1.INTRODUCTION TO MARKETING:

-> There are different approaches to create value:

MKT: Are all the activities that try to put toghether the supply and the demand.

Understanding the Market:

=> UNDESTRANDING THE MARKET allow to  understand what are Opportunities and Threats.

Marketing definition:

-> We have to find a MARKET to sell.

• High Competition <- Stable Market (If we know that the mkt is doubling in the next years, there is space for every one).

Market Segmentation:

-> About the differences between people.

-> In Italy we have a lot of different water. These companies make a lots of segmentation.

-> Salts before we sold only the big and the small one. After we had different products.

Product life cycle:

-> LAUNCHING:

• Does the product survive? If some one doesen’t, the one who does has to pay for the non good one.

-> GROWING: the mkt change a lot;

-> MATURITY: the market doesen’t change.

Competitive System:

-> The market and the competitive system change by the historical period.

Distribution System:

->  Definition of channels of distribution.

-> Why Barilla and Nutella spend money to do advertising in the most trasmissing television? Because the mind of the human are done in this way, u have to remember that e them exist.

-> CUSTOMER JOURNEY: market have to understand how people buy a car.

Customer behaviour analysis:

-> When a person buy a car, a person spent 60 hours online (English study). And the online cars mkt are very small => The company has to be online and tell a story. This kind of story has to change to customer to customer => Is important the customer journey.

Market trends:

-> 50% of segment occuped by disel car segment. Now is changing for electrics.

-> We have to see the trends of the mkt.

Assessing ur Market position:

-> We have to understand our position in the market.

Market Shares (by segment):

❓how many shares do I own of a determinate segment?

-> Not in every market comapnies needs to have market shares. In B2B is not to easy know how are going the competitors, in car market you can do it.

Customer Base:

-> It’s important to understand customer.

-> FIDELITY/LOYATY/SATISFACTION:  83% of people buying Mercedes will buy another one. For Fiat is 44%.

Customer loyalty/satisfaction:

-> They are very important.

Brand:

-> VALUE: How much Nike, Adidas and Apple value?

-> BRAND AWARENESS: knowledge of the brand. What is the image that u have oof a brand (Vanna Marchi).

-> Pay attention to the strategy that company want to use.

-> Position: is in the mind of the consumer.

SWOT:

=> Make SWOT analysis.

• Chose strategy;
• Chose objectives:

-> Increase mkt penetration;

-> Increase satisfaction of customers;

• Chose segments (1 or 2);
• Chose targets;
• Chose position (healthy, quality, price)

Programming the Marketing Mix:

❓What do you want to sell products?

4 Ps:

-> Where the first to be invented

• Product;
• Place;
• Price;
• Promotion;

7 Ps:

• People: Front end. Who the customers interact with?
• Physical Evidence: (anche l’abito fa il monaco) even if the service is intangible u have to sell it in the best way.
• Process: oriented to the customer. Service would be very important.

90 millions arrival Francia. Is the service that make the people move.

2.UNDERSTANDIG THE MARKET:

Index:

1. Market definition
2. Demand analysis
3. Trends
4. Competitor Analysis
5. “Micro” level analysis of demand – Customer behavior analysis and decisions (BTC)
6. “Micro” level analysis of demand – Customer behavior analysis and decisions (BTB)

2.A)Market Definition:

-> DEF: Section of the area of business (extent and depth) in which the company intends to operate, to be known and appreciated, to employ its resources;

-> USEFULL:

• Helps to understand what we must concentrate our attention;
• Simulates a feeling of identity;
• Facilitates communication with the outside.

-> CONSEQUENCES:

• Competitors must be taken into account;
• Customer requirements on which attention must be concentrated;

The Reference Market:

-> To know which is our market we have to ask…

❓What is our reference market?

-> The market where we know everithing about:

• “Consumer” needs;
• Development trends;
• Competitors, their strong and weak points, thir future plans;
• Segmentation.

Extention of the Business Field: intuitive aproach

-> “Narrow” or “broad” definition has opposite advantages and disadvantages

-> Decisions are based on:

• Resources;
• Time scale;
• Situation of the company;
• Objectives pursued;
• Confidence.

Makret & Needs:

Qualification of the market:

Maslow’s Hierarchy of Needs:

Market Environment:

Potential market: market that is achieved when the marketing effort is infinite

Qualified market : market with the requisites to be available for the purchase (e.g. 18+ y.o. – or 21 y.o. in some countries – for some products; driving license, etc.)

Available market: qualified + able to spend enough to buy the product or interested enough in the category

Served: available market that is reached by the marketing effort of the companies

Penetrated: market that has already purchased products/services in the category

> Characterisations of Demand:

• Product/service
• Definition of “purchase”
• Unit of measure
• Customers
• Geography
• Time
• Level of aggregation
• Players and competitor

-> We have external and decisional variables:

EXTERNAL VARIABLE (context conditions)	DECISIONAL VARIABLE (marketing effort)
Macro-environment Economic situation Customers expenditure availability Competitive system (monopoly, oligopoly) Position in the industry Subsidiary products Equivalent products	Product / service Price Stores / distribution Promotion / communication Salesforce

-> Decisional variable “price” effect upon demand:

-> www.unrae.it Dati circa le auto, immatricolazioni, crescita e flessione dle mercato.

Choice of the market forecasting method:

1.BASED ON AVAILABLE DATA:

1. Quantitative data available? -> Quantitative methods
2. Quantitative data not available? -> Qualitative methods

2.BASE ON THE OBJECTIVE:

-> Three main objectives:

1. Estimating market size of an existing product?
2. Estimating the market demand after a new product launch?
3. Estimating the market demand precisely in a time-lapse?

Estimate Market Size

-> DEF COEFFICIENT method: parameters rappresenting a past experience or a future expectation on the evolution of a phenomenon.

-> Use it to understand how big is the market.

-> Fast moving consumer goods and services, not tied to the use of equipment (e.g. preserves, personal or home care products, etc.)

Generic:

Specific Equipment:

Desk Research:

-> DEF: research technique which is mainly acquired by sitting at a desk. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories.

-> Ex: Internal Desk Research • External Desk Research • Online Desk Research • Government/Institution published data • Customer desk research • Analyst published data (free or paid)

Demand forecasting:

-> Market tests:

• Experimental design
• Testing with customers
• Observation and registration
• In case, what-if analysis

2.B)Trends:

Which scenario’s factors can influence company’s success?

-> Variables are affecting:

• Supply levels (capital, labor)
• Demand levels (consumption, investment, climate, export, imports)
• Cost structures (price based in the equilibrium of supply and demand)

Reference Framework

2.D)Competitor Analysis:

-> DEF: Competitor Analysis means, in mkt, analysing the competitors in all the items regarding the strategic and operational marketing.

=> It’s important to:

• Analyse (and define relate KPI) a lot of items in what competitors are doing;
• How much they are investing in marketing activities;
• What are the results and the qulaity of the marketing activities.

Steps Analyzing Competitors:

• Firms face a wide range of competition • Be careful to avoid “competitor myopia” • Methods of identifying competitors: • Industry point-of-view • Market point-of-view • Competitor maps can help

Determining competitors’ objectives • Identifying competitors’ strategies • Strategic groups • Assessing competitors’ strengths and weaknesses • Benchmarking • Estimating competitors’ reactions

• Strong or weak competitors • Customer value analysis • Close or distant competitors • Most companies compete against close competitors • “Good” or “Bad” competitors • The existence of competitors offers several strategic benefits

2.E)“Micro” level analysis of demand -Customer behavior analysis and decisions (BTC)

“MACRO” ANALYSIS: customer as a number to qualify and estimate the market of reference (previous slides )

“MICRO” ANALYSIS: customer as an individual/organization, with his/her own objectives, wants, behavior

-> Distinction between:

• consumer clients
• business clients

-> Providing a deep customer analysis:

-> “Consumer” customers Characteristics “Stimulus-response” Model Buying decision process Roles involved in the buying process	B2C
-> “Business” customers Characteristics “Stimulus-response” Model Buying decision process Roles involved in the buying process	B2B

The Customer Custumer

-> DEF: Customer is a person either multiple interests

-> Interests have some areas inchich there are overlaps and influences:

The Stimuli-Response Model:

-> Exploding the model:

Decision-Making and Psychological Factors:

Perception as a Selective Process:

-> We need a lot of exiposition before to have an action to a brand.

=> External stimuli come to oue mind and has a response:

⚠No customer’s mind can absorb, interpret, store, reca⚠

Phases of the Buyng Process:

-> Some pahses as consumer “clients”:

1.Recognition or anticipation of the problem/need:

• obsolescence of plants
• productive capacity
• development of new products
• dissatisfaction
• cost
• etc.

2.Definition of the functional and/or technical specifications: compilation of a purchase specification

3.Search for information: Through institutional or personal sources, qualification lists, vendor lists, etc.

4.Requests for an offer: Offers are marketing document thus they must also inspire confidence and position the company

5.Evaluation of alternatives

6.Decision

7.Post-purchase: Very important in a product lifecycle cost approach (assistance, maintenance, spare parts, etc.)

Marketing in the Buying Decision Process

Roles:

2.F)“Micro” level analysis of demand -Customer behavior analysis and decisions (BTB)

• Demand:
  • Often “derived” (CICLICITY, multiple effects)
  • Particular dynamics
• Structure
  • Concentrated (reduced number of clients)
  • Stable/interdependent
• Relationships with customers:
  • “Balanced” negotiating power
  • Reciprocally active
  • “Complex” – between groups

-> Characterizations of industrial markets

• Industrial market (companies producing goods and services)
• Re-sellers market
• Public administration market (central and local entities and institutions)
• No-profit companies market

Factors influencing the business buying process:

Loking for the factors influencing organizational buying behaviour:

-> Purchase types are characterised in terms of:

• Novelty (ex: the new CRM);
• Complexity;
• Uncertainty;
• Importance;
• Specificity and personalisation.

 

Kraljic Matrix:

-> Useful to know which items is the best.

The buying Process:

-> From order request to order issuing:

Roles in the Buying Process:

-> Actors in the buying process :

• Initiator: identifies a need and believes it can be satisfied by buying a good or  service; activates the process.
• User: uses the product or service purchased; may be the activator of the  buying process and plays an important role in defining specifications.
• Buyer: has the formal authority and the power to negotiate with the supplier.
• Influencer: directly or indirectly influences the decision process, providing  information and evaluation criteria for the alternatives.
• Decider: has the authority to choose between the existing alternatives/proposals and formally approves the decision.

-> Marketing Manager’s task is to:

• Identify roles in relation to the buying situation;
• Keep separate the distinct roles;
• Identify the decision variables and the services of the purchase that each role “sees” or has the authority to “see”.
• Identify the decision variables and the services of the purchase that each role “sees” or has the authority to “see”.

Purchase Center Needs:

-> Technical needs: adjusting the product to the required function, quality and duration

-> Economic–financial needs: purchase cost, payment terms and conditions

->Assistance needs: post-purchase service, help in setting up and use

-> Information needs:

• priority access to innovation, security and stability of purchases, market  Information
• dependence relationships, coherence of organizational methods with company orientation

3.ASSESSING THE MARKET POSITION:

-> Business Intelligent Analysis:

• Product Portfolio;Customer Poirtfolio;
• Sales Segment Analysis;
• Sales distributions;
• Pricing analysis and policy;
• New product development situation;
• Services.

Market Shares:

->Choiche of a System of Reference:

Relative Market Share:

Brand KPI:

SHARE AWARENESS/BRAND AWARENESS: measure how familiar people are with your brand or product.

• Top of mind:The first brand that comes to mind when a customer is asked an  unprompted question about a category. The percentage of customers for whom a given brand is top of mind can be measured
• Unaided awareness: A measure of the number of people who express knowledge of a brand or product without prompting (brand recall).
• Aided awareness: A measure of the number of people who express knowledge of a  brand or product when prompted (brand recognition).

Custeomer’s Index:

• Customer retention;
• Customer satisfaction;

-> Booking;

• Customer quality;

-> who is buying my Ferrari.

4.The Logic of the “SWOT” Analysis Process:

EXAMPLE: a SWOT analysis slide

EXAMPLE: Tows Matrix:

-> Cross O/T with S/W: