Marketing and comunications
What is the key succes factor to sastify customer need
To find the customers unmet needs.
Note that it is not always they know what there unmet needs are
Satisfying the customer need creates oppertunities to do what?
- Increase current market share
- Enter a market
Mayby the are missing a existing prudct in an other market
- Create and dominate a market
Tell the customer what they want
what are the diffent types of customer need?
-Physical
--Food
--Sleep
--Housing
-social - Group affiliation (grupptillhörighet)
-physiological - The individual and self fulfilment.
How do we idenify the customers needs?
- Market research like Surveys, interviews , docus groups or observations
- The use of business intelegance.
What are the five questions for identifying the customer
-Who buys? (who is importtant)
-What are their chosie criteria
-When do they buy?
-How do they buy?
-Where do they buy?
Who buys? Who are the five relevant people?
-Initiator - Begins by considering to solve a problem
-Influencer - Persuader
-Decider - Power and/or financial authority
-Buyer - Effectuates the purchase
-User - Conumsing / using the product
How do they buy?
1. Need recognition
2. Search for informtion
3. evaluation of alternativies
4. purhase decition
5. Post purchase evaluation
What are the choise criteria?
Technical, economical, personal and social.
-Technical criteria
Reliability
Durability
Performance
style
Comfort
Taste
-Economic criteria
Price
Value for money
Running cost
Life cycle cost
-Personal criteria
Self image
Risk reductions
Emotions
Ethics
-Social criteria
Status
Social belongings
Convention (konvent)
Fashion
When do they buy?
extended search
Is often when you buy something for the first time and do some research. You look at all the alternatives for buying.
Usual problem solving
means that you have bought the item before and limits your search to 2-3 places. This meaning you don't have to scan the entire market
habitual problem solving
You don't do any research you just buy it in the same place as always.
What are the influences affecting behaviour ?
-Information processing
-motivation
-Beliefs and attitudes
-personality
- economical circumstances
-Lifestyle
-Age
-Social influences
What are the diffrent markets within B2B marjketing
Producer market
You sell something that the customer uses in their manufacturing as machines to production. you don't need to focus on the end customer but rather the customer itself.
Reseller Market
You sell something that the customer then resells. This means that you need to consider the end customers needs in regards to for example, size, form, brand etc. But you also need to consider your customers' needs, they might need a cooler from you in order to sell it.
Government markets
More rules and regulations that you need to follow when selling weapons for example. You often need to reach some criteria to even be able to sell.
Often bought in bigger volumes
Institutional markets
When selling to schools and hospitals and so on there are often processes and rules you need to keep an eye on.
Decribe the B2B market
Few actors ( suppliers and customers) usually leads to long term relationships and strong networks
Each market is unique - Detailed understanding more important
Complexity of buying is often high. Buying decisions are made primarily on economic and technical areas. (environmental is being more common to)
E-commerce is common. Value-added networks and virtual marketplaces are beneficial (including higher reachability, lower procurement costs, better connectivity to suppliers and buyers.)
Risks and uncertainty affects the buying decisions
Often very specific requirements apply.
Derived demands (härledda krav)
Prices are negotiated
What are the decition making process in B2B
1. Recognition of a problem
2. Determination of specification and wuality of needed item
3. Search for qualification of potetial sources
4. acquisition and analysis of proposals
5. Evaluattion of proposals and selection of supplier(s)
6. selection of an order routine
7.performance feedback and evaluation
*Compared to B2C this is more formal and more steps.
B2B choise criteria
Quality
Price and life cycle costs
Continuity of supply
Perceived risks ( functional and psychological)
Office politics
Personal likes / dislikes
What do you need to identify whithin sales in B2B, and why do you do this
Who has authority
Who can influence others
Who has knowledge
Who is the actual decision maker
Who is who (who does what)
To make sure you put the right effort to the right people
What are the stages in Market research
1. Research planning
initial contact - research brief - reserach proposal
2. explotarory research
prior to real research
to avoid deficiencies
3. The research (qulitative and/or quantitaive)
Qualitative being group discusions, foucs groups, consultion with experts and observation
quantitative being surveys like perosnal interviews IRl or F2F and nonpersonal like mails and digital surveys
4. Data analysis
5. Report writing and presenatation
Ethical issues in marketing research
Intrusion in provacy (GDPR)
Misuse of findings (looking to confirm)
Selling and calling it research
What are the factors in an macro analysis
Political, economical, social and cultral, techonogical, legal, enviromental
What includes in political factors (PESTLE)
Government policy
Political stability (or lack of)
For an example you don't want to make big purchases before an uncertain election
Corruption
foreign trade policy
Tax policy
Labour law* (arbetsrätt)
Environmental law*
*kan även hamna under legal
What includes in economical factors (PESTLE)
Determinants of a certain economy’s performance
-Economic growth
-exchange rates
--Om svenska kronan är låg gör det att de kommer in mer turister och färre går ut. De påverkar även export och import.
-Inflation
-disposable income of consumer (köpkraft)
-Unemployment rates
What includes in socal and demografic factors? (PESTLE)
demographic characteristics, norms, customs and values of the population within which the organisation operates
-Population growth rates
-Age distribution
-Income distribution
-Carrier attitudes
-Health consciousness
-Lifestyle attitudes ( values / priorities )
-Cultural barriers
What includes in technological factors? (PESTLE)
innovationer inom teknologi som kan påverka operationer inom industrin och marknaden
-Technology incentives
-level of innovation
-automation
-research and development activity (R&D)
-technological change
-amount of tach awareness
What includes in legan factors? (PESTLE)
Impacts what you can do in a market, partly overlaps with political factors
-Diskrimination laws
-Antitrust laws
-Employment laws
-Consumer protection laws
-Copyright and patent laws
-Health and safety laws
What includes in enviromental factors (PESTLE)
Includes economical and environmental aspects
-Weather
-Climate / Climate change
-Pollution
-Recycling standards
-Attitudes towards green products
-Pressure from NGO´s ( non-governmental organisations) som green peace etc
What four parts are inlcluded in a microenvriomental analysis?
Customer analysis - To understand current and prospective customer behaviour
Market analysis - To understand market size, growth rates and trends
Competitor analysis - To evaluate and learn to understand competitor´s strengths, weaknesses and reaction patterns
Industry analysis - to evaluate and learn to understand the “rules” and structure of the industry where you are active
What is included in a market analysis? (MICROANALYS)
Size
-Amount of customers and how often the buy
-Current → potential
Market growth
profit potential - se industry analysis
cost structure in the industry
- What does the distribution of cost look like for the main cost drivers
- Cost structure affects what strategi you can have regarding to your competitors
Distribution structure - “from mine to the customer”
Trends and development
-Do we see trends and change in how customers and competition acts
Critical success factor
-Can you identify a trend in how competitions act and what works for them? Can we use that somehow?
What are the five questions in a competitor analysis (MICRO)
Who are our competitors
What are their strengths and weaknesses
What are their strategic objectives and thrust
What are their strategies
What are their response patterns
What do we mean when we say, Who are our competitors (COMPETITPR ANLYSIS)
-Productform
Are there similar product on the market
-Product substitutes
Are there product woth just a diffrent design and technical sulution
-genreic competitors
customer problem solved in a diffrent way
-Potential entrants
What do we mean by, what ar their strenghts and weaknesses (COMPETITPR ANLYSIS)
1. Identify the key succes factors within the industry, both funtional (finansial strength) and genereic (innovativeness)
2. Rate the competitors (and yourself) on the factors
3. Consider implications for competetive stratergies
What are the diffrent response patterns that the competitors can have (COMPETITOR ANALYSIS)
Retaliatory
responds aggressively to competitive challenges
Slow reactions due to complacency (självgodhet?)
Hemmed-in
Difficulties to respond due to strategies, laws etc.
Selectively
Aggressivitet i vissa områden (till exempel pris) men inte i andra (till exempel innovation)
Unpredictabilities
No particular patterns
What are the five in Porters five forces
Threat of New Entrants
Key Factors: Economies of scale, cost advantages, brand identity, access to distribution channels, switching costs, and government regulations.
Context: If it is easy for new companies to enter the market, competition may increase, and profits for existing companies may decrease.
Bargaining Power of Suppliers
Key Factors: Supplier concentration, number of buyers, switching costs, availability of substitute inputs, threat of forward integration.
Context: If suppliers have strong bargaining power, they can drive up the prices of inputs, which reduces the profit margins of companies.
Bargaining Power of Buyers
Key Factors: Buyer concentration, number of suppliers, switching costs, availability of substitute products, threat of backward integration.
Context: Powerful customers can demand lower prices or higher quality, which can pressure companies’ profitability.
Threat of Substitute Products
Key Factors: Functional similarity, price/performance ratio, product identity.
Context: If there are substitute products that offer the same benefit at a lower price, companies risk losing customers.
Competitive Rivalry within the Industry
Key Factors: Number of competitors, industry growth, asset intensity, product differentiation, entry barriers.
Context: The more competitors and the tougher the rivalry, the harder it is for companies to maintain market share and profitability.
what are the 6 categories in a Company analysis
Operating reslut
Strategic issues analysis
Core competences
Marketing mix effectiveness
Marketing structure
Marketing system
what are the diffrent strategic thrusts?
Market penetration / expansion - When you try to increase the market share, using existing products on existing markets
Market development - When you introduce existing products in new/related markets. Could for example be going in to a new country
Product development - When you try to introduce new/related products on existing markets
Diversification / enter new markets - You try to sell new products on new markets. Not as common since it requires a lot of resources.
What are the diffrent competitive startegies
Diffrentiation
cost leadership
differentastion focus
cost focus
sources of competitive advantage
Superiour skills and superiour resources
skills =“We can perform functions more effective than other companies"
resources = distribution infrastructure, R&D spendings, scale and typ of facilities, brand equity, knowledge
How do we locate superour skills and reources
In porters value chain we divide in two types of activities, Primary activities and support activities
What are doffrent ways to sustain a differental advantage
The key to achieve a long-term advantage is to focus on areas that competition finds impossible or very difficult to copy.
Patents
Brand personality
Close relationships
High service levels
Innovative products
High entry barriers
strong and distinctive internal processes
scale
Name the five competitive behaviors (5C)
Conflict - Aggressive competition to drive competitors out of the market
Competition - Perform better than competition
Co-existence - Unawareness / separation in market segments / Acknowledge territories
Cooperation - Alliances
Collusive - Agreements to inhibit competition
What are the five requriements for effective segmentation?
1. Distinct (homegenus direction but significant diffrance)
2. sustainability (large or profitable segments)
3. measurablility (size, purchasing power, profit)
4. Accessibility (The segments can be reached and served)
5. Actionability ( offereds can be designed for the segment)
What are the three difrent areas that you can do a segmentation in?
Behavioural ( how they act)
Phsygografic (lifestyl, personality)
Profile ( geografic, demografic)
The five steps in Targeting
1. Decide which segment(s) to serve
-Company characteristics
-Strategic consideration
2.Extend the understanding for the potential target segments
3.Evaluate how a design of marketing strategy for each segment could be performed
4.Match segments and the company's capabilities
5.Adjust
What defines a segments attractiveness?
Market factors
-Size
-Growth
-Profitability
-Barriers to entry etc
Competitive factors
-Nature of competition
-Degree of rivalry in the market and different segments
-Barriers to entry etc
Political social and environmental factors
Capabilities to serve the market / segment
What are the diffrent TARGET marketing stratergies
Undifferentiated marketing - One offer to serve everyone
Differentiated marketing - different offer for different segments
Customised marketing - Different offers for different customers
What are the keys to a succesfull positioning (4C)
Clarity - positioning idea must be clear in terms of target markets and differential advantage
Consistency - stay consistent in messages to the market
Credibility - The differential advantage choice must be credible in the minds of the targeted customer
Competitiveness - The differential advantage should have a competitive edge, Provide something sought for, but not yet delivered
Why are strong brands important?
De skapar fördelar'
Company value
Barriers to competition
Higher profit
base for brand expansion
-----If you have a strong brand in one market you can use that in another market. Apple starting with self-driving cars is an example.
Quality certification
Trust
What are the different Product stratergies
Low cost - high revenue ( COWS)
Drar in pengar till företaget
Low cost - low revenue ( dogs)
Divest these since the revenue has dropped
High cost - high revenue ( stars)
Groth fase so we want to keep these
High cost - low revenue ( questionmarks)
Often new products so you dont know yet
What are the diffrent product stratergies for growth
-Market penetration
We sell existing products in a market we are already in
For store this is selling more books to the students
-Product development
You sell a new product in the same market
Store starting to sell used books or E-books
- Market development
We sell our product in a new market
If store starts selling chalmers branded book in china
-Diversification
Developing new product to new markets
Most risk but sometimes most rewards
What are the four characteristics of a service?
Intagibility
Inseperability
Variability
Perishability
What is intagibility? (SERVICE)
Pure services cannot be touched, seen or tasted before they are bought.
They are hard to evaluate
Expressed indierectly
solution could be phsyical evidance
Inseparability
Simultaneous production and consumption
Importance of the service provider
Selection, training and rewarding of people are fundamentally important
Accessible / limited resource
Performed for multiple consumers simultaneously
Variability
Execution is dependent on The person who performs the service, the mood of both the supplier and consumer, as well as the location / situation.
For this Quality control is important, you need to Follow standardised behaviour and educate your people (norms, key aspects of the service) But you also need to Evaluate the system.
But to get the best result it is also important to use reliable equipment to support the service like vending machines and ATMs.
What is perishability?
Can not be stored witch makes it difficult to match supply and demand
What are the four reasons to bad experianced service
Misconception - dont know what they need
Inadequate resources - Dont have they resources needed for there needs
Inadequate delivery - Poor/inconsitant delivery (often related to personel)
exagerated promises -promise more than we deliver
How can we manage service productivity
To fin the balance productivity and quality we can use Technology like ATM (reduced wait) or barcode scanning
Or we could make the customers involved in the process and make customers scan them slef in affairs and resturants
What is the pyramiid of service making
emplyess-customer-company-technology
The company is the one promising something to the customer. It is then the employees that are the ones expected to deliver what is promised. But for them to be able to do so they need the right education as well as the required resources from the company.
In all this you can look at technology as the middleman.
What are the 7 P´s mention in service marketing mix
Product – Brand name, quality of physical product, and add-on services
Promotion – Tangible cues, testimonials, reference selling, word of mouth, communicate with own staff, don’t exaggerate
Price – Indicator of perceived quality, used to control demand, price sensitivity is a key segmentation variable
Place – More direct contact with customers than for goods, especially via the Internet. Location is important.
People – Customer-first attitude. Reduce nuisance.
Process – External: Transparency regarding how interactions will be performed. Internal: Easy-to-follow to-do-lists to secure service quality
Physical evidence – Tangible evidence to select (ambience, design, layout), and to remember (towels, chocolate, memorabilia)
What is the price-triangle
The image represents a triangular relationship between three key elements: Customers, Company, and Competitors, all centred around "Products + Prices."
Customers reflect needs and willingness to pay.
Competitors offer products and prices that compete with the company.
Company provides offerings and incurs costs in creating products.
What are the diffrent rabate stratergies
Bundling
Volume rebate
Loyalty rebate
What are diffrent pricing methods
Cost oriented (B2B) (fullcost -allcost) (minimum price)
Competitor oriented (based on competition)
Market oriented (based on customers)
What are the diffrent stratergies for product launch
Rapid skimming (high price, lot of marketing)
New product aimed at those wanting to be first (short window)
slow skimming (high price, slow marketing )
The same as rapid but we dont have as much money
Rapid penetration (low price, lot of marketing)
Trying to get market shares, more customers insted of segment, focus on the price
slow penetration (low price, slow marketing )
same but cheaper
What are the function of a channel intermediarie
An actor between the producer and customer
Wholesalers (grossist)
retailer
funktioner:
-intermediaire (medlar) Between customer and producer
Could be that the producer has a need to sell in big volumes but the end customer only wants in single pieces. A store in between satisfies booths needs
-improve efficiency
-improve accessibility
-Providing specialist services
What are the diffrance between Push or pull systemns (channel intermedieries)
Pull - work with the “consumers” demand
We put our focus in marketing to the end customer, so that they drag out the product through the chain that starts with us, that way increasing sales. (ads)
Push - work with the distributors wish to sell
We make the retailers want to sell more.
sales competitions
Help with inventories and (advertisement) material
What are the factors influencing channel selection
Market factors (Buyer behaviour ,Geographical )
Producer factors (Resources )
Product factors (Large / small )
Competitive factors (Lock-in / preferred suppliers)
What are the diffrent kind of intensity in a channel
Intensive
Products that need to be available at the right time. If you have an intensive channel it could be smart to have multiple suppliers so you aint dependent on one.
Selective
Example deeper knowledge about the products. Status.
If they have more to choose from we need to understand how they choose, so we can make them choose us
Exclusive
Example small market. High status.
What are the diffrents kind of channel integration
Conventional - we compete for best place in the store
Franchising ICA having their own products in their store
Vertical integration - we own all the way to the customer
What are the direct marketing communication techniques
Direct mail
Email marketing
direct resonse advertising (online - BUY THIS)
dierect selling (knock on doors)
Coupons
telemarketing (call the customer)
What are the diffrent kinds of growth strategies
Advertising (reklam)
PR - Public Relation ( Placera sin vara där den syns)
Sales promotion (rea ut till lägre priser)
Direct marketing (kontakta folk)
Personal selling
exhibitions (utställningar)
Digital promitions
Socila media promotion
What are the key caracteristics of an effective markeitng mix
The marketing mix matches customer needs
Creates a competitive advantage
Should be well blended
Should match corporate resources
Answers should display an understanding of each of these four criteria (students do not have to explicitly mention these characteristics, but show understanding of them).
Answers are awarded with 0-2 p per characteristic.
pros and cons with advertising
awareness building
repetition is effective för brand positioning ( via Tv eller internet)
Impersonal, lacks flexibility, and questions can not be answered
Limited effects close to the sal
Pros and cons with PR
Cheaper than advertisement
Trustworthy
The company has to put a lot of work effort - cant pay for the space
Strengthens the brand
pros and cons with sponsorships
Often high credibility and no cost
Cant control (if real PR) -If an sponsored athlete does something wrong it will be connected with the brand.
Increasing on the internet
Sites fo reevaluating products
Blog / influencers
Discussion groups etc
can help association with favourable characteristics
Pros and cons with sales promotion
Incentives provide a quick boost to sales
Effect may be short term
Excessive use may damage brand image
advantages with digital marketing
Cost effective
Targeted and personalised
Interactive
Personal
Time-flexible
Immediately available
Immediate and measurable
Gateway to other channels
How can you effect demand in a service
Differental pricing
stimulating offpeak- with new products and special events.
Additional services
Reservation system (by standing in que the consumer know when the will be served)
What are the difrent ways of effecting supply in services
Use part-time staff
Multi Skilling ( being able to help were is needed)
Particular routines
Participation of consumers
Shared resources
Primary activities (identyfing surerior sklls and resouces)
Inbound Logistics: Efficient handling of materials and inventory can highlight superior logistical skills.
Operations: Advanced manufacturing processes or innovative workflows can be a key area of strength.
Outbound Logistics: Superior distribution networks and speed to market can indicate logistical excellence.
Marketing and Sales: Effective marketing campaigns and strong customer relationships reflect superior sales skills.
Service: Exceptional customer service and post-sales support can be a source of competitive advantage.
Support activities
Firm Infrastructure: Strong management, financial controls, and effective organizational structures.
Human Resource Management: The ability to attract, develop, and retain talented employees indicates superior HR capabilities.
Technology Development: Investment in cutting-edge technology and innovation.
Procurement: Ability to source high-quality inputs at competitive prices.
In a market oriented price method the price is based on what
Marketing strategy – New prods, in line with positioning. Old prods, in line with strategy
• Customer value – Trade off Analysis / Experimentation / Econ Value to the Customer
• Price-quality relationships – Relation ship between price and quality
• Product line pricing – Price in line with other products in the company’s prod line
• Negotiating margins
• Political factors – In line with public interest
• Costs
• Effects on supply-chain – Profits in all parts of a chain
• Competition – Many levels of competition
• Explicability – Can the price setting be explained
Types of marketing research
Ad-hoc research (one time studies)
custom design studies - Design from specific situation
omnibus studies - Part of larger studie
Continuous research
Customer panels - diaries, online focus groups
Retail audits - Store sales data via barcode scanning
Online/TV viewership panels - Viewer stats / behaviour
marketing databases - Loyalty cards / club membership
Sampling methods
Single random sampling
Everyone has equal chance of getting selected
Stratified random sampling
Population divided in groups, then singe random sampling
Quota sampling
For large populations, sample based on qantas / distribution of people in the population
survey methods
Personal interviews
Face to face - high response rate, high cost, bias
Telephone - Fairly high response rate, and cost, harder to probe (undersöka)
Video interviews - Between F-2-F and phone
Non-personal surveys
Traditional mails
Digital survey
Faster - easier - cheaper - Better or not?
How do I do the market analysis?
- Search for, and gather, information from reliable sources
- Try to determine which factors that have the strongest impact on your industry (not
specifically your company)
- Evaluate probabilities and severities for the risks and opportunities identified
- Include the time span in which the risks and opportunities may occur (short-term,
medium-term, long-term)
Why do we do a segmenting
input in developing a market stratergy
Idetify target markets
possible to tailor market offer
Highlights how to different offerings between segments