Marketing: The activity, set of institutions, and process for creating, capturing, Marketing research: set of techniques and

ues and principles for systematically collecting, Types of Product

communicating, and delivering and exchanging offerings that have clue for recording, analyzing, and interpreting data that can aid decision makers who are involved
customers, clients, partners and society at large in marketing goods -> Provide valuable information that will help them make
Marketing Plan:- provides a reference point for evaluating whether or not the firm segmentation, positioning, and 4P’s decisions -
has met its objectives. > Why do marketers find marketing research valuable? 1. Reduce some uncertainty with
Core aspects of marketing: 1.Marketing Is about Satisfying Customer Needs and current operations 2. Provides a crucial link between firms and their environment à
Wants 2.marketing entails an exchange 3.Marketing Can Be Performed by individuals become customer oriented and build strategies by using customer input/feedback 3.
and organization 4.Marketing Affects Various Stakeholders 5.Marketing Creates Value Can anticipate and respond quickly to competitive moves -> Before conducting
through Product, Price, Place, and Promotion Decisions4 P’s = the marketing mix marketing research, consider: o Will the research be helpful à will it provide further
• Product: Creating value / Create value by developing a variety of offerings insights and reduce uncertainty? o Is top management committed to the project and
(goods, services, ideas) that satisfy customers’ needs / Services: intangible willing to abide by the result? o *value of the research o Size of the research (big/small)
customer benefits that are produced by people or machines / Ideas: thoughts, (simple/complex) Marketing Research Process
opinions, philosophies; intellectual concepts that ca be marketed 1. Define objectives and Research Needs / Establish what problem needs to be solved;
• Price: Capturing Value/ Money/time/energy in exchange for the product / Find the
define the OBJECTIVE à why am I doing this? § Exploratory research: less formal research;
value buyers are willing to pay and seller achieves reasonable profit
does not lead to conclusive result • Help understand the question or problem • What
• Place: Delivering the Value Proposition / All activities necessary to get the
sources or methods might work -
product to the right customer when that customer wants it / Supply chain
> Ex: McDonald’s goal: gaining insight into how it should set a price for and market its
management: set of approaches and techniques that firms employ to efficiently
latest combo meal / Assess the value of a project à compare benefits and costs 2.
and effectively integrate their suppliers, manufacturers, warehouses, stores and
Designing the Research / Setting the logistics; 5W’s + timeline / Identify the type of data
other firms involved in the transaction into a seamless value chain where
needed and determine the research necessary to collect them / Can start with available
merchandise is produced and distributed in the right quantities, to the right
data, build a survey, set up camera for observation, etc. 3. Collecting Data / Primary data:
locations at the right time
data collected to address specific research needs / Secondary data: pieces of information
• Promotion: Communicating the value proposition / communicated by a
collected prior to the start of the focal research project (internal/external) 4.
marketer that informs, persuades and reminds buyers about a product or
Analyzing the Data and Developing Insights /Analyze and make use of the collected data Step 5 of STP
service to influence their opinions and elicit a response / Enhances a
/ Data: raw numbers of other factual information / Information: interpreted and Market position
products value.
organized data that are useful to the decision makers 5. Developing and Implementing target customer
• Integrated Marketing Communication (IMC) represents the fourth P.
an Action Plan / Decision makers undertake appropriate marketing strategies / the product doe
Promotion. It encompasses a variety of communication disciplines-
Secondary Data / Inexpensive External Secondary Data -> Ex: Government website,
advertising, personal selling, sales promotion, public relations, direct
census data, etc. / Often not adequate to meet researchers’ needs à may be irrelevant or
marketing, and online marketing including social media- in combination to
outdated/ Not all internet data are reliable / Syndicated data: data available for a fee
provide clarity, consistency and maximum communicative impact.
from commercial research firms/ Some can offer info about shifting brand preferences
History of Marketing
• Production era / a good product will sell itself / Stores were considered a place to and product usage / Scanner data: used in quantitative research obtained from scanner
hold goods readings of UPC labels at checkout counters / Helpful for consumer packaged-goods
• Sales era / Great depression, people consumed less, needed to push sales firms assess marketplace / Focuses on weekly consumption of a particular product /
• Marketing era / Buyer’s market, consumers had options / manufacturers and Panel data: information collected from a group of consumers, organized into panels,
retailers had to focus on what consumers wanted and needed before they made over time / Focuses on weekly consumption of a particular customer/ Internal
and sold their products Secondary Data : Data collected from internal daily operations / Data mining: using
• Value based marketing era / must give customers better value than competitors various stat. analysis tools to uncover previously unknow patterns in the data or
/ Value: relationship of benefits to costs / Value concretion: customers can act as relationships among variables / Used to generate customer-based analytics that they can
collaborators to create the product or service => customizing shoes. apply to strategic decision making -> Ex: collecting info from customer loyalty card usage
• Customer relationship management (CRM): - a business philosophy and set of and capturing key purchase data à send targeted ads / Churn: (# of participants who
strategies, programs and systems that focus on identifying and building loyalty discontinue use of a service)/(avg. # of total participants)
among the firms most valued customers. / Allows company to focus on what it does best and improve potential problem areas /
• Marketing Strategy: - identifies, 1) Firms Target market, 2) a related marketing Big Data: collection of data that is huge in size yet growing exponentially
mix and 3) the bases on which the firm plans to build a sustainable competitive The field of marketing research has seen enormous changes in the last few years #1 Firm’s Valu
advantage (is advantage over competition that is not easily copied and can be because of (1) the increase in the amounts of data to which retailers, service providers, Positioning= T
and manufacturers have access; (2) their ability to collect these data from transactions, Three compon
maintained over a long period of time.)
customer relationship management (CRM) systems, websites, and social media market sees a
Situational Analysis Strategies to deliver value and develop sustainable competitive
advantage: platforms that firms increasingly use to engage with their customers;15 (3) the ease of compared aga
1. Customer Excellence / Achieved by developing value based strategies, retaining collecting and storing these data; (4) the computing ability readily available to similar betwe
loyal customers and excellent service /Loyalty: Customers are reluctant to manipulate data in real time; and (5) access to in-house or available software to convert evaluative cri
patronize competitive firms / View customers with a lifetime value perspective is the data into valuable decision-making insights using analytic dashboards. distinctive, an
key for a customer retention program / Emotional attachment through loyalty sentiment minin
programs / can tailor offerings to better meet their needs / With this data, can products on soci
implement retention programs / Customer service: done through employees / data are then an
must instill its importance so it becomes part of the organizational culture /Once a products and ad
reputation is built, it is usually sustainable as competitors are hard pressed to
develop a comparable reputation
2. Operational Excellence / efficient operations and excellent supply chain/HR Consumer behaviour: a combination of who we are and what is going on around us /
management/ Low costs lead to value for customers and profit for the firm/ Psychological: who we are / Our beliefs, rational, intuition/instincts / Not necessarily
Develop sophisticated distribution and information systems and strong logical or emotion based / Needs: understand which segment or ‘need’ your product
relationships with vendors 4 can target and satisfy /Perception: want to know how customers interpret our stimuli
3. Product Excellence/ Having products with high perceived value and effective (color, symbol, music, etc.) / Attitude: is my brand/product’s first impression strong,
branding and positioning/position and distinguish product/service using a clear, how is customer’s attitude? Learning: make sure our communication is consistent so
distinctive brand image/ constantly reinforce it through merchandise, service and customers learn about us in the way we want them to; need to overcome negative
promotion learned perception / Lifestyle: can we offer the value that consumers need/wantin their
4. Locational Excellence / Having a good physical location and Internet lifestyle? Are we selling the lifestyle they need or want to live?
presence /sustainable as not easily duplicated.
 Marketing plan: It is a well written document composed of the analysis of the Consumer Decision Process STP in a globa
current market situation, opportunities threats for the firm, marketing objectives, 1. Need recognition: Functional Needs: Needs on performance of product (e.g cultural nuanc
strategy identified in terms of 4 Ps, action programs and projected income. BMW bikes) / Psychological Needs: Gratification of consumers (e.g designer be considered
Strategic Planning is Not Sequential, General sequence : business mission(a broad purses) 2.Information Search: Internal Search: Memory and prior knowledge/ differently in
description of firms objectives and the scope of activities it plans to undertake) -> External search: information from outside Therefore, co
perform situation analysis -> identify strategic opportunities and evaluate Factors affecting information search: Perceived benefits vs Perceived cost of search / to protect its
alternatives(Segmentation, Targeting and Positioning) -> implement marketing mix Locus of Control/ Actual or Perceived Risks -> Performance (poorly performing product needs of the g
allocate resources -> evaluate their performance using marketing metrics and make or services)-> Social (worry others might not regard their purchase positively)-> the market, it
adjustments -- Actual planning will go back and forth among these steps! Financial (risk with monetary outlay)-> Safety (consequence if a product does not using the mar
Marketing Segmentation:- The process of dividing the market into groups of perform well) -> Psychological (worry that the product does not convey the right meet the nee
customers with different needs, wants, or characteristics- who therefore might message) 3. Evaluation of alternatives- Universal sets: all possible choices for a product
appreciate products or services geared especially for them. mix to serve t
category/ Retrieval set: brands/stores that can be readily brought forth from Steps of Deriv
Types of Situational Analysis:
memory/Evoked set: the alternative brands/stores that the consumer states they would position of pr
1. SWOT
2. CDSTEP (microenvironment factors that influence marketers decsions)
consider when making a purchase decision/Higher likelihood of purchase Consumer consumers’ pe
Culture: shared meanings, beliefs, morals, values, and customs of a group of people Decision Process -> Compensatory: assume that consumer trades off so that good to competitor
-> Have products identifiable and relevant to a particular culture -> Country attributes (product features) compensates for bad characteristic -> Non compensatory: service 2.Iden
Culture: artifacts, behavior, dress, symbol, physical location, language; could be consumers choose a product or service based on one (subset of) characteristic, current and p
trickier to identify and navigate -> Establish a universal appeal within the specific regardless of the values of its other attributes 4.Purchase and consumption. 5. Post- consumer pre
identities of country culture (ex: same movie posters in different languages) -> purchase: Customer Satisfaction -> Post purchase cognitive dissonance -> Customer product, dete
Regional Culture: specific to a particular region in a country)dietary tastes, loyalty > Undesirable consumer behavior (negative word of mouth) 5.Select the p
preferences -> Ex: offer staple menu + location variations in restaurants to appeal STP (segmentation, targeting, positioning) Process shift on the p
1. Establish the Overall Strategy or Objectives dynamic and
to different regional dietary tastes -> Small ‘c’ culture: group of people -> Ex:
2. Use Segmentation Methods (Geographic, Demographic, Psychographic, benefit & Marketing En
Sauder students thinking similarly
Behavioral) Psychographic: (how consumers describe themselves, self-select Company: - th
3. Demographics: the characteristics of human populations and segments, especially
those used to identify consumer markets (avoid stereotype) -> Generational themselves into categories)Self Value(goals), Self-Concept(image of oneself)& Competitors:
Cohort (Age): same generations have similar purchase behaviors -> Income: how Lifestyle(live our lives)/ Behavioral: Occasional, Loyalty, Benefit: from product SWOT and rea
3. Evaluate segment attractiveness: Identifiable (Segments are distinct from each other), Corporate Par
to appeal to different income distributions (affordable vs. luxurious) -> Level of
Substantial(Size of market), Reachable, Responsive (customer’s respond positively), Physical Envir
education: higher education à better jobs and higher income -> Gender: must Profitable
appeal to both genders in current society -> Ethnicity: must appeal to diverse environment
4. Select a target market: Types of Targeting/Marketing -> Undifferentiated Targeting
ethnicities and minorities (ie. Kimchi burger) 3. Social trends: not affiliated with Consumers al
Strategy/Mass Marketing (Everyone must be considered a customer, staple products,
group of people ->sustainability: UN SD goals highlight social issues,(companies sharing), gree
provides same benefit to consumers), Differentiated targeting strategy (Different
rely on certifications from various agencies)->health and wellness to supply cust
offering for each target market), Concentrated targeting strategy (Provide one offering
concerns(advertise food in reasonably proportioned size, advertised food must services) and
for one specific target market), Micromarketing (One product for one specific customer
provide basic nutrients, cannot be advertised during kids programs, consumers “Are firms rea
e.g. bespoke suits, consulting), Mass Customization (e.g. Nike customs)
interest changing, getting conscious)->efficient utilization and distribution of disingenuousl
5. Identify and develop positioning strategy
food. (Other points) Greener consumers: strategic effort by firms to supply with the goal
customers with environmentally friendly, sustainable merchandise and services environment?
4. Technological Advances: faster and wider internet access, portable devices, new produced a te
apps and algorithms, loyalty card data -> Any new knowledge or idea § See how Gen Z: - 2001
tech impacts your operations and customer’s decision making=>AI(Rely on Gen Y: - 1977
computer systems to perform tasks that require human Gen X: - 1965
intelligence,siri,alexa)=>Robotics(taken over responsibilities of human Baby Boomer
workers)=>Internet of things(many smart devices with interconnected sensors,
combine the data, to help both consumers and companies work Scanner resea
efficiently)=>Privacy concerns: demand for better customer information security panel researc
5. Economic situation: inflation, foreign currency fluctuations, interest rates, etc. person or hou
6. Political/Regulations: laws to ensure fair competition, legislation to protect
consumers, fair business practices Interviews
7. Natural: Climate change, natural disasters, natural resources, pandemic, etc. - #Indepth inte
> What is the planet doing, how is the biosphere changing? -> Responding to that the addit
the environment: Firms should respond to multiple changes and trends in #Focus group:
microenvironment Recorded to s
#Survey: - que
4. BCG Matrix (Dog, Question Mark, Star, Cash Cow) Unstructu
Stars: - High market share and high market growth. (Require heavy investments)
Question Marks: - Low market share but high market growth (require significant Neuromarket
resources to increase market share and become stars) determine the
Cash Cows: - high market shares and low market growth (they have excess for the purpo
resources) Dogs: - Low market share and Low market growth (they phase out
gradually)
Market Penetration: - employs the existing marketing mix and focuses on firms’ effort Sensory situation- visual sense, audio , olfactory, tactile, taste.
on existing customers. They require greater marketing efforts. Market Development – the American Marketing Association provides three guidelines for conducting marketing
existing marketing offerings to reach new market segments Product Development- new research: (1) It prohibits selling or fund-raising under the guise of conducting research, (2) it
product or a service being offered to the current target market of the firm. supports maintaining research integrity by avoiding misrepresentation or the omission of
Diversification- introduces a product or a service to a market segment that is currently pertinent research data, and (3) it encourages the fair treatment of clients and suppliers.”
not served.