Business Administration - parte 1

MARKETING MIX

Product strategy: the nature of the product and its package design, brand names, trademarks, and product image

Placement/distribution strategy: purchases in the proper quantities at the right times and locations

Promotional strategy: blends advertising, personal selling, sales promotion, and public relations to achieve its goals of informing, persuading, and influencing purchase decisions

Pricing strategy: is setting profitable and justifiable prices for the company's product offerings, sometimes to government scrutiny

Marketing mix for international market

Standardization: offering the same marketing mix in every market (same strategy in the same place)

Adaptation: developing a unique marketing mix to each market's local competitive condition, customers' preference, and government regulations

Mass customization: allows a company to mass produce goods and services while adding unique features to individual or small groups of orders

Market segmentation: is the process of dividing a total

Segmenting consumers marketing:

Geographic Segmentation - homogeneous groups based on locations

Demographic Segmentation - based on various demographic and socioeconomic characteristics: gender, income, age, household size, occupation, stage in the family life cycle, education, ethnic group

Psychographic Segmentation - similar psychological characteristics, values, and lifestyle

Product-related/Behavioral Segmentation - based on buyer's relationship to the good or service

• Consumer Behavior
• Business buying behavior

Actions of ultimate consumers directly involved in obtaining, consuming and disposing of products and the decision processes from multiple decision makers that precede and follow these actions (personal factors, interpersonal factors, external factors)

Relationship marketing — developing and maintaining long-term, cost-effective and exchange relationships with partners; consumers enter into relationships only if there is some benefit to them; relationship marketing seeks to achieve consumer satisfaction

One-to-one marketing — customizing products and marketing and rapidly delivering goods; databases about customers with regard to tastes, price range preferences, purchasing habits, and lifestyles; software helps companies gather, sort, and interpret data about specific customers

Marketing - Product & Distribution

Goods and services are classified by a

several number of factors, like purchase frequency, store image, price,promo on, distribu on channel and number of retailer outlets.Products are “con nuum” degree to which a product is tangible or intangible. Services are classi ed as intangible,perishable, di cult to standardize and service provider is the service.Product iden ty BRAND — a name, term, sign, design or combina on of those used to iden fy the products of a rm and todi eren ate them from compe ng products Brand equity — the value that a company has build up in a brand Brand loyalty — the degree to which customers con nue to purchase a speci c brand PACKAGING — makes products easier to display, facilitate the sale of smaller products, serves as a means of productdi eren a on; packaging can signi cantly in uence buyer percep ons, some mes in surprising ways. LABELLING — the internal part of packaging, is a separate element a ached to the package or a printed part of thecontainer, it

Serves to identify a brand and communicate multiple types of information, for promotional messages or legally required safety or nutritional data.

Product life cycle —> Take a longer life cycle by selling something similar but different in the shape, price and performance (ex. PS4 — something cheaper and smaller = mini PS4; something bigger, bigger memory = PS4 pro)

Marketer's objective is to extend the life cycle as long as product is profitable (goals): increasing customer's frequency of use, adding new users, finding new uses for product, changing package sizes, labels, and product designs

Distribution channel: path through which products flow from producer to consumers or business users

Physical distribution: actual movement of products from producer to consumers or business users

Direct distribution: B2B, often found in the marketing of relatively expensive, complex products that may require demonstrations; internet is helping companies distribute directly to consumer market

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Distribu on Channels using Marke ng Intermediaries: producersdistribuite products through wholesalers and retailers; inexpensiveproducts sold to thousands of consumers in widely sca ered loca ons;lower costs of goods to consumers by crea ng market u lity

Wholesaler — distribu on channel member that sells primarily toretailers, other wholesalers, or business users

Manufacturer — Owned Wholesaling Intermediaries: owned by manufacturer to control distribu on or customerservice, sales branch that stocks products and lls orders from inventories, sales o ce thattakes order but does not stock the product

Retailer — channel member that sells goods and services to individuals for their own userather than for resale; two types: store (must be replace by e-commerce) or non store (online)

Non store retailing: direct

response retailing, internet retailing, automa c merchandising, direct selling (C13: p. 382-385, p. 389-391; C14: p. 431-434)

Marketing - Promotion and Pricing

Promotion — is the function of informing, persuading and influencing a purchase decision. It is based on communication strategies. Some promotional strategies try to develop primary demand, most promotion stimulates selective demand, or a desire for a specific brand.

Communication & Promoting establish clear goals, define compelling communication messages to help achieve those goals, outline a cost-effective media mix to engage target audiences

Promotional mix

• Personal selling
• Non-personal selling
• Personal and non-personal selling components, effectively and efficiently presentation to a potential buyer
• Direct marketing
• Public relations

Promotional planning

• Product placement
• Guerrilla marketing

Marketers pay placement fees to have their

1. Products Innovave, Low-Cost Marke ng and Exports
2. Designed to get showcased in various media, ranging from newspapers and consumers' a en on in unusual ways (provoca ve and magazines to television and movies unconven onal to expensive)
3. Adver sing — is paid non-personal communica on usually targeted at large numbers of poten al buyers; adver sing expenditures are usually great, consumers are bombarded with many messages, more crea ve and e cient at ge ng consumers' a en on
4. Type of adver sing:
   • Product adver sing: sell a par cular good or service
   • Ins tu onal adver sing: promote concepts, ideas, philosophies, or goodwill for industries, companies, organiza ons, or government en es
   • Cause adver sing: promote a speci c viewpoint on a public issue as a way to in uence public opinion and the legisla ve process
5. Adver sing channels: television, newspapers, radio, magazines, direct mail, outdoor adver sing, digital adver sing
6. Online and Interac ve adver sing
7. Sponsoring Other Media

Viral advertising, pop-up ads

Sponsoring or cultural event in exchange for direct association with the event; target audience

Sales promotion — consist of forms of promotion such as coupons, product samples, and rebates that support advertising and personal selling

Pricing:

• Price, exchange value for good or service
• Profitability, maximize profits by reducing costs, maintain price while reducing package size
• Volume, base pricing decisions on market share goals
• Competition, meeting competitors' price, competitors cannot legally work together
• Prestige pricing, pricing is high to maintain an image of quality and exclusiveness; communicating an overall image for the firm and its products; limited in distribution

become scarce generate their own pricing objectives: - Skimming pricing — high price relative to the prices of competing products, distinguishes a firm's high-end product from those of competitors - Penetration pricing — low prices as a major marketing weapon, often used with new products - Discount pricing — low pricing rather than relying on short-term price-cutting tactics, dropping price for a set period of time - Competitive pricing — reducing the emphasis on price competition by matching other firms' prices Consumers' perceptions of quality are closely tied to price: - High price = prestige and higher quality - Low price = less prestige and lower quality Odd pricing — uneven amounts or amounts that sound less than they really are (ex. $1.99, $299) Accounting and Financial management Accounting is a service activity, its function is to provide and interpret financial information to assist decision making. Accounting is used in a range of organizations: business,

government, charities, not-for-profits. - not just 'bean counters' or 'number crunchers'

Accountants - varied and interesting work in a variety of roles (decide the right price of a good, - more focus on analytical and communication skills having a basic understanding will help you with budgets) - benefit of basic understanding

Non-accountants - engineers - product design (reduce costs/increase price) - marketing - maximize sales - HR - major organizational cost

Decision making:

• Life is full of decisions
• Making choices - past (reporting and analysis), future (planning), future objectives with through daily activities
• Decisions affect the future
• Good decisions require good processes