Intro to marketing Marketing process :

Marketing is a set of processes for creating, communicating and delivering value to

customers and managing customer relationships in ways that benefit the
organisation and its employees, customers, investors, and society as a whole.
Marketing Mix - 4Ps :
Products - specific combinations of goods, services or ideas that a firm offers to
consumers. Services are intangible products
Price - is the amount of money, time, or effort that a customer is willing to
exchange for this product
Place - includes the activities a firm undertakes to make its product available to
potential consumers
Promotion - refers to all the activities that communicate the value of a product
to the customers and persuade them to buy it (advertising)
How marketing satisfies consumer needs :
create value(product), communicate value(promotion), deliver value(place),
capturing value(price)
Requirements for marketing to occur :
1. 2 or more parties with unsatisfied needs
2. A desire and ability on their part to have their needs satisfied
3. A way for the parties to communicate Consumer behaviour
4. Something to exchange Consumer purchase decision process :
Problem solving : topic 2
1. Problem recognition - consumer have to be aware of his needs and wants
Routine - little effort needed (low
2. Information search - external (seek info beyond their personal knowledge ) / internal (using past
involvement products, candy, milk )
experience)
Limited - typically seek some information
(choosing phone or laptop) 3. Evaluation of alternatives - which product best satisfy the consumer’s need by comparing alternatives
Extended - many effort and time needed, 4. Purchase - choosing the best of all to buy
every stage of consumer purchase decision 5. Post evaluation purchase - how satisfied the consumer is after purchase
is used (high involvement products, house, Psychological Influences on Consumer Behaviour :
cars) Attitude - A consumer’s overall evaluation of a product, which involves general feelings of like or dislike
Motivation - The inward drive people have to get what they need or want
Situational & Personal Influences on Consumer Behaviour :
Time - often affect purchasing decisions (time of the day)
Value - reflect a consumer’s belief that a specific behaviour is socially or personally preferable to another
behaviour (telling someone not to buy smtg)
Lifestyle - consumer’s typical way of life as expressed by his activities, interests and opinions
Surroundings - Factors in a consumer’s surroundings, such as crowd size, smell, and store appearance can
affect decision making
Sociocultural Influences on Consumer Behaviour :
Family Influences - For some cultures, family is the primary influence
Reference Groups - Made up of people to whom a consumer compares himself or herself
Opinion Leaders - Individuals who exert an amount of influence on the decisions of others because they
are considered knowledgeable about particular products
Type of products :
Low involvement - consumer do not recognise their desire for this product (daily toiletries & groceries)
High involvement - consumer will engage in extensive info search (house)
Segmentation, Targeting & Positioning
Market segmentation : is the process of dividing a larger market into smaller groups, based on shared characteristics
Segmentation bases :
1. Demographic (age, gender, income, marital status/ family size)
2. Geographic (nations, regions, states, neighbourhoods)
3. Psychographic (psychological traits, motivations, consumers attitudes)
4. Behavioural (loyalty, price sensitivity, occasions, usage rates)
Criteria for effective segmentation : substantial, measurable, differentiable, accessible, actionable
Target Market : involves marketers evaluating each market segment and determine which segment presents the most attractive opportunity to maximise
sales for the organisation.
Targeting strategies :
Undifferentiated targeting - approaches the marketplace as one large segment. All consumers receive the same product offering and marketing mix.
Works for limited no. of products (salt)
Differentiated targeting - occurs when an organisation targets different market segments at the same time, usually with a different marketing mix
strategy for each. Companies settles on one market segment or a few that provide the best opportunity for them, each segment is targeted with
special offers designed to appeal specifically to buyer of that market
Niche marketing - involves targeting a market segment of consumers with more unique needs from the general market.
Market Positioning : company’s efforts to influence the consumer’s perception about its product, services and ideas
Steps to effective successful market positioning :
1. Analyse competitor's position 2. define competitive advantage 3. evaluate consumer feedback
Repositioning :
In this digital age, marketers have to change and adapt their strategies if they want to continue to reach their target markets. In marketing, one constant is
that consumers are always changing. Needs and wants shift over time and consumers' perceptions of market offerings will also shift, especially as new
products and competitors come onto the scene and lifestyles change. In most cases, as consumer segments change, firms will reposition themselves after
considering their own marketing mix and their competitors’ positions.
Repositioning involves re-establishing a product’s position to respond to changes in the marketplace and it usually involves changing one or more
marketing mix elements, often the product or promotion.
Product
-> refers to a good, service or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs.
3 components :
Core - relates to the basic benefit obtained by consumers of the product
Actual - involves the form of the product itself (brand, features, quality, size, colour & packaging)
Augmented - contains services, experiences, warranties and financing that enhance the product value
Products classification : Promotion
Convenience products - items that the consumer purchases frequently, Promotional mix :
conveniently and with a minimum of shopping effort (e.g dasani water, -> is a combination of tools used by marketers to promote their goods,
candy) services and ideas. Usually, more than one element of the promotional mix is
Shopping products - items for which the consumer spends some effort used which is why it is called a mix.
comparing several alternatives on criteria such as price, quality or style Elements :
(e.g adidas shirt, laptop, home appliances) Advertising - Any paid form of non-personal promotional
Specialty products - items that the consumer makes a special effort to communication about goods, services or ideas that is paid for by the
search out and buy (e.g iphone 14 pro, rolex watch, porche car) firm. Important because it helps to keep marketing and brand messages
Unsought products - items that the consumer does not know about or in the minds of consumers.
knows about but does not initially want (e.g prudential hospital plan, life Direct Marketing - Direct communication with consumers to generate a
insurance) response from them (face-to-face selling, direct mail, catalogs,
Product terms : telemarketing)
Product Item - basic description of a product, refers to a single, specific Sales Promotion - a set of non-personal communication tool designed to
product. (kitkat) stimulate quicker and more frequent purchases. Build excitement for the
Product Line - consists of different versions of a product within a product and usually increase short-term sales. Firms often use sales
product category. A product line usually comprises of products that promotion to support the other elements of their promotional mix.
satisfy a set of consumer needs, are used together, sold to the same (coupons)
consumers, distributed through the same outlets and fall within a given Personal Selling - Two-way flow of communication between a sales
price range. (different kitkat flavours, matcha, white chocolate) person and a customer paid for by the firm to influence the customer’s
Product Mix - includes all a company's products and is usually an purchase decision. A highly adaptive and personal way that firms
aggregate of all a company's product lines (kitkate ice cream, chunky, promote their products and services directly to customers. (real estate
kitkat bar) agents, hair stylists)
Product Extension - products that extend and supplement a company's Public Relations - Any unpaid non-personal communication focused on
established product line, e.g. new flavours promoting positive relations between a firm and its stakeholders. Can be
Characteristics of services : used to build a positive image for the company, handle unfavorable
Intangibility : Services have no physical substance and so cannot be stories or events and maintain positive relationships with the media.
touched, stored or possessed like goods Integrated marketing communications (IMC) strategy to coordinate the
Heterogeneity : services can be different every time we experience them different promotional mix elements used so as to provide customers with a
Inseparability : For physical goods, production and consumption can clear and consistent message about a firm's products.
happen entirely separately. But for services, the two must occur Objectives of Advertising :
simultaneously. It is a dynamic activity that occurs in real time between Informative Advertising - Marketers use it to position their product in the
the organisation (service production) and the consumer (consumption). consumer's mind, rather than to persuade them to buy the product.
Perishability : Services cannot be stored indefinitely. As production and Persuasive Advertising - attempts to increase demand for an existing
consumption occur simultaneously, it can be difficult to match supply product. Company focuses its marketing efforts on showcasing the
and demand for service offerings. If nobody buys, the service competitive advantage of its product over others.
opportunity goes to waste Reminder Advertising - seeks to keep the product before the public in an
Product life cycle : effort to reinforce previous promotional activity.
Introduction - product new to market, few or no competitors, sales are Types of Advertising Appeals :
slow, profits are low or negative Rational - uses logical arguments to attempt to make the viewer think
Growth - sales and profit are slowly rising as companies begin to take about the product and its benefits
advantage of economies of scales Emotional - use admiration, fear or pleasure to help the viewer feel
Maturity - earn profits and maintain the firm’s market share for as long as positive toward the product. An advantage of emotional advertising is
possible. Sales level off as the market becomes saturated and that when people feel good after viewing a product, they become more
competition becomes fierce. Profits begin to decline connected to the product and brand.
Decline - competitors drops out of market as product becomes
unprofitable Comparing social media & traditional mass media :
Digital marketing -> Social media is an electronic, two-way
-> includes all forms of online marketing that deliver content immediately to consumers through communication that create customisable experiences
electronics channels (internet, social media) because consumers are able to choose the specific
E-mail marketing - cost-effective method of retaining, nurturing or attracting a new content they wish to interact with or view.
customer base -Traditional Mass Media : Static content, Not easily
Social media marketing - use online social networks and applications changeable (long lead time), One-way communication,
Search engine optimisation (SEO) - practice companies used to make their websites easier to May reach more than intended audience
find by ranking them higher on search results page -Social media marketing : Allows dynamic content,
crawling - “crawlers” which are programs that visit every page of each site online to Customisable and changeable, Two-way
determine what content they hold. The content is stored in the data centres that search communication, Targeted (cost-effective)
engines maintain in various sites around the world. > advantages : Targeted, personal and Interactive/
Indexing - create an index of all content stored online and using the data it has stored and Immediate and timely and can be used to reach
the index it has built, a search engine then returns results each time someone performs an consumers anytime and anywhere/ Social media
online search. platforms are free or inexpensive to use and therefore,
Visible Marketing influences : returns on social media investments are often high
Paid search - online advertising that company pays to be sponsored result of a customer’s > disadvantages : Many companies are still
web search experimenting with how to use social media effectively
Paid stories - ads that appear as a content designed to look like stories and results may be hard to measure/ Social networks
Paid display advertising - everything from banner ads to youtube videos are largely user-controlled, a seemingly harmless social
Sponsorship - firm often sponsor youtube/instagram celebrities who in turn endorse the media campaign can backfire if viewed negatively by
firm’s products the public /A major concern with social media marketing
Invisible marketing influences : is customer privacy/ Transparency and honesty in
Cookies synching - allows cookies to embed in a person’s computer and follow that person as content postings/ Employees who work with social
they move through various websites [Cookies - small data files stores on websites to generate media also need to be trained in how to respond to
user profiles (web browsed, timing of purchase)] social media posts (content & timeliness).
Geotracking - use consumer’s location for more target marketing (nearby deals) Ethical practice on social media :
Bots - software applications that run automated tasks to makes processes more appealing for Take Consumer Privacy Seriously
consumers Be Transparent and Honest in Content Posted
Mobile marketing : Do not Distort or Overstate
-> enables organisations to communicate and engage with their audience through any mobile Do not Over-Promise and Under-Deliver
devices. Uses many web-based media channel (facebook, instagram) to facilitate communication Avoid Controversy for Publicity’s Sake
and connection with target customers and may also use location-based advertising Do not Pass Off Someone Else’s Work as Your Own