User:Chotchki/F2005/Marketing
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This is my notes for the 2005 marketing class at 3:30pm. Fair warning I do not pay the greatest attention here ;). Eventually it will be organized better as I study more for it. Feel free to edit it if you dare ;).
[edit] Monday 29 August 2005
We have one TA, office hours will be reported later via Blackboard. Check Blackboard daily. For powerpoint presentations and sample tests.
Extra Credit worth upto 5% of your grade will be availible.
Assigned seats for the exams. Seating charts will be availible the class before. Come early and bring a USF ID.
Useful websites for the course (it has everything you need without buying the book): http://boone.swlearning.com
- Topics of Discussion:
- What is Marketing?
- Promoting products and services.
- Creating an image of a brand.
- The process of promoting something.
- Estimating a product or service's demand.
- Segmenting a market.
- Distribution of something.
- Creation of a product.
- Setting a price. (causes fights with finances)
- How do different firms view the marketing function?
- What is the Marketing Concept?
- What is Customer Value? ---> Understanding Benefits and Costs
- What is Marketing Management?
- What is Marketing?
Pioneering effort --- first to market
[edit] Wednesday 31 August 2005
Continued from Monday 29th
- Topics of Discussion:
- What is Marketing?
- Different views of what marketing is? See last Monday...
- Ideas and inventions come from labs, but that does not ensure marketplace sucess.
- Example of Tivo:
- People loved it but the product didn't sell because people did not attribute value to it.
- Also consumers had difficulty understanding it.
- Example of Tivo:
- Product, Price, Place and Promotion --- the four 'P's of marketing
- Researching the marketplace.
- Finding out what the consumer thinks.
- It involves more than just number crunching.
- Ideas and inventions come from labs, but that does not ensure marketplace sucess.
- Different views of what marketing is? See last Monday...
- What is Marketing?
"The process or act of bringing together buyers and sellers" is the definition of marketing.
See for more information http://en.wikipedia.org/wiki/Marketing
How do different firms view the marketing function? Many see marketing as just selling or promotion. This is typical of engineering powered companies.
1920-30s in the production era, the view was that people will recognize a good product and buy it because they want it and value it. 1950s in the selling era, the view was that people will always resist buying a non-essiental good. Therefore the marketor's job is to 'sell' the product to the customer. 1990s in the marketing era the view is that the company should form a relationship via meeting a customer's needs.
What is the Marketing Concept? Develop products based on what customers need and want.
Almost everything can be marketed e.g., Red Cross The packaging allows one to market even core values.
Examples of views: Intel The 'Intel Inside' marketing campaign to establish a brand. Thus people would buy based on a name alone. Saturn No haggle pricing to ensure consumer friendlyness. Lexus Tried to promote a interdealership network for the purpose of luxury promotion. This was new for a Japenese car company. What is Customer Value? ---> Understanding Benefits and Costs Markets in perfect competition will have nearly identical products and prices. Companies must differenciate between products to break the price following that occurs.
Benefits Social dimension --- sheep factor 'How you think others will think of what you consume.' Functional --- the actual effect a product produces Personal --- your personal gain from the product Experiencial --- the exprience of consuming ie through one of your 5 senses Costs Monentary -- the actual money based outlay Temporal -- time to get the product Physcological -- did you get the correct product? Behavioral -- what it takes to use a product Value Chain Better value ---> increased satisfaction ---> increased loyalty ----> long term profitable relationships What is Marketing Management?
[edit] Wednesday 07 September 2005
He continued from the previous lecture concerning customer value. Benefits Social dimension --- sheep factor 'How you think others will think of what you consume.' Functional --- the actual effect a product produces Personal --- your personal gain from the product via a deeply held personal belief Experiencial --- the exprience of consuming ie through one of your 5 senses Costs Monentary -- the actual money based outlay Temporal -- time to get the product Physcological -- did you get the correct product? get a good deal? etc... Behavioral -- what it takes to use a product physically He talked further on specific examples concerning customer value and how the benefits and costs relate.
Smart marketers understand customers so well that they figure out what customers really need and offer something even before customers express a need for a product or service. These are usually 'extremely' successful products or service in the marketplace.
How do you find what a customer really wants? Surveys Focus Groups Observing the product being used
In any business it is always more expensive to get a new customer than to keep an old customer.
Marketing Myopia What business are we in? The answer to the question can determine your entire business strategy and way of thinking about your business. Dont focus on the product focus on how it is helping the customer. Avoid thinking too narrowly about your business.
Relationship Marketing and Lifetime value of a customer taking a longer term view of the worth of a customer
can decide how much to spend on aquiring a customer. you dont want to spend too much on getting a customer
use Net Present Value calculations
Functions of Marketing Exchange functions
Physical Distribution functions - transporting and soring
facilitating functions
Marketing creates utility for customers Time utility
Place utility
Ownership or possession utility
(form utility is created by production)
[edit] Monday 12 September 2005
Marketing Plan Executive Summary Brief summary of what the key points are Company description (industry, products, sales revenue, etc.) Basic background of your company Goals (driven by corporate goals)
Situation Analysis (How things are right now?) SWOT Analysis Strengths (internal to the company) Weaknesses (internal to the company) Opporunities (in the marketplace) Threats (in the marketplace) Strategies and Tactics
Alternative format Executive Summary
Situation Analysis External, Customer and Internal
SWOT Analysis
Goals and Objectives
Strategies and Tactics
Market share is a percentage of the market via total sales or volume of units
See figure 2-1
Companies strategy moves from corporate culture and business goals.
Generic brands Typically cheaper
Took up 10-15% of the market when first introduced
Proctor and Gamble responded to this by emphasizing the brand, quality and value
Strategy vs. Tactics Strategy --- long term usually longer than a year a broad plan to guide decisions and behavior of employees in an organization
Tactics --- short term usually shorter than a year
Did some examples
Strategic Planning Process Organizational Mission What to company mission statement is and their corporate culture Organizational Objectives decide the long term goals Organizational Strategies decide how the company will achieve the goals
Growth Strategies: Product market matrix
Present Products New Products
Present Customers Market Penetration Product Development
New Customers Market Development Diversification
[edit] Wednesday 14 September 2005
Organizational mission
environmental scanning
SWOT analysis core competencies
Strategic windows what is it? timing ex. customer delight boston consulting group matrix
[edit] Monday 19 September 2005
Environmental Analysis Why is it important for marketers to scan the environment? Elements of the marketing environment What are things a marketer should look for? Microsoft vs. Justice Department Summary
Types of Competition Direct: Same industry similar products Indirect: Substitute products Generic
Types of Competitive Forces
Threat of new entrants A | | Barganing power of suppliers <------ Rivalry amoung existing competitors -----> Barganing power of buyers A | | Threat of Substitute Products
Microsoft vs. Justive Department Bundling products together ie Win95 + IE Can't get one without other Fair or unfair?
Political-Legal Environment Government Regulation Robinson-Patman Prohibits price discrimination Sherman Prohibits restraint of trade Deregulation laws: Telecommunications Act of 1996
[edit] Wednesday 21 September 2005
- Economic Environment
- concept of business cycles
- prosperity
- recession
- depression
- recovery
- inflation and deflation
- unemployment
- disposable and discretionary behavior
- concept of business cycles
Gross Income - Taxes = Disposable Income - Necessities of life = Discretionary behavior
What does this imply?
- This affects the marketing plan for long term planning.
Technology environment
- think of how fedex has changed with technology
Consumerism: consumers have a right to
- choose freely
- be imformed
- be heard
- be safe
Ethics vs Legal issues
Other thing to do while scanning the environment
- identify trends in society
- eg. increasing number of women in the workforce
[edit] Monday 26 September 2005
- Consumer Behavior
- How consumers behave in the marketplace?
- Why do consumers switch brands even when they are happy with their regular brand?
- Several Ideas and examples were bantered around.
- Including variety seeking in the marketplace
- Why did BIC's disposable fragrance flop though their disposable lighters are a huge sucess?
- The brand was not positioned to make it paletable to the consumer.
- Why did New Coke not do well even though consumers said they felt it tasted better than old coke?
- The brand had an emotional attachment to the consumer and they were furious that coke would change out the new forms of coke.
- External/Interpersonal influences on CB
- Cultural Influences
[edit] Wednesday 28 September 2005
- Model of Buyer Behavior
- Need arousal problem rec
- information search
- evaluation
- purchase
- post purchase feelings
- Problem Recognition
- Needs wants desires
- pyramid
- arousal of wants desires
- insurance co. - fear
- car - fun ,fear
- Needs wants desires
- Information Search
- How can marketers influence buyers at this stage?
- create awareness of your brand amoung buyers
- aim: get info buyer's consideration set
- create + word of mouth
- Even if a company doesnt get your business they want to be considered.
- How can marketers influence buyers at this stage?
- Evaluation
- How do buyers evaluate brands?
- They form beliefs about certain brands
- They then form preferences based on their beliefs
- How do buyers evaluate brands?
Conjunctive
- Look at all aspects to see which meets all the minimum requirements
Elimination by aspects
- Determine what is most important
- You look for all the brands that are meeting the minimum cut off
- If you are left with only one, thats the one you choose, otherwise go to the next attribute and step 1
[edit] Monday 03 September 2005
Evaluation
- How do buyers form preferences?
- Noncompensatory models
- Lexicographic
- Elimination by aspects
- Conjunctive model
- Compensatory models
- Noncompensatory models
Multi-attribute model
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please see math/README to configure.): A = sum_{n \to \infty}^N^(B*I)
Purchase & Post purchase eval
- Cognitive Disoance
Types of decision making
- Routine
- Limited
- Extensive
Contrast with consumer buying
- Number of buyers
- Prchase volume and purchase amount
- Decision process
[edit] Wednesday 05 October 2005
Contrast with Consumer Buying
- Number of buyers
- Purchase volume & purchase amount
- Decision process
- Decision criteria - role of emotion?
- number of people involved in transaction
- extent of direct information exchange between buyer and seller
- Demand for one product depends on the demand for another product, ie. demand for one product is derived from the demand from another product
- example: air conditioner units
Types of purchases
- straight rebuy
- modified buy
- new task purchase
Buying Roles
- Initiator
- User
- Influencer
- Buyer
- Decider
- Gatekeeper
[edit] Monday 10 October 2005
Exam, got a 81, yuck!
[edit] Wednesday 12 October 2005
[edit] Global Marketing
[edit] Social-Cultural Environment
- you have be careful of a couple of things
[edit] Competitive Environment
local competition along with any other big companies that may join in
that market of today maybe different tomorrow
[edit] Technological environment
you might have problems in a tech poor environment
[edit] Political-legal environment
- enron in india
- taxes/import tariffs
- quotas
- advertising
- ownership laws
- 50% or more local ownership
- GATT,WTO
- Free trade organizations
[edit] Economic environment
- size of the market
- stage of economic environment
- infrastructure
- per capita income w/ income distribution
- currency regulations
- exchange rate
[edit] Challenges of Global Marketing
Chevy nova, did not take into account the spanish language
[edit] Major errors by big companies
phillips refrigerators in japan
- they were too big for the size
general foods orange juice
- introduced too quickly
middle east - mistranslation
- new suspension - car suspended from roof
indian cars for the middle class
- priced too high
[edit] Can firms reduce risk of non-payment
- Prof's example
- international banks fund projects to encourage trade
[edit] Wednesday 19 October 2005
Marketing research
- internal sources
- external sources
- primary data
- secondary data
[edit] Wednesday 02 November 2005
[edit] What customers judge in services?
- Reliability
- Responsiveness
- Assurance
- Empathy
- Tangibles
[edit] How goods differ from services?
[edit] How customers evaluate services?
Understand types of qualities:
- search qualities
- experience qualities
- credence qualities
Moments of Truth
- Product life cycle
- Introduction
- Growth
- Maturity
- Decline
[edit] Monday 07 November 2005
Branding
Value of a Brand
[edit] Monday 14 November 2005
He talked about product testing and project rollout.
[edit] Wednesday 30 November 2005
test
- three 'p's
- channels
- wholesalers
- pricing
- see his and my notes
profit and pricing
- can enter the market either high or low and it is a risk either way
skimming the market, by charing a large amount of money
product line pricing stratey
- captive pricing
- loss leaders
- price lining - price points
- adding extra products to fill a price point that the market or the company is ignoring
- price bundling
- bundling products to increase sales
concept of cost elements
- fixed costs
- varible costs
- break-even analysis
- fixed costs/selling price - varible costs
