Marketing
Marketing Basics
What is ist and what not?
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Characteristics:
long-term-focussed
customer-oriented
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Where would/should Marketing start?
right at the beginning --> Market research
customers
Why is Marketing so critically important in these days?
supply < demand
"Marketing not so important"
in most industries: overproduction
--> supply > demand
--> competition
--> customers orientation == success since --> customer in the driver's seat
Definition Marketing
exchange offerings
value for cutomers
Marketing as Exchange
"Marketing is about managing an exchange relationship"
can be about money / education / degreees
Marketing as a Dual Character
Marketing as a Leadership Philosophy (“Strategic Management/ Marketing”)
"put the customer to the center"
"mindset"
strategic levels / decisions
Why Should the Entire Organization “Live” Marketing?
times changed
50's, 60's: production orientation = production orientation
Assumption: Consumers will favor products that are available and highly affordable.
Management should therefore focus on the improvement of production (and distribution) efficiency.
70's: product orientation
consumer more money --> buy higher quality
Assumption: Consumers will favor products that offer the highest quality, performance and features.
Organizations should therefore devote their energy to making continuous product improvement.
Slogans: "Alles Gute aus Hollywood", "Führend im Service an Board", "The world's favourite airline"
Selling Orientation
Assumption: Consumers will not buy enough of the organization’s products unless the organization undertakes a large-scale selling and promotion effort.
Organizations should therefore engage in hard selling!
80' - today: Marketing Orientation
lots of competition, supply >> demand --> engage customers
Assumption: Achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired products, services and solutions more effectively and efficiently than competitors do
Slogans: "WE are family", "WE love tou entertain YOU", "WIR sind es UNS wert", "IHR Ziel ist UNSER Weg"
SWOT Analysis as Strategic framework
External Analysis (Macro & Micorenvironment): Opportunities & Threats
Marketing & Market Research supports this
Microenvironmental analysis
Porter's Five Forces
--> guiding question: "How attractiv is a given market?"
The role of marketing (research) is to provide information for a managerial decision
intensity of rivalry
structure of competition
structure of industry costs
switching costs
strategic objects
new entrants
capital / investment requirements
economies of scale
substitute
Bargaining Power of Suppliers
# of suppliers (-) and buyers (+)
Bargaining Power of Buyers
# buyers (-) and sellers (+)
laws, governments
Internal Analysis: Strengths & weaknesses
outside of marketing
HR Management
knowledge, experience
financial strengths
inside of marketing area
products
brands
image
CR
networks
very general, applied to many levels
motivation to make strategic decision about future strategic action
BCG Matrix
Marketing is not only for Profit-Organisations!
Problem: SWOT-Analyse very difficult and often not fitting since NPOs have no buyers (--> stakeholders instead)
"Marketing must be lived and breathed"
Marketing as a Managerial Function (“Marketing Management”)
Marketing (incl. Sales) Department for selling
In reality: Marketing Department vs. Sales Department
Marketing is getting more and more analytical
The Four "Ps" of the Marketing-Mix
business model : factory --> phyiscal goods --> sold directly or retailer
"What PRODUCT at WHICH PRICE is HOW COMMUNICATED ind which CHANNELS?"
What about Services?
Process
People
Physical evidence
Extension to 7 Ps
focus on individual products that should be sold to an end customer, using the 4 Ps to positioning the product right so it will be sold
PRODUCTS
Relationship Management Basics
Definition
focussed on relation, maintaining and creating services
CUSTOMERS
Value of Company = Value of Customer Base
Customer Lifetime Value
Development of Profit
3 Rs <--> 4 Ps
Recruitment
Retention
Recovery
Marketing Research and Buyer Behaviour
A General Model of Consumer Behavior
difficult to predict the consumer's buying behaviour
lighten the "black box"
different types of buying decision making
extensive buying
limited buying
habitual buying
impulsive buying
Marketing Research
same models and methods as consumer behaviour researchers
but with the purpose of providing decision-relevant information on marketing problems
Forschungsdesign aus Empirische Methoden :) (hier nicht weiter ausgeführt)
The Buyer's Decision Process
purchase decision
how involved is the customer to the decision (buying a car vs. buying a lunch)
--> structure of lecture
Summary
Need Recognition
What are the consumers' needs?
Qualitative and Quantitative Marketing Research
ERM :)
Focus Groups
Purpose
Characteristics
Moderator Guidelines
Strengths & Weaknesses
In-Depth Interviews
Characteristics
Laddering: "Why?"-"Why?"-"Why?"
Strengths & Weaknesses
Delphi Method
Characteristics
"Panel of Experts"
from all over the world
Längsschnitt
1. round : survey
2. round : survey + infos of 1. round
expected: variance of answers goes down --> "agreement"
Strengs & Weaknesses
Market Segmentation
Definitions
Market segmentation
"How can we group consumers?"
Targeting
"How can we adress the for us relevant consumer group?"
--> 4 different P's for each group
Positioning
Untertopic
Segmenatition Variables - Consumer Markets
socio-demographic variables
+
easy to get
-
can be misleading
psychographic variables
+
very good in prediction
-
hard to get
--> use socio-demographic variables as proxies
Segmentation Variables - Organizational Markets
Buying Center Aproach
Members
User
GateKeeper
Influencer
Decider
Approver
Buyer
Profile Development
Determing Segment Attractiveness
Selecting Target Segment(s)
Developing a Positioning Strategy
Summary
Untertopic
Information Search
information sources
internal
external
takes time & effort
where to get information? search engines, online rating systems, discussion forums...
what sources do you trust the most? email from friends, product ratings by other customers, portal/search engines
Communications
five major promotion tools
advertising
sales promoting
personal selling
public relations
direct marketing
Above / Below the line (ATL/BTL)
ATL is marketing via the mass media
newspaper
magazine
cinema
tv
radio
BTL is marketing via methods other than mass media
direct marketing
email promotion
sponsorship
exhibition
Multichannel shopping
growing importance
customers use different / multiple channels to gather information and purchase products
Elaboration Likelihood Model (ELM)
Media Evaluation
Untertopic
Evaluationg Success of Communications
Brand Success
Online Communications
Online Marketing Instruments
Search Engine Marketing and Search Engine Optimization
based on clicks not shown
bit on words
current content
links to other websites
Search Engine Marketing (SEM) == paid Ads above the search results
paid Ads above the search
Search Engine Optimization (SEO)
Digital Asset Optimization (DAO)
What is influencing SEO rankings?
ranking factors
page ranking factors
query ranking factors
click-pattern on search engine result pages (SERP's)
Viral Marketing
Strategy that motivates customers to pass along a marketing message to friends or colleagues in order to generate “word of mouth”
Blog Marketing
Social Media Marketing
E-Mail Marketing
Affiliate Marketing
one website linking to another for a certain fee
e.g. Sport1/Sky, sueddeutsche.de/amazon
not only clicks but also leads and sales are measured!
Impact to overall financial contribution
decision makes rate SEM and Affiliate Marketing with highest impact on overall financial contribution to the companies' business
price comparison, display and EPR ahave minor impact
Evaluating Success of Promotions on the Internet
Page impressions (PI)
1 person viewing 1 web page
e.g. 4.500.000
click-through (CT)
every time when user clicks on advertisment
e.g. 90.000 clicks on the ad
Click-through rate (CTR)
proportion of users viewing ads and click on them
= CT / PI
= 90.000 / 4.500.000 = 2 %
Conversion rate (CR)
qualit of traffic
= # new customers / # new visitors
e.g. 50.000 booked a flight --> = 50.000 / 90.000 ? 55,56%
Cost per Aquisition (CPA)
important for controlling etc.
= CPC("Cost Per Click") / CR
e.g. = 0,30€ / 0,5556 = 0,54 €
Advantages
Internet is the first commercial medium in which it is possible to measure consumer response (e.g. view, click, sale and lead), not just assume it.
Disadvantages
Summary
Evaluation of Alternatives
d
bundle
two or more products
e.g. Happy Meal
price is lower than each component
Introduction
after collecting information about alternatives --> now evaluate them to set up preferences
for each product --> evaulate all criteria to one global judgement
evaluation difficult if ...
many alternatives
many criteria
criteria difficult to evaluate
uncertainty
Attitudes
attitude = person's evaluation of an object
components
cognitive component
thoughts
beliefs
ideas
affective component
feelings
emotions
attitude measurement
Fishbein-Model
multi-attribute attitude
compositional
Sum of all individual attributes
simple, easy to use
price typically disregarded
Conjoint Measurement
Mathematical-statistical method for calculating utility values
matrix with all possible product combinations (color, PS, model, price)
test person ranks them
average("black") = sum(ranking)/#"black"
part worth("black") = (average - min) / (max - min)
always 0 < part worth < 1
raw importance ("color") = max(part woths) - min(part worths)
total = sum(raw importances)
relative importance = raw importance / total
decompositional
price as product feature (!)
Product
Product Management
Overview
Potential Interactions
Definition, Classification, Types of Market Offerings
Def. --> Flash cards
Levels
Classification
Goods
Consumer Goods
Industrial Goods
Durable Goods
Non-Durable Goods
Services
Characteristics
Intangability
Inseparability
Variability
Perishability
Lack of ownership
Customer integration
Types of Market Offerings
(tangible) Goods
Services
Bundles
2+ goods/services in 1 offering
typically lower price than price of individual components
Hybrids
Combination of goods and services (and software) in 1 offering
Solutions
combination of integrated goos and/or services (and/or software)
individualized, customized
implemented, maintained
price typcially higher than of its individual, non-integrated components
true solution will have performance-based pricing models
New Product Development
Branding
Life-Cycle Management
Product Line Decisions
Product Mix Decisions
Price
Summary