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Abraham Maslow’s Motivation Theory (5 types of needs), MARKETING…
Abraham Maslow’s Motivation Theory
(5 types of needs)
Physiological Needs:
food
water
air
1
Safety Needs:
healthcare
limits
house
2
Belongingness Needs
relationships
work
family
3
Self-Actualization Needs
personal growth
development
fulfillment
5
Esteem Needs
status
personal worth
reputation
4
MARKETING ORIENTATIONS
Production concept: products that are affordable and available => boost production and distribution
Selling concept: have more profits by improving the sold volume=> large scale selling and promotion
Product concept : best quality, performance, innovation features in the product=> make improvements
Societal marketing concept: company should make good marketing decisions to balance customers' wants, company requirements, society's long-run interests
Marketing concept: understand needs and wants and deliver satisfaction better than their competitors=.> delivery better satisfactions than their competitors
MARKET SEGMENTATION
Geographic segmentation:
•By city, county, state, region, country, or international region.
•By rural, suburban, and urban market segments.
•By climate or total population in each area.
Behavioral segmentation:
knowledge, attitudes, uses, or responses to a product.
Psychographic segmentation: social class, lifestyle, or personality characteristics.
Demographic segmentation:age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality.
W4: Product & Branding strategy
Product definition and classifications
A product is anything that can be offered to a market for attention, acquisition, use or consumption
A product or a company’s market offering often includes both tangible goods and services.
Pure services: massage, hair cut,..
Goods-and-services combinations: car showroom with repairment service
pure tangible goods: toothpaste, instant noodle,...
Organizations (profit an non-profit): RMIT, Red Cross
3 levels of products
Actual product: brand name, features, design, quality level,..
Augmented product: delivery and credit, installation, warranty
Core customer value:fundamental need that the customer satisfies when they buy the product.
Product classification
Industrial product
Consumer product
shopping: phone, furniture, clothing,..
specialty: luxury goods
convenience: toothpaste, magazines,..
unsought: life insurance, blood donations
Product life cycle
Growth
Maturity
Introduction
Decline
Product development
Product decision
Product line decisions: A range of products come from the same brand and category but different features
Line stretching: lengthen a firm’s product beyond its current range, by downward, upward or both ways.
Line filling: adding more items within the present range of the line. E.g. Coke’s various flavor products.
Individual products and service decisions
Packaging: involves designing and producing the container or wrapper for a product.
labelling identify the product or brand, describe attributes, and provide promotion.
product support service: a company’s offer usually includes some support services.
product attributes:
Performance quality (level): the ability of a product to perform its functions, this supports the positioning.
Conformance quality (consistency): free from defects and consistent in delivering a level of performance.
Branding:a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service
Product mix decisions: product lines and items that a particular seller offers for sale.
Branding strategy
Brand name selection
Selection
Proctection
Brand sponsorship
Store brands (private brands): retailers and wholesalers create their own brands
Licensed brand: some companies license names or symbols previously created by other manufacturers
National brands: manufacturers sell their output under their own brand names.
Co-brand: occurs when two established brand names of different companies are used on the same product.
Brand positioning
Benefits
Beliefs & values
Brand attributes
Brand development
Brand Extension Strategy :extending an existing brand name to new product categories
Multi-brands :different brands in a given product category
Line Extension Strategy :extending an existing brand name to new forms, colors, sizes, ingredients or flavors
New brands are used when existing brands are inappropriate for new products in new product categories or markets.
W7: PLACE
The nature of marketing channels and value creation
Function of marketing channel members
Promotion
Contact
Information
Matching
Negotiation
Financing
Risk taking
Marketing channels (distribution channels)
Intermediaries
Type of distribution channels
Indirect marketing channel: >= 1 intermediaries
Direct marketing channel: 0 intermediaries
Marketing channel design
Setting channels objectives
Identifying major alternatives
Exclusive distribution (porsche, hermes,..)
Selective distribution (iphone, electric devices,...)
Intensive distribution (groceries, staple,...)
Analyzing customer needs
Evaluating major alternatives
Channel behavior & channel organization
Channel conflict
Horizontal conflicts occurs among firms at the same level of the channel.
Vertical conflicts occurs between different levels of the same channel.
Channel organization/ distribution systems
Vertical marketing network
Contractual VMN: manufacturer-sponsored retailer franchise network (Ford, Honda..). Service-firm-sponsored retailer franchise networks (burger king, KFC,..)
Administered VMN:A vertical marketing network that coordinates successive stages of production and distribution
Corporate VNMN: vertical marketing network that combines successive stages of production and distribution under single ownership; channel leadership is established through common ownership.
Horizontal marketing network: happens when two or more companies at one level join together to follow a new marketing opportunity.
Conventional marketing channel
Multichannel distribution network
Supply chain & value delivery networks
Supply chain:
A system of efficiently and effectively producing, making and getting products to end-users supply
Two types of partners:
Upstream partners include raw material suppliers, components, parts, information, finances, and expertise to create a product or service.
Downstream partners include the marketing channels or distribution channels that look toward the customer.
Value Delivery Network: The network made up of the marketing organization, suppliers, distributors and ,ultimately, customers who partner with each other to improve the performance of the entire system in delivering customer value.
W5: PRICE
Pricing framework
Determine costs
Analyze factors affecting pricing decision
Estimate demand
Determine pricing strategies and pricing policies for making price adjustments
Set pricing objectives
Set initial prices
Offer and make price adjustments as needed
Major pricing strategies
Cost-based pricing: setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for its effort and risk
Fixed costs: are the costs that do not vary with production or sales level
Total cost: are the sum of the fixed and variable costs for any given level of production
Variable cost: are the costs that vary with the level of production
Competition-based pricing: setting prices based on competitors’ strategies, costs, prices, and market offerings
Customer value-based pricing strategies: setting the price based on buyers’ perceptions of value, rather than on the seller’s cost
Good value pricing: Offering just the right combination of quality and good service that customers want at a fair price.
Value-added pricing: Rather than cutting prices to match competitors’ prices, marketers adopting this strategy attach value-added features and services
Operational pricing strategies
Product-mix pricing strategies
Optional-product pricing
Captive-product pricing
Product-line pricing
Product-bundle pricing
Price-adjustment strategies
Psychological pricing:
odd pricing ($1.99) “8” is an auspicious number to the Chinese. It sounds like prosperity
Promotional pricing: temporarily price their products below list price and sometimes even below cost to create buying excitement and urgency.
Segmented pricing
Location-based pricing
Product-form pricing
Time-based pricing
Customer-segmented pricing
Dynamic pricing
Adjusting prices continually to meet the needs of buyers and market situations
Discounts: straight reduction in price during a start period of time or when purchasing larger quanities
New-product pricing strategies
Market-skimming pricing:
Setting a high price for a new product to skim maximum revenue from the segments willing to pay the high price; the company makes fewer but more profitable sales.
Market-penetration pricing:
Setting a low initial price for a new product in order to penetrate the market quickly and deeply - to attract a large number of buyers and a large market share.
MARKETING EVIRONMENT
Microenvironment (internal factors)
Publics:any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives
Local publics: local people, community,...
Citizen-action publics: environment groups,..
Media publics: Kenh14,..
Financial publics: banks, investors,..
Government publics: local authorities,..
General publics: image of the company affects its buying
Internal publics: workers, managers,..
Customers
Government market: government agencies buy goods to produce public services
Reseller markets: buy good to resell for a profit
Business market: buy goods to produce their products
International market: can be any type ahead but they are overseas
Consumer markets: individual, household,..
The company: the relationship of the Marketing Management with other groups or departments of the company (eg: Finance, R&D,..)
Marketing intermediaries: : + Resellers: Vinmart, local market,.. + Physical distribution firms : Dai Bang logistics,.. + Marketing services agencies: Blue Agency Vietnam,.. +Financial intermediaries: insurance company, banks,...
Suppliers: + Provide the resources needed to produce the company's goods and services +Partners to provide customer value
Competitors:
Indirect competitors: dissimilar products that satisfy the same need
Direct competitor: from manufacturers of similar products
Macro environment (external)
Natural environment: attention to environmentally sustainable strategies
Technological: most dramatic force t create products and innovations
Economic : factors that affect consumer buying power based on income and their spending patterns
Political: influenced by laws, government agencies and pressure groups
Demographic trends: age, family structure, geographic population shifts, educational characteristics, population diversity
Cultural: society basic values, perceptions, behaviors
Givaudan: Inilever, P&G,...
Tips: company profits, consumer wants, and society’s interests.
=> Balance to choose the best strategies