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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 ;).

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?

Pioneering effort --- first to market

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.
        • 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.

"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?

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)

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

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

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

Wednesday 21 September 2005

  • Economic Environment
    • concept of business cycles
      • prosperity
      • recession
      • depression
      • recovery
    • inflation and deflation
    • unemployment
    • disposable and discretionary behavior

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

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

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
  • 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.
  • Evaluation
    • How do buyers evaluate brands?
      • They form beliefs about certain brands
      • They then form preferences based on their beliefs

Conjunctive

  1. Look at all aspects to see which meets all the minimum requirements

Elimination by aspects

  1. Determine what is most important
  2. You look for all the brands that are meeting the minimum cut off
  3. If you are left with only one, thats the one you choose, otherwise go to the next attribute and step 1

Monday 03 September 2005

Evaluation

  • How do buyers form preferences?
    • Noncompensatory models
      • Lexicographic
      • Elimination by aspects
      • Conjunctive model
    • Compensatory models

Multi-attribute model


<math>A = sum_{n \to \infty}^N^(B*I)</math>

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

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

Monday 10 October 2005

Exam, got a 81, yuck!

Wednesday 12 October 2005

Global Marketing

Social-Cultural Environment

  • you have be careful of a couple of things

Competitive Environment

local competition along with any other big companies that may join in

that market of today maybe different tomorrow

Technological environment

you might have problems in a tech poor environment

Political-legal environment

  • enron in india
  • taxes/import tariffs
  • quotas
  • advertising
  • ownership laws
    • 50% or more local ownership
  • GATT,WTO
    • Free trade organizations

Economic environment

  • size of the market
  • stage of economic environment
  • infrastructure
  • per capita income w/ income distribution
  • currency regulations
    • exchange rate

Challenges of Global Marketing

Chevy nova, did not take into account the spanish language

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

Can firms reduce risk of non-payment

  • Prof's example
    • international banks fund projects to encourage trade

Wednesday 19 October 2005

Marketing research

  • internal sources
  • external sources
  • primary data
  • secondary data

Wednesday 02 November 2005

What customers judge in services?

  • Reliability
  • Responsiveness
  • Assurance
  • Empathy
  • Tangibles

How goods differ from services?

How customers evaluate services?

Understand types of qualities:

  • search qualities
  • experience qualities
  • credence qualities

Moments of Truth

  • Product life cycle
    • Introduction
    • Growth
    • Maturity
    • Decline

Monday 07 November 2005

Branding

Value of a Brand

Monday 14 November 2005

He talked about product testing and project rollout.

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

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