Marketing Exam PDF

Session 1 Needs are things that satisfy a basic requirement. Wants are requests directed to specific types of items. Demands are requests for specific products that the buyer is willing to and able to pay for. Marketing Mix The 7 p’s of Marketing Mix 1. Product 2. Promotion 3. Price 4. Place 5...

Session 1 Needs are things that satisfy a basic requirement. Wants are requests directed to specific types of items. Demands are requests for specific products that the buyer is willing to and able to pay for. Marketing Mix The 7 p’s of Marketing Mix 1. Product 2. Promotion 3. Price 4. Place 5. People 6. Process 7. Physical Evidence Strategic Marketing Overview Definition; Long-term, big-picture planning to achieve sustainable competitive advantage. Key Components; 1- Market research 2- Target market Selection 3- Value Proposition 4- Marketing objectives Operational Marketing Overview Definition; Day to day execution of marketing strategies Key Components; 1- Product launches 2- Sales promotions 3- Marketing communications 4- Pricing tactics Comparison : Strategic; focus on What and Why Operational Focus on How and When Session 2 - Marketing Orientation Marketing orientation is a business philosophy focused on identifying and meeting the needs and wants of customers as a priority in decision-making and strategy. In a marketing-oriented company, understanding and satisfying customer expectations is central to product development, pricing, distribution, and promotional strategies. Customer-Centric Focus: The primary goal is to fulfill customer needs. Market Research: Ongoing research is essential to understand shifting consumer behaviors and preferences. Value Creation: Businesses aim to create and deliver superior value to customers. Competitive Advantage: By focusing on customer needs, companies gain an edge over competitors. Production Orientation: Production concept holds that customers will favor products that are available and highly affordable. Focus on improving production and distribution efficiency. Production orientation means the business focused on efficiently building a quality, rather than what a customer wants. This approach is risky as it often leads to unsuccessful products. Particularly in well-established markets Sales Orientation: Sales orientation is as a sales approach where a business only focuses on convincing customers to buy its products and services rather than taking into consideration the actual needs of customers. Focus on : Advertising and marketing instead of quality Abilities of the Sales Force Creating massive advertising campaigns to overcome competition Sales Orientation Push & Pull strategies Definition: Push strategy involves actively pushing products or services to customers through advertising and promotions, while pull strategy focuses on creating demand by attracting customers toward the product or service. Push aims to make customers aware, while pull aims to create customer interest Marketing Orientation/Customer Centered Approach A customer-centered marketing orientation is a business approach focused on understanding and meeting the specific needs, preferences, and expectations of customers at every stage. This approach places customers at the heart of all business decisions, with the belief that delivering superior value to customers will drive long-term success. Session 3 - Consumer Behaviour Consumer Behavior Influences: Cultural: refers to share values, customs and behaviors in a group of people, which is effecting their customer behavior. Example: Coca cola during ramadan makes advertisement about iftar meals in Middle-Eastern countries. Social: refers to impact family, friends, social media or social status can be effected by the customers behaviour. Example: For instance a teenager can influence by his friend and get a new pair of sneakers. Personal: Effects customers by their individual status such as age,gender,occupation,lifestyle,income and personal preferences. Example: For instance, a middle-aged professional may prefer purchasing high-quality Nike business casual shoes that reflect their career status and personal taste, while a college student might opt for more affordable and trendy Nike sneakers to fit their budget and lifestyle. Psychological: Psychological influences on consumer behavior involve internal factors such as motivation, perception, beliefs, attitudes, and learning processes that affect an individual’s purchasing decisions. Example: For instance, a consumer who believes that a particular brand of organic skincare products (like The Body Shop) is better for their health may be motivated to purchase those products over conventional brands, reflecting how personal beliefs and attitudes can shape buying behavior. Consumer Buying Decision Process: 7 Stages 1. Recognition of a need 2. Description of Desired Characteristics 3. Determination of Desired Characteristics 4. Search for Qualified Sources 5. Acquisition & Analysis of proposals 6. Evaluation & Selection 7. Performance Feedback & Evaluation Irrational Consumer Behaviour Sales orientation is as a sales approach where a business only focuses on convincing customers to buy its products and services rather than taking into consideration the actual needs of customers. Focus on: ❑ Advertising and marketing instead of quality ❑ Abilities of the Sales Force ❑ Creating massive advertising campaigns to overcome competition Session 4 - Marketing Analyses The Marketing Environment The Marketing environment is a critical factor in shaping marketing strategies. It comprises the forces external to marketing, which affect the company’s ability to create and maintain relationships with its target customers. The marketing environment encompasses all external and internal factors that impact a company’s ability to build and maintain successful customer relationships. Understanding this environment is crucial because it allows businesses to adapt strategies and respond effectively to changes, challenges, and opportunities. Microenvironment: These are close factors that directly affect the company’s ability to serve its customers, including: Customers: Understanding their needs is central to strategy.  Competitors: Monitoring competitor activities to stay competitive. Suppliers: Ensuring a reliable supply of quality materials. Intermediaries: Distributors and partners who help reach the market. Publics: Various stakeholder groups like the media and local communities. Macro-environment: These are broader forces that affect the entire market and industry, including: Economic Factors: Economic conditions like inflation, unemployment, and spending habits. Technological Factors: Innovations that can impact production, marketing, and customer engagement. Political and Legal Factors: Laws and regulations that affect business operations. Social and Cultural Factors: Trends in society, including shifting demographics and changing values. Environmental Factors: Natural resources and sustainability concerns. PESTEL ANALYSES PESTEL Analysis is a strategic tool used to understand and evaluate the external macro- environmental factors that can impact an organization. Each letter in PESTEL stands for a different factor: 1. Political: Examines the influence of government policies, regulations, and political stability. Factors include tax policies, trade tariffs, and government stability.  2. Economic: Looks at economic conditions that impact purchasing power and demand, such as inflation, interest rates, economic growth, and exchange rates. 3. Social: Focuses on societal trends, demographics, lifestyle changes, and cultural norms that can influence market demand and consumer preferences. 4. Technological: Considers the role of technological advancements and innovation. This includes automation, R&D activity, and the rate of technological change. 5. Environmental: Assesses environmental and ecological factors like climate change, environmental regulations, and sustainability trends. 6. Legal: Addresses laws and regulations, such as labor laws, health and safety standards, consumer protection laws, and industry-specific regulations. Purpose: PESTEL analysis helps companies understand external factors that could affect their operations and strategy, aiding in risk management, identifying opportunities, and making informed decisions. Digital Era Impact on Marketing The digital era has transformed marketing by enabling data-driven insights, personalization, and direct engagement with consumers through social media. Marketers can now create tailored, real- time campaigns and deliver valuable content that builds trust. E-commerce and omnichannel strategies let brands connect seamlessly across digital and physical platforms, while SEO and SEM ensure visibility online. Digital marketing is also more cost-effective and allows brands to reach global or niche audiences easily, shifting marketing from one-way messaging to interactive, customer- centered strategies. The Marketing Competition Analyzing competitors’ strengths, weaknesses, and strategies is important for developing effective marketing strategies and gaining a competitive edge. Understanding competition is critical for effective marketing strategies. It allows companies to benchmark their position and identify competitive advantages. Benchmark Analyses: Setting Performance Standards Benchmarking compares your company’s processes and performance metrics to industry best practices. It identifies areas for improvement and innovation. Internal Benchmarking- Compare performance across departments within your organization to identify and spread best practices. Competitive Benchmarking- Analyze direct competitor to understand your relative market position and identify areas for differentiation. Strategic Benchmarking- Learn from leaders in other industries to innovate and adapt successful strategies for your context. Key Concept; Comparison, Best Practices, Competitive Advantage, Data Driven Example; Coca cola and Pepsi regularly benchmark against each other in areas like Market Share, Brand Recognition, Consumer Preference Competitive Analysis: Tools & Techniques 1. Identify competitors- Map out key players in your market space including direct and indirect competitors. 2. Analyze Strengths/Weaknesses- Evaluate competitors’ offerings, marketing strategies, and market positioning. 3. Apply Porter’s Five Forces- Assess competitive forces shaping your industry landspace. 4. Anticipate Moves- Predict competitor strategies to stay ahead in the market. Porter’s Five Forces Model Threat of new entrants Buyers Bargaining Power of buyers Suppliers Threats of substitutes Substituse Rivalry among existing competitor New entrants Bargaining power of suppliers Existing rivalry The Diagnostic: Identifying Issues and Opportunities A thorough diagnostic and new opportunities. It requieres in- depth analysis of internal and external factors. Session 5- Market Research -Market segmentation: anaylze markets, choose target market. (Mesela norveçte halkın %90’ında elektrikli araba var o yüzden norveçte bir elektrikli araba launch etmek mantıklı değil %10 için değmez) -Subgroupsları belirlemek önemli,karakteristik özelliklerine göre belirlemek önemli (demografic, strategic) Market segmentation is the process of dividing abroad consumer or business market into sub-groups of consumers based on shared characteristics. 4 Key marketing strategy: Which costumers will we serve? 1.Market segmentation -dividing market groups based on their needs. -divide the total market groups in smaller … 2.market targeting -Evaluating each market segmentes attractiveness and selecting the one or more segments to serve. How will we servet them? 3. Differentation -Diğer competitorlardan farklı bir şekilde aradan sıyrılmak 4. Positioning -Diğerlerinin yanında farkını göstererek ortaya çıkıp markette belli bir yere ulaşıp oraya yerleşmek (hermes zara gibi) Segmentatio = Enables more precise = Improves resource allocation = Enhances customer satisfaction = Improved product development = Increased customer loyalty = Better competitive positioning Types of market segmentation = Demographic segmentation = Psychographic segmentation = Geographic segmentation = Behavioral segmentation Demographic segmentation -dividing markets based on: age, gender, income, education, occupation, family size (example: Anthropologie-French Bohemian Chic Life Style) Geographic segmentation -Dividing market based on geographical units:Nation,country,region,city,climate,population density (examples: mc donalds her yere özgü farklı ürünler çıkarıyor) = Intermarket(cross-market) segmentation: Forming segments of consumers who have similar needs and buying behaviors) = Hyperlocal social marketing: Location-based targeting to consumers in local communities or neighborhoods using digital and social media. Psychographic segmentation -Dividing market based on: Lifestyle,attitudes,personality traits,values,interests -VALS model framework and segments. VALS is an acronym for values, attitudes and lifestyles. Behavioral segmentation -Dividing market based on: purchase behavior,brand loyalty, usage rate,benefits sought,occasion- based buying (example:amazon prime :-Frequent shoppers offered Prime membership,-Tailored reccomendations based on browsing and purchase history.) Requirements for effective segmentation -Measurable: The size.purchising power and profiles of the segments can be mesured -Accessible: The market segments can be effectively reached and served. -Substantial:The market are large or profitable enough to serve. A segment should be the largest possible homogeneous group worth pursuing with a tailored marketing program. -Actionable: Effective programs can be designed for attracting and serving the segments. For example, although one small airline identified seven market segments, its staff was too small to develop separate marketing programs for each segment. -Differentiable: The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs. If men and women respond similarly to marketing efforts for soft drinks, they do not constitute separate segment Market Targeting -The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter. Factors In Segment Evaluation 1. Segment size and growth 2. Segment structural attractiveness 3. Company objectives and resources, Targeting Strategies 1. Undifferentiated (Mass) Marketing 2. Differentiated (Segmented) Marketing 3. Concentrated (Niche) Marketing:focusing on one or a few market segments for example rolex 4. Micro-marketing (Local or Individual): Tailoring products and marketing to spesific individuals or locations for example Spotify personalized playlists, FitMYFoot custom footwear Undifferentiated (Mass) Marketing -Targeting the whole market with one offer. Examples: Coca-Cola's classic marketing approach. Differentiated (Segmented) Marketing - Targeting several market segments with separate offers for each. Examples: Nike uses differentiated marketing to target various customer segments with specialized products and marketing strategies.