Marketing 18576 Essay Example
Marketing 18576 Essay Example

Marketing 18576 Essay Example

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The first lecture covers an introduction to marketing.

Marketing is the management process that identifies, anticipates, and satisfies customers' requirements in a profitable manner.

According to Peter Drucker, the primary goal of a business is to create customers. In simpler terms, if an organization does not have customers for its product or service, it has no reason to exist.

The only objective and justification for all production is consumption. The interests of the product should be considered only if it enhances customer satisfaction.

The various operational functions of marketing include a broad spectrum of activities, such as sales promotion, advertising, public relations, selling, financing, buying, forecasting, pricing, standardization, publicity, merchandising,
market research, transporting,
risk-taking,
servicing and stockholding.

The marketing mix encompasses elements that organizations control and use to persuade customers to choose their organization over others. These element

...

s include customer-buying behavior, trade behavior, competitors' position and behavior, and government regulations.

The four Ps of Marketing.

Originally, there were 12 Ps of marketing. However, this list is difficult to remember. Jerome McCarthy simplified Borden's original marketing mix into 4 main categories, known as the 4 Ps. These categories are product, price, place (the offer mix), and promotion (the promotional mix). The internal variables are grouped together under these headings.

Despite the usefulness of the 4 Ps framework, there has been a decade-long debate surrounding the risks associated with viewing marketing solely as the control of these 4 Ps. This mindset can trap suppliers into forgetting about customer needs and the significance of mutually beneficial exchanges. Some suggest the inclusion of three additional Ps: Probe (research), Partition (segmentation), and Position.

Lecture 2. The Marketing Macro Environment.

In an Open Market, both parties in an exchange

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are more likely to perceive the exchange as beneficial. An Open Market is defined by the presence of a single homogeneous product, many buyers, many sellers, and equal access to all relevant market information for both buyers and sellers.

In order to regulate legal trade, all developed societies have similar regulations. Therefore, manufacturing and trading organizations often have to comply with these regulations, which are referred to as the environmental variables of marketing. These variables include the Economic, Social, Technological, and Political factors (STEP).

Political forces.

Companies can display good corporate citizenship by abiding by both the laws and ethical principles, and acting responsibly and responsively. Certain industries have established voluntary codes of conduct, regulated and overseen by a central membership organization. A prime example is the medicine field, which has historically followed rigorous standards of professional conduct.

Governments have created laws and regulations to regulate industry and trade. These regulations directly affect businesses, particularly in the following areas:

  1. Legislation regarding monopoly and competition standards is overseen by the Office of Fair Trading and the Monopolies and Mergers Commission in the UK. Additionally, as a member of the EC, the UK follows Community provisions outlined in Article 85 of the Treaty of Rome, which address practices that hinder competition.
  2. Efforts to protect consumers are implemented at various levels, targeting both groups and individuals. This includes safeguarding users of specific products and services, as well as individuals who may be targeted by certain business activities.

Relevant legislation, including the Trade Descriptions Act 1973 and the Consumer Credit Act 1974, among others, has introduced measures directly related to marketing practices. These measures encompass pricing claims, warranties, product quality, and more.

Economic forces.

The economic environment

has various international, domestic, and regional factors that affect the market potential for companies. The success of a company relies on how well it prepares and makes decisions based on this potential. Economic data is important because it can reveal significant economic changes that are relevant to marketers. Paying attention to the economy allows companies to respond promptly to different scenarios, such as the ones mentioned below:

An economic downturn of varying intensity, known as a recession, is characterized by a decline or stabilization in indicators such as GNP, GDP, and household income. Concurrently, measures such as stock market performance, unemployment rates, and company bankruptcies tend to rise.

2. Recovery: Conversely, in some sectors, marketers may witness a surge in sales as the economy begins to improve. Nevertheless, this increase in economic activity can result in overheating and subsequently drive up costs and prices.

3. Inflation is frequently associated with robust economic circumstances, rising demand, and scarcities. Moving forward, economic policies are anticipated to be influenced by multilateral agencies and agreements such as the United Nations (UN) and the proliferation of common market blocs like the European Community (EC).

The contents of the  

Social forces.

will remain unchanged.

Culture encompasses the intricate components that mirror a society's principles, principles, inclinations, and behavioral standards. Marketers must recognize the fluctuation of culture within and across societies, resulting in diverse cultural standards among countries, regions, and cultural groups. The factors that set societies apart undergo gradual modification due to influences such as familial upbringing, the educational system, national history, political growth, religion, among others. The concept of environmental consciousness serves as a fascinating declaration of society-wide apprehensions that have resonated with governing bodies

and industry leaders.

Technological forces.

Technology has a crucial impact on both economic advancement and consumer way of life. It provides businesses with a substantial edge over competitors and affects diverse industries, even those seemingly unrelated. For instance, digital electronics such as typewriters have rendered the metalworking industry obsolete. Additionally, technological progress has led to lower production expenses and expanded consumer availability to a broader assortment of products.

The marketing environment is the battleground in competitive marketing. To emerge triumphant, companies must carefully observe and react to changes in their surroundings. Companies can be categorized into three groups: those that take action, those that simply watch events unfold, and those that are left bewildered by the resulting outcomes.

The main topic of Lecture 3 is markets and market segmentation.

A market refers to a group of individuals or organizations that have specific product requirements and the ability, willingness, and permission to buy those products.

Markets can be divided into two categories.

The term "consumer" refers to the act of purchasing carried out by private individuals or a collective group.

The purchase of industrial products and services can be attributed to three primary reasons: 1) for resale, 2) for manufacturing other products, and 3) for general use, such as administration or computers.

3. Market differentiation occurs when consumer needs are not the same. In an undifferentiated market, all needs are identical.

There are four criteria for effective segmentation: measurable and economically variable.

There are different methods for market segmentation.

Geographic position on the globe.

The demographic basis for collecting numerous government statistics is also the standard system employed by the media industry. It encompasses factors such as age, sex, family cycle, and socioeconomic segmentation.

The family life

cycle is an important aspect of society.

A B C D E F

A single, B- young married, C- young married with children, D- older married with older children (full nest), E- old married, F- old single.

Socio economic segmentation

A and B belong to the upper or upper middle class, C1 belongs to the middle class, C2 belongs to the lower middle class, and D and E belong to the skilled or unskilled manual labor class.

The members' lifestyle and interests are reflected by the class.

Psychographic lifestyle.

Personality types, such as those seen on a BA flight, require staff training in order to effectively handle various individual traits, including the apologetic type, the friendly individual, the playful personality, and those who expect to be served because they paid for their ticket.

What are the advantages of a product in terms of behavior? For instance, toothpaste is utilized for the purpose of cleaning teeth.

Users of the product can be categorized as heavy or light, including those who utilize mobile phones.

Geodemographics

1. The spatial distribution of important demographic variables.

2. Acorn classifies residential neighborhoods, such as the presence of 7.4% modern housing with higher income and 20% urban local authority housing.

The topic of Lecture 4 is Market offerings.

Product is anything that the consumer receives and finds valuable in terms of fulfilling a perceived desire, necessity, or issue.

The topic of the text is "Branding."

Branding is the act of assigning a distinctive identification, such as a name, symbol, or design, to a product or group of products. This process establishes this identification in the market through usage and promotion. Brand names are typically composed of words that are memorable, unique, simple to spell, and easy

to pronounce (preferably in various languages). Manufacturers have the choice to select brand names and create a branding strategy.

1. A common strategy that some companies use is multiproduct branding, where they utilize one consistent brand name, which is often the same as the company's name, for all their products.

2. Multibrand products are characterized by a manufacturer giving distinct brand names to various products, which is commonly observed in the consumer goods sector, including cigarettes.

3. Own-label brands, mostly connected to consumer retail chains, have been beneficial for certain manufacturers as a supplementary business opportunity in the retail industry.

Classification of the product.

Consumer products, industrial products, and durables are all categorized as goods.

The interconnection of shopping, goods, and capital items is evident.

Specialty goods Accessories

Convenience goods, materials, components, and consumables are all included in this category.

Services Supplier

Services Services

Fast moving consumer goods (FMCG) are low-cost products that have a quick turnover. This category includes food, beverages, cleaning supplies, and personal care items which are typically used or consumed within a short period of time.

Individuals often purchase convenience items such as newspapers.

Prescription medication and other specialized items are available for sale from expert merchants.

Consumers buy durable goods because of the benefits they provide.

There are three categories which it can be divided into:

Shopping goods products are typically chosen after shopping around to compare prices, etc.

Only a few outlets offer specialty goods products, such as car spares.

There is a pressing demand among buyers for emergency durable goods, specifically replacement windscreens.

Industrial goods refer to products or services that are bought by organizations engaged in manufacturing, supplying, or providing services.

Having capital plant and equipment is essential for an organization to accomplish its objectives and improve

its revenue generation.

Enhancing airplane services, including maintenance, does not directly lead to an increase in capacity.

Raw materials are the physical inputs used in both the production and delivery of the final product.

Supplies, which are also referred to as consumables, are vital products needed for the production process. They include a range of items like lubricants and cleaning materials. Generally, these products are classified based on their purpose, such as maintenance.

Lecture 5 on Product Policy.

The life cycle of products varies in duration, with some lasting longer than others.

A B C1 C2

Or

Eg Single CD

The introduction stage, like the birth of a new product, is extremely crucial.

During the growth stage, there is a notable increase in sales.

C1's sales growth has slowed down as it moves into the maturity stage, despite previously experiencing faster growth.

C2 Stability Maturity

C3 Decay Maturity

D Decays

An innovative product is being introduced that is high profile, high price, and highly promoted.

B Selective penetration refers to a strategy where the high price of a product is accompanied by low promotion. This strategy is effective when targeting a relatively small market segment, consisting of people who are willing to pay a premium to be the first to own a particular product. Examples of such products include watches, which are typically positioned as long-lasting possessions.

C Pre-emptive low price high promotion is a marketing strategy that focuses on achieving maximum market penetration by offering low prices and extensive promotions. This approach targets price-sensitive products that have a high price elasticity of demand, even if it means selling some products at a loss.

D Low profiles low price low promotion with a large market that must

be aware of the product and is price sensitive.

Growth Availability (PDM) Relative decline in promotion

Realization Saturation

Decline

*

A B C

- product re-launch
- product modification
- market repositioning

Decay is a natural process that occurs over time.

1. A continuation strategy is similar to a maturity plan.

Strategy 2 emphasizes maximizing revenue by avoiding advertising and support.

The concentration strategy focuses on heavy users and promotes specifically to them.

In this lecture, the topic being discussed is advertising.

The above-the-line commission payment system is implemented for agencies.

BELOW THE LINE does not involve commission payments such as direct mail. In the UK, the agency receives approximately 10% of the advertising cost.

Advertising objectives.

Conative persuasion aims to convince people to take action. Affective persuasion focuses on evoking specific emotions about a product. Cognitive persuasion focuses on shaping people's beliefs.

Physical manifestations of corporate identity such as logos, letter designs, etc.

Corporate image manifests in the mind as reputation.

Measuring effectiveness.

The fact that changes in sales, brand awareness, purchase intention, and perception of the brand or company do not make recall a worthwhile measure. Just because a certain proportion of the public has seen an advert and remembers it, it does not necessarily mean they will buy the product or make repeat purchases.

The Shannon-weaver model describes the communication process.The elaboration-likelihood model is described below:

Cognitive processing, not the message itself, is what leads to attitude change.

The central route to persuasion involves the recipient finding the message interesting, important, or personally relevant. As a result, they carefully examine the message and evaluate the strength and rationality of the arguments. If their reactions are favorable, persuasion occurs.

B. The peripheral route. The recipient does not find the message interesting or engaging,

and therefore has no motivation to carefully process the message. In this case, the recipient responds to secondary cues such as attractive models, beautiful background scenery, source credibility, and status symbols. There is no critical analysis, but attitude change can still happen.

Therefore, if the brand's arguments are weak or consumers are not likely to engage with the product, utilize catchy tunes, attractive models, etc. Conversely, employ convincing arguments for high-involvement products as individuals will be motivated to process the message.

Types of advertising models:

The AIDA model consists of Attention (awareness), Interest, Desire (motivation), and Action (purchase).

The DAGMAR model, which stands for Defining Advertising Goals for Measuring Advertising Results, is a framework designed to guide advertisers in moving consumers through four stages of understanding. These stages are as follows: 1. Awareness, 2. Comprehension (understanding the product and its benefits), 3. Conviction (wanting to try the brand), and 4. Action.

Everett Rodgers enlarged the model to incorporate 6 stages, namely: Create awareness, elicit interest, produce evaluation, stimulate trial, create a sale, and cause repeat purchases.

The St James model (belief to attitude) suggests that consumers already have a preconceived idea of a brand. Therefore, Ad g should aim to change the consumer's perception of either A) what they need from the brand to align with their preconception or B) the brand itself to meet the consumer's expectations. For example, a full-time housewife should prioritize the health of her children.

There are criticisms of theoretical models.

Consumers are typically considered to be logical and rational, as well as being influenced by advertising in a linear manner. This means that they gather information, experience emotions, and then take action. However, there are also

some consumers who are impulsive and quickly move from minimal awareness to making a purchase decision. Additionally, the way consumers react to different types of media can vary. For example, when it comes to print ads, consumers are able to concentrate on the information presented. On the other hand, with TV ads, consumers often absorb information in clusters rather than in a step-by-step manner.

The models assume that the goal of advertising is to generate a sale. However, it is important to note that other objectives, such as reputation building, can be equally significant.

The body of work produced by Andrew Ehrenberg.

According to him, there is no evidence that Ad g can strongly influence people to change their behavior, feelings, or beliefs. Ad g is considered a weak force. For well-known brands, Ad g helps to maintain awareness and encourage consumers to make a purchase. Therefore, Ad g is seen as a defensive activity. In the case of new brands, Ad g can introduce the brand and build awareness but cannot change consumer feelings. Ad g works in the long term by maintaining brand recall in the consumer's mind.

Lecture 9 discusses the topic of pricing.

2. The importance and how people view the price.

Price is the monetary value assigned to a product or service. It represents the worth that consumers are willing to pay in order to obtain the benefits or advantages that the product or service provides.

The buyer determines the value based on their attachment to the item being exchanged, whether it is functional, of good quality, operational, or personal.

The seller's perspective on price is crucial for covering costs and making a profit. Profit can be

calculated by subtracting total costs from total revenue. It is essential for marketers to comprehend the implications of costs and have an understanding of the customers and the external environment in order to accurately evaluate the effects of pricing decisions.

2. Factors that affect the pricing decision externally.

Customers and consumers, both belonging to different market segments, have varying reactions to different price levels. Hence, it is crucial to determine prices in a way that meets costs at the lower end and remains acceptable to the market at the higher end. Ultimately, the pricing decisions are influenced by the consumers' perception of the products.

Understanding demand and elasticity is crucial in economic theory as it helps estimate the impact of price on the demand for a product. Marketers can utilize this knowledge to shape the demand curve.

price

P2

Q1 Q2 Quantity

Understanding price elasticity of demand is crucial for marketers, as it reflects the sensitivity of demand to changes in price. This sensitivity can be observed through the steepness of the demand curve.

Price elasticity is calculated by dividing the percentage change in quantity demanded by the percentage change in price.

Each member within a distribution chain will have a desired profit margin.

Pricing decisions in various competitive contexts, such as monopoly, oligopoly, monopolistic competition, and perfect competition, are made considering competitors.

Legal and Regulatory: The European Union's Monopolies and Mergers Commission (MMC).

One of the factors that affect pricing decisions is internal influences.

Organisational objectives are connected to corporate strategy and have the goal of satisfying customer needs and the aspirations of the organization. These objectives can change as markets evolve and can be either short-term or long-term.

Marketing objectives encompass targeting specific markets and achieving

desired positioning. It is crucial to incorporate the marketing mix, which extends beyond just pricing. Additionally, the profile of products and their life cycles must be taken into account.

Costs and price are intertwined when it comes to meeting customer expectations. Price reflects the amount the customer is willing to spend, while cost encompasses the expenses associated with developing, manufacturing, and marketing the product.

2. Setting prices.

- Pricing objectives are crucial for organizational sales and marketing strategies.

- Pricing policies and strategies, including new product introductions, product mix variations, and price adjustments.

- The cost for setting the price range is based on demand and competition.

Pricing tactics and adjustments include discounts.

PRICING OBJECTIVES.

- Financial goals are connected to profits or cash flow, which are essential for running the business on a daily basis and for reinvesting in research and development (R;D) activities.

- ROI is the measure of profitability.

Sales and Marketing Objectives.

Sales Targets are related to the desired market share and position in the market.

- Volume sales targets are directly linked to market share objectives, but they have a stronger emphasis on operational aspects such as batch size and units of production.

- Keeping things as they are

- Survival

PRICING POLICIES ; STRATEGIES serve as a guide for pricing decisions and offer a framework for making those decisions.

New product pricing strategies involve determining whether to enter the market with a low price (known as Penetration) or a high price (known as Skimming).

Penetration Pricing strategy is designed to quickly gain a significant market share by offering prices that are lower than those of existing competitors.

Price Skimming involves setting high prices with the goal of attracting less price-sensitive market segments.

Distinctions within

the range must be made for product mix pricing strategies.

Managing price changes is a dynamic process, as prices are rarely static. Competitive pressures often necessitate adjustments. However, it is important to be cautious when initiating price cuts, as one must carefully calculate the additional volume of sales required to compensate for the reduced profit margin. Price cuts are typically employed as a short-term tactic.

When considering excess production capacity and market dominance, certain factors should be taken into account.

When competitors lower their prices, companies can respond in various ways. They can choose to ignore the price decrease, undercut their competitors by offering even lower prices, or deflect the impact of the cut by implementing other strategies.

Initiating price increases based on customer and competitor response, while cost pressures are curbing demand.

Responding to competitor increases, it is important to match their moves by maintaining price levels or differentiating the product.

Adjusting the price range.

Cost volume price relationship.

Definitions of costs:

Fixed costs, such as salaries and rent, do not change with output. On the other hand, variable costs, like raw materials, vary depending on the quantity produced. Marginal costs refer to the alteration in total cost when one unit is added to total production, while marginal revenue represents the additional income generated from selling one extra unit. Total cost encompasses all expenses incurred by the organization.

The main focus of cost-based pricing is the customers and how they respond to various price levels.

- Psychological pricing includes tactics such as prestige pricing and odd-even pricing.

- There are specific price points at which a number of products are sold.

- Bundle pricing refers to the sale of a number of products as a

single package, such as computers and software.

- Promotional pricing is employed to encourage a market or create a perception of value in the immediate term.

Demand-based pricing.

Time-specific markdowns, such as end-of-season sales, and price differentiation, which refers to different prices for different segments like airline travel.

Competition-based pricing involves setting product prices by referencing the prices of competing products.

- The market structure determines the level of competition, with more competitors leading to a market closer to perfect competition. Market forces largely influence the pricing in the market.

The more a company differentiates itself from its competitors in the market, the more control it has over its pricing. This is influenced by how consumers perceive the value of the unique benefits it offers.

Pricing tactics and adjustment prices can vary to accommodate customer needs. These tactics and adjustments are the steps taken to determine the final price. The price structure provides guidelines for sales representatives when negotiating prices.

Special adjustments discounts, reductions from the normal list price, include trade discounts, quality discounts, seasonal discounts, and cash discounts.

Lecture 10: Marketing information systems.

Marketing information.

Effective marketing relies on valuable information, making marketing management primarily an activity centered around processing information.

Marketers require information regarding the characteristics, needs, and desires of their target market in order to implement the marketing concept.

Market research and the management of a systematic information system are essential in identifying marketing problems and opportunities. This, in turn, enhances the profitability of successful marketing.

Marketing information systems.

Reasons to manage information include dealing with information saturation or information starvation that organizations often face.

Structured and organized, a Marketing Information System (MKIS, MIS) collects information regularly from within and outside the organization. Its purpose is to provide

a continuous flow of information to marketing managers, aiding in their decision-making process. A subset of the organization's management information system, the MKIS is crucial for effective marketing management.

Market information system is comprised of four subsets.

1. The internal records include data collection for sales orders, accounts payable, and historical customer data.

2. The marketing intelligence system involves the collection of data from various sources, such as trade journals, government statistics, and newspapers. Managers gather information on a day to day basis, which is typically relevant to the changes happening within the marketing environment. Additionally, professional bodies like the Knitting Federation and off the peg data from sources like AGB super panels are also considered.

3. The marketing decision support system (Analytical) is a statistical decision support system that utilizes statistical procedures and mathematical models to analyze marketing data.

4. Marketing research system refers to the systematic process of designing, collecting, analyzing, and reporting findings that are relevant to a particular marketing situation. The term "ad hoc" is commonly used to describe the division of marketing research into primary and secondary research.

This is marketing research data.

Marketing Research is a process that involves generating information to support marketers in their decision-making process. It entails the systematic planning, gathering, and presenting of data that is relevant to specific situations encountered by a company's marketing efforts. This research is conducted on a project-by-project basis.

Market research is a systematic study of consumers' attitudes, perceptions, preferences, motivations, and buying activities.

Comparing internal research with agency research.

In-House versus outside agency research includes considerations on costs, research expertise, product/service knowledge, objectivity, special equipment, and confidentiality in the make or buy decision.

Marketing research data.

There are two types

of marketing research data: primary data, which refers to the collection of new data, and secondary data, which consists of data that has been previously collected.

The main sources of secondary data (also known as desk research) include the following:

Internal sources refer to data generated by the organization itself, such as Salesforce reports, accounting records, and customer complaints records.

2. Information that is generated externally to the organization.

- directories that have been published, newspapers that have been published, research reports that have been published

Types of data available to marketers include:

Business monitors

Census of the population

Family expenditure survey

- Trends in the economy

Monthly Digest of statistics and Annual Abstract of Statistics

- Commercial libraries such as the chamber of commerce.

- Internet

-Trade associations

- Market intelligence, Keynote reports are independent research reports published by MINTEL.

Trade directories such as the Times 1,000 and Who owns whom (UK) are published annually by Dunn and Bradstreet.

Extel cards provide information about the financial results and chairman's statement of a company.

- DataStream is an online computerized database that provides access to company financial results.

Primary research.

Quantitative research in the postal sector.

- Questionnaires can be conducted through various channels including postal, telephone, and personal methods.

Panel research involves a group of respondents who have agreed to provide information over a period of time, such as retail audits or consumer panels.

Several clients organize omnibus surveys through a research agency.

Personal interviews (qualitative) include depth interviews and group discussions.

Observational research is a qualitative method.

Observing and listening to scenarios of purchasing behavior

1. Field experimentation, also referred to as test marketing or laboratory experimentation, involves simulating the shopping environment

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