...MARKETING NOTES (Lecture1) Terminology Marketing: a social & managerial process by which companies create value for customers and build strong customer relationships to capture value from customers in return. Needs: Absolute necessities required for sustaining life. E.g.: “Food, Clothing, Warmth, Home, Telecommunication” Wants: An upgrade of basic needs in which individuals require specific objects or options. E.g.: “Lays, Nike Shoes, Smartphone” Demands: is when an individual wants something which is premium, but he also has the ability to buy it, then these wants are converted to demands. E.g.: “BMW, Armani Shoes, Gold IPhone” Market Offering: is the total offer to your customers, which includes elements that represent additional value to your customers other than the product itself, such as availability, convenient delivery, technical...
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...DEFINING THE MARKETING FOR THE 21ST CENTURY 1 C H A P T E R _________________________________________________________________________ INTRODUCTION Change is occurring at an accelerating rate; today is not like yesterday, and tomorrow will be different from today. Continuing today’s strategy is risky; so is turning to a new strategy. Therefore, tomorrow’s successful companies will have to heed three certainties: ➤ Global forces will continue to affect everyone’s business and personal life. ➤ Technology will continue to advance and amaze us. ➤ There will be a continuing push toward deregulation of the economic sector. These three developments—globalization, technological advances, and deregulation— spell endless opportunities. But what is marketing and what does it have to do with these issues? These three developments—globalization, technological advances, and deregulation— spell endless opportunities. But what is marketing and what does it have to do with these issues? Marketing deals with identifying and meeting human and social needs. One of the shortest definitions of marketing is “meeting needs profitably.” Whether the marketer is Procter & Gamble, which notices that people feel overweight and want tasty but less fatty food and invents Olestra; or CarMax, which notes that people want more certainty when they buy a used automobile and invents a new system for selling used cars; or IKEA, which notices that people want good furniture at a...
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...Marketing Chapter 1: Defining Marketing for the 21st Century * Marketing plays a key role in addressing challenges such as helping firms to prosper financially and survive in the face of an unforgiving economic environment * The broader importance of marketing extends to society as a whole => it helps introduce and gain acceptance of new products that have eased/enriched people’s lives * Good marketers seek new ways to satisfy their customers and beat their competition => if they don’t carefully monitor their customers and competitors and don’t continuously improve their value offerings and marketing strategies, don’t satisfy their employees, stockholders, suppliers and channel partners in the process, the firm is at risk to fail * What is marketing? => identifying and meeting human/social needs meeting needs profitably * Selling is not the most important part of marketing the aim is to know and understand the customer so well that the product/service fits him and sells itself * What is marketed? => 10 main types of entities 1) Goods => physical goods such as canned, bagged, fresh, and frozen food products and other tangible items 2) Services => e.g. airlines, hotels, car rentals, barbers, etc. => mixes of good and services are also possible such as restaurant because they offer food and service at the same time 3) Events => 4) Experiences => e.g. Walt Disney World 5) Persons => e.g. artists, musicians, etc...
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...Marketing Chapter 7 Notes Product, Services, and Brands: Building Customer Value I. What is a product? * Product: anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. * can include events, persons, places, organizations, ideas. * Services: An activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything. * Examples: banking, hotel, airline travel, retail, wireless communication * A company’s market offering often includes both intangible and tangible goods and services. Two extreme ends: pure tangible goods, pure services. * In order for companies to differentiate their offers, they are creating and managing customer experiences with their brands or companies. * Levels of Product and Services: three main levels 1. Core customer value. “What is the buyer really buying?” Most basic level. 2. Actual Product. Need to develop product and service features, a design, a quality level, a brand name, and packaging. 3. Augmented product. Must build an augmented product around the core benefit and actual product services and benefits. * “Consumers see products as a complex bundles of benefits that satisfy their needs. When developing products, marketers first must identify the core customer value that consumers seed from the product. They must then design the actual product and find ways to augment...
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...BA 170 Exam #2 Notes March 19, 2015 Products and Services Product Anything that can be offered in a market for attention, acquisition, use or consumption that might satisfy a need or a want May be defined as everything both favorable and unfavorable that a person receives in an exchange Service is a product that consists of activities, benefits or satisfaction that is essentially intangible and does not result in the ownership of anything. Experiences represent what buying the product or service will do for the customer 3 levels of Product 1. Core customer value - What is the customer buying? 2. Actual product – What is the core benefit of the product? (Brand name, features, design, packaging, quality level) 3. Augmented value – what are the additional customer services and benefits? (Warranty, product support, deliveryand credit, after sales service) Product Classification 1. Consumer products a. Products and services for personal consumptions b. CONSUMER PRODUCT CLASSIFICATION: i. Convenience Products – consumer products and services that the customer buys frequently, immediately and with a minimum comparison and buying effort ii. Shopping products – consumer products and services that the customer compares carefully on suitability, quality, price and style iii. Specialty products – products with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort iv...
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...profile of the customers in each segment Segmentation Method | Sample Segments | 1. Geographic | Country, province, city, urban, rural, climate, continent: North America, Asia, Europe, Africa, Region: Atlantic, Central, Western Canada | 2. Demographic | Age, gender, income, education, occupation, ethnic background, religion, family life cycle | 3. Psychographic | Lifestyles, values, self concept | 4. Behavioural | Benefits derived, usage rates, user status. Loyalty | 1. Geographic Segmentation – the grouping of consumers on the basis of where they live * Divide market into separate geographic units of countries, regions, provinces, cities, neighbourhoods, climates, etc. * Then hey can develop appropriate marketing programs according to the areas * Geographic segmentation is most useful for companies who’s products satisfy needs that vary by region 2. Demographic Segmentation – the grouping of consumers to easily measured, objective characteristics such as age, gender, sex, income, education, race, occupation, religion, marital status, family size, family life cycle, and home ownership * These variables are the most common method to define segments because they are easy to identify and because they are...
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...24108 Marketing Foundations 1. Introduction to Marketing and the Marketing Environment What is marketing? * “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” * Marketers need to learn what customers, clients, partners and society want * Marketers use information, develop new ideas and offer something unique/special * Ongoing process Why study marketing? * Market orientation firms have better performance * Better profits, sales volume, market share, return on investment * Marketing drives economic growth/stimulates consumer demand * Every employee is a stakeholder in the success of their organisation The Marketing Evolution * Changed from: * Trade * Production orientation * Sales orientation (e.g. black vs. blue) * Market orientation (i.e. what colour do you want, and matching the product) * Societal market orientation (e.g. to stop consumerism) * Used by small and large, those selling goods and services, private, public, profit and non-for-profit Marketing Exchange * Mutually beneficial transfer of offerings of value between buyer and seller * Two or more parties, each with something of value * All must benefit * Exchange must meet expectations of both parties What is value? * “A customers overall assessment of the...
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.... Principles of Marketing: 8/28/14 A. Marketing defined: is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return. 1. To be able to measure profitable customer relationships 2. Aim of marketing is to make selling unnecessary. B. Customer Relationships: C. Chapter one Terms: 1. Needs-states of felt deprivation. 2. Wants-the form human needs takes as they are shaped by environment and character. 3. Demands-human wants that are backed by buying power. 4. Market offerings-some combination of products, services information or experiences offer to a market to satisfy a need or want. 5. Marketing myopia-mistake of paying more attention to the specific product as co. offers than to the benefits and experiences produced by t these products. 6. Exchange-the act of obtaining a desired object from someone by offering something in return. D. Chapter one Terms Cont.: 1. Marketing management-the art and science of choosing target markets and building profitable relationships with them. 2. Production concept-the idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency. 3. Product concept- 4. Selling concept 5. Marketing concept 6. Societal marketing concept E. Chapter one terms Cont. 1. Customer relationship management 2. Customer-perceived...
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...CHAPTER 16 ADVERTISING, SALES PROMOTION, AND PUBLIC RELATIONS |I. |LOOKING AHEAD: PREVIEWING THE CONCEPTS | | | | | | | |II. |ADVERTISING | | | | | | | |A. |Setting Advertising Objectives | | | | | | | |1. |Informative advertising | |2. |Persuasive advertising ...
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...Marketing Strategy Do I need a marketing strategy? Making and using a marketing strategy has a strong positive impact on profitability. This is because firms that employ a marketing strategy tend to focus on their customers and markets, integrate their marketing responses and work out in advance where their profits will come from. This briefing answers a range of questions people in small business often ask about marketing strategy: * what is a marketing strategy? * what's the difference between marketing strategy and business strategy? * where does the marketing mix fit in? * what is a marketing plan? * what information do I need and where do I get it? * what should my marketing strategy consist of? * how do I get started? What is a marketing strategy? A marketing strategy defines objectives and describes the way you're going to satisfy customers in your chosen markets. It does not have to be written down but it is easier to communicate to outsiders, like your bank manager or other investors, when it is. A set of strategies found quite commonly in smaller businesses are growth strategies. One way to look at strategies to grow your business is through the way you will use products and markets or customers. * Current product/current market Market penetration is a strategy of increasing your share of existing markets. You might achieve this by raising customers' awareness of your products and services or finding new customers. For further information...
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...IGCSE Business Studies Marketing revision notes Neil.elrick@tes.tp.edu.tw Table of Contents Table of Contents ...................................................................................................... 2 Topic: Kinds of Market ............................................................................................... 4 Topic: Role of marketing in business ........................................................................... 6 Topic: Segmentation .................................................................................................. 7 Topic: Market research............................................................................................... 9 Questionnaires .........................................................................................................10 Topic: Marketing strategy - introduction .....................................................................11 Promotion - advertising .............................................................................................17 IGCSE Business Studies Marketing revision notes Neil.elrick@tes.tp.edu.tw Topic: Introduction to Marketing What is marketing? What makes someone buy a product? Or more importantly, what makes them buy the product you are trying to sell? In business, you need to persuade a customer to part with money in exchange for a good or a service. You have to decide on what the product is going to be like (e.g. shape, colour, size, features); at what...
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...DEVELOPING OF MARKETING STRATEGIES AND PLANS C H A P T E R 2 ___________________________________________________________________________ INTRODUCTION How do companies compete in a global marketplace? One part of the answer is a commitment to creating and retaining satisfied customers. We can now add a second part: Successful companies know how to adapt to a continuously changing marketplace through strategic planning and careful management of the marketing process. In most large companies, corporate headquarters is responsible for designing a corporate strategic plan to guide the whole enterprise and deciding about resource allocations as well as starting and eliminating particular businesses. Guided by the corporate strategic plan, each division establishes a division plan for each business unit within the division; in turn, each business unit develops a business unit strategic plan. Finally, the managers of each product line and brand within a business unit develop a marketing plan for achieving their objectives. However, the development of a marketing plan is not the end of the marketing process. High-performance firms must hone their expertise in organizing, implementing, and controlling marketing activities as they follow marketing results closely, diagnose problems, and take corrective action when necessary. In today’s fast-paced business world, the ability to effectively manage the marketing process—beginning to end—has become an extremely...
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...Marketing book notes Chapter 1: * Marketing is managing profitable customer relationships. The aim of marketing is to create value for customers and capture value from customers in return * Marketing is managing profitable customer relationships. The twofold goal of marketing is to attract new customers by promising superior value and to keep the grow current customers by delivering satisfaction * Marketing must be understood not in the old sense of making a sale- “telling and selling” – but in the new sense of satisfying customer needs. If the marketer understands customer needs; develops products that provide superior customer value; and prices distributes, and promotes them effectively , those products will sell easily * Selling and advertising are only part of a larger marketing mix – a set of marketing tools that work together to satisfy customer needs and build customer relationships * Marketing- the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return Understanding the marketplace and customer needs: * 1) needs, wants, and demands * 2) market offering (products, services, and expectations) * 3) value and satisfaction * 4) exchanges and relationships * 5) markets Customer needs, wants, and demands * The most basic concept underlying marketing is that of human needs. Human needs are states of felt deprivation. They include physical...
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...Quiz #3 Marketing Management Chapter 14 What are the five major promotional tools? 1. Advertising i. Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. 2. Personal Selling ii. Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships. 3. Public Relations iii. Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading odd unfavorable rumors, stories, and events. 4. Direct Marketing iv. Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. 5. Sales Promotion v. Short-term incentives to encourage the purchase or sale of a product or service. What are the elements in the communications process? 1. Consumers 2. Marketing Strategies 3. Communications Technology What are the three types of appeals in message content? 1. Rational Appeals i. Relates to the audience’s self-interest. 2. Emotional Appeals ii. Attempt to stir up either negative or positive emotions that can motivate purchases. 3. Moral Appeals iii. Directed to an audience’s sense of what is “right” and “proper”. What are the four common methods used to set a promotional budget? 1. Affordable...
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...Special Topics in Marketing Designing Customer Driven Strategies: Positioning Differentiation Targeting Segmentation Create Value for the Targeted Customers Decide on a Value Proposition Select Customers to Serve To Design a Customer Driven Strategy: * Select Customers to Serve: * Segmentation: Dividing the market into smaller groups with distinct needs, characteristics or behaviours who might require separate products or marketing mixes * Targeting: The process of evaluating the attractiveness of each segment and selecting one or more segments to enter * Decide on the Value Proposition: * Differentiation: Differentiating the firm’s offering to create a value for the target customers * Positioning: Arranging for a market offering to occupy a clear, distinctive and desirable place relative to competition in customers’ minds. Chapter One: Segmentation: Segmentation is dividing the market into smaller groups with distinct needs, characteristics or behaviours who might require separate products or marketing mixes Requirements for Effective Segmentation: * Accessible * Substantial * Differentiable * Actionable Types of Market Segmentation: * Segmenting Consumer Markets: * Geographic: Divides the market into different geographical units such as nations, regions, states, countries or cities * Demographic: Divides the market into groups based on variables such...
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