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Marketing

Has Evolved
Through
Service
dominant
Customer Cocreation
Marketing
used by:

Marketing
Process
Sustainable
Marketing
Triple Bottom
Line
7 Ps of
Marketing
Marketing Mix
Marketing
Environment
Environmenta
l Analysis
Internal
Micro
Macro
Pure
Competition
Monopolistic
Competition
Oligopoly
Monopoly
Monopsony
Total Budget
competition
Generic
competition
Product
competition
Brand
Competition

the activity, set of institutions, and processes for creating,


communicating, delivering and exchanging offerings that have
value for customers, clients, partners and society at large
Trade, Production, Sales, Market, Societal Market
Intangible elements that provide value beyond the cost
Working with customers to create value
Small Businesses
Businesses selling goods / services
Profit and NPOs
Public, private organisations incl. Govt
Understand, create, communicate, deliver
Combining Economic and ecological elements in business
practices
Environmental. Social, Economic
Product, Price, Place, Promotion, People, Process, Physical
evidence
Product, Brand, Demand, Good, Service, Price, Willingness to pay
All of the internal and external forces that affect a marketers
ability to create, communicate, deliver and exchange offerings of
value.
A process that involves breaking the marketing environment into
smaller parts to understand it better
The Marketing Environment
Organisation, people, processes
The Industry, Customers, competitors, partners
Political, technological, economic, legal, sociocultural,
environmental (PESTL)
All equal. Etc. break, undifferentiated products, no market
power
A few competitors that offer similar products etc. petrol,
striving to differentiate from each other
Small competitors offer similar but differentiated products, etc
Cars, Phones
One Supplier, etc Australia Post, City Rail
Only one buyer
Limited resources and must exercise opportunity cost
Etc. Generic brands to exercise alternatives
Products differentiated through the product itself in features,
benefits
Loyalty, well known

Situational
Analysis
Marketing
Planning
Situational
Analysis
SWOT
Market
Research
Research

Factors
considered

Market
Research Brief

Also include

Types of
research

Data Types

SWOT, identifying factors which will be used in development of


marketing strategy
SWOT/ Situational analysis + organisational objectives ->
Marketing Planning
Company, Market, Environmental, competitor
Strength, Weakness (Internal) Opportunities, Threat (External)
Segmentation, Sales performance, product, distribution,
promotion, pricing, attitudes and behaviours
Defining the research problem
Designing the research methodology
Collecting data
Analysis data and drawing conclusions
Presenting the results and making recommendations
Relevance
Timing
Availability of resources
Need for new information
Cost-benefit analysis
Executive summary:
Introduction
Background
Problem definition
Time and budget
Reporting Schedule
Appendices
Exploratory research - broad
Descriptive Research Precise
Casual research testing whether the variable affects the
outcome
Hypothesis a tentative explanation that can be tested
Primary: Collected for the current research project
Secondary data: Other dater sourced outside the current
market research problem

Consumer Behaviour
Definition
The analysis of the behaviour of individuals and households
who buy goods and services for personal consumption
Situational
Physical
Social
Time
Motivational
Mood
Group
Cultural:
Culture
Subcultural
Social Class

Individual

Situational
Influences

Cultural Factors
Culture

Power distance
Uncertainty
avoidance
Individualism
Masculinity
Long-term
orientation
Cultural
Influences

Class
influences

Social Factors:

Social:
Reference groups
Family
Roles and Status
Personal:
Demographics
Age
Occupation
Lifestyle
Personality and self-concept
Psychological
Motivation
Perception
Beliefs and attitudes
Learning
Physical location
Social interaction
Time available
Purchase motivation
Consumer mood
Influences on behaviours that operate at the level of the whole
society, or of major groups within society
The beliefs, values and rituals by which a society defines itself
Culture includes tangibly e.g. Clothing and intangibility e.g.
laws and customs
Degree of acceptance inequality within a culture
Extent to which people feel threatened by uncertainty and seek
to reduce it
Extent to which people focus on their own goals over those of
the group
Extent to which assertiveness and status are valued over
solidarity and life quality
Pragmatic, long term orientation is valued over a short termfocus
Subculture: A group of individuals who share common
attitudes values and behaviours that distinguish them from the
broarder culture in which they are immersed.
Multiculturalism: The existence of diverse cultures within a
society
Social Class: A group comprising individuals of similar rank
within the social hierarchy
An individuals social class is defined by values and lifestyle i.e.
income, occupation and education.
Social factors: influences on an individual
Reference Group: Any group and individual looks for
guidance
Membership groups: Groups to which the individual belongs
Aspirational reference groups: Groups that an individual

Opinion Leader

Family

Family life
cycle

wishes to join
Dissociative reference groups: Groups an individual does
not wish to be associated or disconnected from.
A reference group member who provides advice about a
specific interest to the group
Family life cycle: A series of stages through which a family
pass
Family decision making roles: Whom has responsibility for
making decisions for the family
Pester Power: Children who pester their parents purchasing
power
Stag
e
1

Example

Description

Young Singles

Young Married

Parenthood

Single
person living
alone
Married, No
kids
Married, Kids

PostParenthood
Dissolution

Social
influences
Individual
Influences
Personal
Characteristics
Demographic
factors
Lifestyle
Personality
Psychological
characteristics
Maslow
Hierarchy of
Needs

Perception

Married

Marketing
Consequences
Cars, Furniture,
entertainment
Home furniture,
whitegoods
Detergents, food,
medical
Luxury, investment

Single
Health, security,
Spouse
finance
Roles: Parents, child, neighbour, employee, friend etc.
Status: Role, age, technical competence, popularity.
Personal and psychological factors that influence consumer
behaviour
Demographic, lifestyle and personality factors that influence
consumer behaviour
Characteristics i.e. population, age, education and income.
How and individual spends their time and interacts with others
The set of characteristics and behavioural tendencies that
characterise and individual.
Internal factors, independent of situational and social
circumstances, that shapes thinking, aspirations, expectations
and behaviour.
Rank
Title
Description
5
Self-actualisation
Creative art, service
4
Esteem
Respect from peers
3
Love or belonging
Intimacy
2
Safety
Housing, money
1
Physiological
Hunger Thirst
The process that filters, organises and attributes meaning to
external stimuli.

Beliefs

Attitudes
Behavioural
learning theory
Cognitive
learning theory
Consumer
Decision
Making

Habitual
decision
marking
Limited
decision
marking
Extended
decision
making
Impulse buying
Need / want
recognition
Information
search
Evaluation of
options
Purchase
Post purchase
evaluation
Cognitive
dissonance

Selective exposure
Selective attention
Selective distortion
Selective retention
Descriptive or evaluative thoughts that an individual holds
regarding their knowledge of a person, idea or product. Beliefs
may be based on objective knowledge, opinions or faith.
An individuals relatively stable and consistent thoughts,
feelings and behaviours towards an object or idea.
Stresses the role of experience and repetition of behaviour/
Learning that takes place through rational problem solving
Ran
k
1

Title

Description

Need / Want
recognition
Information search

Consumer is aware of
unsatisfied need
2
Seek information from all
sources
3
Evaluation of options
Develop criteria, rank
alternatives
4
Purchase
Choose product or brand,
decide on purchase
5
Post-purchase
Continuation to evaluate
evaluation
product, deal with buyers
remorse, asses attitude
towards product.
Low engagement purchasing decisions, small, routine low risk

Limited engagement purchasing decisions, infrequently bought,


familiar product
High-engagement purchasing decisions involving high-price,
high-risk and/or infrequent, unfamiliar products
Low involvement or planning
When a buyer becomes aware of a discrepancy between a
desired state and the actual state.
The buyer searches for information about how to solve the
problem
A successful information search will usually yield a range of
alternative solutions for consideration
The brand and product are chosen
The buyer continues to evaluate their purchase decision
Occurs when a purchaser has second throughs or doubts about
the wisdom of a purchase they have made.

Business Buying Behaviour


Business
markets

Reseller
markets
Producer
markets

Government
markets
Institutional
markets
High value
purchases
High volume
purchases
Price
competition
and
negotiation
Number of
buyers and
sellers
Formal
assessment of
purchase
alternatives
Ongoing
relationships
Demand
characteristics
Derived
demand
Demand
Fluctuations
Join Demand

Individuals or organisations that purchase products for resale,


use in the production of other products, or for use in their daily
business operations.
Business markets comprise of four major categories:
Reseller markets
Producer markets
Government markets
Institutional markets
Intermediaries that buy products in order to sell or lease them
to another party for profit. E.g. Wholesalers, industrial
distributors and retailers
Business organisations and professional who purchase products
for use in the production of other products or in their daily
business operations. E.g. Primary industries, secondary
industries and retailers
Governments that buy and self-products to provide services for
their citizens. E.g. Federal, state and Local
Non-for-profit organisations. E.g. Charities, Religious
institutions, clubs
Business purchasing decisions frequently involve very large
sums of money for high value / volume purchases
Common in the reseller market
In the business market, price competition is intense, as price is
open to negotiation based on purchase volumes.

Far few buyers and sellers in the business markets than in the
consumer market.
Business customers demand extensive information. Businesses
use this, along with price, distribution and promotional factors,
to compare the relative strengths and weaknesses of
alternatives
Close, ongoing relationships provide a degree of certainty to
both parties.
Businesses tend not to adjust their consumption in relation to
price changes; they pass the cost on to their customers or look
for substitute products.
Demand in business markets that is due to demand in
consumer markets.
Business customers make purchase decisions infrequently and
based on expectations of long-run demand, resulting in
demand that fluctuates more son than in consumer markets.
Interdependent demand for products that are used together in
the production of another product

Pricing and
demand

Inelastic demand is relatively independent of price, a common


characteristic of demand within industries in the business
market
Straight rebuy
The low engagement purchase of the same products as
previously purchased from established vendors under
established terms.
Modified rebuy The purchase of a product that is similar, but not identical to
one previously purchased after evaluating a small range of
alternatives.
Purchasing
Negotiation of price, supply agreements, and volumes
Decisions
Description technical specifications
Inspection when description and specification are not
enough
Sampling a sample may be inspected or analysed for quality
Buying centre
Groups and structures within an organisation that make
business buying decisions.
Various roles include:
Initiators: recognise a need to purchase
Users: evaluate product performance
Influencers: Technical experts
Deciders: Authorise final purchases
Buyers: Ultimately make the purchase
Gatekeepers: Control relevant information
Business buying decision-making process
Problem/need
Initiator becomes aware of a problem or unsatisfied need
recognition
External party creates a new problem or need
Information
Seek information about the problem and possible solutions
search and
Develop a product specification to describe the features
specification
required of the solution
development
Evaluation of
Identify potential vendors and invite proposals
options
Analyse and evaluate each characteristic of the prosed
solution
Analyse and evaluate each potential vendor
Purchase
Choose one or more suppliers based on the evaluation of
solutions and the vendors
Decide to purchase or not
Purchase
Post-purchase
Evaluate product
evaluation
Evaluate supplier
Assess attitude towards product brand and seller in relation
to future purchases.
Markets: Segmentation, Targeting and Positioning.
The Market
Characteristic
s

A group of consumers with heterogeneous needs and wants


Buyers have common wants needs and demands
Buyers have unique wants, needs and demands

Market
segments
Target
Marketing

The market contains subgroups


Subgroups within the total market that are relatively similar in
regards to certain characteristics
An approach to marketing based on identifying, understanding
and developing and offering for those segments of the total
market that the organisations can best serve.

Target
Marketing

Mass
Marketing
One-to-one
marketing
Differentiated
targeting
strategy
Product
specialisation
Market
specialisation
Productmarket
specialisation

Producing large volumes at low cost per unit due to economies


of scale making it possible to sell at a low price and capture very
large markets ensuring high levels of profitability.
Providing a unique, customer offering to meet individual
customer needs.
A marketing approach that involves developing a different
marketing mix for each target market segment.
Marketing efforts are concentrated on offering a single product
range to a number of market segments
Marketing efforts are focused on meeting a wide range of needs
within a particular market segment
Marketing efforts are concentrated on offering a single product
to a single market segment

Target
Marketin
g

Segmenting
consumer
markets

Geographic
Segmentation
Geodemographic
segmentation
Psychographic
Segmentation

The variables for segmenting consumer markets fall into four


broad categories:
Demographic
Geographic
Psychographic
Behavioural
Market segmentation based on variables related to geography.
Combines demographic variables and geographic variables to
profile very small areas, i.e. Suburbs
Market segmentation based on the psychographic variables of
lifestyle, motives and personality attributes

Roy
Morgan
Values
Segmen
ts

Behavioural
segmentation
Business
market
segmentation
Effective
segmentation
criteria

Market
segment
profiling

Market
targeting

Market segmentation based on actual purchase and/or


consumption behaviours.
Business markets are often characterised by a small number of
buyers who might display a very close relationship with the
seller. Customised or One-to-one marketing is a good
approach to use
Effective segmentation involves ensuring:
measurability abstract variables can be difficult
to measure
accessibility through distribution and
communication channels
substantiality the segment must be of sufficient
size to allow profitability
Practicability segments are only of use if they
can be identified and serviced.
Market segment profile
Often based on significant market research.
Describes the typical potential customer in the
segment and how the variables differ from other
segments.
The selection of target markets resulting from an evaluation of
identified market segments

Market
targetin
g

Market
potential
Sales revenue
Market Share
Company
sales
potential
Potential

Market
Positioning
Company
positioning
Brand
Positioning
Positioni
ng steps

The total sales of a product category that all organisations in an


industry are expected to sell in a specified period of time,
assuming a specific level of marketing activity.
Total volume of sales multiplied by the average selling price.
The proportion of the total market held by the organisation
An estimate of the maximum sales revenue and market share
that an organisation can expect to achieve for a specific product
is influenced by the market potential, the level of marketing
activity in the industry and the effectiveness of an organisations
promotional spending
The way in which target market segments perceive an
organisations offering in relation to competing offerings
A positioning strategy designed to create a single market
perception of the entire organisation in relation to competitors
A positioning strategy designed to create a market perception of
a particular brand, usually based on product attributes

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