Marketing 101 Lecture Notes

Only available on StudyMode
  • Download(s) : 350
  • Published : January 14, 2013
Open Document
Text Preview
LECTURE 1: What is Marketing?
Evolution of Marketing:
Product OrientationSalesConsumerCompetitorCRMValue (brand equity)

5 C’s (Strategic)
* Company
* Customers
* Competitors
* Collaborators
* Context

4 P’s (Tactical- “marketing mix”)
* Product
* Promotion
* Price
* Place

LECTURE 2: Customer Behavior

Consumer Decision Making Process:

Adoption Process (of new concepts that do not rely on previous purchases) (textbook): AwarenessInterestEvaluationTrialDecision (purchase)Confirmation (reinforcement)

Basic Consumer Needs
* Esteem
* Control
* Belonging
* Meaningfulness

Book’s Hierarchy of needs: PSSP: physiological, safety, social, personal

Multi-Attribute Model (High Motivation evaluation of alternatives) * Ab = Σ (bi X Ii)
* Customers rate different product attributes (-3,3)
* Customers rate level of importance for attributes (1,7) * Focus on improving the important attributes OR Making strongest attributes more important to customers Heuristics (Choice tactics or “rules of thumb”; Low motivation evaluation of alternatives) * Price – Higher price equals higher quality

* Habit – Buy what we always buy
* Normative – Popular products are better
* More is better – More feature equals higher quality

Purchase Decision:
Heuristic (choice tactic)

Choice
Usage (experience)

Outcome: reinforcement, no reinforcement, punishment

Learning

Post-Purchase Decision Making: Satisfaction= f(perceived performance-expectations)

Lecture 3: STP

Market Segmentation involves:
1. Naming—disaggregating, breaking up needs
2. Segmenting—aggregating, clustering people with similar needs Segments need to be:
* Homogenous within
* Heterogeneous between
* Sustainable
* Operational (accessible, measurable, actionable)
* Stable
Segmentation Variables—need to be predictive of consumer behavior * Geographic
* Demographic
* Psychological
* Psychographic
* Sociocultural
* Use-Related (Splitting up customers by how loyal/long-term) * Use-Situation (Splitting up customers by how they use products) * Benefit
* Hybrid
Factor Analysis – Categorizing attributes or traits (Of products) * Example: Exciting and Sporty vs. Comfortable and Luxurious * Example: Reading vs. Talking = Two distinct ways to get information about cars * Makes analyzing survey data much easier – Used for segmentation * Factor analysis shows the relation of different attributes, merging highly correlated variables into smaller dimensions; but doesn’t show where the customers are, how many people are in each segment, and what their preferences are regarding each segment Cluster Analysis - Categorizing people (customers)

* Maximize between-group variances while minimizing the variances within each group * Applied to similar data as factor analysis, but to classify people. (Factor picks the axes, Cluster plots the points on the graph and chooses centers of clusters process) CRM= 1. Identify, 2. Differentiate, 3. Interact, 4. Customize e.g. Amazon customize personal pages with recommendations

Targeting
* Customer – Segment Size, Growth Value, Stability
* Company – Ease of entry (Ability to reach/serve segment) * Competitor – Numbers and strength, their ease of entry * Product Life Cycle – Advertising new product (Need to explain more, ability to influence heavily)

Factor and Cluster Analysis is for Segmenting; Perceptual Maps is for Positioning Positioning—perception of offering/product in comparison to competition * Target
* Frame of Reference
* Point of Differentiation
* Reason to Believe

Segmenting/Targeting = Strategic, Positioning = Tactical (marketing mix of 4 P’s)

LECTURE 4: Branding and Packaging

Strong Brands have:
--higher market share, higher margins, and higher prices
--customers with positive difference in willingness to pay,...
tracking img