Chapter 1 Flashcards
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
Value
Customer’s perception of all the benefits of a product/service weighed against all the costs of acquiring/consuming it
Exchange
Trade of something of value between two parties; usual medium is money.
Marketing Mix
The Four P’s - Product, Price, Place, Promotion
Integrated Marketing Communication (IMC)
Coordinate various promotional elements and other marketing activities that communicate with firm’s customers.
Uncontrollable Factors
External factors beyond control of the marketer. (Competition, Political/Legal system, Economy, Environment)
Conditions for Exchange
- At least 2 parties
- Something of value
- Communication and Delivery
- Freedom to Accept/Reject
- Desire to deal w/ other party
Types of Benefits
Functional - product served purpose
Experiential - what it feels like to use product
Psychological - feelings of self-esteem/status from owning product
Marketing Mix Other Names (6)
- The Marketing Mix
- The Four P’s
- 3 P’s and a D (distribution - place)
- 3 P’s and a C (communications - promotion)
- 2 P’s, a C & D
- Controllable Factors
Sustainability
Development that meets the needs of the current generation without compromising the ability of future generations to meet their needs
Promotion
The coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services/promote an idea
Elements of the Promotional Mix
- Advertising
- Direct Marketing
- Digital/Internet Marketing
- Sales Promotion
- Publicity/Public Relations
- Personal Selling
Advertising
Paid, nonpersonal communication:
- about organization, product, service, or idea
- w/ identified sponsor
- no immediate feedback from audience
Advertising Classifications
Consumers - national, retail/local, primary/selective demand
Organizations - business-to-business, professional, trade
Direct Marketing
Organizations communicate directly with target customers to generate a response and/or transaction
Forms of Direct Marketing
- direct mail
- catalogs
- direct response ads
- telemarketing
- direct selling
- database management
- shopping channels
- internet sales
Direct-Response Advertising
Promotion through ad, encouraging consumer to purchase directly from the manufacturer
Omnichannel Retailing
Companies sell their products through multiple distribution channels (retail stores, online, catalogs, mobile apps)
Digital/Internet Marketing
Interactive Media, Social Media, and Mobile Marketing
Interactive Media
Allow users to participate in and modify the form and content of the information they receive in real time
Social Media
Online means of communication and interactions used to create, share, and exchange content
Mobile Marketing
Messages delivered are specific to a consumer’s location/consumption situation
Sales Promotion
Marketing activities that provide extra value/incentives to the sales force, retailers, and/or ultimate consumer
Reasons for Sales Promotion (3)
- Declining brand loyalty
- Increased consumer sensitivity to promotional ideas
- Retailers’ demand for more trade promotion support from companies
