Chapter 1 Marketing Fundamentals Flashcards
Marketing planning starts with a scan of the environment
- External demographic
- social-culture
- economic
- technological
- competitive
- regulatory forces
Successful marketing is focused on
Customer’s wants and needs
Need
Occurs when a person feels deprived of basic necessities
Want
Is a need that is shaped by a person’s knowledge, culture, and personality
Marketers need to consider how consumers navigate online environment when developing marketing programs
1) Understand the consumer’s path to purchase. What website/social media should you advertise to in order to engage with consumers
2) Website must be easily found and highly ranked by search engines
Customer Value Proposition
The unique benefits received by customers that will benefit their needs (price, convenience, delivery, and both before-sale and after-sale services)
Marketing Mix (4P)
Product, price, place, and promotion (all are controllable factors)
Creating products with added values is achieved through
1) Product design
2) Pricing strategies
3) Service elements (fast delivery, points, healthy benefits, reviews)
With limited funds, target…
customers who are most interested rather than targeting everyone
Target Market
Specific group (or segment) of existing or potential consumers where marketers direct their efforts towards (Ensuring each element of the marketing mix is appealing to the target market)
Describing the 4P of marketing mix
1) Product: All attribute that makes up a good, it can be a good, service or idea to satisfy customer need and includes product design, features, color, packaging, warranty, and service levels
2) Price: What is exchanged for a product, regular retail price or sale price
3) Place: The way your product gets to the customer, including distribution channels, retail formats, and merchandising used to sell a product
4) Promotion: The tools used to communicate with consumers about a product, including advertising, public relations, sales promotions, direct response, event marketing, sponsorship, online approaches, and personal selling
Marketing Process
1) Identifying consumer needs
2) Managing the marketing to meet consumer needs
3) realizing profits
Marketing
Process of planning, managing goods, services, or ideas to meet consumer needs and organizational objectives
Exchange
Is the trade of things between buyers and sellers so that they both benefit
A Good
Is a product that is tangible and you can touch it and own it
A Service
Is an intangible product you cannot touch or own
An Idea
An idea is a concept that typically looks for support (Mothers against drunk driving)
Market
Describes potential consumers who are willing and have the ability to buy a product
Production Orientation
Focused on manufacturing, consumer needs was not a priority. Assembly line. (Up until 1930)
Sales Orientation
Focused on selling as many products as possible (From 1930 to 1960)
Marketing Orientation
Focused on the idea to satisfy the need of the customers while achieving organization’s goal (From 1960-1990)
Relationship Marketing
Focus on the life time value of consumers and strive to offer better services and higher quality products to establish long-term relationships with customers (1990-Now)
Customer Relationship Management (CRM)
The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction (Reward cards etc)
Share of Wallet
The percentage of a customer’s purchases that a company has in a specific product category
Customer lifetime value
The potential sales that will be made if a customer stays loyal to a company for a lifetime
Corporate Social Responsibility (CRS)
Organizations voluntarily consider the well-being of society by taking responsibility for how their business impact consumers, customers, suppliers, shareholders, communities, the environment, and society
Greenwashing
The deceptive use of marketing practices to give the impression that a good, service, or organization is environmentally friendly
Societal Marketing Concept
Marketing programs that focus on the consumer and the well-being of society
New and Evolving marketing practices
- Digital market (Content marketing, Mobile marketing, social media marketing)
- Real-time marketing
- Experiential marketing
- Partnership marketing
- Metrics and Analytics
- Marketing Regulations and Ethical Considerations
Digital Marketing
Using digital technology to reach consumers through computers, gaming devices, out-of-home electronics screens, or mobile devices
-display marketing, affiliate marketing, search engine marketing, search engine optimization, pay-per-click advertising, mobile marketing, email marketing, and social media marketing
Content Marketing: Creating and sharing expertise, information or branded content that is designed for using to advertise with research papers, e-books, infographics, how-to videos, blogs etc… and events that can be found through search engines
Mobile Marketing: Organizations engage and communicate with customers with mobile devices and network
Social Media Marketing: Ability to interact with consumers, often in real time though social networks like facebook, twitter, instagram etc
Real-time Marketing: A planned tactical approach where brands post on social media during times of event to get in on the buzz (Superbowl, Olympics, Academy Awards, Pride day etc)
Experiential Marketing: Marketers create fun and memorable experiences for consumers so they interact with the brand and will spread the word on social media (pop-ups at different locations, lego bus-stops for instagram for pictures and using hashtags)
Partnership Marketing: Partnering with other companies with similar customers to add business value to both brands and achieve goals that can only be achieved together (Affinity Marketing)
Brand Partnership (co-branding): Nutella is a key
ingredient product in their partnership
offerings and not just a take-home product
Strategic Alliance: Long-term arrangements between
companies with similar values and objectives
that’s more than just short-term promotional
offers (Cineplex scene cards and sociabank
loyalty card)
Metrics and Analytics: Can measure and track online sales, also measure website interactions such as time on site, page views, returning visitors, newsletter signups, and digital downloads. Metric is the numeric data collected to track performance, and its presented as spreadsheet and dashboards to make it easy to read
Dashboards: visualize data using graphs and charts
and numbers
Analytics: Process of taking metric data and
applying smart thinking and technology
to gain insight that can help make
better business decisions
The Canadian Marketing Association (CMA)
Has a code of ethics where all members must follow and encourage high marketing standards that are honest, truthful, accurate, fair, and professional
