Why is marketing important?
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It stresses the importance of delivering genuine benefits in the offerings of goods, services, and ideas marketed to customers.
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Marketing Concept
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The idea that an organization should 1) strive to satisfy the needs of consumers 2) while also trying to achieve the organization's goods
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Marketing Orientation
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Focuses its efforts on 1) continuously collecting information about consumer's needs 2) sharing this information across departments and 3) using it to create customer value
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Marketing's first task
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Discovering and satisfying needs
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Product Orientation
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1920's; Mass production
ford cars = make more with more options.
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Sales Orientation
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1960's; more sales people = higher profit. using telemarketers, etc.
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Rolling Rock ( Production)
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Assumed they had the best beer
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Rolling Rock (Sales)
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No "marketing" to speak of; sales force that operated mainly by buying rounds in taverns
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Marketing's second task
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Spread message about product/service as cost-effectively as possible
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Target Market
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one or more specific group of potential consumers toward which an organization directs its marketing
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Car Buying
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high involvement purchase. engage in extensive info search, consider many product attributes and brands. form attitudes and participate in word of mouth communication. companies give info
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Elaboration likelihood model
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most widely used.
Central route - (people highly involved, high elaboration) when making argument.
Peripheral route - (low elaboration) pictures and music which do not make an argument; not involved
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High vs Low + Marketing Mix
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high - builds image, exclusive distribution, ads + personal selling
low - build habits, stock everywhere, maintain quality
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Trigger Features
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a filtering of exposure, comprehension, and retention.
ex: color crystals are better, product name, etc.
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Perceived Risk
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obtain seals of approval, secure endorsements, provide free trails/samples, give extensive instructions, provide warranties/guarantees
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Psychographics |
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putting flesh on the bare bones of demographics.
PRIZM > VALS. putting people into 8 categories. psychology, life style, and demographics
ex. best buy
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Popcorn Example
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people are what was in front of them. eat more if in bigger container
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Marketing's 3rd task
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getting your brand into the consumer's evoked set (one of the brands that they consider)
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Focus groups + interview guide
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focus groups are informal sessions of 6 to 10 past, present, or prospective customers in which a discussion leader asks their opinions about the firm's and its competitors' products, how they use them, and special needs they have that the products don't address. hearing needs they have that the products don't address. watch customer actions. finding next "cool" thing.
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observational research + contrived observation
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ex: mystery shopper, videotaping, ethnographic research
contrived observation - went to pharmacists, talked about problems. got suggested medicine.
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projective tests (vampires)
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a certain image produces different images/feelings
cockroaches and men
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good v. bad experiment. milliman, fisher price
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music changing buying habits (milliman). good. effects of color "sit where you want" bad
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secondary data
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Secondary data -> facts + figures that have already been recorded before the project at hand.
- internal
- external
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Questionaires + rules
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pretest as much as possible, use close ended questions, figure out purpose before hand. do qualitative work before you develop questions
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small vs. big sample
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higher response rate is more important than a large sample
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single source data, advantages how it works
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allows you to quantify the impact of new creative + alternative media plans including new copy rotation strategies, different day part mixes, no reduced spending plan. behavior scans can measure the impact of advertising on actual consumer behavior at the household level, enabling analysis of advertising's impact on brand switching + different demographic groups
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price puzzles
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price = list price - incentives and allowances + extra fees. umass marketing t shirts, book trouble, jewelry
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lift time value
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once you buy one and like it, you are likely to buy again, even if price increases slightly. acquire + keep customer present value of future products. frequency + volume
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ways to set prices
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high demand, higher prices. early in the market, higher price. expensive to produce, set higher. most important --> competitors price
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perfume + jewelry
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upward sloping demand curve = jewelry. downward sloping = perfume
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wash burn guitars
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professional vs entry level. better guitars are more expensive. cheaper ones are made in factories. price is a move along the curve. adding more advertising changes curve
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your product price
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reference prices help. sometimes you can cut price without being perceived as cheap. books aren't seen as "good gifts" anymore. discounts have hurt the book industry
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decoy effect
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product used to get people into store but not actual selling point
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cause vs. mission
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cause is more helping a cause where as mission is actually taking action
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ethics of exchange + AMA
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both parties being better off after a transaction AMA promotes highest standard of professional ethical norms and values for its members. faster trust, do no harm. communicate ethical values that will improve customer confidence
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