Please enable JavaScript.
Coggle requires JavaScript to display documents.
Introduction to Marketing - Coggle Diagram
Introduction to Marketing
Ch.1: Creating Customer Value and Engagement
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
What is marketing about?
Product management: creating value
Brand management: communicate value
Customer management: deliver value to customers
Ch.2: Company and Marketing Strategy
Market segmentation
: dividing the markets into different segments of customers
Target marketing
: selecting which segments to serve
3 Considerations in setting marketing strategies:
Consumer wants
Company profits
Society's interests
4Ps:
Product
: need-satisfying 'market offering'
Price
: how to charge for that offering
Place
: where this offering will be available to target consumers (distribution)
Promotion
: engage the target customer, communicate/persuade about the value of its offering
Ch.3: Analysing the Market Environment
Ch.4: Managing Marketing Information to gain Customer Insights
Key terms:
Market penetration
:
Growth by increasing sales of current products to current market segments
Market development
:
Growth by developing new market segments with current company products
Capture new markets with existing product
Product development
:
Growth by modified products or new products to current standards
Diversification
:
Growth by starting up or acquiring new businesses outside company's current portfolio, products and markets
E.g. Coca Cola in drinking water business with Dasani
4Cs:
Consumer Solution/Needs
Customer Cost
Convenience
Communication
Ch.5: Consumer Markets and Buying Behaviour
Micro-environment:
: Actors close to company
Suppliers: provide resources
Intermediaries: actors that help sell, promote and distribute
Competitors
Publics: interest or potential groups (financial, media, government etc.)
Customers
Macro-environment
: Broader forces/external to company
Demographics
Social-cultural environment
Economic
Political and legal
Natural-ecological forces
Technological
Influencers of consumer behaviour
:
Cultural
Social
Personal
Psychological
Cultural influencers:
Set of values, perceptions, wants and behaviours learned by a member of society, from family or other important institutions
Subcultures: groups with shared value systems based on common life experiences/situations
Cross-cultural marketing: practice of including ethnic themes and cross-cultural perspectives with mainstream marketing
Appeals to the similarities rather than differences with marketing communication
Social influencers:
Groups influence a person's behaviour
Reference groups: role model and inspiration (exposing people to new lifestyles, creating pressures to conform etc.)
Word of mouth influence: impact of personal words and recommendations of trusted friends, family, associates and other consumers on buying behaviour
Opinion leader influence: a person with a reference group, who (because of special skills), influences other buyer's behaviour
Buzz marketing: technique used for maximising word of mouth potential
Using opinion leaders as brand ambassadors or influencers
Online social networking: online communities where people socialise or exchange information and opinions
Family influence: most important buying organisation in society
Roles and status: people usually buy products according to their roles and status
Personal influencers:
Age and lifecycle stage
Occupation
Economic Situation
Lifestyle
Personality and self-concept
Brand personality
Sincerity
Excitement
Competence
Sophistication
Ruggedness
Psychological influencers:
Motivation
Buying behaviour is affected by subconscious motives
People are driven by particular needs at particular times
Learning: changes in an individual's behaviour arising from experience
Marketers must build up demand by associating the product with strong drives, motivating cues, and providing positive reinforcement
Perception: process by which people select, organise and interpret information to form a meaningful picture of the world
Selective attention
- screen out information
Selective distortion
- interpret information to support already existing beliefs
Selective retention
- remember good points a person favours
Buyer decision process
Complex buying behaviour:
Consumer is highly involved in the buying
Feels there are significant differences between brands
Buyer collects information about product features and goes through learning process to develop beliefs and attitudes before making the purchase
Variety seeking behaviour:
The consumer involvement is low while buying the product
But there are significant differences between brands and so consumer seeks variety
Generally buys different products - not due to dissatisfaction but instead to seek variety
Dissonance-reducing behaviour:
Consumer is highly involved in the purchase
But there are few differences between brands
Post-purchase dissonance; after-sale discomfort, noticing disadvantages, or advantages of another product
Habitual buying behaviour:
Low involvement of the customer
Few differences between brands
Consumers do not pass through the learning process, belief-attitudes behaviour sequences
The consumer buys the product quickly, e.g. toothpaste
Buying behaviours:
Need recognition:
Buyer recognises need/problem
Internal stimuli (hunger etc.)
External stimuli (advertising etc.)
Marketer must research consumer
Information search:
Buyer searches for more information
Personal sources: friends, family, colleagues, groups
Commercial sources: advertising, sales people
Public sources: mass ,media, consumer ratings
Experimental sources: examining and using the product
Information collection
Impact/influence of information on buyer varies depending on product and consumer
Traditionally most information comes from commercial sources
The most effective information comes from personal sources
Information is becoming more digital
Evaluation alternatives:
Buyer evaluates alternative brands
Evaluate carefully to impulse decision
Product/brand attributes with difference in importance
Marketers can affect purchase decision when they know the importance consumer places on attributes
Purchase decision:
Purchase intention - purchase decision
Attitude of other influencers
Unexpected situational factors: unexpected income, price, product benefits
Post-purchase behaviour:
Satisfaction or dissatisfaction of consumer?
Consumer expectations vs perceived product performance
Cognitive dissonance: buyer discomfort due to post-purchase conflict
Dissatisfaction after acquiring the product
Drawbacks of purchased product
Losing benefits of brand that was not purchased
Customer journey:
Discovery
Research
Engage
Purchase
Delivery
Post-purchase
Buying decision process for new products
:
Awareness - learns about product
Interest - seeks information
Evaluation - considers trial
Trial - tries in small scale
Adoption - full regular user
Ch.6: Business Markets and Buyer Behaviour
Who are business buyers?
Manufacturers/producers
Construction builders
Resellers
Retailers
Wholesalers
Distributors
Governments
Institutions
Consumer decision vs Business decision:
More complex
Large sums of money
Technical and economic considerations
Interaction with more people at different levels of organisations
Business buying process is longer and more formal
Buyer and seller more dependent on eachother
Types of B2B buying situations:
Straight rebuy:
Buyer reorders routinely without product modifications
In-suppliers maintain product/service quality
Out-suppliers try to add value, overcome dissatisfaction etc.
Modified rebuy:
Buyer modifies product specifications, prices, contract terms, or suppliers
In-suppliers must keep up - customer retention
Out-suppliers have the opportunity to make a better offer
New task:
First time purchase of a product or service
Reach through networking - types of deals made in social settings; unofficial
Identification of behavioural styles is useful to approach adequately
Systems selling - solution selling:
Business buys a packaged solution to a problem/need from single seller - companies want to avoid complex buying situation
E.g. J&J medical equipment - sells products and training of doctors in own operating rooms
Participants in buying process:
Buying centre
- all people involved in buying decision
Users
- help define product specifications
Influencers
- technical personnel
Buyers
- select vendors, suppliers and negotiate deal
Deciders
- often same as buyers
Gatekeepers
- control information flow to others
Stages in the business buying process:
Problem recognition
- what to buy, internal/external influence
Need description
- characteristics and quantity, relevance of reliability, durability, price etc.
Product specifications
Supplier search
- more and more turning to the internet
Proposal solicitation
- from qualified suppliers - both marketing and technical document
Supplier selection
- multiple sources, so no dependency
Order
- with specifications from buyer
Performance review
- continue, modify or drop arrangement
Ch.7: Customer Driven Marketing Strategy
Marketing segmentation
- dividing the market into smaller segments with distinct needs, characteristics or behaviours
Geographic segmentation
- customer preferences change based on geographic location
Demographic
- age, gender, income etc.
Psychographic
- social class, lifestyle, personality etc.; people can have same demographic group but different psychographic group
Types of segmentation
Lifestyle segmentation
Personality segmentation
Behavioural segmentation
International segmentation
Intermarket (cross-market) segmentation
Other