Marketing

Lecture Readings:
Chapter 13: Helping Buyers Buy

Marketing: the activity, set of institutions, and processes for creating, communicating ,
delivering, and exchanging offerings that have value for customers, clients, partners, and
societies at large.
-​ Innovation, research, analytics

Evolution of marketing:
Four eras
●​ Production
○​ 1900s
○​ “Produce as much as you can because there is a limitless market for it”
●​ Selling
○​ 1920s- to persuade customers to buy
■​ Intro to credit influence
●​ Marketing concept
○​ 1945, baby boom
○​ Boom in spending
■​ Customer orientation
■​ Service orientation - same objectives
■​ Profit orientation
●​ Customer relationship
○​ 1990s and 2000s
○​ Customer relationship management crm
■​ Learning as much as possible about present customers to satisfy the,
●​ New era; Mobile & on demand marketing (digital age)
■​ Now: consumers want to interact anywhere, anytime
■​ Can I: create value
■​ For me: personalized experiences
■​ Simple: easy interactions

The 4 Ps in Marketing
●​ Product; designing a satisfying product
○​ Any physical good, service or idea that satisfies a want or need
○​ Brand, quality, style, etc.
 ●​ Price; setting a price
○​ Appropriate to the products you are selling
●​ Place;
○​ putting goods where people will buy it
●​ Promotion
○​ Integrated Marketing Communication (IMC)
○​ Strategy
■​ advertising , personal selling, public relations, publicity , word of
mouth , coupons, samples, rebates

Target market: the people you will persuade to buy your product
Testing marketing: the process of testing products among potential users
Brand name: the differentiation of goods and services from competitors

Marketing research: The analysis of markets to determine opportunities and challenges and to
find the information needed to make good decisions.

The marketing research process:

1.​ Defining the question/problem/opportunity and determine the present situation
2.​ Collecting research data
a.​ Secondary data
3.​ Analyzing research data
4.​ Choosing the best solution and implementing it

Focus group: A small group of people who meet under the direction of a discussion leader to
communicate their opinions about an organization, its products or other given issues

Environmental scanning: the process of identifying factors that can affect marketing success
●​ growth of technology
●​ Consumer databases
●​ Population growth

The markets:
●​ The consumer market; the individuals or households that want goods and services for
personal consumption
●​ Market segmentation; dividing the total market into groups with similar characteristics
●​ Business to business (b2b) the individuals and organizations that want goods and
services to use in producing other goods and services or to sell, rent, or supply goods to
others
Types of segmentation
●​ Geographic; dividing a market by cities, countries, states or regions
●​ Demographic
●​ Psychographic: targeting a specific group’s lifestyle
●​ Benefit: determining what benefits to talk about
●​ Volume: segmentation by usage
●​ Niche: creating products for a small market
●​ One to one: mix of goods and services for each individual customer

Mass marketing: developing products and promotions to please large groups of people`
Relationship: goal of keeping individual customers over time

The marketing concept:

1.​ Customer orientation
2.​ service
3.​ Profit

All organizations use marketing, including:

●​ For-profit organizations
●​ Non-profit organizations
●​ Schools
●​ Churches
●​ Politicians

Factors influencing consumers:

●​ Knowledge
●​ Culture
●​ Cognitive dissonance

Chapter 14: Developing and Pricing Goods and Services

14-1 : Designing and promoting better products
●​ Adapting products to new competition and new markets
●​ Value: good quality at a fair price
●​ Distributed product development: handing off various parts of your innovation process
●​ Total product offer: everything consumers evaluate when deciding whether to buy
something
●​ Product line: group of products that are physically similar or are intended for a similar
market
○​ Product mix: the combo of product lines offered by the same manufacture
14-2: Product differentiation
The creation of real or perceived product differences
Classification
1.​ Convenience goods and services: products that can be purchased with ease
2.​ Shopping goods and services: products bought after comparing value quality and price
3.​ Speciality goods and services: consumer products with unique characteristics
4.​ Unsought goods and services: products intended to solve problems, like AAA

14-4: Branding and brand equity

Brands names offer product distinctiveness
1.​ Apple
2.​ Google

Trademark: a brand that has exclusive legal protection for its brand and design
1.​ McDondald’s golden arch

Brand categories
●​ Manufacturers brands
○​ Ones that distribute products nationally
●​ Dealer brands
○​ Carry a retailer’s name (house brands)
■​ Great Value, Up & Up
●​ Generic goods: non branded products
●​ Knockoff brands illegal copies of national brand name goods

Branding
●​ Brand equity is the value of the brand name and associated symbols
○​ Shifts the demand curve
●​ Brand loyalty the degree to which customers are satisfied
●​ Brand awareness how quickly a name comes to mind in a product category
○​ Phone: Apple
○​ Soda: Pepsi
●​ Brand association: linking brands to others
○​ Beyonce being the face of Pepsi in 2012
●​ Brand manager: someone who has direct responsibility for one brand or one product
line
Lecture videos:
Marketing example:
Segway
●​ Went on the market for almost $5,000
●​ No one bought it at this price, so they later sold it for $3,950
●​ Segway missed their target by focusing on engineering without an understanding of the
market
○​ Ended production in 2020

Marketing is central to innovation and bringing markets together

Innovation solves needs and relieved pain points
●​ A need can be solved by many types of product or services while marketing figures out
which type is likely to succeed
○​ Predicated on the right product and service design

People buy benefits, not features

●​ Benefits are the basic ingredients in perceived value
●​ Products must give purpose
○​ Customer value = total benefits - total costs

Marketing management building blocks

1.​ Customers
2.​ Company
3.​ Competitors
4.​ Collaborators
5.​ Context
-​ Allows for company analysis of internal factors
-​ market analysis on external factors
-​ finds favorable or unfavorable factors using the SWOT analysis

Segmentation: who you are catering to

Targeting: develop measure of attractiveness
-​ Selecting the best potential segment
Positioning: convey the meaning of the product to the marketplace
-​ how a consumer thinks of the brand
-​ Segmentation & targeting + differentiation = positioning
-​ By trying to be everything, you end up being nothing; no clear advantage

Marketing mix: product, place, price, promotion

Discussion 1:

Ted Talk; Malcolm Gladwell

Choice, Happiness, and Spaghetti Sauce
●​ Customer’s don't know what they want
●​ “People say they value one thing, but it's another thing that is actually influencing their
happiness the most.”
●​ Must embrace variability of people and products

CASE STUDY
Warby Parker:
●​ Neil Blumenthal
●​ Wanted to innovate the eyewear industry because of the costs of eyeglasses
○​ Luxottica controlled 80% of eyewear brands
●​ How? Customers could try on glasses for free at their home
●​ GQ magazine helped launch their brand
●​ Cut out the middlemen by controlling the vertical system
○​ Designed frames
○​ Sourced their own raw materials
●​ Prioritizes the customer experience

Paradox of choice: having too many options to choose from is overwhelming and stressful
for the customer.

What are the costs of the consumer?

●​ Time
●​ Money
●​ Cash flow issues
●​ Guilt

Marketing is about customer centricity (understanding customer needs)

-​ The foundation of any business.

All relate to Drucker on innovation and creating a customer.

Marketing is about creating and delivering value for customers and the world.
Discussion 2:
Chapter 16 Using Effective Promotions

16-1: Promotion Mix

Promotion mix: the combination of promotional tools an organization uses
Promotion: persuading customers to participate in a marketing exchange
●​ Advertising
●​ Personal selling
●​ Public relations (PR)
●​ Sales promotions
○​ Email promotions
○​ Mobile promotions
○​ Social media/networking
Strategy
Integrated marketing communication (IMC)
Inform, persuade, remind
●​ A technique that combines all the promotional tools into one comprehensive, unified
promotional strategy.
○​ Identify a target market
○​ Define objectives
○​ Determine the budget
○​ Develop message
○​ Implement the plan
○​ Evaluate effectiveness

16-2: Advertising, informing, persuading, and reminding

Advertising: paid, nonpersonal communication through various media by organizations and
individuals who are in some way identified in the message
●​ Retail, online, and mobile advertising are some examples.
●​ What media best reaches an audience?

This is separation from propaganda.

●​ Propaganda: communication that does not have an identified sponsor
●​ Product placement: putting products into tv shows, movies, and other media where they
will be seen
●​ Infomercial: full length tv program devoted exclusively to promoting goods or services

Online advertising
●​ Companies can see customer engagement
○​ How long someone stays on the ad
 ○​ Number of shares
○​ Celebrities #ad

Global advertising
●​ Advertising in foregin countries
●​ Make sure words and terms translate appropriately
●​ Understand foreign culture and market

16-6: Word of Mouth and Digital

Word of mouth is the most effective kind of advertising
●​ Testimonials: a formal statement testifying someone’s qualities.
●​ Viral marketing: strategies that encourage people to pass on a marketing message to
others.
●​ Push strategy: convincing wholesalers and retailers to stock and sell their merchandise
○​ pushing through the distribution system
●​ Pull: heavy advertising towards customers
○​ Customers come to you

CASE STUDY
Beats by Dr. Dre
Hear What You Want campaign featuring Kevin Garnett
●​ In the ad, Garnett is essentially blocking out the hate as I’m The Man by Aloe Blacc
plays
●​ Makes for a cultural talking point

Beats makes things cool by playing in pop culture

●​ Music is a source of truth
○​ Beats wants to be true and authentic
●​ They sell headphones with promotion through celebrities
○​ Beats claims that “ads are natural extensions of a product”
●​ For the creation of commercials, they inspire athletes through a deep level of
understanding so that messages are conveyed in an authentic way
○​ Celebrate an athlete’s story
■​ Promotes through emotion
■​ Music is transformational, offers stability, blocks out things they don't
want to hear
●​ Beats caters to the message rather than the music; music is an elevation

Colin Kaepernick and Nike

“Believe in something, even if it means sacrificing everything”
 ●​ Struck much controversy
○​ People claim that it was disrespectful to America
●​ However, Nike stock prices were on the rise
●​ The commercial reached Nike's target customer
●​ Posted on social media and Kaepernick’s accounts

How are beats and nikes approaches different?

Beats by Dre finds authenticity and truth while Nike takes advantage of said truth for their own
benefit and profit.

Nike campaign: Bold move or brand sucicde?

I think it was a bold move because they say that it aligned with their own values.
●​ Many of the athletes that they sponsor are POC and are affected by the racial injustice
and racial inequalities in America
○​ more respectable
●​ I think Colin Kaepernick faced more repercussions than Nike.
○​ Rated the most disliked player in 2016
●​ Nike: High risk, high reward

In class discussion:
There are two fundamental questions
-​ Who is the target?
-​ What is the message?
3 Fundamental Goals
1.​ Inform
2.​ Persuade
3.​ Remind

Modes:
Awareness
Consideration ​
Preference
Action
Loyalty

Nike Dream Crazy Ad

-​ Do things scared
-​ Overcoming challenges
-​ Wins an emmy
Nike is cultural VS Beats being a product based company.
-​ No publicity is ever bad publicity.

Brand is the unique identifying essence of your business.

-​ Branding: the process of optimizing the associations, feelings, and impressions that your
intended target audience experiences as a result of interacting with the brand.