Introduction and marketing mix Flashcards
Key words you should use in the lectures and in your written work….
- Reflect
- Discuss
- Apply
- Develop
- Analyse
Memnonic: “A Dog Always Demands Rest”
Marketing, the official definition :
“Marketing is the activity, set of institutions and processes for creating, delivering, and exchanging offerings that have value for customers, clients, partners and society at large”
(American Marketing Association)
Marketing is a business orientation:
- Marketing is not just sales or a piece of advertising
- Marketing is integrated with all the other business functions
- Marketing takes an outset in identifying and addressing customer needs, which impacts all other activities in the firm
Marketing takes an outset in understanding:
- What customers want?
- Why they want it?
- How they want it?
- Where they want it?
Marketing is more than just customers and materialism. The principles of marketing govern:
- Modern politics
- Business-2-Business
- Charities and NGOs
- Government services
- Architecture
- Social media
…
What is the marketing mix?
The most basic marketing tool
- Product
- Price
- Promotion
- Place
What is Promotion?
- This is the marketing communications used to encourage potential buyers
- How many media channels can you think of?
What is Product?
- A service
- An idea
- A place
- A person
- A material object
- what ever is actually being sold in the exchange between company and customer.
What is Place ?
(Distribution): il s’agit ici de définir quels canaux de distribution seront utilisés pour implanter les produits et quel merchandising sera mis en place sur les points de vente pour commercialiser la gamme de produits.
Price=
The exchange
- Price is the assignment of value the customer must exchange to receive the offering
- Usually the exchange is between the product and money
Interdependence of the 4 Ps
Although we talk about the four Ps as separate parts of a firms marketing strategy, in reality, product, price, place and promotion decisions are utterly entangled and interdependent. Decisions about any single one factor affects and is affected by every other marketing mix decision.
All the pieces in the puzzle must work together in a meaningful way.
Marketing mix exercise with the most generic product ever? Perhaps water….?
Evian and Ashbeck (Tesco)
What are the differences?
Product: Ashbeck:Water (Utility) Evian:Water + Lifestyle “Live young” (middle aged, middle class well-to-do people)
Price: Ashbeck is 45p (discount product, store brand), Evian is more expensive: : £1 (Premium product)
Promotion: no promotion for Ashbeck (except for the ordering page on Tesco.com) but a lot for Evian (billboards, TV, Events…)
Place: Evian: Supermarkets, kiosks, gyms, events, airports… (Specialised delivery to multiple sites); whereas Ashbeck is only sold in Tesco stores (Bulk delivery to limited sites)
Some Basic Marketing Concepts of value for customers
Marketers first identify customer needs and then provide products that satisfy those needs to ensure the firm’s long term profitability.
- Needs are general (water)
- Wants are desires for specific products (Evian)
- A product delivers a benefit when it satisfies a need or a want
- Good projects identify what wants customers look for and then develop that product
- A market is made up of all the people who have a common need
Inventing needs to create markets:
“…marketing represents a perpetual questioning machine asking the modern consumer to make a project of oneself based on ongoing self-examination and querying; to look at oneself as a set of constantly multiplying problems (too fat, too skinny, too boring, etc) and as yet unrealized potentialities [towards the future]; to translate them into personal needs and desires”
(Zwick and Cayla 2011: 7).
Evolution of the marketing concept:
- Marketing is not a natural and has not always been around.
- The existence of consumers and consumerism is a sociohistorical formation that has happened over time.
What is the Production Era?
From 1900 to 1920
- Seller’s market
- Economies of scale
- Scientific management
- Pushing unit prices down through efficiency
- Classical example: Ford Model T
- Marketing is insignificant because of lack of choice.
What is the Sales Era?
- The sales era is the era in history from 1920 to the early 1950s, in which manufacturers realized that the innovative production apparatus created huge surplus, so they needed to find ways to entice buyers or to keep production in line with demand.
- Product availability exceeds demand
- The “hard sell”: pushy and aggressive strategies
- Persuading….
What is The relationship era?
From 1950 to 1980
- Fostering sustainable relationships with the customer
- Not just the product, but an immersive, holistic experience
- Total Quality Management: empowering employees to be an active part continuous quality improvement
What is the Triple-bottom-line?
From 1980 to ?
- Not just profit maximisation, but meaning maximisation
- The financial bottom line
- The social bottom line
- The environmental bottom line
The next stage: consumers are not passive recipients, but …
Co-creators : “The power of crowds”.
- Consumer generated content (Airbnb owns no property, Facebook makes no online content, uber owns no cars) ect
- Branding: consumer identity construction through brands and co-branding
- Drawing on the wisdom of crowds
What is the value proposition from the customer’s perspective?
Customer value proposition (CVP) consists of the sum total of benefits which a vendor promises a customer will receive in return for the customer’s associated payment (or other value-transfer).
A customer value proposition is a business or marketing statement that describes why a customer should buy a product or use a service.
What is the value proposition from the firms’s perspective?
Keeping customers in the shop for their whole life
It is far too expensive to attract new customers all the time, rather than keeping existing customers satisfied.
Example of Value Proposition:
Periscope: “Explore the world through someone else’s eyes”
Product: Live streaming video content.
Target market: Millennials who want real-time visual content.
Primary benefit: The ability to experience moments without borders.
What makes this value proposition unique? “Explore” is a powerful word that shows how users have control over the experience.
To make the value proposition happen, many people work together:
- Design
- Production
- Marketing
- Delivery
- Support
- Packaging
- Etc.
When going global (or not) what data the marketers should know about?
Everything related to the external environment in which you want to develop the product.
also: Telecommunications, transport
GDP= Gross Domestic Product, comprehensive scorecard of the country’s economic health
What is the Sociocultural environment?
- Demographics: population size, age, ethnicity, income, education, occupation, family structure
- Language
- Social Norms
- Cultural Values
- Culture of time (i.e. level of devlopment, technologies availables…)
Cultural Values, Collectivism/Individualism:
When going global, marketers should beware of…
Ethnocentrism
Marketing Mix Strategies: Standardization Vs Local Culture
- How much do you need to adopt your products and marketing communications to the local market?
- Will the product appeal to people there?
- Will it be priced differently?
- How do you deliver the product?
What are the Standardization/Localization strategies?
