Marketing

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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

can be about money / education / degreees

"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"

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!

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"

External Analysis (Macro & Micorenvironment): Opportunities & Threats

Marketing & Market Research supports this

Microenvironmental analysis

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 (incl. Sales) Department for selling

In reality: Marketing Department vs. Sales Department

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

PRODUCTS

Definition

CUSTOMERS

Value of Company = Value of Customer Base

Customer Lifetime Value

3 Rs <--> 4 Ps

Recruitment

Retention

Recovery

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

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

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

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

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

growing importance

customers use different / multiple channels to gather information and purchase products

Evaluationg Success of Communications

Online Communications

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!

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

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

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