Definitions Lecture 1-7

• Product Concept


  Consumers prefer products that offer quality, performance, or innovative features
• Production Concept


  Consumers prefer products that are widely available
• Selling Concept


  Consumers buy products only if the company actively promotes or 'sells' them to them
• Marketing Concept


  Consumers buy and prefer products which focus on their needs/wants and deliver better value than competitors
• Market Segmentation


  Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviours and who might require separate marketing strategies or mixes
• Targeting


  Identifying which segments of the market a product or service is intended for
• Webrooming


  The practice of looking at something you want to buy online and then later buying it in a shop
• Showrooming


  The practice of looking at something you want to buy in a shop and then later buying it online, usually at a lower price
• Planned obsolescence


  Business strategy where a product is designed with a limited lifespan or becomes obsolete after a certain period. this encourages consumers to replace the product frequently, driving continuous sales for the manufacturer
• Two opposing management philosophies

  Selling concept (focusing on what products already exist) - focus on profit (production, existing products, selling and promotion, profits through sales volume) Marketing concept (focusing on consumer needs) (target market, customer needs, integrated market, profits through customer satisfaction)
• Marketing concept elements


  Target market, customer needs, integrated market, profits though customer satisfaction
• Target market


  Segmentation, targeting, positioning
• Integrated market


  digital marketing, advertising, sales promotion, branding, content marketing, public relations
• How customers choose between different products


  Customer value, customer satisfaction, customer loyalty and retention
• Microenvironment (3Cs)

  -       Customers

  o   Market research

  o   UX/CX research

  -       Company

  o   SWOT (strengths, weaknesses, opportunities, threats)

  o   BCG

  o   Ansoff matrix

  -       Competitors 

  o   Porter’s 5 forces

  o   Perceptual mapping
• Macroenvironment (PESTLE)


  Political, environmental, social, technological, legal, economic
• SWOT


  Strengths, weaknesses, opportunities, threats
• Marketing research


  Systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organisation
• Customer experience (CX) research


  Focuses on all interactions and touchpoint between a customer and a brand, products, service, and company
• User experience (UX) research


  Part of CX research that focuses specifically on how consumers of digital products focus on end-user interface interactions
• Product research


  Focuses on general product usability and specific use cases and customer perceptions of your product
• Brand research


  Focuses on brand identity, awareness, visibility, perceptions and other brand-related aspects
• Exploratory research


  involves gathering preliminary information that will help define research objectives
• Descriptive research


  Aimed at describing marketing problem situation, or markets
• Ethnographic group


  Form of observational research that involves sending trained observers to watch and interact with consumers in their 'natural environment'
• Marketing research process

  1.     Define research objective. 

  2.     Develop a research plan (identify sample and research methods)

  3.     Implement the plan (collect and analyse data)

  4.     Interpret and report findings. 
• Research sample


  Segment of a population selected for marketing research to represent the population
• Marketing


  The process by which companies engage customers, build stronger customer relationships, and create value in order to capture value from customers in return
• Marketing strategy


  Refers to an organisation or person's plan of action created to sell or advertise a product or service. Designed to guide the company's marketing efforts, tactics, and resources in a coordinated and cohesive manner.
• Strategic planning


  Process of developing and maintaining a strategic fit between the organisation's goals and capabilities and its changing marketing opportunities
• Process of strategic corporate planning 

  Step 1 – company mission 

  Step 2 – business objectives and goals 

  Step 3 – business portfolio

  Step 4 – marketing and other-functional strategies 
• Mission statement


  A statement of the organisation's purpose - what it want to accomplish in the larger environment
• Business Objectives (SMART)

  • Specific
  • Measurable
  • Achievable
  • Time-based
• Business Objectives

  • Economic - sales, profit, market share
  • Human - training programme, salary increase, staff retention
  • Organic - growth rate, increased awareness
  • Social and environmental - carbon negative, 100% renewable energy
• Business Portfolio


  consists of the products and businesses that make up the company (strategic business units (SBUs))
• Boston Consulting Group /matrix (BCG matrix)

  • Star - high growth, high share SBUs
  • Question mark - high growth, low share SBUs
  • Cash cow - low growth, high share SBUs
  • Dogs/pets - low growth, low share SBUs
• BCG matrix AKA Growth/share matrix

  • used for evaluation of an organisation's product portfolio in marketing and sales planning
• BCG matrix 


  Advantages

  • helps to maintain balance between current product portfolio

  Disadvantages

  • neglects the effects of synergies between business units
  • high market share is not the only success factor
  • market growth is not the only indicator of attractiveness
• Stars 


  Products that are growing quickly and have a high market share.

  • market leading products and require investment to retain the market share
  • as product matures and remains successful, migrates to cash cow
  • consumer large amounts of cash and also generate large cash cows
• Question Mark


  Products that are growing quickly and have low market share.

  • best case scenario, question marks turns into star
  • if don't success, turn into dogs
  • companies advised to build on question marks