Introduction to Marketing Management

Market & Product

A market is the set of actual and potential buyers of a product. These buyers share a particular need or want that can be satisfied through exchange relationships.

Product (Marketing Offer): physical product, service, information, experience, person, place, organization, and ideas.

Examples of Product

Definition of Marketing

Marketing is the process of planning and executing the conceptions, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals. (AMA)

Marketing is meeting needs profitably.

National Milk Processors Education Program

章子怡 Hulk Garfield

Focus of Marketing

Consumer behavior External Internal

Marketing strategies Product, price, place, and promotion

External Consumer Behavior

Shoppers often zip through the snack aisle, spending only 42.7 seconds there, whereas they spend more than twice that in the coffee aisle.

Only 34% of shoppers who don’t have baskets actually purchase something, while 75% of shoppers with baskets buy some items.

A woman who shops with another woman spends twice as much time in the store than if she shops with a man.

Internal Consumer Behavior

Cognition and Affect Examples: Country-of-origin effect, framing

effect, and prospect theory.

Question 1

假設台灣爆發罕見疾病，預見期會有 600人死亡，但有有方案 a及方案 b可供選擇以對抗疾病，估計如下：

方案 a ： 200人確定可以獲救。方案 b ： 1/3機率 600人可獲救， 2/3的機率無人可獲救。

Question 2

假設台灣爆發罕見疾病，預見期會有 600人死亡，但有有方案 1及方案 2可供選擇以對抗疾病，估計如下：

方案 1 ： 400人確定會死亡。方案 2 ： 1/3的機率無人死亡， 2/3的機率

600人均死亡。

展望理論 (Prospect Theory)

人在面對「利得」時，常是風險趨避的。

人在面對「損失」時，常是風險愛好的。

Example: 散戶的心態。

STP concept

Market segmentation: dividing a market into distinct groups of buyers who have distinct needs, characteristics, or behavior and who might require separate products or marketing mix.

Steps for market segmentation Identify bases (ex. geographic, demographic, psychographic,

and behavior) of segmenting Develop profiles of resulting segments

Market segment: a group of consumers who respond in a similar way to a given set of marketing efforts.

STP concept

Target marketing: the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.

Steps for target marketing Evaluate the attractiveness of each segment Select the target segments

A company with limited resources might decide to serve only one or a few special segments or “market niches”. E.g. Arm & Hammer, Oshkosh Truck, and Veterinary Pet

Insurance.

Case: Veterinary Pet Insurance

Facts More than 60% of all U.S. households own one

dog or one cat or both. There are more than 60 million dogs, 68million

cats, and 2 million rabbits in U.S.. Spend $28.5 billion a year on the pets. Nearly 75% of pet owners are willing to go into

debt to pay for veterinary care. Sales have grown 40% in each of the past

year, reaching nearly $72million last year.

STP Concept

Market positioning: arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Steps for market positioning Identify possible positioning concepts for each target

segment Develop marketing mix for each target segment

Examples: HITACHI, KOLIN, and SAMPO.

The 4 P’s of the Marketing Mix

Pricing

Pricing Approach Product-Bundling Pricing Segmented Pricing, e.g. a theater has only 4

seats.

4 non-students’ valuations 20, 18, 16, 14

4 students’ valuations 10, 8, 6, 4

Creative of Outdoor Advertising