Marketing Concepts for Engineers Flashcards
What is marketing?
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A social and managerial process by which individuals and groups obtain what they <strong>need</strong> and <strong>want</strong> through creating and exchanging products and value with others
What is the aim of marketing?
to make selling superfluous
to know and understand the customer so well that the product or service fits and sells itself
Marketing mistakes (2)
- It’s a good thing, so it will sell
- If we produce it more efficiently than the others can, it will sell
It’s about customer needs!
What does this (both marketing and engineering is about solving customers’ problems) mean to the entrepreneurial engineer?
Find out what customer wants
What is the biggest mistake you can make in a company in terms of marketing?
Building something that no-one wants
Give the models to explain consumer behaviour (6)
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- Problem solving
- Psychoanalytical
- Cognitive miser
- Collective decision maker
- Consumers buy what everyone else is buying
- Economic
Elaborate on the problem solving model to explain consumer behaviour
Consumers buy to solve problems
Elaborate on the psychoanalytical model to explain consumer behaviour
Consumers are emotive buyers
Elaborate on the cognitive miser model to explain consumer behaviour
Consumers take the easiest option
Elaborate on the economic model to explain consumer behaviour
Consumers are rational buyers, who buy the best value option to meet their needs
What are the types of consumer influences?
- situational
- group (culture & social)
- individual (personal & psychological)
What are the factors of situational consumer influences?
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- physical
- social
- time
- motivational
- moood
What are the factors of cultural group consumer influences?
- cultural
- subcultural
- social class
What are the factors of social group consumer influences?
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- reference groups
- family
- roles and status
What are the factors of personal consumer influences?
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- demographics (age, occupation, income)
- lifestyle
- personality and self-concept
What are the factors of psychological consumer influences?
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- motivation
- perception
- beliefs and attitude
- learning
What is the product’s market?
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A market is a group of potential customers <strong>with similar needs<strong> who are willing to exchange <strong>something of value</strong> with sellers offering various need‐satisfying goods or services</strong></strong>
What is the value proposition?
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Who wants it and what will they pay for it?
What questions must be asked to learn about the consumer?
What do we do with this info?
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- Who is the consumer?
- where are they (demographic)
- how much money do they have (demographic)
- what drives them? (psychographic) - What do they need?
- What do they want?
Use this information to cluster customers into relatively homogeneous segments you can target
What is the big question? (2)
Is your share of the target market going to be profitable?
How can you make that happen?
Explain the marketing strategy
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A business cannot proceed without information about:
- The macro environment
- Technology
- Economy
- Political/legal situation
- Cultural/social situation - The micro environment
- The organisation, its objectives and its resources
- The industry
- Competitors
- Partners/suppliers - The customer
What are the marketing strategy variables? (4 Ps)
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- price
- place (distribution)
- promotion
- product
How to get market share in target market?
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- product needs a competitive advantage
- USP - unique selling point
- -> aka USA, unique selling advantage
- this is product differentiation
- -> better solution?
- -> better access?
- -> better quality?
- -> better branch (Milk example)
- -> cheaper?
What are some pricing strategies?
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- Cost plus pricing
- Penetration pricing (cheap as possible)
- Price skimming
- Value pricing
- Competitive pricing (same as everyone else)
- Psychological pricing (don’t drop price if perceived as lux)
