Marketing

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)

Culture embraces analog patterns of thought/feeling/action --> cultural pattern of behavior span fundamental values and norms, important knowledge and typical patterns of action.

Values influence consumer behavior.

Subculture compromises common values/norms etc. e.g. Yuppi, DINKs

Social Stratum: position of a person within society regarding status and prestige

Is a person or a group of people that influence the behavior of a person noticeably

Classification of reference groups:

-Membership (yes/no) are not but maybe would like to or member but do not want to

-Primary and secondary groups (friends/neighbors)

-Formal and informal membership (colleagues/family)

Time and Place factors: play a role in the purchase/consumption of a product

General factors: Physical/social surroundings, time-related features, kind of task, previous situation

Market oriented factors: Consumption situation, buying situation, communication situation

Impact on marketing: Design of the shop, retail marketing, marketing communication

Sustainability = The interplay of People, Planet and Profit --> solutions for socio-ecological problems accompanying the products, and thereby generate additional customer value (Key question of sustainability marketing!)

Not solely emphasise benefits of consumption but balance this benefit with concern for the collective social and environmental costs.

Gap between environmental awareness and behavior.

Reasons: Opportunism and Self-interest

Solution: Use incentives and strategies to increase sustainable consumption --> Either have strategy which stimulates sustainable consumption or punishes oppertunistic consumption. Incentives are used with cost or use methods

Focuses on the selection of markets and general consideration regarding the kind of market related activities. Subordinated are basic corporate policy principles (goals and philosophy), agreements concerning general princples and corporate goals e.g. profitability, growth and sales, financial, social and power goals

Multidimensional approach with 4 dimensions - customer function, technologies, customer segments and levels of production-distribution

Are product-market-combinations, units within a company for which separate strategies need to be developed --> specific strategy, customer group and indentified competitors belong to this areas

Selection of a industry/market according to attractiveness of them --> Formulation of a strategy, considering competitor's strategies --> Acquisition of the necessary resources, either internal or external acquisition

Identify internal resources and competences --> Select markets in which the assets can be used the most effective -->Optimal use of the resources (Commercialize either as end product, core product or asset)

Resources are in/tangible entities of a firm which enable effective production and market offering that has value for a market segment --> from this resources can a competitive advantage for some firms develop thorugh which it gains a market position of superior financial performance.

To have a competitive advantage, Resources have to be: heterogenous, not completely mobile, value generating, scarce, not completely imitable, not substitutable, in/tangible.

Assumptions of RA Theory: Heterogeneous and dynamic demand, imperfect and not free information of the customer, not sole motivation to maximize the own benefit, goal is superior financial results and not profit max., incomplete and costly information base the of companies, competition is directed towards development of imbalance and conntains innovation

Corporate capabilities/resources that correlate with market-related chances need to be transformed into competitive advantages from the customer perspective.

Representation of all corporate areas in a 2-dimensional matrix: Market Chances and Corporate Positioning (compared to competitors)

Resulting in Question Mark (weak position, big chances), Rising Stars (big chances and strong position), Cash Cow (strong position but small chances) and Poor Dog (weak position and small chances)

Goal setting where the company wants to position its product of its portfolio --> Position increasing, exiting market or changing market situation --> is like a overview

In which business fields should efforts be made or reduced, which business fields should be relinquished and which should be newly developed

Win the customer! Characteristics: Needs; hunger mentality, segmentation, tear down barriers. O&L: e.g. internal competition

Winning non-Users or your competitors' customers

-Non-user: Product has to be different, might be a substitute to a existing need solver

-Competitiors' customer: Being better, replace the competitor --> is quite expensive as the needs of the customer have to be exactly known

Can be done through several measures: expand sales force, new distribution channel, internationalization, franchising etc.

Care for the Customer! Characteristics: Customers; farmer mentality, customer penetration/retention, relation-ship management. O&L: e.g. qualitiative product goals

Retention: Recover customer, avoid migration of existing customer, create continuous repurchase e.g. subscription or benefits

Penetration: increase repurchases, up-selling (more expensive model), create and increase subsequent purchases, create and increase cross-selling (bundeling)

Approaches: Customer recovery programm (reminder if nothing bought for a long time), complaint management, customer satisfaction management (what does the customer think about the product), clubs and bonus programs, and proprietary system (lock-in effect)

Leave for new Shores! Characterisitcs: Ideas; out of the box thinking, resource orientation. O&L: e.g. innovation culture

Matrix with axis "novelty for company" and "novelty for market" --> how new is it for the company and how new is it for the market (e.g. has this product been offered to this specific market like Axe for women) --> it is also possible to strive for to segments e.g. penetrate the market for an exisitng product whole also pursuing a breakthrough innovation (differentiation)

When should the company enter the market, every step bears its risks and chances e.g. innovators have a high risk for failling in brining the product to the market but if they succeed it will bring a big payoff. On the other hand, early majority has less risk for a failing market but will be behind the innovators due to experience curve

Optimize your solution! Characteristics: Output; optimization, economies of scale, standardization. O&L: e.g. efficency goals

Preservation of existing product potential.

Expansion of existing product potential.

Measurements: Modification, Revitalization, Variation, Bundling, Multiplication

Interaction between Market potential and the own competencies (resources)

Through the Core Task Profile evolves the potential competitive advantage for a company. 

It is possible to strive for several segments of the profile, nevertheless it is always a question of resources and market potential which of this strategies should be pursued.

Superior Performance Modesl E.g.

Type customer relationship only pursue customer acquistion and retention, work through economoies of scope, diverse and broad range of products: key challenge is individual undersanding of the customer and control of the customer access, uses direct distribution. Coop, Dell, Amazon

Product leadership company does exactly the same only with products, look out for first-mover advantages, economies of scale and global perspective, indirect distribution. P&G, Nike, CocaCola

Focus integration has an eye on all four segments, focus on limited but attractive market segments, strive for price premiums for innovative products by means of customer knowledge and intensive customer care, selective distribution with strong direct lead channel. Nespresso, Strabucks