Marketing

Analysis and decision that relate tot the advantages of an offering from the perspective of the potential customer and to differentiate from competitors in the respective market

Signs, symbols, namet et.c as a medium to deliver a message: 

Association: with persons, cultures, stories -> is an imigae -> the benefit results in identification

Constan level of quality --> trust --> the benefit is reduced pruchasing risk

Contribution to the success of existing businesses (knowledge of the customer of the brand) + Controbution to the success of new businesses (latent brand equity) = Brand Equity

Facotrs influenceing brand equity:

• brand awareness, brand image (type, intensity, direction, amount, relevance, uniqueness of associations) --> level of awareness: 1. Exlusive awareness 2. top of mind 3. brand recall 4. aided brand recognition 5. brand is unknown

• Competence - Who am I? what benefits do we provide, special competency
• Tonality - How am I? how do I approach my customers e.g. Mini differernt than BMW
• Benefit/assoications - What do I offer? what value does the customer receive from us
• Brand Picture - How do I appear? brand appearance towards customer

Umbrella Brand Strategy: one single, dominating brand

Subbranding Strategy: Equal next to the subbrands

Endorsement Strategy: Steps back in support of the subbrands

Seperate Branding Strategy: Masterbrand is completly in the background

Organizational unti in the the enterprise with its own market task and a certain scope for stregic decision-making.

A SBF can encompass several products e.g. HiFi devices with speakers, receivers etc. but one product can also be in several SBFs e.g. coffee which is offered to different customer group through different strategies

Purpose of selling products to the end consumer --> all about the customer 

• depends on the original demand, the need of the customer
• There is a large number of potential customers
• Numerous small single purchases
• Anonymity of the market
• Little information of the consumer

Products/service which are procured by organizations to produce other goods which will then be passed to the end consumer

• Act upon own demand
• Few potential buyers
• Tight business relations
• Direct market contact
• Formalized buying decisions
• Several people involved in decision-making
• Long-term buying process

- Experience Curve

- Economies of Scale

- Product Life Cycle

- PIMS Study

• Technological Conditions - emergence or propagation of new technology can be risk and opportunity
• Political-Legal Contiditions - political changes influence the scope of business action
• Macroeconomic Conditions - influenced by macroeconomic factors
• Demographic Conditions - might diminish or create new needs

Porter's 5 Forces:

• Threat of new entrants
• Threat of substitution
• Bargaining power of buy
• Bargaining power of supplier
• Rivalry within market

• Variation: To what degree does the positioning strategy pursued so far have to be changed? e.g. Repositioning
• Style: What competitive situation should be selected? e.g. Market follower, Niche market operator etc.
• Substance: What benefit should be offered for the customer? Performance or price advantage? Either/or strategy --> more for more - same for less - less for much less etc.
• Field: What target groups should be proritised? Market segmentation e.g. demographics, geographics, economic/social status, purchase behavior, product use, personality lifestyle etc.

Economic Factors: marketing instruments, consumer policy, economic policy, consumption climate, consumer confidence

Social Factors: culture, social status, family, friends --> primary group (family, friends) secondary group (neighbors etc.) and the cultural surrounding --> what will others think of the purchase (social judgement) --> companies loose control of it because of the internet (bloggers, FB etc.)

Situational Factors: Physical/social surrounding, time-related features, kind of purchase, conditions previous to the purchase e.g. ads during the week are less effective compared to weekends --> the emotions at the purchasing moment

Consumer needs to know: product's existence, the attributes and associations, purchase knowledge, consumption and usage knowledge, persuasion knowledge and the knowledge of the organization

Three distinct memory systems;

Sensory Memory, not every information is concious to the brain

Short Term memory

Long Term memory

-Emerge through external (e.g. marketing stimuli) or internal triggers (e.g. personality characteristics)

-Set off through priviation (e.g. hunger) or emergence of new possiblities (e.g. flat screen TV)

-Is perceived if difference between desired status and actual is exceeding a certain threshold value

Concept of a favorable or unfavorable evaluation, emtional feeling, and action tendencies toward some object or idea

Used to:

Forecast Consumer Behavior: Attitude shape the consumer behavior, indicator for purchasing behavior

Define Market Segments: identify groups of consumers with similar attitudes

Revisal of Marketing Strategies: Identify attitudes as indicator for behavior

Person's perceived relevance of a product, brand, ad or purchase situation based on their inheret needs, values and interests

Attitudes reflect the kind of relationship between consumers and objects, the strength of this relationship/importance for the consumer are the core of involvement

-High Involvement: important buying decisions, higher risk --> worth the consumer's time and energies to consider product alternatives carefuly e.g. financial risk (expensive) social risk (regard to reference group) and personal good (decision can cause concern or anxiety)

-Low Involvement: not as important, only limited decision process

Demographic: Age, sex, income, occupation etc. --> Use for segmetation, identification of new markets, media planning

Personality traits: consistent behavior patterns and reactions to the environment

Lifestyle: way of living defined by living style, what seems important to them (interests) and what they think about themselfs and others (opinion)

1. Need Recognition

2. Various decision processes, information search and information processing

3. Product choice and buying intention

4. Purchasing behavior

5. Product use and new information gains

6. Termination of use / disposal

Between extensive purchasing decisions, collect a lot of infos and not regular purchase, vs. routinized decision making:

1. Involvement (high vs. low)

2. Preceived degree of product differences (large vs. small)

3. Frequency of similar decisions (seldom vs. often)

4. Time pressure within decision process (little vs. enormous)

Central is the reception and processing of information, internal (already existing product knowledge) and external (e.g. ads) information influence the pruchase decision.

Reception of information: How much is perceived? Which source is use/where is it collected? Which single elements are picked up? In which sequence are the information elements perceived?

Made with little or no cognitive activities

Dominate the extensive buying decisions numerically

Either impulse or habitualized forms of buying:

-Habitualized buying behavior: gathering of positive experiences and the adoption of behavior patters of others --> less information seeking previous to the purchase and repeated purchase of well-tried products

As long as the product is available and it keeps satisfying the needs, the customer continues to make the pruchasing decision for this product

Memory Effect: Presentation of a good reminds the cosnumer of the need for the produt -> purchase

Planned impulse: shopping with concrete purchase intention but no clear preferences

Recommendation effect: presentation of the product convinces the consumer

Search goods: The provision of performance related information is especially important e.g. new computer, standardized information which can be given to the customer

Experience goods: Performance related information substitutes need to be offered e.g. cosmetics need to be used to know whether they are good or not --> give guarantee to bring back if unsatisfied

Trust goods: Performance spanning information substitutes are integral, the repuation of the supplier e.g. for an Airline play the reputation a big role

In reality they are often mixed with each other.

Based on macroeco. limiting conditions (objective component) and situation specific perception/reaction of consumer towards it (subjective/psychological component) --> overall economy and personal financial situation at the time.

The sum of especially relevant attitudes/expectations of consumers. Influences the saving propensity (general consumption) and decision about substantive spending (real decisions)