Jim's Notes

 Marketing  222  Key Points

• Two Essential Elements of a Marketing Strategy                  

                  Target Market          Marketing Mix

• Target Market

              The group that marketing creates a specific 

              marketing mix for to satisfy their product needs - 

              The group that marketing focuses all activities on

• Four components of the Marketing Mix

Product          Price         Promotion       Distribution 

• Organization SWOT analysis

               Internal - Strengths and Weaknesses

               External - Opportunities and Threats

• The six Marketing Environmental Forces

               Competition     Economic     Political     Technological

               Legal/Regulatory     Sociocultural

• Organization Mission Statement

               Long term view of organization goals/objectives

               State in terms of:

               The target market - the product - product uniqueness

• Marketing Research

               Collecting, analyzing and reporting information to help 

               make marketing decisions

               Used to identify and help solve marketing problems,

               and identify opportunities and threats

                

• Marketing Research Process

             1. Identify the problem    2. Design the project

             3. Collect data     4. Interpret data    5. Report findings

• Marketing Research Data

             Primary Data - gathered specifically for a project

                                        ( surveys, ...) 

             Secondary Data - already exists (internet, publications, 

                                           ... ) in some form

• What are markets ?

             Individuals or organizations with: need - ability to buy             
             - willingness to buy - authority to buy

• Two major types of markets 

             Consumer          Organizational

• Market Segmentation

             Process of dividing the total market into groups

             {segments) with similar characteristics & product needs

• Market Segment

            Group with one or more similar characteristics

            with similar product needs

• Consumer Market Segmentation Variables

           Demographic - age,gender,income,education, ...
           Geographic - region,urban,suburbanrural, ...
           Psychographic - lifestyle, motives, ...
           Behavioristic - brand loyalty, benefit expectations, ...

• Organizational Market Segmentation Variables

           Geographic

           Type of Organization

           Customer Size

           Product Use 

• Targeting Strategies 

           Total market (undifferentiated)

           One segment of the market (concentrated)

           Multiple segments of the market (differentiated)

• Target Market Selection ( segmentation approach)

           1. Identify the segments of the overall market for your

               product using segmentation variables and specific needs

                         consumer - age, income, lifestyle,...

                         organizational - type of business, size, ...

           2. Chose the segment(s) that best fit with organization

               goals and objectives

                   This is /are the target market(s)

• Product

           Can be a:      Good - Service - Idea

           Two major classes:     Consumer - Business 

       Consumer Product Classifications               

           Convenience

           Shopping

           Specialty                        

           Unsought


       Product Life Cycle                          

           4 Stages:     introduction - growth - maturity - decline


           sales/profits/ marketing mix differ in each stage


       Product Brand

          name, term, symbol, design intended to clearly identify

          and differentiate a seller's product from a competitors

          brands developed by consistent advertising  and PR

          Three levels of loyalty:

                     Brand recognition - weakest

                     Brand preference - will take a substitute

                     Brand insistence - strongest, no substitutes


       Product Differentiation

           Create and design products so customers perceive them

           as different ( and better) than competitors

           Elements to consider:

                                Quality

                                Design/Features

                                Support Services


      Product Positioning

           Creating and maintaining a favorable perception in the

           consumers mind about a product compared to the 

           competition

           Strong positions are created and maintained through        

           consistent advertising and PR ( and WOM ?)


           The primary elements of positioning a product are:
                  price      low-middle or high
                  quality   well designed,well produced, features 
                  service   product customized or personalized 
                  distribution   channel used is key element
                  packaging    good packaging makes a strong statement                

           Use positioning as part of competitive strategy


           Identify your strongest strength and use it to position
           your product
         

• Price

        Price Competition - match or beat competitors

                                          - should be low cost seller

           Nonprice Competition - emphasize product features, 

                                                   quality, service, ...

                                                 - promote brand and positioning

           Classic Demand Curve - when price falls, demand goes up

                                                    and the reverse


           Pricing Objectives
                        - survival
                        - profit
                        - return on investment
                        - market share
                        - cash flow
                        - status quo
                        - product quality


           Pricing Strategies
                        - differential
                        - new product
                        - product line
                        - psychological
                        - promotional

•    Promotion

        Four Elements of the Promotion Mix

                        - advertising

                        - public relations

                        - personal selling

                        - sales promotion

              Advertising
                        - a paid form of communication
                        - conveys information about product/business
                        - directed at a specific group ( target audience}
                        - uses mass media
                        - purpose is to to inform, persuade,motivate


                  Target Audience - the group the ad campaign wants
                                                  to reach (part of or the total 
                                                  target market)


                  Basic objective of Advertising:
                      Help sell the product/organization to the customer


                      Some specific reasons to advertise
                           - introduce new product 
                           - promote new  product to a target audience
                           - build new business image
                           - make public aware of new company/product
                           - show differences with competitive products
             
              Public Relations   
                       - communicate favorable image of organization,
                         product, person, idea, ... and promote goodwill
                       - tools
                             website
                             brochures
                             newsletters
                             speeches
                             event sponsorship
                             charitable works
                             corporate identity materials
                             publicity
                             WOM                      
                             Social Media

•   Distribution

               Marketing Distribution Channel

                       - directs flow of products from producer to

                         customer

              Consumer Marketing Channels Strategies

                        producer - consumer

                        producer - retailer - consumer

                        producer - wholesaler - retailer - consumer

              Major role of Marketing Channel

                       make products available for consumer at:

                            right time - place - quantity

              Consumer Product Market  Distribution Coverage

                       intensive - all available outlets

                                         (convenience products)

                       selective - few outlets

                                         ( shopping products )

                       exclusive - limited outlets

                                         ( specialty products )


+++++++++++++++++++++++++++++++++++++++++++++

• Some ways to deal with the Competition

            - price

            - service

            - quality

            - distribution

            - promotion

            - positioning

       

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• So - What is Marketing ?

         identify - satisfy - keep customers and satisfy the goals

            and objectives of the organization

            management process responsible for identifying, 

            anticipating and satisfying the customer needs profitably

           management process that moves goods and services from

           concept to the customer. It consists of selecting a

           target market and developing a marketing mix ( product -

           price - promotion - distribution) to satisfy the customer         


           marketing consists of the strategy and tactics used to 
           identify, create and maintain satisfying relationships with
           customers that results in value for the customer and the 
           organization