1. Marketing Management Philosophy
Marketing management philosophy refers to the basic guiding ideology of an enterprise for its marketing activities and management. The core of the management philosophy is to correctly handle the relationship between the enterprise, customers and society.
two, The evolution of marketing management philosophy
The marketing management philosophy of an enterprise is determined by the objective environment of the enterprise in a specific period. It is constantly changing with the changes in the social, economic and market environment and the accumulation of enterprise operating experience. The evolution is divided into:
2.1production concept
view:Consumers always prefer products that are readily available and affordable
enterprise:The business focus and central task of business management are to strive to improve production efficiency, increase output, and reduce costs.
condition:Products are in short supply and a certain product has good market prospects
Features:Whatever the enterprise produces, it sells. Production determines sales, that is, production determines sales.
2.2product concept
view:Consumers like products with high quality, multiple functions and certain features, and are willing to pay higher prices for them
enterprise:Committed to improving product quality, producing high-quality products, and constantly striving for excellence
Phenomenon:Companies are busy inventing, improving and manufacturing high-quality products, but the products often cannot find sales and markets, leading to sales myopia.
Features:Sales based on production
2.3Selling concepts
view:Consumers usually have a kind of purchasing inertia and resistance. If left to their own devices, consumers will not purchase large quantities of the company's products.
enterprise:Aggressive marketing and heavy promotion
condition:Product surplus, market oversupply, non-demandable products, non-profit sector
Features:Consumers will buy whatever the enterprise sells. It is still enterprise-centered and production determines sales.
2.4marketing concept
view:All plans and planning of the enterprise should be consumer-centered, correctly determine the needs and desires of the target market, and provide the satisfaction required by the target market more effectively than competitors.
Features:What customers need, what the company produces, emphasize consumer-centeredness, determine production based on sales, and implement overall marketing, that is, implement a marketing model that focuses on products, prices, channels, and promotions.
Four pillars:Target market, overall marketing, customer satisfaction, profitability
2.5social marketing concept
view:The task of business management is to determine the needs, desires and interests of the target market, to satisfy consumers more effectively than competitors, and to maintain and enhance consumer and social welfare.
Factors to consider:The needs and desires of consumers, the long-term interests of consumers and society, and the marketing benefits of enterprises
three, macro marketing environment
The macro-management marketing environment refers to the main social forces that are uncontrollable by the enterprise and can bring market opportunities and environmental threats to the enterprise's marketing activities.
3.1Demographic environment
Total population, population structure, geographical distribution, family composition
3.2economic environment
3.2.1income:GDP per capita, personal income of consumers
3.2.2expenditure:Engel coefficient (roughly divided: above 59% becomes absolute poverty, 50%-59% becomes average level, 40%-50% becomes moderately prosperous level, 30%-40% becomes wealthy level, and below 30% becomes the richest level)
3.2.3Consumer Savings and Credit
3.3natural environment
3.4political and legal environment
3.5science and technology environment
3.6social and cultural environment
Customs, religious beliefs, aesthetic concepts
Four, Find new market opportunities
4.1Market Penetration:Consider further accelerating market penetration without changing existing products and existing markets. Expand sales of existing products in existing markets
4.2Market development:Market development: finding new market segments for existing products
4.3Product development:Enterprises provide new products or improved products for existing markets to meet new needs of existing markets
4.4Diversified development:When an enterprise cannot find attractive market opportunities in its industry or other industries are attractive, the enterprise can develop outside its industry.
5. Factors affecting consumer purchasing behavior
5.1cultural factors
Cultural factors have the most extensive and far-reaching impact on consumer behavior and are an important factor causing differences in consumer demand in different regions and classes.
5.1.1cultural characteristics
Culture refers to the sum of material wealth and spiritual wealth created by human beings in the process of social history. The influence of culture on people's behavior has the following characteristics: it has obvious regional attributes, has strong traditional attributes, and has indirect influence.
5.1.2cultural factors content
5.1.2.1 Culture and subculture: In each culture, there are often many groups with cultural identity within a certain range. They are called subculture groups, including international subculture groups, ethnic subculture groups, and regional subculture groups.
5.1.2.2 Social class
5.2social factors
5.2.1Related groups:Relevant groups, also known as reference groups, refer to individuals or groups that can directly or indirectly influence consumers’ consumption attitudes, values and purchasing behaviors.
5.2.1.1Related group classification
According to the closeness of contact with consumers, relevant groups are divided into primary groups and secondary groups. According to whether there is a more formal organization, they are divided into formal groups and informal groups.
5.2.2family:The influence of family on consumer purchasing behavior is mainly reflected in the following three aspects: family authority center, family size, and family life cycle
5.2.3role and status
5.3personal factors
Age and gender, occupation and education, lifestyle, personality and self-concept
5.4psychological factors
5.4.1motivation:Emotional motivation, rational motivation, patronage motivation
5.4.2perception:A comprehensive reflection of the various parts of various attributes of things and their interrelationships
5.4.2.1 Selective attention: Among many kinds of information, people usually pay more attention to stimuli that they expect, that are relevant to their current needs, and that are significantly different from normal situations.
5.4.2.2 Selective distortion: People distort information to fit their original understanding and then accept it
5.4.2.3 Selective retention: People tend to remember information that is consistent with their attitude and the New Year, and forget information that is inconsistent with their own attitude and the New Year.
5.4.3study:Consumer learning occurs through the interplay of drivers, stimuli, cues, reflections and reinforcements
5.4.4beliefs and attitudes
6. Types of consumer purchasing behavior
6.1Complex buying behavior:Regarding the purchasing behavior of large durable consumer goods with low consumer awareness, high prices and infrequent purchase frequency
6.2Seek diversified purchasing behavior:Purchasing behavior with low consumer involvement and large product differences between different brands
6.3Resolve uncoordinated purchasing behavior:There is not much difference between products of different brands, consumers do not buy them often, and there are certain risks when buying them.
6.4Habitual buying behavior:A purchasing behavior in which consumers have low involvement and there is not much difference between the products purchased from different brands.
7. Stages of consumer purchasing decision-making process
7.1Confirm need
7.2Gather information:Personal sources, commercial sources, public sources, experience sources
7.3Evaluation plan:Product attributes, attribute weights, utility functions, evaluation models
7.4Purchasing decision:Attitudes of others, unexpected changes, purchasing risks
7.5After-sales behavior
8. Market leader strategy
The so-called market leader refers to the enterprise with the highest market share in the market of related products.
8.1Expand total market demand:Develop new users, develop new uses for products, and expand product usage
8.2Protect market share:Product innovation, improved service levels and reduced costs. Six defensive strategies
8.2.1 Position defense: Establish a defense line around the existing position. This is a static passive defense and the basic form of defense.
8.2.2 Flank defense: Defend your own positions, especially weak flank positions, and establish certain auxiliary bases as defensive positions, or as counterattack bases when necessary.
8.2.3 Preemptive defense: An active defense strategy, preemptively attacking the local area before launching an attack on itself.
8.2.4 Counterattack defense: When attacked, you cannot passively respond, but should actively counterattack.
8.2.5 Movement defense: Not only must we actively defend existing positions, but we must also expand to new positions that can serve as the focus of future defense and offense. This gives enterprises more room for maneuver strategically.
8.2.6 Contraction Defense: Give up some weak markets and concentrate on troubled market positions
8.3Expand market share
Consider three factors:Possibility of antitrust litigation, marketing costs, marketing mix strategy
9. Market Challenger Strategy
9.1Clarify strategic goals and competitors:Supply market leaders, attack companies of similar size, attack regional small businesses
9.2Choose an offensive strategy
9.2.1Frontal attack:The challenger concentrates its forces to launch an attack on the opponent's main market, targeting the enemy's strengths rather than its weaknesses.
9.2.2Flanking attack:Concentrate superior forces to attack the opponent's weaknesses. Sometimes you can also feign a frontal attack to contain its defensive forces, and then launch a fierce attack on its flanks or rear.
9.2.3Encirclement attack:An all-round, large-scale attack, launching an all-out attack in several displays to force the opponent to defend simultaneously on the front, flanks and rear
9.2.4Attack in a roundabout way:Indirect attack avoids the opponent's existing positions and attacks in a roundabout way. There are three methods: developing unrelated products, entering new markets with current products to achieve market diversification, and replacing existing products through technological innovation and product development.
9.2.5Guerrilla attack:It is suitable for smaller and weaker enterprises. The purpose is to harass the opponent by launching small-scale and intermittent attacks in different areas of the opponent. It refers to being exhausted.
10. Division of purposes of marketing research
| project | exploratory research | descriptive survey | causal investigation |
| Research purpose | Discover what problems exist | Make it clear what the problem is | Discover the cause of the problem |
| Applicable method | observation method | inquiry method | experimental method |
| Applicable stage | preliminary investigation | formal investigation | Follow-up and in-depth investigation |
11. Steps of marketing research
11.1Clarify the research topic
11.1.1clarify the problem
11.1.2Situation analysis:Marketing researchers use their own knowledge and experience to conduct preliminary analysis based on the information they already have.
11.1.3Preliminary research:The marketing researchers will talk to some people who are related to the research questions and familiar with the situation to further understand the situation and accumulate information.
11.2Develop research plan
What to study, purpose, object, topic, time, scope, method, budget
11.3Collect research information
11.3.1Source
11.3.2Research methods
| project | inquiry method | observation method | experimental method |
| advantage | Flexible and convenient research methods Full and in-depth research questions | The research method is direct and effective Research results are objective and accurate | Verify cause and effect discover inner rules |
| shortcoming | Long cycle and difficult to organize | Focus on appearance and lack of depth | Long time and expensive |
11.4Analyze research information
11.5Submit report
12. Standards for market segmentation
12.1Criteria for consumer market segmentation
12.1.1Demographic factors:Segmentation by age, segmentation by gender, segmentation by income, segmentation by ethnicity, segmentation by occupation and education level
12.1.2Geographical factors:Segmented by geography, segmented by population size and density, segmented by climate
12.1.3Psychological factors:Segmented by social class, segmented by lifestyle
12.1.4Behavioral factors:Segmented by purchase timing, segmented by pursuit of benefits, segmented by user status, segmented by usage quantity, segmented by brand loyalty, segmented by preparation stage of purchase
12.2Producer market segmentation criteria
Segmented by end user requirements, segmented by user size, segmented by user geography
13. Target market strategy
13.1Undifferentiated target marketing strategy
Concept: An enterprise regards the entire market as its target market, launches a product, and implements a marketing mix strategy to meet a certain common need of as many consumers as possible in the entire market.
Behavior: Focus on the commonality or homogeneity of customer needs, ignore the differences in customer needs, do not segment the market, and seek to meet the common needs of most customers.
Advantages: low cost, good economy
Disadvantages: It is difficult to meet the personalized needs of customers, which can easily lead to fierce competition and market saturation.
Applicable to: Products that a small number of consumers have common needs and have little difference
13.2Differentiated Target Marketing Strategy
Concept: Select multiple market segments as the target market of the enterprise, and design different products according to the different characteristics of each market segment, and use different marketing mix strategies to meet the different needs of consumers in multiple market segments.
Advantages: Better meet the diverse needs of consumers and increase overall sales; to a certain extent, it can reduce investment risks and operating risks
Disadvantages: increased costs; unable to use resources intensively
Applicable to: Heterogeneous markets and strong enterprises
13.3Focused target market strategy
Concept: Select one or a few market segments or a part of a market segment as the target market, concentrate all the resources of the enterprise to serve it, and implement specialized production and marketing
Advantages: It facilitates enterprises to deeply understand the changes in market demand and can give full play to the advantages of enterprises; it is highly targeted and can save production costs and marketing expenses; it has a high degree of specialization; it can meet the special needs of individual market segments, which is conducive to the enterprise's products gaining a dominant position in market segments and increasing the company's market share and popularity.
Disadvantages: The target market is too narrow, and the potential for market development is not great; the company's target market is too concentrated and narrow, and the products are too specialized. Once the market changes, it will bring great threats to the company.
Applicable to: Products with short production cycles and large demand fluctuations or small and medium-sized enterprises with limited resources and weak strength
14. Overall product concept
14.1Product concept:
Narrow sense: tangible items created by labor that have value and use value and can meet human needs
Broadly speaking: all tangible items and intangible services that can meet the specific needs and desires of consumers or users through exchange
14.2Overall product concept:
Connect consumer needs and product competition among enterprises to study the product as a whole. The overall product concept includes five levels of content: core product, form product, expected product, extended product and potential product.
14.2.1Core products:The basic utility or benefit provided by consumers is what consumers really want to buy, and is the most basic and important content in the overall concept of the product.
14.2.2Form products:Product ontology is the various specific product forms through which the core product is realized, and is the appearance of the product body provided to the market.
14.2.3Expected products:A set of attributes and conditions closely related to the product that consumers expect when purchasing a product
14.2.4Extended products:The sum of various additional services and benefits that consumers receive when purchasing formal products and desired products.
14.2.5Potential products:All additional parts and information conversion parts that may eventually be realized by existing products, or potential products that can be developed in the future related to existing products.
15. Concept and stages of product life cycle
15.1The concept of product life cycle:Like other products, a product goes through a process of growth, growth, maturity, and decline from the time it is put on the market to the time it is launched. Marketing describes this process of a product on the market as a product life cycle.
15.2Various stages and characteristics of product life cycle
15.2.1Introductory period:In the initial sales stage when a new product has just been put into the market, the characteristic product design has not yet been finalized; consumers are not familiar with the product; the sales network has not been fully and effectively established; the company has little vitality; there are few producers of similar products and there is little competition.
15.2.2Growth period:A period when products are quickly accepted by customers in the market and sales and profits grow rapidly. Features: The product has been characterized; consumers are already familiar with the new record; ideal sales channels have been established; due to sales growth, costs have dropped and profits have risen rapidly; market competition has begun to intensify
15.2.3Maturity period:A period when product sales become saturated and begin to slowly decline, and market competition is very fierce. Characteristics: Sales in the growth and maturity stage are saturated; the market is saturated; sales levels begin to decline slowly
15.2.4Decline period:Product sales dropped, and the product began to be gradually eliminated from the market. Characteristics: Product demand, sales and profits decline rapidly; new products and substitutes appear on the market; most competitors are forced to withdraw from the market
15.3Atypical product life cycle
15.3.1Recycling life cycle:After product sales enter the recession period, they enter the second growth period due to various factors.
15.3.2Multi-cycle life cycle:By formulating and implementing correct marketing strategies, companies can continuously reach new climaxes in product sales.
15.3.3Discontinuous cycle life cycle:Products quickly occupy the market for a period of time, then quickly exit the market, and then start a new cycle after a period of time.
16. Factors affecting corporate pricing
16.1Internal factors affecting corporate pricing
16.1.1Pricing target:
16.1.1.1 Pricing objectives to maintain survival: Pricing objectives for an enterprise to survive, maintain operations and maintain inventory operations
16.1.1.2 Pricing goal of maximizing profits for the current period: The pricing goal of an enterprise to maximize profits for the current period.
16.1.1.3 Pricing objectives to maintain and expand market share: Continuously adjust prices based on competitors’ price levels. Commonly used low price strategies
16.1.1.4 Pricing objectives for product quality optimization: The company maintains its image as a leader in product quality and sets high prices. Brand-name products adopt this pricing target
16.1.1.5 Pricing target to maintain price stability: a necessary condition for obtaining a certain target income
16.1.1.6 Pricing objectives to cope with market competition: Enterprises with the pricing objective of coping with competition collect extensive data, analyze, and compare when setting prices, and then formulate prices that are conducive to coping with competition.
16.1.1.7 Maintain good distribution channel pricing objectives: For companies that need intermediaries to sell products, this is one of the important conditions for obtaining good operating benefits.
16.1.2Product cost:Basis of pricing
16.1.3Product heterogeneity:The company's products have unique characteristics and special advantages that competitors do not have, thus forming a significant difference from competitors' products.
16.1.4Enterprise's sales ability
16.2External factors affecting corporate pricing
16.2.1Market nature:
Perfect competition market, monopolistic competition market, oligopoly market, perfect monopoly
16.2.2Consumer demand:There are differences in consumers' ability to pay at the right time, the intensity of consumer demand for corporate products, and the level of consumer demand.
16.2.3government power
16.2.4competitor power
16.2.5Other factors:Consumer psychology and habits, company or product image, socioeconomic status
17. Demand-oriented pricing method
17.1cognitive value pricing
Companies determine prices based on consumers’ feelings and understanding of product value.
17.2demand differential pricing
Enterprises set different prices based on the different intensity of consumer demand for the same product.
17.2.1Demand differential pricing method:Consumer-based differential pricing, location-based differential pricing, time-based differential pricing, product-based differential pricing
17.2.2Conditions for application of demand differential pricing method
17.2.2.1 From the consumer side, consumers should have obvious differences in demand for products. Products have different demand elasticities. The market can be segmented. Products will not cause consumer disgust due to differential pricing.
17.2.2.2 From an enterprise perspective, the total revenue of an enterprise with different product prices is higher than the income with the same price, because differential pricing of products is not the purpose, but a means to obtain higher profits, so enterprises must conduct supply and demand, cost and profit analysis.
17.2.2.3 In terms of products, each market is segmented. Products from the low-price market cannot be transferred to the high-price market. This phenomenon may be caused by transportation conditions or the characteristics of the product itself.
17.2.2.4 From the perspective of competition, competitors are unable to compete with the company on product prices in the high-price market. It may be that the company has monopolized the market and it is extremely difficult for competitors to enter; it may also be that the elasticity of product demand is low; or it may be that consumers have developed a strong preference for this unique product.
17.3reverse pricing
Enterprises set their pricing goals to cope with competition or prevent competition, and use the prices of competitors in the market as the main basis for setting prices for similar products of the enterprise.
17.3.1Market-based pricing method:The average remuneration obtained by keeping the price of the company's products at the average price level of similar products in the market
17.3.2Competitive price pricing method:Determine the price based on the actual situation of the company's products and the differences between the products of competitors
17.3.3Tender competition law:In a bidding transaction, the bidder makes a quotation according to the regulations and requirements of the bidding party.
18. New product pricing strategy
18.1Skimming Pricing:Set the price of a new product higher at the beginning of its launch
Advantages: Establishing the image of the company's famous brand products, helping the company take the initiative to adjust prices, and the supply of key products exceeds demand.
Disadvantages: It is not conducive to market development, and it is not conducive to occupying and stabilizing the market; high prices will lead to the influx of a large number of competitors; it is easy to cause public opposition and consumer boycotts
18.2Penetration Pricing:Set the price of a new product low at the beginning of its launch
18.3Satisfied with pricing:Enterprises try to reduce the role of product price in marketing methods and focus on other methods that are more beneficial or cost-effective in the product market.
19. Promotion and Promotional Combination
19.1The role of promotion:Provide information and clear channels; induce consumption and expand sales; highlight features and strengthen advantages; improve reputation and stabilize the market
19.2Factors influencing promotional mix
19.2.1Promotional objectives
19.2.2product factors
19.2.2.1 Nature of the product
19.2.2.2 Product life cycle
| product life cycle | Promotional goals and focus | Promotional mix |
| investment period | Build product awareness | Introductory advertising, personal selling |
| growth period | Increase market visibility and share | Image-building advertising, etc. |
| mature stage | Improve product reputation, maintain and expand market share | Image building and promotional advertising, public relations, supplemented by business promotion |
| recession period | Maintain trust and preference, sell in large quantities | Business promotion, reminder advertising |
19.2.3Promotional strategy
19.2.3.1 Push strategy: Use personal selling to introduce products to the market
19.2.3.2 Pull strategy: Use non-personal selling methods to draw consumers over and create demand for the company’s products to expand sales.
19.2.4Market characteristics
19.2.5Promotional budget
20. Personal Selling Strategy
20.1Characteristics of personal selling:The two-way nature of information transmission; the two-way nature of marketing purposes; the flexibility of the sales process; the long-term nature of writing
20.2Disadvantages of personal selling:Large expenditures and high costs; high requirements on sales personnel
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Original author:Jake Tao,source:"The Essence of Marketing Examination Points"
