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4Ps IMMEDIATE ENVIRONMENT - Love needs: interaction with others

- Product: Creating Value Customers: what information do we need to know about - Esteem needs: allow people to satisfy their inner desires
- Includes goods, services, and ideas (thoughts, opinions, customers to maximize value? 4Ps is what gives value, find info - Self-actualization: occurs when you feel completely satisfied
philosophies) like safety and insurance to make 4Ps decision with your life and how you live
- Price: Capturing Value (time, money, energy) Company: SWOT, know company’s strengths and weaknesses Attitude: feelings about and behavioral tendencies toward an
- Place (distribution): Delivering Value Corporate partners: What other organizations are involved object idea or experience
- Promotion: Communicating Value (suppliers, sponsors, etc) and what are their relevant S&Ws - cognitive component: what we believe is true
SITUATIONAL ANALYSIS Competitors: Who else could provide value to our customers? - Affective: emotions or what we feel about issues at hand, likes
What is a Marketing Strategy? Look at their targeting, position, and all 4Ps and dislikes (cognitive dissonance is under this)
Identifies… 3 types of competition - Behavioural: actions we undertake based on what we know
- A firm’s target market >Direct (same benefit, same firm) and feel
- Related marketing mix (4Ps) >Indirect (same benefit, different form) Perception: select, organize, and interpret info to form a
- Bases on which the firm plans to build sustainable >Marketplace (different benefit, different form’ competing for meaningful picture of the world
competitive advantage (SCA) time, attention, and money) ≫influences acquisition and consumption of goods and services
≫SCA is an advantage over competition that cannot easily be MACROENVIRONMENT (CDSTEPN) through our tendency to assign meanings to such things
copied and can be maintained for long Cultural: products and services identifiable by and relevant to a ≫ the way we experience the world; not opinions; shaped by
≫relevant to the customer/category/context particular group of people culture, experience, attitudes, and interests
≫ do better relative to the competition Demographics: gender, race, income, age, the stuff on vividata Difference of Perception and Attitude
≫unique combination of strengths and advantages >bite cookie (oh its sweet- perception/no judgement), but its
Macrostrategies for Developing Customer Value too sweet (attitude)
> Customer Excellence: all about retaining loyal customers and Learning and memory (affects attitudes and perception)
excellent customer service ≫Learning: change in thought process or behaviour from new
> Operational excellence: supply chain and HR management, experiences
develop strong relationship with vendors ≫Memory: information that has been acquired and stored in
> Product Excellence: having products with high perceived the brain to be available and used
value and effective branding and positioning - Information encoding: info they receive about products
> Locational Excellence: good physical location and internet and services to storable info
presence - Information storage: knowledge gets in integrated and
‼ need more than 1 strategy Social: shifts in perspectives, behaviours, attitudes (be specific) stored with what consumers already know and remember
‼ developing one of these does not automatically create a SCA Technological: about science and knowledge (including mental - Retrieval: access info
Characteristics of Value-based Marketing health) Lifestyle: how a consumer spends their time and money,
>Goes beyond just customer For an organization to succeed, it Economic: inflation, currency fluctuation, interest rates affected by social experiences
needs to create value for more than just its customers. Value- Political/Legal: food-safety rules, CPA rules, laws differing in SOCIAL FACTORS
based organizations actively work to understand the need and different places Family: how family members influence purchase decisions
interests of (i.e. the “value sought” by) ALL stakeholders Natural: restrained by the resources of the planet, climate Reference Group: one or more persons whom an individual
>Maximizes value: Deep understanding of stakeholders’ needs change affects all businesses uses as a basis for comparison regarding beliefs, feelings,
(through research, listening, communication). More than just MARKETING RESEARCH (Is it useful?) behaviours
differentiation from competitors; focuses on “out valuing” the 1. Define objectives and research needs: careful comparison of ≫through blogs, conversations,
competition in ways that matter to the people it is serving benefits through answering questions and costs associated with ≫powerful w young consumers
>Long-term focus: Looks well beyond the next quarter or year; the research
invests resources and effort in long-range scanning, analysis to 2. Design the research: identify the type of data
anticipate challenges and opportunities and develop goals and (primary/secondary, qualitative/quantitative)
strategies. Bases decisions on both long-term and short-term >Primary Data: data collected to address specific research
outcomes. Create value in a sustained way to out-value and needs. Common collection methods include focus groups, in-
out-compete competitors depth interviews, and surveys
>Relationship-building: Applies its long-term focus to its >Secondary Data:
interactions with stakeholders; looks beyond a single ≫Inexpensive (quickly accessed @low cost, not adequate),
interaction (“transaction”) to future interactions, as well. ≫Syndicated (purchased from research firms [e.g. scanner data
Commitment to building a mutually beneficial and ongoing UPC check codes, to see weekly consumption, panel data-
“relationships” with stakeholders; serves both parties’ long- records of purchases a group of customers over time] what are
term needs (i.e., creates value) customers buying?,
>Evolves over time (always research, listen, communicate) for ≫Internal: sales invoice, customer lists, compny reports
new changes in the environment. Without a commitment to - (data mining- uncover unknown patterns/relationships, churn- Aspirational: you want to be part of that group
adaptation, it will be impossible to maximize long-term value number of participants who discontinue use of a Dissociative: avoid the group (still influences you because you
for stakeholders and build relationships service/average number of total participants) [used to are avoiding it)
Portfolio analysis: evaluation of firm’s products and allocates determine what items people buy at the same time so they can Culture: shared meanings, beliefs, morals, values, and customs
resources to most profitable product for the firm in the future be displayed together, of a group of people
- big data (amazon filtering) SITUATIONAL FACTORS (“don’t buy groceries when you’re
3. Collecting the data hungry”)
Purchase situation: customers can purchase something bc of a
psychological trait or social factor (buying a special gift bc of a
birthday rather than a cheaper item)
Sensory: sight, hearing, smell, touch, taste, different factors
when purchasing online or in-store
Temporal: state of mind at any particular time (when its traffic
going to the mall and it ruins your mood)
Involvement and Consumer Buying Decisions
Collection Techniques
1. Observation: examine behaviour through camera
2. Social Media: sentiment mining- data gathered by evaluating
customer comments on social media
3. Experiment: change marketing mix and see how people
would react
3. in-depth interviews, focus group interviews
4. survey research with unstructured or structured questions:
SWOT ANALYSIS able to reach more people, least expensive
5. panel and scanner-based research, experimental research

4. Analyzing the data and developing insights

5. Developing and implementing the action plan
CONSUMER BEHAVIOUR Low involvement: impressions are more superficial
Factors Influencing the Consumer Decision Process High involvement: process key elements of the message more
deeply
5 steps in marketing planning Extended problem solving: purchase entails a lot of risk (maybe
1. Understand the organization’s overall vision, mission, goals more expensive)
> what are you offering value and to whom? Limited Problem solving: habitual purchases, relies on past
2. Research and analyze situation (internal and external, swot) info, impulse buying
3. Develop marketing strategy (target market, positioning, 4Ps,
SCA)
> positioning: how they see us relative to the competition
>4Ps: how to achieve position for target market
4. Implement marketing strategy,
5. Monitor and control

PSYCHOLOGICAL
Motives: need or want strong enough to seek satisfaction They all influence each other, hard to change attitudes
- Physiological needs: basic biological necessities of life (judgement) once its there
- Safety Needs: protection and physical well-being
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CONSUMER DECISION PROCESS SEGMENTATION, TARGETING AND POSITIONING

1. Need Recognition: Greater discrepancy between needy and Step 1: Establish overall strategy or objectives
desired state = greater need recognition Step 2: Use segmentation methods
- functional needs pertain to performance of product/service
- psychological needs satisfy personal gratification (buying Notes on:
luxury items) - Self values: goals for life, not just one-day goals
2. Information search (underlying need that pushes a person to seek ot certain
>internal search: memory and past experiences products/brand to filfill self-value)
>external search: info outside personal knowledge - Self-concept: “self-image” way we see ourselves in the
>Factors that influence search for information context of that goal
≫perceived benefit vs perceived costs (is it worth time to - Lifestyle: how we live our lives to achieve these goals
research?)
≫Locus of control:
Internal: people believe they have control over outcomes of
their actions (so they research more)
External: fate controls all outcomes (less research)
≫Actual or perceived risk (5 types of risk) To derive a perceptual map, 6 steps:
1. Performance: danger of poorly performing service 1. Determine consumer’s perceptions and evaluations of the
2. Financial: initial cost of purchase and costs of using the item product or service in relation to competitor’s product or service
or service 2. Identify the market’s ideal points and size
3. Social: fears consumers suffer when they worry others might 3. Identify competitor’s positions (sports drinks are closer
not like their purchases together)
- Geographic: basis of location 4. Determine consumer preferences
4. Physiological: safety risk - Demographic: descriptors of a population
5. Psychological: way people feel if product does not convey the 5. Select the position
- Psychographic: perceptions, beliefs, self-concept, lifestyle, 6. Monitor the positioning strategy
right message “bigger is better” attitudes, identity, values (no social class or personality)
≫Type of product: convenience, shopping, specialty, unsought EXAMPLES
- Behavioural: benefits sought, loyalty status, user status, usage Segmentation example
- Shopping: segment is not brand loyal and does a lot of rate, occasion
research before buying Step 3: Evaluate Segment Attractiveness
- Specialty: brand loyal and has strong preference >identifiable/distinct
- Convenience: little or no research before buying, no strong >substantial (size and growth): measure target market size
brand preference, does not think a lot about the product before >reachable: through persuasive communication and product
buying distribution
>staples: regular purchases, habitual >responsive: customers react similarly and positively to firm’s
>impulse: on-the-spot decision offering
>emergency: urgent based condition >Profitable: market growth, competitiveness, access
- Unsought: segment not previously aware of product or usually Step 4: Select a Target Market
never thought about buying it >undifferentiated targeting or mass marketing: everyone is a
≫level of involvement potential user, no segments Segment 1 Description: Contenders see themselves as (and
3. Alternative Evaluation: how does a person choose which >Differentiated: several market segments with a different indeed, are) competitive athletes in a range of sports and
options to consider? How do they evaluate options? offering for each depend on their athletic footwear to provide them with stability
≫attribute sets: consumer’s mind organizes and categorizes >Concentrated: when organization selects a single, primary and cushioning to perform at their best in competitions and
alternatives to aid his/her decision process target market (but acknowledges segments) intense training sessions. They are young adults, 19-
- Universal sets: all possible choices for a product category >Micromarketing: firm tailors a product or service to suit an 25, and can be found working out in fitness centres, training
- retrieval sets: brands or stores that can be readily brought individual customers programs, and gyms across Canada.
fort from memory Positioning
- evoked set: brands or stores consumer states would consider >space you occupy in target market’s mind relative to REMEMBER: Always include behavioural and psychographic
when making a purchase decision competition variables in the mix
> positioning= target market + differentiation Marketing analysis tools include BCG matrix, CDSTEPN, and
SWOT
CDSTEPN example (charging car robot thing)
- Cultural: different cultures value sustainability differently,
interdependence or independence in different cultures (do they
let other cultures influence them), subculture of environmental
activism and robotics enthusiasts
- Demographics: EV ownership, credit card ownership,
apartment/condominium living vs single family homes,
education level
- Social: growing awareness of sustainability, climate change,
large part of population fears robots and AI, demand/passion
Buyer’s Remorse (Cognitive Dissonance) for innovative services and goods, global distrust if VW from
>good for competitor’s emissions scandal
>ethics,reduce product returns,environmental concerns - Technological: Data security advancements are critical,
Shortcuts to simplify decision process robotics advancements, rate of electrification of cities; more
- determinant attributes: product features important to the climate-robust grids
buyer that is offered by competitors - Economic: Energy prices – oil vs renewable energy; interest
- Consumer decision rules: set of criteria (consciously or rates (production costs will be high); exchange rates (will be
subconsciously) sold around the world); consumer buying power (covid 19)
≫compensatory: trades off one characteristic for the other, - Political: Government policies/funding to prepare cities for
good compensates bad climate change; ongoing/future legal actions against VW for
≫Noncompensatory: only on the basis of one characteristic past scandal; nationalism in response to COVID-19; domestic
≫Choice of architecture: effort to indulge customers through stimulus policies
the design of environments in which they make choices - Natural: Extreme weather because of climate change could
>impulse products affect electricity supply; changes in temperature (colder
>Nudge: merchandise at the front of the store weather could affect battery life); shortages in raw materials;
>Default: deals with a “no action” condition (person fails to earthquake prone regions
decide or does not look for alternative) default choice
>Level of Involvement Dark is secondary, light is primary
4. Purchase and Consumption >value proposition is the same as positioning
What influences a person’s decision at point of purchase Main components of value proposition:
(consumer behaviour, type of product, level of involvement) >target market, offering name or brand, product/service
how much do you care category, unique point of difference/benefits
5. Post-Purchase >for (audience), (product name) is a (category name) which
provides (main benefit) unlike (competitor) which provides
(main benefit of competitor)
Brand positioning starts with frame of reference (how the
market sees a product/category)
>leverage points of parity: factors that customers see as similar
between brands
>compelling points of difference (performance, imagery,
consumer insights): benefits that are relevant, distinctive, and
credible
All 4Ps reinforce positioning
Positioning Map: displays, in two or more dimensions, the SWOT EXAMPLE
products or brands in the consumer’s mind

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