Marketing 1

Alla Inga Spara

• Consumer vs customer Customer purchases or obtains an offering, but a consumer uses it
• Market orientation an approach to business that prioritizes identifying the needs and desires of consumers and creating products and services that satisfy them.
• Why use market orientation? increases profitability
• Marketing orientation recognises the importance of markeing within the organisation
• 3 parts of market orientation 1. customer orientation 2. competiotor orientation 3. interfunctiona coordination
• Market sensing a organisation ability to develop a good market orientation ie the undertsanding og the strtigc complications of the market and acting on the informationcollectied though enviromental scanning
• sales vs marketing sales emphasises product push by creating distibutionincentitves whilst marekting focuses on creating prpduct pull by evoking demand among customers and consumers
• what is the marketing mix? 4 ps
• Extended markeing mix? Needed for srvices, has 3 more ps, for physcial evidance (tanagible components of services), process, (the importance of service delivery), people ( emphasis customer service personall interactions)
• What is the mareking enviroment ? external, perrformance and internal
• what is performance enviroment competiotrs, suppliers and indirect service providers who shape the way and the extent to which orgnisations schiebe their objectives
• PESTEL political, economic, sociocultural, technologoical, enviromental, legal
• examples of economic enviorment wage inflation, price inflation, GDP, taxes, exchange rates
• sociocultural affects customers prefereances
• crowdsorucing customers increasingly wants to work with companies to solve problems, the role and process is to idenfitify a task or gorup of tasks that are now in house and then release to a crowd of outsiders ie outiseders are invided to perform the tasksa on the behöaf of the comapnu
• 4 green marketing strtegies eco effiecnecy(cost lowered due to imporved prociesses), beoynd compalice leadership(the adoptation of diffrentation strtegy though organisational processes such as certified schemes to demonstratethe comanyäs ecologocial credienatials), eco branding, enviromental cost leadership(offerings with more enviromental benefits are offered at lower prices)
• envriomental scanning 3 stages: data gathering, interpreting the data, strtegy formulation
• what decides why consumers think and behave the way they do? cognitions (thoughs), perceptiosn(how we see things), learnings (how we memorise techniques and knwolege)
• cognative biases errors in our perceptions or evalutation of the circumstances that lead us to to su-optimal outcomes for ourselves and others, important in consumptions as the determine what information we are more likley to attent to as consumers and the features we vlaue the most in a given rpdouct or brand
• important baises in consumer behaviour confirmation bias, avalability effect(bias our expectaions or what a certain product offering might or might not be expected to inlcude), endowment effect (cosnumers seem to have strong attachtment to products that they already own), present bias (bias to prefer payoffs closer in time even if not the best), dunning-kreuger (overestimations of experise and skills), sunk cost fallacy, achoring
• 2 cognaitve processes system 1 thinking and system 2 thinking
• how does the cognative process effect deicision making? system 1 --> the process is shoreter and give minimal cognative attention to the information gathering and propostion evaluation.system 1 good to adapt to compelx envrioments with a lot of information
• what does MIPPAR Mean Motive developement, information gathering, propostion evaluation, propostion selection, acqustion and reevaluation
• What does the proposition acqustion model do the models describes what consumers are thinking when they decide to buy an offering
• describe motive development begins when we decide to obtain an offering ie when we become aware of a need
• describe the information gathering step the information gathering may be active or passive and it may be internal or external.
• what is meant by internal and external information gathering if the seach is internal it means that we are already aware of the problem and the offering whilst if it is external we relaise we do not known enough about our problem and thus se seek to advide or supplementary information .
• describe the propostion evaluation step when have enough information that is necessary to make a deicisonm we evaluate the alternative proportions. the ranking critera may change depending on offering, customer etc. our ranking may be rational or irrational
• give examples of rational and irrational ranking rational ex based on cost, irrational ex based on desire
• what is meant by "evoked set of products" part of the porpostion evalutation step in the proportion acqustion process. a person is said to have a evoked set of products in mind when they come to evaluate which product brand etc to solve the problem
• describe the propoistion selection when we select which offering meets our needs the best, is a separte stage than evaluation since there are times when we must re-evaluate wheat we buy since what we want is not avaible
• acqustion there are different approaches to purchasing. ex if the pruchase is made on routine, we do not get invovle in the deicison-making proces, if the purches is specialies and one time we may need much more ivolement in the deicision makling process to understand what we are buying and that it satsifies or needs
• re evaluation the last step and is abour how we are motivated to re-evaluatie our belefies, attitues, opionons or values if some event or cisructmace has chnaged our position
• how might marketers reduce potential dissonance 1. selectivly forgerring information 2 minimising the importance of an issue, decision or act 3. selectivly exposing ourselves only to new information that is consonant with our exisiting views 4 reversing a purchase decision
• showrooming showrooming is a consumer behvaiour which descirbes how people go to physical stores to familiraise themselves with the product and gather information but then complete the pruchase online, often in the search of a cheaper price
• what effects consumer purchaing behaviour perosnality, motivation, propostion acqustion process, cognatie biases, group influence, opionsattitutes and vlaues etc
• How does personality affect consumer purchasing behaviour personlaity determines how we repsond to our envrioment and thus may affcet the consumer purchase behaviour
• what are the 2 main apporached to study perosnlityies 1. trait approach 2. self-concept approach
• what is the trait approach the trait approach is about the 5 big personalities and howcertain personslaities types prefer brand ex extrovers like sociable brands
• explain the self-concept approach? this approach about how we buy from brands that resemble how we perceibe ourselves. Can be affeceted by marketers by reinforcing identities and refeinging what it means to habe that identyt or creating deisrble identities
• How does motivation effect buying behaviour? marketing tries to satisfy deeper needs than the fulfilment of functions.
• what needs exist? latent needs (hidden), passice needs (cost to high than the expexted utitliy) and the active needs (aware + percived benefits exceed the costs)
• what is picking? picking is a concept about the deliberative selection of an offering from among many acceptable alteratives, even though the consumer thinks the alternatives are almost identical
• intrincict and extrintic motivation consumers can be motivated by intentici evalutation (consumer likes a product) or extrintiic evaluation ( a firend mention a great product) or both
• what is the theory of planned behviour the theory of planned behaviour expalins that behaviour is brouth by our intentions. intentions are affected by the attitute of a subject towards a behaviour and subjective norms and the precived behvaioural control
• give a example of planned behaviur and how it may change people ex smoking, alter subjects attitutes towards smoking (attitues), change their views on how other see them as smokers (subjective nroms) and change their percpetions of how they pervive their own ability to give it up (percived behavioural control)
• what has the theory of planned behaviour been critised for 1. assumption that we always have formed attitues owards a certainbehviour, whgen attitues ofeten devlope only when we are required to have an opion or view on a action 2. the link between intentional and behaviour is not always very stronf
• group invluence Consumers also elarn though imitation and thus group infleucne also palys a role in consumer pruchasing behaviour
• which are the two main norms that infleunce cosnumer behviour? 1. descriptive norms (learn from observing what others do), 2 injunctive norms (about behvaioura are approved or disaproved)
• Decrpite noroms is many people around us ar econsuming a product, we are more likley to also cosnume it, these norms infleince us the most when we are certain about the right course of action ie if we see a lot of people doing something, it becomes a useful shortcut to decdie how we should behave
• injunctive nroms we compare opions, attitues, values and behvaiours with those of specific reference froups
• marketing as manipulation marketing by explaining that it beguiled its target audiences, and frequently without people even understanding that they were being manipulated
• framing the action of marektiers pressenting persuaice communciations and audiances interpreting that communciatin to asismiliate it into their existing understanding
• How does framing take place? situtions (limited time offers), attributes (highlight certain fautres), choices (showing a potneital buyer options across price range), actions (buy now pay later scgemes), issues, repsonsibilities, news
• commodity fetishism the idea that we are worshipping consumptions
• need vs choice in marketing some argue that marketing works to meet the needs of customers other argues that pwople seek more consumption witout any futher long-term satisfaction
• morals in marketing the marketing system is amoral ie not designed to harm but designed without any care as to wheater it harms or not.
• how to make marketing more moral decisions taken by hoberments which regulated the aggregate marking system
• describe some controversial issues in marketing is the price paid by companies in whealtier countries for suppliers obtained in poorer countries fair?, how much should we consume of any one offering?, are some producers and buyer groups more powerful than others and what impact does this have on society?, does the shift from customer reseach to customer surrvailance benefit customers?
• what is meant by sustable markeing? limitations of markeing philosphy and acknowledgement that there is a need to impose regluratory constraints on markeing, particulary concearning impact on enviroment
• what are the 3es of sustaible marekting? economigical (markeing should not negativly impact upon the envioment), equitable (markeing should not allow or promote inequtable social practices), economic (marketing should encourage long-term economic development as opposed to short-term economic deelopment)
• how does sustiable mareking work in practice sustable marekters focus on postioning and stimulating demand for recycled and remanufacuted products, enabaeling revers logiscitcs and reducing supplu
• what is collaborative consumption is the shared use of a product by a group ex airbnb. Creates value in 3 ways (economicly by icnresing choide, maateraial welfare and soruce of extra cash 2. enhances truct and bonding among otherwise unkown others, increasing social capital 3. envriomentally as it facilitates the use of underutlaised assets and avids waste)
• How to impment csr 1. discover organisational norms and vlaues 2. identify stakeholders 3. identify stakeholder issues 4. asses the meaning of csr 5. audit current practices 7. impement csr initiatives 8. prpmote csr 9. gather stakeholde feedback
• what ethics may be found in makreting? deolontical, telogical, mangerial utalitariansim, virtue
• deolontical ethics propose that wr have not only moral duty to ensure customer stasisfaction by the fofering but also a duty to ensure integraty in how the offering is producted and marketed
• teological ethics organisations is acting morally if it does not intent to hard
• mangerial ethics maximise shareholder value, if managers maximises their own-self interst --> economic welfare is maximised for all. about adponing a managerial egosit principel
• utilitariansim in markeing about maximising the benefits of a certainaction for the largest possible number of people, mRKETING CAN BE ARGUES TO BE UTLITITATIAN SINCE IT IS OFTEN CONCERNED WITH SATISFYING THE CONUMER NEEDS AND WANT AT A MARKET LEVEL
• B2B MARKETING concearns the offerings bought and sold between organisations.
• what happends currenly in the b2b markeing industry their products have been servitalised meaning that they are hired out/leased instead of selling them
• a trend in marketing sales is increaisnly about process rather than a series of separate transfactions, much more relational than before and now invloves close links between sales and operations especiallt since sales are more linked to information gathering, processing and interpretation
• key in b2b mareking b2b mareking is bout manining relaionships between organisations and the organsiation's repressenatives
• what is b2b markeitng? b2b suppliers need to manage their relationships with direct customers and the customers' customers, thus suppliers wishes to learn about the ustomers' customer and their preferances as this is where demand is derived
• b2b vs consumer mareking organsiational buyers do not consume the offerings themselves and the marekts are larger than the cosnumer markets. buisness marekts consits of many upes and sixes of orgnaisations
• what are the key charactertistics of buisnes marekts 1. the nature of demand 2. the buying process 3. international dimensions 4. buyer-seller relationships
• describe the nature of demand there are 3 key aspects of demand in buisness markets: 1 derivation (demand is ultimatly dervied from consumers) 2. variance (demand is variable since consumer preferances and behvaiour changes) 3. elasiricity (b2b is more inelsastic than consumer markets, meaning that if suppliers raise prices, manufactuers will try to aborb the increase into their own cost sturcutees to avoid leddting customers down in short terms)
• describe the buinging process in b2b markets reflect the high financial value associated with b2b transactions, the product ocmpelxity, the high order value and the nature of risk and ucnertainty. this has resulted in organsiations devloping specific buying process with decision making units, buy classes and buy phases
• describe the international dimentions of b2b marekting b2b mareketing is easier to do internaitonally compared to consumer markets since the needs of businesses are more similar around the world than consumers. consumers preferances and tast vary more. also b2b organisations have a low variaty of product functionality and performance, and with trading associations agreeing on standards relating to content and performance, the buying and selling of offerings becomes a simplier process and the trading enviorment can be well regulated and controlled.
• describe tbuyer-seller relaitonships in b2b marketing in consumer markets, there is a relativly low percived balue of offerings and the nature of the marekt is cometative and thus product subsititon is easier and it is more difficult to define the relationships between manufacutrers and consumers. in b2b marketing the internation between buyer, sellers etc is of major significanace and the devlopment and maintiance of relationships between buying and selling organisations is important for success. Interpdendence, collaboration and partnership in development, suppku and support of procut and serivces is considerd a core part of b2b mareking.
• what is meant by embedded ties? part of b2b buyer seller relationships and is about how strong relationships between organisaions helps imporve relational and buisness performance outcomes, since they facilitate the transfer of complex, sensititve and even tacit knowledge beteen parters ad imporve innovations.
• b2b organisations can be commercial (distribution, original equiptment manufacutrers, users and retailers), govermental, insutions
• what types of goods are key in b2b markets input goods, equitment goods and supply goods
• key q for organisations to make or outsource
• what is obb organisational buying behaviour. the decision making process by which formal organisations establish the need for pushased products and services and identify, evalutate and hoose among alternive brands and suppliers. it can be seen as the exercise of muddeling though the buyong process rather than working though a sell palnned, goal orienteted process
• 3 key issues obb concearns 1. the functions and processes that buyers move though when purcchasing products for use in buisness markets 2. strategy, where pruchasing is designed to assist vlaue creation and competative advanatge and to unfluence suoply chain activites, 3. the network of relationships that organsiatins belong to when prushaing
• what is promise management a perspecctive on b2b markeing regarding customers expectations and is rooted in the vlaue-creation process. about how firms are involved in developing and delivering promises, promsies are realised only when an offering is consumer by customers
• describe decision making units dmu is the group of people invovled in the purchasineing of offerings and contribute to the deicsion making process
• charactersitics of decision making units initiatiors start the process by requesting an item, users use the product when acquired, infleucers esablished techncial specifications for the proposed pruchases and supporta evaluation of alt suppliers offerings. deciders make the final purscahasing deicsion. buyers . gatekeepters
• what buyclasses buyclasses are different typer of buying situations. there are 3 main ones: new buy, modified rebuy and rebuy.
• new task first time buying situations. high risk due to little collective experiance of the offering or siuppliers, solution pruchased is comple, large dmu group, lot of information is required by partiipants, long time period required for information to be assimilated and decisons to be made
• modfied rebuy purchased before thus reducing uncerttiaty, coertain modfications may be requiested for future purchases. fewer peole than in neew task
• rebuy prushasing on routine basis, no other peole invovled ontil supplier poentially offer better. costs can be reduced, time redirected and relaitonships stronger
• buyphases different phases in which organisations makes certian purschasing decisons. are the following: need/prodblem recongitions, product specification, supplier and proposition seach, evaluation of proposals, suppliers selections, evaluation
• what is key with product specification buyphase if the product specification step is done well ie infleuncers and users provide a general funcitonal descirption or detailed analysis, the supplier seach is narrowed which willsave the organisationäs cost associated with evaluation propr to final decision.
• what are the 2 main issues in supplier and propostion seach 1. will the soultion match the specification and the required performance standards? 2. qill the ponetnial supplier meet the other organisational requirements?
• evaluation pf proposals and networks if a poteial supplier is part of the network, little reach and review time needed, if a supplier not part of network, a review may be necessary to detemine if appropirate and potenial for long-term relationship
• supplier selection stage dmu often does a supplier analysis and used different decision critera.
• supplier range if wide then you maintian a range of soruces, negative is that it fails to drive costs as low as possible ie no bulk discounts but little risk and smal investment. if you go with single source supplier then all purchases are made from a single source unitl circumstances chanhe, this facilitates long-term relationships and help build wuality and can help both achive their goasl
• buygrids shows the relationship between buyphases and buy classes and highlights the need to focus on buying situations rather than the offering
• pro of buyer seller relationhsips Business performance improves when organisations adopt a more collaborative approach to purchasing and account management → benefits both buyer and seller
• what are the 3 main stratigic issues related to b2b prushasing 1. make or buy decision 2. joint value creation (relationship benefits) 3. the degree to which the ruchasing function is integrated into the organsiation
• 6 pricniplal strtagies organisations ma use price minimiser, barginer, clockweiser, adpotor, projector, updator
• price minimisers Buyer increases their efficiency seeking the lowest priced offering. The buyer actively promotes competition among several potential suppliers
• barginer buyer achiverd operational effiecny thouhg long term collaboration with selected supplier
• clockwieser network relaitonships that functions predicably and precisly and operate like clockwork, goal is strict effiency that is achibed though the integration of production-based integrated control systems and it and the careful coordination of vlaue enhancing activites undertaken bu each supply network partner
• adaptor focus is on adapting tha manufacturing processes between exchanging parties. arise during pruchase of one major offering, where the seller is required to accomodate its offering to the buyer's particular needs and offer after sales maitnatace cervices
• the projector buyer and seller partnets in collaborative deevleopment projects.
• updator collaboration in r&D
• customer portfolio matrix development each compmay has a protfolio of customers and many companies wanrs to reduce thei customer numbers to increase efficency and profitability. by doing a pareto analysis you can determine the sales of a customer as a percentage of total sales to show which consumers you earn the most from.
• customer portfolio matrix 2 dimentions: relationship dimension and customer attractiveness. 4 sectors, a, b, c, d
• what are the 4 types of customers according to thecustomer portfoliio account A- must have customers, B- good to have customers, C need to have customers, D do not need customers.
• how should you allocate reaosucesed according to customer portfolio matrix A invest all, B allocate reasourcers selectivly, C maintain reasources, D reduce reouces
• what are the 5 main characteriscs of services 1. intagiblity, 2 perishability 3. variability 4, inseprarabiltliy, 5 lack of ownership
• intagibility since services are intagible they lack some important pruchsing cues unlike products which has to be subsititued for customers to reduce uncertainty. There are 2 types of cues: intrintic cues and extrintic cues.
• perishability of services services cannot be stored. if predicatble demand, service managers can vary leel of service capacity. if unpredictable demand, managers are challanhed to provide varying levels of service capacity at short notice
• what is meant by variablity of services it means that services are produced and consumet at the same time thus it is dififuclt to dtandertise and deliver at a certain standard
• what is meant by inseparability of services means that the service delivery cannot be separated or split out of serivce provison of service consumptions
• lack of ownership services cannot be owned
• service types services can be split into high.contact, medium and low services
• what are the main pricniples of relationship marketing it is long term, meaning a form of loyalty by the buyer and the seller is central. price can be replaced by customer serivce and quality. The focus becomes to achibe both parties gols in a mutually rewarding way and not at the expense of the other.
• what is the focus in relationship marketing on repeating purchases from the same customers, high customer retention is correlated with a imporvment in profitability
• what are the 3 stepts in customer relationstions acqustion, development and retention
• describe the relationship life cycle it begins with the buyers en sellers seaching for a match and once such as been found there is a period of setteling in during which parties seek out information before transaction, once a transaction occurs the seller and buyer start to become more familirat and relationship forms. then moves on to development, seller enourages buyers to purchase more or try new products etc, the number and value of transaction increases as buyer and seller begin to understamnd each other's requirements and goals in greater detail. Retention. relationship has stablised and there is more trust and commitment . then decline
• the intensity of a relationship there are 3 indicators: psychological, behavioural and economic which indicate the intensity of rhe relationship. may vary throughout time
• example of psychological indicators relationship quality, trust, comittement
• behvaioual indicators purchasing behvaiour, information behvaiour, integration behaviour and communciation behvaiour
• economic idnicators customer profit contribution, customer lifetime vlaue
• types of loyatly emotonal loyalty, price loyalty, incentivesed loyalty, monoply loaylty
• trust trust involves judgements about reliability and integratity and has 3 major outcomes: 1. satisfaction 2 reduced percived risk 3 continuity
• the commitment trust model about how the greater the anticipated losses though termination of a relationship leads to greater comittemnt expressed by the exchange partners.
• what are the 4 main elements of the stratigic context? 1. The organisation and its reaosurces, skills and capabilitities 2. the parget customers 3. the competiotrs 4. the external enviorment
• why does the stretgici context matter? by understanding and managing the 4 elements, yuou can develop a coherent marketing plan and increase the liklihood for sucess.
• SWOT strengths (something an organisation is better at than the competion or gives them crediability and market advatnage) Weaknesses (somehing an orgnaisation lacks or performs in an inferior way in comparision with the competion) Opportunities (something that provides the potenial to advance the organsiation by developung and satisfying an unfulfilled external market need) threats (seomthing that is an external consideration that at some thime in the fututre may destablise and/or reduce the potenial performace of the organsiation)
• why do a swot? since it helps identify an organisations stratigic postions. it highlights the need for a stratefy to produce a stong fit between internal capability(SW) and the external situation (OT)
• important prinicples in swot focuses, undertaken by teams of executives, customer oriented, externally focused for the enviromental analysis
• that are the five main stratigic objectives 1. niche, 2 hold 3 harvest 4 divest 5 growth
• describe the niche objectives sutiable when firms operate in a marekt dominated by a major competiotor and financial reasoruces are limited, arise when it it is not economic for leading competiors to enter this segment given the special needs these customers hae and the leading firm is unitneterserd in devoting reaosuces to them. In order to be sucessful in a niche market a firms needs a strong diffrentated offering together with high levels of service
• descirbe hold objectives hold objective are designed to prevent and fend off attack from agressive competiotrs ex from new enterants and rivals, Market leadership is importnat, it drices potive cash flows, increases bargining strenghts with suppliers and enhances image and reputation
• decribe harvest objectives Sutiable in mature markets as firms or offerings begin to decline. the goal is to macimise short term profits and stimulate postive cash flows. by stop investing in market communications and R&D cash is generated which can be used elsewhere
• divest objectives Sutiable when offerings incure losses and generate negative cashflows. Disinvestmen can follow on natrually from a harveting strategy, Low shar eofferings in deliving markets are prime examples. Makes companies more profitable if they reinvset the return in new profitable ventures. The objective can either be done though selling of the offering or by withdrawing form the market
• growth objectives most organisations have this as there objective, but has to be selected depning on the gwroth goal correct for your specific case.
• Ansoff grwoth matrix The matrix is based on the idea that growth is alliened with product-market relationship. Based on wheater new or esablished products in new or established markets. Results in 4 markeing stratgies. 1. Market peneration (EmEp) 2. Product developpment (EmNp) 3. Market development (NmEp) 4. Diversifcation (EmEp)
• describe the 4 ansoff growth stragies briefly Market penetration is about pushing existing offerings to existing markets thouhg ex promotional effors, price discouning etc. Product development to find a even more sutiable product for the market. Market development concearns offeringing existing offerings to new markets leading the organisation to tap into unserved demand. Diverisfication brings new value-chain acigivies since the firm is operating with new offerings and in new markets and can be horisontal (a frims takes over from competior) or vertical (upward a firm takes over a supplier, or downward ie a firm takes over a customer)
• decribe the stratigic market action model conceatns the markeing strategy acgiives and how to identify how to ralsie the set goals and putting the plan into action.
• What is comeptative advatage the benefit of a unique mvalue creating strategy no other competiors has along with the inability to duplicate the benefits of the stragy
• how to achive a competative advatage it is achieved when an organisation enjoys a significant edge over its competiotrs by ex attracting buyers, coping with competative forces better, being the most kwon in a segment, m producing the best quality, displaying attributes other offerings do not have, lowest price, best service etc. In order for it to be ssutaible the customer must percive a postive difference between the offering of the company and the competiotrs, the percived difference results from the company's relativly greater capability and the percived difference persists for a reasonable period of time
• Porters genertic stragies Strategies that can help comapnies achieve a competative advatae
• what are proters 3 generic stragies? cost leadership, diffenatiaon, and focus
• Describe cost leadership cost leadership is a strtegy that focuses on having the lowest cost stucture so that a organisaion can offer standard offerings at a accpetable level of quality while generating more than avrage profit margins. It is not about charging the lowest price, it is about how the organisation exploits its cost/price ratio to create a competative advantage. If they reinvest profits they are more likly to achive long-run suporiority
• Descibe diffrentation Requires that all value-chain activities are focused to the creation of offerings vlaues bu and which satsify the needs of sements (particularly broad segemtns). By identifying acustomer group with own need set, an offering is diffrentiatied from its competiotrs. Customers are willing to pay a premiue fro offerings that deliver superior vlaue. offerings can be diffrentiated using diffrent crieteria, each marketing mix element is capable of providig the means for succesful long-term diffrentiation. It may lead to greater brand loyalty
• decribe focus generic strategy focus strategies are used to seek gaps in broad market segments or to find gaps in the compatiors ranges ie they hel to seek out unfulified market needs. It involves concentrating all vlaue-chainf activies on a narrow range of offerings. Can be oriented towards low vost ie lowet cost strucutre or focused fowards diffrentation ie supplying a diffrentiated offering for a narrow target sgement willinf to pay a higher price. Both orientation is within a particular narrow segment however
• What is competative postitioning? it is the ability to make your company stand out from its competitors
• what are the 4 competing postitions? 1 market leader 2 market challanger 3 market follower 4. market nicher
• characteristics and prime stratgies of a market leader The market leader has the largest share of the market. The market leader's products and brand can shape the nature of competion in the market and set out standards relating to price, quality speed of inovation, communciation and influence ditricution channels. The stratigies is to a) attack the market by creating new uses and/or users and increase frequency of use b) defiend the postion thouhg innovation, larger ranger and price cutting and discounts
• characteristics and prime stratgies of a market challanger products that aspire the leadership position and may be numebr 2, 3 or 4 in the market. They activly seek market share and use agressive stragies to take share from all of their rivals. The strtegies are to a) attack the market leader (though pricing, attibutes on offerings, adversting) and b) attack rivals (special offers and limited editions, maintain status que etc)
• characteristics and prime stratgies of a market follower have a low market share and do not have the reasources to be a serour challanger, they pose no threat and often use me too straffies when the leader takrs an intitiactive. The strtegy is to avoid hostile attacks on rivals, copy the market leader and provide high-quality products that are diffrentiaties and focus on diffrentiation and profits, not market share
• characteristics and prime stratgies of a market nicher Nichers are spealicaisets and select small sgements within the target markets that larger compa ies fail to explot and develop specialised marketing mixes designed to meet the needs of their customers. The strtegy is to provide high level of specialisation and provide a tight fit between market needs and the organisation's reasoruces.
• describe an altenrative perspective on the stratigic perspective cooperating.
• Why cooperate financial risks can be shared and it can procide opportunities to add vlaue by means of brand diffrentiation and the devlopment of sustable competative advatage
• collaboration and networks Networks benefit the participants though shared knwoledge about offerings, markets and competiotrs. they lead to improvements in propostion and brand perormanace and may help to develop a stronger market postion, anabeling a more efficent use of reaosuces, and can thus be a unique form of diffrentiation of significant claue to customers.
• Describe how cooperative working may lead to competative advantage competiotrs not party to the collaboration are usually unable to detemine how perfomrnace is achibed though these alliances, and, even if they could, it is exceedingly difficult to replicate since they are unlikley to have the necessary reaosurces, nor do they have the same investment history
• give an expample of a allaince at a markeing level ex between key distributators and retailers to control the distribution channel. Relationships with prominent or geografically importnat delaers provide opportunities for exclusive distrbution toreach tarhet markets.
• relationships and consumers marketing stregies designed to retain customers, often use loyalty schemes and customer rentention programs. which are supported by database management and markeing facilities. Relationships can also devlop though branding. soem consumers devlop a strong afficluy with a brand to the extent thaey ant to share their relationship with others and take opentlu about their postive brand experiance. ex used generated content.
• why are relationships with suppliers importnat cine comeptative advatges cna be devloped though cost reduction, speed to marekt and product diffrentiation
• What is marketing reseach? about understinding how to make specific marketing strategy decisions. AIms to provide management with sufficent insight to make informed decisions. CHaracterised for being systematic and well documated and planned in advance
• what is market reasech undertaken to determine the strucutal characterisics of the industry ex demand, market share, market columes, customer characterisics and segmentation. it involves using statisfical and analytical methods to gain insight or support deicison making
• customer insight kowledge about the customer that is valuable to the firm- generated based on knowledge from different reasech acitivies.
• Describe the customer insight process customer insight is derived by combining knwoeldge from many sources such as industry reports, sales data, competatice integgigence, CRM dara, employee feedback and social media analysis. Insights can come from both high-tech sources such as big data and quantative reasech and low tech soruces such as employee feedback. the insight is valueble it it is rare, difficult to imitate, and can be used to make management decisions.
• How can organsiations use insights effectivly? CEOs and CMO should provide support for the insight proces, ask broad questions, not try to guess the answers to stratigic problems, demand evidance based answers and provide the necessary reaosurces. REseachers hould focus on gaining a casual understanding and solving problems rather than just reporting attitutes. Inshigh managers should challanges asusmptions and analysie all relevant data to extract insights, even if it means challanging the obvious solutions.
• What are the steps in the marketing reseach process? 1. define the problem(often vauge and requires futute exploration) 2. decide the reaseach plan 3. undertake the data collection 4. undertake the data analysis/interpretation 5. write the report and deliver the presentation
• What are the objective of market reasech there are 3 objectives: explanatory reasech ( when littlle is known about the problem and new concepts needs to be developed) Descriptive reasech (focus on decribing variables like matket characterisings or spending patterns) Casual reasech (used to determine wheater one variable cuases an effect in another variable and requires experminaental studies)
• What are the soruces of marketing reseach? secondary and primary reseach. Secondary reaseach involvoes gaining acces to the reuslts of previour resewach projects, it is second-hand data collected for someone elses purposes. Primary reseach involves collecting data for a partuclurar project for the first time. It is undertaken to cover gaps in the companuyäs knowledge once all avible secondary data has been evaluated.
• what is the methodology avaible for marekting reseach qualitative resech, quantiative reseach, industry trends
• Define the terms ‘market research’, ‘marketing research’, and ‘customer insight’. Market research is research undertaken about markets (for example customers, channels, and competitors), whilst marketing research is research undertaken to understand the efficacy of marketing activities (for example pricing, supply chain management policies). Customer insight derives from knowledge about customers, which can be turned into an organizational strength.
• Describe the customer insight process and the role of marketing research within it. Understanding customers is at the core of the marketing. Customer insight is typically derived from fusing knowledge generated from a range of sources, including industry reports, sales force data, competitive intelligence, CRM data, employee feedback, social media analysis data, and managerial intuition. A customer insight is of value if it is rare, difficult to imitate, and of potential use in formulating management decisions.
• Explain the role of marketing research and list the range of possible research approaches. Marketing research plays an important role in the decision-making process and contributes through ad hoc studies, as well as continuous data collection, through industry reports, and from secondary data sources, as well as through competitive intelligence either commissioned through agencies or conducted internally, with data gathered informally through sales forces, customers, and suppliers. What methodology is used depends on the type of research problem (exploratory, descriptive, causal); the availability of data (primary or secondary sources); and the type of insight sought (qualitative or quantitative).
• Define the term ‘big data’ and describe its role in marketing. Big data can be defined as the systematic gathering and interpretation of high-volume, high-velocity, and/or high-variety information using cost-effective innovative forms of information processing to enable enhanced insight, decision-making, and process automation. Big data thus refers to a more comprehensive set of data than that traditionally used to provide marketing information and customer insights.
• What are marketing metrics? Marketing metrics are used to measure a marketing strategy's effectiveness. The implementation of any marekting plan is incomplete without methods to control and evaluate its performance. KPIs(Key performance indicators) are a set of measureses used to determine and compar an organisation's achievements in terms of meeting its stratigic and operational goals
• what are the 10 key marketing performance metrics and what are their problems? Profit (problem the link with the markeinf aciticty and profit is not always clear), Sales (for high-vlaume turnover products the profit may be disproprtionaly low thus it is more accurate to look at the profit than sales, also selling large quanities may hide the fact that an offering is being sold at unprofitable levels), operating margin ie return on sales (detemines the profit margin but not always indicate ow much the customer is acutally willing to pay), awarness (useful wheter markcom activity is having impact but people being aware of a brand does not necessarily increase sales), Market share (useful for detemrining a comany's performace within the marketplace and thus gives a indication of how compatetice a comapny is, problem is although large market share, the company may not be profitable), number of new products (measures a comany' ability to innovate, problem is devloping new offerings without measuring impact on sales of existing offerings is problematic and may cuase customer confusion), relative price (detemrined by a measuing the price of the compayäs offeing against that of the offering of the market leading companu or the nearset competirors, problem is that a company may obtain only a proportion of the tot revenue possible if the price it charges is too high, a higher relative price may lead to samller market shar eif customers do not vlaue the companyäs offering more than thos eof its competiors), customer satsifaction (problem is that businesses may spend too mich time satisfying customers in a non profitable manner reducing profitability), customer advocay (NPD, but not sufficent if used on its own) distribution
• Describe the stp process the method by which whole markets are divided into different segemnts. It helps detemrine the msot attractive market segemnts, uncover opportunities for new products and services, esablish effective postioning andcommunication strtegies, and allocate limited resources to support key markeing objectives. In short market segmentation invloves identifying similar groups of customers given the market information and reseach. The target process is about identifying which groups of customers to aim for, and and postioning is about creating a concept to appeal to the target market
• Describe market segmentation market sgementation is the division of a mass market into disctinct and idenfitable groups or segments, each which is defined by common charactericis. and needs, and displays siilar reposnes to amrketing actions. the purpose of sgementation is to ensure that the elements of the marketing mix meet the needs of the differnet customer groups. Companies cnanot produce all the required offerings for everone due to finite resoruces, by providing selcted offerings for selected groups of people most of the time it enables the most effective use of na organisation''s scarce resouces.
• what is the diffeenrce between market segmentation and product diffrentiation a product dffrentiation strategy involves high, ighing a products attributes and features to empahsse the differneces between it, and hence disntighusg it from those of competiors or other product offerings. The firm focuses first on the product then sees which apart of the market it reponds to. A market segmentation strtagy requires a focus on partuclar sgements who share similar characterisics and needs. the firm focuses on first identifying needs of specific segments then devlop a product sutiable.
• descirbe the process of market segmentation there are 2 primary approaches to market sgementation the breakdown method and the build up method. The breakdown method identifies groups with diffeeneces whilst the build up method takes on a more customer-orientated approach and starts with idnivifual customers and seeks to identfy similarities among them.
• what are the segmentation bases in cosnumer markets? There are the profile criteria (who are my customers and where are they), the behvaioural criteria (when, where and how do my cistomers behave) and psychologiacl criteria (why do my customer bhevae the way they do)
• what are the considerations for segmentation critera there is a trade off between costs and ease of measurement and the predicability of cosnumer choice behvaiiour.
• what are the profile criteria determines who consumers are and where they are located. Demogrpathic methods may be used ex age, gender/gender identity, family size and life cycle, generation, income, occupation, education, ethnicity, nationality, religion, and social class. Or scoio-economics status ex income, houshold income, employment, net wortd. Geographics aslo useful since there may be a clear lociaional diffrences in tastes, consumption and preferances.
• Psychologiacal criteria Psychologiacal criteria invovles: lifesytle, peronslaity, perceptions, attitutes, motives and benefits sought.
• behavrioual criteria observing customers while they use products or services provide insights for developing new offerings and identifying new markets. Usage can help catagorising into high, medium and low users. This allows the development of service specifications or marketing mixes for each user group. There are 3 perspectives on consumer usage: 1. the social interaction perspective (focus on the cymbolic specigs of suage and soical meansing) 2. the experiental cosnumption perspective (focus on emptional and sensory exepriances) 3. the funcitonal utlalisation perspectives (asses the functional usage of products and thei attributes in different situations). Transaction and prucase is another critera. A lot of data can be clollected. Marketers use transactional data to identify their most profitable segments by analyzing the RFM (i.e., recency, frequency, and monetary value) value of purchases. Customers with the highest RFM value are the most profitable. Transactional data offers behavioral insights that provide purchasing trends. The last one is media usage.
• b2b segemntation involves identifying groups of present or potneial customers who share a common charactericis that affect their reposne to a supplier's marketing efforts. 2 main grpips of vairbales are organisational charcterics (exx sice, location and indstry type) and customer charactericiss (SMU strucutre, choice criteria, purchase distuation)
• DAMP damp can be used to make market segmentation effective. It consits of 4 criteria: disntinct, accesable, measurable and profitable
• how to evaluate segments? damp or use a rating system for different segment attractiveness facors ex market growth, profitablity, size, competative intensity and industry cycles. each factor is rated 1-10 and palced in catagories
• What are the 4 different targeting approaches 1. undiffrentiated marking 2. diffrentiated markeing 3. concentrated marketing 4. customised marketing
• Describe the undiffrentiated targeting approach it is used where there is no delination between segemnts and the market is viewed as one mass market with one markeing strategy for the entire market
• describe the diffrentated targeting approach it is used where there are several segments tat hare attractive for the firm. a markeing stratey is devleoped for each segment. there is a loss of economies of scale due to the reosuces required to meet the needs of many segments.
• describe the concentrated targeting strtegy also a niche marketing strategy. is used where there are only few segments is typicallt used bu small to medium firms with limited markeing budget or those that prefere an exclusive strategy towards the market.
• what is a customised targeting strategfy it involves developing a marketing strategy for each customer. used mostly in b2b.
• limitations of segmenation 1. The process approximates offerings to the needs of customer groups, rather than individuals. This can result in some customers' needs not being fully met. 2. It is unclear how market segmentation relates to competitive advantage. While product differentiation is important for competing with offerings, market segmentation does not always prioritise segmenting based on differentiation from competitors 3-
• postioning postioning is the means by which offerings are diffrentiated from one andother to give customers a reason to buy. it has 2 elementts. 1. attributes, the functionality and the capability that a brand offers 2. the way in which a brand is communciated and how customers pervice the brand relative to competing brands
• the positioning process it begins during the selection of the target markets (segments), Key is to identify the attributes considered to be important by consumers. by understanding what customers consider to be dieal standard of attributes and how the rate of attributes of each brand is in relation to the ideal leel and agaisnt other brands, it becomes possible to see how a brand attribues can be adapted and communciated to become more competative
• perceptual mapping the visual representation of each market. These ‘maps’ are then used to determine how various brands are perceived according to the key attributes that customers value. Can help to get overwive how competing products are percived which reveals strenghts and weaknesses that cna help management to make stratigic decisions aout how to diffrentiate. the closer offerings/brand clusterd, the greater sdegree of competion.
• CD maps the map links consumers percpetions about brand with their buisness performance. Brands are postioned in quadrants according to how customers core them on 2 dimentions: dentrality and distntiveness. Centrality is concearned with the extent to which a brand is most repressentative of their catagory and distinctivness refers to a brand's individuality and the extent to which it is postioned away from the direct compwtion. High disnticniveness makes it possible for brands to command higher prices
• which are the 4 brands of CD maps 1. Aspirational brands (highly diffrentiated + wide aappeal) 2. Mainstream brands (less diffrrentated but central) the first to come to mind when thinking about a catagory 3. Unconvential (highliy diffrentiated but less central) unique charactericis that seperare them 4. peripheral (little diffrentation and little centrality) seldom recalled and have to disntinghish them though low prices
• postioning in markcom undertsanding brand postioning is important to enhance a brand's performance by adjustingthe marketing communciations used to support it. Marcom, espceilaly advertising, can convey information about each attribute to modify customeräs brand perceptions. Brand can eitherr be funcitonallyy postioned (ie highligh features and benefits) or expressibly postioned (ie highlight benefits, heritage etc)
• Brand and postioning postioning is concearned with the process associated with creating and altering the perceptions consumers have about a firm's product or brands. ie brand postioning is not about a brands physciality rather it is about the plce the brand has in a consumer's mind. It is a stratigic acitivty used to diffrentate and distingush a brand so that a cosnumer not onlu rememebrs the brand but also understand the brand
• What are the 3 brand ps? Promises (promose to be knowns ie brand awarness), postioning (postiong the brand correctly in terms of brand assoications), Performance (delivers brand performance ie brand reposnse).
• define a brand the added value a product or service is granted in consumers minds when identified as different from other products.
• what attributes are brands constucted by? Intrinciic attributes (ie the functional charatcericis of a propostion ex shape, performance and capacity). intrincistc attributes if altered would directly change the propostion, whilst if an extrinic attribute is chnages do no not alter the material functioning and performance of the proposition ex brand name, marketing communciation, proce etc
• which attributes are helped for buyers to diffrentiates brands extrincic attributes help buyer distniugh one brand from another, since in certain catagories it is difficult for them to make decisions based on the intrinciitc attributes only
• what are the 3 main types of brands manufactuer, distributor and generic brands
• Manufacturer brands manufacutrers try to create brand recognition an name recall by marketing communications with end users. the goal is to help customer identify the producer of a particular brand at the point of purchase.
• distributor brands refers to the identities and images developed bu the wholesalers, distributors, dealers and retailers who make up the marketing channel. this brand strategy can offer advatages to reatilers who can earn a higher margin than they can with manufacurers branded goods and at the same time develop strong store images.
• generic brands are sold without promotional materials or any means of identifying the company, since it is not necessary to pay for pormotional support these brands are sold at prices substailly below the price on normal brnads
• what are the 3 non commercial brands idea brand, people brands and place brands
• idea brands ex meetoo
• person brands alswo called celebery brands and is about a well known personas provide equity crednenitals to eslabish and extend product brands. they are difficult to create since a person have several charctericiscs which can lead to inconsisency and imbalance of personal branfs
• place brands a network of associations in the consumers mind based on different expressions of a place embodied though the aims, communciations, values and general culture of the place stakeholders and overall place design
• why should you brand brands is an opportunity for conusmers and organsiation to buy and sell products and serivces esaily, more efficently and relativly quickly. COnsumers like brands beacuse they: help people to identify their prefered products, reduce levels of percived risk and thus improve the quality of the shopping experiance, help people to gauge the quality of the product, service or experiance, reduce the amount of time that must be spent making propostion based decisions and hence decrease the time that must be spent shopping, provide pschylogical reasurance or reward, especially for offerings bough on a occaisional bases and inform consumers abouth the source of an offering
• what are the percived risks when buying offerings? fianncial risks, social risks and funcitonal risks
• why do manufacurers and retailers use brands since they can increase the vlaue of companies, enables premium pricing, help to diffrentiate a proposition from competative offerings, can deter competiotrs from entering the market, encourage cross selling to other brands, help to develop customer trust and loyalty, help in the development and use of integrated marketing communciations, contribute to corporate identity programs and provide legal protection
• how to build brands In order to build a brand you have to: enable identification and diffrentiation, maintain consiency and communicate the brand to customers and other markeing channel audiances. To be sucessful in brand building, you have to view it as a process ie 1. enable customers to identify with the brand and help them to make assoications with a specific product class or customer need 2. esablish what the brand means by linking various tangible and intangible brand associations 3. encourage customer repsonses based around brand.relating judgement and feelings 4. foster an active relaitonship between customers and the brand.
• what are the 2 important things that must be adressed in brand building? both the a) funcitonal issues and b) emotions and feelings towards the brand
• Explain the brand pyramid 1. The firsts tep in building a brand is identification. You have to as a brand decide who are you and commmunciate this to your audiances in order to create saliance and a deep, broad brand awarness. 2. the second step is meaning and refers to the perfromance and imagary assoications with the brand, which can be both similar to competotrs (ponts of paroy) and can set the brand apart (poitns of difference). The third step is about reponse and is about the judgements and feelings customers have towards a brand. in order to be sucessful these has to be postive and accesable reactions. the foruth level is resoance which is about the reslationship between the brand and the customerswhich should be intense ad active loaylty.
• brand saliance how easily and often do customers think of the brand when thinking about brands in the induytry or when shopping?
• brand performance how well do customers vbelive the brand is performing?
• brand imagery describes the extrincic properities of the prodice and the level to which these satisfy customers pshcyogical or social needs
• brand judgements focus on custonters own perconal opinions and evaluaiions about the product
• brand feelings refers to customers emotional reposnses and reactions with repsect to the brand when prompted by communciations, by friends or when using the product
• brand reosnace the nature of the relationship that customers have with th brand and the extent to which they feel loyal to the brand. occurs when mareketrs create proper salicane in terms of breath and depth of warness and points of parity and differnce need to be esablished leading to postive jdugements and feelings that can be made to appeal to the head and the heart
• What to think of when deciding on a brand name 1. easy to recall, speak and spell 2. distintive 3.indicate of the benefits and charctertics of the main offerings 4. meaningful to customer 5. consistent with the branding policies 5. capable of registration and protection
• brand meanings Brand meanings is about the brand associations and is key to diffrentiating it from competotrs. Brand image, percived quality and brand attitued are the main dimensions of brand assoications. Associations are made up of the phsycial and non-physical attributes and benefits aligned with attitueds to create a brand image in the mind of the consumer.
• brand personalities Though brand personalisties, brands can postion themeselves using emotional attriutes and hence develope stronger consumer-brand relationships. These assoications enable cosnumers to contruct a meaning assoicated with a pariticular meaning assoicated with a brand.
• what are the brand perosnality dimensions sincerity, exitment, competance, sophicitacation and ruggedness.
• brand response the strnefght of a brand lies in the reactions of consumers to the brand in relation to its competion, these reactions can be both cognatice (judgements) and affective (feelings) and will affect behaviours.
• Preference stragies are based on competion for brand preferance, it is about my brand is better than yours and requires making sure your brand is prefered. It is achived though innovations that lead to claims of the type faster, cheaper, better ie a more attractive and relaible or less costlu brand promise. competiotrs reposne is quick to theses. These strtegies have little impact and works if the goal is customer rentenion, but may lead to price and margin eroision and a decline in relevance.
• Relevance strategies alt to preference strategies. Key is to create offerings that have a particular charcterics that is so attractive to a segment that any competing offering that does not have this chanatersicis will be rejected. Ie they are must haves. COmpeting though brand relevance can generate real growth and is far more effective than preferance strtegies, it requires innovations that lead to creation of new catagories or subcatagories
• What are the 3 core brand stragies individual, fmaily and corporate
• Descibe individual branding requires each product offered by an organsiation to be branded independently of all others. Advatages is that it is easy to target specific segments and enter new markets.Also if a brand fials or becomes subject to negative media attnetion the other brands will not be damaged. However there is a high financial costs since each brand requires own marketit communication.
• descibe family branding fmaily branding requires all the product use the organisations name either totaly or partly. The advatgaes is that customer trust will devleop across all brands. Also pomotional investments need not be as high as for individual brands since there will be a halo effcet
• descibe corporate branding it means that you adop a single umbrella brand based on the name of the organisations which is used at all locations and is a way of identifying the brand and providing a form of consistent diffrentiation and form of recontion. The advatages is that iinvestments are limited to one brand whoerver the risk is similar to that of fmaily branding, in that damage to one offering or operaitonal area can cause problesms across the organsiation
• Why sector brand brands work in different ways according to the enviroment thus the imprtance of brands varies across countries and rpoduct catagoories.
• Service brands important dye to the intqgible nature of services. brands convey information about the standard of service and seeks to achive 2 main goals: 1, reduce uncertainty asosicated with the purchase of services 2. reduce the amount of time people spend seaching for a particular service especially when they are unfamilliar with a particular market or catagory. Service brands makes the intagible more tangible by relating to some of the core benefits a brand offers. Can be done ex though physcial facilities. The emotional dimensions is significant
• branding in b2b similar to benefits in consumer markets. There are some specific b2b contect branding benefits: funcitonal, emotional, self-expressive, relational. To dvelop buisness brands, 3 core elements need to be manages: 1. symbolic devices 2. communciation 3. behavuior. Brand assoications are key.
• the branding mix 1. symbolic devices 2. communciation 3. behavuior. SYmbolism signals who an organisation are and what they stand form. COmmunciation neesds to be integrated around a central theme. Organisations must communcate targeting all stakeholder groups. Behaviour with each other and external stakeholders is important as alining these values is benefical.
• Internal branding employees are integral part due to their interactions. the grater the degree to which the staff velive and uphold the valuaes, mission and vision of the organsiation the more likley is it that the reputation and performanc gaols will be ahcived.
• global branding brands can be considerd in terms of the markets they operate in ie brand scope. Ex operating in local and domestic markets or in selected foreign markets or in a range of internaional markets. Organisations extend scope, then branding and markeing must adapt, thus global branding is about consiency of markeing stragies, ie a traNSFER OF THE SAME STRAGEY ACROSS ALL MARKETS.
• Proposition the term inlcudes an offeringäs tangibe and intagivle attributes related to not only phsical goods but also to serives, ideas, people, pleaces, experiances and mix of these.
• physcial nature of a propostion there is a spectrum between the pure product and the pure services, many offerings have intagible elemtns ex a warranty these intaigible aspects are referred to as product intaigibles.
• customer experiance strtegey it not based on the tangible or intagible attributes of brand, but refers to the memories and fantasies that individual retain as a result of their interaction with the offering
• 3 levels of a proposition 1. core propostion 2. emobied propostion 3. the augmented propostion
• core propostion consits of the core benefits. can be functional (what the offering enables you to do), emotional benefit (how the product or services makes you feel)
• the embodied propotion consits of the physcial good or delived serivce that provides the expected benefits. it consits of many facotrs for ex features and capabilities etc
• the augmented propostion consists of the embodies offering + other factors necessary to supposrd the pruchase any post-purchase activies ex credit, training, dleivery, gaurantees etc
• what happends when all levels integrated when these levels are integrated, they provide customers with a rationale for buying and continuning to buy
• classification of physical propsitions there are 2 ways of classifying physical offerings : 1. as consumer offerings or 2. b2b offerings .
• offerings consumers vs customers consumers buy offerings that satsify personal needs. customer buy industrial and business offerings
• consumer goods classified based on durablity. either durable goods that can be used repeatably and provide benefits everytime they are use, non-durable goods have a limited duration and often used only once
• durbale goods require purchaser to maintian high invovlement since there is a high percived risk in these decisions, thus consumers spend time, care and energy seaching, formulating and making the right deicison. markets should understand their patterns of behaviour, provide and make accesible suffiecent amount of appropritate iformation and ensure that there is the right tupe of service and support neccesary to meed the target market's needs.
• non durbale goods reflect low invovlement levels and buyer seldom concered what offering they buy. risk seen to be low and there is little incentive to shop around for best price, buyers tend to buy on basis of avaibality, price, havit or brand expericance.
• bhevaioural division of goods conveniance products, shopping products, speciality products and unsought products
• conveniance products non durable and minimum effort put into the buying decisions, consumers display a rountines reponse behavioyr for conveiance products since they are bough so frequently and are inexpensice. decisions are made on habit, if the usual brand is unaviable an alt brand is sleected or no brand. divided into staples, impulse and emergancy products.
• staple products avaoble almost everywhere and bough infrequently and habit
• impulse products consumers may not plan to buy and located close to tills
• emergancy products bough when necessary
• shopping products bough less frequently than conveniance. require an information seach. consumers makes time and give effort to planning these pruchases since the risk level is susbtail compared to conveiance. thus consumers visit many stors and use recomentations for price coaprions, product information and reviews. levels of brand loaylty are typically low. marketing should accomondate the limited problem-solving taking place. these products to not require mass disbution unlike conveniance products, instead they require a selective disbtribution strategy since consmers often want the specialists advice offered by retailers
• speciality products high risk purcases, expensive and bough infrequently. correespond to ectended problem-solving. people plan these pruchases carfeully and seach for a lot of information and are concearned only with a particular brand and in finding a way of gaining access to an outlet that can supplu it. many unique charactericis, meaning that there are few if any competotr offerings worth considering. mareking strtegies support speiclaity products by limiting the number of disbriution outlets. advertisment seeks to esbalish a strong brand name and values. few reatilersso high level of servie and presitage aorung the pruchase.
• unsought products refers to offering people do not normally anticipate buying nor di they ewant to buy. limited awarness of the brands in the market place and are motivated to find out about them only when a specific need arises ex repair for car
• buisness products bough on rational basiss to meet organsiational needs, bough to either enable organisational functions or they form a part of a wider offering supplied bu the organisation for resail . 6 main catagories: 1. equiptment goods 2. raw materials 3- semi finsihed goods 4. MRO 5. computer components 6. buisness services
• product line a disntict single product within a product line
• product line a group of closely related products, related though tehcnical, marketing or user considerations
• product mix the total number of products lines offerred by an organisation
• roduct line length the number of products avaible in a product line
• product line depth the number of variations avaible in a product line
• product mix width the number of product lines within a product mix
• product life cycles offerings move sequenctioally though a predetermined pattern of development. there are 5 disntict stages: development, introduction, growth, maurity and decline. sales and profits vary across the stages. speed of movement depends
• built in obsolescence electric good manufacurers are dleiberating shoretning product life cycles
• product life cyle and competion the competative condiditions depend on the cyle, thus different markeing strtegies relating to the offering and its distrbution, pricing and promiion needs to be devlped at particular times to maximise finaical returns.
• product cyles differences product calsses have the longest cylce since the mature statge often is extended as new variantes are developed. product forms tend to comply with the traditional cycle shape. brand cycles tent to be the shortest since they are subjcect to competative forces and sudden changes
• serivce dominant logic prdocuts alone not capable of meeting all customer's needs thus there is a need for a propostion with characterics of a service rather than a core product offering. Example selling bottled water as a physical product is really the offering of a thirst service
• what are the 2 main issues assoicated with the management of marketing channels 1. the design of the channel, its stucutre and activites 2. the relationship between channel mmebers
• channel design - 3 decisions? 1- the distirbution inentisity decision: the level of pruchase conveniance required by the differentsegments 2. the channel configuation decision: the number and type of intermediaries neccesary to dleiver the products at the optimum number of sales outlets 3. the multichannel decisions: the number of different types of channels to be used
• what are the 3 key considerations of designing a distribution channel? 1. economies recognises where costs are being incurred and profits being made in a channel to maximise our return on investment 2. coverage is baout maximising the offerin's avablity in the market for the customer 3. control refers to achieving optimum distirbution costs without losing decision-making authoiorty over the offeing ie how is it priced, promoted and delived in the distibution channel
• 3 main configurations 1. direct channels (sells direcly to end users with little involvement from other organisations)2. indirect channesl (uses intermediaries) 3. multichannel structures (combines both)
• direcrt channels -pros and cons pros: the producer maintains control over product and profitability, strong customer relaitonships can be build, ideal for products that require signfanct customisation, technical experise, or commitment from the producer.
• Improve effiecny in direct channel strucutre processing orders and distbuting offerings electronically and supporting physical distribution to customers
• indirect channel enables procuders to concentrate on the sjills andprocesses needed to make the offerings, and use one or more intemriedaries for distribution
• multichannel structure - pros and cons producer controls some channels and intermediaries control others. pros: increased reach, producer control, greater compaliance, optimised margins and impoved market insight. Cons: conflicts over profits sharing, confusion and alientation of customers
• channel intensity refers to the number and dispersion of outlets and en user can use to buy a particular offering. COncearns the level of conveiance customers esuppliers needed to provie to be competative. can be : intensive, selective or exclusive
• intensive distibution involves placing an offering in as many outlets as possible making it conveniant for consumers to purchase
• selective distrbution occurs when limited number of outlets and customers acticly seek out appropriate suppliers
• exc, usive distribution occurs when intermediaries are given exclusive rights to market an offering within a defiend terratory often for high presitge goods that require a lot of support
• Disintermediation a situation where market intermdieares are eliminated and manufacurers and buyers trade direclty.
• re-intermediation introduction of more intermediaries into a distribution channel
• managing relationships in the channel important since there always occurs conflicts between memebers. May occur on same iter or on different fies ie horisontal and vertical conflicts. to resolve these stratgies may be employeed depening on the corporate cuylturte, attitude towards risk and sense of power within.
• the price elasticity of demand important to understand demand. effected bu brand and catagory charctericis and general economic conditions. marketers must undestand if their offerings are elastic (senstiive) or inelastice (non sensitive) since it will help them to predict how price changes will affcet their sales
• the relationship betwen pricing and propostion costs costs should be a lot less that the price assigned to a proprtion
• propostion quality important when setting price, it is multifacteded ie it compromised of different funcitonal an non-fucnitonal needs and multi layerd ie it comprised degrees of satisfaction
• price and quality not ppostive correlation. more about the price and percived quality. it also depends on durables or non-durables. for durables higher priced are percived to be of higher quality whilst this relationship is weaker for non-durables
• inherent vlaue what you get is for it if it was resold
• value in exchange what you are prepared to pay for it
• prices comaprision prices are compared with internal referenace prices(price knowledge gained from experiance) and external references prices(what others tell us prices should be)
• a price perception formation pramework price perception formation is unfluenced by exposure to: referance prices, quality percpetions, brand awarness, brand loyalty, product familiarity, memory of prices and asysmetries of information. price perceptions will affect customers willingness to pay.
• what is willingness to pay is infleunced bu perception of fairness of the prices, latitude of price acceptance, magnitude, frequency of purchase, price presenation and advertising
• actual pricing behaviour is infleunced by purchase intention, contexual facotrs, promotions, perceptions of store quality, online or in store
• what is meant by price percpetions as a dynamic process one the purchase occurs there is a recalibration of the customers price perction since new pruchase experiances and new information provide the simulies for theat recalibration
• price counscoiusness mosts do not have good knowledge of prices, our expriance contributes to reference prices.
• price cueres help estiamted referance prices. Ex seasonality, quality and sice, sale saigns, odd-number pricing, purchasing context, price bundeling and rebates.
• sale signs Indicate a bargin, seduces customer to buy and suggests limited avaiabity, uses scarcity as perusaice power
• odd number pricing increases demand- set as 9 --> feels as. brargin
• purchase CONTEXT ABOUT OUR PERCEPTION OF RISK. Increases if we only cosnider it at the point of purchased.
• price anchoring shows that if we are exposed to higher prices first our referance prices are achorded at a thigher levels, thus redesign cataloges to include items in the earlier pagers
• price bunderlind to make the price look more reasonable. pure price budneling: a pricing strtegy where businesses sell particular items exclusivly with one antoher. Mixed price bundeling: a pricing strtegy where businesses sell particular items with one another. the difference is that mixed bundeling allows the consumer to purchase the items seperatly while pure does not.
• 4 main pricing approaches 1. the cost oriented approach (prices based on costs) 2. demand oriented approach (prices are set based on demand) 3. the comeptiotr orietned approach (prices are set based on comeptiors prices) 4. the vlaue oritented approach (prices are based on what customers belive to offer vlaue)
• the cost oriented approach used in service, b2b and procut context. offering sold at highest price possible, regardless of prefereances or costs. if price highe nough to cover costs, firm makes a profit. if not, sleler finds a way of increasing price or lower costs . considers the tot costs of a propotioning in pricing, do not take into account non-cost facotrs ex brand
• the demand oriented approach prices are set depening on how much customers are willing to pay. common in service, less in b2b and product. if used they need to be wary of overcharing their customers espiaclly if the customers request are urgent. it prices are set at unfair level as by the customer viewed, the firm may be liable for claims of price gouging.
• the competitor oriented approach use competiotrs prices by comparing the their own rates agaisnt going rates. also called me too pricing. used in b2b services and consumer marketing contracts. note that it is illeagal to set prices together. the advtages of this is that when your prices are lowe than competion then customers are more likley to pruchase from you, provided they known that your pirces are lower. price guarantee shcemes and provide customers the insight of knwon that the price paid is compatative, but such schemes may be expensicve to operate since it requires constant monitoring of the full range of comeptiortrs prices and strong focus on cost cotnrol.
• the value oriented approach pricing approached with customers considerations in mind. prices are set on the basis of price perceotion of a pecific product or service rather than the other basis. Nowadays there are a lot of reaosurces and consumers have a lot of the things they need, they are more intrested in ibtianing vlaue from the offerings they buer. value pricing makes the pricing process begin with the customer detemining what vlaue they derive from the offering then determining price, rather than the opposite approach used in cost ortietnation.
• what are the 4 main generic pricing strategies penetration pricing, price skimming, economy pricing, premium pricing
• premium pricing focus on pricing to refelct the postions marketplace disnticiveness(propostion existing + price high)
• penetration pricing refers to setting a price low relative the competion to gain a market share (new products + low prices)
• economy pricing setting bare minimum pricing to attract price senitive customers
• price skimming require price to be set high initally then lowered later. ofen used for the lauch of new offerings
• launch pricing penetration pricing or price skimming strategies. penetration price: charge lowe price to generate large volume of sales and recoup their R&D investments . Price skimming, they charge an intially high price and then reduce the price ober time, recouping the costs of the r&D investments from sales to the group of customers who are prepared to pay the higher price hence price skimming the market.
• who is suitable from price skimming high tech or offerings with a lot of r&D investment. approapoate under following circumstacnes: companies must recover their r&>d investments fast, demand is forecasted to be non-price sensitive, unkonw elasticity of demand, high barriariers to entry the market, few economies of scale or experiance, rpoduce life cycles expected to be short
• penetration pricing when? used for fast moving consumer goods and cosnumer durables, where the new offering intoduced is not different from existing offerings. customers are usually price sensitive. one exmaple of penetration prcining is the freeminimum model.
• Difference of pricing approaches and pricing strtegieas? approaches can be used when setting prices and pricing stragies are used long term.
• short term pricing stragies losing pricing, promotional pricing (temporarliy lowered to raise brand awarness and encourgae trial), loss-leader prciing(low prices based on cost and competion), segemntation prcining(diff prices depning on target audiance), customer centric pricing (up selling: offering a customer a more expensice offering and cross selling: selling other different offering to same customer), the pay what you want approach, behaviours based on pricing, freemium pricing
• b2b pricing both parties tries to maximise benefit.
• b2b seller perctive pricing tactics geographical pricing (prices depends on locations), negotiated pricing (depends on specific agreements, when sale is commplec and consultative), discount pricing (reducing prices if buying large colume, retailers large), vlaue in use pricing (customer perceptions of the attributes of offerings, industrial enviroments, price depends on what idnividaual benefits recived from the propostion), relationship pricing, Pay what you want, transfer pricing, evc pricing (prices depends on perviced value of the purchasing organsiation=, tendering and bid pricing
• what are the 3 main aspects of marketing communciation engagement, aduainces and repsonses
• what are the tools of marketing communciations advertising, sales promotion, personal selling, direct markeing, public relations (ASPDP)
• how do markeing communciations work according to the linear model of communciation The soruce is an indiivual or organsiation that identifies a roblem that requires transmission of a messge. it is important facotr since the soruce must identify the right problem and a reciver who percived a soruce to lack conviction, authoirty, trust or experise is not likly to belive the messahe sent. encoding is next and is a process of sleecting the approproate words, picture, symbols and music to reperesenat the masgse for easy comprehension by the reciver. the channel is the means by which the message is transmitted from the source to the reciver and cna be perosnal or non-personal. decoding is the process by which the recover makes sense of the mmessage. repsone is th set of reasctions from the reciver, which may be emotional, behvioural or aciton-oritented. feednack is improtant to ensure the message has been correclty decoded. noise refers to inlfuences that disort information, making it difficult for the reciver to correcly decode. the real of understanding is important for sucessful communciation since it recongises the common ground.
• what are the limitations of the linear model since it ignores the impact of other opeople on the communciation process and is based on communciation though mass media. devleoped at time of limited media, today with mass media, it is not appropoate.
• describe the two step model of communciation similar to linear. but recongises the importance of perosnal infleunces when informaing and perusading audiances to think or behave in particular ways. information flows via media chnnels to epople, to whom other memebrs of the audiance refer for informaiton and guaince. there are 2 types of infleunces which both have enourmous potneital to infleucne: the opinion leader and the opinion former. the leader is an ordinary person who has a heightend intrest in a particular topic and the former is a person invovled professionaly in the topic of itnrest.
• the ineraction model of communciations describe similar to 2 step, but parties are seen to itneract among themselves and communciaitons flow among the memebers in what is regarded as a communciation network. mas media not only source of information. says messgaes can flow though vairous chnnels and that people can infleucne the direction and impact of a message. often market com set out to create audiance paricpiacion . does not take into acocunt the interaction of the communciation process which is one one can argue that the linear is an imcomplete form.
• why communciaiton models important all have a role in marketing communciations. Mass-media communication, in the form of broadcast television and radio, is still used by organisations to reach large audiences(linear). Two-step and interaction forms of communication are used to reach smaller, specific target audiences and to enable a range of people to contribute to the process. Interaction and dialogue are higher levels of communication and are increasingly used to generate personal communication with individual customers.
• opnion leaders better at reciving information and then reprocessing it to infleuince others, they have a capacity to be more perusasice than others and the mass media. they infleunce people who are in the same peer group. markcom is targeted at infleucning opnion leaders beacuase they will in turn inlfuence others
• opnion followers turn to the leaders for advice and information about offerings they are intrested in, leaders are more confident than nonleaders.
• potneioal problems with marcom with opinion leaders 1. acceptance of target group and how well fit with image of the brand 2. does it impact to much
• opnion formers other type of personal influencer. not part of the same peer group as the people they infleucne, rather their defeining charcterics is that they exert inflecne based on profession, authoirty, educatuon or staturs assoicated. provide infor and advice
• hierachy of effects crituque a model about how a prospect must pass though a series of steps before a pruchase will be made, however, although providing a broad helful template for the devlopment and evaluation of cmapaigns, this sequential approach has many cons. people do not always process information not do they alyas purchase offerings following a serises of steps. this lgoical progresison is not relfectied in relaity when, ex impusle pruchases is followed by emotional feeling. there are also conceanrs about what acutally consititues adequate levels of awarness, comprehension and convition.
• steps of hiercy of effects awarnes, knowlege, likning, preferance, convition, purchase (AKLPCP)
• strong theory of advertising suggests that advertising has storng effects since it can perusade people to buy an offering they have not bough before. states that advertising can icnrease sales for a brand and for the procut class. these shifts are achibed though the use of manipulative and pscholgogical techniques which are deployed against largly passive consumers who are weither incapable of processing information or have little motivaiton to get invovled. connected to hierachy of eccedtd
• weak theory of advertising proposes that a consumer's brand choice are driven by purshaing habits rather than bu exposure to promotinal messages. ads weak force since cosnumer process information acitvly not passicely. advertsing employeed as a defense to retain customers and increase brand uage. ads used to reinforce attitues, not to hange them.
• weak vs strong . The answer to the question ‘How does advertising work?’ lies somewhere between the two and is dependent on the context. For advertising to work, involvement is likely to be high and so here the strong theory is the most applicable. However, the vast majority of product-purchase decisions generate low involvement and so decision-making is likely to be driven by habit. Here, advertising’s role is to maintain a brand’s awareness with the purchase cycle, so the weak theory is most applicable.
• attitudes formation 3 stages: cognatice (learning), affective (emotional, behavioural (contive).
• attitude formation HOE and strong bs weak hoe and strong contain a sequential approach of learn.feel-do, while weak puts more emphasis on awarness and thus worked into a circular format meanng that marcom should be audiance-centered and cmapagins should be developed based on audiances need to elarn, feel or behave in aprticular ways.
• explain learn in attitude formation aims to inform target audiance about key attributes and benefits, advertising reach large and targeted, task invovles making target audiance aware of the offering, how the brands superiority, dmeonstrating how offering works, eduacting about when to use
• explain feel in attitude formation create postive attitudes towarfs a brand, emotional vlaues ned to be asosicated with it can be reingorced in later communciations. adverising and brand palcement ex refelcting their vlaues and aspirations. ise of music, charachters, coulours and images.
• explain do in attitude formation focuses on changing the behaviour of the parget audiance. ex get people to buy or motivate them to take action. direct repsponse adverstiing is effecgive here, but sales promotion, direct markeing and personal selling also good
• what are the 2 goals of marketing communciation 1. the development of brand equity ie feelings, emotions about brand that lead cosnumers to bhevae differnetly. brand communciaiton makes us think postive about brand. 1. use communciations to meke us behave in paricular wyas ex money used to encourahe to behave diffrreently. To sum: communciations can be used to a) develop brand and b) to change the behaviour of the target audaicne.
• audiances customers, chnnel memebers, general stakeholders
• DRIP differentiate brands and organisations; to reinforce brand memories and expectations; to inform (i.e. to make aware or educate audiences); and finally, to persuade them to do things or to behave in particular ways.
• what is the markeitng communciations mix 5 main tools, 4 types of messages and 3 types of media.
• main challange in comminicationmix now for organisation one of the key challanges is to find the right mix of tools, mesages and media forms that enable them to reach and engage with their target audiance effectlivly and eocnomically
• What should an organisation think about when deciding media type of the communication mic it is important to consider the communciation objectives of the campaign ie it is imporrtant to think of DRIP (diffrentate the brand, reinforce brand identity, inform customers and perusade them to behave)
• Goal with the communciation mix today developung undersanding and preferance, reminding and reasuring customers, and building brand value. the long term brand building perspective is more profitable approach than a short-term direct resposbne focus on sales
• communication mix today should be audiance centered and an integral part of the organidations overall communications and relationship marketing sttregey
• selection of tools a effective communciation mix occurs when tools complement each other and work as an itneractive unit. the digital transformation of marketing has blurred lines between the tools.
• what are the tools adervising, sales promotion, public relations, direct marketing, personal selling
• explain advertising designed to impact consumers by engaging them to percive the brand in a certain way. it is based on the notion of clients rendering media time to communicate brand messages and infleunce audiances. defined as "a paid mediated form of communciation from an idefinale soruce, designed to persuade the reciver to take some action". There are many different formats; banner advertising, sponsorship, seach, lead generation, calssifieds and auctions, rich media, digital video advertising, mobile advertising, digital audio, social media advertising, email etc.
• describe sales promotion offers a direct indictment or an incentive to encoruage customers to buy and offering. these incentives can be targeted at consumers, distributors, agents and members of the sales force. sales promotions are concearned with offering customers additional value to induce an immediate sale. the sale might have occured without the sales promotion, but the promotion bring the time of sale foward. Key forms include: sampling, coupons, deals, premiums, contests, sweeptakes, allowances
• describe pr pr are used to infleunce how and organsiation is percived. it does not require a pruchase of airtime of space in media. these messeages are low cost and percived to be highly credible. pr attempts to integrate its own policies with the intrests of stakeholders and it formulated and executes a program of action to develop mutual goodwill and understanding. main type is media relations and consists of press releases, conferances and events. other types are lobbying, investor relstions
• describe direct marketing the primary role of direct markeing is to drive a response and shape behaviours of the target ausiance with regard to a brand. this is achived by sending personalised and customised messages, often requiring a call toa ction, designed to provoke a chnage in the audiance's behaviour. used to create a personal and direct communication with customer, potenial customers and other stakeholders. key benefit is limited communciation wasteage, precision high when taking about reach of the target audiance unlike advertsiing which reases non target audiace memebrs as well. ex email.
• describe perosnal selling involves interperosnal communciations though which information is provided and postive asstioantions developed, behaviour stimulated. activitty done by representatives of an organsiation. potent since messages can be adopted to meet the requirements of both parties. objections can be overcome, ifnormation provided in the context of the buyer's enviroment and the convition and power of demontration can be brough.
• comparision of the communciation marketing mix advertising: medium control, high cost, low credability, low level of dispersion in consumer markets and medium in b2b, main drip task is diffrentiating and informing. Sales promotion: high control, medium cost, medium credability, level of dispersion is medium in cosnumer makrets and high in b2b, main drip is persuation. PR: low control, low cost, highly credible, high level of dispersion in both markets, main drip task is diffrentating and informing. Direct marketing: high control, medium cost, medium credability, high level of dispersion in consumer markets and medium in b2b, main drip is persuading and reinforcing, personal selling: medoum control, high cost, medium credability, medium disperson in cosnumer markets and high in b2b, main drip is persuading.
• what are the 4 main forms of messahe in the communciation mix informaitonal, emotional, user-generated content and branded content.
• informational messages split into 2 catagories: position oriented and rational or customer oriented and emotionally based. In general if the aduainces are high invovlemnt, the empahsis of the message should be information contonet.
• emotiuonal messages low invovement audiances, messages should try to get emotional response. products that fulfil hedonic needs
• guve example of information based mesages facutal, slice of life, demonstration and comparative
• emotion based messages fear, humor, animation, sex, music, fantasy and surrealism
• user generated content refers content created by people using social media and the meia content that are publicaly avaible and created by end users. 3 main characterisics: content is freely accesible to the public, the material demonstrates creativity, the material should be amateur in nature. takes the communciaiton initiative away from organsiations, marketers are lisiting to and observinf consumers though UGC, many are fining out the different meanings cosnumers attribute to brands, which help mareters with brand developemtn and helps them with repostioning.
• describe bradnded content entertainment material that features a single comapany or brand. can enable conversations ex in social media and raises a brand profitle and its credability. ex customer publishing, native advertising. sometimes created as a part of a comapnyäs content markeing operations which focuses on the creation and dissemination of content around a brand that does not overtly attempt to sell products or services. the goal is to provide audiances with valuble informaiton that enhances the undertsnaing and knwoeldge.
• native advertising reers to any paid advertisinf that takes the specific form and apperance of editorial content from the publisher or contect in which it is conveyed.
• marketing comunication mix media media determines how and when a message is conveyed to engage target audiances. 3 ways of clasifying media: based on form (physicality / location), based on soruce (POEM), based on functionality (linear/interactive).
• media fragmentation the expansion of media
• sudiance fragmentation the expansion of an audiances choice of media
• what are the 6 main media forms 1. broadcast 2. print 3. out of home 4. interactive 5. in store 6. other
• broadcast tv and radio. mass audiances at relativly low cost per target reached. visioal and or sournd dimensions aded. can tell stories and appeal emotion.
• print newspapers and magazines. effective at delivering messages to target audiances since it allows explanation in a way that is not possible with other ex written text to argue.
• ooh 3 main formats: street furniture ex bus shelters, bilbords, transit ex buses, taxis, underground. key characterics is that they are observed by their target audiances at locations away from home and normally used to support messages transmitted though primary media(broadcast and print).
• interactive two way interactive communciation. information flows from source to the reciver back and foruth. ex ditifal media. these interactions are conducted at high speed and low cost, and usually with great clarity.
• in store 2 main forms: point of purchase displays and packaging. primary objective is to get the attention of shoppers and to stimulate them to make purchases, the content can be controlled by retailers and manufacutrers.
• cinema same pros as tv. howver has a yonger age span than traditional tv, used to reach different age segements.
• ambiviment media ooh media that fail to fit any of the established outdoor catagories. ex posters, distribion, digital media, sponsorships, aerials.
• media foruce media can also be classifieed in terms of soruces using POEM (paid for, owned and earned media). useful for thinking about how to communicate a specific message.
• explain the POEM P stands for paid for and is about paid media and often about advertising. O stands for owned and is the osned media. Organisations have many assets that they can use to convey messages to audiance and though which convesations can be devlpped. ex a brand name. E stands for earned media and refers to comments and conversations about a brand in all types of channels (social media, news etc) about a brand or organisations. cna be both postive or negative
• what are the main media funcitalities? attitudial repsonse, behavioural (direct) repsonse
• attitudial repsonse before. media was used to covney messages designed to develop consumers attitudes and feelings towards brands. was concern about builidng a brand over long term
• behavioural reponse today. messages are designed to provoke audiances into reposning, eithe rphysically, cognitivly or emotionally. concernes activation and is essentaly a short term acitivty.
• Compare attitude and behavioural communications they require different media, the fucnitolity of media will have different abilities to fulfil these aims. LInear or one way media works well developing long-term orucomes such as brand attitues and feelings while interactive media are needed to create a dialouge required by the behvaioural or direct reponse
• interactive media has a contact mechanism that enables recivers to repond to messages.
• name important apsect to the sucess of a direct-reponse campagin it is not the number of reponses but the conversation that leads to sales ie the infrastrucutre to suport these activites must be thouhg though and implemented otherwise the work and rousources investable will be wated.
• digital marketing management and execution of markeing using digital electronic technoogies and channels and digital data bout user chatacterics and behviour
• direct marketing marketing direct to cudstomers using addressable media such as port, internet, email etc
• interactive marketing a situation or mechanism though which marketers and customers interact usally in real time can be non-electronic
• social media marketing marketing though social media
• social marketing marketing designed to infleunce behviour of the target audiance
• social media marketing the power of is is that it enables ugc and allows consumers to share their ecperiances with each other at their own discreation, making service and product quality widley avaible and therby shifting power from marketers to consumers. before marketers traditionally were in charcge of the messages they communciated, but this is no longer the cae, in a social media enviroment, cosnumers have a voice in reacting to product offers and marketing that they do or do not like.
• what are the 3 charactertics of digitallt advanaced comapnies 1. strategy, they focus on testing viability of a makret, propduct or segment in real time though limited releases and small campagins. 2. culture: digital leaders adopt a fail.fast foward mindset, they push a simple product into the market, gauge itnrest, collect customer feeddback and iterate. there is an empahish on failing often and succesding early. 3. organsiation: use non-traditional organsiational struuctres, digital talent acqustion.
• the digital impact in 3 stages 1. digitization: analoge information istransformed into a digital format and is prerequisite of the other stages. ex spotify 2. digitalisation: how digital technology enables the altering of business process ec sephora 3. transformation: refers to a situation where digital technology leas to comapny wide chnges and new buisness models
• what are the 3 drivers for the digital transformation of amrketing 1. new digital technologies 2. increased digital competion 3. changing customer behaviours
• driving force - digital technologies the development of internet played a big role in the digitlaisation of marketing. social media and mobiles have driven the development and now ai are incresingly impacting marketing
• drving force - competion digital technolgoies have disrupted the competative landscape and enabled relativly young digital firms to competer on a globale scale. a key factor of many such firms is their relaiance on platform buisness models, which offer a foudnation technology or service that is essential for a braoder interpedet ecosystems of buisnesses.
• driving force - cosnumer behvaiour consumer behvaiours are changing in reposne to the opportunities offered by digital channesl, pruchases are increasingly being done in online channels and new seach and social media tools
• growth strtegies and digital transformation to comprehend growth stratgies for platforms, two additional growth plans exits, co-creation and platform divesification. Co creation growth strtegy allows external uses to co create vlaue by giving them the suthoirty to perfrom certain activites on the platform. A platform diversification approach focuses on expanding the platform in different ways such as serving new markets updating the asortment and opening up for new buisness partners.
• mnichannel marketing focus on integrating the overall experiance in many channels
• seach marketing refers to the use of sech directories and seach engienes as markeing channels to promote a companyäs product or services. is one of the most cost-effective methods of digital marketing.
• mobile marketing practices that enable organisations to communciate interactivly with their audiances via mobile devices, inexpensive and quick way to reach markets though ex mobile advertising.
• content marketing a markcom approach in which brand create and distirbute content to consumers with the goal of engaign w´them, generating intrest and influencing behaviour. accelerated in digital space
• infleunce marketing when deciding on a influcner, marketers considers on the content or profile of infleuncer and the sice of their following.
• omnichannel marketing the integration and cooperation of vaoruis organsiations use to itneract with consumers, with the goal of creating a consistent brand experiance. this includes physical and digital channesl. to releasie the full pontential, firms need to track the same cosnumer across multiple channels.

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