Modern Society and Marketing PDF

**[MODERN SOCIETY AND MARKETING ]** **WEEK 1** VIDEO 1 -- introduction to course and overall schedule VIDEO 2 -- **marketing misconceptions and definition of marketing** Rescuable water bottles- result of marketing efforts. Marketing makes you drink more water etc Misconceptions - **Marketi...

**[MODERN SOCIETY AND MARKETING ]** **WEEK 1** VIDEO 1 -- introduction to course and overall schedule VIDEO 2 -- **marketing misconceptions and definition of marketing** Rescuable water bottles- result of marketing efforts. Marketing makes you drink more water etc Misconceptions - **Marketing is all about advertising?** - **Marketing is all about selling?** Its an important part of marketing process, but advertising its just one way to reach out to consumers and sales is just one goal. Its actually involves a long journey from identifying consumers needs to developing products and finding the right channels to reach potential buyers. - **Marketing is all about the sizzle?** Its true that marketing often capture our attention with exiting and eye cathing campaigns, but its so much more to it than meets the eye. In reality marketing involves sophisticated reasherch, detailed analysis, careful decision making and thoughtful development of strategies and plans. - **Marketing is inherently unethical and harmful to society?** This misconpetion has been arounf or a while, its not inheherently unethical, like every other buisniess area. Unhetical practisies can appear in every field. However, when an unethical or illegal element is detected in marketing it tends to garner significant attention from the general public. The visibility og marketing activities makes any unethical practices more noticeable. It is crusial to uphold etichal principles and abide by industry regulations. By doing so you build trust with your consumers. Marketing can be a force for positive change when driven by ethical considerations and societal well-being. - **Only marketers market?** In reality marketing extend far beyond far a specific department or job title. Marketing is a collaborative effort that involves various stakeholders within an organization and beyond. Regardless of your position in the firm or your job title, understanding the fundamentals of marketing is a vaulbale professional asset. Effective marketing relies on a shared understanding of the target audience, market trends and the organizations value proposition. When employes across different functions align their efforts and contribute to the marketing process, its creates a power synergy that drives business success**. Remember that is a collective endeavor that involves everyone in the organization.** - **Marketing is just another cost center in a firm?** - There may be various reasons, but one ist that marketing is highly visible by nature compared to other business elements such as accounting, operations and HR. its semms almost everybody can come across various marketing elements in their daily lives. And its seems comfortaböe talking about elements of marketing. For example, from the weeks advertise specials at the supermarket to this years fashion for the kids heading back to school. - Marketing is highly associated with buzzwords. In a bookstore you may have noticed an abundance of books promising overnight success and guaranteed formulas for marketing triumphs. These buzzwords riven solutions can be interesting, but often lack substance and long term viability. Again, In reality effective marketing is a result of diligent reasherc, data analysis, creativity and adaptability. There is no one sixe fits all kind of solutions, and marketers must approach each situation with a comprehensive strategy and tailor to their unique brand and target audience. Therefore its essential to address the need to position marketing as a respectable field. VIDEO 3 -- definition of marketing Nike = never communicate or accentuate how good their shoes are. They don't compare their shoes to those of adidas or puma. Theire recent campaign, you can't stop us. They don't just talk about their shoes in commercials. They only express the strengts of us human beings, and they only shows respect for their athletes and sports, because that's what they value. There are many defenitions of marketing, different scholars, different organizations, different textbooks. **AMA**= the most powerful and largest organization in the marketing discipline. They announce the definition of marketing at their annual conference. **The AMA definition 1948** : the performance of business activities that direct the flow of goods and services from producers to consumers. **The AMA definition 2007:** marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offers that have value for customers, clients, partners and society at large. The differences between the definitions: - The term business activity in the 1948 version has evolved to simply activity in the 2007 version. This change implies that the marketing can encompass more than just traditional business activates. For instance, based on the 2007 definition, marketing can also be applied to teaching activites or religious activites, extending its scope beyond purely business related context. - The expression set of institution in the 2007 version has expanded significally compared to the plian term producers used in 1948 version. - Compared to the 1948 defentions of the flow of goods and services the 2007 version processes for creating, communicating, delivering and exchanging offers that have vslue is much more holistic. The phrase "offers that have value" clearly indicates a more comprehensive perspective than merely refering to goods and services. - According to the resent detention marketing must possess a core value and spirit aming to be beneficial to consumers in various aspects. Moreover, the inclusion of word communication and exchanging and the recent definition signifies a shift towards not only being holistic but also interactive. This implies that consumers and companies can now engage in mutual interactions, exchanging values with each other. - Compared to the past definition that refer to consumers, the inclusion of the work for customers, client partners an d society at large definitely shows that the target audience of marketing has been enlarged. In summary: - Marketing can be applicable in various contexts, including business, customer, customer and customer, government people, Politian and voters, school and students, medicial and patients etc. whereever there is an exchange of relationsships and values. **The 2020 version -- its accentuates the connections, interaction, relationship, values and problem-solving. Marketing is more like a umbrella term, its not just about selling products or creating campaigns, its more about fostering relationships, exchanging values and solving problems between companies and consumers. Ultimately, marketing is about budling a win-win relationship between companies and consumers.** VIDEO 4 The evolution of marketing over time Marketing has been through several eras. - **The production oriented** era took place around the turn of the 20^th^ century, when most firms believed a good product would sell itself. - In the **sales oriented era from** 1920-1950, production and distribution techniques became more sophisticated and supply outpaced demand. Firms find an answer to over production by focusing on sales. - In the **market oriented era** between 1950-1990 the focus was on what customer wanted. It is during this period that firms discovered marketing. - Now we are in the **value based era** which maintains the market orientation, but also includes a focus on giving greater value tha the competion. Value reflects the relationship of benefits to costs. Value based marketing menas implementing a merket strategy according to what customer values. VIDEO 5 -- The marketing process. The process includes 5 steps, and in the first four companies work to understand cunsomers, creat customers value and bulid strong customer relationship. The final step, companies reap the rewards of creating superior customer value. By creating value for consumers they in turn capture value from consumers in the form of sales, profits and long term customer equality. **The first step** in the marketing process is that the company must fully understand consumers and the marketplace in which it operates, in other words: understand the marketplace and the customer needs and wants. **Needs=** are the fundamental requirements essential for an individual's survival, well being and personal development. These are the things an individual must have to live a fulfilling life. Basic physical needs, such as food, clothing and safety. These customer needs possess several important characteristics. - Tend to be universal, everyone has these basic requirements - Needs are not influenced by external factors like social trends or marketing's campaigns - Needs are relatively stable and enduring over time **Wants=** wants are desires or preferences shaped by an individual's personality, cultural and environment. Unlike needs, wants are not necessary for survival or well-being, but the enhance the quality of life and provide satisfaction. Wants are diverse and can vary from person to person. Consumers wants exhibit distinct characteristics - First they are subjective and can change based on personal preferences and experiences. For example, cunsomers with the same needs for food may result in different consumer wants. - Wants are influenced by factors, such as advertising, peers influence and cultural norms. - Wants are dynamic, and can envolve over time with changing trends and tastes. - When backed by baying power, wants become demands **Dove** - Dove added the dove mens line and expanded into products for babies. - In advertisinf to male consumers, dove seeks to acknowlwde and recognize modern mens caregiving roles, so it can link tehse communications to ist baby care products too. - Dove focused on meeting customer needs and wants. How do marketers get information about consumers needs and wants? And which one to prioritize? - Marketers rely on various sources to obtain information about consumers needs and wants. One of the primary sources is their companies internal data. This includes data on the past sales, customer feedbacks and interactions, which can offer valuble insights into consumer preferences and behaviors. By analyzing this data marketers can identify patterns and trends. - Another way is competitive marketing intelligence, this involves a systematic collection and analysis of publicly available information. - In addition to internal data and cometetive intelligence, conducting marketing research is a critical approach. This involves collecting and analyzing data directly from ciónsumers througj surveys, focus group interwiev and other reaserch related methods. One caveat to understand consumers needs and wants, as well as marketing information is **marketing myopia.** This term refers to a significant pitfall that marketers must be vary of. The faliur to recognize a companys scope of business and becoming overly focused on specific products rather the benefits they produce. Theodore Levil introduced the term. Many companies lose their sights of the broader purpose they serve and the value they bring to consumers lives. The key to avoid marketing myopia lies in understanding and emphasizing the benefits that products or services provide to consumers. Companies need to focus on addressing customers needs and wants effectively, rather tha solely concentrating on their current offerings. As consumers preferences evolve over time, staying customer centric is essential for long time success. By being attuned to customers changing needs and adapting their offerings accordingly companies can ensure that they remain relevant and competitive in the market. **In conclusion:** marketing myopia is a cautionary reminder to marketers to step back from a narrow product focused view and instead adopt a customer-focused perspective. By understanding the true scope of their business and the benefits they bring to customers lives, companies thrive in an ever-chaning marketplace. **remember that true success lies not in the products we sell bur in the value we create for our customers.** **The second step is design a customer value driven marketing strategy -- segmenatation, targeting and positioning = STP** **Segmentation=** it involves dividing the market into distinct and meanigfull groups based on specific charatersitics or needs. The goal is to identify homogenius segements with similar preferences, behaviors or demographics. By doing this, companies can better understand their customers and tailor their marketing efforts accordingly. **Target marketing =** the next step is targeting marketing. Targeting involves evaluating and selecting the most attractive segments for the company to focus its resorcues and efforts on. Not all segments may be equally profitable or align with the companies capabilities, so careful consideration is very important. **Positioning=** the final step. Its about how a companu wants its brand or product to be perceived in the minds of its target customers relative to competitors. It is about creating a uniqe and compelling value proposition. **The third step is construct on integrated marketing program that delivers superior value.** This part is often called the marketing mix or four p:s. Product, price, place and promotion. - The first p stands for products -- creating value. It refers to the tangible goods or intangible services or even intellectual ideas that a company offers to its customers. - The second p stand for price- capturing value- price is everything a buyer gives up ( money, time, energy) in exchange for the product service - The third p stands for place -- delivering the value proposition -- place represents all the marketing processes necessary to get the product to the right customer when that customer wants it. Place more commonly deals specifically with reatling and marketing channel management, also know as supply chan management. - The fourth p stands for promotion -- communication the value proposition -- promotion is communication by a marketer that informs, and reminds potential buyers about a product or service to influene their buying decision and elicit a response. **WEEK 2** VIDEO 1 understanding the immediate environment A companys 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. Simply put: a market encompasses all the internal and external factors that drive and influence an organizations marketing activities. Basicly there are two subsets of the marketing: - The immidieate environment (microenviroment) - Macroenviroment Successful marketing planning involves identifying the best opportunities in the market and developing a strategy that not only gives the firm a competitive advantage, but also offers superior customer value to the target audience. By carefully consider various internal and external environments, companies can create effective marketing strategies that aligne with the market dynamics and ensure long-term success. More specifically: factors such as company itself, corporate partners and competitors, and macro-level environment impact the firms opportunity evulation. **The immediate environment:** The immediate environment includes the firm and its capabilities, competitiors and corporate partners. **Company capabilities**: - Successful marketing firms focus on satisfying customer needs that match their core competencies and resources. - A company should consider their internal capabilities and strengths including financial recourses, production capacity, human recourses, brand power and so on to uncover valuable insigths and improve marketing decisions and strategies. **Competitors:** The competitive environment affects the number of types of competitors that marketing managers must face and how they may behave. - Managers choose strategies that avoid head on competions and slash or plan for competition when it is inevitable. - Analyzing both current and potential future competitors is cruscial for companies to stay ahead in the market and anticipate challenges. Figure out current and potential competitors. While understanding competitors provides insight into the existing competitive landscape. - Ex blockbuster, they did not anticipate the potential threat of online streaming services and its eventual downfall, when Netflix came. - By analyzing both current and future competitors and developing market strategies can ensure long-term success. - Marleters should also know the differencies among types of market situations. First **monopoly:** one company dominates the entire customer base. **Monopolistic competition:** several different firms offering marketing mixes that same customer perceive as distinct. **Oligopoly:** a small number of firms that control the market. It makes it difficult for new players to enter. **Pure competition:** a large number of firms competeting by offering similar. Price become the primary factor in making purchase decision. - Understanding these four situations helps marleters tailor their strategy and navigate the unique challenges presented by each scenario. **Corporate partners:** Few firms operate in isolation Parties that work with the focal firms are its corporate partners. - The role these partners play - How they work with the firm - Just like competitors, its necessary to learn about both current and future corporate partners. One main karakätsdrag för immediate environment is that is relativy contorability. It comprises factors that the company can directly influence and manage. The company has control over its internal capabilities, recourses, and decision-making process. It can actively respond to competitors actions and market dynamics. VIDEO 2 the macroenviroment The macroenviroment factors are the factors that are distant and at the societal level surrounding a company. This is not controllable and not forecastable because its consist of large social forces. Example, did someone see the covid 19 come? No? - We need to know and at least put some effort into preventinf or coping with the issue when necessary. - The macroenvironment factors: **Cultural environment:** The shared meanings, beliefs, morals, values and customs of a group of people are transmitted by words, literature and institutions. Its passed down by generations and over time. Various cultures influence what, why, how, where and what we buy. That is why companies need to räkna med cultur and incorporate them into their marketing decision making. Example, mcdonalds, menu that reflects cultural food, ex chicken burgers **Demographic environment:** Its of major interest because its involves people and people make up markets. - Characteristics of the human population and segment especially those used to identify consumer markets. - Age, gender, income, education are typicla demographic information - Provides an easily understood snapshot of the typical consumer in a specific target market. - Marketers use data about consumer to target offers. - Baby bommers, gen z -- always analyzing of what they do - Generations are a good example of the demographic environment, which is a part of the macroenviroment. - Markets are becoming more diverse, international and less stereotypical. - Example Korean food company, beef stocking -- old commercial there wehere only womens that coocked. In the new commercial there are men in it and you don't actually need to use actually beef in the cooking. - The commercial reflects changes in the social and demographic environment. - The demographic environment is constantly changing and companies analyze and adapt to these trends. **Social environment:** - Various social trends appar to. Be shaping consumers values in the us and around the world including sustainability, health and wellness, and more efficient utilization and distribution of food. - Sustainability: UN SDG ffocus on social issues for basic needs. Firms may focus on certifications from various agencies, ex fair trade. - ESG = environmental, social and governance. It's a set of principles that companies use to consider and measure the sustainability and ethical impact of a business. **Health and wellness:** - Child and teenage obesity - Nes marketer focused on healthy living - Mobile apps that support health and wellness - Food has always defined social trends that are central to peoples lives and enviroments. - Diet related products **efficient utilization and distribution of food.** - Reducing hunger and food waste **Technological environment:\ ** - Technology impacts every aspect of marketing, new products and services, new forms om communication and ratil channels. - Wireless payments - The most dramatic force that changing the marketplace- AI, blackpink held a online virtual concerts - The government reguraly announces new or modified regulations concerning consumers privacy concerns. - Marketers should be aware of these regulations when applying new technologies. **Economic environment:** - Affect the way consumers buy products and services and spend money. - Monitor the economic situation in the country or abroad - Major factors to monitor: inflation, foreign currency **Political/legal environment** - Government laws since the 2oth century promote fair competiotn and prevent monopolies to ensure fair pricing. - Marketers must understand and comply with legislation. **Summary:\ ** Companies are influenced by actors and forces outside of marketing that impact their management. The immideate environment consist of internal factors. This environment is more predictable, controllable and thus reactive. The microenvironment includes larger societal factors like culture, that have a broader influence on the company. **\ ** VIDEO 3 **SWOT ANALYSIS** **SWOT Analysis** is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. Here\'s a brief overview of each component: 1. **Strengths**: These are internal attributes and resources that support a successful outcome. Strengths give the organization its advantage over competitors and might include things like a strong brand reputation, a loyal customer base, proprietary technology, or strategic location. 2. **Weaknesses**: These are internal factors that might hinder the achievement of an objective. Weaknesses are areas where the business or project lacks strength or resources compared to others, such as limited R&D, skills shortages, or poor location. 3. **Opportunities**: These are external factors that the organization could exploit to its advantage. Opportunities reflect the potential you can leverage to grow your business or project, like market growth, lifestyle changes, technological advances, and partnerships. 4. **Threats**: These are external challenges that could cause trouble for the business or project. Threats might stem from various sources like economic downturns, increased competition, changes in regulatory landscapes, or other external risks that could impact the entity's success. By analyzing these four elements, organizations can formulate strategies that utilize their strengths, minimize their weaknesses, capitalize on opportunities, and manage threats. This analysis helps in making informed decisions and aligning strategies with the organization's environment. VIDEO 4 **WEEK 3** VIDEO 1 THE CONSUMER BUYING PROCESS 1. PROBLEM/NEED RECONITION - Its starts when consumers recognize they have an unsatisfied need. - Unsatisfied needs arise when the desired level of satisfaction differs from the present level. When the two states are in balance ( actual state and idela state) the individual does nor require anything. But when there is a discrepancy in the two states a problem is created and the consumer recognize their needs, and the decisions making process begins. - The gap can be created by both internal and external drivers. - Internal drivers are basic humans need such as hunger and security. - External driver happens as people interact with the world. Experience something that start an desire. A friend driving a new car. - Ex a styler, you did not know you wanted one until you saw the commercial. 2. **The information search** - Customer have two sources of information: internal and external - Internal sources are in the customers memory. Suchs as the namne of a store, or a brand. - External sources: word of mouth, advertising, internet, social media. - Amount of information search: information search depends on perceived benefits versus perceived costs. The value of the search is how it improve the customers purchase decision. - The cost of the search includes both time and money - Today technology can decrease the cost of search, like online customer reviews. **3, alternative evaluation** - At some point the search for information, people begin to limit of alternatives under consideration. - It is not possible to gather and process all possible information on many different options. - Bounded rationality: decision-making is limited by information avaible, the decision maker cognitive limitaions, the finite amount of time avaible to make a decision. - **Complete set:** it includes a variety of options across different brands and perhaps even products. - **Awareness set:** the set reduce the number of options. - **Consideration set:** based on additional information and evaluation a consideration set is created. It creates the most powerful options based on additional information and evaluation. It is usually from this set that a descion is made. - Customers creat a considerationset, use the information thet have about alternative products in the consideration set, and evaluate the alternatives. - The alternative evaluation process plays a crucial role In determining which product or brand to purchase. - Its important for a brand to be chosen and purchased. The consideration set, a company can take several strategic actions: build brand awareness etc social media, enhance product quality, provide expetional customar service, engage with customers, establish a stron online precense, partner with inlfluencers. - Alternative evaluation criteria: there are three different, emotional, attitude, and attribute. - **Emotional choice:** not all purchases are made strictly for rational reasons. Product choices are based on attitude about a product or based on attributes of the product depending on the situation. - **Attitude choice:** it tends to be more holistic, using summary impression rather than specific attributions. Such as car and house - **Attribute choice:** the most prevalent approach to product decision is this choice. Select a product by comparing brands across a defined set of properties. - After evaluating different alternatives in their consideration set, consumer pick one brand and purchase. But customers do not always purchase a brand with the highest overall evaluation. - Example: the highly-rated item in the previous step may not be avaible in the store. -- second highly rated products are on sale. -- a friend recommended a different product. - Even though your consumer pick your product to buy throughout previous three steps, the game is not over till its over. Due to these factors, the final choice can be changed at any time. Therefore marketers should make some efforts to convert high evulation into an actual purchase. - Ways to increase your conversion rate: 1, make the phurchase process easy and convenient for customer crucial. Ex, by making it available on mobile devices and reducing wait time during checkout. 2, providing information that reinforce evaluation, ex usage manuals that address any potential doubts or questions. 3, reduce the risk of making a purchase mistake, ex clear refund policies. 4 create a sense of urgency or scarcity a motivator for customer to take action, ex limited time offers, exclusive deals etc. **5, postpurchase behavior** - The buying process does not end when a customer purchases a product! - After doing a purchase, the customer, consume or use the product and then evaluates the experience to determine wheter is was satistfactory ocr un satisfactory. Realizing the actual value. - Satisfied customers become loyal and purchase again and spread positive words of mouth, so its important. - There are three possible post purchase outcomes: 1, customer satisfaction 2, post purchase cognitive dissonance 3, customer loyalty. - Customer satisfaction is a post consumptions evaluation of how well a retailer or a product meets customer expectations. - The post purchase cognotove dissonance becomes part of the customers internal information that affects future retailer and product decisions. - Customer loyalty builds brand loyalty - Marketers can take several steps to ensure post purchase satisfaction to foster lon term customer loyaltiy. Ex , set realistic expectations, ex training. Demonstrate correct products, ex diy. Offering money back guarantee. Stay in touch with customer after purchase, ex newsletter or erbjudanden. - **Post purchase cognitive dissonance:** also know as buyers remorse, an internal conflict that arises from an inconsistently between two beliefs or between beliefs and behavior. I - **Its generally occurs** when a customer questions a product after the purchase. - more likely for products that are expensive and invested a substantial amount of money, we tend to second- guess wheter it was a wise choice or not. Also with products that we don't buy often. Product that don't works as intendent - firms attempt to reduce dissonance by reinforce the decision: return policies, thank you letters, congratulations letter, tags on garment, - reducing post purchase cognitive dissonance is essential for companies to maintain positive customer relationships. - **Customer loyalty:** if the company meets up the standard for customer satisfaction and - Post purchase cognitive dissonance your customer may start to shoe loyalty. They only buy from one brand etc. - **They use CRM -- customer relationship management** - Negative word of mouth Lastly, even thoug the model depicts 5 different stages theoretically, customer may not go through all the stages in the same order as presented. - Example, impulsive buying, in that case, as soon as you recognize your needs, you jump right in to the phurcase decision, and hop over the search and evaluation step - High indiviment bying- thing that you are interested in - Low interested bying VIDEO 2 **CONSUMER DECISION JOURNEY. CDJ** The tradition funnel metaphor, consumers starts with a set of potential brands and methodically reduce that number to make a purchase. But it may not always work likes this all the time. the decision making process is now a circular journey with four phases: initial consideration set: the consumer consider an intial set of brands, based on brand perceptions and exposure to recent touch points. Active evaluation: consumers add a subtract brands as they evauate what they want. Moment of phurcase Post phurchase phase ???? Both models are important he image you shared presents a version of the **Consumer Decision Journey (CDJ)**, depicted as a circular process with four phases: 1. **Initial-consideration set**: This phase describes the initial part of the decision process where consumers identify a set of brands or products they consider from the start. These are the options consumers directly think of when a need or desire arises. 2. **Active evaluation**: During this phase, consumers actively gather information, compare options, and shop around to refine and expand their initial set of choices. This includes seeking information both online and offline, and assessing which products or services best meet their needs. 3. **Moment of purchase**: This is the stage where the actual purchase occurs. The consumer's research and evaluation culminate in a buying decision. 4. **Postpurchase experience**: After the purchase, the consumer's interaction with the product or service continues, which can influence their future purchasing decisions. This phase includes using the product, customer support, and the feedback consumers may provide through reviews or social media. A positive experience can lead to loyalty and continued engagement with the brand. **Loyalty loop**: This is the core of the model, illustrating how a positive post-purchase experience can lead consumers to bypass the initial consideration or active evaluation phases and make repeat purchases with the same brand. It shows that the consumer has developed brand loyalty that eliminates earlier stages in their future buying journeys. **Trigger**: This is what initially sets off the decision-making process, which could be a specific event or recognized need that prompts the consumer to consider a purchase. This model highlights the non-linear nature of consumer behavior and the ongoing relationship between the customer and the brand, which is more dynamic and embedded in continuous interactions compared to the traditional linear buying process. The **Consumer Buying Process** and the **Consumer Decision Journey (CDJ)** both describe the stages consumers go through when making purchasing decisions, but they approach it differently in terms of structure and complexity. Here's a breakdown of the key differences: **1. Linear vs. Non-linear** - **Consumer Buying Process**: Traditionally viewed as a linear, step-by-step process, where consumers move through a defined sequence of stages from recognizing a need to making a purchase and post-purchase evaluation. - **Consumer Decision Journey (CDJ)**: Non-linear and dynamic. Consumers may loop back to earlier stages, such as re-evaluating brands after considering them, or interacting with the brand in various touchpoints before making a decision. **2. Stages Involved** - **Consumer Buying Process**: 1. **Problem Recognition**: Realizing a need or problem. 2. **Information Search**: Seeking out information on possible solutions or products. 3. **Evaluation of Alternatives**: Comparing products or brands based on features, price, and other factors. 4. **Purchase Decision**: Choosing a product or service and completing the transaction. 5. **Post-Purchase Behavior**: Evaluating satisfaction after the purchase. - **Consumer Decision Journey (CDJ)**: 6. **Awareness**: Consumers become aware of a brand/product through various channels. 7. **Consideration**: They research, explore options, and compare choices. 8. **Evaluation**: More in-depth assessment, which could involve going back and forth between choices. 9. **Purchase**: Making the purchase. 10. **Post-purchase**: Post-purchase feedback, potential loyalty, or advocacy. Unlike the linear model, CDJ may lead consumers to re-enter earlier stages. **3. Emphasis on Interaction and Feedback Loops** - **Consumer Buying Process**: Assumes a straightforward progression from problem recognition to post-purchase. - **Consumer Decision Journey (CDJ)**: Recognizes multiple feedback loops. For example, after purchasing a product, consumers might share their experiences online, influencing others or even revisiting earlier stages themselves to re-evaluate alternatives. **4. Digital and Social Media Influence** - **Consumer Buying Process**: Developed before the rise of the internet and social media, so it doesn't fully account for the digital influences that can impact the buying journey. - **Consumer Decision Journey (CDJ)**: Developed with modern consumer behavior in mind, incorporating online research, social media, and customer reviews as key influences on decisions. **5. Customer Loyalty** - **Consumer Buying Process**: Views loyalty as something that develops after purchase and is relatively static. - **Consumer Decision Journey (CDJ)**: Sees loyalty as an active stage where consumers engage with the brand even after purchase, through advocacy, sharing, and re-purchasing, influenced by continued brand interaction. **Summary:** - The **Consumer Buying Process** is linear and focuses on specific steps consumers take from recognizing a need to making a purchase. - The **Consumer Decision Journey (CDJ)** reflects the more complex, interactive, and digital nature of modern consumer behavior, where consumers engage with brands at multiple touchpoints and may not follow a strict linear path. The CDJ offers a more dynamic and customer-centric model, suited for the digital age, where consumers\' decisions are influenced by a web of factors and experiences. VIDEO 3 in class activiy? **WEEK 4** VIDEO 1 **marketing information system MIS** The relationship between the marketing information and consumer insight is just like this -- when a diamond is found. Marketing information on its own may not gold much value, but it serves as the starting point for something far more valuable: the customer insight. These insight are the gems of knowledge that we extract from the information, and they become driving forces behind making better decisions in the world of marketing. Consumer insight become the key to understanding the consumers needs and wants. They reveal not only what a customer needs, but also how we can fullfill those needs, therby creating value for our customers and forging meaningful relationships with them. Through valuable insigths, companies can shape their marketing strategies and tactis accordingly. Consumer insight are important but difficult to obtain. that's because needs and buying motives are not always very obvious.and consumers always struggle with what thwy really want and why, they do not kow ehat they really want. There is also too much data - its hard to translate data into information. Marketers truly need better information and a more effective utilization of the avabile data. The real challenge lies thorough the vast data sources, both internal and external, to extract the right information and transform it into valuable customer insigthst. Famous saying by Steve jobs: that is not the consumers job to know what they want. Good consumer insight come from good marketing information. Companies are forming customer insight teams and implementing marketing information system (MIS) VIDEO 2 **SOURCES OF MARKETING INFORMATION** Marketers obtain information from the following sources: - Internal sources - External sources - Marketing research **Internal sources:** many companies build extensive internal databases electronic collections of consumer and market information obtain from data sources within the companies network. Collecting information inside the company. Information in the database may include: 1, information on customer charasteistich, 2, sales transactions, 3, website visits, 4, customer satisfaction and services records. Internal databases are often more fast and cheap than other sources, because the data is already exist somewhere within the company. But it may be incomplete or in the from form. **External sources:** marketers can collect information outside the company. Competitive marleting intelligence is a god example of utilizing external data sources. It refers to the systematic collection and anlysis of publicity avaibly information about consumers, copetiors ans developments in the marketing environment. Early warning of competitors, new products launches and changing markets and potential competitive strengths and weaknesses. Marketers gather information from three main sources: 1. **Internal sources**: Information that comes from within the company, such as sales data, customer feedback, and past marketing campaigns. 2. **External sources**: Information from outside the company, like competitor activities, market trends, and industry reports. 3. **Marketing research**: Specific research efforts conducted to gather data on consumer behavior, market needs, and potential opportunities. VIDEO 3 **Marketing research:** - Marketers often needs formal studies to provide customer and market insights for specific marketing situations and decisions. In such cases marketers need to conduct marketing research. - Marketers usually starts by using internal as well as external data, and then they move on to conducting marketing research to find specific information and solutions. - What this means is getting marketing information and consumer insight usually takes all the three different sources, and they are highly interrelated. - The marketing research process involves a five step application of the scientific method. - **Step 1:** defining the problem. In this stage both the manager and the researcher work together to identify the key decision issues that require information. Understanding the problem is crucial as it lays the foundation for the entire research process. - **Step 2:** analyzing the situation. Here we conduct a formal study of information that is already avaible in the problem area. By examining existing data, we gain valuable insights that help shape the research direction. - **Step 3:** getting problem specific data. This is when we collect data customized to the decision makers unique needs. Various methods like surveys, interwievs and observations to gather revlevant information. - **Step 4:** interpreting the data. Once the data is collected, we transform the raw information into useful insigths. Analyzing the data help us draw meaningful conclusions and uncover patterns and trends. - **Step 5:** solving the problem. We deliver our recommendation to the marketing manager. They are responsible for implementing the recommendation and taking appropriate actions based on the insights gained from the research. - At any step a solution can be find, and an early solution can save valuable time and resources. The statement \"The marketing research process involves a five-step application of the scientific method\" refers to how marketers systematically gather, analyze, and interpret data using a structured approach akin to the scientific method. Here's a breakdown of these five steps typically involved in the marketing research process: 1. **Defining the Problem and Research Objectives**: This initial step is crucial as it involves clearly identifying the specific problem or opportunity the research is intended to address. This definition helps guide the entire research process and ensures that the gathered data is relevant to the business\'s needs. 2. **Developing the Research Plan**: The second step involves creating a detailed plan that outlines the types of data needed, the sources from where it will be collected, and the research instruments (such as surveys or interviews) that will be used. The plan also specifies the sampling method to ensure the results are representative of the larger population. 3. **Collecting the Information**: This step is the execution phase where data is gathered according to the research plan. It involves extensive fieldwork or data collection from relevant sources. Accuracy and thoroughness in data collection are critical to the credibility of the research results. 4. **Analyzing the Information**: Once data is collected, it needs to be analyzed to extract meaningful insights. This involves applying statistical and analytical techniques to interpret the data and understand patterns, trends, and relationships. 5. **Presenting the Findings and Making Decisions**: The final step is to compile the analyzed data into a report that presents the findings in a clear and actionable manner. This report should help decision-makers within the organization to make informed strategic choices based on the research insights. Each of these steps requires careful consideration and execution to ensure that the marketing research provides valuable and actionable insights, following a methodical and scientific approach. - **Step 1 defining the problem.** - This is the most difficult step in the research process. - Its important to not confuse problems and symptoms in marketing. - Setting reaserch objectives **Step 2 analyzing the situation** - The analysis serves as an informal study that aims to answer the question, what information do we already have in the problem area? - One of the key benefits of conducting a situational analysis is that it helps educate a researcher, particularly when dealing with unfamiliar problem areas. - Through the situation analysis, the researcher gains valuable background information, that may lead to an early identification of a solution. - Additionaly you can shed light on the types of information that are genuienely necessary to address the problem effectivetly. - A situation analysis usually involves the use of secondary data which can provide relevant answers or background information related to the reaserch problem - **Secondary data:** this refers to information that has already been collected or published. It can be an exelent starting point for reaserchers because its readily avaibale and may offer valuable insigths related to the reaserch problem. This can consist of companies internal and external data. - Why dig in secondary data before gathering primary data? The answer lies in the efficiency and excess ability of secondary data. It allows reasercher insight and background informaiotn without the need for costly and time consuming data collection efforts. - One significant advantage of secondary data is that there is a vast of it accessible. It can be sourced both from within in and outside the company. **Primary data:** this data is specifically collected to address a current problem. It is obtain through observation, or questioning methods directly address the research problem. **Step 3 Getting Problem - specific data** - We need to collect primary data, that is individual and relevant to the situation. - They key issues to colleting primary data, which can be done through two phasing methods: observing and questioning. - Observing: video of consumers shopping, track consumer clicks on a website, loyalty card data from retailers. Observing behaviors in real life situations. It can provide valuable insights how people interact with products or services. - Questioning is another method to collecting primary data. It involves directly asking individuals questions to gather information. Such things as surveys, questionaries and customer interwievs. - Both observing and questioning can be categorized as qualitive or quantative reaserch, respectievely. - Questioning vs observation and qualitative vs quantitative ### Questioning vs. Observing - **Questioning**: This involves actively asking participants questions to gather data. It can be done through various means such as interviews or surveys. - **Observing**: This method involves watching how participants behave in different situations. It can provide insights that questioning might not, as it captures natural behavior in real contexts. ### Qualitative vs. Quantitative - **Qualitative Methods**: These are more subjective and focus on understanding the depth of consumer behavior and attitudes. They provide insights into the \'why\' behind certain behaviors or preferences. - **Questioning examples include**: - Depth interviews: Detailed conversations with a participant focused on their perspectives and experiences. - Journey map interviews: Discussing with participants the detailed path they take from needing a product to purchasing and using it. - Focus group interviews: A group of people are asked about their perceptions, opinions, beliefs, and attitudes towards a product, service, concept, advertisement, idea, or packaging. - **Observing examples include**: - Simulated situations: Observing how people behave in controlled environments that simulate real-life situations. - Ethnographic research: Immersive observation where the researcher observes people in their natural settings. - Become a customer: Researchers put themselves in the shoes of customers to experience and understand the customer journey. - **Quantitative Methods**: These involve numerical data and aim to quantify variables to generalize results from a sample to the population of interest. They provide measurable, numerical data and focus on the \'what\' of consumer behavior. - **Questioning examples include**: - Online & mail surveys: Questionnaires that are distributed and filled out electronically or sent by mail. - Telephone surveys: Surveys conducted over the phone. - Personal interview surveys: Face-to-face surveys where a researcher meets with the respondent to collect data. - **Observing examples include**: - Experiments: Controlled tests where different variables are manipulated to observe the effects on behavior. - Clickstream tracking: Monitoring the websites, pages, and links that users click on when browsing, which helps to understand online behavior. The layout helps in understanding how each type of research can be used to gather different types of data, whether it\'s in-depth understanding of personal consumer experiences or large-scale data that can be statistically analyzed. - VIDEO 4 **WEEK 5** VIDEO 1 UNDERSTANDING CRM - **CUSTOMER SUCCESS CONCEPT: customer satisfaction** means that the offering meets or exceeds the customers expectations. When our customers are satisfied, it indicates that we have delivered on our promises and provided them with a positive experience. - Lest say you order a pizza from New Delhi, if the actual taste of the pizza matches or exceeds your expectations, then satisfaction happens. However, if it falls short of your expectations, than this satisfaction occurs. - **Customer loyalty:** it means the degree to which the induvial will resist switching, or defecting from one offering to another. Customer loyalty is a significant factor in building strong, long-lasting relationships. Whats interesting is that high level of customer satisfaction often lead to high level of customer loyalty. - when we have satisfied and loyal customers, they not only keep coming back for more, but they also recommended us to others, helping us expand our customer base. This in turn lead to higher revenue and profitability, so maximizing customer satisfaction is critical for our success. - **All satisfied customers are NOT equal.** The 80-20 ruel, also known as the parental principle, states that only 20% of costumer contribute to 80% of the profits. In other words, a relatively small group of customers is responsible for a significant portion of a businesses success. - we must also consider the diverse range of customers we encounter. **Some customers can be challenging** to deal with, and their behavior can have a significant impact on an organization. For example there are customers who are abusive to the point that it affects the morale of our employs. Ensuring a healthy and positive work environment is crucial, and dealing with such's customers requires tact and sensitivity. Additionally, **some customers may have excessive demands** that put strain on their resources and operations. **There are also customers with a poor reoutation themselves,** - **thats why the concept of CRM came out.** It refers to a business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty with a marketers most valuable customers. **Simply** put , CRM aims to increase profits through accusations and retention of the right customers, while offering them the right products at the right time. - **One of the most important matrix in CRM** is the customer lifetime value or CLV. The CLV refers to the predicted net profit a company can expect to gain from customer throughout their entire relationship with the business. It is a metric that helps companies to understand the long term value of their customer and guides decision making processes related to marketing strategies and customer retention. CLV takes into account various aspects of the customers relationship with the company, including their purchasing behavior, frequency of purchases, average transactions value, expected duration of the relationship. By calculation the CLV, buisnisness can identify their most valuable customers. It is possible to actually calculate an estimate of the projected financial returns from a customer or **return on customer investment.** This analysisn provides a very useful strategic tool for desiding which customers deserve whar levels of investments of various resources, including money, people, employess, time, information and so on. - **Process cycle for CRM:** there are 4 different steps. 1, knowledge discovery. 2, marketing planning. 3, customer interaction. 4, analysis and refinement. - \- **first phase: knowledge discovery:** it's the process of analyzing the customer information acquired through various customer touch points. Customer touch points are where the selling firm tohuces the customer in some way, thus allowing for information about him to be collected. These might include point of sales systems, call center files, internet acess, direct selling contracts and other customer contract. **-- a data warehouse** environment is the optimal approach to handling all the customer data generated through the touchpoints and transforming those data into useful information. A data warehouse affords the opportunity to combine large amount of information. **Data mining-** is a sophisticated analytic approach to using the massive amount of data accumulated through the CRM system to develop segments and micro segments of customers for purposes of either marketers research or development of marketer segmentation and target marketing strategies. - The knowledge discovery phase of the CRM process cycle becomes the focal point for many direct marketers. Direct marketing involves utilizing the data generated through this phase to develop key lists of customers prospect who are then contacted individually. This activity is often referred to as **database marketing.** - **Second phase: marketing planning:** which represents a key use of the output from the knowledge discovery phase. That is the information enables the capability to develop marketing and customer strategies and programs. CRM input into the marketing planning process is particularly useful in developing elements of the marketing mix strategies, including the marketing communication mix in integrated - ways to customize approaches to different customer groups. - **The third phase is customer interaction:** it represent the actual implementations of the customer strategies and programs. This includes the personal selling effort as well as all other customer directed interactions. These must be aimed at all the customers touchpoints or channels of customer contact booth in person and electronically. - **The third phase is the analysis and refinement:** is where organizational learning occurs based on response to the implemented strategies and programs. Think of it as market research in the form of a continuous dialog with customers, facilitated by effective use of CRM tools. VIDEO 2 UNDERSTANDING BIG DATA - Big data: the ever increasing quantity and complexity of data being continuously produced by technological sources such as laptops, smartphones and other smart devices. - Big data has helped marketers better understand customer behavior. These include the varying experiences that make up the process through which customer choose to purchase a product or service. The different touchpoints a customer have with an organization through their use of product or service. And the ways in which customers interact with and experience different products and services. In fact some managers often include a fifth V - **Structure data** refers to data that is generated in such a way that a logical organization is imposed onto during its generation thus enebling it to be more readily and liable for knowledge creation. Structure data can easily be placed into specific categories and stored within information systems for future analysis. Structure data is typical either numeric or text, female or male for example. It is the type of data that is generally found in relational databases or spreadsheets, such as excel. It is orginezd into tables with columns that make it clear what types of information will be included in each of the entroes within a given column. - **Unstructed data** refers to the data that is generated in such way that it does not possesses a specific organizational structure that renders it readily and liable for knowledge creation. Unstructured data may not be immediately actionable in the way that structured data is, but it still has become the most common from of data avaible to organizations and potentially rich sources of deep insigts on customer behavior and customer/ provider relationship. It can also include posts that people make on social media, - **Semi-structured** data fits in between structured and unstructured data in the sense that it contains some elements of structures that makes it easier for machines to understand its organization, but still conations parts that do not possess an approach premium level of structure to make them readily analyzed by automated means for knowledge creation. It does not readily adhere to a strict set of standard. A example from the web would be extensible Markup language XML files. XML files have tags ( structured data) but need more analysis to create other data in the files. - **The typical sources of big data:** - VIDEO 3 : text analysis: LIWC. liwc.app/demo **WEEK 6** VIDEO 1 MARKET SEGMENTATION \- **design a customer value driven marketing strategy, this second stage often narrows down to segmentation, targeting and position = STP.** \- **the pizza analogy** -- lets say you bake a pizza for lunch, after taking out of the oven, what do you do first? You cut the pizza into little pieces. For that you may need to think abot the shape and the size of each slice. **In marketing that process should be called segmentation.** Dividing a market into meaningful smaller markets or submarkets based on common characteristics. \- Next you need to pick the very first slice to eat. In that process you may think about which slice seems to be the most delicious or which slice has your favorite topping. **That process should be targeting.** Evaluating the market segments, then making decisions about which among them is most worthy of investment for development. Choosing the most appealing and a profitable market segment to win first. \- And then finally you pick your targeted pizza slice and eat it as intended. **That process should be related to the phase called positioning.** Communicating one or more sources of value to customers in ways that connect needs and wants to what the producer has to offer. Positioning strategies are executed through the development of unique combination of the marketing mix variable. \- **These three steps are very conventional and well established process to build a marketing strategy.** So basically, if you take any marketing courses, you will hear about STP. \- STP is often refed to as a **divide** and **conquer** strategy. Segmentation and targeting are the divide part, while the positioning is the conquer part. \- In life we can not satisfy everyone in the world, nor can be liked by everyone. And actually there is no need to strive for that. **Similary,** no single product can appeal to every person in the world. That's why we need to focus on specific markets only, and this is where segmentation comes in play. **SEGMENTATION** -- the process of dividing the large and diverse mass market into subsets of consumers who share common needs, characteristics, and behavior. - After a marketer has segmented its market, the firm selects the appropriate segments to target. Targeting involves selecting one or several appropriate segments to focus on first. - The target market is simply the segment toward which a firms maekreting efforts are directed. - Selection of the target markets should be based on a thorough strategic analysis of the organizations external environments and internal situations. **External enviroments:** competitiors, technical, political, socio -- cultural environment. - Ultimately, this allows companies to match their strengths with market opportunities and run their business more smoothly. En bild som visar text, klädsel, skärmbild, person Automatiskt genererad beskrivning This five step model depicts a strategic framework used by marketers to effectively reach and engage their target customers. STEP 1: **establish strategy or objectives** - in this initial step, the company sets its overall marketing objectives and goals. - This includes defining what they want to achieve with their marketing efforts, such as increasing market share, boosting sales, or expanding into new markets. STEP 2: **use segmentation methods** - Here the company employs various segmentation methods to divide the market into smaller, homogeneous groups based on shared characteristics or needs. - By segmenting the market, the company gains a deeper understanding of its customers and can tailor its marketing strategies to meet the specific needs of each segment. - **Geographic segmentation:** organizes customers into groups on the basis of where they live. Many firms use regional brands of popular products. Ex, dunkin donuts soup. Understanding regional preferences can define a company's success or failure. - **Demographic segmentation:** most common strategy. Age, gender, income, education. These are easy to identify. EX lego. They divided the entire market into small segments based on consumers demographic information. Lego for adults for mindfulness. - **Geo dempgraphic segmentation:** a hybrid of the two below. - **Psychographic segmentation:** it's a segmentation method based on personality, lifestyle and values. An important challenge of using this involves the reliability and validity of its measurement. Unlike geographic and demographic measures which are objective in nature, psychographic measures attempt to get into the head of the consumer. Oneway to betetr asurer that sush measures are reliable and valid is through the use of standardized questionaries that reflect the experiences of a large number of users over an extended period. One popular instrument is VALS and tapestry - **Benefit segmentation:** dividing the market into segments whose needs and wants are best satisfied by the products benefits can be a very powerful tool. Example, movies genres. It allows movie studios to taolir their marketing efforts and content to meet the specific needs and desire of different groups. - **Behavioral segmentation:** divides customers into groups based on benefits sought or usage patterns. **Benefits sought:** looks to identify the crucial value-adding properties of an offering. The ide to going to one store and get everything. **Usage patterns:** occasions give a reason to buy STEP 3: **evaluate segment attractiveness** - Once the market is segmented, the company evaluates the attractiveness of each segment. - Factors like size, growth potential, competition and combability with the company's capabilities are considered to determine which segments are worth pursuing. - **Attractive segments should be highly identifiable.** Firms must be able to identify who is in within their market to be able to design products or services to meet their needs. It is equally important to ensure that the segment are distinct from on another because too much overlap between segments means that distinct marketing strategies aren't necessary to meet segment members need. - **Marketers should evaluate how substantial each market segment is.** Just because a firm can find the market does not necessarily mean it represent a good market. If a merket is too small it wont generate profits. If its buying power is insignificant, despite its size, the marketing mix cannot be supported. - **Marketers should also evaluate the reachability of each market segment.** The best product cannot have any impact no matter how identifiable or substantial the target market is if the market cannot be reached or accessed through persuasive communications and product distribution. The consumer must know that the product exists, understand what it can do and recognize how to buy. - **Marketers need to assess the responsiveness of each market segment.** Customer in one segment must react similarly and positively to the firms offering. If a firm cannot provide products and services to the segment, it should not be targeted. Example; GM motors - **Marketers should address the potential profitability of each segment, both current and future.** Some key factors to keep in mind in this analysis include market growth rate, future growth rate, market competitiveness, market access cost. STEP 4: **select the target market** - In this step, the company selects one or more target markets from the evaluated segments. These are the specific groups of customers that the company will focus its marketing efforts on. - Target market selection is crucial as its ensures the company's recourses are utilized effectively. - Aftter evaluating each segment, marketers need to select one or more markets to pursue. - The key factor is to pursue the market with the characteristic of the target market. - **Should the largest fastes-growing, and most profitable market segment always be the best option for all firms? No.** if the company is a new startup, or small with limited resources then the company may not be able to complete in the largest and most profitable market segment. Instead the company may work better with smaller, less fast growing segments where they can more easily satisfy their target customers. - **The key** **consideration in selecting a target market is the company's actual capability, matching the capability to each market segment, and selecting the most suitable and compatible market segment.** - In addition to this below, marketers need to select a targeted marketing approach, depending on the characteristic of the selected target markets. **Four different targeting marketing strategies can be used. Undifferentiated or mass marketing, differentiated, concentrated, micro marketing ( one to one marketing).** - Examples of **differentiated,** coca-cola - **Concentrated --** cosmetic brand clinique - **micro marketing --** suit tailor shop STEP 5: **identify and develop positioning strategy** - Lastly the company identifies its unique positioning strategy for each target market. - Positioning is about creating a distinct and favorable image of the company's products or services in the minds of customers. - It involves highlights the key benefits and attributes that sets the company apart from the competitors. - Defining marketing mix variable so target customers have a clear, distinctive, and desirable understanding of what the product does. - Positioning is about finding an answer to the question of how we want potential buyers to see us. - In positioning, the differentiation from competitors is very critical. This differentiation can be coined with the term **value proposition**. Value proposition is the full mix of benefits on which a brand is differentiated and positioned. So basically, it's the whole cluster of benefits that company's promises to deliver, and the competitors do not. **It's the result of positioning.** - Developing positioning strategies mainly includes two different steps: **drawing a perceptual map** and **writing a positioning statement** which is delivered from company's customer value proposition. - **A perceptual map** visualizes the positioning of brands on important dimensions. It can be used to identifying brand perception.  - Identifying the gap between the actual brand perception and the desired brand perception and then determining if any changes are needed in our current marketing strategy. - It can also helps us identifying competition and market opportunity. Drawing a good perceptual map enables us to visualize and identify our competition more accurately. In addition to competition,. To identify market opportunities, we must consider gaps in the market. **Gaps** are blank spaces on perceptual maps. **First** gaps indicate a true opportunity in the market that we might be able to pursue, a blank= no competitors there. **second,** gaps can be a combination of attributes that nobody actually needs or wants, which is why there is no competitors there. so even if you find a blank or gap you have to check first that whether this blank is unfound, lucrative market or just a dessert that nobody actually needs or wants. **Third**, gaps can indicate that a combination of attributes that is impossible to deliver to the consumer without the development of new technology. **You check your current position and fins yout ideal gaps by drawing a perceptual map.** - **How to draw a map:** **1,** identify the important attributes for a product or brand class. **2,** discover how customers rate competing products or brands on these attributes. **3,** discover where the company's product or brand is on these attributes in the minds of customers. **4,** reposition the company's brand or product in the minds of consumers. **By analyzing the perceptual map, we can identify gaps or opportunities in the market areas where we can differentiate ourselves from competitors or potential segments that are undeserved.** **After drawing a map, you now need to write a positioning statement based on customer value proposition.** - Writing positioning statement can provide direction for marketing strategy. En bild som visar text, klädsel, skärmbild, Människoansikte Automatiskt genererad beskrivning -  - En bild som visar text, klädsel, skärmbild, kvinna Automatiskt genererad beskrivning  **Positioning as a leader:** - If you are the first brand to enter and define a market, you can position as a leader. Ex coca-cola - Not everyone can be a pioneers. Most companies are followers and they still got to do something. When you are a follower, you can pursue a doing the **opposite positioning strategy.** A classix example is 7UP. They compared dried up cola nuts, with juicy colorful uncola nuts, they are actually fresh lemon and limes. **Positioning as follower:** - Turning disadvantages to advantages - AVIS "we try harder" rooting for underdogs **Repositioning:** - Repositioning attempts to change the way consumers perceive a brand. - Ex Gucci. They focused on digital marketing, collaborations - **By following the STP process companies can align their marketing efforts with the needs and preferences of their target customers, leading to more effective and successful marketing campaigns.** **Although this step process implies that the decision making is linear, this may not be the case.** For instance, a firm could start with a strategy but then modify it as it gathers more information about various segments attractiveness. VIDEO 2 NOTES IN VIDEO 1. VIDEO 3 NOTES IN VIDEO 1 VIDEO 4 IN CLASS ACTIVITY **Segmentation method:** demographic segmentation (age) **Targeting:** adults **Repositioning:** question Chocolate milk for adults - protein after training **WEEK 7 special guest** VIDEO 1 CONCEPT DEVELOPMENT - First you think about what does the market want? - The goal of all business activities is to give profit to the company - **Product insight team:** organize a report that describes the needs of the market and the expected sales when creating such a model - **Product planning team:** review the report considering the cost on investment, sales volume when developing such a model, and its position in the market. - **When its proven that the project will give a profit to the company, the project can then begin.** - **STP = segmentation, targeting, positioning.** Targeting and positioning is focused on in the concept development process. - The main target of consumers in the car industry= a car that men like or a car that women can ride comfortably, targeting family consumers or younger generations. - **FGI= Focus Group Interview ( 5 consumers are invited)** - **IDI= In- Depth Interviw ( about 2 consumers are invited)** - Hankook reaserch is a popular reaserch company in south korea - **Home visit interview --** you go home to consumers and make observations. Consumers might not tell the truth in interviews, they can exaggerate or distort the story - **UX Shadowing =** is to ride a car with a consumer and check the places that consumers often visit, their driving environment, driving habits and parking environment. - **Consumers assignment** - **Expert/influencers** - VIDEO 2 PRODUCT DEVELOPMENT - In the product development step, people from different fields are involved together. Design, finance, plant, marketing, r&d - Conflicts can arise because different divisions have different goals, ex r&d department wants to develop a car with outstanding performance and the design department wants to create designs that will suprise the world. - Product marketers should make judgments and coordinate opinions to draw a better result. - They focus on four aspects in product development. The first is **package, its called the data.** Its refers to the size of the car. **Design, it has nowadays become important in the market.** The second is **performance, which is a very important factor in cars, ex engine.** The third is **features, the are where marketers can have the biggest influence on ,** the fourth thing is the **price. The decide the price position in the market.** Setting the price is the most difficult job for the product marketers. - What is the role of marketers who represent market? Examplw they have to make a decision on whether to increase the space of the back seats. To make decisions and give suggestions. - VIDEO 3 LAUNCHING - 1, Set a model name - 2, the car (kona) was prepared to be manufactured. If a system error occurs, your country's order may become invalid. - As a product marketer, we prepare product guides related to our products to advertise our vehicles in the market. - **the first launch is called the world premiere.** When the launch date doesn't suit the event date, a separate world premiere is prepared to release the product to the world.