MKC1200 Summary Maria Hidajat 29/09/2016

Week 1 General Overview of Marketing

Ch 1, 2 & 15
1. Define marketing
a. Activity, institutions & processes for creating, communicating, delivering & exchanging offerings that
have value for customers, clients, partners & society at large
b. Maximizing returns to stakeholders by developing exchanges with valued cust & create adv for them
c. 4 conditions that must exist for an exchange

i. 2< parties must participate & possess something of value

ii. Provide benefit for both parties
iii. Each must have confidence in promise of the something of value held by the other
iv. The other party must meet expectations

2. Understand strategic variables of marketing the marketing mix

a. Controlled by company to satisfy need of customers

3. Explain marketing concept & market orientation

a. Customer satisfaction is major focus of marketing concept. (to both cust & companies objectives)
b. Sales v. Market Orientation
i. Selling concept inside-out view, focus existing products & heavy selling. Sell what company makes
ii. Marketing concept outside-in view focuses on satisfying customer needs as path to profits

c. Market orientation
i. Research & respond to current & future customer needs, competitors & collaborators

ii. Implementation
1. Establish an information system to discover customers real needs
2. Use info to create satisfying new products that meet cust needs
3. Establish way to coordinate all activities true cust focus
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iii. Manage cust relationships
1. Relationship marketing long term, mutual satisfaction
2. Customer relationship management (CRM) use info abt cust for marketing strategies that
develop & sustain desirable customer relationships
3. Customer value customers subjectivity of benefit relative to cost, determine worth of product
iv. Consider cultural values that guide marketing concept implementation

4. Understand role of marketing in our society

5. Discuss current issues in marketing

a. Ethics & social responsibility
i. Ethics judgment right/wrong, moral standards of behavior expected by society
ii. Codes of conduct formalized rules & standards what company expects to employees
iii. Social responsibility economically sound, legal, ethical & socially conscious for societys welfare

b. Digital marketing
i. Internet, mobile channels etc to develop communication & exchange with customers
ii. Interactivity allowing customers to express needs & wants directly to firm marketing comm
iii. Ethical & legal issues incl privacy concerns, online fraud, intellectual property

Week 2 Marketing Environment

Ch 2
1. Explain broad concept of marketing environment
a. External forces that direct/indirectly influence a firms acquisition of inputs & creation of outputs
b. Can change rapidly global financial crisis, gov policy changes, natural disasters, terrorists
c. Can be unpredictable (cause major surprises & shocks) death of CEO etc
d. Can offer considerable opportunity investment opportunities local & overseas, new technology
e. Critical for firms survival & long-term achievement of its goals

f. How to monitor:
i. Environmental scanning collect info about forces in marketing envi through secondary resources
ii. Environmental analysis asses & intrepet info gatherned through envi scanning

g. Reponses to envi changes:

i. Passive & reactive adjust current marketing strategies to environmental changes
ii. Proactive attempt to influence forces in marketing environment (mostly preferred)
2. Discuss the elements of marketing environment
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a. Competitive
i. Indirect v. Direct
ii. Direct competitors other firms marketing similar/substitute products in same taget market
segment
1. Brand competitors, product competitors, generic competitors, total budget competitors

b. Socio-cultural
i. Influence in society & culture that change peoples attitudes, beliefs, norms, customs, lifestyle
1. Change in demographic (race, age, gender, ethnicity, education)
ii. Strongly affect how people think & consume

c. Political, Legal & Regulatory

i. Political forces influence marketing decisions
ii. Law, gov agencies & pressure groups influence & limit org & inviduals in society
1. Legislation regulates business protecting organizations & customers
2. Ethics & socially responsible actions social codes & rules of pro ethics to protect cust & envi

d. Technological
i. Affect new technologies, new product & market opportunity
ii. Most dramatic forces
iii. Tech advancement can be +/- impact to society

e. Economic
i. Buying power
1. Resources that can be traded in an exchange.
2. Disposable (net income after income taxes) v discretionary income (net income-necessities)
ii. Willingness to spend inclination to buy bc expected satisfaction
1. Influenced by ability to buy & psychological & social forces
iii. General economic conditions
1. Business cycle: prosperity, recession, depression, recovery

3. Understand global marketing environment

4. Explain importance of these elements & how they can affect marketing decisions
a. Globalization process firms operates on global basis, world as 1 market
b. Global competition foreign firms expand aggressively to new international markets. Home markets
no longer rich in opportunity

c. Major decisions:
i. Look at global marketing environment see all marketing environment
ii. Decide whether to go international not all need to globalize to survive (small businesses)
1. Companies operating in global industries no choice
2. Risk & ability to operate globally
3. Understand underlying motivations to go global
iii. Which market to enter
1. International marketing objectives aligned with orgs overall objectives
a. Volume of foreign sales, how many countries, types of countries etc
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2. High-level strategic decisions
a. Incremental/simultaneous entry? Concentrated/diversified?
iv. How to enter

v. Decide global marketing program

1. Global strategy world as single market
2. Multinational strategy world as portfolio of national opportunities
3. Glocal strategy standardize some core elements & localize others
vi. Marketing mix
1. Product & promotion

2. Price uniform/different pricing strategies? Higher/lower in home markets

3. Place whole-channel view, necessary links distributing products to final buyers
vii. Decide global marketing org
1. Export organization simply shipping out goods
2. International division 1 functions responsible for offshore activities (market, finance,
personnel, etc)
3. Global organization global marketers (plan for worldwide manufacturing facilities, marketing
policies, financial flows, logistics systems)
d. Global marketing envi needs to understand trends in global envi (market forces)

Week 3 Marketing Research & Information Systems

Ch 3
1. Define marketing research & understand importance
a. Gathering info thats NOT currently available to decision makers aid decision making
b. Customers needs & desires, marketing opportunities for particular g&s, changing attitude & purchase
patterns of customers
c. Define & specify info required
d. Expensive, time consuming, not 100% reliable doesnt guarantee success

2. Explain basic steps in conducting marketing research

a. Step 1: Determine scope for marketing research
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i. Uncover nature & boundaries related to marketing strategy/implementation (typical problems,
reasons for not meeting goals, possible market opportunities etc)
ii. Need to:
Define nature/scope of situation
Yield clear definition research need
Determine what research is to uncover
How research will be used

b. Step 2: Select the research method

i. Research design overall plan to obtain data

ii.

iii. Ensure research techniques are reliable & valid

1. Reliability condition when RS technique produce almost identical results in repeated trials
(repeatability- if results can be replicated)
2. Validity RS method measures what its supposed to measure

c. Step 3: Collect & prepare data

i.

3. Understand data collection methods for marketing research

i. Methods collecting primary data
1. Sampling procedures
a. Population all elements, units/individuals of interest to RSers for a specific study
b. Sample limited number of units chosen to represent the characteristics of the population
c. Sampling process of selecting representative units from a total population
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2. Exploratory method identify potential RS issues prior to conducting surveys

3. Survey method

a. Questionnaire construction clear, easy to understand, directly answer, maintain impartiality

& inoffensive
b. Types of questions:
i. Open ended questions what is your general opinion about shops? ____
ii. Dichotomous question have you ever purchased a coffee? Yes/No
iii. MCQ Which income group are you in? ($5-$10, $15-$25, $30-$40)

4. Observation method
a. Direct contact with subject avoided to reduce possible awareness of obs process
b. Physical conditions, subject actions & demographics are noted
c. Observations may be combined with same-subject interviews
d. Data gathered may be influenced by observer bias

b. Step 4: Analyze the data interpret data content

i. Statistical interpretation analysis of whats typical/deviates from average

c. Step 5: Transform analysis results into insights

i. Clear, objective, point out deficiencies
ii. Formal, written doc
iii. Determine level of detail & supporting data
iv. Summary/recommendations first if decision makers dont have time to study how results were
obtained
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4. Define marketing information systems (MIS) & understand its importance
a. Framework for management & structuring of data gathered regularly from sources in & out
b. Databases, marketing decision support systems (MDSS)

5. Describe different tools available to facilitate marketing information systems & research
6. Discuss ethical considerations in marketing research
a. Data collected in ethical manner while maintaining the info quality
b. Must have professional standards where research can be judged
c. Ethical & legal issues can develop as rs carried out (privacy, misuse of info)
d. Some orgs have developed codes of conduct & guidelines for ethical rs for organizations

Week 4 Consumer & Business Buying Behavior

Ch 4, 6, 15
1. Understand what constitutes consumer buyer behavior
a. Decision processes & purchasing activities of people who purchase products for personal/household
use and not for business purposes
b. Customers opinions & attitude towards products = great impact on success
c. Examine main influences on what, where, when & how cust buys to know satisfaction
d. Factors affecting buying behavior to position predict how consumers will respond to strategies
2. Explain the various stages of the consumer decision process

a. Step 1 Problem recognition

i. When buyer becomes aware of difference b/w desired state & actual condition
ii. Speed of consumer problem recognition = rapid/slow
iii. Some consumers unaware of problems/needs
iv. Use sales personnel, advertising, packaging to help trigger recognition of needs/problems
b. Step 2 Information search
i. Internal search
1. Search memories for product information
2. If cant from memory external search
ii. External search
1. Outside source
2. Focus on communication with friends/relatives
3. Can involve comparison b/w brands
c. Step 3 Evaluation of alternatives
i. Evoked set
1. Group of brands that buyer views as alternatives for possible purchases
2. Consumers assign greater value to more common brand
ii. Evaluative criteria
1. Objective & subjective characteristics that are important to buyer (size, weight, dimensions of
laptop etc)
d. Step 4 Purchase
i. Buyer chooses product/brand to be bought
ii. Buyer choose seller
iii. Buyer negotiate the terms of transaction
iv. Buyer makes purchase/terminate process
e. Step 5 Post-pruchase evaluation
i. Buyer evaluate product, does performance meet expected levels?
ii. Cognitive dissonance/post-purchase dissonance & buyers remorse
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1. Buyer doubts shortly after purchase if its the right one

3. Describe the level of involvement and types of consumer problem-solving processes

a. Degree of interest in product & importance of product
b. High involvement products
i. Visible to others and/expensive
c. Low-involvement products
i. Less expensive & have less associated social risk
d. Types of consumer problem solving

e. Impulse buying
i. Purchase solely on impulse & not on basis of any of 3 problem solving processes described earlier
ii. Unplanned buying behavior from powerful urge to buy something immediately

4. Discuss the main factors that influence consumer buyer behavior

a. Psychological influences
i. Perception
1. Selecting, organizing, interpreting info inputs to produce meanings
2. Information inputs sensation received through sense organs (sight, taste, hear, smell, touch)
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ii. Motives
1. Internal energizing force directs person to satisfy needs/achieve goals
2. Thirst/hungry, cold/hot, fear, success
iii. Learning
1. Changes in individuals though processes behavior caused by info & experience
2. Sources of learning
a. Behavioral consequence
b. Info processing
c. Experience
iv. Attitude
1. Individual enduring evaluation of feelings about behavioral tendencies toward an object or idea
2. +ve or ve
3. Major components
a. Cognitive knowledge & info
b. Affective feelings & emotions
c. Behavioral actions regarding the object/idea
v. Self-concept
1. View of ones self, +ve/-ve
vi. Lifestyles
1. Individuals pattern of living expressed through activities, interests, opinions

b. Roles
i. Actions/activities that a person in particular position is supposed to perform based on expectations
of the individual & surrounding persons
ii. Family role, work role, role in organization
c. Family influences
i. Consumer socialization acquires knowledge & skill to function as a consumer
d. Reference group
i. Any group +ve/-ve affects a persons values, attitudes, behavior
ii. Types:
Membership individual actually belongs
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Aspirational aspires to belong
Dissociative doesnt want to belong
e. Opinion leaders
i. Reference group member provides info about specific sphere that interest ref group participants
f. Digital networks (blogs, wikis, social networks)
g. Culture
1. Accumulation of values, knowledge, beliefs, customs, objects, concepts that a society uses to
cope with its environment & passes on to future generations
2. Influences buying behavior bc it permeates our daily lives
3. Cultural changes affect product development, promotion, distribution, pricing
ii. Sub-cultures
1. Group whose characteristic values & behavior patterns are similar, diff from surrounding culture
2. Youth subculture, based on sense of belonging & common purpose
3. Consumption based on common interests (ex. Harley-Davidson owners group)

5. Appreciate consumer behavior in digital era

p556-562

6. Understand what constitutes business buyer behavior

a. Decision processes & purchasing activities of people who purchase products for business purposes
i. For resale, direct use in producing other products/in general operations
ii. Involves business markets (p 194-195)
1. Producer, reseller, government & institutional markets
b. Characteristics of B2B transactions
i. Large orders
ii. Expensive items
iii. Frequent replenishments
iv. Long-term contractual agreements
v. Considerable marketing efforts
vi. Purchasing committees
vii. Reciprocity
1. Arrangement unique business marketing which 2 organizations agree to buy each other
c. Attribute of bus customers
i. Well informed abt products they purchase
ii. Demand detailed info & technical specification
iii. Help firm achieve organization objectives
iv. Engage rational buying behavior
v. Goals of purchasing agent may include advancement or financial awards
vi. Often form partnerships with suppliers
d. Types of business purchases
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e. Participants
i. Buying center
1. People within organization 9incl users, influencers, buyers, deciders & gatekeeper making
business purchase decisions
ii. Number & structure of a firms buying centers are affected by its size & market position, product &
volume & managerial philosophy of who should be involved in purchase decisions

7. Discuss how business buyer decision process differs from consumer buyer decision process

a. Step 1 Problem recognition

i. 1 individuals could recognize a need exist
ii. Individuals in buying center who recognize the need
iii. Needs could be identified by external sources (sales representatives/ads)
iv. Needs may arise under variety of circumstances
1. Machine malfunction
2. Existing product is modified
3. Introducing new product
b. Step 2 Product specification
i. Development of product specifications requires buying center participant assess the prob/need &
determine what is necessary to resolve/satify it
ii. Users & influencers often provide info & advice
iii. Assessing & describing needs, organization should be able to establish product specifications
c. Step 3 Potential products
i. Search & evaluate potential products & suppliers
ii. Search may include contacting suppliers for info, soliciting proposal & examining websites,
catalogues & trade publications
1. Value analysis evaluation of each component of the potential purchase to examine quality,
design materials
2. Vendor analysis formal, systematic evaluation of current & potential vendors to examine price,
product quality, delivery service, product availb & overall reliability
d. Step 4 Selection
i. Focus on selecting product to be purchase & supplier
1. Multiple sourcing buyer selects & uses several suppliers
2. Sole sourcing 1 supplier used
ii. This stage is where the actual purchase takes place & following details finalized
1. Terms & credit arrangements
2. Delivery dates & methods
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3. Technical assistance arrangements
e. Step 5 Evaluation
i. Products performance evaluation by comparing with specifications
1. If product meets specifications but doesnt work need adjusting
2. Suppliers performance also evaluated
f. 5 steps used primarily for new-task purchases
g. Several stages (not all) used for straight & modified rebuy
h. Influences on B2B buying decision process

Week 5 Segmentation, Targeting & Positioning

Ch 5
1. Understand what market segmentation is
a. Market group of people (individuals/organizations) hv needs for products & hv ability, willingness &
authority to purchase them
b. Market segment individual, group & organization with 1/more similar characteristics that cause
them to have similar product needs
c. Market segmentation dividing total market to groups w/ relatively similar product needs to design a
marketing mix that matches those needs
i. Appropriate for heterogeneous markets where there are diverse needs & wants for products
d. Target market organization decides to serve

2. Explain process of selecting & evaluating target market

a. Step 1 Identify the appropriate targeting strategy

i. Marketers need to select best targeting strategy
1. Undifferentiated, concentrated & differentiated strategy
ii. Selection based on needs of target market, characteristics of their targer market, product attributes,
org objectives & resources

iii. Undifferentiated strategy

1. Single marketing mix & direct to entire market for a particular
product
2. Homogenous market, large proportion have similar needs for
a product
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iv. Concentrated strategy

1. Single market segment with 1 marketing mix
2. Heterogeneous market, market of individuals/org with diverse
needs
v. Differentiated strategy
1. Target 2 market segment developing a marketing mix for each
2. For heterogeneous market

3. Discuss major segmentation variables

a. Step 2 Determine the segmentation variables

i. Geographic
1. Considers national boundaries, regional districts/suburban postcode
2. Market density number of potential customers within a unit of land area
3. Geo-demographic segmentation clusters people in postcode areas & smaller neighborhood
based on lifestyle & demographic info
4. Micromarketing focus precise marketing efforts on very small geodemographic market
ii. Psychographic
1. Can be used independently to segment a market but more commonly combined
iii. Behavioral
1. Benefit segmentation dividing according to benefits customers seek from product

b. Step 3 Develop market segment profiles

i. Market segment profile describe similarities of potential cust within segment & explain diff among
people & organizations in diff segments
ii. Determine most attractive segment(s) & potentially useful info for marketing decisions

c. Step 4 Evaluate relevant market segments

i. Identify several relevant market segments for further analysis
ii. Factors to consider: sales estimates, competitive assessment, cost estimates
iii. Market potential total amt of product that cust will purchase in a specified period at specific level
of industry-wide marketing activity
iv. Company sales potential max % of marketing potential a company can expect for a product
1. Breakdown approach
2. Buildup approach
v. Evaluation using competitive assessment (w/o it sales estimates can be misleader)
1. How many competitors exist? Strength & weaknesses? Have major market share?
2. Can we create a competitive marketing mix?
3. Will new competitors enter this segment? If so, can we still compete successfully?
vi. Evaluation using cost estimates
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1. Develop & maintain marketing mix that fulfills needs of target segment is expensive
2. Factors for cost
a. Distinctive product features e. Attractive promotional offers
b. Attractive package design f. Competitive prices
c. Generous product warranties g. High quality personal service
d. Extensive advertising

d. Step 5 Select specific target markets

i. Must be determined if cust needs differ enough to warrant use of market segmentation
ii. If homogenous cust needs = undifferentiated targeting strategy
iii. Hetero = 1 target market must me selected

4. Appreciate the concept of positioning

a. Product positioning
i. Create & maintain certain concept of product in cust minds
b. Bases for positioning
i. Product feature
ii. Product benefit/advantage (ex. Price, quality, brand reputation)
iii. Competitors
c. Perceptual mapping

d. Product repositioning
i. Regular evaluation of current position of existing
product is important
ii. May be required to strengthen market share &
profitability
iii. How:
1. Changing the product physically
2. Revise its pricing &/ dist strategy
3. Change product image
4. Targeting a diff market
5. Understand components of strategic marketing
a. Traditional marketing mix (4Ps)

i.
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b. Expanded marketing mix variables

i.
c. Marketing environment
i. Experience economy services economy
1. quality experience of buying & consuming, evoke emotional response with 5 senses
2. Expect service + experience
3. Personal & unique experience that are memorable & emotional
ii. Expanded mix the people

1.
iii. Expanded mix the physical evidence
1. Tangible & intangible clues cust may observe
2. Important validation of quality of services/experiences
3. Buildings, grounds, other physical assets servicescape
4. Atmospherics compelling & engaging atmosphere can
communicate a companys image
iv. Expanded mix the processes
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v. Expanded mix the partnerships
1. Alliances b/w independent orgs with goals of improving service & bus performance
2. B/w complementary skills/assets
3. When lack resources/expertise/desire to develop new products as well

Week 6 Branding & Product vs. Services

Ch 7-9
1. Understand concept of branding
a. Brand name, term, design, symbol/other feature that identifies 1 marketers product distinct
b. Brand name part of brand letter, words, numbers
c. Brand mark symbol/design
d. Trademark legal designation of exclusive use of brand
e. Trade name full legal name of organization

2. Explain value of branding & understand brand equity

a. Value of branding to buyers
i. Assist cust purchases by identifying specific preferred products to satisfy needs
ii. Product selection more specific not just by price
iii. Form of self-expression & status
iv. Symbolizes a level of product quality in custs perception
v. Reduce risk of purchase of competitive but inferior or inadequate product
b. Value of branding to sellers
i. Identify & differentiates a firms products from competing products
ii. Familiarity with name & perceived quality
1. Facilitate the promotion of all same-brand products
2. Helps in the intro of new products
iii. Fosters the development of brand loyalty repeat purchasing
1. Lead to stable market share, less reliance on price-cutting to attract customers
c. Brand equity marketing & financial value associated w/ a brands strength in market (p 224-25)
i. Brand name awareness brand recognized by potential cust & correctly associated with g/s
ii. Perceived brand quality intangible, overall brand evaluation
iii. Brand associations connect a particular lifestyle/certain personality type w/ specific brand
iv. Brand loyalty cust favorable attitude toward a specific brand

3. Discuss brand strategy decisions

a. Step 1 Brand positioning
i. Attributes, benefits, beliefs & values how the firm position their brand clearly in mind of cust

b. Step 2 Selecting a brand name

i. Easy to say, spell, recall, distinct
ii. Indicate products major benefits, uses & special characteristics
iii. Consider cultural interpretations & capable of registration & legal protection

c. Step 3 Brand sponsorships

i. Manufacturer brands
1. Brands initiated by producers
2. Producers are identified w/ their products at point of purchase
ii. House brands
1. Brands initiated & owned by resellers
2. Store brands/generic brands
3. Manufacturers not identified in product
iii. Co-Branding
1. 2 brands in 1 product
2. Can be owned by same/diff company
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iv. Brand licensing
1. Agreement company permits another org to use its brand/product for a licensing fee
2. Brand licensee responsible for all manufacturing, selling & advertising functions

d. Step 4 Brand development

i. Individual branding name each of a firms product differently
ii. Family branding with same name for all products
iii. Line extension existing brand on new product w/ same product category
iv. Brand extension existing brand to brand a new product in diff product category

4. Understand concept of a product & how products are classified

a. Good/service/idea received in exchange
b. Good tangible physical entity
c. Service intangible of human/mechanical application
d. Idea concept, philosophy, image, issue
e. Total product offering

f. Classifying products
i. Consumer products products purchased to satisfy personal & family needs

ii. Business products use in an organizations operations, to resell/make other products

5. Understand nature & unique characteristics of services

a. Tangible & intangible elements marketed with such combinations in mind
b. Services highly intangible products involving deeds, performance/efforts that cant be
physically possessed
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i. Dominated by intangible elements of total product
ii. Usually provided through the application of human/mechanical efforts

c. Goods services continuum concept

i. Products as lying on a continuum b/w 2 extremes & involve combination of physical goods &
services

Week 7 Principles of Marketing

Ch. 8-9
1. Understand concept of product life cycle & impact on marketing strategies

a. Introduction
i. First appears in the marketplace
ii. Sales stsrt at 0 & profit is ve
iii. Risk failure is high
iv.
2. Explain new product development process
3. Explain adoption process of new products
4. Understand important decisions in product management
a. Product line decisions
b. Product mix decisions
c. Individual product decisions
d. Product differentiation