Part 1: Introduction
Ch 1: The role of marketing in the company.
i) Development of management methods:
Different possible orientations:
• Orientation production (the choice is made according to the price and availability). The goal is to increase the capacity and performance.• Orientation product (choose the product that offers the best performance). The goal is to improve the quality of the product.• Orientation sale (product selection is made according to the intensity of the selling pressure. "The products are bought, not sold") the goal is to use sales techniques and more aggressive.• Marketing Orientation (needs must be understood in order to satisfy them). Develop products or services that meet those needs.ii) Definition of marketing:
The company must identify the needs and desires (1) of the target consumers (2) and produce satisfying (3) desired a cost effective manner (4), as more effective (4) competition (5). The central objective is to satisfy the consumer.
(1) To identify needs, we do market research(2) It is not intended to affect all consumers, we are interested in a segment
particular(3) Develop products that will satisfy consumers(4) the profitability of the company is the ultimate goal of the marketing approach(5) must be very familiar with what the competition
marketing approach allows companies to be more efficient in the design and marketing of its products.
The concept of market-orientation (dd Lambin) refers to the fact that the company considers ts stakeholders who influence the purchase decision of the client (broad market)
all functions of the company are market oriented.
We can say that there is a management philosophy through the need for customer satisfaction
The integration of activities to meet those needs
Obtaining long-term profit through meeting these needs
Marketing has two faces: Strategic: it is a process of analysis. It gathers information and analyzes the market to understand the consumers, the environment, ... Operational: it is the process of implementation, implementation. He represents all that was decided in a marketing perspective, it is therefore the most visible careful not to confuseRMQ: we talk about the 4 P's: product, price, place (distribution) Promotion (consumer)
There are five steps in the strategic and operational marketing:
a) Analysis of market opportunities:It is both an external analysis (customers, competitors, market, environment) and internal to (company). We analyze the opportunities and threats and the strengths and weaknesses.
b) Segmentation (meeting consumer as needed) target markets:Here the choice of segmentation criteria will play an important role.
c) Phase of targeting, attractiveness / competitiveness:The following development strategies, and selecting one or the other segment attractive.
d) Positioning:It identifies differentiation. + Positioning strategies question is how to differentiate itself from other
e) Marketing mix:With the 4 P: Product, Price, Pomotion (Communication), Place
(Distribution).
A to d = strategic marketing, operational marketing e =
The concept of marketing includes three dimensions:
• An analytical dimension (= understanding of markets)• A dimension of action (= market penetration)• An ideological dimension (= market-oriented culture).
RMQ: do not confuse marketing with advertising, promotions, communication, sales techniques
iii) Evolution of Marketing
Some companies have addressed the marketing through advertising or promotions. Others, such as industrial, considered that the marketing (advertising sales) was not for them. Some companies claim to practice marketing without any real consideration of strategic marketing ...
There are three action areas of marketing:- Individuals (B to C: business to consumer) is interested in the final consumer is a marketing of goods and services- Organizations (B to B: business to business eg Renault and Arcelor: the plate is not for the final consumer)
- Non-profit organizations
There are different types of strategic marketing:• strategic marketing response involved the identification of unmet needs by developing a solution (innovation driven by the market)• strategic marketing to create checks for the existence of a market, size, and includes key success factors (innovation driven by the company).
cooperation between marketing and research and development is fundamental.
An observation is unfortunate ... There is indeed a dissatisfaction vis-à-vis the traditional marketing. There are no satisfactory measures of performance of marketing investments, or long-term relationship with consumers.Therefore, the solution is to move towards market: all business functions take into account all the stakeholders who influence the buying decision.Therefore, the role of marketing will strengthen as markets mature and needs saturated, there is widespread acceleration of technological progress and increased internationalization of the markets.
iv) Major changes affecting the marketing:
cultural change:For emergence of new segments (seniors, one-person households eg creation of frozen meal, working women delivery of home race new opportunities), new consumers (buying behavior has changed) and consumerism (movement for consumer protection.) (Cross-power group of consumer advocacy group).
Development of new technologies:Technological competition becomes greater. There is also a disruption of the boundaries of existing areas, as well as a need to redefine the reference markets ...
Ecological Movement:There is an awareness of the scarcity of natural resources, an awareness of the impact of consumption and marketing on the environment. Therefore, there is a new goal: improving the quality of life and not customer satisfaction. (Ex: Pampers diaper generates millions of jobs each year biodegradable materials)
Power of retailers:There are more and more creative private labels, and powerful purchasing groups to increase their bargaining power.
Emergence Marketing responsible or ethicalThere is need for more ethical behavior and accountability. Consumer interest in the long run is more important.
Globalization of the economy:There is a globalization of markets, the interdependence between them and a globalization strategy that allows for substantial economies of scale.
All this of course has an impact on marketing strategies.
v) The boundaries of marketing:
• Meeting the needs in the short or long term?• Satisfaction of individual or collective needs?• Products required by the market or driven by technology?
vi) Current topics:
Global Marketing:Here there are defining marketing strategies in global or regional level. There is a search for economies of scale generated by the development of standardization as well as international brands at the expense of local brands. (Ex: BBL now ING)But then arises the dilemma of standardization or adaptation?
Relationship Marketing:We want to create relationships with customers as a loyal customer is more profitable than a new customer. There is then created different levels of relationship.
Trade Marketing:Here, the retailer is using marketing to its advantage. There is a development of strategies for segmentation and positioning. We launch private labels (eg intersection).
Direct and Interactive Marketing:Access to targeted information and new information channels and sales. There is a possibility to customize messages and contacts with the client.
Brand Management:The brand has an existence beyond the product and provides tangible and intangible benefits. Brands have become the capital of the company. New strategies such as the extension of the brand, the co-branding or changing the names are put in place.
In conclusion, we can say that marketing is indeed a management philosophy. It focuses on understanding consumer needs. Strategic marketing is the most important part of marketing thinking. Operational marketing is the execution.
Part 2: Development of Strategic Marketing
CH. 2: Analysis of needs and behaviorsof the buyer.
i) The concept of need:
The requirement is a requirement of nature or society.We distinguish two types of need: generic needs (basic needs) they are innate needs, natural needs derivatives: what needs are acquired, cultural and social.
Ex; GSM: the aim is to communicate, it is derived from the basic needThese are needs that must be generic answers.
Indeed, the derivative needs is a response made to the technological needs as well as generic object of desire. Saturation will affect the need and not the generic derivative. The company must then define its mission in terms of required credits.Kotler will distinguish:• Need: sense of lack felt in respect of general satisfaction related to the human condition.• Desire: preferred means of meeting a need.• Demand
The generic requirements are stable but the desires are many and changing. Therefore, the marketing, according to Kotler, just wants to influence by making the product attractive and available.
You can still make a distinction between: Needs articulated: it is the stated requirements (what the client says), needs no statements (what the customer expects) and imaginary needs (the dream of the client). Unmet articulated: what are the real needs (well-being of the client) and unconscious needs (which unknowingly motivate the client).
ii) The theories of needs:
The typology of Murray tells us that all individuals have the same needs but they are expressed differently from individual to individual. His typology differentiates basic needs (physiological) and secondary (other) positive (those that will attract the individual) and negative (give a bad image), clear (those who will influence the behavior) and latent (needs imaginary ) and finally the needs conscious or unconscious.
The Maslow hierarchy of needs is as follows:
Requirements fulfilled (5) (need to make things difficult to overcome)Esteem needs (4)Social needs (3) (being part of a social group)Security needs (2)Physiological needs (1)
These requirements do not exist to the same extent in all individuals. Need to move to the next one must first satisfy the lower levels of the pyramid.In addition, the individual does not appeal to the property only for practical reasons but to communicate with its environment. The property to be developed and designed to meet these needs should be designed accordingly.
Question: marketing creates he needs? it does not create basic needs, it needs influence derivatives. (Ex: mercedes: it addresses the need for social status but does not create the need for social status)
What limits should we give?
Legislation, ethical behavior ethics in the practice of management.
iii) purchasing patterns: (can be measured before, during and after)
Purchasing behavior is the set of activities that precede, accompany and follow the purchasing decisions.
We will hypothesize that the purchasing behavior (the act of purchase is an activity designed to solve a problem) follow a rational behavior. However, the behavior is rational within the limits of information held (DOT)!
The client has a role in behavior. This role is threefold: User: receiving the service, The payer: finance the purchase The purchaser buys ... The level of risk: when I buy a good try to have lots of product information to mitigate risk (eg auto = financial risk)Each role can be exercised by the same person or different people. (Ex: a mother, business ...)
In the process of buying, there are five steps:• Recognition of the problem,• Research information• Evaluation of possible solutions,• purchasing decisions,• Behaviour after purchase.
V. model of buying behavior
Model cpt purchasep 28
iv) The process of responding buyers:
It is a hierarchical model as it is considered as one moves from one level to another without skipping a level ... (This process is followed if the risk and degree of involvement is important)
First is the cognitive response that is receiving the information (= cognitive LEARN).Then comes the emotional response that is rather the evaluation of information (= emotional FEEL).Finally comes the behavioral response is the action given the information (= behavioral DO).
The model of Foote, Cone and Belding (FCB)Quadrant 1: learning processQuadrant 2: affective processQuadrant 3: minimal involvementQuadrant 4: hedonistic dimension
Slide 15 Page 30
Measures of cognitive response:
= Set of beliefs and information held by an individual.
There is awareness that the degree of brand awareness among the public. Awareness is- Spontaneous (ex: what brand of computer do you know?)- Power (eg, among the scrub, where do you know?)-There is also the recall of the brand is the memory
Measures of emotional response:
= Feelings, preferences, attitudes, intentions, favorable or unfavorable judgments.
The concept of attitude includes the mental state of the individual formed by the experience and knowledge gained, allowing him to structure his perceptions and preferences. We are in a model of "multi-attribute" to find out what criteria will be positive or negative. It is therefore in a decomposition approach (classification attribute) and composition (overall utility score based on the evaluation marks on different attributes).
Different matrices can be constructed.
Ex: Matrix importance / performance: see page 31 slide 18An attribute can be seen as very important for the buyer but not perceived as present in a brand.This matrix has two weaknesses: Performance is defined in absolute terms regardless of competitors. The best would be to analyze the performance relative to competitors. The importance scores do not measure the determination of an attribute. matrix determines / relative performance.Measures of behavioral response:
= Sales of the product, market share, brand loyalty, satisfaction / dissatisfaction.
A satisfied customer remains loyal longer, buy more, less is determined using prices and supports the company. Indeed, in many areas, over 80 to 90% of sales are made by existing customers. Win a new customer costs five times more than retaining an existing customer. The loss of profitable customers affect the results of a firm.Companies also find that 20 to 40% of customers are not profitable ...In addition, satisfaction begets loyalty. Indeed, the satisfaction is the main factor explaining the loyalty and long-term financial performance.We must create a culture that grows to excel in the interest of the client. A loyalty through a marketing relationship. We try to understand the type of client so as to best meet.
RMQ: it must be remembered that market knowledge is very important:Ex: Coca-Cola versus Pepsi launched the New Coke but the consumer preferred the old product because it also an image associated (United States, ...)
A few years ago believing Levi's leader has not changed in its models
Former types of studies:
Studies exploratory (qualitative): you ask some person representative sample of the population eg focus group (one to one interviews or expert)Market Studies (Quantitative) you ask more people. (Ex: questionnaire, telephone, Internet, mail ...)
v) The purchasing behavior in the industrial market:
Nature of request:
Demand is derived, ie independent of one or more applications downstream of its activity. The application is therefore relatively inelastic, fluctuating and its analysis is more complex.
Structure and nature of the client:
Purchasing decisions are made by decision-making centers of purchase or buying groups.Stakeholders are multiple (buyer, user, decision maker, ...).Buyers are buying fewer but more important. Trade relations when it found close ...
Type of industrial products:
They are developing products for other consumer products or industrial. They are also intended to enable the achievement of business operations. They are purchased for resale.
vi) The product in response to a need
The product (service) is a response to a need, it is a multi-attribute solution to a problem (basket of attributes). In addition, the product provides a functional value (served basis) and utilities and what side to stand out.RMQ: different products can meet the same need.
Ex: IKEANeed: to fill in a modern way for a good priceBasic function: providing designer furniture at a good priceAdditional services: restaurant, cafeteria and all for a purpose: to keep the consumer as long as the store. There is also the center and the corner to teens and that in order to give parents time to see the store occupants children.
CH. 3: Market segmentation.
i) The levels of segmentation:
The macro segmentation is to identify the products markets, this analysis is most often used in industry it is not sufficient for the services or consumer products
The micro segmentation that it identifies the consumer segments goal is to develop a marketing program that meets the needs of these consumers.
ii) Macro segmentation:
We define the relevant market of pt of view of the buyer in terms of "solutions to a problem.
We will ask three questions:• What are the different groups of potential buyers?• What are the different needs to meet (solution to?)• What existing technologies to meet those needs?•Here are the structures of the relevant market:
• A product market: a generic need for specific client group with a particular technology• A market solution: all the possible technologies for a need and a group of customers.• An industry: is defined by technology, regardless of the needs and client groups
iii) The analysis of segmentation:
It will be different from product to product. It has a simple logic, but is difficult to achieve. Are analyzed by type of consumer products.RMQ: Segment = cut
Target = take a segment
iv) The different types of segmentation:
Demographic segmentation:
Consumers have different demographics. The aim is to group them according to these characteristics (eg gender, age, household size, family composition, income, occupation, education).
The advantages are:
Easy access to information, Easy access by a targeted marketing mix.
The disadvantages are:
Consumers do they share the same needs?
Underestimation of the cultural trends;
No new or original segmentations
Eg: Fisher Price: age; Magazines: sex, cosmetics, sex, cars: income
Segmentation by benefits sought:
Here, the consumer looking for different benefits or profits. These benefits may differ by class of products studied. This segmentation involves understanding: the list of attributes or benefits associated with the product category,
an assessment of the relative importance of each attribute
a group of buyers that give equal weight to attributes.
It is therefore in the presence of a multi-attribute model.
The advantage is:
The segmentation makes sense ...
The disadvantages are:
Difficulty of identifying the benefits to favor
Conducting market research rather expensive
Loss of recognition of the socio-demographic profile
Eg• Prices: Seiko, Pulsar, Citizen, Picture / Symbol: Rolex; Elegance / Fashion: Gucci, Armani, Sportsmanship; Toghueuer, Breitling, Refinement: Patek Philippe• Spa: Benefits sought: the taste of water, composition, price, packaging practice, patriotism, the symbolic image of the brand.
But do not forget that it is better to make a classification of these benefits and know their percentage.
Psychographic segmentation:
Consumers can be grouped according to their opinions or their value system. So according to their lifestyle they are grouped. (Ex: organic product). Some consulting firms are conducting studies to identify major trends in lifestyle (socio-styles).
The advantages are:
The need is more related to trends or lifestyles. Identification of new original segments.
The disadvantages are:
Studies of socio-styles: the incentives are not always reliable or representative ...
Doing so will make bad decisions.
Eg study of society MOPER:The goal is to understand the motivations and values of € pean (1000 persons dabs 35 countries)
Identification of six groups in € pe:Dynamics: material values and objectivesprofessionalDevotees: duty and traditionThe altruistic: Question and social welfareThe intimate: Relationships and familyThe hedonistic: welfare and serviceThe creative education, knowledge and technology
Nokia: 650 million potential users around the world divided into 10 categories:Wealthy executivesThe young forward-thinkingThe motherThe perennial concern ...
Behavioral Segmentation:
Consumers are grouped according to their buying behavior. The criteria are eg the user status, the utilization rate, loyalty status, ...
There are two types of segmentation:
to a variable:One variable is used to segment the market, the segment is finding therefore less accurate. Multi-variables:We take various criteria that we will cut on a variable or two. We then have more information on consumers, marketing mix is more satisfying by segment and there is less consumer segment.
Exercise: Segment the market for cars:
1. demographic segmentation:- Revenue: low - medium - high- Household size: small - medium - large- Age: young - adult - elderly2. segmentation by benefits sought:- Price- Security- Performance- Design- Brand (sports, social status, ...)- Related services- Functionality, comfort- Consumption- Pollution- The quality (origin of the car)3. Psychographic segmentation:- The eternal concern- The green- Social success- The traditional4. behavioral segmentation:- Utilization (km)- The non-user or the user loyal-Another example Findus: socio demographic: urban singles under 35
Benefits sought: food diet, varied without
cook
The conditions for an effective segmentation of demand homogeneous segments (similar needs within the segment), Measurable (segments comparable in size, volume, costs and profit), substantial (segment generating enough profit potential) and accessible ( marketing efforts, is that I can touch that part of marketing?).
v) Industrial Market Segmentation:
There are three types of segmentation:
a) benefits sought by:
This is the most natural because it is based on specific needs and defined. It classifies customers by type of industry and end user. (Ex: Arcelor interest to segment customers according to their needs will be different because the (auto industry, appliance, construction)
b) socio-demographic
These are the criteria describing the profile of the industrial customer (eg, activity, geographic location, size (small, ...), the composition of shareholders, ...
c) Behavioral Segmentation:
Segmentation is more common, there gathers the customers according to their structures and how their works mall.
Eg: P & G that the segmentation is done by benefits sought:- Whiteness: Dash- Removal of tasks: Ariel- Ease of use: Vizier- Price: Bonux- Protection of laundry: Dreft
vi) Hedging Strategies:
a) undifferentiated marketing strategy:
The goal is to treat the market as a whole. It does not take account of different segments.
b) differentiated marketing strategy:
The aim is to target several market segments and process each segment with different marketing strategies. The costs are higher as a marketing program is tailored to each segment.
Eg: L'Oreal: L'Oreal Paris, Vichy, Biotherm, Helena Rubenstein,
Lancôme
c) Marketing strategy focused:
The goal is to specialize in one segment due to lack of means, no capacity to go into several segments. It is more suitable for SMEs.We try to be the best in the segment selected.
The choice of strategy will depend on the number of profitable segments and corporate resources.
vii) Targeting:
Targeting is based on the analysis of attractiveness (= changes in demand) and competitiveness (competitive position + strengths and weaknesses of competitors).It will allow you to select target segments that the company wants to occupy. Segment consists of cutting the market while targeting is to select themarket segments to occupy.Objectives and corporate resources also play a role
This step is crucial because it guides the development of the company.
Targeting is based on:
• Analysis of attractiveness: the level of demand and the life cycle phases• Analysis of competitiveness: competitive position, strengths and weaknesses of competitors and the ability of the company.
.
CH. 4: Targeting - Analysis of attractiveness
i) Basic concepts:
There are two types of applications:
1. The primary demand:
That market demand = total quantity purchased by a group of buyers in a given place and at any given time in a given environment.
2. Demand to the company:
This is the request to the brand = share of primary demand corresponding to the market share held by the mark in a particular market.
Eg brand A has a volume growth of 15% with a primary demand of 15% believes that it is stable
Brand A has a volume growth of 15% with a primary demand of 20% believes that it is not stable
A brand volume decrease of 5% with a primary demand decreases by 20% worse
The primary demand is a function of determinants of demand.We must distinguish: - environmental factors out of control for the enterprise and end users, intermediate customers (distributors), competitors, ...
- Total pressure marketing: the 4P.
Growth opportunities:
Slide 6 page 52
The current market potential depends on the pressure exerted marketing, while the market potential is an absolute limit to which tends primary demand:
• Any potential user of a product is effective user;• Each user uses the product on each occasion of use;• Each user is performed at the optimal dose.
Eg oral hygiene market
ii) The model of life cycle:Demand changes over time:
Slide 14 p 56
In this strategic analysis of CVP at each stage:
The economic and competitive environment is different, The strategic objective is redefined The costs and benefits are different The marketing program is rehabilitated.
CVP applications are:
The life cycle of a product market which is different in each product market and its function (technology) but also the market (aggregate demand)
The life cycle of a trademark in which the variables are under the control of the company.
Explain the different phases:
(A) Phase of introduction:
Sales growth is very slow.
Ch 1: The role of marketing in the company.
i) Development of management methods:
Different possible orientations:
• Orientation production (the choice is made according to the price and availability). The goal is to increase the capacity and performance.• Orientation product (choose the product that offers the best performance). The goal is to improve the quality of the product.• Orientation sale (product selection is made according to the intensity of the selling pressure. "The products are bought, not sold") the goal is to use sales techniques and more aggressive.• Marketing Orientation (needs must be understood in order to satisfy them). Develop products or services that meet those needs.ii) Definition of marketing:
The company must identify the needs and desires (1) of the target consumers (2) and produce satisfying (3) desired a cost effective manner (4), as more effective (4) competition (5). The central objective is to satisfy the consumer.
(1) To identify needs, we do market research(2) It is not intended to affect all consumers, we are interested in a segment
particular(3) Develop products that will satisfy consumers(4) the profitability of the company is the ultimate goal of the marketing approach(5) must be very familiar with what the competition
marketing approach allows companies to be more efficient in the design and marketing of its products.
The concept of market-orientation (dd Lambin) refers to the fact that the company considers ts stakeholders who influence the purchase decision of the client (broad market)
all functions of the company are market oriented.
We can say that there is a management philosophy through the need for customer satisfaction
The integration of activities to meet those needs
Obtaining long-term profit through meeting these needs
Marketing has two faces: Strategic: it is a process of analysis. It gathers information and analyzes the market to understand the consumers, the environment, ... Operational: it is the process of implementation, implementation. He represents all that was decided in a marketing perspective, it is therefore the most visible careful not to confuseRMQ: we talk about the 4 P's: product, price, place (distribution) Promotion (consumer)
There are five steps in the strategic and operational marketing:
a) Analysis of market opportunities:It is both an external analysis (customers, competitors, market, environment) and internal to (company). We analyze the opportunities and threats and the strengths and weaknesses.
b) Segmentation (meeting consumer as needed) target markets:Here the choice of segmentation criteria will play an important role.
c) Phase of targeting, attractiveness / competitiveness:The following development strategies, and selecting one or the other segment attractive.
d) Positioning:It identifies differentiation. + Positioning strategies question is how to differentiate itself from other
e) Marketing mix:With the 4 P: Product, Price, Pomotion (Communication), Place
(Distribution).
A to d = strategic marketing, operational marketing e =
The concept of marketing includes three dimensions:
• An analytical dimension (= understanding of markets)• A dimension of action (= market penetration)• An ideological dimension (= market-oriented culture).
RMQ: do not confuse marketing with advertising, promotions, communication, sales techniques
iii) Evolution of Marketing
Some companies have addressed the marketing through advertising or promotions. Others, such as industrial, considered that the marketing (advertising sales) was not for them. Some companies claim to practice marketing without any real consideration of strategic marketing ...
There are three action areas of marketing:- Individuals (B to C: business to consumer) is interested in the final consumer is a marketing of goods and services- Organizations (B to B: business to business eg Renault and Arcelor: the plate is not for the final consumer)
- Non-profit organizations
There are different types of strategic marketing:• strategic marketing response involved the identification of unmet needs by developing a solution (innovation driven by the market)• strategic marketing to create checks for the existence of a market, size, and includes key success factors (innovation driven by the company).
cooperation between marketing and research and development is fundamental.
An observation is unfortunate ... There is indeed a dissatisfaction vis-à-vis the traditional marketing. There are no satisfactory measures of performance of marketing investments, or long-term relationship with consumers.Therefore, the solution is to move towards market: all business functions take into account all the stakeholders who influence the buying decision.Therefore, the role of marketing will strengthen as markets mature and needs saturated, there is widespread acceleration of technological progress and increased internationalization of the markets.
iv) Major changes affecting the marketing:
cultural change:For emergence of new segments (seniors, one-person households eg creation of frozen meal, working women delivery of home race new opportunities), new consumers (buying behavior has changed) and consumerism (movement for consumer protection.) (Cross-power group of consumer advocacy group).
Development of new technologies:Technological competition becomes greater. There is also a disruption of the boundaries of existing areas, as well as a need to redefine the reference markets ...
Ecological Movement:There is an awareness of the scarcity of natural resources, an awareness of the impact of consumption and marketing on the environment. Therefore, there is a new goal: improving the quality of life and not customer satisfaction. (Ex: Pampers diaper generates millions of jobs each year biodegradable materials)
Power of retailers:There are more and more creative private labels, and powerful purchasing groups to increase their bargaining power.
Emergence Marketing responsible or ethicalThere is need for more ethical behavior and accountability. Consumer interest in the long run is more important.
Globalization of the economy:There is a globalization of markets, the interdependence between them and a globalization strategy that allows for substantial economies of scale.
All this of course has an impact on marketing strategies.
v) The boundaries of marketing:
• Meeting the needs in the short or long term?• Satisfaction of individual or collective needs?• Products required by the market or driven by technology?
vi) Current topics:
Global Marketing:Here there are defining marketing strategies in global or regional level. There is a search for economies of scale generated by the development of standardization as well as international brands at the expense of local brands. (Ex: BBL now ING)But then arises the dilemma of standardization or adaptation?
Relationship Marketing:We want to create relationships with customers as a loyal customer is more profitable than a new customer. There is then created different levels of relationship.
Trade Marketing:Here, the retailer is using marketing to its advantage. There is a development of strategies for segmentation and positioning. We launch private labels (eg intersection).
Direct and Interactive Marketing:Access to targeted information and new information channels and sales. There is a possibility to customize messages and contacts with the client.
Brand Management:The brand has an existence beyond the product and provides tangible and intangible benefits. Brands have become the capital of the company. New strategies such as the extension of the brand, the co-branding or changing the names are put in place.
In conclusion, we can say that marketing is indeed a management philosophy. It focuses on understanding consumer needs. Strategic marketing is the most important part of marketing thinking. Operational marketing is the execution.
Part 2: Development of Strategic Marketing
CH. 2: Analysis of needs and behaviorsof the buyer.
i) The concept of need:
The requirement is a requirement of nature or society.We distinguish two types of need: generic needs (basic needs) they are innate needs, natural needs derivatives: what needs are acquired, cultural and social.
Ex; GSM: the aim is to communicate, it is derived from the basic needThese are needs that must be generic answers.
Indeed, the derivative needs is a response made to the technological needs as well as generic object of desire. Saturation will affect the need and not the generic derivative. The company must then define its mission in terms of required credits.Kotler will distinguish:• Need: sense of lack felt in respect of general satisfaction related to the human condition.• Desire: preferred means of meeting a need.• Demand
The generic requirements are stable but the desires are many and changing. Therefore, the marketing, according to Kotler, just wants to influence by making the product attractive and available.
You can still make a distinction between: Needs articulated: it is the stated requirements (what the client says), needs no statements (what the customer expects) and imaginary needs (the dream of the client). Unmet articulated: what are the real needs (well-being of the client) and unconscious needs (which unknowingly motivate the client).
ii) The theories of needs:
The typology of Murray tells us that all individuals have the same needs but they are expressed differently from individual to individual. His typology differentiates basic needs (physiological) and secondary (other) positive (those that will attract the individual) and negative (give a bad image), clear (those who will influence the behavior) and latent (needs imaginary ) and finally the needs conscious or unconscious.
The Maslow hierarchy of needs is as follows:
Requirements fulfilled (5) (need to make things difficult to overcome)Esteem needs (4)Social needs (3) (being part of a social group)Security needs (2)Physiological needs (1)
These requirements do not exist to the same extent in all individuals. Need to move to the next one must first satisfy the lower levels of the pyramid.In addition, the individual does not appeal to the property only for practical reasons but to communicate with its environment. The property to be developed and designed to meet these needs should be designed accordingly.
Question: marketing creates he needs? it does not create basic needs, it needs influence derivatives. (Ex: mercedes: it addresses the need for social status but does not create the need for social status)
What limits should we give?
Legislation, ethical behavior ethics in the practice of management.
iii) purchasing patterns: (can be measured before, during and after)
Purchasing behavior is the set of activities that precede, accompany and follow the purchasing decisions.
We will hypothesize that the purchasing behavior (the act of purchase is an activity designed to solve a problem) follow a rational behavior. However, the behavior is rational within the limits of information held (DOT)!
The client has a role in behavior. This role is threefold: User: receiving the service, The payer: finance the purchase The purchaser buys ... The level of risk: when I buy a good try to have lots of product information to mitigate risk (eg auto = financial risk)Each role can be exercised by the same person or different people. (Ex: a mother, business ...)
In the process of buying, there are five steps:• Recognition of the problem,• Research information• Evaluation of possible solutions,• purchasing decisions,• Behaviour after purchase.
V. model of buying behavior
Model cpt purchasep 28
iv) The process of responding buyers:
It is a hierarchical model as it is considered as one moves from one level to another without skipping a level ... (This process is followed if the risk and degree of involvement is important)
First is the cognitive response that is receiving the information (= cognitive LEARN).Then comes the emotional response that is rather the evaluation of information (= emotional FEEL).Finally comes the behavioral response is the action given the information (= behavioral DO).
The model of Foote, Cone and Belding (FCB)Quadrant 1: learning processQuadrant 2: affective processQuadrant 3: minimal involvementQuadrant 4: hedonistic dimension
Slide 15 Page 30
Measures of cognitive response:
= Set of beliefs and information held by an individual.
There is awareness that the degree of brand awareness among the public. Awareness is- Spontaneous (ex: what brand of computer do you know?)- Power (eg, among the scrub, where do you know?)-There is also the recall of the brand is the memory
Measures of emotional response:
= Feelings, preferences, attitudes, intentions, favorable or unfavorable judgments.
The concept of attitude includes the mental state of the individual formed by the experience and knowledge gained, allowing him to structure his perceptions and preferences. We are in a model of "multi-attribute" to find out what criteria will be positive or negative. It is therefore in a decomposition approach (classification attribute) and composition (overall utility score based on the evaluation marks on different attributes).
Different matrices can be constructed.
Ex: Matrix importance / performance: see page 31 slide 18An attribute can be seen as very important for the buyer but not perceived as present in a brand.This matrix has two weaknesses: Performance is defined in absolute terms regardless of competitors. The best would be to analyze the performance relative to competitors. The importance scores do not measure the determination of an attribute. matrix determines / relative performance.Measures of behavioral response:
= Sales of the product, market share, brand loyalty, satisfaction / dissatisfaction.
A satisfied customer remains loyal longer, buy more, less is determined using prices and supports the company. Indeed, in many areas, over 80 to 90% of sales are made by existing customers. Win a new customer costs five times more than retaining an existing customer. The loss of profitable customers affect the results of a firm.Companies also find that 20 to 40% of customers are not profitable ...In addition, satisfaction begets loyalty. Indeed, the satisfaction is the main factor explaining the loyalty and long-term financial performance.We must create a culture that grows to excel in the interest of the client. A loyalty through a marketing relationship. We try to understand the type of client so as to best meet.
RMQ: it must be remembered that market knowledge is very important:Ex: Coca-Cola versus Pepsi launched the New Coke but the consumer preferred the old product because it also an image associated (United States, ...)
A few years ago believing Levi's leader has not changed in its models
Former types of studies:
Studies exploratory (qualitative): you ask some person representative sample of the population eg focus group (one to one interviews or expert)Market Studies (Quantitative) you ask more people. (Ex: questionnaire, telephone, Internet, mail ...)
v) The purchasing behavior in the industrial market:
Nature of request:
Demand is derived, ie independent of one or more applications downstream of its activity. The application is therefore relatively inelastic, fluctuating and its analysis is more complex.
Structure and nature of the client:
Purchasing decisions are made by decision-making centers of purchase or buying groups.Stakeholders are multiple (buyer, user, decision maker, ...).Buyers are buying fewer but more important. Trade relations when it found close ...
Type of industrial products:
They are developing products for other consumer products or industrial. They are also intended to enable the achievement of business operations. They are purchased for resale.
vi) The product in response to a need
The product (service) is a response to a need, it is a multi-attribute solution to a problem (basket of attributes). In addition, the product provides a functional value (served basis) and utilities and what side to stand out.RMQ: different products can meet the same need.
Ex: IKEANeed: to fill in a modern way for a good priceBasic function: providing designer furniture at a good priceAdditional services: restaurant, cafeteria and all for a purpose: to keep the consumer as long as the store. There is also the center and the corner to teens and that in order to give parents time to see the store occupants children.
CH. 3: Market segmentation.
i) The levels of segmentation:
The macro segmentation is to identify the products markets, this analysis is most often used in industry it is not sufficient for the services or consumer products
The micro segmentation that it identifies the consumer segments goal is to develop a marketing program that meets the needs of these consumers.
ii) Macro segmentation:
We define the relevant market of pt of view of the buyer in terms of "solutions to a problem.
We will ask three questions:• What are the different groups of potential buyers?• What are the different needs to meet (solution to?)• What existing technologies to meet those needs?•Here are the structures of the relevant market:
• A product market: a generic need for specific client group with a particular technology• A market solution: all the possible technologies for a need and a group of customers.• An industry: is defined by technology, regardless of the needs and client groups
iii) The analysis of segmentation:
It will be different from product to product. It has a simple logic, but is difficult to achieve. Are analyzed by type of consumer products.RMQ: Segment = cut
Target = take a segment
iv) The different types of segmentation:
Demographic segmentation:
Consumers have different demographics. The aim is to group them according to these characteristics (eg gender, age, household size, family composition, income, occupation, education).
The advantages are:
Easy access to information, Easy access by a targeted marketing mix.
The disadvantages are:
Consumers do they share the same needs?
Underestimation of the cultural trends;
No new or original segmentations
Eg: Fisher Price: age; Magazines: sex, cosmetics, sex, cars: income
Segmentation by benefits sought:
Here, the consumer looking for different benefits or profits. These benefits may differ by class of products studied. This segmentation involves understanding: the list of attributes or benefits associated with the product category,
an assessment of the relative importance of each attribute
a group of buyers that give equal weight to attributes.
It is therefore in the presence of a multi-attribute model.
The advantage is:
The segmentation makes sense ...
The disadvantages are:
Difficulty of identifying the benefits to favor
Conducting market research rather expensive
Loss of recognition of the socio-demographic profile
Eg• Prices: Seiko, Pulsar, Citizen, Picture / Symbol: Rolex; Elegance / Fashion: Gucci, Armani, Sportsmanship; Toghueuer, Breitling, Refinement: Patek Philippe• Spa: Benefits sought: the taste of water, composition, price, packaging practice, patriotism, the symbolic image of the brand.
But do not forget that it is better to make a classification of these benefits and know their percentage.
Psychographic segmentation:
Consumers can be grouped according to their opinions or their value system. So according to their lifestyle they are grouped. (Ex: organic product). Some consulting firms are conducting studies to identify major trends in lifestyle (socio-styles).
The advantages are:
The need is more related to trends or lifestyles. Identification of new original segments.
The disadvantages are:
Studies of socio-styles: the incentives are not always reliable or representative ...
Doing so will make bad decisions.
Eg study of society MOPER:The goal is to understand the motivations and values of € pean (1000 persons dabs 35 countries)
Identification of six groups in € pe:Dynamics: material values and objectivesprofessionalDevotees: duty and traditionThe altruistic: Question and social welfareThe intimate: Relationships and familyThe hedonistic: welfare and serviceThe creative education, knowledge and technology
Nokia: 650 million potential users around the world divided into 10 categories:Wealthy executivesThe young forward-thinkingThe motherThe perennial concern ...
Behavioral Segmentation:
Consumers are grouped according to their buying behavior. The criteria are eg the user status, the utilization rate, loyalty status, ...
There are two types of segmentation:
to a variable:One variable is used to segment the market, the segment is finding therefore less accurate. Multi-variables:We take various criteria that we will cut on a variable or two. We then have more information on consumers, marketing mix is more satisfying by segment and there is less consumer segment.
Exercise: Segment the market for cars:
1. demographic segmentation:- Revenue: low - medium - high- Household size: small - medium - large- Age: young - adult - elderly2. segmentation by benefits sought:- Price- Security- Performance- Design- Brand (sports, social status, ...)- Related services- Functionality, comfort- Consumption- Pollution- The quality (origin of the car)3. Psychographic segmentation:- The eternal concern- The green- Social success- The traditional4. behavioral segmentation:- Utilization (km)- The non-user or the user loyal-Another example Findus: socio demographic: urban singles under 35
Benefits sought: food diet, varied without
cook
The conditions for an effective segmentation of demand homogeneous segments (similar needs within the segment), Measurable (segments comparable in size, volume, costs and profit), substantial (segment generating enough profit potential) and accessible ( marketing efforts, is that I can touch that part of marketing?).
v) Industrial Market Segmentation:
There are three types of segmentation:
a) benefits sought by:
This is the most natural because it is based on specific needs and defined. It classifies customers by type of industry and end user. (Ex: Arcelor interest to segment customers according to their needs will be different because the (auto industry, appliance, construction)
b) socio-demographic
These are the criteria describing the profile of the industrial customer (eg, activity, geographic location, size (small, ...), the composition of shareholders, ...
c) Behavioral Segmentation:
Segmentation is more common, there gathers the customers according to their structures and how their works mall.
Eg: P & G that the segmentation is done by benefits sought:- Whiteness: Dash- Removal of tasks: Ariel- Ease of use: Vizier- Price: Bonux- Protection of laundry: Dreft
vi) Hedging Strategies:
a) undifferentiated marketing strategy:
The goal is to treat the market as a whole. It does not take account of different segments.
b) differentiated marketing strategy:
The aim is to target several market segments and process each segment with different marketing strategies. The costs are higher as a marketing program is tailored to each segment.
Eg: L'Oreal: L'Oreal Paris, Vichy, Biotherm, Helena Rubenstein,
Lancôme
c) Marketing strategy focused:
The goal is to specialize in one segment due to lack of means, no capacity to go into several segments. It is more suitable for SMEs.We try to be the best in the segment selected.
The choice of strategy will depend on the number of profitable segments and corporate resources.
vii) Targeting:
Targeting is based on the analysis of attractiveness (= changes in demand) and competitiveness (competitive position + strengths and weaknesses of competitors).It will allow you to select target segments that the company wants to occupy. Segment consists of cutting the market while targeting is to select themarket segments to occupy.Objectives and corporate resources also play a role
This step is crucial because it guides the development of the company.
Targeting is based on:
• Analysis of attractiveness: the level of demand and the life cycle phases• Analysis of competitiveness: competitive position, strengths and weaknesses of competitors and the ability of the company.
.
CH. 4: Targeting - Analysis of attractiveness
i) Basic concepts:
There are two types of applications:
1. The primary demand:
That market demand = total quantity purchased by a group of buyers in a given place and at any given time in a given environment.
2. Demand to the company:
This is the request to the brand = share of primary demand corresponding to the market share held by the mark in a particular market.
Eg brand A has a volume growth of 15% with a primary demand of 15% believes that it is stable
Brand A has a volume growth of 15% with a primary demand of 20% believes that it is not stable
A brand volume decrease of 5% with a primary demand decreases by 20% worse
The primary demand is a function of determinants of demand.We must distinguish: - environmental factors out of control for the enterprise and end users, intermediate customers (distributors), competitors, ...
- Total pressure marketing: the 4P.
Growth opportunities:
Slide 6 page 52
The current market potential depends on the pressure exerted marketing, while the market potential is an absolute limit to which tends primary demand:
• Any potential user of a product is effective user;• Each user uses the product on each occasion of use;• Each user is performed at the optimal dose.
Eg oral hygiene market
ii) The model of life cycle:Demand changes over time:
Slide 14 p 56
In this strategic analysis of CVP at each stage:
The economic and competitive environment is different, The strategic objective is redefined The costs and benefits are different The marketing program is rehabilitated.
CVP applications are:
The life cycle of a product market which is different in each product market and its function (technology) but also the market (aggregate demand)
The life cycle of a trademark in which the variables are under the control of the company.
Explain the different phases:
(A) Phase of introduction:
Sales growth is very slow.
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