¡Descarga MARKETING ESCI y más Apuntes en PDF de Comercio Exterior solo en Docsity!
3.MACROENVIRONMENT
Natural environment:
Marketers need to be aware of the threats and opportunities associated with four trends in the natural environment:
✓ Shortage of raw materials Firms engaged in R&D have an excellent opportunity to develop substitute materials.
✓ Increased energy costs
✓ (^) Anti-pollution pressures
✓ Governmental protections
Technological environment:
The marketer should monitor the following trends in technology: the pace of change the opportunities for innovation, varying R&D budgets and increased regulation.
✓ Accelerating Pace of Technological Change: Many of today‟s common products were not available 40 years ago. More ideas are being worked on the time lag between new ideas and their successful implementation is decreasing rapidly; and the time between introduction and peak production is shortening considerably. Some hope that this trend will reduce auto pollution bring the family closer together and create more home centered entertainment and activity. It will also have substantial impact on shopping behavior and marketing performance.
✓ Unlimited Opportunities for innovation: Virtual reality has already been applied to gathering consumer reactions to new automobile designs, kitchen layouts, exterior home designs, and other potential offerings.
✓ Varying R&D Budgets:
✓ Increased Regulation of Technological change: As products become more complex the public needs to be assured of their safety. Marketers must be aware of these regulations when proposing developing and launching new products.
Political-legal Environment
This environment is composed of laws, government agencies, and pressure groups that influence and limit various organizations and individuals. Sometimes these laws also create new opportunities for business.
- Increase in business legislation
- Growth of special interest groups
4. MARKETING RESEARCH
Marketing research is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company.
Define the problem: specify decision alternatives, state research objectives.
Develop the Research Plan: data sources, research approach, research instruments, sampling plan, contact methods.
Research Approaches: Observation, focus group, survey, behavioral data, experimentation.
Research Instruments: Questionnaires, Qualitative Measures, Technological Devices.
Samples: probability ( simple random, stratified random, cluster) and non probability ( convenience, judgment, quota)
What influences Consumer Behavior?
✓ Cultural factors: culture is the fundamental determinant of a person’s wants and behaviors acquired through socialization processes with family and other key institutions.
- Values, perceptions, religions, social class ( indicated: occupation, income, wealth), nationalities, racial groups, geographic regions.
✓ Social factors
- Family, reference groups ( membership groups, primary groups, secondary groups, aspirational groups, dissociative groups), social roles, statuses
✓ Personal factors
- Age, occupation, economic circumstances, lifestyle, self-concept, values, wealth
Key psychological processes:
✓ Motivation
✓ Perception: selective attention, retention, distortion, subliminal perception
✓ Learning
✓
Memory
Buying roles: Initiator – Influencer – Decider – Buyer – User
Buying behavior:
Complex buying behavior – three-step process – develops belief about the product, attitude about the product and then makes a thoughtful choice.
Dissonance reducing buying behavior – consumer is highly involved in a purchase but sees little difference in brands. Marketing communication should supply beliefs and evaluations that help the consumer feel good about his/her brand choice.
Habitual buying behavior – bought under conditions of low involvement and absence of significant brand differences.
Variety seeking buying behavior – characterized by low involvement but significant brand differences.
Stages of the Buying Decision Process
Ways to find out the buying decision process by marketers:
- Introspective Method: they would think how they would behave
- Retrospective Method: Ask people to recall their buying decision process
- Prospective process: Ask prospective customers to think aloud
- Prescriptive process: Ask customers the ideal way to buy the product
Five stage Process of Consumer Buying Decision
Sources of information:
- Personal
- Commercial
- Public
- Experiential
Successive sets involved in consumer Buyin decision process:
1.1. identify bases for segmenting the market
1.2. Develop segment profiles
- Market Targeting
1.3. Develop measure of segment attractiveness
1.4. Select target segments
- Market positioning
1.5. Develop positioning for target segments
1.6. Develop a marketing mix for each segment
4 LEVELS OF MICROMARKETING:
Segment Marketing: A market segment consists of a large identifiable group within a market with similar wants, purchasing power, geographical location, buying attitudes or buying habits.
Niche Marketing: A niche is more narrowly defined group, typically a small market whose needs are not well served. Marketers usually identify niches by dividing a segment into sub segments or defining a group seeking a distinctive mix of benefits. Niches are fairly small and attract very few competitors. Niche marketing requires more decentralization and changes in the way normal business is done. Niche marketers understand their customers so well that customers willingly pay a premium.
Local Marketing: Marketing programs being tailored to the needs and wants of local customer groups – trading areas, neighbourhood, individual stores. Disadvantages of local marketing are – it drives up the manufacturing and marketing cost by reducing the economies of scale, logistical problems become magnified and a brands overall image may be diluted if the product and message differ in different localities.
Individual Marketing: Ultimate level of marketing – “segment of one”, “customised marketing”, “one-to-one marketing”.
Patterns of Market Segmentation
Way to build up market segments – preference segments. Three different patterns ▲ Homogeneous Preferences: Markets where all customers have roughly same preference. The market shows no natural segments.
▲ Diffused Preferences: Consumer preferences are scattered through out the space – consumers vary widely in their preferences. The first brand to enter the market is likely to position itself in the centre to appeal the most people. A brand in the centre minimizes the total customer dissatisfaction.
▲ Clustered Preferences: The market reveals distinct preference clusters – natural market segments. The first firm to enter the market has three options: o Position in the center to appeal to all groups. It will develop only one brand, competitors would enter and introduce brands in the other segments o Position in the largest market segment – concentrated marketing o Develop several products positioned in a different segment.
Customerization:
Combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product and service offering of their choice.
EFFECTIVE SEGMENTATION CRITERIA
MARKET TARGETING. COVERAGE STRATEGIES
7. CRAFTING THE BRAND POSITIONING
Positioning: is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.
Differentiation strategies:
- Product: Product differentiation can be made on the basis of form, features, Performance, conformance, durability, reliability, reparability, style, and design.
- Personnel: Companies can gain strong competitive advantage through having better trained people. Better-trained personnel exhibit 6 characteristics: ✓ Courtesy: Respectful, friendly and considerate ✓ Competence: Skill and knowledge ✓ (^) Credibility: Trustworthy ✓ Reliability: perform service consistently and accurately ✓ Responsiveness: Quick response to customer problems ✓ Communication: Make an effort to understand the customer and communicate clearly.
- Channel: Companies can gain competitive advantage through the way they design their distribution channels‟ coverage, expertise and performance.
- Image: Buyers respond differently to company and brand images.
Identity and Image need to be distinguished. Identity is the way the company aims to identify or position itself or its product. Image is the way the public perceives the company and its products.
An effective image does 3 things: ✓ Establishes product character and value proposition ✓ Conveys the character in distinctive way so as not to confuse it with competitors‟ ✓ Delivers and emotional power beyond mental image.
PRODUCT LIFE CYCLE MARKETING STRATEGIES
To say that a product has a life cycle is to assert four things:-
- Product has a limited life
- Product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller
- Profits rise and fall at different stages of the product life cycle
- Products require different marketing, financial, manufacturing, purchasing and HR strategies in each stage
FOUR STAGES OF A PRODUCT LIFE CYCLE
- Introduction : A period of slow sales growth as the product is introduced in the market. Profits are non existent at this stage because of the heavy expenses done for the product introduction
- Growth : - period of rapid market acceptance and substantial profit improvement
- Maturity :- period of slowdown in the sales growth because the product has achieved acceptance by most potential buyers. Profits decline or stabilize
- Decline :- Sales show a downward drift and profits erode
POSITIONING AND LIFE PRODUCT CYCLE
8. SETTING PRODUCT STRATEGY
A product: is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information and ideas.
Product Levels There are 5 following levels:
1. Core benefit: fundamental service or benefit that the customer os really buying. 2. Basic product: the form taken by the service or benefit. 3. Expected product: a set of attributes and conditions that expected by the buyer. 4. Augmented product: a product that exceeds customer‟s expectations. This is the level at which all competition takes place (however in LDCs competition takes place at the expected product level) 5. Potential product: the scope encompasses all the possible augmentations and transformations. This is the step for innovation and differentiation.
A product line is too short if profits can be increased by adding items; the line is too long if profits can be increased by dropping items. A company lengthens its product line in two ways: by line stretching and line filling. Line stretching occurs when a company lengthens its product line beyond its current range. Down market stretch A company positioned in the middle market may want to introduce a lower price line for any of three reasons:
- The company may notice strong growth opportunities in the down market as mass retailers attract a growing no. of shoppers who want value-priced goods.
- The company may wish to tie up lower-end competitors who might otherwise try to move upmarket.
- The company may find that the middle market is stagnating or declining. Upmarket stretch Companies may wish to enter the high end of the market for more growth, higher margins, or simply to position themselves as full-line manufacturers. Two-way stretch Companies serving the middle market might decide to stretch their line in both directions.
TWO WAY PRODUCT
WHAT IS THE FIFTH P?
Packaging: sometimes called the fifth P, is all the activities of designing and producing the container for a product.
Factors Contributing to the Emphasis on Packaging:
- Self Service – Packaging becomes an “impulse purchase” stimulus
- Consumer affluence – People are willing to pay more for attractive packaging
- Co. and brand image – contribute to brand recognition
- Innovation opportunity – Scope for innovation
Key decidions : What the package should do F 0E 0Size, dimensions, attributes, etc F 0E 0 Engineering testing F 0E 0 Consumer testing
Packaging Objectives
- Identify the brand
- Convey descriptive and persuasive information
- Facilitate product transportation and protection
- Assist at-home storage
- Aid product consumption
Functions of Labels
May perform any of the foll Functions: Identifies the product, grades the product, describes the product, promotes the product.
9. DEVELOPING PRICING. STRATEGIES AND PROGRAMS
Price is the marketing-mix element that produces revenue; the others produce cost. Price is also one of the most flexible elements: It can be changed quickly, unlike product features and channel commitments. At the same time, price competition is the number one problem facing the companies. Yet many companies do not handle pricing well.
COMMON PRICING MISTAKES
- Determine costs and take traditional industry margins
- Failure to revise price to capitalize on market changes
- Setting price independently of the rest of the marketing mix
- Failure to vary price by product item, market segment, distribution channels, and purchase occasion.
CONSUMER PSYCHOLOGY AND PRICING
- Reference prices
- Price-quality inferences
- Price endings
POSSIBLE CONSUMER REFERENCE PRICES
▲ Select final price: depends on psychological pricing, the influence of other marketing mix elements, company pricing policies.
SELECTING THE PRICING OBJECTIVE The company first decides where it wants to position its market offering. The clearer a firm’s objectives, the easier it is to set price. A company can pursue any of the five major objectives through pricing:
▲ SURVIVAL:Companies pursue survival as their major objective if they are plagued with overcapacity, intense competition or changing consumer wants. Profits are less important than survival. As long as prices cover variable costs and some fixed costs, the company stays in business. However, survival is a short-run objective; in the long run, the firm must learn how to add value or face extinction.
▲ MAXIMUM CURRENT PROFIT: Many companies try to set a price that will maximize current profits. They estimate the demand and costs associated with alternative prices and choose the price that produces maximum current profits, cash flows, or rate of return on investment. This strategy assumes that the firm has knowledge of its demand and cost functions; in reality these are difficult to estimate. By emphasizing current financial performance, the company may sacrifice long run performance by ignoring the effects of other marketing-mix variables, competitor’s reactions, and legal restraints on price.
▲ MAXIMUM MARKET SHARE: Some companies want to maximize their market share. They believe that a higher sales volume will lead to lower unit costs and higher long run profits. They set the lowest price, assuming the market is price sensitive. Texas Instruments (TI) practices this market-penetration pricing. TI will build a large plant, set its price as low as possible, win a large market share, experience falling costs, and cut its price further as costs fall.
▲ MAXIMUM MARKET SKIMMING: Market skimming makes sense under the following conditions: (1) A sufficient number of buyers have a high current demand; (2) the unit costs of producing a small volume is not so high and they cancel the advantage of charging what the traffic will bear; (3) the high initial price does not attract more competitors to the market; (4) the high price communicates the image of a superior product.
▲ PRODUCT-QUALITY LEADERSHIP: A company might aim to be the product- quality leader in the market.
PRICE-ADAPTATION STRATEGIES:
- Geographical Pricing: This involves in the company in deciding how to price its products to different customers in different locations and
countries. Another issue is how to get paid. This issue is critical when buyers lack sufficient hard currency to pay for their purchases.
- Discounts/Allowances
- Cash discount
- Quantity discount
- Functional discount
- Seasonal discount
- Allowance
- Promotional Pricing
- Loss-leader pricing
- Special-event pricing
- Cash rebates
- Low-interest financing
- Longer payment terms
- Warranties and service contracts
- “Rebajas”
- Differentiated Pricing
- Customer-segment pricing
- Product-form pricing
- Image pricing
- Channel pricing
- Location pricing
- Time pricing
10. DESIGNING AND MANAGING INTEGRATED MARKETING CHANNELS
MARKETING CHANNEL SYSTEM: system is the particular set of interdependent organizations involved in the process of making a product or service available for use or consumption.
- A push strategy uses the manufacturer’s sales force, trade promotion money, and other means to induce intermediaries to carry, promote, and sell the product to end users
- A pull strategy uses advertising, promotion, and other forms of communication to persuade consumers to demand the product from intermediaries
BUYER EXPECTATIONS FOR CHANNEL INTEGRATION
- Ability to order a product online and pick it up at a convenient retail location
- Ability to return an online-ordered product to a nearby store
- Right to receive discounts based on total online and offline purchases
- Product variety —assortment breadth provided by the marketing channel
- Service backup —add-on services (credit, delivery, installation, repairs) provided by the channel
CHANNEL OBJECTIVES
- State in terms of targeted service output levels
- Minimize total cost and still provide desired levels of service output
- Channel Objectives vary with product characteristics
- Perishable products—more direct marketing
- Bulky products—minimize shipping distance
- Nonstandard products—sold directly by sales representatives
- Products requiring installation or maintenance service—sold and maintained by company or franchised dealers
IDENTIFYING CHANNEL ALTERNATIVES
- Types of intermediaries
- Number of intermediaries
- Terms and responsabilities
CONSUMER MARKETING CHANNELS
INDUSTRIAL MARKETING CHANNELS
NUMBER OF
INTERMEDIARIES:
- Exclusive
- Selective
- Intensive
CHANNEL MANAGEMENT DECISIONS: selecting channel members, training, motivating, evaluating and modifying channel members.
CHANNEL INTEGRATION AND SYSTEMS
CHANNEL. CONFLICT
Occurs when one member’s actions prevent another channel from achieving its goal.
Can be:
Intens
ive
Select
ive
Intens
ive
Select
ive
=
numb
er of
Exclu
sive
Mark
et
Exp
Fairly good to good
Contracts McDonald’s
CompleteOne company ownership
FlorsheimSome to good
Economic power and leadership
General ElectricChar
acteri
stics
Type
of
chan
Little or none
NoneTypical “inde- pendents”
Amount of cooperatio n
Traditi
onal
Vertica
l
market
ing
Adminis
tered
Contract
ual
Corporat
e
Control maintained by
Examples
