uvic com 250

Write your text here!Products and Services: 70% of the economy is services-based (90% of jobs) Characteristics of services: Intangibility (cant be seen or tested before bought), Variability (quality depends on who provides them), Inseparability (cannot be separated from provider), Perishability (cannot be stored) Two-sided platform: Occurs when two user groups interact through an intermediary or platform to the benefit of both parties, Advantages: inventory is owned by external sellers, service is provided by external sellers, service is cost reduced, service process is largely simplified, Challenges to grow: get pricing right, keep service standard high, one winner takes all competition (dominant), acquired by a larger competitor, Alternatives: pricing (low margin), service (insurance to supplier), competition (always seek for local partnership), acquisition (IPO to raise capital), Takeaway: Liquidity is key (transparent information to facilitate comparing and deciding) (tooling and environment to support buyers and sellers in finding the best matches) Product: anything that can be offered to a market for attention, use, acquisition that will satisfy a want or need (includes tangible objects, services, events, persons, places, organizations, ideas) .. made up of: core value (benefits offered, value created) +actual product (features, attributes, brand name, quality) +augmented product (warranty, installation, delivery, credit .. deliver value but not the reason people buy the brand) Product classification convenience: consumer product that buy frequently with minimum comparison and buying effort, shopping: less frequently purchased that shoppers compare carefully on quality, price, style (major appliance, tv, furniture, clothing), Specialty: unique characteristics willing to make special purchase efforts (rolex, fine crystal), unsought: does not normally think of buying & doesnt know about (life insurance, donation) Product mix: the mix of all product lines, brands, and items offered by a company) described by:  width (range or product lines and brands ie detergents, toothpaste), length: # of brands within a line (Tide, Cascade) , depth: # of items within a brand (sizes, flavors), consistency (fits of the lines, synergy) Product Strategy: undifferentiated marketing, differentiated (segmented marketing), Micromarketing individual marketing), Concentrated (niche) marketing, 7 P’s for service marketing: product, price, place (distribution), promotion (communication), people, process, physical environment) Services: intangible activities, benefits, or satisfaction that does not result in the ownership of anything
Product decisions: Product concept (core, actual, augmented)/ Product strategy (approach, product line, product mix)/ Service strategy (4 characteristics, 7Ps)/ Branding strategy (brand choice, name selection)
Marketing Planning Process: SWOT Segmentation: Dividing a market into distinct groups with distinct needs that might require separate marketing strategies or mixes (buyers within a segment are similar, buyers between segments are different), Targeting: choosing a single segment or multiple based on analysis, Positioning: Arranging for a offering to occupy a clear, distinctive, place relative to compelling products in the minds of target customers (creating perception in the consumers mind), Developing marketing mix Major segmentation variables: Geographic (country, region, population size, city, neighbourhood), Demographic (age, sex, income, education, religion, family size), Psychographic: personality type, lifestyle, attitudes, social class), Behavioural: loyalty status, benefits sought, usage rate, occasions, user status, readiness stage, attitude towards product), Marketers use psychographic and behavioural variables to segment market but use geographic and demographics to describe each segment ie who, when, where, why. Effective segments must be measurable (quantifiable), substantial (large enough, future potential), accessible (reachable), differentiable (are they different enough to be a separate segment), actionable (does this company actually have the resources) Targeting Strategies: concentrated (one or more product offers to one segment), undifferentiated (the same product offered to different segments), differentiated (multiple segments with multiple product offers)
Key takeaway: marketers have finite resources so they must make decisions aboout how and where to focus their efforts, once segments are identified marketers determine which segments to focus on to support corporate strategy and growth
Positioning: how a product offering uniquely creates value better than its competitors in the minds of targeted customers (combination of segmentation and differentiation)Involves: Scope aka product market identification (what products for what customers via what technologies), Differentiation product differentiation (features, performance, style & design) services differentiation (delivery, installation, repair) image differentiation (symbols, atmospheres, events) personal differentiation (hiring, training better people than competitors) function, benefit differences valued by target customers, Identifying competitive advantage (how can you defend this positioning? resources, competencies, entry barriers), Positioning map (key attributes or characteristics that support positioning) Positioning statement: TO (target segment and need) OUR BRAND is A CONCEPT that POINT OF DIFFERENCE
Marketing is: managing profitable customer relationships, creating value for customers and building strong relationships to capture value from customers in return, discovering and satisfying needs Goals: attracting new customers, keeping and growing current customer base The marketing process: 1. Identify customer needs (how do customers choose among market offerings?)( customers form expectations about the value & satisfaction that various market offerings will deliver and buy accordingly)(understand the marketplaces and customers needs and wants) -> 2. identify/select target markets (decide whom to serve by market segmentation, serve only who you can serve well and profitably)(decide how it will serve targeted customers ie differentiation and position itself in the marketplace)(communicate value, value proposition: benefits promised, differentiates brand)  -> 3. develop a marketing mix (construct an integrated marketing program that delivers superiour value) -> 4. customer relationship management (build profitable relationships and create customer delight, customer satisfaction)-> 5. evaluation and control (cap
Production concept – consumers will favour products that are available and highly affordable, organization should focus on improving production and distribution efficiency (can lead to marketing myopia ie lose sight on satisfying customers needs and building relationships) Product concept – Consumers will favour products that offer the most quality, performance, and features therefore organization should focus on continual product improvements (can lead to marketing myopia, to exterminate mice maybe you dont need a mousetrap but instead a chemical spray or extermination service, will not sell unless convenient distribution channel and convinces buyers its a superior product)  Selling concept – consumers will not buy enough of the firms products unless the firm undertakes a large scale selling and promotion effort (unsought goods, focuses on sales transactions rather than long term relationships)
(inside out perspective ie starts with factory, focuses on existing products, heavy selling and promotion) Marketing concept – achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do (customer focus and value are the path to sales and profit, sense and respond philosophy (outside in perspective, well defined market, focuses on customer needs, integrates all marketing activities) Social marketing concept – Companies marketing decisions should consider consumers wants, companies requirements, consumers long run interests, and societies long run interests (calls for sustainable marketing, recognize societal needs not just company needs ie shared value, not concerned with short run economic gains, values driven, triangle with society ie human welfare, company ie profits, consumers ie want satisfaction) Changing marketing landscape: Digital and social media marketing, Mobile marketing (apps), Changing economic environment, growth of not for profit marketing, rapid globalization, sustainable marketing