...MARKETING THEORIES – THE MARKETING MIX – FROM 4 P’S TO 7 P’S Visit our Marketing Theories Page to see more of our marketing buzzword busting blogs. Marketing is a continually evolving discipline and as such can be one that companies find themselves left very much behind the competition if they stand still for too long. One example of this evolution has been the fundamental changes to the basic Marketing mix. Where once there were 4 P’s to explain the mix, nowadays it is more commonly accepted that a more developed 7 P’s adds a much needed additional layer of depth to the Marketing Mix with some theorists going even going further. Before we get carried away though what is the Marketing Mix and what is the original 4 P’s principle? THE MARKETING MIX Simply put the Marketing Mix is a tool used by businesses and Marketers to help determine a product or brands offering. The 4 P’s have been associated with the Marketing Mix since their creation by E. Jerome McCarthy in 1960 (You can see why there may have been some need to update the theory). The Marketing Mix 4 P’s: * Product - The Product should fit the task consumers want it for, it should work and it should be what the consumers are expecting to get. * Place – The product should be available from where your target consumer finds it easiest to shop. This may be High Street, Mail Order or the more current option via e-commerce or an online shop. * Price – The Product should always be seen as representing...
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...Theories of Marketing Week 1 – lecture 1 History of marketing 1. Production : supplying markets 2. Selling: convince people that what the organization happen to have is what they need. 3. marketing : let’s ask people what they want and then produce it. What can I make that will serve my customers better? It needs to be something relevant, innovative or unique MKG definition it’s all about sales and market share : it doesn’t say anything about relationship NOW : how can I create value so I will be able to sale more, it’s the only way to survive. To stay alive you need to have a lot of capabilities and tools to survive What is marketing? Marketing includes more than just needs, it’s concerned with providing the right product to the right person at the right moment. That way it creates value. This way it also incorporates innovation. Functions & processes/activities are the things we do to deliver customer value. These can be strategic and tactical. History of marketing thought - philosophy * Production orientation, huge production lines trying to find bigger markets. Its all about efficient distribution. Demand is huge, supply was very small, they didn’t care about colour for example. Marketing was all about getting your product efficiently to the consumer. Marketing is a very contextual science, how do we deal with circumstances, and how do we become successful in these circumstances. * Selling orientation, extra activities...
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...Product Lifecycle: Business analysis that attempts to identify a set of common stages in the life of commercial products Portfolio Analysis: Process of comparing the contents of the portfolio to see which products or services are the most promising and deserve further investment, and which should be discontinued BCG: * Model for managing product lines. * It displays the various products on a graph based on market growth rate vs. market share relative to its main competitor. * Resources are then allocated according to where they are situated in the grid. * Cash cow: A product that has a large market share in a mature, slow growing industry. Cash cows require little investment and generate cash that can be used to invest in other business units * Star: A product that has a large market share in a fast growing industry. Stars might generate cash, but because the market is growing rapidly they require investment to maintain their lead. If successful, a star will become a cash cow when its industry matures * Question mark: A product that has a small market share in a high growth market. These business units require resources to grow market share, but they will succeed and become stars is unknown * Dog: A product that has a small market share in a mature industry. A dog might not require substantial cash, but it ties up capital that could be better used elsewhere. Unless a dog has a strategic purpose, it should be liquidated if there...
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...Marketing is a way of thinking and doing things. It’s a philosophy to say the least. It’s about progress keeping in mind how you deal with your customers, your employees, society and the environment. To truly understand the depth and reach of marketing we have to look beyond the conventional activities of Product, place, price and promotion. “There is nothing easier than lowering the price. I don’t pay a manager to lower prices for my products – A computer can do that for me. I pay a manager to successfully inflate the value and price of my product” Before any business considers a strategic price decrease, it should study the demand curve for its markets. Demand curves show volumes at different price points and so capture the inflection points where segments behave differently. Customers will not buy from you if they don’t trust you, and they definitely won’t trust you if they feel that your price is dishonest. Lowering the price of your product suggests your product was not really worth what you were asking for to begin with. They will believe you are padding your price. Every other salesperson says the same thing. Even if it did make you stand out, it would be for the wrong reason — the very wrong reason of offering a watered-down version of what people really want. When we lower the price of our product, we are limiting our sales strategy to a dollar amount. Price becomes a dominant part of the conversation ONLY because we have allowed it. Setting our prices too high...
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...competition from external sources. The remainder are internal threats. Ansoff Matrix : The Ansoff Growth matrix is another marketing planning tool that helps a business determine its product and market growth strategy. Ansoff’s product/market growth matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets. The output from the Ansoff product/market matrix is a series of suggested growth strategies which set the direction for the business strategy. These are described below Market penetration Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets. Market penetration seeks to achieve four main objectives: * Maintain or increase the market share of current products – this can be achieved by a combination of competitive pricing strategies, advertising, sales promotion and perhaps more resources dedicated to personal selling * Secure dominance of growth markets * Restructure a mature market by driving out competitors; this would require a much more aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for competitors * Increase usage by existing customers – for example by introducing loyalty schemes A market penetration marketing strategy is very much about “business as usual”. The business is focusing on markets and products it knows well....
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...THEORIES IN MARKETING STRATEGY[1] In general, there are three aspects to the strategy of firms, regardless of the level of the strategy: content, formulation process, and implementation. Strategy content (what the strategy is) refers to the specific relationships, offerings, timing, and pattern of resource deployment planned by a business in its quest for competitive advantage (e.g., generic strategy of cost leadership versus differentiation; push versus pull strategy). Strategy formulation process (how the strategy is arrived at) refers to the activities that a business engages in for determining the strategy content (e.g., market opportunity analysis, competitor analysis, decision-making styles). Strategy implementation (how the strategy is carried out) refers to the actions initiated within the organization and in its relationships with external constituencies to realize the strategy (e.g., organization structure, coordination mechanisms, control systems). The body of marketing literature termed as strategic market planning primarily focuses on the content of strategy and process of strategy formulation at the business unit level and the corporate level, and the role of marketing in these spheres of organizational activity. Firms initiate strategic actions to achieve competitive advantage. However, these actions are shaped, and their outcomes influenced, by the external environment and internal environment of the firms. Institutional theory suggests that the actions...
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...Marketing may be described as a process where goods and services transcend to the customer from concept. This usually involves the elements of marketing being well coordinated. This starts with the development of a product that has been identified and selected, price determination, channel selection and implementation of the promotional strategy. New Apple products, for instance, are developed to include advanced application and systems, set at different price depending on how much capability the customer desires and sold at locations where other Apple products are sold. It is paramount that marketers identify the needs of the customer and the challenges that arise without such needs and sell not just a product, but the solution to their dilemmas. In a globalized and highly competitive world, successful marketing gyrates around a quality customer experience. A connection must occur between the customer and product. This where they are able to comprehend the solutions the product possesses. Marketers are able to yield this connection by understanding the needs of the customer and being able to covey them successfully in order to earn the trust of the customer. The Apple Watch developers seem to have understood this by creating a gadget that makes iPhone customers less socially awkward while giving them the motivation to keep moving through the fitness apps (Chowdhry, 2015). However a service encounter or any interaction between a consumer and sales attendant may not be needed...
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...originally ranked each of the three dimensions (level of differentiation, relative product cost, and scope of target market) as either low, medium, or high, and juxtaposed them in a three dimensional matrix. That is, the category scheme was displayed as a 3 by 3 by 3 cube. But most of the 27 combinations were not viable. In his 1980 classic Competitive Strategy: Techniques for Analysing Industries and Competitors, Porter simplifies the scheme by reducing it down to the three best strategies. They are cost leadership, differentiation, and market segmentation (or focus). Market segmentation is narrow in scope while both cost leadership and differentiation are relatively broad in market scope. Empirical research on the profit impact of marketing strategy indicated that firms with a high market share were often quite profitable, but so were many firms with low market share. The least profitable firms were those with moderate market share. This was sometimes referred to as the hole in the middle problem. Porter’s explanation of this is that firms with high market share were successful because they pursued a cost leadership strategy and...
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...Page 1 of 21 SECTION A: Problem in Context and Statement of the Problem The effect of In-store advertising and strategic shelf space within the South African FMCG market, and the impact it has on consumer buyer behaviour. Impulse buys are a form of consumer buyer behaviour but could it be that these buys are purchases that are fueled by emotion and desire, for instant gratification and not just a spontaneous urge. Research shows (Shaw, 2014) us that in fact we are drawn out of a subconscious state of being into a conscious one when that “impulse” to buy something not on our list occurs. “Consumer behaviour is the study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society” (Kuester, 2012). This proposal is going to look at different influences and how these influences affect consumer buyer behaviour. Objectives: This proposal is going to establish to what extent the effects of in store advertising and shelf space/product locations have on consumers buying behaviour 1. To examine how in store advertising effects the consumer buying behavior. 2. To determine the effect of shelf space / product locations on consumer buyer behaviour. Further detailing on the above objectives: 1. To examine how in store advertising effects a shoppers buying behaviour This objective is to prove the relationship...
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...What is the relationship between marketing and the fundamental theory of exchange? To understand the relationship between marketing and the fundamental theory of exchange, one must define the two separately to know the benefit of them together. The Merriam-Webster dictionary defines marketing “as the process or technique of promoting, selling, and distributing a product or service.” (1) With any business, one must have this skill to be able to promote the goods or service that they wish to sell to the public. In relation to the fundamental theory of exchange an article written by a grad student from Illinois State University wrote about the fundamental theorem of exchange, "One of the most important principles of economics is the Fundamental Theorem of Exchange: ... trade is mutually beneficial. Voluntary exchange increases [net benefits] for all parties involved." (2) For one to have a truly successful relationship between these two they need to have an understanding on what they are selling. The worst thing a consumer wants when they go to a store or shop is for the salesman helping them to not know anything about what they are talking about. With being in retail for the majority of my life I have come to know that just a small portion of consumers know what they want when they walk into a store. It is the job of the salesman to use his, “promoting, selling, and distributing” skills to be able to secure a successful transaction of exchange between the consumer and the...
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...The Analysis of Marketing Strategies of Gold Stone Based on the SWOT Theory College of Foreign Language Studies, Guangxi Normal University 200910501086 Luo Jifang Supervisor: Gong Min [Abstract] In recent years, with the fast evolution of the electronic industry and the increase of the consumer demand, a large number of electronic enterprises get the opportunities to expand. Among them, the growing of Samsung Electronics is the most surprising. Samsung Electronics is the biggest electronic company in the local Korea. Moreover, it is the only Korean brand appearing in the world top 100 brands. The 4Ps is the most classic marketing mix. And the 4Ps theory is often applied in various kinds of business researches to reveal the effectiveness and efficiency of marketing strategies. Based on this theory, from the aspects of product strategy, price strategy, place strategy and promotion strategy, the author attempts to analyze the marketing strategies of Samsung Electronics. The cutting-edge and fashionable design and excellent quality promise Samsung Electronics a full bloom. To take up the high-end market share, Samsung Electronics pays much attention to brand building. In order to change the cheap and imitator image in the eyes of consumers, Samsung modified its marketing strategies on a large scale. Due to the successful marketing strategies, Samsung Electronics grabbed another chance to prosper. [Key words] Samsung Electronics; 4Ps theory; Marketing strategies ...
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...Executive summary It is the intention of this report to critically discuss the different factors that influences the consumer’s behaviour. It aims to provide a better understanding on internal and external factors that influences consumers decisions. Internal factors like perception, learning & memory, motivation, personality & emotion and attitudes or it may be external factors such as society, demographics, group influence & social stratification, etc. Different companies choses different ways to influence consumers and design their advertisements so as to attract more and more consumers. Secondly, this report will explain and discuss about the marketing strategies adopted by two famous car manufacturers Mercedes and BMW and how they were able to influence consumers using different internal and external factors. After comparing both the companies and their strategies, a conclusion would be derived that which was more successful. 1. Introduction: 2.1 Purpose: The purpose of this report is to analyse the internal and external factors that influences consumer buying behaviour and how Mercedes benz and BMW uses these in their advertisements. 2.2 Background: Mercedes Benz and BMW(Bayerische Motoren Werke) are the two big players and most famous car manufacturing companies and are the biggest competitors of each other. Both the organisations manufacture high end luxury and sports cars. BMW and Mercedes Benz both are German luxury automobile manufacturing...
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...Marketing Communication Theory Shayan Ahmed Mir (MIRSB1501) Marketing Communication BUS215 Dinesh Nanayakkara Words Count: 810 According to the most common definition, communication “it is the process of transferring thoughts, ideas and feelings from one person to another in commonly understandable ways” (Cheryl et al). (Mueller) Communication originates in the mind of sender as mental images who wish to convey that message to the receiver. Mental images can be in any form including ideas, feelings, expressions pictures or emotions. To transfer the mental image across, the source first needs transpose the images into a form that is commonly understood by both the source and receiver which is called as encoding. Once a message has been encoded, the next level in the communication process is choosing the right medium to transmit the message to a receiver. Medium is the means by which the message is sent. Communication medium can be commonly categorized into verbal (via telephone call, face to face meetings), written (letters or newspapers), and visual forms (electronic media, diagrams). Other transmission medium that influence the message sent may include touch, gestures, clothing, and physical distances between sender and receiver, lighting and surrounding of the meeting etc. When making a marketing strategy choosing the right medium of communication is critical. For example if the masses are targeted like in the case of fast moving consumer goods, above the line...
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...Equity-Theorie = Theorie zum Gleichheitsprinzip der Gerechtigkeit ist eine Prozesstheorie von John Stacey Adams in der Sozialpsychologie versucht zu erklären, wie der Entstehungsprozess der Motivation verläuft Definition Motivation Motivation betrifft die Begründung des Verhaltens. Sie bestimmt die Intensität, Richtung, und Form des Handelns. Motivation entsteht immer dann, wenn eine Person in einer bestimmten Situation Anreize wahrnimmt, wodurch Motive aktiviert werden und zu einem bestimmten Verhalten führen. Motivation wird somit als Wechselwirkung zwischen motivierter Person und motivierender Situation verstanden. Für die BWL ist von Interesse festzustellen, welche Motive bei den Mitarbeitern zu bestimmten Arbeitsleistungen führen und wie diese Motive beeinflusst werden können. Das Motivationsphänomen hilft also bei Beantwortung der Frage, warum Menschen ein bestimmtes Verhalten in konkreten Situationen aufweisen. Ausgangspunkt sind dabei die Motive. Man unterscheidet zwischen - extrinsischen Motiven (z.B. Bezahlung) - intrinsischen Motiven (z.B. Erfolgswille) Definition Motiv Mangel, der den Organismus veranlasst, nach Mitteln und Wegen zu suchen, die geeignet erscheinen, diesen Zustand zu beseitigen. Man unterscheidet primäre (physiologische) Motive, wie z.B. Hunger, Durst, Furcht und Sexualität, sowie sekundäre (soziale) Motive, wie z.B. die Bedürfnisse nach Anerkennung, Macht oder Selbstverwirklichung. Es gibt 2 Motivationstheorien:...
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...monash.edu.my/) Monash University is the first foreign university to be established in Malaysia. It is established in 1998 and located in Bandar Sunway. Competitors: * Taylor's University (http://www.taylors.edu.my/en/university/) * The University of Nottingham (http://www.nottingham.edu.my/index.aspx) * Help University (http://www.help.edu.my/) Suppliers: * Sunway Property (Property) (http://www.sunwayproperty.com/pd/) * Sunway Construction Sdn Bhd ( Construction works) (http://www.sunway.com.my/suncon/) * Atlas Vending (M) Sdn Bhd (suplply vending machine) (http://www.atlas-vending.com/) Intermediaries: * GTI Media Sdn Bhd (Marketing services agency, established a brand name doctorjob.com.my which help to advertise Monash Univeristy Malaysia) (http://gtimedia.asia/) * Sureworks Sdn Bhd (Marketing services agency, organise educational fair to help promote Monash University Malaysia) (http://www.sureworks.info/) * IDP Malaysia (Introduce Monash University Malaysia to students as an option) (http://www.idp.com/malaysia/studyabroad) Customer: * People which majority in the category of young adult and adult who seek for tertiary education * International and local students * Undergraduate and postgraduate students Public: * Ministry of Higher Education (government publics) (http://jpt.mohe.gov.my/eng/) * Jeffrey Cheah Foundation (financial publics) (http://jeffreycheahfoundation.org.my/) * Malaysian Association of Private...
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