Marketing Notes
Ch 1
- Marketing is about understanding the needs of the customer
- Integrating all the organizations activities, including production, to satisfy customers wants
- Achieving long-term goals for the organization
- The production era focuses on marketing as a messenger
- The sales era is highlighted by the increased power of customer choice
- The marketing company era is highlighted by the coordination of marketing activities,
advertising, sales, and public relations into one department in an organization
- Societal marketing era, where a dual emphasis is put on looking at what the customer and
society both want
- Relationship marketing, is a strategy that focuses on keeping and improving relationships with
current customers
- An exchange is people giving up one thing to receive another thing they would rather have
- Money could be a medium of exchange
- The marketing mix involves the 4 P’s: product, price, place, and promotion
- Successful companies have a strong understanding of the importance of marketing
- No matter what discipline in business you choose to pursue, you will have customers
- Marketing provides both financial and personal rewards
- Careers in marketing are varied and offer many opportunities
Ch 5
- Human behavior flows from three main sources: desire, emotion, knowledge
- Consumer behavior describes how consumers make purchase decisions and how they use and
dispose of the purchased goods or services
- Understanding consumer behavior reduces marketing managers’ uncertainty when they are
defining a target market and design a marketing mix
- Consumer decision- making process has five steps involved
- First stage – need recognition: occurs when consumers are faced with an imbalance between
actual and desired states. This imbalance is triggered when consumer is exposed to stimulus.
Recognition of needs may be triggered by internal stimuli, such as hunger and thirst, or by
external stimuli such as package design, advertisements, or a brand name mentioned by a friend.
Advertising and sales promotion often provide this stimulus.
- Step two – internal information search: process of recalling information stored in one’s
memory. First, there is an internal search – you scan your memory for brands associated with
products. Second, there is an external search where you consult personal sources such as family
and friends, or public sources such as web sites or consumer reports, etc.
- Step three & four - evaluation of alternatives and purchase
- Consumers information should yield a group of the most preferred alternatives called evoked
set
- This step involves comparing objective criteria between the choices in the evoked set. Criteria
such as quality, price, functional components, etc.
- Step five – post purchase behavior: any doubts about purchasing
- Consumer involvement is the amount of time and effort you invest in the search, evaluation,
and decision processes prior to making a purchase
- Consumer behavior falls between three categories: routine response behavior, limited decision
making, and extensive decision making
- Routine implies these are frequently purchased, low-cost goods and services. They need only
low involvement time and effort – on search and decision by consumers before making the
purchase.
- Limited requires more time and effort. The consumer may have previous product experience
but is unfamiliar with the current brands available. A moderate effort is spent searching for
information or in considering alternatives.
- Extensive applies to unfamiliar, expensive products, or an infrequently bought item. This is the
most complex type of consumer buying decisions, and is associated with high involvement on
the part of the consumer.
- Factors determining the level of consumer involvement: previous experience, interest, perceived
risk of negative consequences, situation, social visibility
- High involvement product purchases, require managers to promote and give good adverts as
well
- Low-involvement, consumers may not recognize their wants until they are in the store. There
has to be focus on package design, promotion, displays, and coupons.
- Factors influencing consumer buying decisions: cultural factors, individual factors, social factors,
and psychological factors
- The family is the most important social institution for many consumers, influencing values,
attitudes, and buying behavior
- Culture is persuasive, functional, learned, and dynamic
- Most defining element of a culture is its values, consumers with similar value systems tend to
react similarly to various marketing-related inducements
- subculture is like a specific group of “other people”
- Education is a reliable indicator of a persons social and economic status
- Selective exposure: process where consumer decided which stimuli to notice and which to
ignore
- Selective distortion: occurs when consumers change or distort info that conflicts with their
feelings or beliefs
- Selective retention: process where consumer remembers only info that supports their personal
feelings or beliefs. Forgets all other info that may be inconsistent.
- Two types of learning: experiential and conceptual
Ch 6
- Business marketing involves the marketing of goods and services to commercial enterprises
that then produce other goods and services for sale or use by other businesses or consumers.
- Business marketing is called “B2B marketing” (Business-to-Business marketing).
- The use of the Internet to facilitate activities between organizations is called B2B electronic
commerce.
- Today, over 22% – and growing – of B2B transactions are conducted on line.
- B2B marketers measure their online success: recency, frequency and monetary value.
- Stickiness is a measure of a Web site’s effectiveness with a formula that looks like this:
Frequency x Duration x Site Reach = Stickiness
- The goal of a Sticky Website is to get a customer there and to keep them there moving
around the site responding to your messages and calls to action.
- LinkedIn is the channel most used by B2B marketers
- Disintermediation – which means eliminating intermediaries such as wholesalers and
distributors from a firm’s marketing channels.
- Strategy to help firms grow their share of customer: strategic alliance
- In Japan, reciprocity and personal relationships contribute to “amae” which is the feeling of
nurturing concern for, and dependence upon another.
- Relationships between companies can develop into a keiretsu, or a network of interlocking
corporate affiliates.
- The four types of customers in marketplace are: producers, resellers, government organizations,
and institutions (referred as MASH – municipal, academic, social and hospitals).
- NAICS provides a way to identify, analyze, segment, and target business and government
markets.
- Most organizational buyers focus on the purchase or lease of capital equipment, raw materials,
operational supplies, and business services.
- Organizational buying is a result of derived demand, i.e., the purchase of products and services
that in turn are offered to consumers.
- Buying center roles: influencer, decider, buyer, and gatekeeper of expenses.
- The three buying classes: straight re-buy, modified re-buy, and new buy.
- Business buyers evaluate products and suppliers based on three important criteria: quality,
service, and price.
- In B2B the product emphasis is in how it will be used rather than the customer buying
behaviors.
- Business products most often will be one of the following seven (7) categories: major
equipment, accessory equipment, raw materials, component parts, processed materials, supplies,
and business services.
- Business segment markets based on company characteristics or firmographics.
- Companies may segment customers based on the buying processes those customers use.
- Product position: Customers define products in their own unique way based on attributes and
how it rates next to its competitors. This is how a product becomes “positioned” in a customer’s
mind.
- Commonly, B2B marketers will position based on: technology, quality, price, distribution, image,
and service.
Ch 7
- Segmentation, Targeting Markets and Positioning are core activities of marketers
- The term market refers to different things to different people
- A market segment is a subgroup of people or organizations sharing one or more
characteristics that cause them to have a similar product
- Market segmentation is the process of dividing a market into meaningful, relatively similar, and
identifiable segments or groups
- Market segmentation enables marketers to identify groups of customers with similar needs and
to analyze characteristics and buying behavior of these groups
- The criteria for segmentation are measurable, accessible, responsive, and substantial
- The five most common bases of B2C segmentation are: geography, demographics,
psychographics, benefits sought and usage rate
- The purpose of market segmentation – in both B2C and B2B marketing – is to identify
marketing opportunities