Marketing Strategy Fundamentals: Eras, Data, and Consumer Decisions

Fundamentals of Marketing Management

The role of the Marketing Manager involves strategic decisions regarding Market Share, focusing on the core elements of the Marketing Mix: Product, Price, Promotion, and Place.

The Evolution of Marketing Eras

• Production Era (Pre-1920s): Goods were scarce; buyers accepted what was available. (Approx. XIX Century to 1920)
• Sales Era (1920 to 1960): Increased production necessitated aggressive selling to move products out.
• Marketing Concept Era (1960 to Present): Focus shifted to satisfying customer needs and delivering value.
• Customer Relationship Era (1990 to Present): Emphasis on satisfying high customer expectations and building long-term relationships.

Strategic Decision Making

Key components of strategic decision making include Mission, Vision, Strategy, and Execution.

Strategic Growth Tools

• BCG Matrix: Used to quantify performance measures and set growth targets.
• Diversification Analysis (Igor Ansoff): A framework used to search for growth opportunities among new markets and products.

Marketing Information Systems (MIS)

MIS involves People, Technology, and Procedures used to obtain essential marketing information.

Three Sources of Marketing Information

• Internal Databases (Electronic): Collections of information about company practices, customers, and products.
• Marketing Intelligence: Systematic collection and analysis of public information regarding competitors.
• Marketing Research: The formal process of defining a specific marketing problem.

The Marketing Research Approach

1. Define the Problem.
2. Develop the Research Plan.
3. Collect Relevant Information.
4. Develop Findings.
5. Take Marketing Actions.

Data Collection Methods

Sampling Methods

Selecting a representative customer group for research. Sampling can be probability sampling or non-probability sampling.

Primary Data

Facts and figures newly collected specifically for the current project.

• Mechanical Methods: Devices that transmit data on consumer behavior.
• Personal Methods: Reveals what people do (e.g., using mystery shoppers).
• Neuromarketing: Measures responses to non-conscious stimuli.

Advantages of Primary Data: Specific to the project and more flexible.

Disadvantages of Primary Data: Expensive and time-consuming.

Secondary Data

Facts and figures already recorded prior to the project.

• Internal Secondary Data: Includes financial budgets, sales forecasts, and actual sales figures.
• External Secondary Data: Sources include articles and market reports.

Advantages of Secondary Data: Low cost and time-saving.

Disadvantages of Secondary Data: Definitions and categories may be unspecific or out of date.

Consumer Decision Process Stages

The stages a buyer passes through when making choices:

1. Problem Recognition: Perceiving a difference between the ideal and actual situation.
2. Information Search: Utilizing internal and external sources.
3. Alternative Evaluation: Assessing objective and subjective attributes.
4. Purchase Decision.
5. Post-Purchase Behavior.

VALS Framework

The VALS (Values, Attitudes, and Lifestyles) framework analyzes consumer lifestyle, motivation, and resources.