Marketing

The sum of the values that consumers exchange for the benefit of having and consuming / using an offering

• Reference Prices
• Price-Quality Inferences
• Price Images
• Price Endings

• Internal:

o   Marketing strategy and goals

o   Marketing mix

o   Cost structure

o   Organizational structure

• External:

o   Market

o   Competition

o   Demand for offerings

o   Other economic factors

• Long-term Perspective ( = Absorption Costing)

è Includes both variable and fixed Costs

• Short-term Perspective ( = Direct Costing)

è Includes only variable Costs

è Fixed Costs / (Selling Price – Variable Costs) (Gleichsetzen:  Kosten = Erlöse )

è Also known as the learning curve: Decline in the average cost with accumulated production experience

The Target Price is based on customer perception of the value of an offering – the value and the price then drive decisions about product quality and design. This Method requires information about the customers’ demand curve (price elasticity of demand)

Determining customer demand curves:

• Surveys
• Price Experiments
• Statistical Analysis

= Selling the same offering to different customers / market sectors at different prices. Differentiation can be personal, spatial, quantitative, temporal or performance-based.

= are the means by which firms attempt to inform, persuade and remind consumers (directly or indirectly) about the brand and the offerings they sell.

Sets of intermediaries that are usually independent organizations involved in the process of making a product or service available for use or consumption.

• Multichannel marketing occurs when a company uses two or more marketing channels to reach one or more customer segments
• Supply chain management encompasses the planning and management of all activities in buying, making, providing and distributing. It also includes coordination and collaboration with channel partners.

: Any act of performance that one party can offer another that is essentially intangible and does not result in the ownership of anything; its production may or may not be tied to a physical product.

• Duration
• Employee efforts
• Reliability
• Responsiveness
• Empathy

Impact on customer and employee behavior of a service firm’s physical surroundings or environment

Buying and using an offering means more that “becoming the owner of a tangible item”.

§  Products often go along with services

è Service-Dominant Logic

§  Events, experiences, persons, places and ideas shape the behavior of customers today

Relevant for:

• Shaping products and services
• Building strong brands
• Identifying target groups

Products include services (-> Service-dominant logic) and events, experiences, persons, places and ideas shape the behavior of customer today.

Needs are basic human requirements; they become wants when directed to objects that might satisfy the needs.

Demands are wants for products and services backed by an ability to pay.

• Consumer (Individual decision – making)
• Business (Industry decision – making)
• Non-profit (Decision – making in charities, sports clubs, etc.)

Marketplace (physical e.g. store)

Marketspace (digital e.g. Internet)

Metamarket (Cluster of complimentary products and services that are related, but spread across industries)

Metamediaries (Intermediaries that bring together collections and people)

• Recession and economic recovery; effects around the globe
• Technological developments

• “Slam-on-the-break”
• “Pained but patient”
• “Comfortably well off”

“Live-for-today”

Production philosophy -> Selling philosophy -> Marketing philosophy

• Customer – centered perspective
• The goal is to be more effective than competitors

.) Goal (increasing customer value)

.) Means (the use of marketing mix instruments)

.) Method (the support of decisions via market research findings)

1. Segment the market, choose he most attractive segments, and develop a strong position
2. Map customer needs, perceptions, preferences and behavior
3. Know the competitors, theirs strengths and weaknesses
4. Build strong partnerships with stakeholders and reward them
5. Develop systems for choosing good opportunities
6. Implement a marketing planning system that leads to plans
7. Exercise control over its product and service elements
8. Build strong brands
9. Encourage leadership and build team spirit among employees
10. Constantly introduce innovations that secure a competitive advantage in the market

• Planning: Establishing goals and selecting a plan of action to achieve the goals
• Organizing: Establishing an organization’s structure and culture
• Leading: Energizing, directing and persuading others and creating a vision
• Controlling: Comparing actual performance to predetermined standards (goals)

• Put the customer first
• Shape the customer value proposition
• Sense and respond to the market

Planning ---> Implementing ---> Controlling

1. Discovering the required value -> 2.) Developing a suitable customer offering -> 3.) Delivering the value -> 4.) Communicating the value