research, product design, prototypes, manufacturing, packaging, advertising. Marketing Centre of business decisions Involves getting right product to right people Total offering, not one product Market = Group of people with different needs and wants Market types - Geographic - Product - Demographic Value Customer’s assessment of the utility of an offering. Refers to offering’s total features, reputation, ideals Necessary for customer and seller Form utility (transforming raw material to usable product), place utility (Making product available to customers), time utility (Getting product to people at right time) or possession utility (Allowing customers to own or use product) utility. Value = Quality/Price Marketing Exchange Mutually beneficial exchange (Meet both party’s expectations) needs to take place for marketing to be successful. Exchange of value consists of offering being understood, created, communicated and delivered. Marketing Evolution 1. Trade 2. Production orientation 3. Sales orientation 4. Market orientation 5. Societal market orientation Triple Bottom Line Business has a Corporate Social Responsibility to act in best interest of shareholders Businesses need to act sustainably for the future. Marketing Mix Set of variables the marketer can exercise control over in creating an offer of exchange. Will be tailed to suit target audience. Product - Anything offered to marketing (good, service, idea) - Best understood as group of attributes (features & functions) Price - Marketing decisions that takes into account production costs, req. profitability, partner’s requirements, competitor prices, customer’s willingness to pay, prestige of brand. Place - Marketing activities that make customers, public aware of business offerings - Not just advertising, multiple promotional methods used. Promotion - Means of making offerings available to customer at right time and place - Logistics function - Marketers understand how logistics impacts ability to deliver a product at time and place that suits customer’s needs. The Marketing Environment All internal, external factors influencing ability to market offerings Environmental analysis breaks marketing environment into smaller parts for better understanding - Helps marketers develop strategy and direction - Identifies strengths and weaknesses (internal) and opportunity and threat (external) (SWOT) - Internal Environment - Organisation, people, processes within used to create offerings - Strengths and weaknesses which are directly controllable and effective company’s ability to compete in the marketplace - Most successful organisations are where all departments focus on creating and delivering value to market. - Internal relationships can arise conflict influencing this successful delivery - As organisational complexity increases, so too does potential for conflict - Senior Management: Make decisions about overall objectives, direction - Middle Management: Responsible for department or geographic region - Functional Departments: Where orgs are structured around specific functions (Marketing/sales/research) - Employees: Work meets department objectives. Their attitudes and behaviours influence customers - External Vendors (Outsourcing): Employees must manage service relationship with vendors. If relationship is fickle, can effect company’s functioning and failure of vendors external relations. - External Environment & :Logistics - Microenvironment (Industry/partners/customers/competitors) - Outside company but within industry level, where competitors are - Company can’t control others but develop methods of dealing with them - Risks include balance of power between partners, risking relationships with the other party. - 5 structures of competition in Microenvironment 1. Monopoly: One dominant supplier e.g. gov roads and rail. Some choose to open opportunity to private competition. 2. Monopsony: One main buyer e.g. coal town where company acts as sole employer thus, sole purchaser of labour 3.Oligopoly: Few main players; US media, Walt Disney, 21st Century, Time Warner Bros 4. Monopolistic Competition: Numerous comp, want to differentiate e.g. market for laptops, differential factors. 5.Pure Competition: Numerous comp, synonymous products e.g. market for agricultural goods like sugar. Marketers seek to understand competitor’s marketing mix, sales volumes & trends, market share, sales per employees & employment trends. - Macroenvironment (PESTEL) - Not directly controlled, can effect company’s ability, meaning they must deal and cant control these issues - Opp and threat directly effect org’s ability to serve market - Factors include; - Political; Effect of politics on international marketing - Economic: Effect of income, prices, levels of savings and debt. This effect customer;s willingness to spend - Sociocultural: Demographics of age, gender, religion, may effect behaviour, beliefs, lifestyle choices. - Technological: Changes expectation and behaviour of consumers, suppliers - Environmental: Natural disasters, climate, creates global awareness and social changes influencing business e.g. sustainability. - Legal: Governs what marketing organisations cannot do. Includes privacy, fair trading, safety, contracts, intellectual property & Partners include firms · · Wholesalerse suppliers LEVELS OF COMPETITION Level of competition Total Description Example Budgel competition Generic Competition Product competition Brand competition - Situational Analysis Identifying key factors used as a basis for developing marketing strategy Its ongoing and combines org objectives and analysis to formulate plans for future performance 1. Situational analysis: Where the organisations is now 2. Organisational Objective: Where the orgainsation wants to be 3. Marketing Planning: How the org plans to get there Marketing Metrics Marketers need to isolate key factors that need to be addressed in society in order to remain competitive in the market. Module 2 Market Research & Planning Market Research It’s an activity discovering info about useful information for making marketing decision such as market segmentation, sales performance, price, product, promotion, price. Essential to understanding the market and improving performance of company Market are a group of people with heterogenous needs and wants. Research discovers these needs and wants and analyses them in order to develop more sought after products. Marketing Process; 1 Understand 2 Create 3 Communicate 4 Deliver - Use CBE framework of co-create, build, engage - Co-create: Stakeholder orientation, segmentation, competition, theory, insight - Build: Marketing mix, exchange - Engage: Exchange, behaviour change market Intel > whats happening - outside the business e. g. UTS to Institutions - surrounding g data asered ompanywithin Big Data Adv: Enables discovery of new insight, identifies trends form lots of data Data that contains greater variety and statistical power and velocity that is often too complex to be dealt with using traditional data processing software. Improvements in new system creation are being made to link data with informed decision making By analysis of this data, we are more aware of what people do, when and why which can help identify trends in current behaviour, behavioural patterns over time and opportunities/areas for action. E.g. of big data; watch history, search queries, scrolling time. Provides awareness of consumer demographic, internet based behaviour, browsing behaviour. Insight ‘Insight is a piece of understanding that guides strategy’; UKs National Marketing centre Insight generated form combination of analytics, market research and deep understanding of what moves people Cold Start Problem; Customer doesn’t provide their own interest, they get given the standard suggestions/most popular. Components of Market Research; Defining, Designing, Collecting, Analysing, Presenting 5 Components; 1 Defining the problem - Marketers prepare research brief, outlining question research will answer and describing information required - Needs to be clear, specific and enable decision making/be actionable - Evolution of experiment may cause question to evolve - Always concerns future image of company - Decision maker is only aware of 10% of the problem, which can lead to wrongly defining the research problem - Research brief generally states; i) The research problem ii) Information required iii) Timeframe iv) Budget v) Any other project conditions 2 Designing the research Methodology - Detailed methodology to guide project and address problem - Structure of research question will determine research method - Exploratory Research; Gathers more info about loosely defined problem. Sometimes don’t know market at this stage. - Descriptive Research; Solves specific problem by clarifying characteristics of certain phenomena. Describing research using data at hand. - Causal Research; Assumes particular variable causes specific an outcome. Everything else is held constant, which tests whether the variable does effect that outcome. Continues to and fro with a continual hypothesis. 3 Collecting Data - Primary (collected at time) and secondary (available prior to problem development) - Marketers should seek secondary to avoid unnecessary research. - Data must be collected according to methods specified in research design - Follow ethical practice - Responses to be recorded correctly, minimise bias, omit errors to ensure design is followed - Data can be stored, collected in house or outsourced - Outsourced by an agency who collect, scrape and mine data for marketers - Managing Data Collection; - Budgeting and scheduling to increase efficiency and effectiveness of data with limited time/financial resources - Budgets determined by estimating likely cost of each phase of project or determining duration and applying standard cost to estimated hours. - Accomodate revisions - Not always linear - Gantt charts and critical path methods; tools to help project managers control projects 4 Analysing and Drawing Conclusions - Once collected, data is filtered and organised - Use quality control techniques to eliminate data invalidity - Data is then analysed - Quantitative and statistical analysis; In Excel/Python etc. These are analytical techniques and analyses need to understand what is appropriate for different data. - Qualitative Data; Must be looked at as rich, detailed information, reduction should occur and coding 5 Presenting Results and Making Recommendations - Once analysed and conclusion are drawn, findings are presented in a clear and concise format for marketers. - Typically presented in PowerPoints/reports - Responding to the Problem; - Market research is a continuous process - Essential for marketers to evaluate effectiveness of each activity to optimise effectiveness. - High quality research and strong evidence can fulfil a return on investment - Findings can build opportunities for future projects. Types of Research Quantitative Research; - Including interviews, focus groups - Intended to obtain detailed info on attitudes, emotions underlying consumer behaviour - Often used for Exploratory Research - Interviews; - Adv; In depth, structured, semi structure, more focused, easy to steer in intended direction, natural - Disadv; Interviewer can influence bias, long - Focus Groups; - Adv; Multiple perspectives, arise common issues not foreseeable by researchers, - Disadv; Need a good moderator, participants influence by one another, strong socials influence role Quantitative Research; - Results of numerical description - For Descriptive and Causal research - Surveying, experimentation, observation, neuroscience. - Current global shift towards quantitative - Can be generalised due to larger sampling size - Useful for monitoring market size, identifying market trends, predicting success of proposed market campaigns, tracking customer perceptions of existing products. - Surveying; Most common, interviewer led, self response, relishes on research to formulate questions that can elicit a relatively close answer. - Experiments; Involves manipulating variables of interest whilst everything else is constant. Often used for Causal Research - Variable of Interest = Independent variable - Outcome Variable - Dependent Variable - Artificial settings don’t always reflect real life, other variables not measured could be influencing outcomes. - Biometrics; Neuromarketing, monitoring of participants psychological response to stimuli, measure HR, emotional response, brain activity - Extremely expensive, invasive, cannot tell us how or why things happen - Stratified Sampling; Member is grouped on a characteristic and a sample is extracted from that - Quote Sampling; Population is divided into groups based on a number of characteristics and a researcher chooses arbitrarily form them. - Convenience Sampling; Participants selected on basis of who is available Considerations Relevance Timing Resource Availability Need for new information Cost-Benefit Analysis