Background

Marketing theories and concepts are the guiding principlesthat help marketing practitioners make sense of customers,organisations, markets, and products. The theories andconcepts have been arranged into three mega-marketingconcepts: The buyer decision process The total product concept The circle of satisfaction

Section 2: Theory - [3 modules]

Before we can explore the 3 mega-marketing concepts

We need to clarify some marketing terms

Clarify the marketing terms Situational factors [COMP factors] Culture A marketing culture

Products Product qualities

Value Satisfaction Distinguish between a product & a brand The ‘self’ Types of involvement

Directions

product

market

customer

society+

Situational [COMP] factors are at the centre of marketing

Situational factors

important to customers & organisations

organisation

Organisational culture is enduring

1. the marketing concept2. a marketing philosophy3. an organisational culture

Organisations develop a culture

Societies* are formed through culture

Adapted from Geetz (1975]

A culture is a set of beliefs, values1, perceptions, &

behaviours; learned by members of society & as such provides

guidance [feedback and feedforward] to its members.

Culture is what we value1 – a preferred state.

enculturation - acculturation

the pattern of shared beliefs,values & perceptions that givemembers of an organisationmeaning, & the rules of behaviourwithin the organisation.

Organisations have a culture

Westin Hotel - Bali

A marketing ‘culture’

an organisational with [a set of beliefs, values1, perceptions, & behaviours] that adapts with the

market & is focussed on profitable4 exchange

relationships4

Think: cultivating and nurturing

The right culture does not happen by chance it happens by choiceA marketing philosophy nurtures a culture.

Being customer centric Understanding the customer A commitment to quality & value Honest communication Delivering on promises A commitment to satisfaction Cultivating a sense of mission espirit de corps

A marketing ‘culture’We will discover that a marketing culture has 2 opposite behaviours: Collaborating Internal customers channel partners external customers

Competing Organisations offering

competing products

producte.g., GDP - Gross Domestic Product – total economic activity within a country

The sum of efforts that are offered for saleLatin in origin

[total economic activity is not restricted to goods]

Glenfinnan viaduct

Aqueduct Park Rome

?Aqueducts deliver …. Airconditioning ducts …

Lisbon Portugal

Aqueducts - delivers waterProducts - deliver benefits

What is product quality

Product quality is the sum of a product’s qualities

?Every product has qualities

The qualities are theelements, features, properties, characteristics of the product

[+-]

It is important to understand qualities and quality

All products have qualities Functional

Social

Epistemic

Emotional

Spiritual

Physical

Temporal

Sensory

What How Why

Technical qualities Functional qualities Relationship qualities

Organisations also consider qualities as

the the the

Quality

The concepts of quality and value are quite differentThere can be the perception that a product is a quality

product6 without the perception of valueSo quality can be irrelevant

What is value

value is used in 3 ways

?Value is a preferred outcome

Value1 - as in a value1 or values1

Value2 - as in value2 for money Value3 - as in having a value3 or

attribute that provides a benefit

human cultural personalLike all other people ……..……… like some other people ………………. like no other person

Values1

Values1influence & shape consumption patterns – what we value2 – what we prefer

Needs Products & Values1 come together to satisfy

Marketing is an exchange of value2 for the buyer & the seller

Value2exchange

What is value2 ?Value is a preferred outcome

Product qualities must outweigh the product costs

Wants influence the direction we take to satisfy needs in keeping with values1

Products exist to satisfy

Products & Value2 come together to satisfy

What are the product qualities – do they have a nutritional value3?

Value3 helps consumers to purchase decisions

a calculative process of product costs & product qualitiesestimate > assess > reflect

What is product value?Value is a preferred outcome

A product can be perceived as being of value to you but not to me

The concept of value varies person2person

InstrumentalValue

[a means to an end goal]l

Terminal*Value

[the end goal]l

Products can have an

*also referred to as autotelic

segmentationCollective values are the basis of

• Geographical • Demographic• Psychographic • Behavioural• VALS• Price - benefit • Cultural

Segment• Identify basis for segmenting market• Develop segmentation profiles

Position• Identify a segment positioning strategy • Craft marketing plan and action plan

Target• Identify segments by attractiveness• Select most attractive segments

Wants are not always universal

Wants Sometimes creates embarrassment to members of a culture

enculturation - acculturation

Wants are not always universal

Wants What one culture/person finds acceptable others may not

enculturation - acculturation

Products&

Brands

Originally, a brand was a permanent mark to identify ownership of livestock and slaves.

brands are more enduring than products

A brand is an overarching identification that spans a number of products

brands are more enduring than products

A brand is an overarching identification that spans a number of products

brands are more enduring than products

A brand is an overarching identification that spans a number of products

brands are a heuristic to determine quality & value

“brands add value to the company because they add value to the customer”

Payne & Frow (2013, p. 92)

Consumers employ products & brandsto position themselves in society

Just Looking

Maslow stated that when our needs are 80% satisfied we hunt for new needs

This is regardless of whether we are in the marketplace or marketspace

looking for stories that are ‘involving’ – intriguing, that attract our attention and are consistent with our values1 and what we value2 -

who we are or wish to be

Just Looking

Gapthe actual-ideal self

Consumers are ‘just looking’for their ideal self

The actual self is how a person sees her/himself or how a person believes others see her/himThe ideal self is how a person aspires to be seen by others

Factors that influence the level of involvement: include: –values, product costs, product familiarity, product risks, & situational factors.

Involvement will be greater when the product is linked to self-relevance & self-image

Is this product ‘of importance’ to me?

Involvement

varies according to the situational factors

Involvement

Perhaps COMP involvement would be a good descriptor

Consider buying a bottle of wine For a quick Thai meal Your boss’ 40th birthday Celebrate an engagement

How involved is the customer with the product

Involvement

involvement

COMP involvement [p.59 e-book]

How involved is the customer with the product

?Involvement

How involved is the customer with the product

?Involvement

How involved is the customer with the product

?Involvement

Involvement

Low

High

Low involvement, low costs, frequently

purchased, familiar, generally low risk

Higher involvement, higher costs,

infrequently purchased, unfamiliar, generally

higher risk

Peripheral route of persuasion

Central route of persuasion

Organisations will design and develop a communication strategy according to

COMP + degree of involvement

Later we will discuss in more detail how

Consequential purchases increase with involvementInvolvement

Is the customer a co-producer of the product?

Involvement

Does word of mouth demonstrate customer involvement ?

Is word of mouth a service provided by customers for the organisation ?