BA 590

Basic Marketing Concepts Overview

BA 590 Marketing Review Modules

Marketing Concepts Customer Needs Industry Competition Target Marketing, Segmentation, and Marketing Research New Product Development and Sales
1-5

BA 590

Module 1

Basic Marketing Concepts

The Marketing Concept

Customer Satisfaction Total Company Effort

The Marketing Concept

Profit

Utility and Marketing

From Production Time Form

Utility
Value that comes from satisfying human needs Place

Task

Possession

Exhibit 1-1
1-6

From Marketing

Customer Value

Costs

Benefits

One customers views may vary from another customers view, so firm may not be able to satisfy everybody Customer value concept takes the customers point of view, but customers may not explicitly weigh costs and benefits

The Marketing Management Process

Whole-Company Strategic Management Planning Adjust Plans As Needed

Marketing Planning

Control Marketing Plan(s) and Program

Implement Marketing Plan(s) and Program

The Four Ps of the Marketing Mix

Product

Place

C
Price Promotion

Four Ps Strategy Decision Areas

Product
Physical Goods Service Features Quality Level Accessories Installation Instructions Warranty Product Lines Packaging Branding

Place
Objectives Channel Type Market Exposure Kinds of Middleman Kinds and Locations of Stores How to Handle Transporting and Storing Service Levels Recruiting Middlemen Managing Channels

Promotion
Objectives Blend Salespeople Kind Number Selection Training Motivation Advertising Targets Kinds of Ads Media Type Copy Thrust Who Prepares? Sales Promotion Publicity

Price
Objectives Flexibility Level over PLC Geographic Terms Discounts Allowances

Marketing Strategy Planning Process

Narrowing down to focused strategy with screening criteria
Customers S. W. O. T. Segmentation & Targeting
Product Place

Company

Target Market Differentiation & Positioning

Price Promo

Competitors

External Market Environment

SWOT Analysis

Strengths

Opportunities

Internal Factors

Strategy Planning

External Factors

Weaknesses

Threats

18-5

Strategy Planning for Advertising

Target Market

Product

Place

Promotion

Price

Personal Selling Advertising

Mass Selling

Sales Promotion Publicity

Target audience

Kind of advertising

Media types

Copy thrust

Who will do the work?

Exhibit 15-1
15-3

Basic Promotion Methods

Target Market

Product

Place

Promotion

Price

Personal Selling

Mass Selling

Sales Promotion

Advertising
Exhibit 13-1
13-3

Publicity

Pricing Objectives
Profit Oriented
Target Return Maximize Profits Dollar or Unit Sales Growth Growth in Market Share Meeting Competition Nonprice Competition

Pricing Objectives

Sales Oriented

Status Quo Oriented

Exhibit 16-4
16-4

Strategy Planning for Price

Target Market

Product

Place

Promotion

Price Pricing objectives

Price flexibility

Price levels over product life cycle

Discounts and allowances to whom and when

Geographic term who pays transportation and how

Exhibit 16-1
16-3

Key Factors That Influence Price Setting

Pricing objectives Price of other products in the line Price flexibility Discounts and allowances

Demand

Price settin g

Cost

Legal environment Geographic pricing terms

Competition Markup chain in channels

Exhibit 17-1
17-3

Markups
50.00 30.00

24.00 Markup = 6.00 = 20% Markup = 2.40 = 10%

Markup = 20.00 = 40%

Cost = 30.00 = 60% Cost = 24.00 = 80% Wholesaler Retailer

Cost = 21.60 = 90% Producer

Exhibit 17-2
17-4

BA 590

Overview of Module 2

Customer Needs

A Model of Buyer Behavior

Marketing Mixes All Other Stimuli

Psychological Variables
Motivation Perception Learning Attitude Personality/Lifestyle

Social Influence
Family Social Class Reference Groups Culture

Purchase Situation
Purchase Reason Time Surroundings

Person Making Decision

Problem-Solving Process
Exhibit 5-2
5-5

Person Does or Does Not Purchase (Response)

The PSSP Hierarchy of Needs

Personal Needs

Social Needs

Safety Needs

Physiological Needs
Exhibit 5-4
5-6

The Consumer Problem Solving Process

Marketing mixes All other stimuli

Psychological Variables
Person making decision

Social Influences

Purchase Situation

Need-want Awareness Routinized Response Information Search

Set Criteria
Decide on Solution

Feedback of information as attitudes

Postpone Decision
Exhibit 5-9
5-13

Purchase Product

Response

Postpurchase Evaluation

Levels of Problem Solving

Low involvement Frequently purchased Inexpensive Little risk Little information needed High involvement Infrequently purchased Expensive High risk Much information desired

Routinized Response Behavior

Limited Problem Solving

Extensive Problem Solving

Low Involvement

High Involvement

Involvement Continuum
Exhibit 5-11
5-14

BA 590

Overview of Module 3

Industry Competition

The Competitive Environment

Kinds of Markets

Competitor Analysis Key Concepts in the Competitive Environment

Competitive Rivals

Competitive Barriers

Information on Competitors
4-6

Types of Retailers
Expanded assortment and service
Specialty shops and department stores

Conventional offerings

Singleand limitedline stores

Expanded assortment and/or reduced margins/service Added convenience higher margins less assortment Expanded assortment reduced margins more information

Supermarkets, discount houses, mass-merchandisers, supercenters

Telephone/mail order, vending machines, door-to-door, convenience stores, electronic shopping

Internet

Exhibit 12-1
12-4

Types of Wholesalers
Does wholesaler own the products? Yes (merchant wholesaler) How many functions does the wholesaler provide? Some functions No (agent middleman)

Agent middlemen

All the functions

Limited-function merchant Wholesalers

Service merchant wholesalers

Exhibit 12-5
12-9

Four Examples of Basic Channels of Distribution for Consumer Products

Manufacturer or producer
Citibank Nissan Del Monte Wholesaler Procter & Gamble Wholesaler

Wholesaler Retailer Retailer Retailer

Consumer
Exhibit 10-2
10-5

BA 590

Overview of Module 4

Target Marketing, Segmentation & Marketing Research

Market Segmentation
A. Product-market showing three segments
Status dimension Status dimension Dependability dimension Dependability dimension

B. Product-market showing six segments

Marketing Information Systems

New Information

Informatio n Sources
Market Research Studies

Questions and Answers

Marketing Models

Decisio n Maker
Answers

Result s

?
Inputs Databases Decision Support System (DSS)

Internal Data Sources

Marketing Manager Decisions

Outcomes

External Data Sources

Information Technology Specialists Feedback

Exhibit 7-1
7-3

Marketing Research Process

Early Identification of Solution

Defining the Problem

Analyzing the Situation

Getting ProblemSpecific Data

Interpreting Data

Solving the Problem

Feedback to Previous Steps Exhibit 7-2

7-4

Sources of Data
Secondary Data Sources All Data Sources Primary Data Sources Inside Company

Outside Company

Observation

Questioning

Exhibit 7-3
7-5

BA 590

Overview of Module 5

Product Development

The Adoption Curve

Innovators (3-5%)
90

Early Adopters (10-15%)

Early Majority (34%)

Late Majority (34%)

Laggards/ Nonadopters (5-16%)

Percent Adoption

50

20

5 0

Exhibit 13-7
13-14

Time

The Adoption Curve

Innovators:
First to Adopt, Eager to Try Young, Well-Educated, Mobile Seek Info from non-salesperson Sources

Early Adopters
Opinion Leaders Greater Contact with Salespeople Word-of-Mouth

The Adoption Curve

Early Majority:
Avoid Risk, Try Only if Others Have

Usually are Not Opinion Leaders

Late Majority:
Cautious About New Ideas, Older

and More Set in Their Ways More Subject to Peer Pressure

The Adoption Curve

Laggards:
Suspicious of New Ideas Do Things the Way that They Have

Always Been Done

The Product Life Cycle

Market Introduction Market Growth Market Maturity Sales Decline

Total Industry Sales + Total Industry Profit Time

Exhibit 9-1
9-3

$0

Defining Product
Target Market

Product

Place

Promotion

Price

Product Idea
Physical good/service Features Quality level Accessories Installation Instructions Product line Exhibit 8-1
8-3

Brand

Package

Warranty

Type of Brand: Individual or family Manufacturer or dealer

Protection, Promotion, or both

None, full, or limited

The Transporting Function

Rail

Truck

Modes of Transportation

Air Pipeline Water

Push-Pull Strategies
Personal Selling, Sales Promotion, Advertising, Publicity Promotion to Channel Members

Producers Promotion Blend

Promotion to Business Customers

Wholesaler Promotion Push

Wholesaler Promotion Push

Promotion to Final Customers

Retailer Promotion Push

Exhibit 13-6
13-13

Business Customer Pull

Final Consumer Pull