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OLEMISS / Marketing / MKTG 351 / Why is technological knowledge important?

Why is technological knowledge important?

Why is technological knowledge important?

Description

School: University of Mississippi
Department: Marketing
Course: Principles of Marketing
Professor: Sam cousley
Term: Spring 2016
Tags: Marketing, notes, Lecture Notes, chapternotes, and review
Cost: 25
Name: Marketing 351 Notes
Description: Notes for Marketing 351
Uploaded: 08/23/2016
12 Pages 63 Views 1 Unlocks
Reviews


1


Why is technological knowledge important?



Marketing  

February 3, 2015  

The 4 P’s to value- Product, Price, Promotion, Place

• Product- Creating VALUE

• Price- Exchanging VALUE

• Promotion- Communicating VALUE

• Place- Delivering VALUE

Why study Marketing? It is an enabler

Mission Statement

• What (value) we offer to whom using what know how (technology) and WHY US?

The Value Proposition

• A 30-second “elevator speech”

- Here are the benefits of our product

- This is why it is superior to other ones

Levels of planning


What is the difference between low tech and high tech?



We also discuss several other topics like How is childbirth an example of a positive feedback loop?
Don't forget about the age old question of What cases the supreme court has original jurisdiction over?

• Long term corporate

• SBU/ Business plans

• Functional Plans

Chapter 3: Consumer Behavior

Consumer Cultures

• Shared beliefs

• customs

• behaviors

• attitudes

• a life style

Reference groups and Opinion Leaders

Reference Groups-> consumer identifies with this group-> Movie idols and professional athletes  Opinion Leaders-> Experts-> Trusted publicly known figures

Targeting Markets

• Low tech

- Identifying targets can be low cost

- Personal experience can be the catalyst

• Go where they are


What are prospective customers doing during the day?



- Would be buyers are everywhere

- Check out malls, gyms, restaurants, day care centers, offices, etc.

• Ask questions

- What are prospective customers doing during the day?

- What products are they seen using?

2

One to One marketing steps

1. Short terms measure to evaluate results

2. Identify customers

3. Differentiate the customer base We also discuss several other topics like Why study research methods?
We also discuss several other topics like What is psychosexual theories?

4.

Mass marketing- selling the same product to everyone

Differentiated marketing- targeting select groups

Major vs. minor customers- all customers are not equal

Benefit segmentation- 

• It cost significantly more to find a new customer vs. keeping current ones • 20% of the customers can lead to 80% of revenue/ profits Don't forget about the age old question of What is directed verdict?

• CRM products and messages tailored to major customers

Market Targeting Strategies

Learning Objectives

1. What makes some markets more attractive then others?

• Sizable and affordable  

• Brand new

2. Describe various market segmentation strategies.

3. Global segmenting strategies.

Targeting Criteria

• Can the market be profitable?

• Is it a growing market?

• Is there room for a new competitor?

• Is the market accessible?

• Are resources available to serve this market?

• What is the fit with present business objectives and mission?

Multi-Segment Marketing

• Reduces Risk from competition

• Some firms, including those with limited resources, choose to concentrate activities to a very  select set of customers (concentrated marketing).

• Niche marketing addresses very select groups of customer- big fish, small pond. • Micro-targeting addresses unique characteristics of buyers that combine a variety of features  identified with individuals or small groups. It raises the issue of this as to how the targeting  information was developed. Don't forget about the age old question of How does gender and culture shape someone’s temperament?

Targeting Global Markets

• Targeting techniques for global markets may be the same as domestic markets. • Due to varying customs and ethnicities most companies tailor their products and messages for  global markets

3

Key Takeaways

Targeting Criteria  

1. Can it be profitable?

2. Is it growing?

3. Is there room for another competitor?

4. Is it accessible?

Positioning- allowing a product to stand out from competition

Re-positioning- moving a product to a different place in buyers’ minds

Chapter 8 Creating Offerings

Products, Cost of ownership

• Products can be either a good, which is tangible, or a service, which is intangible • Many products have attributes of a good and a service

• Products have features which are a characteristic of the offering

• Offerings have a price that is paid for the product benefits

• Total cost of ownerships (TCO) is the amount paid to own, us, and dispose of a product

Service

• Service is an action that provides a buyer with an intangible benefit

• Many tangible products have intangible service components attached to them

Product Levels and Product Lines

• Technology platform is the core technology on which a product is built

• Some new offerings take a technology platform and rebuild its benefits • Technology platforms are not limited to tangible products  

Product Lines and Mixes

• Line depth- the number of functionally related products in a firm’s product line • Line extension- when a new similar product is added to a line

• Line breadth- distinct, product lines of a  

Consumer Offerings fall into Four General Categories

1. Convenience- Litter effort

2. Shopping-compare products and select

3. Unsought- product that buyers do not want to shop for until they need them  4. Specialty- highly differentiated available through limited channels

Types of Business-to-Business Offerings

Primary Categories of B2B Offerings

• Capital equipment- equipment purchased and used for more than one year. • Raw materials- are materials firms offer other firms so they can make a product or provide a  service

• OEM or components- raw materials, manufactured materials, and component parts used to  make a final product

• MRO or maintenance, repair, and operating- janitorial supplies or hardware used to repair  equipment

4

• Facilitating- includes products and services that support a company’s operations but are not  part of the finals product it sells such as supplies

Branding, labeling

Branding

• Branding- the set of activities designed to create a brand and position it in the minds of  consumers

• Brand name- the spoken part of a brand’s identity

• Brand mark- the symbol associated with a brand

• Cannibalization- occurs when a firm’s new offerings eats into the sales of one of its older  offerings

Packaging

• Packaging has to fulfill a number of important functions, including;

- communicating the brand and its benefits

- protecting the product from damage and contamination during shipment, as well as  damage and tamping once it’s in retail outlets

- preventing leakage of the contents

- presenting government-required warning and information labels

Packaging Units

• Primary packaging- holds a single retail unit of a product  

• Secondary packaging- holds a single wholesale unit of a product

• Tertiary packaging- designed specifically for shipping and efficiently handling large quantities Product management positions

• Brand manager- responsible for all business decisions regarding one brand • Product manager- responsible for a particular product or product line

• Category manager- responsible for business decisions within a broad grouping of offerings • Market manager- responsible for business decisions within a market

Growth and Distribution

• Effective marketing during the growth phase in the life cycle requires expanding distribution  channels

• Having the product in the right place at the right time means expanded presence in order to  serve the increasing demand.

• This distribution attention continues the higher costs during the growth phase

Modifying Products to Extend Maturity

• Packaging

• Quality

• Quantity

Extending Life Through New Markets

• Global->Substitute products-> Online

The decline stage

• Product sales decrease at an increasing rate

• Technology obsoletes products

• Fads generally have short lives

• Fashions change life cycles!

• Harvesting of products is accomplished through reducing costs to maintain profits  • Modifying products during maturity may avoid a decline phase

5

Chapter 10 Using Marketing Channels to Create Value for customers Consumer Behavior

Today, consumers are used to getting:

WHAT they want, WHEN they want it, and WHERE they want to get it

Key takeaways;

• How you get the product is a marketing channel

• Channel partners are firms that actively promote and sell products; producing companies try  to get the best channels to get a competitive edge.

• Channel decisions are as important  

Disintermediation (cutting out the middle man)

• Some companies take on the middleman’s role to reduce costs and improve profits • The trend today is towards disintermediation

• The internet is a facilitator  

• This is not always cost effective or efficient  

• It is not always possible, as Dell found out

International Marketing Channels

• Key question is how to obtain distribution

• Some countries have extensive distribution avenues that must navigated • Third world countries may lack any good intermediary systems

Key concerns for distributing in other countries:

• Unstable governments and corruption

• Bribery as a way of doing business

• Foreign currency exchange rates

• Product features and cultures

Key Takeaways

• Direct channel consists only of producer and user

• Indirect channels employ intermediaries

• Multiple channels are used to reach more customers and increase effectiveness • Other ways to participate are direct foreign investment, franchising, etc.

Push-Pull

• Push strategy- Producer intents channels to move more product

• Pull strategy- Producer annexes end users to request product (creating demand)

Channel Functions

Channel partners:

• Sort and regroup products

• store and manage inventory

• distribute products

• assume ownership and take risk

• extend credit- aid in possession

• share marketing and other information

• assure availability to end users

6

Channel selection Factors

Type of customer

• Consumer or Business, Customer Preferences

Type of Product

• Perishable, Fragile

Channel Partner Capabilities

• Channel vs. Company Abilities, Target Market Reach

The business environment and technology

• the state of the economy

• foreign exchange rates

• the enabling abilities of the internet

Competing products’ marketing channels

• How do competitors sell their product?

• Sometimes a unique channel offers competitive advantages

Modes of Distribution

• Intensive distribution

• Selective distribution

• Exclusive distribution

Key takeaways

• Channel selection can mean the difference between success and failure • Channel selection depends on type of customer and products

• Channel selection may be influenced by competitor channels

• Decisions of intensity, selectivity, and exclusivity affect channel decisions

Channel dynamics

• Channel power

- Strong channel partners become leaders

- Leaders can call the shots, getting what they want

- Category killers have channel power

• Channel conflict

- Disputes among channel members

- Channel members have their own goals which may not be shared

- Arises when producers compete with channel members

• Vertical and horizontal conflict

- Vertical conflict occurs when members are in the same channel

- Horizontal conflict occurs when members are in separate channels

Chapter 11 Using Marketing channels to Create Value for Customers Test chp.  6,8,9,11,13,15,18

Warehousing and Transportation

• Warehouses- are needed to accommodate supply and demand changes for products • Distribution Centers- are warehouses or storage facilities where the emphasis is on  processing and moving goods on to wholesalers, retailers, or consumers rather than on to  storage  

• The trend is towards smaller warehouses

7

SKU- Stock Keeping Unit

• Unique ID numbers are used to find products

Automation

• Robots are used to pick products

Electronic data interchange

• Computer to computer document exchange

Transportation

• Logistics- Physical flow of materials

• Trucks- More products are shipped by truck than by any other means

• Water- International trade could scarcely be conducted without cargo shipping • Railroads- In terms of its speed and cost, shipping by rail falls somewhere between truck and  water

• Pipelines- Pipelines are generally used to transport oil, natural gas, and chemicals. • Air- High cost of air transport limits use to time sensitive products

Chapter 15 Email Marketing

• Advantages of e-mail marketing:

- Extremely cost effective due to a low cost per contact

- Highly targeted  

- Customizable on a mass scale

- Completely measurable

History

• Ray Tomlinson created the first network e-mail application in 1971

• In 1993 America Online and Delphi started to connect their proprietary e-mail systems to the  internet

• The first e-mail spam dates back to 1978

Chapter 13 Advertising, Integrated Marketing Communications, and the Changing Media  Landscape

IMC

• Advertising->Sale Promotion->Sales Presentations->Public Relations->Publicity (loops)

Promotional Mix Elements

• Advertising and Sales Promotions

• Public Relations and Publicity

• Personal Selling  

• Direct Marketing

Advertising Conundrum

• “It is generally recognized that as much as 50% of all advertising dollars is wasted” The problem?

Knowing which 50% to cut!…If any…

Advertising Decisions

• Which media give the biggest bang for the buck…to your offerings/business?

8

• The impact of advertising in most cases is difficult to measure except for coupons and  rebates, or with marketing research

• Different targeted markets require specific choices of vehicles to reach those markets Personal Selling

• The most flexible and adaptive way to communicate is through personal selling • The cost of personal sales often limits its use to large transactions as in B2B markets • Consumer personal selling may be found in such areas as Tupperware and Amway where the  cost is borne by the seller

Public Relations

• Creating a favorable image

- Uses press releases, product placement, etc. to supplement sales efforts. • Perceived by customers as more neutral

- Information is tailored to appear as being created by an organization independent of the  seller

• Companies use internal and external sources

- Many companies, large and small, use outside PR firms for their expertise

Publicity Pro and Con

• Publicity is a way of getting a message out in a manner that consumers feel is more  believable since it comes through a third party.

• The risk a company runs with publicity…

Sales Promotions

• Several promotional types are used to increase sales and gain market share • Coupons and rebates are most frequently used as customers respond to actions where they  can reduct their costs

• Grocery retailers would like to eliminate the burden of dealing with coupons, but tests have  shown that customers want the immediate cost savings, and producers like the increase in  sales that coupons offer

Direct Marketing

• Delivering personalized promotional materials directly to consumers

• Delivery may come vial mail, internet, e-mail, telephone, or direct response advertising • Allows targeting specific consumers through demographics and zip codes • Because this approach is intrusive, prospects ignore attempts to reach them

Telemarketing

• Direct marketing by phone

• An effective technique for charitable organizations

• Consumers generally have a negative perception for telemarketing

• The Dot Not Cal registry prevents calling to phone numbers registered

• Most companies avoid this technique because of costs, perceptions, and the DNC registry

AIDA

Ex; Jolly Green Giant - Ho Ho Ho

Oscar Myer- Weinermobile and Jingle

9

Setting the promotion Budget

• Simplest method

• Affordable method

• Competitive parity

• Objective and task method

Types of Viral Marketing Campaigns

• Organic viral marketing

- Grows with little or no input from the marketer

• Controlled viral marketing

Test 3

Chapter 17 E-Mktg Customer Relationship Management

Customer centric- Placing the customer at the center of an organization’s planning and  execution of business plans

Customer drive- Customers driving the direction of a business  

Most new, Web-based businesses are customer driven

Types of CRM in Organizations

• Operational CRM: Entails supporting the “front office” business processes • Analytical CRM: Software that assists a business in building customer relationships and  analyzes ways to improve them

• Sales-force automation CRM: Uses CRM software to manage sales cycles and to collect  customer sales data

• Collaborative CRM: Umbrella term for all the interactive options for serving customers

Putting a Value on Customer Relationship Management

• CRM can be looked at form several perspectives:

- Marketing

- Sales

- Service

• It is important to understand the value of a customer relationship to a business - Data mining can be used to determine the value of segments of customers • eMarketing is highly measurable and trackable, enabling a relatively accurate calculation of  CPA

• The lifetime value of a customer- Calculating the costs of both acquiring and retaining a  customer against all purchases made over the lifetime of the customer relationship • Align CRM initiatives with business goals- to measure the success of the initiatives

The value of a Customer Relationship to a Business

Relationship value= Revenue generated by customer- Cost of acquiring and maintaining customer relationship

10

Using customer Relationship Management to Inform your eMarketing Tactics • When using e-mail to establish a relationship with a customer it is very important to gain their  permission

• Data mining and segmenting customer databases allows for e-mail marketing to be tailored to  customers

• E-mails allow for extensive personalization on a mass scale

• Other eMarketing channels which can act as CRM:

- Online advertising

- Affiliate marketing

- Search engine marketing

- Social media

- Web development and design

• Effective analytics-Most useful CRM tool

Technology and Customer Relationship Management

• The eMarketing channels which help organizations and companies to communicate with  customers:

- E-mail

- Mobile

- Call centers

- Instant Messengers and chat rooms

Offering Failure

• The Communication Gap- Overstating the offering’s performance level

• The knowledge Gap- Not understanding the customer’s expectations or needs • The Standards Gap- Setting performance standards that are too low despite what is known  about the customers’ requirements  

• The Delivery Gap- Failing to meet the performance standards established for an offering

Ethics

• Sugging- selling under a guise or a phony front

• Caveat emptor- “let the buyer beware” or “it’s your own fault if you buy it and it doesn't work!” • Permission marketing is a term that was created to suggest that marketers should always ask  for permission to sell or to offer buyers marketing messages

Legal Requirements

• Currently, there are no regulation regarding sugging

• Privacy laws apply to both internet marketing and other forms of commerce • Privacy policies are statements regarding how a company will use and protect a consumer’s  private data

• Privacy policies and privacy laws apply to both business customers and individual consumers

Warranties and Promises

• A warranty is a promise by the seller that an offering will perform as the seller said it would 1. An expressed warranty is an oral or written statement regarding how the product should  perform and the remedies available to the consumer in the event the offering fails 2. An implied warranty provides an offering of at least average quality, beyond any written  statements. Saying nothing is saying a lot

11

Protecting the Company

• Obligated to protect the company from consumers who might not have honest intentions • Phishing is soliciting personal information in order to steal an identity and use it to generate  cash fraudulently

Chapter 19 Web Public Relations

Chapter 23 Price the ONLY Revenue Generator

16,17,18,19,23 Are also gonna be on the final

Learning Objectives

1. Understand the factors in the pricing framework

2. Explain the different pricing objectives organizations have to choose from

The Pricing Framework

Various pricing objectives:

1. Targeted Return on Investment- The profit an organization hopes to make given the amount  of assets, or money, it has tied up in a product

2. Maximizing Profits- Set prices to increase revenues as much as possible, relative to costs 3. Maximizing Sales- Pricing products to generate as much revenue as possible, regardless of  what it does to a firm’s profits

4. Maximizing Market Share- Set prices allows capturing a larger share of the sales 5. Maintaining the Status Quo- Meet, or equal, competitors’ prices

Key Takeaways

• Price is the only marketing variable that generates money for a company. Period.

Pricing Factors

Customer- How will buyers respond?

3 Important factors:

1. Will buyers perceive the product offers value?

2. How many buyers are there?

3. How sensitive are customers to changes in price?

Price elasticity…

Price Elasticity

• Elasticity refers to people’s sensitivity to price changes

• To calculate the price elasticity of demand

- Price elasticity=Percentage change in quantity demanded/percentage change in price • When the ratio is >1.0, it is elastic

• When the ratio is < 1.0, it’s inelastic

Pricing Factors

Competitors

• How competitors price and del their products will have an effect on a firms pricing decisions • The availability of substitute products affects a company’s pricing decisions

The Economy and regulations

• Weak economies and high unemployment call for lower prices

12

• In international markets, currency exchange rates also affect pricing decisions • Pricing decisions are affected by federal and state regulations

- Robinson-Patman act limits channel pricing

- Price fixing may be illegal

- Unfair trade laws protect smaller businesses

- Bait and switch pricing is illegal in many states

Pricing Strategy

• Skimming prices strategy

• Penetration pricing strategy

• Everyday low prices

Price Discrimination

• Price discrimination- charging different customers different prices

• Defenses against price discrimination

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