Marketing 101 Lecture Notes
LECTURE 1: What is Marketing?
Evolution of Marketing:
Product OrientationSalesConsumerCompetitorCRMValue (brand equity)
5 C’s (Strategic) * Company * Customers * Competitors * Collaborators * Context
4 P’s (Tactical- “marketing mix”) * Product * Promotion * Price * Place
LECTURE 2: Customer Behavior
Consumer Decision Making Process:
Adoption Process (of new concepts that do not rely on previous purchases) (textbook):
AwarenessInterestEvaluationTrialDecision (purchase)Confirmation (reinforcement)
Basic Consumer Needs * Esteem * Control * Belonging * Meaningfulness
Book’s Hierarchy of needs: PSSP: physiological, safety, social, personal
Multi-Attribute Model (High Motivation evaluation of alternatives) * Ab = Σ (bi X Ii) * Customers rate different product attributes (-3,3) * Customers rate level of importance for attributes (1,7) * Focus on improving the important attributes OR Making strongest attributes more important to customers
Heuristics (Choice tactics or “rules of thumb”; Low motivation evaluation of alternatives) * Price – Higher price equals higher quality * Habit – Buy what we always buy * Normative – Popular products are better * More is better – More feature equals higher quality
Purchase Decision:
Heuristic (choice tactic)
Choice
Usage (experience)
Outcome: reinforcement, no reinforcement, punishment
Learning
Post-Purchase Decision Making: Satisfaction= f(perceived performance-expectations)
Lecture 3: STP
Market Segmentation involves: 1. Naming—disaggregating, breaking up needs 2. Segmenting—aggregating, clustering people with similar needs
Segments need to be: * Homogenous within * Heterogeneous between * Sustainable * Operational (accessible, measurable, actionable) * Stable
Segmentation Variables—need to be predictive of consumer behavior * Geographic * Demographic *
Evolution of Marketing:
Product OrientationSalesConsumerCompetitorCRMValue (brand equity)
5 C’s (Strategic) * Company * Customers * Competitors * Collaborators * Context
4 P’s (Tactical- “marketing mix”) * Product * Promotion * Price * Place
LECTURE 2: Customer Behavior
Consumer Decision Making Process:
Adoption Process (of new concepts that do not rely on previous purchases) (textbook):
AwarenessInterestEvaluationTrialDecision (purchase)Confirmation (reinforcement)
Basic Consumer Needs * Esteem * Control * Belonging * Meaningfulness
Book’s Hierarchy of needs: PSSP: physiological, safety, social, personal
Multi-Attribute Model (High Motivation evaluation of alternatives) * Ab = Σ (bi X Ii) * Customers rate different product attributes (-3,3) * Customers rate level of importance for attributes (1,7) * Focus on improving the important attributes OR Making strongest attributes more important to customers
Heuristics (Choice tactics or “rules of thumb”; Low motivation evaluation of alternatives) * Price – Higher price equals higher quality * Habit – Buy what we always buy * Normative – Popular products are better * More is better – More feature equals higher quality
Purchase Decision:
Heuristic (choice tactic)
Choice
Usage (experience)
Outcome: reinforcement, no reinforcement, punishment
Learning
Post-Purchase Decision Making: Satisfaction= f(perceived performance-expectations)
Lecture 3: STP
Market Segmentation involves: 1. Naming—disaggregating, breaking up needs 2. Segmenting—aggregating, clustering people with similar needs
Segments need to be: * Homogenous within * Heterogeneous between * Sustainable * Operational (accessible, measurable, actionable) * Stable
Segmentation Variables—need to be predictive of consumer behavior * Geographic * Demographic *