Basic Marketing Concepts. Unit Essential Question What is Hospitality Marketing?
Basic Marketing Concepts Overview
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Transcript of Basic Marketing Concepts Overview
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Basic Marketing Concepts Overview
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Marketing Review Modules
• Marketing Concepts• Customer Needs• Industry Competition• Target Marketing, Segmentation,
and Marketing Research• New Product Development and
Sales1-5
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Basic Marketing Concepts
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The Marketing ConceptProfit
CustomerSatisfaction
Total CompanyEffort
TheMarketingConcept
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Utility and Marketing
Exhibit 1-1
From Production
From Marketing
Form
Task
Time
Place
Possession
UtilityValue that comesfrom satisfyinghuman needs
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Customer Value
Costs Benefits
• One customer’s views may vary from another customer’s view, so firm may not be able to satisfy everybody
• Customer value concept takes the customer’s point of view, but customers may not explicitly weigh costs and benefits
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The Marketing Management Process
Whole-CompanyStrategic
ManagementPlanning
MarketingPlanning
Implement MarketingPlan(s) and Program
Control MarketingPlan(s) and Program
Adjust PlansAs Needed
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The Four Ps of the Marketing Mix
Product Place
Price Promotion
C
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ProductPhysical GoodsServiceFeaturesQuality LevelAccessoriesInstallationInstructionsWarrantyProduct LinesPackagingBranding
PlaceObjectivesChannel TypeMarket ExposureKinds of
MiddlemanKinds and
Locations of Stores
How to Handle Transporting and Storing
Service LevelsRecruiting
MiddlemenManaging
Channels
PromotionObjectivesBlendSalespeople Kind Number Selection Training MotivationAdvertising Targets Kinds of Ads Media Type Copy Thrust Who Prepares?Sales PromotionPublicity
PriceObjectivesFlexibilityLevel over PLCGeographic
TermsDiscountsAllowances
Four P’s Strategy Decision Areas
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Marketing Strategy Planning Process
Customers
Company
Competitors
S.W.O.T.
Segmentation& Targeting
Differentiation& Positioning
Product Place
PromoPrice
Narrowing down to focused strategy with screening criteria
External Market Environment
TargetMarket
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External Factors
StrategyPlanning
Internal Factors
Strengths Opportunities
Weaknesses Threats
18-5
SWOT Analysis
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Exhibit 15-115-3
Strategy Planning for Advertising
SalesPromotion
Mass Selling
PersonalSelling
Target Market
PricePromotionPlaceProduct
Copy thrustMedia typesKind of advertising
Target audience
Who will do the work?
PublicityAdvertising
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Exhibit 13-113-3
Basic Promotion Methods
TargetMarket
PricePromotionPlaceProduct
SalesPromotion
PersonalSelling
PublicityAdvertising
MassSelling
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Pricing Objectives
Exhibit 16-416-4
Dollar or UnitSales Growth
Growth in Market Share
TargetReturn
MaximizeProfits
MeetingCompetition
NonpriceCompetition
PricingObjectives
SalesOriented
ProfitOriented
Status QuoOriented
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Strategy Planning for Price
Exhibit 16-1
Pricingobjectives
TargetMarket
PricePromotionPlaceProduct
Geographicterm —
who paystransportation
and how
Discounts andallowances—to whom and
when
Price levelsover product
life cyclePrice
flexibility
16-3
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Exhibit 17-1
Markup chainin channels
17-3
Key Factors That Influence Price Setting
Pricing objectives
Discounts andallowances
Legal environment
Price flexibility
Geographicpricing terms
Demand
Cost
Price of otherproducts in the line
Competition
Pricesettin
g
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24.00
30.00
50.00
Producer Wholesaler Retailer
Cost = 24.00 = 80%
Markup = 6.00 = 20%
Cost = 21.60 = 90%
Markup = 2.40 = 10% Cost = 30.00 = 60%
Markup = 20.00 = 40%
Exhibit 17-217-4
Markups
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Customer Needs
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A Model of Buyer Behavior
5-5
Purchase ReasonTimeSurroundings
PurchaseSituation
MotivationPerceptionLearningAttitudePersonality/Lifestyle
PsychologicalVariables
FamilySocial ClassReference GroupsCulture
SocialInfluence
Problem-Solving Process
Person Does or Does Not Purchase (Response)
Marketing Mixes All Other Stimuli
PersonMakingDecision
Exhibit 5-2
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5-6
The PSSP Hierarchy of Needs
Physiological Needs
Safety Needs
Social Needs
PersonalNeeds
Exhibit 5-4
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Purchase SituationSocial InfluencesPsychological
Variables
Need-want Awareness
Information Search
Set Criteria
Decide on Solution
Purchase Product
Routinized Response
Postpone Decision Postpurchase
EvaluationResponse
Feedback ofinformationas attitudes
Person making decision
Marketing mixes All other stimuli
Exhibit 5-95-13
The Consumer Problem Solving Process
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Exhibit 5-115-14
Levels of Problem Solving
Extensive Problem Solving
Limited Problem Solving
Routinized Response Behavior
Involvement Continuum
Low Involvement High Involvement
Low involvementFrequently purchasedInexpensiveLittle riskLittle information needed
High involvementInfrequently purchased
ExpensiveHigh risk
Much information desired
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Industry Competition
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The Competitive Environment
Information on Competitors
Competitive Barriers
Competitive Rivals
Competitor Analysis
Kinds of Markets
KeyConcepts
in theCompetitiveEnvironment
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Exhibit 12-1
Conven-tionalofferings
Single- andlimited-linestores
Expandedassortmentand service
Specialty shops anddepartment stores
Expandedassortmentand/or reducedmargins/service
Supermarkets, discounthouses, mass-merchandisers,supercenters
Added conveniencehigher marginsless assortment
Telephone/mail order,vending machines,door-to-door, conveniencestores, electronic shopping
Expandedassortmentreduced marginsmore information
Internet
12-4
Types of Retailers
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Types of Wholesalers
Exhibit 12-512-9
Does wholesaler own the products?
Limited-functionmerchant
Wholesalers
Servicemerchant
wholesalers
Agent middlemen
How many functions does the wholesaler
provide?
All the functions
Some functions
Yes (merchant wholesaler) No (agent middleman)
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Manufacturer or producer
Consumer
Procter &Gamble
DelMonteNissanCitibank
Wholesaler
Wholesaler
Retailer
Wholesaler
RetailerRetailer
10-5
Exhibit 10-2
Four Examples of Basic Channels of Distribution for Consumer Products
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Target Marketing, Segmentation &
Marketing Research
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Market SegmentationSt
atus
dim
ensi
on
Dependability dimension
A. Product-market showingthree segments
Stat
us d
imen
sion
Dependability dimension
B. Product-market showingsix segments
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Marketing Information Systems
7-3
Exhibit 7-1
MarketResearchStudies
InternalData
Sources
ExternalData
Sources
DatabasesDecisionSupportSystem(DSS)
MarketingManager
DecisionsOutcomes
MarketingModels
InformationTechnologySpecialists
Inputs?
AnswersN
ew In
form
atio
n
Feedback
Information
Sources
Questionsand Answers
Decision
MakerResult
s
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Definingthe
Problem
Analyzingthe
Situation
GettingProblem-Specific
Data
Inter-preting
Data
Solvingthe
Problem
EarlyIdentification
ofSolution
Feedback to Previous Steps
7-4
Exhibit 7-2
Marketing Research Process
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SecondaryData
Sources
Inside Company
Outside Company
Observation
Questioning
PrimaryData
Sources
AllData
Sources
7-5
Exhibit 7-3
Sources of Data
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Product Development
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Exhibit 13-7Time13-14
The Adoption CurvePe
rcen
t Ado
ptio
n
Innovators(3-5%)
EarlyAdopters(10-15%)
EarlyMajority
(34%)
LateMajority
(34%)
Laggards/Nonadopters
(5-16%)
05
20
50
90
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The Adoption Curve
• Innovators: • First to Adopt, Eager to Try• Young, Well-Educated, Mobile• Seek Info from non-salesperson Sources
• Early Adopters• Opinion Leaders• Greater Contact with Salespeople• Word-of-Mouth
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The Adoption Curve
• Early Majority: • Avoid Risk, Try Only if Others Have
Usually are Not Opinion Leaders• Late Majority:
• Cautious About New Ideas, Older and More Set in Their Ways
• More Subject to Peer Pressure
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The Adoption Curve
• Laggards:• Suspicious of New Ideas• Do Things the Way that They Have
Always Been Done
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The Product Life Cycle
9-3
Exhibit 9-1
Total IndustryProfit
+
–
$ 0
MarketIntroduction
MarketGrowth
MarketMaturity
SalesDecline
Time
Total IndustrySales
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PlaceProduct PricePromotion
Brand
Type of Brand:Individual or family
Manufacturer or dealer
ProductIdea
Physicalgood/service
FeaturesQuality levelAccessoriesInstallationInstructionsProduct line
Warranty
None, full, orlimited
Package
Protection,Promotion,
or both
Target Market
8-3
Exhibit 8-1
Defining “Product”
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The Transporting Function
Modesof
Transportation
Water
Air
Rail Truck
Pipeline
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Push-Pull Strategies
Exhibit 13-6
WholesalerPromotion
Push
WholesalerPromotion
Push
RetailerPromotion
Push
FinalConsumer
Pull
BusinessCustomer
Pull
Prom
otio
n to
Bus
ines
s C
usto
mer
sProm
otion toFinal C
ustomers
Promotion toChannel Members
Producer’s Promotion BlendPersonal Selling, Sales Promotion, Advertising, Publicity
13-13