M-Marketing...important, e.g., – Profit vs user privacy – Environment vs increase production –...

Chapters 1-12: Quick Review

M-Marketing

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American Marketing Association (AMA)

Definition of ‘Marketing:

The activity, set of institutions, and processes for creating, capturing, communicating, delivering, and

exchanging offerings that have value for customers, clients, partners, and society at large.

Marketing Definition (CH 1)

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What is Marketing? (CH 1)

Marketing

Helps create value

Is about satisfying

consumer needs

Entails an exchange

Affects many

entities

Performed both by individuals and organizations

Requires 4p’s: Product, Price,

Place, Promotion

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Marketing Requires Product, Price, Place, and Promotion Decisions (CH 1)

PRICEPRODUCT

PLACE PROMOTION

Marketing Mix

B2B, B2C, and C2C (CH 1)

C2C

Consumer B

B2C

Consumer A

B2B

Retailer (Sells PCs &

monitors)

Manufacturer (Makes monitors)

Marketing is performed both by individuals and organizations

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What is a Marketing Strategy?1. Identifies a firm’s target markets2. Identifies a related marketing mix (4 Ps)3. Identifies bases on which to build a

sustainable competitive advantage

Marketing strategy (CH 2)

Advantage over the competition that cannot be easily copied

Marketing Plan (CH 2)

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PlanningPhase

Step 1: Businessmission & objectives

Step 2: Situation analysisSWOT

ImplementationPhase

Step 3: Identify opportunities

Segmentation Targeting Positioning

Step 4: Implement marketing mix

Place PromotionPriceProduct

ControlPhase

Step 5: Evaluate performance

using marketing metrics

Marketingstrategy

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Growth Strategies (CH 2)

(Sales, promotions, ads)

Zipcar universityIphone 5C

(Highest risk)

Netflix

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Social Media Marketing Campaign (CH 3)

Identify strategies and goals

Campaign: Experiment and

engageMonitor & change

Functions of social media marketing: 1. Engage2. Experience3. Listen

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• Firms must decide what is moreimportant, e.g.,– Profit vs user privacy– Environment vs increase production– Deceptive advertising vs real promotion

Marketing Ethics (CH 4)

Research can help find alternative solutions!• Find better ways to analyze data• Create products using less resources

• Nike: https://www.youtube.com/watch?v=D2t6yc1t9KY

Ethical Decision Making (CH 4)

A Framework for Ethical Decision Making

Critical in all situations that involve ethical decision making!!Particularly in high-stress, high-pressure situations!!

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The big picture (CH 5)

Company CompetitionCorporate partners

Segment Targeting Positioning

Product Place Promotion

Price

Customer acquisition Customer retention

CUSTOMERS

PROFIT

Marketing analysis

(understanding your business)

Creating value

Capturingvalue

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Marketing analysis (CH 5)

Company CompetitionCorporate partners

Marketing analysis

(understanding your business)

Immediate environment

Culture, demographics, social trends, tech. advances, economic situation, political/regulatory situation

Macroenvironmental factors

SWOT

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Provides an easily understood snapshot of the typical consumer in a specific target market

Macroenvironmental factors: Demographics (CH 5)

How do these generations differ?

(Millennials)

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Consumer decision process (CH 6)

Step 1: Functional vs Psychological needsStep 2: Internal vs external, benefits vs costsStep 3: Consumer decision rules (cereals example)Step 4: Conversion rate / why not purchase?Step 5: Listen and fix problems if any

You must understand how this process works in your specific industry …

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Factors Influencingthe Consumer Decision Process (CH 6)

• Product• Price• Place• Promotion

Marketing mix

• Motives• Attitudes• Perceptions• Learning• LifestylePsychological

factors

• Family• Reference groups• Culture

Social factors

• Purchase situation• Shopping situation• Temporal state

Situational factors

ConsumerDecisionProcess

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B2B vs B2C (CH 7)

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B2B Markets (CH 7)

Manufacturersand

Service Providers

B2BMarkets

Resellers

Institutions

Government

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B2B buying process (CH 7)

Request for Proposals

B2C

B2B

Step 1: Can be generated internally or externallyStep 2: Used by suppliers to develop proposalsStep 3: Solicit info from many suppliersStep 4: Several vendors are negotiating against each otherStep 5: Purchase + paymentStep 6: Quality/Delivery/Customer service/etc.

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Different B2B buying situations require different levels of effort and the involvement of various parties.

Buying Situations (CH 7)

•Purchasing for thefirst time

•Likely to be quiteinvolved

•The buying centerwill probably use allsix steps in thebuying process

•Purchasing a similar productbut changing specifications

•Current vendors have anadvantage

• Buying additionalunits or productsthat have beenpreviouslypurchased

• Most B2Bpurchases fall intothis category

Chapter 8: Global Marketing

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STP Process (CH 9)

Step 1: Segmentation strategy must be consistent with firm objectivesStep 2: Segmentation methods: geo/demo/psycho/benefits/behavioralStep 3: Segment attractiveness: substantial/reachable/etc.Step 4: Undiff/diff/concentrated/microStep 5: Unique value proposition

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Marketing Research

DATA

Collecting Analyzing Interpreting DecisionMaking

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The Marketing Research Process (CH 10)

Step 1: What are you trying to accomplishStep 2: Type of data/researchStep 3: survey/experiments/scrapeStep 4: Datamining/ML/Deep learningStep 5: Summary + short presentation

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Type of data• Qualitative• Quantitative• Over time• One instance

Step 2: Designing the Research (CH 10)

• The age of your car (Quantitative).• The number of files on your PC (Quantitative).• The softness of a cat (Qualitative).• The color of the sky (Qualitative).• The number of pennies in your pocket (Quantitative).

Type of research

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Secondary Data – A Closer Look at Some Examples (CH 10)

Syndicated Data

Scanner Data

Panel Data

https://www.npd.com/wps/portal/npd/us/home/http://www.iriworldwide.com/http://www.nielsen.com/us/en.html

Scanner data is a type of quantitative data obtained from scanner readings of UPC codes at check-out counters.

Panel data is a type of quantitative data collected from a group of consumers (the panel) over time.

Syndicated data are data available for a feefrom commercial research firms such as Information Resources Inc. (IRI), National Purchase Diary Panel (now NPD Group), and Nielsen.

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Complexity of Products (CH 11)

Actual Product:brand name, packagingquality level, features

CoreCustomer

Value

A BMW is not just a car…• Warranties included• Free car washes at some dealers• Free airport parking in some cities• Free shuttle service to airport• Reputation, image• Financing options

Services:support, warranty,

etc.

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Types of Products (CH 11)

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Product Line Decisions (CH 11)

• How is this changingthe product mix?

• Does it increasebreadth or depth?

• Is this research oradvertising?

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Value of Branding for the Customer and the Marketer (CH 11)

Facilitate Purchasing

Establish Loyalty

Protect from Competition

Reduce Marketing Costs

Brands are Assets

Impact Market Value

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Often overlooked as a marketing tool, packaging helps determine the success of a product.

Packaging (CH 11)

FUNCTIONS: Preserve, protect, inform, promote, etc.

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Why New Products? (CH 12)

WHY DO FIRMS CREATE

NEW PRODUCTS?

Changing Customer

Needs

Market Saturation

New and Different ways of Adding value

Managing Risk

through Diversity

Fashion Cycles

Creating or maintaining a sustainable competitive advantage!!!

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How Firms Develop New Products (Ch 12)

In very general terms, these are the stages of new-product (or service) development:

Step 1: R&D, brainstorming, etc.Step 2: Written description & customers reactions Step 3: Prototype + alpha + betaStep 4: Premarket test + Test marketingStep 5: Convey characteristics + key benefitsStep 6: Measure satisfaction/acceptances/etc.