Transcript Document

Marketing Management
MNM202-Y
MND203-S
The nature of marketing
Marketing is the process of planning and
executing the conception, pricing,
marketing communication and distribution
of ideas, products, and services to
create exchanges that satisfy individual
and organisational goals.
Marketing is about satisfying needs
The concept of exchange
People give up something to receive something
they would rather have
Conditions that must be met for exchange to take
place:
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At least two parties
Each party must have something of value to the
other
Parties must be able to communicate and deliver
Parties must be free to accept or reject the offer
Each party must want to deal with the other
The marketing “gaps”
Gaps that exist between production and
consumption that are bridged by marketing:
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Space gap
Time gap
Information gap
Ownership gap
Value
Important concepts
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Needs and wants and demands
Products
Value
Satisfaction
Market
Intermediaries
Orientation towards markets
Production orientation
• What can we do best?
Sales orientation
• Sell - no matter what
Marketing orientation
• Satisfy the consumer
profitably by working
together
Societal orientation
• Do what we do without harming society
The marketing concept - NB
Profitability
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Satisfy the needs of the
consumer and society as a
whole, profitably, while
working together as an
organisation
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Consumer satisfaction
Organisational integration
Social responsibility
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Relationship marketing
1. A broader view of the market (long term)
2. Expansion of the marketing offering (6p’s)
3. A bigger market
The marketing process (Fig 1.3)
The marketing environment
Marketing research
Process of designing, gathering,
analysing and reporting
information that may be used to
solve a specific marketing issue
Questions to answer:
• Who is the market?
• How do we segment the market?
• What are the wants and needs of the market?
• How do we measure the market?
• Who are our competitors?
• Which model of the product will best suit the market?
• What is the best price?
• How will we communicate with the customers?
The marketing information system
A system for generating and
managing a flow of information for
marketing decision making
Components:
• Internal reporting sub-system
• Marketing intelligence sub-system
• Statistical sub-system
• Marketing research sub-system
The marketing research process
Data sources
Sampling methods
Probability sampling:
• Simple random sampling
• Stratified random sampling
• Cluster sampling
Non-probability sampling
• Convenience sampling
• Judgment sampling
Market potential vs Sales potential
Market potential: The maximum possible
sales of a specific product in a specific
market over a specific period of time for
all sellers in the industry.
Sales potential: The upper limit of sales
that a firm could possibly reach for a
specific product in a specific market over a
specific time period.
Market potential and sales forecasting
Levels of market measurement:
• Consumer level
• Product level
• Geographic level
• Time level
Relevant markets for measurement:
• Total market
• Available market
• Target market
• Penetrated market
Market potential and sales forecasting
Methods for estimating market and sales potential:
• Breakdown methods
• Build up methods
Market forecast: An estimate of the
expected sales of a specific product in a
specific market over a specific time for all
sellers in the industry
Sales forecast: An estimate of the number of
units a firm expects to sell of a specific
product in a specific market over a specific
time
Forecasting methods
•Sales force surveys
•Expert surveys
•Time series analysis
Consumer behaviour
Types of purchase decisions:
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Complex purchase decisions
Dissonance reducing behaviour
Habitual purchasing behaviour
Variety-seeking purchase behaviour
Routine decision making
Impulsive decision making
Consumer behaviour
Perception
Things to remember:
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Definition
Sensory stimuli
Perceptual defence mechanisms
Motivation
Things to remember:
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Attitude
Things to remember:
Definition
Levels of motives
Maslow’s hierarchy of needs
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Individual Factors
Learning ability
Personality
Things to remember:
Things to remember:
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Definition
Characteristics of attitudes (pg 144)
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Definition
Examples (pg 145)
Lifestyle
Things to remember:
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Definition
AIO
Definition
Motivation, attention, repetition
Opinion leaders
Culture
Things to remember:
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Things to remember:
Definition
Refer to diffusion process
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Definition
Sub-cultures
Group Factors
Reference groups
Things to remember:
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Definition
Types of groups
Ways in which groups affect consumers
Family
Things to remember:
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Definition
Phases of family life-cycle
Role differentiation in families
Market segmentation, targeting and positioning
Market segmentation: The process of
dividing a heterogeneous market in to
homogeneous segments
Market targeting: The process of deciding
which segment to pursue
Product positioning: The way customers
perceive products relative to the
competition
Segmentation
Why segment?
Why not segment?
Prerequisites for market segmentation also
known as criteria for a segment to be effective:
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Measurable
Large enough
Accessible
Actionable
Differentiable
Bases for segmentation
•Geographic
•Demographic
•Psychographic
•Behavioural
Market targeting
• Concentrated targeting (one segment)
• Differentiated targeting (a few segments)
• Undifferentiated targeting (all segments)
Product positioning
Positioning methods
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Attribute positioning
Benefit positioning
Use/application positioning
User positioning
Competitor positioning
Product category positioning
Quality/price positioning
Chapter Six – Integrate it all
Product
Promotion
Price
Place