Resume Marketing (Midterm) Study Notes PDF

**Resume marketing (midterm)** **Class 1 - Chapters 1 and 3** [Marketing]: entails an exchange (buyer vs seller) [Role of marketing]: create economic value by creating perceived value for customers - Perceived value: customers' evaluation of the merits of a product, and its ability to meet...

**Resume marketing (midterm)** **Class 1 - Chapters 1 and 3** [Marketing]: entails an exchange (buyer vs seller) [Role of marketing]: create economic value by creating perceived value for customers - Perceived value: customers' evaluation of the merits of a product, and its ability to meet their needs and expectation - Based on irrational/emotional criteria - Disconnected from market value **Specific market**: market vs target market - Companies can't serve all customers in given market - Types of markets: - B2C (business to consumer) - B2B (business to business) - C2C (consumer to consumer) **Marketing mix**: developed to attain the objective of the organization (4 Ps) **Marketing environment**: influenced by - Consumers - Microenvironment - Macroenvironment - *Company capabilities*: satisfy customer needs that match the company core competencies - *Corporate partners*: establish relationships with suppliers and clients - *Competition* (direct vs indirect) - *Demographics*: characteristics of human populations and segments (age, gender, income, race, etc.) - *Social* and cultural: green marketing, privacy concerns, time-poor society, health and wellness concerns, culture, etc. - *Technology*: influence consumer by engaging them (cellphone to MP3 to internet access...) - *Economic*: inflation, interest rates - *Political and legal* [Marketing orientations] - *Product*: focus on developing and distributing innovative product - *Sales*: focus on making a sale on each transaction - *Market*: focus on what consumer want and need before they design, make or attempt to sell their products - *Value-based*: focus on value - CRM (customer relationship management): - Building relationship with customers based on the philosophy that buyers and sellers should develop a long-term relationship - Focus on the lifetime value of relationship (consider customers' loyalty and profitability) **Class 2 - Chapter 4** **Consumer behaviour** **[Consumer decision process]**  1. *Need recognition* a. 2. *Information search* b. *External search: outside the buyer's personal knowledge* c. *Internal search: when buyer examines their own memory and knowledge* 3. *Alternative evolution* d. [Compensatory decision rule:] bad evaluation or more attributes can be compensated by a good evaluation on other attributes e. [Non-compensatory decision rule]: consumers choose the products that has the best evaluation on the most important criteria f. [Decision heuristics]: mental shortcuts that help consumers narrow down choices (price, brand, product presentation) 4. *Purchase decision* g.  5. *Post purchase* h. **[Factors that influence consumers' decision process]**  [Psychological factors] - *Motive*: need that is strong enough to cause someone to seek satisfaction - *Attitude*: 3 components (cognitive, affective, behavioural) - Perception: 4 components of selective (exposure, attention, comprehension, retention) - *Learning*: change in someone's thought process/behaviour that arises from experience, takes place with the consumer's decision process - *Lifestyle*: way of life organized around one/more dominant values - Family - Reference groups - Culture [Situational factors] - Purchase situation - Shopping situation - Temporal state **Class 3 - Chapter 7** **Market research** The marketing research process Define the research problem and objectives (1) - What is the problem? - Separate symptoms of a problem from the actual problem Design the research plan (2) - Identify the type of data/how to collect the data (research) \*\*Collect data (3) Analyze data and develop insights (4) - Combine market searchers knowledge with collect data to develop solutions to the firm's problem Determine the action plan (5) - Develop specific recommendations - Interpretation of data should lead to concrete decisions **Class 4 - Chapter 2** **Marketing strategy** [Developing a marketing plan ]  **[Planning phase]** [Step 1] -- business missions & objectives - Description of firm's objectives and activities its plans to undertake - Mission should be (specific, realistic, not too broad, not too narrow) [Step 2] -- situation analysis (SWOT) - Helps identify sustainable competitive advantage - Opportunities ≠ alternatives/possibilities **[Implementation phase]** (marketing strategy) [Step 3] -- identify/evaluate opportunities - What are consumers' needs, which market segments for strategy, find difference from competition, etc. [Step 4] -- implement marketing mix (4 P's) - Business portfolio: collection of businesses/products that make up the company  **[Control phase]** [Step 5] -- evaluate performance by using marketing metrics - Measure/evaluate performance - Undertake corrective measures [Growth strategies]   [Macro strategies] - *Customer excellence*: in-store experience, strengths/weaknesses, etc. - *Operational excellence*: efficient operations, excellent supply chain management - *Product excellence*: high perceived value, effective branding/positioning - *Locational excellence*: good physical location & internet presence In resume, **Class 5 -- chapter 6** **Segmentation/targeting/positioning** **[Segmentation:]** dividing market into homogeneous groups of customers according to various criteria - Why segment: add value by serving specific needs (not adding features) [Segmentation bases] 1. *Geographic*: region, country, density, climate (where does market live) 2. *Demographic*: gender, age, family size, income, education (who is market) 3. *Psychographic*: social class, lifestyle, values, opinions (what do market like/how do customers live) 4. *Behavioural*: user status, usage rate, loyalty status, occasion/benefits \*\*use multiple bases to identify specific segments Targeting  Choosing target market Based on: - External analysis: resources required by each segment, profitability of each segment, competition, etc. (what are the resources, where are the competitors) - Internal analysis: business portfolio, coherence with firm's strengths/image, competitive advantage, etc. (does market align with value and image) 4 targeting strategies 1. Mass/undifferentiated marketing a. Ignoring segmentation b. One offer for whole market c. Focusing common needs d. Economies of scale 2. Differentiated marketing e. Targeting several segments/designing separate offers for each (sources: price-product-communication) 3. Concentrated/niche marketing f. Selecting a single, primary target market g. Focusing on product that fit market's needs 4. Micromarketing h. Opposite of mass marketing i. Tailoring product to suit individual wants/needs **[Positioning]**: give product credible, distinctive, desirable place within market in minds of consumers (first thing you think when see or hear name of logo/brand) [Product positioning] *Value proposition*: communicates the customer benefits to be received from a product and reasons to want to buy it - Value, product attributes, brand image, service, channel, etc. [Positioning tools] 1\. *Positioning map*: position of products or brands in consumer's mind (2D +) - Presents *firm's* products and brands and *competitors'* products and brand Example:  2\. *Positioning statement* - To \[**target segment**\], \[**our brand**\] is \[**concept or product category**\] that \[**point of difference**\]. [Repositioning]: strategy that aims to reposition the brand to keep up with the changes in the marketplace or put a fresh spin on their state and stodgy brand