MARKETING FUNDAMENTALS

WEEK 1. INTRODUCTION TO MARKETING

 Provide an overview of Marketing and the marketing process
 Recognise that marketing involves a mutually beneficial exchange of
value
 Discuss the importance of ethics and CSR in marketing
 Explain the elements of the marketing mix
 Discuss how marketing improves business performance, benefits society
and contributes to quality of life

Marketing is the activity, set of institutions and processes for creating, communicating,
delivering and exchange offerings that have value for customers, clients, partners and
community at large.

History of Marketing:

1. Trade: formal definition of marketing didn’t exist

2. Production Orientation
3. Sales Orientation  Increased competition
4. Market Orientation  Current Era
5. Societal Market Orientation  Consumer welfare (CSR)

Exchange is mutually beneficial exchange of offerings between buyer and seller that
meets parties’ expectations

- 2+ parties each with something of value

- All parties benefit
- Both parties meet other’s expectations

Value is total perception on offering’s received and given

- Quality / Price = Benefit Expected / Benefit Received

Market is a group of customers with heterogenous wants and needs

- Customer: Purchase
- Consumer: Use
- Clients: Customers for NFP organisations
- Partners: Involved in process
- Society: Individual members of community

Stakeholder is those with interest in business

Marketing Mix is variables used to exercise control over offering for exchange

- Goods: Product, Price, Promotion and Place

- Service: People, Processes and Physical Evidence

Ethics: Set of moral principles that guide attitudes and behaviours  Doing what is
‘right’.
 - Cannot be summarised by a set of rules = Rather is subjective and depends
on social, cultural and individual factors.

Corporate Social Responsibility: Businesses have an obligation to act in the interests of

societies that sustain them.

Triple Bottom Line: Assists in evaluating business performance in a broader perspective

to create greater business value.

How Can Marketing Improve Performance?

- Firms with a market orientation perform better than firms without a market
orientation.

- Have better profits, sales volumes, market share and return on investment when
compared to their competitors.

- Marketing drives economic growth; marketers play a role in stimulating consumer

demand.

- Developing social change programs to influence the voluntary behaviour of target

audiences to improve the welfare of society.

Marketing Environment: internal & external forces influencing

marketing exchange of offerings of value

Environment Analysis: breaking down into smaller

understandable groups

- Internal Environment: organisation, people and processes

(S & W)
- External Environment: people & processes outside business (O & T)
- Micro Environment: forces within business
o Customers, Clients, Partners and Competitors
- Macro Environment: PESTEL

- Politics is directly relevant through:

- Lobbying for favourable treatment at the hands of the
government.
Political Forces - Lobbying for favourable regulation.
- The very large market that the government and its
bureaucracy comprise.
- Effect of political issues on international marketing
- Factors that affect how much people and organisations can
Economic spend and how they choose to spend it. Including:
Forces - Income, interest rates, prices, the level of savings, the
level of debt and the availability of credit.

Sociocultural - The sociocultural factors that affect people’s attitudes, beliefs,

Forces behaviours, preferences, customs and lifestyles.
 - Statistics about a population: age, gender, race, ethnicity,
educational attainment, marital status, parental status and so
Demographic
on.
Forces
- Natural environment = Example of a sociocultural theme that
has emerged recently.
- Allows a better way of doing things.
Technological
Technology changes the expectations and behaviours of
Forces
-

customers and can have huge effects on how suppliers work.

- Natural disasters, weather and climate change.
Environmental
Growing ecological awareness and social changes influence
Forces
-

how firms will operate.

- Laws and regulations govern what marketing organisations
can and cannot legally do.
- Laws and regulation fall into the following categories: privacy,
Laws & fair trading, consumer safety, prices, contract terms and
Regulations
intellectual property.
Forces
- Laws = Legislation enacted by elected officials.
- Regulations = Rule made under authority delegated by
legislation.

Situational Analysis identifies key factors used for basis of strategy

Marketing Planning: ongoing process combining objectives & analysis to formulate goal
orientated plan

Marketing Metric: ROI, Customer Satisfaction, Market Share and Brand Equity
WEEK 2. MARKET RESEARCH
 Importance of market research
 What is a research problem and brief
 Primary and secondary data
 Quantitative and qualitative research
 Data collection and analysis
 Reporting of market research findings to inform marketing decisions

Market Research is the activity for information of use in marketing decisions

1. Define problem
2. Design methodology
3. Collect Data
4. Analyse & Conclude
5. Present & Recommend

Factors: Relevance, Timing, Resource Availability, Need for info, Cost-Benefit Analysis
and Ethics

Research Problem: question that market research is intended to answer

Market Research Brief is the instructions on problem, information required, timeframe,

budget and other conditions

1. Executive Summary: overview

2. Introduction: explains why and who
3. Background: marketing problem
4. Problem Definition: question being addressed
5. Time Budget: money, results and other contingencies
6. Reporting Schedule: dates and report format
7. Appendices: additional background information

Types of Research:

- Exploratory: loosely defined problem

- Descriptive: particular defined problem
- Casual: assumes variable causes outcome
- Hypothesis: explanation tested

Types of Data:

- Secondary: collected for other purposes

- Primary Data: collected for specific problem
- Data Mining: large data for trends/patterns

Research Methods:

- Quantitative Research: numerically represented including experimentation,

observations and neuroscience
- Qualitative Research: attributes and emotions of behaviour
Research Design:

- Population: All of the things (often people) of interest to the researcher in the
particular research project.
- Sampling: The process of choosing members of the total population.
- Sample: The group chosen for the study.

Sampling

- Probability Sampling: Every member of the population has a known chance of being
selected in the sample that will be studied.
- Non-Probability Sampling: A sampling approach that provides no way of knowing the
chance of a particular member of the population being chosen.
- Sampling Error: A measure of the extent to which the results from the sample differ
from the results that would be obtained from the entire population.

Data Collection, Analysis & Reporting

- Data must be collected according to the methods specified in the research design.
- The data collection process can be conducted in-house or it can be outsourced.
- Time and financial resources are limited, so budgeting and scheduling need to be
planned and managed to ensure the most benefit is derived from the research
investment.

Data Analysis - Filtering and organising collected data.

Converts numerical data into knowledge that
Quantitative
-

can be used to inform decision making, using

Analysis
software such as SPSS or Excel.
Qualitative - Reduction and coding are used to interpret non-
Analysis numerical data.
- State what the data has shown in terms of
Conclusions original research question, and suggest one or
more courses of action.
Recommendat - Possible courses of future action.
ions

Reporting

- Presenting research findings to enable decision makers to use this information.

- A written research report should include:
 Cover page and executive summary.
 Table of contents.
 Introduction or background.
 Methodology and findings.
 Statement of limitations.
 Conclusions and recommendations.
 Appendices
WEEK 3. CONSUMER BEHAVIOUR
 Importance of understanding consumers’ behaviours
 Major group factors that influence consumer behaviour
 Major individual factors that influence consumer behaviour
 Explain the general steps in the consumer decision‐ making process

Consumer Behaviour is an analysis of individual and household behaviour who buys G&S

- Habitual DM (low risk)  Limited DM  Extended DM (higher risk)  Impulse Buying

- The circumstances consumers find themselves in when making

purchasing decisions  Immediate purchase of Panadol if
person has a headache.
 Physical location
Situational
 Social interaction
 Time available
 Purchase motivation
 Consumer mood
Cultural Factors
- Influences on behaviours that operate at a societal level.
- Culture: System of knowledge, beliefs, values, rituals and
artefacts by which a society or other large group defines
themselves  Tangible or intangible elements.
 Power Distance: Degree of acceptance inequality
within a culture.
 Uncertainty Avoidance: Extent to which people feel
threatened by uncertainty and seek to reduce it.
 Individualism: Extent to which people focus on their
own goals over those of the group (collectivism).
 Masculinity: Extent to which assertiveness and status
are valued over solidarity and life quality.
 Long Term Orientation: Pragmatic, long term
Group
orientation is valued a short-term focus.
- Subcultural: Group of individuals sharing common attitudes,
values and behaviours that distinguish them from the broader
culture.
 Multiculturalism: Existence of diverse cultures within a
society.
- Social Class: Group comprising individuals of similar rank
within the social hierarchy.
 Defined by values and lifestyles, and often by indicators
such as income, occupation and education.

Social Factors
- Influences on the individual to behave a in way that reflects a
group of norms.
 - Reference Group: Any group to which an individual looks for
guidance.
 Membership Reference Group: Group to which the
individual belongs.
 Aspirational Reference Group: Groups to which the
individual would like to belong.
 Dissociative Reference Group: Groups an individual
does not wish to be associated with or which the
individual may wish to leave.
- Opinion Leaders: Reference group member who provides
influential advice about a specific topic of interest to group
members.
- Family: Most influence over consumer behaviour.
 Family Life Cycle: Series of characteristic stages
through which most families pass.
 Family Decision Making Roles: Who has the
responsibility for making specific types of decisions
within the family.
 Pester Power: Influence of child on their parents
purchasing decisions.
- Roles: Individuals play a number of roles, each with a complex
set of expectations  Parent, child, neighbour, employee,
customer or friend.
- Status: Influence is built on the perceived status of the
individual, based on a range of criteria including formal role,
age, technical competence or social popularity.
Individual Personal Characteristics
- Constitute an individual’s identity and in this sense, are
objective and relatively stable in the short term.
 Demographics: Vital and social characteristics of
populations, such as age, education and income.
 Lifestyle: How an individual spends their time and
interacts with others.
 Personality: Set of unique psychological characteristics
and behaviours that characterise an individual, formed
through a complex combination of genetics and
experiences.

Psychological Characteristics
- Internal factors, independent of situational and social
circumstances, that shape the thinking, aspirations,
expectations and behaviours of the individual.
 Motivation: Internal drive to act to satisfy unfulfilled
needs or achieve unmet goals  Maslow suggests that
people seek to satisfy needs according to a hierarchy
that places lower order ‘biogenic’ needs before higher
order ‘psychogenic’ needs.
 Perception: Psychological process that filters, organises
and attributes meaning to external stimuli.
 Beliefs: Descriptive or evaluative thoughts that an
individual holds regarding their knowledge of a person,
 idea or product. Beliefs may be based on objective
knowledge, opinions or faith.
 Attitudes: Individuals relatively stable and consistent
thoughts, feelings and behaviours towards and object or
idea.
 Behavioural Learning Theory: Stresses the role of
experience and repetition of behaviour, as seen in
‘classical conditioning’. Most relevant in low involvement
purchases.
 Cognitive Learning Theory: Learning takes place
through rational problem solving, emphasising
acquisition and processing of new information, relevant
in high involvement purchasing decisions.

Maslow’s Hierarchy of Needs:

1. Physiological
2. Safety
3. Love or Belonginess
4. Esteem
5. Self-Actualisation

Consumer Decision Making Process

1. Need/Want Recognition: When a buyer becomes aware of a discrepancy between

desired state and actual state.
2. Information Search: Buyer searches for information about how to solve the
problem.
3. Evaluation Of Options: A successful information search would usually yield a
range of alternative solutions for consideration.
4. Purchase: The brand and product are chosen.
5. Post Purchase Evaluation: Buyer continues to evaluate their decision.
6. Cognitive Dissonance: Occurs when a purchaser has second thoughts or doubts
about the wisdom of a purchase they have made.
WEEK 4. MARKETS: SEGMENTATION, TARGETING & POSITIONING
 Explain the broad concept of a market
 Understand the target marketing concept
 Identify market segmentation variables for consumer and business
markets, and develop market segment profiles
 Select specific target markets based on evaluation of potential
market segments
 Understand how to effectively position an offering to a target
market in relation to competitors, and develop an appropriate
marketing mix.

Markets can have various or common wants, needs and demands

Target Marketing

Market Segments is subgroups within market with similar characteristics

1. Mass Marketing is marketing to buyers as a whole with undifferentiated approach,

high profitability and economies of scale
2. One to One Marketing is providing customised offering to individual customer
needs with higher unit costs and a niche strategy
3. Differentiated Targeting is developing a mix of strategies for each target market
segment with high costs and higher prices but higher market share and customer
loyalty
- Product Specialisation: single product to number of market segments
- Market Specialisation: meets wide need range within particular market segment
- Product-Market Specialisation: single product to single market

The 4 segmenting variables are:

1. Geographic
2. Demographic
3. Psychographic (lifestyle, motives and personality)
4. Behavioural (Variables: benefit expectation, loyalty,
usage, price sensitivity, occasion)

Effective Segmentation Criteria:

1. Segment: Identify - Measurability
variables and - Accessibility (distribution and communication
profile channels)
- Substantiality (sufficient size for profit)
- Practicability (segments used if they can be
identified/serviced)
- Stability (segment stays long enough for results)

Market Segment Profiling describes typical potential

customer with each segment being different enough to
create a distinctive offer
2. Target: Evaluate & Selection of target markets resulting from an evaluation of
Select identified market segments.

Market Potentials is the total expected sales of a

product in a period with specific marketing
 Sales Revenue: total sales x average selling price
Market Share: proportion of market held
- Company potential is an estimate of expected max
sales revenue and market share for a product
Way in which the market perceives an organisation, its
products and its brands in relation to competing offerings.

Market Positioning is the way segments perceive a

3. Position: Priority &
product compared to competitors
Marketing Mix
Company Positioning is a strategy to create a single
market perception of a company
Brand Positioning is a strategy to create a perception of
a brand
LECTURE 5. PRODUCT
 Define product and product attributes
 Describe the product life cycle, new product development and the
production adoption process
 Product Differentiation
 Branding
 Role of Packaging
 Product Management and positioning through the product life cycle

Product is a good, service or idea offered to market for exchange

- Good: tangible offering

- Service: intangible offering without ownership
- Idea: concept, issue or philosophy

Total Product Concept: describes core product, expected product, augmented product
and potential product explaining the value offering

Core Fundamental want/need

Product
Expected Characteristics necessary to function and
Product normally expected
Augmente Additional features, benefits, attributes etc.
d Product
Potential Transformations in the future i.e. software
Product upgrades

- Product Item: Particular version of a product.

- Product Line: Set of product items related by characteristics such as end use,
target market, technology or raw materials.

- Product Mix: Set of all products that an organisation makes available to

customers.

- Consumer Products: Purchased by households and individuals for their own

private consumption.

- Business 2 Business Products : Purchased by individuals and organisations for use

in the production of other products or for use in daily business operations.

- Shopping Products: Moderate to high engagement decision making, with the

purchase decision based on features, quality and price.

- Convenience Products (Fast Moving Consumer Goods): Inexpensive, frequently

purchased, products bought with low engagement decision making.

- Specialty Products: Highly desired products with unique characteristics that

consumers will make considerable effort to obtain.

- Unsought Products: Purchased to meet a sudden, unexpected need.

Product Life Cycle

1. NEW PRODUCT DEVELOPMENT

a. Idea generation
b. Screening
c. Concept evaluation
d. Marketing strategy
e. Business analysis
f. Product development
g. Test marketing
h. Commercialisation
2. INTRODUCTION
3. GROWTH
4. MATURITY
5. DECLINE

Product Adoption Process:

Diffusion of innovations: social groups

influence individual decisions allowing
a predictable pattern over time

Product differentiation is the creation of products/attributes that distinguish from

competitors
Branding is a collection of symbols creating an image in customer’s minds that
differentiate from competitors

- Brand: Collection of symbols such as a name, logo, slogan and design intended to
create and image in the customers mind that differentiates a product from
competitor’s products.
- Brand Image: Set of beliefs that a consumer has regarding a particular brand.
- Brand Name: Part of a brand that can be spoken, including words, letters and
numbers.
- Brand Mark: Part of a brand not made up of words  It often consists of symbols
or designs.
- Trade Mark: Brand name or brand mark that has been legally registered so as to
secure exclusive use of the brand.
- Brand Equity: Added value that a brand gives a product.
- Brand Loyalty: Customers highly favourable attitude and purchasing behaviour
towards a brand.
- Brand Metrics: Value of brand in terms of brand assets, stock price analysis,
replacement cost, brand attributes and brand loyalty

Types of Branding:

1. Individual Branding: each product branded separately

2. Family Branding: same brand for multiple products
3. Brand-Extension: giving existing brand to new product in different category

Branding Strategies:

- Manufacturer Brands: owned by producers and identified at point of sale

- Private Label Brand: owned by resellers and not identified by manufacturer
- Generic Brands: indicate product category

Branding Control:

- Licensing: only permits owner to use brand

- Franchising: agreement to use business model for coordinated promotion,
reduced risk and effort
- Co-Branding: 2+ brand names on same product

Packaging

- Primary Package: holds product

- Secondary Package: holds/protects product and can be removed/discarded after
purchase
- Shipping Product: carries through distribution channel

Labelling: part of package that identifies, promotes and has legal and other info
 - Compulsory: brand name/logo, product name, ingredients, use by date and bar-
code

Product Strategies (Igor Ansoffs)

1. Market Penetration: selling more existing products to existing/new customers.

Low Risk
2. Product Development: new products for current market emphasising innovation.
Risky
3. Market Development: new markets for existing products. Riskier
4. Diversification: new products in new markets. Riskiest

Managing through the life cycle

- Line extension: new products related to existing products

- Product modification: changes to supersede original through function, quality or
aesthetics
- Repositioning:
o Positioning: way a product is perceived to customers
o Deletion: removing product from product mix

The Role of Law

To define acceptable vs unacceptable behaviour.

Marketing law includes any regulations that attempt to ‘draw the line’ between
acceptable competitive business conduct and unacceptable business practices.
Designed to protect:
- Consumers
Market Laws - Traders
- The competitive system that underpins the ‘free market’ Australian
economy.
Intellectual Property:
- Patents for new inventions
- Registering a trade mark.
- Registering a design.
- Copyright.
Packaging & Labelling  Designed to standardise information and
protect against misleading or deceptive information.
Product Laws
- Weight
- Content of goods.
- Food ingredients.
Product Liability  Minimum acceptable product safety and quality
standards, such as:
- Food hygiene regulations.
- Manufacturer liability for defective or negligent products.
LECTURE 6. PRICE
 Understand what guides pricing strategies
 Analyse demand to develop an appropriate pricing strategy
 Describe cost-based pricing
 Role of competitive analysis in pricing
 Issues involved in pricing for business markets
 How to manage prices as part of the marketing mix

Price is a measure of value for buyers/sellers

- (Profit = (price x sales volume) – total costs)

- Seller’s price covers cost and has return & buyer’s price reflect worth and
willingness to pay
- Benefits:
o Buyer: satisfaction from ownership/consumption
o Seller: revenue, price seeking or price adversion

Pricing Objectives

- Determining objectives: specific, measurable, actionable, reasonable and

timetabled
- Profits: price exceeds costs
- Return on Investment: profit required to justify investment
- Issues: profitability, long-term prosperity, market share, positioning and WTP
- Not for Profit Pricing: funds sustain activities, focuses on appeal to target market
and encourages change
- Pricing Decisions: reflects customer’s value of product, considered internal and
external factors and provides acceptable yield

Demand is the relationship between price and quantity of a product customers are WTP

- Demand Based Pricing: prices based on demand

- Elasticity of Demand: sensitivity of quantity demanded to price changes
o Elastic Demand: % change in quantity greater than % change in price
o Inelastic Demand: % change in quantity less than % change in price

Cost Based Pricing is when a percentage is added to the cost of a product in order to
determine its selling price

minimum price that covers costs that generates high sales volume
Price Floor
but may conflict with positioning
high-volume product priced near cost to attract customers to store
Price Leader
and purchase other products
high-volume produce priced below cost to attract customers to
Loss Leader
store and purchase other products
Break-Even estimates volume of sales required to cover costs
Analysis
Contribution difference between price and variable cost per unit
 Margin
effect on costs/revenue when business produces/sells 1+ units
- Cost must examine average cost and marginal cost
Margin Analysis
- Revenue must examine average revenue and marginal
revenue

Competition Based Pricing is pricing based on prices charged by competitors

- Undesirable unless seller has cost advantage through economies of scale or low-
cost production
- Price Wars from competitors matching low prices forcing weaker competitors into
market and are avoided through:
o Non-price competition
o Product differentiation
o Business loyalty

Market Types:

- Oligopoly: market dominated by a small number of large suppliers

- Monopoly: one supplier who can determine price without regard for competitors
- Perfect Competition: large number of buyers and sellers for undifferentiated
products
- Monopolistic Competition: numerous competitions whose product offers are
differentiated

Pricing for Intermediaries: organisations will choose to deal with intermediaries who can
add value to offerings

Pricing for Distribution: pricing differentials based on costs varying between distance
between buyer and seller

Psychology

- Internal Reference Price: price expected through experience

- External Reference Price: price comparison
- Product-Line Pricing: setting prices for group of products in a product line rather
than individual product
- Behaviour based on evaluation of value falling into three categories:
1. Price conscious
2. Value conscious
3. Prestige sensitive

Price Perceptions:

Odd-Even odd prices significantly cheaper than even prices attracting

attention
Reference pricing a product normally but next to a more expensive model
Multiple Unit selling as a package
Bundle selling combination of complementary products for single price
Pricing

1. (NEW) Penetration: low price to gain market hold and turnover

2. (NEW) Price Skimming: highest price and then lowering price to bring in numbers
3. (ESTABLISHED) Differential Pricing: different prices for different buyers for same
product
4. (ESTABLISHED) Promotional Pricing: combining approaches with promotions i.e.
price leader, comparison and special event

Law

- Essential services, misleading/deceptive, collusion, discrimination and

comparability/clarity
- Trade Practices Act and Fair Trading Act
- Banned: price fixing, discrimination, predatory pricing and resale price
maintenance
- Price Surveillance: ACC holds surveillance, inquiries and monitors price/cost/profit
of businesses
LECTURE 7. PROMOTION
 Explain promotion and its role in the marketing mix
 Understand the IMC approach to promotion
 Describe types of advertising and the steps in creating an ad campaign
 Role of public relations
 Use of sales promotion activities
 Nature of personal selling
 Discuss marketing communication options

Promotion is the activities that make customers, partners and society aware/attracted
to offerings

- Marketing Communication is communicating a message to the marketplace

- Objectives:
o Support marketing objectives
o Demonstrate features/benefits of a product
o Encourage trial and demand
o Increase supported by retailers
o Increase awareness and goodwill
o Build brand relationship
o Cause related marketing: Philanthropic activities tied to product

Integrated Marketing Communications is the coordination of promotional efforts to

maximise communicating effect

Promotion mix: advertising, public relations, sales promotion and personal selling

Advertising is the transmission of a paid message to mass audiences

- Benefits: reaches many people at low cost per person
- Limitations: difficult to measure effectiveness
Public is communication aimed at maintaining relationship between
Relations organisation and stakeholders.
- Must be timely, engaging, accurate and in public’s interest
- Benefits: credibility, worth of mouth, low cost combats negative
attention
- Limitation: cynicism
Sales is offers of extra value to resellers, salespeople and consumers to
Promotion increase sales
- Benefits: smooths demand when needed and rewards sales
- Limitation: ineffective when overused, can be copied and public
cynicism

Personal is personal communications to persuade purchase

Selling - Used by expensive, high involvement or industrial products
- Benefits: tailored so greater influence
- Limitations: expensive, limited reach, labour intensive and time
consuming
Integrating Using multiple promotional strategies with those with smaller budgets
Promotional relying on fewer/simpler strategies
 Mix
Elements

- Push Policy: product promoted to next institution to push goods through

marketing channel (B2B)
- Pull Policy: product promoted to create demand and pull goods through channel
(B2C)

Advertising: paid promotion of a business, product or brand to a mass audience

- Competitive Advertising: promotes features and benefits relative to competitors

- Comparative Advertising: compares products against competitors

Creating Campaign:

1. Understand environment
2. Know target market
3. Set specific objectives
4. Create message strategy
5. Allocate resources
6. Select media
7. Produce advertisement
8. Place advertisement
9. Evaluate

Public Relations: designed to build and sustain good relations between an organization
and its stakeholders

- Publicity: unpaid media exposure

- Sponsorship: paid association with event/person
- Strategies: written stakeholder communications, sponsorships, charities and
reactive to negative publicity

Sales Promotion: short-term incentives to encourage purchase

- Free samples: experience without purchase

- Premium offers: bonus for purchasing
- Loyalty Programs: reward spending
- Contests: promotes product benefits and allows market research
- Coupons: discount price for product
- Discounts
- Rebates: return of part of purchase price
- Point of Purchase Promotions: signage, display, trials and demonstrations
- Event Sponsorships

Personal Selling: using personal communication with consumers to persuade them to

buy products

- Must Include:
a. Information
b. Needs
c. Product
d. Leverage
 e. Commitment/Close
f. Following Up
- Characteristics: commitment, customer orientation, enthusiasm, persistence,
initiative, confidence, listening skills

Additional Forms:

- Ambush Marketing: presenting marketing messages at sponsored event by

unrelated competitors
- Product Placement
- Plug: media overly promotes product within a program
- Guerrilla Marketing: aggressive/unconventional approaches
- Viral Marketing
- Permission Marketing: attempts builds ongoing relationships with customers

Statutory Regulation of Advertising

- ACL Section 18 prohibitions misleading/deceptive conduct

a. Examples: comparative advertising, celebrities in advertising and
simililar/identical brand names
b. Matters: relevant target audience, message conveyed and is it a lie?

Common law

- Contract: Breaches of contract

- Law of Torts: deceit, negligence, injurious falsehood, passing off and defamation
- Right of privacy
- Right of publicity
LECTURE 8. PLACEMENT/DISTRIBUTION
 Understand how distribution channels connect producers and buyers
 Describe the activities involved in the distribution of goods
 Describe the distribution of services
 Understand the major aspects of retailing
 Explain the role of agents and brokers in the distribution channel
 Explain the role of wholesalers in marketing distribution

Channels

- Marketing Intermediaries: what forms chain between producer and end user
- Distribution Channel: group of individuals/organisations directing products from
producers to end users
a. Time Utility: available when wanted
b. Place Utility: available where wanted
c. Form Utility: customised product to needs
d. Exchange Efficiencies: transaction as economical as possible through
efficient exchange process
- Benefits: availability, location availability, customisation and efficient transactions

Distribution

1. Intensive: every suitable intermediary

2. Exclusive: single intermediary for given geographic region
3. Selective: intermediaries for chosen reason
- Place Laws prevents suppliers from imposing unreasonable restraints i.e.
exclusive dealing, territorial restraints and customer restraints

Agents are intermediaries engaged by representing buyers/sellers in negotiations in

marketing channel

- Manufacturer’s, selling’s, buying and commission agents

Brokers are intermediaries engaged with short-term/one-off basis representing with

parties in marketing channels

Wholesaling is exchanging products for resale, use as inputs or other use in a business

- Selling to retailers, managing inventory, negotiating with producers and providing

cash flow for producers and credit for retailers
- Merchant Wholesalers: buy merchandise in quantities and redistribute it to
retailers
a. Full service
b. Limited service
- Manufacturer’s wholesalers: wholesalers owned by producer

Supply Chain Management is managing channels with partnerships to reduce costs,

eliminate redundant processes and develop new ways to deliver value to customers

- Channel Captain/Channel Power: one member of channel has power over others

Channel Integration
 - Horizontal Channel Integration: bringing same level of operation organisations
under single management structure
- Vertical Channel Integration: bringing different stages of channel under single
management structure
- Vertical Marketing System: channel where all stages are under single
management structure
- Franchising: one party licenses business model to another party

Distribution of Goods

Order Processing: all activities involved in managing information required to receive,

handle and fill a sales order aiming for cost minimisation and customer satisfaction

Inventory Management is managing stock to ensure availability with low holding costs

- Order lead time, Usage rate and Safety stock

- JIT: holding stock which is about to be used/sold

Warehousing: hold surplus and safe stock but under pressure from internet,
customisation demand and speed of innovation

- Distribution Centre: warehouse that moves products

- Cross Docking: expediting goods from receipt to shopping
- Materials Handling: physical good handling

Transportation

- Freight Forwarders: businesses that combine cargo from different business for
efficiency
- Road, Rail, Sea, Air and Pipeline Transportation
- E-Distribution: advanced telecommunication technology in distribution process
- Radio Frequency Identification: tags enabling movement to be tracked

Distribution of Services

Based on Physical Inputs, Delivery Infrastructure and Scheduling

- Retailing has 2 aspects to its strategy:

o Must decide what approach is suitable for products
o Location and Positioning
 Location: geographic area, proximity to
competitors/complementary retailers, access to transport
 Positioning: identifying gap and targeting it whilst having a strong
store image
o Benefits: time utility, place utility, form utility, advice and personal service
and exchange efficiencies
o Types: general merchandise, specialty retailers, wheel of retailing (low
cost/price  high cost/price), online retailing and mobile e-commerce

Direct Marketing

- Non-store retailing promoting and selling via mail, telephone or web

- Door to Door: direct selling where customers identified, and appointment is made’
- Automatic vending: machines dispensing product
LECTURE 9. SERVICES, SOCIAL & NOT FOR PROFIT MARKETING
Services:

 Explain the importance of the service sector

 Describe an effective marketing mix based on the unique characteristics
of services
 Discuss challenges in the marketing of services

Services are activities, performances or benefits offered for sale without tangible
exchange

- Delivering a product involving human, intellectual or mechanical activity adding

value to the product
- Generates 70-% of AUS and NZ income and is largest employment sector
o Increased demand during economic growth & technological change has
created more opportunities i.e. eBay
o Intangible: Increased customer uncertainty from intangibility so use
tangible cues, guarantees/testimonials and time engaging with client
o Inseparability: Time bound. Produced and consumed at the same time.
o Heterogeneity: must try to keep service same in quality through service
delivery systems, manage customer expectations, invest in training and
select customers
o Perishability: inability to store so managed by managing demand over
time, stimulating/restricting demand and increasing/decreasing supply
capacity

People create and deliver service influencing value through direct involvement

- Choose that are technically competent, deliver high standards of service and
promote products through personal selling

Process is the systems/procedures that create, communicate, deliver and exchange an

offering

- Functional expectation: expectation

of technical delivery
- Customer Service expectation:
service experience

Physical Evidence is the tangible cues

that evaluate service quality before
purchase

- Design, floor layout, furniture, smell

i.e.

Service Marketing Challenges

1. Achieving sustainable advantage

 2. Managing profitable customer relations
3. Delivering consistently high customer service levels
- Managing differentiation: services cannot be protected by legal patents and can
be replicated by competitors
- Churn is the rate of customer turnover
- Search qualities can be evaluated prior to
purchase
- Experience qualities are evaluated
during/after service delivery
- Manage:
o Service quality standards
o Do not over promise
o Ensure service recovery
o Measure employee performance

Commercial Marketing is concerned with profit

and immediate reward

Social & Not for Profit Marketing:

 What is social marketing

 Different streams of social marketing
 Not for Profit Marketing

Social Marketing is about changing/maintaining behaviours to achieve social good

- Translating educational messages/behavioural change into concepts/products for

population
- Behaviour change is the baseline measurement
- Requires pricing, sensory appeal, product bundling and packaging

Downstre predominant focusing on individual behaviour change

am
Mid- focuses on community behaviour change
Stream
Upstream focuses on changing the counteracting environment (change context 
change behaviour) and can focus on policy

Not For Profit Marketing is activities designed to achieve objectives other than profit

1. Social Marketing
2. Activities of NFP organisations
LECTURE 10. DIGITAL AND INTERNATIONAL MARKETING
Digital Marketing

 Identify digital marketing activities

 Explain the unique characteristics of digital marketing
 Explain specific digital marketing methods
 Appreciate ethical and legal issues relating to digital marketing
 Discuss the role of digital marketing in an overall marketing strategy

Digital Marketing is activities around planning/implementing marketing in digital

environment

Consumer Organisation
+ - + -
Convenience No physical Access global Increased
presence market competition
Lack of personal Reduce cost TM can have low
service wifi access
Fraud Concern over
security

Characteristics of Marketing Methods

Profiling is learning about existing/potential customers prior to purchase through:

- Registration, cookies, competitions requiring info and information stored on

database

Interaction is the exchange of info between marketer and customer

Control is ability of customer to determine the interaction with marketing message and
influence its content/presentation

- Push: Marketer to customer

- Pull: customer seeks marketer

Accessibility/Comparability: Consumers can research more about products allowing

comparison but also allows choice of transaction type

Digitalisation is delivering product as info or to present info about product digitally

Digital Marketing Methods

1. Banner advertisements
2. Pop up advertisements
3. Brochure sites
4. Social Media: communities where members contribute (loyalty) but lack of control
5. Viral Marketing: using social networks to spread message
6. Search Engines: ranking in results and paid advertising to similar searches
7. Mobile Marketing: email/SMS/MMS and apps
8. E-Commerce: marketing over internet, mobile or telecommunications
Ethical and Legal Issues

Contract Issues:

- E-Commerce and Agency

- Consumer Protection
- Legal Enforcement

Intellectual Property:

- Copyright, Trademark and Patent

- Domain Names

Specific Issues:

- Cyberstuffing: meta tags in website

- Deep Hyperlinking: linking directly to contents of another website
- SPAM: unsolicited commercial electronic messages

Downsides:

1. Tech Burnout: people clocking out after 9-5 day

2. Legal Enforcement: difficult to determine/apply laws

Role of Digital Marketing

- TM: users still divided into segment based on characteristics

- Customer Relationship Management: using info to produce marketing experience
bidding for long-term relationships

Marketing Mix:

1. Product: completely digitalised are suitable

2. Price: online allows for comparison
3. Distribution: internet and telecommunication
4. Promotion: internet for all competitors

Electronic Business:

- Electronic Data Interchange: exchange between partners of data

- Intranet: internal website for staff
- Extranet: private website for sharing information securely

International Marketing

 Understand the concept of globalisation and its consequences for

organisations
 Discuss the PESTL forces at play in international markets
  Understand why and how organisations internationalise
 Explain how marketers create, communicate and deliver a product in an
international market

Globalisation is when markets becomes increasingly interconnected and similar

through barriers broken down creating interconnections in trade, finance, living
standards and security

- Standardisation: uniform marketing mix across markets with minor changes to

meet local condition
- Customisation: tailored marketing mix for specific characteristics

PESTL Forces

Political alliances/agreements and factors within target market country

- Alliances  streamline paperwork, reduce trade and created
preferred trade zones
- Bilateral (2 countries) or Multilateral (2+ countries)
- Democratic system sees change of government and policies
where dictatorship sees infrequent change
Economic global economy and economies of specific countries
- Level of income, exchange rates, credit availability and quality of
infrastructure
Sociocultur Awareness of different cultural and societal meanings
al
Technologi - Cheap communication = transfer of info between countries
cal - Markets have different technological infrastructure
Legal - Tariffs, Quotas and Embargos

Why and How to Internationalise

1. More potential customers that are realistic options with communication/transport

tech
2. Increased free trading
3. Economies of Scale

Exporting: sale of products into foreign market and can be direct or indirect

Contractual Agreements:

- Licensing: business (licensee) manufactures/sells products to country business

(licensor) and pays commission on sales
- Franchising: business (franchisee) pays fee to use marketing/business plan of
business (franchisor)

Contractual Manufacturing: business pays foreign business to produce product and

market it under business’ name

Strategic Alliance: cooperative arrangement between businesses

Joint Venture: forming new business with existing business in target foreign market

Direct Investment:

- Direct Investment: outright ownership

 - Greenfield Operation: new business established in foreign market
- Multinational corporation: businesses owned in numerous foreign countries

Born Global: viewing world as its market and can offer intellectual property/data services,
high-end products or unique/desirable products

Product

- Respond to changing preferences, income levels and sociocultural differences

Promotion

- Language barriers, advertising regulations, different media infrastructure and

differences in market maturity

Place

- Transport over distance, exchange rate fluctuations and using intermediaries to

facilitate distribution

Pricing

- Must be sensitive to local market conditions and reflect costs relying on market
research
- Influenced by: exchange rate, trade barriers, regulations, competition and goals
LECTURE 11. DATA AND ANALYTICS
 Understand the concept of data-driven marketing
 Understand the value of big data
 Understand the data analytic techniques used in marketing
 Discuss some of the issues facing analytics in marketing

Big Data: use of large amounts of data to yield accurate insights and make informed
decisions

Data Analytics is turning large quantities of data into meaningful information

Data Driven Marketing: insights/decisions arising from analysis of data from/about

consumers

Marketers must support their tuition with facts & organisations must have the right
people/tools

- People: statistical software training, understand business process & how data was
obtained
- Tools: help obtain, cleanse, analyse and present the data
- Data now a monetised asset and isn’t being shared

Data: collection of neutral facts

- Structured or unstructured

Analytics: organisation of facts into meaningful information

Dark Data: data that will never be analysed

Data Driven Results allow educated, actionable & profitable decisions but has problems:

- Results not communicated effectively

- Consumers not enthusiastic about data use
- Using data requires change
- Over reliance on data

Big Data is when size becomes a problem

- Important to look at useful data over big data

- Seven Vs of data: volume, velocity, variety, validity, veracity, value & visualisation

Internet of Things (IoT): describes that all products/services collect data in some form

- Allows us to see how features of a product are being used in real time
- Scanner, Web and Mobile Data
- Social Media Data:
o online focus groups (secondary data)
o Raw data: shares, impressions, url, browser type etc.
 - Understanding and Obtaining Data
o Data must have context (where and why)
o Data Scientist: specialist analyst who focus on statistics, programming and
business skills
o Aim to have a fully automated data scientist
 Structured Query Language (SQL): internal MIS system
 Cleans data using series of simple statements
 Data kept in remote location
o Issues:
 Too much data to interpret
 Spurious Correlation: variables don’t correlate
 Missing data
 Incorrect data
- Computing Resources are an issue when big data overwhelms tech capacity
o Issues: physical hardware capacity and software capacity
- Data Governance: Chief Data Officer (CDO) oversees data access, warehouses
and marts are designed to be used for analytics

Data Analytics in Marketing: practise of measuring, managing and analysing

marketing performance

1. Descriptive: simplest explaining what has happened

2. Predictive: what might happen in future
3. Prescriptive: ways to advantage out of predicted outcome
- Obtaining customer data from analytics: Consumers hesitant to share data unless
reliability, anonymity and a return
- Marketing Analytics
o Must have business case, appropriate data and ability to deploy analytics
situation
o Popular method for implementing analytics project is ‘Cross Industry
process for data mining’
o Data should never be isolated
o Main focus is data reduction
o Used for:
 Customer acquisition, segmentation & churning
 Customer Satisfaction
 Recommender and Market Basket Analysis
 A/B Testing
 Internal Marketing Metrics
- Machine Learning involves studying algorithms that can extract information
automatically
o Machine Learning: predictions & (un)supervised learning
o Statistics: sample, population and hypotheses

Issues in Analytics

- Over reliance on data and cost-savings

- Fear of personal data being misused
- Opportunity costs
- Not ethical to analyse data
- Data Snooping: analyst picks model to confirm what they want to prove
- Data being hacked