* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download 1408095211_462544
Market penetration wikipedia , lookup
Social media marketing wikipedia , lookup
Pricing strategies wikipedia , lookup
Marketing research wikipedia , lookup
Market segmentation wikipedia , lookup
Ambush marketing wikipedia , lookup
Food marketing wikipedia , lookup
Neuromarketing wikipedia , lookup
Marketing communications wikipedia , lookup
Customer engagement wikipedia , lookup
Multi-level marketing wikipedia , lookup
Sports marketing wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Target audience wikipedia , lookup
Viral marketing wikipedia , lookup
Digital marketing wikipedia , lookup
Segmenting-targeting-positioning wikipedia , lookup
Marketing plan wikipedia , lookup
Youth marketing wikipedia , lookup
Direct marketing wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Product planning wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Street marketing wikipedia , lookup
Target market wikipedia , lookup
Marketing channel wikipedia , lookup
Multicultural marketing wikipedia , lookup
Green marketing wikipedia , lookup
Advertising campaign wikipedia , lookup
Marketing strategy wikipedia , lookup
12.0 MARKETING Definitions, perspectives and contexts Market research Segmentation, targeting and positioning Branding Product, price, promotion and place Buyer behaviour Marketing and the economy and the state Consumerism Marketing and developments in technology Social, cultural and institutional issues Organization issues Marketing strategy For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.1 MARKETING – DEFINITIONS I ‘The process by which companies create value for customers and build strong customer relationships in order to capture value for customers in return.’ (Armstrong and Kotler 2007) ‘The achievement of corporate goals through meeting and exceeding customer needs better than the competition.’ (Jobber 2001) ‘Marketing is not a specialized activity at all. It encompasses the whole business. It is the whole business seen from the point of view of the final result, that is from the customer’s point of view. Concern and responsibility for marketing must therefore permeate all areas of the enterprise.’ (Drucker 1968) For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.2 MARKETING – DEFINITION II Marketing is: An interactive process That is aimed at satisfying customer needs That operates in a competitive and dynamic environment That concerns goods, services and ideas That exists in all types of organization That involves product design, pricing, promotion and distribution That is the responsibility of all members of the organization For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.3 PERSPECTIVES ON MARKETING Product orientation Selling orientation Marketing orientation Relationship marketing Societal marketing For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.4 CONTEXTS OF MARKETING Product marketing Business to business marketing The marketing of services The marketing of images International and global marketing For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.5 ELEMENTS OF MARKETING Market research Segmentation Targeting Positioning Branding Product, price, promotion and place (the 4 Ps) For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.6 MARKET RESEARCH There are several overlapping activities Information about current products and their market position Market intelligence - competitor behaviour and market trends Feasibility testing of new products Evaluation of products on an ongoing basis For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.7 SEGMENTATION, TARGETING AND POSITIONING Segmentation - where the market is broken down into distinctive consumer groups. Targeting – developing products and a marketing mix for specific segments. Positioning - finding the appropriate niche in the market to place a product or service. Repositioning – aiming a product at a different group to increase sales. For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.8 SEGMENTATION OPTIONS Offer a single or small range of products or services to a single segment or small range of segments. To offer many products and services to many different segments. To offer a single product or service to an undifferentiated mass market. For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.9 BENEFITS OF SEGMENTATION, TARGETING AND POSITIONING Assist market penetration by focusing on the needs of a particular group Competitive advantage via specialist knowledge of a particular market segment Product development via increased knowledge of a particular market Adaptation of products across other groups Efficient use of resources by targeting marketing efforts Effective targeting and positioning can add value to products For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.10 BRANDING An important source of product differentiation via name, logo or symbols. Importance due to: It has replaced technological differentiation as a source of competitive advantage. Major markets have become stagnant - brands give products prominence. Branding was important in specific markets e.g. clothing and fashion accessories, cosmetics, cars. But its importance is now much broader. Brands can outlive companies. For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.11 ATTRIBUTES OF A BRAND Brand as a product Brand as an organization Brand as a person Brand as a personality Brand as a symbol Brand as a country of origin For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.12 ADVANTAGES OF BRANDING TO THE FIRM Increase market share by appealing to different segments Capture new markets via brand switching Gain more exposure in retail outlets Means of organizing the business Builds brand loyalty and repeat purchases Assist in launching new products Adding value to the business via brand equity As a means of structuring the organization For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.13 TOP GLOBAL BRANDS For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.14 CRITICISMS OF BRANDING Misleads consumers by drawing false distinctions between products. Redirects investment from product development to packaging and promotion. Encourages status consciousness especially amongst the young. For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.15 THE 4 Ps Product Price Promotion Place For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.16 THE 4 Cs Suggested as an alternative to the 4Ps by Armstrong and Kotler (2007) Customer solution – associated with product Customer cost – associated with price Convenience – associated with place Communication – associated with promotion For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.17 THE PRODUCT Relates to manufactured goods, services, people, organizations, ideas etc. Broad concept covering brand, packaging and aftersales service Product line - variations in the same product Product mix - portfolio of different products Marketing informs product development For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.18 THE PRODUCT LIFE CYCLE For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.19 ADVANTAGES AND WEAKNESSES OF THE PRODUCT LIFE CYCLE CONCEPT Advantages Assist in planning a campaign Identifies what, where and when action is needed when sales decline Assesses relative strengths and weaknesses of the product portfolio Weaknesses Over-simplification of the behaviour of markets Much variation in the nature and timing of the cycle between sectors and products Difficult to assess when a product has reached a certain stage in the cycle Ignores the knock-on effects of a changing market position For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.20 PRICE Determinants include Supply and demand Cost Consumer behaviour Competition Management goals Organization size For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.21 PROMOTION Advertising - includes design of the message, choice of media, cost, evaluation Sales promotion - ‘below the line’ Direct marketing Personal selling Publicity For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.22 FUNCTIONS OF ADVERTISING Inform customers and potential customers Create initial demand Persuade customers to buy Build up a brand image Remind customers and encourage repeat purchases For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.23 PLACE Involves consideration of: Marketing channels - how goods and services reach the consumer Methods of physical distribution Use of intermediaries Impact of direct marketing and e-commerce For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.24 CUSTOMER SERVICE AND THE 7Ps To product, price, promotion and place are added: People – important that all staff recognize that they are involved in the marketing process Process – need to be effective to identify customer needs and to handle orders and complaints Physical evidence – importance of lay-out and design of space to attract customers and make them feel comfortable For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.25 BUYER BEHAVIOUR A complex process difficult to predict Important to predict viability of innovative products. Rogers (1962) model identifies types of buyer - Innovators - Early adopters - Early majority - Late majority - Laggards Customer loyalty is the important goal For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.26 CUSTOMER LOYALTY AND CUSTOMER SATISFACTION For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.27 ENVIRONMENTAL ASPECTS OF MARKETING Interaction with the economy Interaction with the state Consumerism Interaction with technology Cultural, social and institutional influences For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.28 INTERACTION WITH THE ECONOMY • Many marketing ideas are based on economic theory • Economic restructuring - shift to service economy, globalization, privatization - present new challenges for marketing • Segmentation is linked to uneven distribution of wealth and income • Economic changes - fall in demand, exchange rate shift, inflation, interest rates - impact on marketing strategies • Marketing strategies attempt to protect the firm from the adverse consequences of economic change For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.29 INTERACTION WITH THE STATE The state uses marketing to provide information on government policy The state uses marketing to promote desired behaviour in the population - healthy living, education and training The state directs public consumption via taxes and pricing policy The state attempts to regulate marketing through laws and other measures For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.30 CONSUMERISM I Basic principles The right of the consumer to be informed The right to choose The right to be heard especially by governments The right to redress The right to safety The right to the satisfaction of basic needs The right to consumer education The right to a healthy environment For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.31 CONSUMERISM II The growth of consumerism is related to The need for protection against dangerous products and damaging services The need for protection against dishonest producers Popularity of consumer pressure groups More educated, affluent and demanding consumers Growth of media interest and consumer press For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.32 INTERACTION WITH TECHNOLOGY Information and promotion of new developments in products and processes Product life cycles can be stimulated by technological innovations Increased demand via promotion must be matched by technological capacity to meet the demand Technological developments have assisted marketing e-commerce, the use of the internet for social interaction Developments in transport and communications have assisted distribution For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.33 RECENT TECHNOLOGICAL DEVELOPMENTS IN MARKETING E-marketing Digital marketing Social media marketing For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.34 DIGITAL MARKETING Use of digital technologies e.g. the web, apps, emails The growth of on-line marketing - highly flexible - much lower cost than TV advertising - can target specific groups - use of emails and display and pop-up ads Use by companies of search engine marketing to increase corporate visibility on search engines For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.35 SOCIAL MEDIA MARKETING Use of such as Facebook, Twitter and YouTube Mirrors the rapid growth of social media usage Shift in emphasis from the company to the consumer through the establishment of discussion groups and sites where consumers can submit views e.g. Tripadvisor Can have significant positive and negative impacts Some drawbacks but now a powerful marketing tool For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.36 SOCIAL AND CULTURAL INFLUENCES Used as a basis for segmentation Advertising plays on core cultural values e.g. family Marketing needs to respond to changing demographics Globalization has resulted in some convergence in marketing practice Growth of a global media and increase in types of media have increased opportunities for advertising and reduced cost For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.37 VARIATIONS DUE TO CULTURAL AND INSTITUTIONAL DIFFERENCES Advertising spend Emphasis on different elements of the marketing mix Importance of language Legal controls Nature of advertising There are dangers of cultural stereotyping For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.38 THE ORGANIZATION OF MARKETING Emerged as a specialist function with the growth in size and complexity of organizations Marketing itself has grown and developed its own specialist activities The organization can take one of several forms: - As a specialist activity in a functional structure - Product management - incorporated in product groups - Area management - structure based on markets - Outsourcing to specialist agencies For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd 12.39 MARKETING STRATEGY – AN OVERVIEW Product strategy Pricing strategy Promotion strategy Distribution strategy Segmentation and positioning strategy Branding strategy Integrated strategy For use with Business in Context 6e by David Needle 9781408095218 © 2015 Cengage Learning EMEA Ltd