Defining Marketing

Question 1

What is the value of marketing?

Answer 1

• financial success through marketing ability
• building demand for (new) products/services
• building up brands and loval customer base

Question 2

Why is Branding so important in marketing?

Answer 2

• there are many products fulfilling a demand and no one is truly unique anymore (functional/technical)
• it is used to convince people to buy your product and to differentiate from competitors.

Question 3

The scope of marketing

Answer 3

• Marketing is about identifying and meeting human and social needs
  AMA’s (American Marketing Association) formal definition: Marketing is 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

Question 4

What is marketing management in general?

Answer 4

The art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value

Question 5

What is marketed?

Answer 5

• Goods
• Services
• Events
• Experiences
• Persons
• Places
• Properties
• Organizations
• Information
• Ideas

Question 6

Who markets?

Answer 6

Marketer: Someone who seeks a response—attention, a purchase, a vote, a donation

Prospect: Someone who does the response

Question 7

The 8 states of demand

Answer 7

• Negative
  You spent money to avoid something or to let it disappear. It is often realized by the government, e.g. healthcare. Even for negative markets, companies do not advertise based on bad things (e.g.: stolen car, burnt house, broken leg, …)
  They rather show the positive side of e.g. an insurance.
• Nonexistent
  Smartphones did not exist, no demand. Smartphones were available everyone wanted them
• Latent
  People need to be pushed into the decision of buying a newly introduced product, because they only notice its importance after getting used to using it, e.g. printer
• Declining
• Irregular
  Christmas stuff is more bought in winter than during summer
• Unwholesome
  Things that harm you, e.g. cigarettes, alcohol, maybe sugar
• Full
• Overfull

Question 8

Past and present form of marketing systems

Answer 8

Past: Need marketing for information and communication. Marketing is not required for sales

Present: Communication between the customers and the company is given. Flop rate of brands is 90%

Question 9

4 key customer markets

Answer 9

• Consumer markets
• Business markets
• Global markets
• Nonprofit & governmental markets

Question 10

The core marketing concept

Answer 10

• Needs:
  the basic human requirements such as for air, food, water, clothing, and shelter
• Wants:
  specific objects that might satisfy the need
• Demands:
  wants for specific products backed by an ability to pay

Question 11

Describe the different type of needs

Answer 11

• Stated
• Real
• Unstated
• Delight.
• Secret

Question 12

Artificial Scarcity

Answer 12

A product is not really limited, but the company produces a limited amount to create the feeling of exclusivity

Question 13

The S.T.P concept

Answer 13

• Segmentation:
  various segments of people in a market (characterized by certain criteria)
• Target markets:
  one of the segments that is interesting for the company is chosen to analyze their likes and dislikes
• Positioning:
  based on the preferences of the target group we position the product (it is about what the customer considers valuable)

Question 14

Value Proposition

Answer 14

A set of benefits that satisfy those needs, even if they are untrue

Question 15

Offering

Answer 15

A combination of products, services, information, and experiences

Question 16

Brand

Answer 16

An offering from a known source. The better the reflection of wants/values of the potential client, the stronger the brand gets. It’s about the mindset of the customer.

Question 17

Marketing Channels

Answer 17

Communication, Distribution, Service

Question 18

Different Media

Answer 18

• Paid media:
  TV, magazine and display ads, paid search and sponsorships
• Owned media:
  a company/brand brochure, web site, blog, Facebook page, twitter
• Earned media:
  word of mouth, buzz, or viral marketing. What the company dreams of

Question 19

Impressions

Answer 19

Occur when consumers view communication

Question 20

Engagement

Answer 20

The extent of a customer’s attention and their active involvement with communication.

Question 21

Value

Answer 21

A combination of quality, service, and price (e.g. customer value triad)

Question 22

Satisfaction

Answer 22

A person’s judgment of a product’s perceived performance in relationship to expectations. Is directly linked to ideas of value.

Question 23

Supply Chain

Answer 23

A channel stretching from raw materials to components to finished products carried to final buyers. Most supply chains on the market are not known

Question 24

Marketing environment

Answer 24

Task environment, Broad environment

Question 25

Competition

Answer 25

All the actual and potential rival offerings and substitutes a buyer might consider. All companies on the same segment, e.g. Puma, Adidas, Nike

Question 26

New marketing realities

Answer 26

- Digitalization - Globalization - Social responsibilty

Question 27

New consumer capabilites

Answer 27

- Internet use as a powerful information and purchasing aid - Can search, communicate, and purchase on the move - Social media to share opinions and express loyalty - Can actively interact with companies - Can reject marketing they find inappropriate

Question 28

New company capabilities

Answer 28

- Internet use as a powerful information and sales channel - Collecting fuller and richer information about markets, customers, prospects, and competitors - Reaching customers quickly and efficiently via social media and mobile marketing, sending targeted ads, coupons, and information - Improved purchasing, recruiting, training, internal and external communications - Improved cost efficiency

Question 29

Changing channels

Answer 29

- Retail transformation | - Disintermediation

Question 30

Heightened competition

Answer 30

- Private brands (distributer owned) - Mega-brands (brand within brand) - Deregulation (wanting to decrease regulation) - Privatization (get more efficient and productive)

Question 31

Marketing in practise

Answer 31

* Marketing balance * Marketing accountability * Marketing in the organization

Question 32

Historical steps of company orientation towards the market place

Answer 32

1) Production (should be quickly, as long as you produce: positive) 2) Product (production was not enough anymore. Products needed to be good) 3) Selling (selling was quite aggressive) 4) Marketing (selling wasn’t working anymore, markets were saturated, need for considering customers value: Modern way of doing it)

Question 33

Todays business model for marketing

Answer 33

a) What are the values of our segment? b) Let’s develop products they would like (customer-driven) c) Outsourcing production to cheaper countries to save costs