Notesale: Turn your study into money

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Tuesday, 2 June 2015

MARKETING REVISION:
Topic one: Histories of Marketing
Plato —> societies have evolved to satisfy human needs
individuals have different skills leading to efficiency driven specialisation —> separation
of producers and consumers
Market = a field of exchange!
justification of profit = risk taken in ownership//manufacture//distribution of goods reward
market —> forces of supply and demand operate here
A free market = market based purely on supply and demand with little government
control
Homo economicus- utilitarian exchange: exchange based on utilitarian and functional
benefits
symbolic exchange —> mutual transfer of ‘intangible benefits’
HOMO MARKETUS —> Marketing man = sometimes rational, sometimes irrational //
motivated by both tangible and intangible rewards // incomplete information but uses
best guess // often settles for sub optimum gains // completes exchanges subject to
individual and social constraints //
Marketing as an academic discipline —> emerged as a branch of descriptive micro
economics at turn of 20th century
THE DESCRIPTIVE SCHOOLS OF MARKETING
1-Commodity school: focus is WHAT IS BEING SOLD
2-Institutional school: focus is TYPE OF ORGANISATIONS INVOLVED
3-Functional school: focus is on THE ACTIVITIES INVOLVED e
...

this means sellers must shift their focus from simple landing sales to ensuring buyer
satisfaction after purchase
“Selling by itself is no longer enough”
“People buy expectations, not things”
Effectively managing relationships:
1- awareness —> understand both problem and opportunity areas
2- assessment —> where does company stand in terms of what is necessary to get the
desired results?
3- accountability —> collect regular reporting on individual and group relationships
4- actions —> making decisions and actions that will positively effect target audiences
2- Early and modern schools of marketing thought:
marketing as an academic discipline emerged as a branch of applied economics
marketing functions school —> what is the work of marketing?
Clark 1922: Marketing =
1-exchange (buying and selling)
2-physical distribution (storage and transportation)
3-facilitating functions (financing and risk strategy)

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Tuesday, 2 June 2015
commodity school of marketing —> focus on characteristics of what is being sold
(goods/service) and how different classes of good are marketed
institutional school —> focus on those who do the work of marketing what institutes are
involved?
inter regional trade school —> where does the marketing take place?
the modern marketing schools of thought —> focus on how should organisations market
their products and services?
marketing systems school = addressees questions of marketing for example why does it
exist and who is engaging in marketing activity
consumer behavior school = self explanatory
macromarketing school —> the big picture and how marketing influences society
exchange school focus on what is being exchanged and who is involved
marketing history school —> when were theories and concepts introduced and
developed?
3- Marketing success through the differentiation of anything - Levitt
product = a combination of tangible and intangible!!
product = a promise based on the firms reputation
The expected product = 1//2//3// delivery
1- delivery and getting it to the buyer
2- terms = price guarantees and processing of payment
3- support efforts = advice and support coming with the product
4- new ideas = suggestions for more efficient and cost reducing ways
exceed expectations through augmenting products, providing the extras that the
customers hadn't thought they would desire
“the way a company manages its marketing may be the most powerful form of
differentiation”
4- O Malley and Patterson: Vanishing Point
4 P’s of marketing concept!

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Tuesday, 2 June 2015

Topic 2: The market offering
substance key issues:
quality//design//packaging?
product line length:
-line stretching = adding products that are at lower/higher price than existing products
-line filling = adding more products with the same price
ANSOFFS MATRIX IMPORTANT THEORY
Existing market + existing product = MARKET PENETRATION
Existing market + new product = PRODUCT DEVELOPMENT
New market + existing product = MARKET DEVELOPMENT
New market + new product = DIVERSIFICATION
Product life cycle=
introduction // growth // maturity // decline
Service —> high contact or low contact?
service operations —> where inputs are processed and created
service delivery —> where final assembly of service elements takes place
service marketing —> includes service delivery as above and all other contact between
firm and consumer
Demand and capacity! excess demand vs excess capacity —> maximum capacity and
optimum capacity
balancing efficiency —> quality and satisfaction?
5 dimensions of service quality:
1-reliability
2-assurance
3-tangibles
4-empathy
5-responsiveness
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Tuesday, 2 June 2015
Adjust capacity to match demand!
Marketing channels = sets of interdependent organisations involved ion process of
making product/service available for consumption
wholesaling —> merchant wholesalers//manufacturers an retailers branches and offices
brokers —> bring buyers and sellers together and assist in negotiation
retailing —> includes all the activities involved in selling products and services to final
consumer
a brand = name/sign/symbol/design or combination of them aimed at identifying a good
or service to a seller and differentiating them from competitors
brand —> a promise! expectations from customers that must be met
brand equity = the positive differential effect that knowing the brand name has on a
customer
transactional marketing = focus on winning customer
relationship marketing = focus on keeping customer
expected product =
what —> technical attributes + how —> functional attributes
Topic 2: Market offering and the competitive environment
Toaster example —> DUALIT normal toaster costs around £20 but DUALIT toasters
start at £100 and go up to £200 —> hand built and limited edition despite the high
demand keeping the exclusivity
Lynx —> encourages brand loyalty by playing on advertising that targets the male
fantasy —> the LYNX effect
Cadburys’ —> the color purple and association with Royalty —> uses the color purple
consistently to ensure customer can immediately identify Cadburys they have even
trademarked the specific shade of purple
MARS —> brand extension of chocolate —> icrecream
Heinz —> strong overall brand and image and heritage, focus on good honest high
quality produce, with over complicating words - Heinz Tomato soup, Heinz Ketchup
Service —> Disneys innovation of FAST PASS where you pay more so you don't have
tot queue, a good example of matching supply and demand
Topic 2:
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Tuesday, 2 June 2015
product classification —> durable//non durable//service products
user based classifications:
convenience goods —> routine response buying situation
shopping goods —> risk/adventure for consumers
speciality goods —> high risk/expensive/infrequently purchased
unsought goods —> emergency flat tire
Brand name should be: distinctive// supportive// acceptable// available//
Service: categories of service mix =
-pure tangible good (just comes on its own) e
...
g babysitting
incorporate self service technologies SST’s —> consumers value convenience in
services
The 3 stage model of service consumption:
1-pre purchase stage
2-service encounter stage —> high/low contact?
3- post encounter stage —> meeting/exceeding expectations
Service concept: core product + supplementary services + delivery processes
Branding strategies for services:
—> branded house = a company such as Virgin Group which applies its brand name to
multiple offerings
—> sub brands = master brand is the primary frame of reference but also exists a
distinctive part of the name such as Singapore airlines —> Singapore airlines raffles
class
brand —> differentiates a product! purpose = identification and also helps in handling
and tracing

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Tuesday, 2 June 2015
commodities have become highly differentiated as strong brands have emerged:
e
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skimming vs
...
g £5 per litre for first 100, £3 per litre for next 500 litres
third degree discrimination: charging different prices for the same product in different
segment e
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tendering —> b2b pricing —> offers made by suppliers that concern price and terms and
conditions of supply
price discrimination = charging different prices for various units of a single product
first degree - selling each product separately at different prices e
...
g first
100 litres is £3/L but the next 300 are £2/L
third degree = charging different prices for same products in different segments of
market e
...
They committed to change to being more sustainable! however, an explosion
due to inadequate pipe maintenance lead to the deaths of 15 people,
and then again in 2010 a drilling platform exploded producing the largest oil spill in
history—> was their “commitment to sustainability” just a publicity stunt? certainly
appears to be
...
1-2
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1 Consumers as drivers of CSR:
ethical consumerism —> consumers care about issues of CSR and this will be reflected
in their purchase decisions
key drivers of CSR consumers//employees//investors
pressure group organised consumer boycotts may occur
gap between ideas/intentions and actions —> additionally data collected about ethical
purchases is subject to social desirability bias
Innocent drinks a good example of conscious capitalism —> market leader of smoothie
market in UK and acts ethically!
Topic 6: 2
...
3 —> Top Managers as drivers for CSR
manager as a moral agent?
formal programs such as business adopting CSR initiative may be ineffective if
employees feel it is simply window dressing —> however if they see top management
truly behaving in this way they may believe and adopt this behaviour
Topic 6: 2
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an individual may be said to be socialise
when he/she has learned to think and feel according to societies expectations
consumer socialisation —> the process by which young people acquire the
skills/knowledge/attitude relevant to their functionality in the market place
Consumer socialisation stages: 1 - 2 - 3
1: perceptual stage: 3-7 years old —> simple understanding, egocentric perspectives
(from their own perspective)
2: analytical stage: 7-11 years old —> look at functional features, dual perspective
(own + others), expanded repertoire of analysis strategies
3: reflective stage: 11-16 years old —> analyses relevant features, fully developed
perspective, is more aware of social aspects of being a consumer and how it influences
their identity e
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—> indirect influence learn by watching and imitating parent
primary socialisation —> begins at birth —> interaction with parents and family, when
the beginning of an identity starts to form
secondary socialisation —> influence that takes place outside childs initial influences on
socialisation

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re-socialisation: when an individual has to relearn a specific behaviour pattern
Advertising standards authority —> regulates UK adverts, and OFCOM ensures adverts
comply to set standards
acculturation: adaptation to consume the cultural environment in one country by persons
of another country
Process of acculturation: movement//translation//adaptation//
1- movement: physically, from one location to the next
2- translation: attempts to master set of rules for operating in the new environment, for
example language, culture and currency
3- adaptation: learning the new consumption patterns and properly sticking to them
marketers: key cultural agents who influenced immigrant consumer acculturation by
stimulating cultural contact
Topic 7: Consumer behaviour
marketing —> creates an artificial need?
green marketing? social marketing?
consumers use products to help define their identities!

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Tuesday, 2 June 2015

Topic 8: Marketing and Organisations
B2B marketing = management process for facilitation of exchange between producer
and their organisational customers
Types of B2B customers users —> buy for their own use
original equipment manufacturer —> incorporate their purchases into their own product
RE SELLERS —> self explanatory
Derived demand = B2B purchases derived from some sort of consumer demand
modified rebuy:
Hill + Hillier 1977: model of organisation buying behaviour
1-precipitation - realisation of need to purchase
2- product specification - determine exactly what is needed from desired product
3- supplier selection - who meets criteria best?
4- commitment = commit to order
Topic 8: marketing and organisations:
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Tuesday, 2 June 2015
B2B marketing —> management process responsible for the facilitation of exchange
between producers // their organisational customers
A b2b product is also called an offering/solution
a b2b customer is only concerned with how an effective an offering is as a solution to its
problems
straight rebuy//modified rebuy//new task
3 steps in marketing:
-segmenting: who —> divide market into smaller groups of buyers with distinct needs
-targeting: evaluate each segments attractiveness and decide which is best to target
-positioning —> why us + how us = how the customer views the business and product
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issue of parasitic copying from own brands

Topic 10: Marketing Communications
1- O donohoe uses and gratifications
Main point —> mass media is a resource which audiences use to satisfy various needs
it is an active and goal directed audience!
First approach to uses and gratifications theory of marketing was outlined by Katz
Katz: assumptions of a uses and gratifications approach:
1-audience is active and goal directed
2-the action of linking gratification and media choice is done by an audience member
3-media competes with other sources of need satisfaction
4-examples of gratifications sought from media include:
diversion//entertainment//information
some have noted escapism as another common motivation of mass media consumption
May: we consume advertising for at least 7 different types of satisfaction:
1-product info

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2-entertainment
3-implied warranty
4-value addition
5-post purchase reassurance
6-vicarious experience
7-involvement
Competition: 1—> firstly it is stimulated by providing people with alternatives, and 2—> it
tells people about the alternatives
self affirmation? reinforcement of attitudes and values? ego enhancement? aspirations
and role models?
Topic 10: marketing communications:
defined = a management process through which an organisation engages with its
various audiences
marketing communications: DRIP = differentiate//reinforce//inform//persuade
awareness is essential! build brand associations and cultivate brand values
tools of marketing communication = advertising, sales promotion, personal selling, public
relations and publicity, direct and interactive marketing, events and experiences
characteristics for chosing correct communication tool:
costs/communication/credibility/control
traditional media = broadcast and print
alternative media = digital media
fundamental decisions: identify target audience —> select most relevant segments and
deliver message as precisely as possible, reduce wasted coverage
identify target markets! demographics/lifestyle? segmentation!
objectives —> what is the communication supposed to achieve?
budgeting?????
implementing decisions: mixing elements = decide how to allocate resources amongst
the various marketing communication tools!
creating messages:

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-message strategy —> what to say?
-message source —> who should say it?
-creative strategy —> how to say it?
program evaluation: measure results against established objectives —> brand
awareness// message comprehension// attitude towards the brand // purchase intentions
—> from this = measure results, provide feedback, take corrective action
marketing communications should be: aimed at target market/clearly positioned/created
for specific objective achievement/done with budget constraint
integrated media communication —> unified and coordinated effort to promote brand
concept through the use of MULTIPLE COMMUNICATION TOOLS
key IMC features:
-begins with consumer —> reduce dependence on mass media!
-reach target audience in most effective + efficient way possible
-speak with a single voice CONSISTENCY! positioning
-build long term relationship and encourage brand loyalty! build brand equity
-ultimate objective = move people to action and encourage repeat purchasing
brand equity —> brand loyalty! attitudes = learned, relatively enduring, and influence
behaviour
attitude components:
1- cognitive component (learning) —> level of knowledge and the beliefs held by
individuals
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AFFECTIVE changing should be used when attitude to brand is either negative or
neutral
uses messages that are unusual in style, music, strong visual cues, celebrities =
emotional and hedonic approach
key tools for affective changing = PRODUCT PLACEMENT AND TV/PRINT ADS USING
CELEBRITY ENDORSEMENTS
Changing attitudes = conative = when people are comfortable with a current brand, they
will be reluctant to change! therefore attitude change should be based on provoking
behaviour
provoking behaviour may include: try//test//trial//visit
key tools for conative = direct marketing // sales promotion // personal selling
crafting persuasive messages!
message = rational vs emotional?
rational —> comparative information based advertising
emotional —> feeling based appeals, normally using fear//humor//sex
comparative advertising: often compared to main competitors, attempt to gain superiority
—> normally used by brands with small market share
sex appeals:
-initial attention lure
-to elicit positive reaction, sexual content must be appropriately relevant to subject
matter
-too much focus on sex appeal may interfere with processing of message arguments
-ethics? may be demeaning to individuals!
humor appeals: attracts attention, stimulates interest, fosters a good mood
-less effort required for feeling based (such as humor) advert processing! however
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word of mouth? social media?

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Topic 11: Market Research
used to identify and define marketing opportunities
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com etc
Topic 14: Relationships in a retailing context
The marketing channel: external, contactual organisation that management operates to
achieve its distribution objectives
reducing transactions via intermediaries: retail example =
breaking bulk = channel members purchase large quantities from manufacturers and sell
smaller quantities to many different customers
creating assortments = channel members provide a variety of products on one location
channel management = set of participant organisations involved in transfer of ownership
as products move from producer —> business user/consumer
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line stretching = adding products at higher or lower price than existing line
line filling = adding more items within the present price range
retail marketing: retailing involves transactions in which buyers intends to consume
product for personal use
strategic issues:
location —> competition//customer target market//transport//internal
staff//rental//ownership
product assortment? own label branding//customer service
retail position —> seeking choice of target market so aiming at premium vs cheap?
niche vs mass market?
store image + price = psychology + differential advantage? reputation vs price? store
layout? price
atmospherics = appeals to consumers emotions such as:
external —> architectural design + window display
internal —> fixtures + fittings, store lighting
Topic 14: relationships in a retail context
strategic brand management: providing a long term identity and offering to customers
that is understood on all levels! to do this:
1-ensure identification and association with brand is correct (positioning)
2-firmly establish brand meaning in mind of customer (strategically linking tangible and
intangible brand associations)
3-elicit proper customer responses
4- convert brand repsonse to create intense active loyalty relationship
brand identities —> may be affected my other brand associations! be careful who you
associate with

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