Marketing Essay, Research Paper
Lecture 1: Introduction to Marketing
Selling is the direction procedure responsible for placing, expecting and fulfilling clients demands profitableness.
Peter Drucker there is merely one valid definition of concern intent: to make a client. At its simplest, if you do non hold any clients for the merchandise or serve your organisation offers, so there is no ground for go oning being.
Consumption is the exclusive terminal and intent of all production and the involvements of the merchandise ought to be attended to merely so far as it may be necessary for advancing those of the client.
The operational maps of selling: gross revenues publicity, advertisement, public dealingss, merchandising, funding, purchasing, prediction, pricing, standardisation, promotion, trading, market research, transporting, risk-taking, serving and stockholding.
Elementss over which organisations have control and which are used to seek to act upon clients to take one peculiar organisation in penchant to another are by and large termed the selling mix. External factors in the original selling mix: customer-buying behaviour, trade behaviour, rivals place and behaviour, authorities ordinances.
The 4 P s of Marketing.
Originally there are 12 P s of selling but this list is non easy to retrieve and it should be obvious why Jerome McCarthy condensed the 12 points in Borden s original selling mix, into 4 major classs popularized the 4 Ps. The internal variables are hence slackly grouped together under the headers of: merchandise, monetary value, topographic point ( the offer mix ) , and publicity ( the promotional mix ) .
While the 4 Ps is a utile model, a vigorous argument has taken topographic point over the last decennary about the dangers of seeing marketing entirely as the control of the 4 Ps. In fact it is a trap that tends to do providers bury the demands of clients every bit good as the importance of a reciprocally good exchange. There is a suggestion of the add-on of three other Ps: Probe ( research ) , Partition ( cleavage ) and Position.
Lecture 2. The Marketing Macro Environment.
Both of the parties doing an exchange are more likely to see that the exchange has been good when the exchange has been made within the context of what is known as an Open Market. This is a market which has all of the undermentioned features: 1 Single homogenous merchandise, 2 Many purchasers, 3 Many Sellerss, 4 Buyers and Sellerss have equal entree to all available information relevant to the market.
All developed societies have similar ordinances to modulate legal trade. It is hence usual for fabrication and trading organisations to hold to follow with such ordinances, which efficaciously constitute one facet of the environment in which an exchange takes topographic point. These factors are for this ground referred to as the environmental variables of selling. These are normally labeled the Economic, Social, Technological and Political variables ( STEP ) .
Companies should seek to show good corporate citizenship by continuing the missive and the spirit of the jurisprudence, and by and large acting in a responsible and antiphonal mode. Some markets and trades have developed general voluntary codifications of behavior and control, supported and monitored by a cardinal rank organic structure. Medicine for illustration has long been controlled by rigorous codifications of professional behaviour.
Governments have developed a organic structure of statute law and enforcement models in regard of industry and trade. In peculiar, the following countries of control are of direct concern to concern. 1. Legislation in regard of monopoly and competition criterions. In the UK it s done through the Office of Fair Trading and the Monopolies and Mergers Commission. As a full EC member, the UK is besides capable to Community commissariats in regard of issues: in peculiar Article 85 of the Treaty of Rome concerns patterns impeding competition. 2. Measures to protect consumers, whether as groups, persons, as users of certain merchandises and services, or peculiarly as marks for concern activities.
Relevant statute law has included the Trade Descriptions Act 1973, the Consumer Credit Act 1974, etc. Number of these legislative acts introduced steps straight associating to marketing patterns such as pricing claims, guarantees, merchandise quality, etc.
The economic environment is a complex web of international, domestic and regional influences and dependences that shape the market possible facing companies. Company public presentation itself will depend critically on the quality of readying and determination devising is brought to bear on this possible. The significance of the economic information is that over clip they will bespeak major economic developments of direct involvement to sellers. Such economy-watching may enable the argus-eyed company to react in clip to scenarios such as followers:
1.Recession. A downswing in economic activity of variable strength. Usual indexs will be a autumn or grading in GNP, GDP, household income, etc. Rises will be recorded in steps such as stock, unemployment and company bankruptcies.
2.Recovery. The antonym of the above. Sellers in some sectors will profit from an early upturn in gross revenues. Major upturns in economic activity may ensue in overheating with higher costs and monetary values.
3.Inflation. Rising monetary values may be associated with floaty conditions, demand growing and deficits. Economic policies are likely in future to be more straight influenced by many-sided bureaus and understandings ( UN ) and the enlargement of common market axis such as the EC.
Culture within any society id the composite of elements that reflect the society s beliefs and values, penchants and behavioural norms. For seller it is necessary to understand that civilization will change within and between societies, so those cultural norms may change between states, parts and civilization groups. Factors, which distinguish a society, alter really easy, as they are the merchandises of household upbringing, the instruction system, national history and political development, faith, etc. Environmental consciousness is an interesting contemplation of how society-wide concerns have delivered a powerful message to authoritiess and concern leaders.
Technology is the standard of economic advancement, a taking beginning of competitory advantage commercially and an indispensable portion of mundane life style for the modern consumer. To exemplify the competitory force wielded by engineering, it is deserving detecting that many industries have been affected by engineering developments remote from their ain field. Major sectors of the metalworking industry were disused by the developments of digital electronics. Eg typewriters. Technological developments decrease the monetary value of production. Technologies have besides enabled an addition in the assortment of merchandises available to clients.
The selling environment comprises the playing field upon which competitory selling takes topographic point. Companies need to supervise and make up one’s mind rational responses to alterations in the environment in order to win their colourss. There are three types of companies: those who make things happen ; those who watch things happen ; and those who wonder what happened.
Lecture 3: Markets and Market Segmentation.
1.A market is an sum of people who as persons or organisations have demands for merchandises in a peculiar merchandise category and who have the ability, willingness and the authorization to pay.
2.Types of markets.
– Consumer where buying is done by private or group of persons.
– Industrial merchandises and services are bought for one of 3 specific utilizations: 1- resale, 2- bring forthing other merchandises, 3- merchandises used in general eg disposal, computing machines.
3.Differentiated markets. Consumer demands are non the same: & # 8211 ; homogeneous, differentiated. Undifferentiated market all demands are the same
4.Criteria for effectual cleavage & # 8211 ; mensurable, & # 8211 ; economically variable.
Methods of Market Segmentation.
Geographic geographic place on the Earth.
Demographic footing for the aggregation of many authorities statistics and the criterion system used by the media industry. Includes age, sex, household rhythm, and socioeconomic cleavage.
Family life rhythm.
A B C D E F
A individual, B- immature married, C- immature married, kids, D- older married, older kids ( full nest ) , E- old married, F- old individual.
Socio economic cleavage
A and B upper/upper center, C1- center, C2- lower center, D and E skilled/unskilled manual.
Life manner contemplation of the category, what people are interested in.
Psychographic life style,
Personality eg BA flight. Staff has to be trained to cover with different personalities. 1 Apologetic. 2 nice cat. 3 Playboy. 4 Knawks ( I paid for ticket, so function me )
Behavioral benefit what are the benefits a merchandise has? Eg toothpaste to clean dentitions
User heavy or light users of the merchandise eg mobile phone usage.
1.Spatial distribution of cardinal demographic variables
2.Acorn ( a categorization of residential vicinities ) eg modern lodging higher income 7.4 % , urban local authorization lodging 20 % .
Lecture 4. Market offerings.
Merchandise is everything that consumer receives that is of value in footings of a sensed privation, need or job.
It is the pattern of giving a typical designation normally a name, symbol or design to a merchandise or scope of merchandises, and through use and publicity set uping this designation in the market place. Brand names by and large involve names which are: easy to retrieve, typical, easy to spell and easy to articulate ( ideally irrespective of linguistic communication ) . In taking trade name names and developing a stigmatization scheme, industries may choose for:
1.Multiproduct trade names, where the carbon monoxide. Uses one criterion trade name name, frequently the co. name for all its merchandises
2.Multibrand merchandises involve a industry delegating different trade name names to different merchandises. This pattern is seen in consumer good sector such as coffin nails.
3.Retailer ain trade names predominately associated with consumer retail ironss where own-label trade names have proved a utile beginning of auxiliary concern of some makers.
Consumer merchandises Industrial merchandises Durables
Shoping goods Capital points
Forte goods Accessories
Convenience goods Materials constituents Consumables
Fast traveling consumer goods.
– Convenience goods often purchased eg newspapers
– Forte goods purchased from specialist retail merchants eg prescription medical specialty.
Consumer Durabless they are purchased for the benefit they provide in themselves.
Can be divided into the following 3 classs:
– Shopping goods merchandises that are normally selected after shopping about to compare monetary value, etc.
– Forte goods merchandise, which is merely available from, limited figure of mercantile establishments. Eg auto spares.
– Emergency lasting goods merchandises which purchasers are likely to necessitate without hold. Eg replacing windshields.
Industrial goods those bought by organisations fabricating or providing merchandises or supplying services.
– Capital works and equipment includes those merchandises which are required by an organisation to transport out the aim for which it exists and which thereby increases the organisation s gross bring forthing capacity.
– Accessories do non straight increase the capacity eg serving aeroplane.
– Materials and constituents physical inputs to the production and bringing of the concluding merchandise. Eg natural stuffs
– Supplies ( consumables ) merchandises which are used in production such as lubricators, cleaning stuffs. By and large fall into classs based on use such as care.
Lecture 5. Merchandise Policy.
The merchandise life rhythm. Merchandises are finite ; some have longer life rhythm than others do.
A B C1 C2
Eg Single Cadmium
A Introduction phase most critical clip like all birth
B Growth phase rapid rise in gross revenues
C1 Growth Maturity gross revenues increasing but at slower rate
C2 Stable Maturity
C3 Decay Maturity
Introduction A High profile high monetary value high publicity. Advanced merchandise is being introduced
B Selective incursion high monetary value low publicity. The market section must be comparatively little. Peoples are prepared to pay premium to hold foremost. All merchandises, which are pre-positional everlastingly eg, ticker.
C Preemptive low monetary value high publicity. Purposes at conveying about the highest rate of market incursion. Price sensitive merchandises, must hold a high monetary value snap of demand. Some sold at loss.
D Low profiles low monetary value low publicity. Market must be big. Market must be cognizant of the merchandise. Market is monetary value medium.
Growth Availability ( PDM ) Relative diminution in publicity
A B C
– merchandise re-launch merchandise alteration, market repositioning
1.Continuation scheme like a adulthood
2.Milking scheme no advertisement, no support, maximise gross
3.Concentration scheme dressed ores on those heavy users and targets the publicity on them.
Lecture 6: Ad.
The committee system: ABOVE THE LINE payments of committee to bureau.
BELOW THE LINE does non affect payments of committee eg direct mail. In the UK bureau takes about 10 % of cost of adv.
Conative carrying people to make things. Affective concerned with acquiring people to make full certain emotions about the merchandise. Cognitive concerned with doing people believe something.
Corporate individuality physical manifestations e.g. logo, design of letters, etc.
Corporate image mental manifestations, repute.
Changes in gross revenues, trade name consciousness what proportion know about your trade name, purchase purpose, perceptual experience of the trade name or company, callback non a worth while step. What proportion of public seen the advert remembers it, but does non intend they will purchase the merchandise, repetition purchases.
The Shannon-weaver theoretical account
The elaboration-likelihood theoretical account:
Cognitive processing non the message leads to attitude alteration.
A. The cardinal path. Recipient finds message interesting, of import or personally relevant. Thus examines message carefully and evaluates strength/rationality of the statements. If reactions are favourable, persuasion occurs.
B. The periphe
ral path. Recipient finds message uninteresting or uninvolving. No motive to treat the message carefully. Here the receiver responds to secondary cues, e.g. attractive theoretical accounts, beautiful background scenery, beginning credibleness, position symbols, etc. No critical analysis but attitude alteration can still happen.
Therefore, if the statements in favour of the trade name are non really strong or if consumers are improbable to be involved with the merchandise, use tricky melodies, attractive theoretical accounts, etc. Use strong statements for high engagement merchandises because people are so motivated to treat the message.
Models of advertisement:
AIDA Attention ( know about ) , Interest, Desire ( what makes you want to purchase ) , Action ( you go and purchase it ) .
DAGMAR Defining Advertising Goals for Measuring Advertising Results. Move the consumer through 4 degrees of apprehension, VIZ. 1.Awareness, 2.Comprehension ( appreciate what the merchandise is and what it can make for the consumer ) , 3.Conviction ( privation to seek the trade name ) , 4.Action.
Everett Rodgers expanded this theoretical account to include 6 phases, VIZ. Create consciousness, elicit involvement, produce rating, stimulate test, make a sale, and do repetition purchases.
The St James model ( belief to attitude ) . The consumer is assumed to hold preconceived thought of the trade name. Thus Ad g should seek to change the consumer s perceptual experience of either A. What he requires from the trade name to suit in with the given, or B. What the trade name is, so as to convey perceptual experiences in line with consumer demands. Eg full-time homemaker, ought to be concerned with wellness of her kids.
Criticisms of theoretical theoretical accounts:
They assume that consumers are logical and rational, that advertisement plants linearly ( i.e. that consumer gather information, so experience emotions, so take action, etc. ) . Some people are unprompted and move from minimum consciousness to a purchase determination. Different media constrain consumers to respond in different ways ( eg print ads allow concentration, with Television ads consumers frequently absorb information in bunchs instead than step by measure ) .
The theoretical accounts assume the intent of advertisement is to make a sale. In fact other aims can be merely as of import, e.g. repute edifice.
The work of Andrew Ehrenberg.
Harmonizing to him there is no grounds that Ad g can move as a strong force in carrying people to alter their behaviour, experiencing or beliefs. Ad g is a weak force. For established bran, Ad g refreshes consciousness and jogs ( changeless remind ) the consumer towards purchase. Therefore, Ad g is a defensive activity. For new trade names, Ad g can denote the trade name and create consciousness, but can non change experiencing. Ad g works in the long term by maintaining a trade name in the consumer s head.
Lecture 9: Pricing.
1.The function and perceptual experience of monetary value.
Price the sum of money charged for a merchandise or service, or amount of the values that consumers exchange for the benefits of holding or utilizing the merchandise or service.
The purchaser the value to which the purchaser attaches to what of all time is being exchanged. Functional, Quality, Operational, Personal.
The Sellerss perspective monetary value provides the footing of retrieving costs and making net income. PROFIT = TOTAL REVENUE TOTAL COST. Sellers need to understand both the deductions of cost and to hold a cognition of the client and the external environment when measuring the impact of pricing determinations.
2.External influences on the pricing determination.
Customers and consumers. Different market sections react to different monetary value degrees. Monetary values need to be set so that costs are met at the bottom terminal and at the top terminal the market will digest the monetary value. Consumers perceptual experience of merchandises will impact pricing determinations.
Demand and Elasticity. Relates to economic theory. Important to gauge the demand for a merchandise as this relates to monetary value. Sellers can seek to act upon the form of the demand curve.
Q1 Q2 Quantity
Price snap of demand. Sellers need to hold an apprehension of the sensitiveness of demand to monetary value. This is brooding in the abruptness of the demand curve.
Price snap = % alteration in measure demanded / % alteration in monetary value
Channelss of distribution. Within a distribution concatenation each member will hold a coveted net income border.
Rivals. Pricing determinations are made with a competitory context. Monopoly/oligopoly/Monopolistic competition/perfect competition.
Legal and Regulatory. EU, Monopolies and Mergers Commission ( MMC ) .
1.Internal influences on pricing determinations.
Organizational aims. Linked to corporate scheme. Based on fulfilling client demands and the aspirations of organisation. As markets evolve organisational aims change. Can be short term / long term.
Marketing aims. Focused on specific mark markets and the place desired of them. Important to incorporate the selling mix and non merely monetary value. Need to see profile of merchandises, merchandise life rhythms.
Costss. Price is related to what the client is prepared to pay. Cost represents the costs associating to the development, industry and selling of the merchandise.
2.Setting monetary values.
– Pricing aims organisational gross revenues and selling.
– Pricing policies and schemes New merchandise, merchandise mix, monetary value alterations.
– Puting the monetary value scope cost based, demand based competition based.
– Pricing tactics and accommodations price reductions.
– Fiscal marks relate to net incomes or hard currency flow to run the twenty-four hours to twenty-four hours concern and financess for reinvestment in R & A ; D
– Net income in footings of Return on Investment ( ROI ) .
Gross saless and Marketing Aims.
– Gross saless Targets relates to a desired market portion, place in the market.
– Volume gross revenues marks related to market portion aims, but has a more operational focal point e.g. batch and units of production.
– Keeping the position quo
Pricing POLICIES & A ; STRATEGIES used as usher for pricing determinations and supply a model for such determinations.
– New merchandise pricing schemes need to make up one’s mind if to come in the market at low monetary value ( Penetration ) or high monetary value ( Planing )
– Penetration Pricing purpose to acquire a big market portion in the shortest possible clip. Price below bing rivals.
– Monetary value Planing monetary values are set high. Try to pull least monetary value sensitive market sections.
– Merchandise mix pricing schemes differentiations need to be made within the scope.
MANAGING PRICE CHANGES monetary values seldom inactive. Competitive force per unit areas force alterations. Initiating monetary value cuts hazardous as demand to see how much excess volume demand to be sold to do up for the lost border ( net income ) . Normally a short term tactic.
Considered when there is: & # 8211 ; Excess production capacity, & # 8211 ; Market laterality
Reacting to rivals monetary value cuts: disregarding the lessening, underselling, debaring the cut.
Initiating monetary value additions dependent on response of clients and rivals. Cost force per unit areas Controling demand.
Reacting to rival additions Matching rival move Maintain monetary value levels/differentiate the merchandise.
Puting the monetary value scope.
Cost volume monetary value relationship. Definitions of costs:
Fixed costs the cost which do non change with end product e.g wages rent. Variable costs vary harmonizing to measure produced e.g. natural stuffs. Fringy costs the alteration that occurs to number cost if one unit is added to entire production to boot the fringy gross is excess income derived from selling one excess unit. Entire cost the sum costs incurred by the organisation.
Cost based pricing Focuss on clients and their reactivity to different monetary value degrees.
– Psychological pricing: prestigiousness pricing, uneven even pricing.
– Pricing Lining a figure of merchandises are sold at specific monetary value points.
– Package pricing a figure of merchandises are sold as individual bundle e.g. computing machines and package
– Promotional pricing used to excite a market or perceptual experiences of value in the short term.
Demand based pricing.
Time specific mark-downs e.g. End of season gross revenues. Price distinction different monetary values for different sections e.g. Airline travel.
Competition based pricing where merchandise monetary values are determined by mention to the monetary values of competitory merchandises
– Structure of the market i.e. the greater the figure of rivals the closer the market comes to hone competition. Price scene is slightly dictated by the market.
– Perceived value in the market the more differentiated from rivals the more autonomy the organisations has in its pricing. Related to how consumer perceive the value of alone benefits.
Pricing tactics & A ; accommodation monetary values can change to reflect client demands Pricing tactics and Adjustments are the measure used to get at concluding monetary value. Price construction give guidelines to gross revenues reps in negociating monetary values.
Particular accommodations price reductions decreases from the normal list monetary value. Trade price reductions, Quality price reductions, Seasonal price reductions, Cash price reductions.
Lecture 10: Selling information systems.
Good information is a facilitator of successful selling and so, seen in this light selling direction becomes foremost and foremost an information processing activity.
To implement the selling construct, sellers need information about the features, demands and wants of their mark market.
Information is required to place selling jobs and chances. Market research and the direction of a systematic information system increases the profitableness of successful selling.
Marketing info systems.
Why manage information? Organizations are frequently faced with: information impregnation or information famishment.
It needs to be structured and organized. A selling info system ( MKIS, MIS ) is the model by which info is gathered on a regular basis from both inside and outside the organisation, and is designed to circulate a uninterrupted flow of information to selling directors to help in their determination devising procedure. It is a subsystem of the organisations direction information system.
Market info system- consist of 4 subsets.
1.Internal records ( informations aggregation ) gross revenues orders, histories collectible, historical client informations.
2.Marketing intelligence system ( informations aggregation ) . Information gathered on the market topographic point by directors on a twenty-four hours to twenty-four hours footing normally relevant to the developments in the selling environment. Trade Journals, Government statistics, Newspapers. Professional organic structures e.g. Kniting federation, Off the nog informations e.g. AGB ace panels.
3.Marketing determination support system ( Analytical ) . Statistical determination support system of analysing selling informations utilizing statistical processs and mathematical theoretical accounts.
4.Marketign research system. The systematic design, aggregation, analysis and coverage and happening relevant to a specific selling state of affairs. Ad hoc term used for marketing research split between primary and secondary research.
Marketing research informations.
What is Marketing Research? Marketing Research aid in bring forthing info which will help the seller in their determination devising. It consist of the systematic design, aggregation and coverage of informations relevant to specific state of affairss confronting the company selling conducted on a particular project footing.
What is market research? Is the systematic survey of consumers attitudes, perceptual experiences, penchants, motives and purchasing activities.
Internal versus bureau research.
In-House versus outside bureau research. Make or purchase determination costs, research expertness, product/service cognition, objectiveness, particular equipment and confidentiality.
Marketing research informations.
There are 2 beginnings of marketing research informations: primary informations ( aggregation of new informations ) , secondary informations ( information which has been antecedently collected ) .
Main beginnings of secondary informations ( desk research ) .
1.Internal beginnings informations generated for the organisation itself eg saleforce studies, accounting records, client ailments records.
2.Data generated from outside the organisation.
– published directories, newspapers, published research studies
– Types of published informations available to the seller include:
– Business proctors
– Census of the population
– Family outgo study
– Economic tendencies
– Monthly Digest of statistics and Annual Abstract of Statisticss
– Commercial libraries e.g. chamber of commercialism
– Trade associations
– Mugwump research studies MINTEL published by Market intelligence, Keynote studies
– Trade directories the Times 1,000, Who owns whom ( UK ) published yearly by Dunn and Bradstreet
– Extel cards provides inside informations of company fiscal consequences, president s statement.
– DataStream computerized informations base of company fiscal consequences available on line.
Postal research ( quantitative ) .
– Questionnaires Postal, telephone, personal.
– Panel research a group of respondents who have agreed to supply information over a period of clip. E.g. retail audits, consumer panels.
– Omnibus studies organized by several clients by a research bureau.
Personal interviews ( qualitative ) & # 8211 ; Depth interviews and group treatments
Experimental research ( qualitative )
Sing and listening to state of affairss in purchasing behaviour
1.Experiomentation e.g. Field experimentation is besides known as trial selling, or research lab experimentation where shopping environment is simulated.
Marketing info systems.
Factors which have facilitated the growing in info systems.
– Developments in computing machine engineering informations storage
– Growth in informations Bankss and informations warehousing include info on buying wonts, client features ( trueness cards )
What can marketing info Tell you?
Market and gross revenues research screen: designation of market tendencies, obtain info about rivals, designation of market features, sections, the appraisal of size of new markets, info on possible clients and gross revenues prediction.
Marketing Communicationss: effectivity of communicating ( publicizing research ) , media choice, transcript testing and gross revenues district packaging.
Product research: bring forthing new merchandise thoughts, merchandise construct testing, merchandise testing, trial selling of merchandises and probe packaging.
Pricing the relationship between product/service price-demand.
Distribution warehouse location, retail mercantile establishment location.
Cite this Marketing Research Paper Lecture 1 Introduction Essay
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