Crash Course on Kotler concepts

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Crash Course on Kotlers concepts, includes all concepts

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  • 3 2 Characteristics Affecting Consumer Behavior Culture: The most basic influence on a person's values, priorities, and beliefs. Cultural shifts make marketing opportunities, although most changes are in secondary rather than core cultural values. Subcultures are important markets as these groups often differ in their needs and warrant different marketing approaches. Social: Social class is determined by a combination of income, occupation, education, wealth, and other variables. Social factors in one's class affecting behavior include reference groups & aspirational groups. Families also exert strong social influences. Finally, each relationship a person has with his or her group carries with it certain roles and status that may carry consumptive responsibilities. Personal: Major personal factors are age and life cycle stage, occupation, economic situation, life style and personality/self-concept. Texts vary in their treatment of the PLC stages but it is clear that singles buy different products than do young marrieds with small children. Occupations differ in time constraints and social pressures to conform that affect consumption decisions. Lifestyles reveal similar consumption patterns across otherwise dissimilar groups. The unique characteristics of each person that make up their personality also affect behavior. Psychological: Maslow's hierarchy says that need states vary in their intensity or motivation. Perception is the process of organizing stimuli and is influenced by selective exposure, distortion, & retention. Learning occurs in response to information linked to relevant drives, cues, responses, and reinforcement, only some of which is under the control of the marketer. Beliefs and attitudes, though shaped by cultural and social forces, may vary considerably by individual.
  • 7 6 Consumer Buying Roles Consumer Buying Roles Include Initiator -- the person who first suggests/thinks of buying a particular product or service. For example, Bill may suggest a Disney World trip for a family vacation. Influencer -- the person whose views or advice carries some weight in the final decision. This person may also influence the decision criteria used. For example, Dad's feelings about Florida may influence the Disney trip. Decider -- the person who authorizes the purchase. Mom's vacation time may be limited by her job schedule, so she decides when and where the family goes. Buyer -- the person who actual makes the purchase. For example, Jane may telephone the reservation at Disney World once given the authorization. User -- the person who consumes the product. For example, the whole family would use the Disney product. For equipment purchases like computers at universities, it might be students enrolled in courses coming to the computer lab.
  • Steps in Segmentation, Targeting, and Positioning Steps in Segmentation, Targeting, and Positioning Market Segmentation. Market segmentation is the process of dividing a market into distinct groups of buyers who might require separate products or marketing mixes. All buyers have unique needs and wants. Still it is usually possible in consumer markets to identify relatively homogeneous portions or segments of the total market according to shared preferences, attitudes, or behaviors that distinguish them from the rest of the market. These segments may require different products and/or separate mixes. Market Targeting. Market targeting is the process of evaluating each market segment's attractiveness and selecting one or more segments to enter. Given effective market segmentation, the firm must choose which markets to serve and how to serve them. Discussion Note: In targeting markets to serve the firm must consider its resources and objectives in setting strategy. Market Positioning. Market positioning is the process of formulating competitive positioning for a product and a detailed marketing mix. Marketers must plan how to present the product to the consumer. Discussion Note: The product's position is defined by how consumers view it on important attributes.
  • The Marketing Communications Mix This CTR relates to the material on pp. 422-423. Tools of The Marketing Communications Mix Advertising. Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Advertising often utilizes mass media and may be adapted to take advantages of a given mediums strengths to convey information. Sales Promotion. Sales promotions consist of short-term incentives to encourage purchase of sales of a product or service. Limited time offers or dated coupons are common sales promotions. Public Relations. Public relations is an on-going process of building good relations with the various publics of the company. Key elements in the process are obtaining favorable publicity, building and projecting a good "corporate image," and designing an information support and response team to respond proactively to unfavorable rumors, stories, or events. Personal Selling. Personal selling describes the use of oral presentations in a conversation with one or more prospective buyers for the purposes of making a sale. Personal selling combines product information and benefits with the interpersonal dynamics of the sales person. Good interpersonal relationship skills and effective oral communication skills are needed for personal selling. Direct Marketing. Directed communications with carefully targeted individual consumers to obtain an immediate response.
  • Crash Course on Kotler concepts

    1. 1. 10/12/13 1- 1 Product or OfferingProduct or Offering Value and SatisfactionValue and Satisfaction Needs, Wants, and DemandsNeeds, Wants, and Demands Exchange & Transactions Relationships & Networks Exchange & Transactions Relationships & Networks Target Markets & SegmentationTarget Markets & Segmentation Marketing ChannelsMarketing Channels Supply ChainSupply Chain CompetitionCompetition Marketing EnvironmentMarketing Environment Core Concepts of Marketing
    2. 2. 10/12/13 1- 2 Price Promotion Cost Communication Marketing Mix Product Place Customer Solution Convenience The Four P’s vs. The Four Cs
    3. 3. 10/12/13 1- 3 Production ConceptProduction Concept Product ConceptProduct Concept Selling ConceptSelling Concept Marketing ConceptMarketing Concept Consumers prefer products that are widely available and inexpensive Consumers favor products that offer the most quality, performance, or innovative features Consumers will buy products only if the company aggressively promotes/sells these products Focuses on needs/ wants of target markets & delivering value better than competitors Company Orientations Towards the Marketplace
    4. 4. 10/12/13 1- 4 Image valueImage value Personnel valuePersonnel value Services valueServices value Product valueProduct value Total customer value Total customer value Monetary costMonetary cost Time costTime cost Energy costEnergy cost Psychic costPsychic cost Total customer cost Total customer cost Customer delivered value Customer delivered value Determinants of Customer Delivered Value
    5. 5. 10/12/13 1- 5 Measuring results Diagnosing results Taking corrective action ImplementationImplementationPlanningPlanning Corporate planning Division planning Business planning Product planning Organizing Implementing ControlControl Strategic Planning, Implementation, & Control Process
    6. 6. 10/12/13 1- 6 Limited number of goals Stress major policies & values Define competitive scopes Good Mission Statements
    7. 7. 10/12/13 1- 7 3 ? Question marks ? ? ? 2 1 Cash cow 6 Dogs 8 7 10x 4x 2x 1.5x 1x10x 4x 2x 1.5x 1x Relative Market Share .5x .4x .3x .2x .1x.5x .4x .3x .2x .1x Stars 5 4 Boston Consulting Group’s Growth-Share Matrix 20%-20%- 18%-18%- 16%-16%- 14%-14%- 12%-12%- 10%-10%- 8%-8%- 6%-6%- 4%-4%- 2%-2%- 00 MarketGrowthRate
    8. 8. 10/12/13 1- 8 Market Attractiveness: Competitive Position Portfolio Classification MARKETATTRACTIVENESSMARKETATTRACTIVENESS 5.005.00 3.673.67 2.332.33 1.001.00 LowLowMediumMediumHighHigh Relief valve Flexible diaphragms Fuel pumps Aerospace fittings Clutches Hydraulic pumps Joints StrongStrong MediumMedium WeakWeak BUSINESS STRENGTHBUSINESS STRENGTH 1.001.002.332.333.673.675.005.00 Invest/growInvest/grow Selectivity/earningsSelectivity/earnings Harvest/divestHarvest/divest
    9. 9. 10/12/13 1- 9 4. Diversification 2. Market development New markets 1. Market penetration Existing markets Existing products 3. Product development New products Intensive Growth Strategies: Ansoff’s Product/Market Expansion Grid
    10. 10. 10/12/13 1- 10 1 4 2 3 HighHigh LowLow HighHigh LowLow AttractivenessAttractiveness Success ProbabilitySuccess Probability OpportunitiesOpportunities Opportunity Matrix 1.1. Company develops a moreCompany develops a more powerful lighting systempowerful lighting system 2.2. Company develops a deviceCompany develops a device for measuring the energyfor measuring the energy efficiency of any lightingefficiency of any lighting systemsystem 3.3. Company develops a deviceCompany develops a device for measuring illuminationfor measuring illumination levellevel 4.4. Company develops aCompany develops a software program to teachsoftware program to teach lighting fundamentals to TVlighting fundamentals to TV studio personnelstudio personnel
    11. 11. 10/12/13 1- 11 Threat Matrix 1.1. Competitor develops aCompetitor develops a superior lighting systemsuperior lighting system 2.2. Major prolongedMajor prolonged economic depressioneconomic depression 3.3. Higher costsHigher costs 4.4. Legislation to reduceLegislation to reduce number of TV studionumber of TV studio licenseslicenses 1 4 2 3 HighHigh LowLow HighHigh LowLow SeriousnessSeriousness Probability of OccurrenceProbability of Occurrence ThreatsThreats
    12. 12. 10/12/13 1- 12 SkillsSkills Shared values Shared values StaffStaff StyleStyle StrategyStrategy StructureStructure SystemsSystems The McKinsey 7-S Framework
    13. 13. 10/12/13 1- 13 Sell the productMake the product ProcureDesign product Make Price Sell Advertise/ promote Distribute Service (a) Traditional physical process sequence (b) Value creation & delivery sequence Choose the Value Provide the Value Communicate the Value Strategic marketing Tactical marketing The Value-Delivery Process
    14. 14. 10/12/13 1- 14 Executive Summary & Table of Contents Current Marketing Situation Opportunity & Issue Analysis Objectives Marketing Strategy Action Programs Projected Profit-and-loss Controls The Marketing Plan
    15. 15. 10/12/13 1- 15 Defining the Problem & Research Objectives Exploratory Research Descriptive Research Causal Research •Test cause-and-effect relationships. •Tests hypotheses about cause- and-effect relationships. •Test cause-and-effect relationships. •Tests hypotheses about cause- and-effect relationships. •Sheds light on problem - suggest solutions or new ideas. •Sheds light on problem - suggest solutions or new ideas. •Ascertain magnitudes.•Ascertain magnitudes.
    16. 16. 10/12/13 1- 16 Research Approaches BehavioralBehavioral Focus-groupFocus-group SurveySurvey ExperimentalExperimental ObservationalObservational
    17. 17. 10/12/13 1- 17 Secondary Data Sources • Internal SourcesInternal Sources • Government PublicationsGovernment Publications • Periodicals and BooksPeriodicals and Books • Commercial DataCommercial Data • On-LineOn-Line • AssociationsAssociations • Business InformationBusiness Information
    18. 18. 10/12/13 1- 18 The Marketing Research Process Defining theDefining the problem andproblem and researchresearch objectivesobjectives Defining theDefining the problem andproblem and researchresearch objectivesobjectives DevelopingDeveloping the researchthe research planplan DevelopingDeveloping the researchthe research planplan Collect theCollect the informationinformation Collect theCollect the informationinformation Analyze theAnalyze the informationinformation Analyze theAnalyze the informationinformation Present thePresent the findingsfindings Present thePresent the findingsfindings
    19. 19. 10/12/13 1- 19 Good Marketing Research... • Is scientificIs scientific • Is creativeIs creative • Uses multiple methodsUses multiple methods • Realizes interdependence of models & dataRealizes interdependence of models & data • Acknowledges the cost & value of informationAcknowledges the cost & value of information • Maintains “healthy” skepticismMaintains “healthy” skepticism • Is ethicalIs ethical
    20. 20. 10/12/13 1- 20 Buyer’s decision process Problem recognition Information search Evaluation Decision Post-purchase behavior Other stimuli Economic Technological Political Cultural Buyer’s characteristics Cultural Social Personal Psychological Buyer’s decisions Product choice Brand choice Dealer choice Purchase timing Purchase amount Marketing stimuli Product Price Place Promotion Model of Buying Behavior
    21. 21. 10/12/13 1- 21 CulturalCultural SocialSocial Family & LifestyleFamily & Lifestyle PsychologicalPsychological BuyerBuyer Characteristics Affecting Consumer Behavior
    22. 22. 10/12/13 1- 22 Consumer Buying Roles DeciderDecider BuyerBuyer UserUser InfluencerInfluencer InitiatorInitiator Key Family Decision Roles
    23. 23. 10/12/13 1- 23 Complex Buying Behavior Dissonance- Reducing Buying Behavior Variety- Seeking Behavior Habitual Buying Behavior Significant differences between brands Few differences between brands High Involvement Low Involvement Four Types of Buying Behavior
    24. 24. 10/12/13 1- 24 ProblemProblem recognitionrecognition Information search Evaluation of alternatives Purchase decision Post-purchase behavior Consumer Buying Process
    25. 25. 10/12/13 1- 25 Total Set Aware- ness Set Consid- eration Set Choice Set Decision Decision Making Sets
    26. 26. 10/12/13 1- 26 Potential Entrants (Threat of Mobility) Potential Entrants (Threat of Mobility) Buyers (Buyer power) Substitutes (Threats of substitutes) Suppliers (Supplier power) Suppliers (Supplier power) Industry Competitors (Segment rivalry) Five Forces Determining Segment Structural Attractiveness
    27. 27. 10/12/13 1- 27 Specific Attack Strategies • Price-discountPrice-discount • Cheaper goodsCheaper goods • Prestige goodsPrestige goods • Product proliferationProduct proliferation • Product innovationProduct innovation • Improved servicesImproved services • Distribution innovationDistribution innovation • Manufacturing cost reductionManufacturing cost reduction • Intensive advertisingIntensive advertising promotionpromotion
    28. 28. 10/12/13 1- 28 1. Identify Bases for Segmenting the Market 2. Develop Profiles of Resulting Segments 3. Develop Measures of Segment Attractiveness 4. Select Target Segment(s) 5. Develop Positioning for Each Target Segment 6. Develop Marketing Mix for Each Target Segment Market Positioning Market Targeting Market Segmentation Steps in Segmentation, Targeting, & Positioning
    29. 29. 10/12/13 1- 29 Bases for Segmenting Consumer Markets Occasions, Benefits, Uses, or Attitudes Behavioral Geographic Region, City or Metro Size, Density, Climate Demographic Age, Gender, Family size and Fife cycle, Race, Occupation, or Income ... Lifestyle or Personality Psychographic
    30. 30. 10/12/13 1- 30 Product Differentiation Form Features Perfor- mance Quality Conform- ance Quality Durability Reliability Repair- ability Style Design
    31. 31. 10/12/13 1- 31 Differences Worth Establishing AffordableAffordable SuperiorSuperior ProfitableProfitable PreemptivePreemptive DistinctiveDistinctive ImportantImportant
    32. 32. 10/12/13 1- 32 …… the act of designing thethe act of designing the company’s offering and image tocompany’s offering and image to occupy a distinctive place in theoccupy a distinctive place in the the target market’s mind.the target market’s mind. p. 298 Positioning is...
    33. 33. 10/12/13 1- 33 IdeaIdea GenerationGeneration ConceptConcept DevelopmentDevelopment and Testingand Testing MarketingMarketing StrategyStrategy DevelopmentDevelopment IdeaIdea ScreeningScreening BusinessBusiness AnalysisAnalysis ProductProduct DevelopmentDevelopment MarketMarket TestingTesting CommercializationCommercialization New Product Development Process
    34. 34. 10/12/13 1- 34 What is a Brand? Attributes Benefits Values Culture User Personality
    35. 35. 10/12/13 1- 35 Brand Strategies Brand Extension New BrandName Product Category Line Extension Existing Existing MultibrandsNew New Brands
    36. 36. 10/12/13 1- 36 The Three C’s Model for Price Setting Costs Competitors’ prices and prices of substitutes Customers’ assessment of unique product features Low Price No possible profit at this price High Price No possible demand at this price
    37. 37. 10/12/13 1- 37 AdvertisingAdvertising Personal SellingPersonal Selling Any Paid Form of Non-personal Presentation by an Identified Sponsor. Any Paid Form of Non-personal Presentation by an Identified Sponsor. Sales Promotion Short-term Incentives to Encourage Trial or Purchase. Public Relations Direct Marketing Direct Communications With Individuals to Obtain Immediate Response. Protect and/or Promote Company’s Image/products. Personal Presentations. The Marketing Communications Mix
    38. 38. 10/12/13 1- 38 Advertising Public, Pervasive, Expressive, Impersonal Advertising Public, Pervasive, Expressive, Impersonal Sales Promotion Communication, Incentive, Invitation Sales Promotion Communication, Incentive, Invitation Public Relations & Publicity Credibility, Surprise, Dramatization Public Relations & Publicity Credibility, Surprise, Dramatization Personal Selling Personal Confrontation, Cultivation, Response Personal Selling Personal Confrontation, Cultivation, Response Direct Marketing Nonpublic, Customized, Up-to-Date, Interactive Direct Marketing Nonpublic, Customized, Up-to-Date, Interactive Step 6: Decide on Communications Mix

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