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Marketing
the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. TERM 2
the marketing mix: the 4 Ps
DEFINITION 2
- product- creating and offering - promotion- communicating - price- exchange - place- delivering TERM 3
Value
DEFINITION 3 benefits received-(price+hassle) determined by customers in recognizing the importance of the customer and value, market oriented companies employ the marketing concept. the benefits buyers receive from that meet their needs. value is what the customer gets by purchasing and consuming a companys offering. hassle the time and effort the consumer puts into the shopping process TERM 4
2 kinds of users
DEFINITION 4 users of our product-Heavy half, light Half - non users of our product TERM 5
Marketing concept a philosophy
DEFINITION 5 Every employee in the company-at a profit- is focused on serving the customer. Not always right but customer should be number 1.
need vs. want
needsstate of felt deprivation
- physicalfood, clothing, shelter, safety 2. socialbelonging, affection 3. individuallearning, knowledge, self-expression wantsthe form that a human need takes, as shaped by culture and individual personality needs provide functional satisfaction while wants provide psychological satisfaction TERM 7
people satisfy needs/wants with what
products?
DEFINITION 7 i. goods ii. services iii. ideas iv. people v. organizations TERM 8
The four concepts are
DEFINITION 8 Production Concept: "if we build it, they will come", customers favor products that are available and highly affordableSales/Selling concept: [selling what is made], customers will buy products only if the company used heavy promotional efforts and aggressive sales techniquesMarketing Concept [make what can be sold] focuses on the needs/wants of target markets; deliver more satisfaction then other companiesSocietal Marketing Concept: focuses on needs/wants of target markets and delivering superior value which improves customers and society's well being TERM 9
value era
DEFINITION 9
- time when companies emphasize creating value for customers. TERM 10
- One-to-one era:
DEFINITION 10 time when the way to compete is to build relationships with customers one at a time and seek to service each customers needs individually
Who does marketing?
profit:Walmart, P&G, Local businessesnon-profits:charities, schools, hospitals, government.individuals: everybody TERM 17
Profit companies
DEFINITION 17 -mcdonalds Procter&gamble(Crest tooth paste) and Walmart do marketing. -for-profit companies can be defined by the nature of their customers. -a b2c company sells products to be used by consumers like you while b2b company sells products to be used within another companys operations, as well as by government agencies and entities. - other way to categorize companies that engage in marketing is by the functions they fulfill. p&g is a manufacture, Walmart is a retailer, and grocery supply company is a wholesaler of grocery items and buys from companies like p&g in order to sell to small convenience store chains.Retailer buys from wholesaler and sells to customer. TERM 18
B2C B2B MSRP EDLP
DEFINITION 18 B2C= business to consumer B2B= business to business MSRP= manufacture suggested retail price EDLP= every day low prices. created by Walmart TERM 19
The marketing plan
DEFINITION 19
- It is the strategy from implementing the components or marketing: creating, communicating, delivering, and exchanging value. - marketing strategist use the corporate strategy and mission and combine that with and understanding of the market to develop the companys marketing plan. TERM 20
Strategic planning
DEFINITION 20 managerial process of creating and maintaining fit between the organizations objectives and resources and the evolving market the process of determining an organizations primary objectives and then adopting courses-of-action to eventually achieve them developing plans and strategies for products and their pricing, promotion, delivery.
Marketing Objectives
what is to be accomplished via marketing activities Specific measurable achievable time specific TERM 22
the value proposition
DEFINITION 22
- it shows why the product or service is superior to competing offers. - the value proposition answers the questions, why should I buy from you or why should I hire you? - firms segment markets and the identify different target markets they want to reach when they are developing their value propositions. - once benefits of a product or service are clear, the firm must develop strategies that support the value proposition. TERM 23
mission statements
DEFINITION 23
- a situation analysis is conducted to assess the current business environment, - internal factors such as opportunities and threats are identified.= a swot analysis - product/market position. Most important part of the planning process and defines the purpose of the company. TERM 24
d. Conduct situational
analysisSWOT
DEFINITION 24 i. Strengths/weaknessesinternal environment; controllable ii. Opportunities/threatsexternal environment; uncontrollable Strengths could be: financial, market position, patents, management,cost. Weakness could be: competitive position, organization structure, supplier dependency, product line, brand awareness. TERM 25
Assessing the external environment:
DEFINITION 25
- opportunities and threatsNot Controlable analyzing the external environments involves tracking conditions in macro and micro marketplace. - the macro environment includes economic factors, demographic trends, cultural and social trends, political and legal regulations.
Factors that influence consumer
behavior
a. Situational factors i. Atmospherics, physical, social situations, time, reason for purchase, mood b. Personality and self-concept factors i. Personalityfive personality traits c. Self-concept/self-image d. Gender, age, stage of life e. Life style f. Psychological i. MotivationAbraham Maslows Hierarchy of Needs 1. Physiological 2. Safety/security 3. Social/love/belonging 4. Ego/esteem 5. Self- actualization/self-development ii. Perception 1. Selective attention/exposure 2. Selective distortion 3. Selective retention 4. Surrogate indicators iii. Learning 1. What objects are, what their function is 2. We can learn tastes, wants iv. Attitudesenduring/ difficult to change 1. Have direction 2. Have intensity g. Societal factors i. Culturebased on values, norms, attitudes, perceptions, wants, etc. ii. Subculturenationalities, religions, racial groups, geographic regions, etc. iii. Reference groups 1. Aspirational groups 2. Opinion leader 3. Family h. Social classbased on occupation, souce of income, type of house, neighborhood, education, etc. TERM 32
Low-involvement vs. high involvement
purchases
DEFINITION 32 Low Involvement- routine purchase, inexpensive, low risk High Involvement- High risk, high price, extended problem solving, postpurchase dissonance TERM 33
purchasing process
DEFINITION 33
- need recognition- you need a better version of something 2. search for product information-you begin looking at different types 3. product evaluation- you decide on the price you want to pay, if a friend says they dont like a certain company then you might not want it, get rid of ones you dont want, look at the things you want from the product 4. product choice and purchase- you decide what the best backpack for you is, based on y our evaluative criteria and decide when, where, and how to purchase it. 5. Postpurchase use and evaluation of product- you decide if the backpack is everything you thought it would be and meets your needs- or not 6. Disposal of the product- you decide you like the item so much that you by a better version of it TERM 34
Market segmentation
DEFINITION 34 dividing a market into distinct groups with distinct needs, characteristics or behavior who might require separate products or marketing mixes TERM 35
2 types of target marketing
DEFINITION 35 a. Target marketingthe process of evaluating each market segments attractiveness and selecting one or more segments to enter b. Market positioningarranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers
Targeted marketing vs. mass marketing
a. Targeted marketing also known as differentiated marketing b. Mass marketing TERM 37
What are the benefits of market segmentation
DEFINITION 37 a. Avoid head-on competition b. Helps develop new product offerings; expands profitable brands, expands product lines c. Remarket older products d. Identify early adopters e. Helps to refocus on most profitable customers f. Helps establish buying patterns of current customersloyalty cards being scanned TERM 38
Segmentation basis Behavioral
DEFINITION 38 A more focusedformofmarket segmentationthatgroupsconsumersbased on specific behavioralpatternsthey display whenmakingpurchasingdecisionsenablingproducersto adapt theirmarketingapproach to specific groups. Grouping patterns may include suchbehaviorsas spending,consumption, lifestyle,usage, and desiredbenefits. i. Benefits ii. User statusgrouped as users, non-users, ex-users, potential users, first-time users and regular users iii. Occasionhelp manufacturers build up product usage Mothers Day, Fathers Day, Grandparents Day TERM 39
Demographic Segmentation basis
DEFINITION 39 most popular bases for segmenting customer groups; segmenting the marketing on the basis of statistical data such as age, income, ethnicity, gender, education, occupation, religion, social class, family sizeMarket segmentationbased on differences indemographic factorsof differentgroupsofconsumers. It is one of the fivecommonsegmentation strategies, andaimstodefinespecificnichesthatrequirecustompromotion. TERM 40
Geographic segmentation
DEFINITION 40 using different geographical units such as nations, regions, states, counties, cities, neighborhoods; many companies localize their products, advertising/promotions/sales efforts;Collecting and analyzinginformationaccording tothe physicallocationof thecustomeror otherdatasource. Geographic segmentation is often used inmarketing, sincecompaniessellingproductsandserviceswould like to know where their products are beingsoldinordertoincreaseadvertisingandsalesefforts there. See alsodemographic segmentation.
Positioning/repositioning strategies
a. A products position is the way consumes view a product, in their mind, relative to competition; how the product is defined/viewed by consumers on important attributesin their minds, relative to competitors b. Repositioning
