Market - the place where offer and demand meet.
Marketing - set of actions used by organizations to influence public behaviour they depend on.
The value of a product is linked to consumer perception: the consumer believes he will get an experience that is worth the money.
Perceived value -> Experience -> Satisfaction -> Preference
Understand the market –> Adapt to the market -> Better influence the market
Types of Market: Company, Reference, Generic, Induced (print ink), Captive (limited competition)
Market Analysis: Size of the market, Demand analysis, Competitor Analysis, Environment Analysis (political, economic, social, technological), SWOT
Consumer ...view middle of the document...
Positioning = Strategy --> Image = Perception
1. Renunciation – by making a clear offer in customers minds, positioning makes some people happy (buyers) and some unhappy (non-buyers).
2. Durability – it is extremely complicated to change customer’s perception or given product or brand.
Positioning Process: Identification (competition) – Differentiation (stand out)
* Product Performance
* Target Market
“Products are more than products. What people buy is not very important. What is essential is what they believe they buy.” Functional Value -> Image Value.
Marketing Concept is at the heart of the product.
Marketing Concept = Main Client Expectation + Main Client Perception = Identification
* Product protection
* Product use
* Product transportation
* Product storage
* Product communication
Price is a way to build/influence perception.
Price = Perceived Value + Customer Surplu (negotiation)
Merchandising - marketing practice aiming at positively influencing the way products are presented to the final customer in a point-of-sale environment.
* Producer: maximize sales
* Retailer: maximize profitability by square meter in the outlet
1. Choice of location
2. Choice of quantity
3. Product presentation
4. Point of sale promotion
“The only sustainable competitive advantage any business has is the reputation that lies within its brand.”
Goodwill - an accounting concept meaning that the value of an asset is intangible but has a quantifiable "prudent value".
To gain market shares and perform on the market, companies must differentiate from competitors and create perceived value.
There is a need to simplify consumer decision-making process (reduce risk / set expectations) through the brand:
-Brand as a simplification tool in a crowded market
-Brand and unicity: identify a group of products and make it different from competitors
Brand – a name, term, sign, symbol or design, or combination of them, intended to identify goods and services of one seller, or group of sellers, and to differentiate them from those of competition.
Brand is a contract: a promise perceived by the client ready to be loyal and pay more.
Brand has identity: tangible attributes + intangible attributes
A branded product has a brand, which adds other dimensions that differentiate it from other products designated to satisfy the same need.
Effects of a strong brand:
* Product-Related: perception of quality; increase in consumer confidence & loyalty; mitigate impact of negative trial
* Price-Related: brand leaders can put higher prices & are more immune to price increases
* Communication-Related: good evaluation of brand advertising; humor is more effective; less negativity from repetitive ads