Com 204

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Com 204 by Mind Map: Com 204

1. 6Consumer behaviour

1.1. Cultural

1.1.1. Values, customs, perceptions, wants, and behaviours learned from society

1.2. Social

1.2.1. Reference groups

1.2.2. Influence depends on confidence about your choice in the product commitment to the group how knowledgable and experienced we are with the product or service how credible, attractive, and powerful is the reference group? is the product conspicuous or not? necessity or a luxury

1.2.3. Family Roles, activities that others expect from us Status, what esteem we are granted in society

1.3. Personal

1.3.1. age and lifecycle stage

1.3.2. Lifestyle Psychographics, meausres lifestyles and develops lifestyle classifications VALS - how people spend time and money

1.3.3. Occupation

1.3.4. Economic situation

1.3.5. Personality and self concept self concept real vs ideal self extended self altered self one or multiple selves

1.4. Psychological

1.4.1. Maslow Self actualization Esteem Emotional Safety Physiological

1.4.2. Perception Process of selecting, organizing, and interpreting information to form a meaningful picture of the world. Input data from the five senses Barriers Selective attention Selective distortion Selective retention

1.4.3. Influence Learning changes in behaviour that arise from experience Subliminal perception below the level of awareness, research suggests it has little or no effect Attitudes relatively consistent evaluations, feelings, and tendencies toward objects or ideas Belief descriptive thought about object or idea

1.4.4. Consumer decision process needs recognition gap between actual state and ideal state information search internal search External search evaluation of alternatives low effort decision purchase decision intention to purchase vs actual purchase postpurchase behaviour cognitive dissonance, regret, satisfaction or dissatisfaction, compalints

1.4.5. Business buyer behaviour Differences fewer larger buyers, geographic concentration of buyers, complex decisions, more people, more professional and formal Influences external/environment internal/org factors individual factors types of buy buying process problem (need) recognition general need description product specification supplier search proposal solicitation supplier selection order routine specification performance review

2. 7) Segmentation

2.1. Segmentation

2.2. Targeting

2.3. Positioning

3. 8) Product

3.1. experience economy

3.1.1. technology

3.1.2. rising affluence

3.1.3. individuals value experience

3.1.4. elements guest is interacting and engaged the experience is memorable, personal and revealed over time captures the hearts and dollars of the guest

3.1.5. staging embedding goods in an experiential brand sensorializing goods making goods scarce forming goods clubs goods events

3.2. Levels of goods and services

3.2.1. core benefit

3.2.2. actual product

3.2.3. augmented product

3.3. new product development strategy

3.3.1. 1. idea generation internal sources, licensing, customers, lead suers, competitors, distributors and suppliers

3.3.2. 2. screening product uniqueness fit with company resources and capabilities fit with current offerings fit with company resources availability of raw materials

3.3.3. 3. concept development product concept interviews, surveys, focus groups customer use and provide feedback

3.3.4. 4. marketing strategy development long term marketing objectives Target market and position Marketing mix elements

3.3.5. 5. business analysis projected costs and sales depends on market potential, growth rate, and estimated market share

3.3.6. 6. product development and testing prototype marketing, r&d, and engineering work together Collect consumer feedback to alternative designs

3.3.7. 7. test marketing product and marketing program launched in select cities or areas premarket tests standard test markets controlled test markets simulated test markets

3.3.8. 8. commercialization Rolling out Timing location price promotion evaluation

4. Price

4.1. price floor

4.1.1. the lowest price we would want to charge our customers

4.2. price ceiling

4.2.1. the highest price we would want to charge our custoemrs

4.3. Value based pricing

4.3.1. good value pricing just the right combo of quality and service with price

4.3.2. value added pricing add features and values to differentiate and thus charge higher price BMW, luxury, leather seats, high quality, high performance.

4.4. competition based pricing

4.4.1. strategies

4.4.2. cost and prices

4.4.3. reactions to pricing moves

4.4.4. market offerings

4.4.5. going rate and sealed bid pricing

5. Pricing factors

5.1. internal factors

5.1.1. marketing objectives

5.1.2. marketing mix strategy

5.1.3. costs

5.1.4. organizational considerations

5.2. external factors

5.2.1. the market and demand pure competition vs monopoly vs oligopoly

5.2.2. the economy

5.2.3. other external factors

5.3. competition

5.4. demand

5.4.1. prestige product demand

5.4.2. price elasticity of demand

5.5. New product pricing strategies

5.5.1. market skimming pricing skim all possible revenue and eventually lower price over time. Enters with a high price, goes down over time Small portion of market willing to pay for novelty at first Don't want competitors to undercut you immediately

5.5.2. market penetration pricing Lower pricing (New product special pricing). Or lower long term price. Harder to raise price over time building up market share, lots of sales quickly. consumers are price sensitive, will not respond well to price increases. deters competition from entering market

5.6. product mix pricing

5.6.1. product line pricing suits, premium line, value line

5.6.2. optional product pricing a/c, leather, sunroof

5.6.3. captive product pricing razors, replacement blades, brita filters, printer ink

5.6.4. by-product pricing corn - syrup, feed, etc agriculture byproducts

5.6.5. bundling products sasktel, tv, phone, internet

5.7. price adjustment strategies

5.7.1. discount and allowance allowance - retailer showcasing your product

5.7.2. psychological how do consumers perceive stuff. leftmost digit, $19.99. prestige, paying more so it must be better. reference products price between similar items on the shelf MSRP: winners

5.7.3. promo pricing discount, BOGO, below cost

5.7.4. geographic pricing different prices for different regions

5.7.5. dynamic prices change often gas airlines travel

5.7.6. international pricing overseas vs at home

5.8. Price changes

5.8.1. cuts

5.8.2. increases

6. Communicating with target audience

6.1. Mar 23

7. 1) Marketing - The process by which companies (and organizations) create value for customers and build strong customer relationships in order to capture value from customers in return.

7.1. Process

7.1.1. 1. Understand customers (needs and wants), company, and environment Needs: Feelings of being deprived, Takes on a number of forms; hunger, wanting to be part of the "in crowd", and individual (ex: desire to succeed as an athlete. Wants: Shaped by culture, described in terms of objects that satisfy wants

7.1.2. 2. Develop marketing strategy

7.1.3. 3. Create value

7.1.4. 4. Build relationships

7.1.5. 5. Capture value

7.2. Exchange

7.2.1. Goods: pots, houses (tangible)

7.2.2. services: Transportation, life insurance (intangible)

7.2.3. Ideas: Religious beliefs, innovative processes

7.2.4. People: Movie stars, politicians

7.2.5. Organizations: Charities, hospitals

7.2.6. Experiences: Ikea, university education

7.3. Value

7.3.1. Customer Fulfills needs/wants Evaluation of benefits minus cost tangible (product) intangible (branding)

7.3.2. Marketer Sales and profits donations, votes long term customer relationships and equity

7.3.3. Measuring value Share of customer percentage of customer's purchases in product category customer lifetime value customer loyalty customer retention customer equity combined customer lifetime value forward looking measure of success

7.4. Marketing management orientations

7.4.1. Production concept focus on production and distribution attributes like low cost (economies of scale - walmart) in the industrial revolution and still exists today narrow limiting orientation

7.4.2. Product concept Focus on product attributes (quality, performance, innovation) and continuous improvement focus on product rather than solution or service also a narrow and limiting orientation

7.4.3. Selling concept Focus on convincing consumers to purchase Often people don't seek them out (encyclopedias) Historically perceived as more aggressive orientation

7.4.4. Marketing concept What it is: deliver satisfaction (or delight) better than anyone else Focus on target markets (under-served) wants and needs customer driven orientation Three steps to achieve marketing concept (market orientation) intelligence generation: Do research to understand customers and to understand the competition intelligence dissemination: ensure everyone in the organization understands the customer and the competition Responsiveness: Ensure what you do reflects what you know about customers and competition

7.4.5. Social marketing concept An extension of the marketing concept Philosophy that is also focused on the overall wellbeing of society considers the long term impact of marketing on society and the broader social environment Problem how to measure positive social outcomes and efforts? Most balance sheets and income statements don't. Which organizations will survive in the long run?

7.5. Customer relationships

7.5.1. Old view: Data management

7.5.2. New view: Economic, social, and experiential relationships

7.5.3. What brings about relationships between marketers and customers? When customers are satisfied, meeting or exceeding expectations When customers have been delighted: A profoundly positive emotional state generally resulting from having ones expectations exceeded to a surprising degree

7.5.4. How do marketers form relationships? Loyalty programs (economic benefits, think airmiles) Club marketing programs (Social benefits) Structural ties (Functional benefits)

8. 2) Marketing process and strategy

8.1. Organization strategic planning

8.1.1. Mission statement Includes: Core values and purposes, visionary goals Must be: Realistic, specific, distinctive, and motivating

8.1.2. Markets/products and services Current markets current product: market penetration; getting current customers to buy more, 2 for 1 deals. New product: Product development; New product to current market, the newer, cooler swiffer New markets Current product: Market development; coca cola bringing coke to serbia, which has no soft drinks. FINDING NEW BUYERS for your existing product. New product: Diversification; creating a new product to enter a market that the company is not currently active in.

8.1.3. Growth (deciding how to grow) SBU (Strategic business unit - or brand, product, portfolio) to invest in? Overall cost leadership Differentiation focus operational experience product leadership customer intimacy Deciding the way which it will grow each product or brand Which countries/markets are viable for expansion? Boston consulting group matrix (BCGM) Stars, cash cows, dogs, ???

8.2. Marketing strategic planning

8.2.1. Key: capitalize on strengths exploit opportunities avoid areas of weakness minimize threats

8.2.2. Marketing strategy: 1. Analyze external opportunities and threats as well as internal strengths and weaknesses (SWOT) 2. Define marketing objectives Objectives: 3. Segment market and determine target market and positioning Segmentation Target market Market position 4. Design marketing mix Product, price, promotion, place 5. Implement and evaluate Putting the plan into action typically the marketing department marketing control to measure and evaluate results for feedback and future planning

9. 3) Ethics and CSR

9.1. Ethics (moral principles and values that guide our actions and decisions)

9.1.1. Evaluating a dilema What are the consequences? Consider the outcomes of the decision and who will be affected. The goal is to maximize society's well being What are our duties and obligations to society? What is known as right and wrong? depends on culture and background The tv test: Can i justify my decision on the 6 o'clock news?

9.2. Marketing ethics (the ethical problems specific to a marketing context)

9.2.1. organizational planning mission statement ethical climate code of ethics

9.2.2. marketing strategic planning objectives? target market?

9.2.3. marketing mix plan advertising product pricing distribution

9.2.4. Implementation and evaluation impact on stakeholders? ethical lapse?

9.3. Social concerns with marketing

9.3.1. Planned obsolescence how long before this new product is obsolete? iphones

9.3.2. deceptive advertising

9.3.3. invasions of privacy and personal space new antispam legislation july 1, 2014 cannot send messages to recipient without their consent (email, text, cell phone, social networking) cannot install pc programs without consent cannot collect emails without permission

9.3.4. weblining or redlining "firing" unprofitable customers discrimination by segmentation/targeting

9.3.5. unsafe products

9.3.6. unhealthy products food sodium levels too high trans fats low nutritional content

9.3.7. low/high prices low prices perpetuate overconsumption and excessive materialism

9.3.8. false wants and too much materialism communicates that consumption is the route to happiness promotes forming relationships with goods instead of other people sustainability concerns

9.3.9. concerns with the natural environment pollution resource depletion

9.3.10. cultural pollution advertising clutter too many products

9.3.11. business (and marketing) has too much power whose interests are protected? Whose agenda matters most?

9.4. CSR - corporate social responsibility

9.4.1. integrating social, environmental, and economic concerns into their values, culture, decision making, strategy and operations in a transparent and accountable manner and thereby establish better practices within the firm, create wealth, and improve society.

9.4.2. instrumental defense - academic research suggests that csr performance is positively correlated with corporate financial performance

9.4.3. normative defense: stakeholders are inherently valuable, therefore CSR is the right thing to do

9.5. business sustainability

9.5.1. managing a triple bottom line- by which firms manage their financial, social, and environmental risks, obligations, and opportunities

10. 4) Marketing environment - How does the external environment impact on marketing? The M.E. affects marketers success and marketings ability to meet customers wants/needs

10.1. Factors outside of the marketers control

10.1.1. macroenvironment demographic countable characteristics of human populations general cohorts income education gender economic inflation, unemployment natural resources, depletion pollution technological rapidly changes markets and opportunities CES in vegas every year political quaity of environment protected? taxes bylaws regulations COMPETITION ACT cultural shared meanings, beliefs, morals, values, and customs of a group of people be aware of cultural differences to your target markets, and what is appropriate.

10.1.2. microenvironment (those closest to the company) suppliers provide tangible resources and intangible services partners in delivering value intermediaries critical in getting product to end customer includes retailers, wholesalers, distributors, brokers, agencies, and others customers competitors Three levels of competition Benefits of competition Monitoring competitors marketing strategies publics stakeholders company (some parts are within marketers control

10.2. Stages of the business cycle

10.2.1. recession inflation, unemployment fall in GDP over 2 consecutive quarters

10.2.2. depression prolonged and severe recession

10.2.3. recovery economic upturn

10.2.4. prosperity positive growth in gdp, inflation on target, low unemployment

11. 5) Market research

11.1. What is it?

11.1.1. systematic design, collection, analysis, and reporting of data relevant to specific marketing situation, conducted internally or externally

11.2. What does researching tell us?

11.2.1. Neuromarketing, people have a hard time articulating emotions, instead, research on physical responses to advertising (skin heart rate, pupils), measured by eegs or fMRI, etc

11.2.2. consumers conduct research online to 85% seek out pricing info 65% seek out reviews recommendations 62.4% seek out product details

11.2.3. Grocery shopping trends men are primary shoppers 25% of the time, up from 20% in 2006 women plan and prep in 80% of households FEW canadians willing to pay for green products, but most believe companies should be green

11.3. Marketing research process

11.3.1. 1. define problem and research objectives problems versus symptoms what are our research objectives? Gather preliminary information? describe the market or situation? test hypothesis about cause and effect?

11.3.2. 2. develop research plan what info do we need? what approach will we take? what method will we use?

11.3.3. 3. collect and analyze data collection collect secondary data first (already completed data), then determine info needed from primary sources (primary data) qualitative data (open ended) surveys (closed ended) controlled experiment You need to be clear in the questions you ask. Sampling techniques population/universe - census probability sample nonprobability sample

11.3.4. 4. interpret and present findings

11.3.5. Ethical issues in market research privacy time required to complete interrupting people at inconvenient times misuse of research findings disclosure of study purpose