Lecture 2 - Marketing
Lecture 2 - Marketing
Lecture 2 - Marketing
Lecture 2
Sept. 9, 2021
Tatia Zhorzholiani
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Marketing
• Marketing is the action or business of promoting and selling products or
services, including market research and advertising.
• The base of marketing is the so-called marketing mix. It includes four P’s:
product, price, placement, and promotion.
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Product
• There are three pricing options the company may take: above, with or below
the prices that its competitors are charging.
• For example, if the average price for blue jeans is $ 50, a company that charges
$ 50 - has priced with the market; a company that charges $ 47 - has priced
below the market; and a company that charged $ 53 - has priced above the
market.
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Promotion
• There are two major ways in which promotion occurs: through personal selling,
as in a store; and through advertising, as on TV.
media.
• All marketing activities must be oriented toward creating and sustaining
satisfying exchanges. Both the buyer and the seller must be satisfied.
• The first should be satisfied with goods, services or ideas obtained in the exchange.
• The seller should receive something of value, usually financial reward.
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Marketing Research: Key Players
• The company: All the departments within a company (e.g. production, finance,
personnel) have an impact on the marketing department’s plans and actions.
• The suppliers: Changes in the supplier environment, such as prices and availability of
raw materials, have a considerable impact on a company’s marketing operations.
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The Decoy Effect
• The decoy effect is a phenomenon whereby consumers will tend to have a specific
change in preferences between two options, when also presented a third option that is
asymmetrically dominated.
• In simple words, when there are only two options, consumers will tend to make decisions
according to their personal preferences.
• But when consumers are offered another strategical decoy option, they will be more likely to
choose the more expensive of the two original options.
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The Decoy Effect
• The decoy effect is a phenomenon whereby consumers will tend to have a specific
change in preferences between two options, when also presented a third option that is
asymmetrically dominated.
• In simple words, when there are only two options, consumers will tend to make decisions
according to their personal preferences.
• But when consumers are offered another strategical decoy option, they will be more likely to
choose the more expensive of the two original options.
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The Decoy Effect
• The decoy effect is a phenomenon whereby consumers will tend to have a specific
change in preferences between two options, when also presented a third option that is
asymmetrically dominated.
• In simple words, when there are only two options, consumers will tend to make decisions
according to their personal preferences.
• But when consumers are offered another strategical decoy option, they will be more likely to
choose the more expensive of the two original options.
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The Decoy Effect
• The decoy effect is a phenomenon whereby consumers will tend to have a specific
change in preferences between two options, when also presented a third option that is
asymmetrically dominated.
• In simple words, when there are only two options, consumers will tend to make decisions
according to their personal preferences.
• But when consumers are offered another strategical decoy option, they will be more likely to
choose the more expensive of the two original options.
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This had a good response in western countries. Now, the company planned to extend the same to
Arabic countries.
But in Arabic countries, the campaign was super flop and affected sales of Coca Cola.
Do you know what could be the reason?
• You are at the party & your friend goes to a girl, pointing at you and tells her: “He's very
rich, marry him... " >>> That's Advertising.
• Girl walks to you & says: “you are rich, can u marry me?” >>> That's Brand Recognition.
• You say: “I m very rich, marry me” & she slaps you. >>> That's Customer Feedback.
• You say: “I’m very rich, marry me.” & she introduces you to her husband. >>> That's
Demand & Supply Gap.
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• Before you say: “I m rich, marry me”, your wife arrives. >>> That's Restriction from
Entering New Market.
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