LECTURE 1
Marketing definition;
o Marketing is the activities that companies undertake with a view to create exchange products and values with their customers. The aim is to attract new customers and retain a sustainable market share and grow the current customers. Marketing functions assist with these aims.
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Marketing- the activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients and society.
o These are split into two aspects: macro (flow of nations goods and services to benefit society) and micro marketing (how an organisation directs its activities and allocates its resources to benefit its customers)
Evolution of marketing concept
o Marketing system describes the exchange process and flow of communication and goods from industry to consumers, flow of money and feedback.
o The production concept ‘consumers favour products that are highly affordable and available > focused on obtaining economies of scale.
o The product concept ‘products that offer most quality, performance and innovative features’ >focused on marketing efforts such as R&D to produce successful products.
o The selling concept ‘consumers will not buy products unless companies undertake a large- scale selling and promotion efforts >focus on sales process to sell quantities.
o The marketing concept ‘achieving organisational goals depends on knowing needs and wants of target market and meeting consumer demands better than the competition.
(outside-in approach, compared to inside-out in selling concept) >focus on tailoring product to consumer needs.
o The societal-marketing concept ‘deliver value to customers in a way that maintains or improves consumers and society’s wellbeing focus>profit, human welfare and want satisfaction.
Understanding the key marketing concepts including marketing exchange
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The Marketing Process-
to create value for customers and building customer relationship.1. Understand the marketplace and customer needs, wants and demands.
Needs, Wants Demands
Needs- a state of deprivation of some BASIC satisfaction Wants- desires for specific satisfiers of the deeper needs
Demands- wants for specific products that are backed by an ability and willingness to buy them
Market Offerings: refers to some combinations of goods, services and experiences that can be offered to a market to satisfy a need or want.
Customer perceived value is the customer’s evaluation of the difference between all the benefits and costs of the market offerings relative to the competition
Exchange, transactions and relationships
Exchange is to obtain products or services from someone offering something in return; transaction is the basic unit of exchange; relationship is the likely outcome of successful transactions.
The product market extension grid;
o The Boston Consulting Group's growth market share matrix is one way a company can examine its portfolio of different products or SBU's.
o Categorising these SBU's as stars, cash cows, question marks or dogs, the MATRIX enables managers to make effective decisions on HOW the company should grow. (Invest, hold, harvest or divest)
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o Market penetration- making more sales to current customers without changing products o Market development- identifying and developing new markets for its current products o Product development- offering modified or new products to current markets
o Diversification- starting up or buying businesses outside of its current products and markets.
Customer-driven marketing strategy
o To attract the max potential audience for a product, businesses carry out: market segmentation, market targeting, differentiation and positioning.
o Market segmentation divides the market into distinct groups of buyers according to their different needs, characteristics or behaviour.
o Market targeting is evaluating each market segment attractiveness and selecting one or more segments to enter
o Differentiation of a company’s market offerings to give consumers more value.
o Positioning is the place products occupy relative to competitors in consumer minds.
Marketing Organisation structure
o Functional organisation – different activities performed by specialist i.e. sales department o Geographic organisation – utilised in a company that sells nationally or globally
o Product management organisation – in companies with different products and brands i.e.
Bunnings
o Market or customer management organisation – sell one product to many customers o Large companies use a combination of these
LECTURE 4
Consumer behaviour
o refers to the buying behaviour of individuals and households who buy goods and services for personal consumption
Various factors affecting consumer behaviour
Cultural factors:
o Culture is defined as the set of basic values perceptions, wants and behaviours learned by a member of society from family and other important institutions. Cultural shifts may impact on the level of demand for a product or service.
o Subcultures- a group of people with shared value systems based on common life experiences and situations within the larger culture that have identifiable patterns of behaviour.
o Social class- relatively permanent divisions of society whose members share similar values, interests and behaviours. Social class is determined by a combination of occupation, income, education, wealth and other variables.
Social Factors:
o Groups and social networks involve two or more people who interact to accomplish individual or mutual goals. Primary group- family, regular by informal interaction; Secondary groups- religious groups, more formal and less interaction
o Role and Status: activities people are expected to perform(roles) and general esteem given to the role by society (status)
o Reference groups- a group to which an individual or another group is compared to and have direct/indirect influence on attitudes, values, priorities and beliefs. Also consists of aspirational groups/ opinion leaders.
LECTURE 12
Sustainability and Related issues
Sustainable marketing is the process of adopting environmentally responsible marketing decisions to help develop and profit socially beneficial products/service.
o Two major movements: consumerism- organised movement of citizens to improve rights and power of buyers in relation to sellers and environmentalism- organised movement of concerned citizens to protect and improve people’s living environments
o High prices- charging too high price
o Deceptive pricing- falsely advertising a large price reduction; promoting – and advertising it to lure customers in; and packaging- exaggerating beneficial contents, misleading labelling o Societal marketing- considering consumer wants and interests
Deficient products- neither immediate appeal or long-run benefits
Pleasing products- high immediate satisfaction but may hurt consumers in long-run Salutary products- low appeal but benefit consumers in the long-run
Desirable products- both high immediate satisfaction and long-run benefits.
o Legal compliance- to ensure organisations act ethically and legally…
