lectures 1+2 Flashcards
Businesses share 2 needs:
- Stay in business
- Make a profit
3 Informal Definitions of Marketing
- Building/managing profitable customer relationships
- Creating/exchanging value
- Identification of unmet needs/creation of solutions for those needs
B2B vs. B2C
-B2C: satisfy needs of consumers; consumer is the ultimate endurer of a product/service
- B2B: satisfy needs of organizations; business/producer is the marketer of a product
Need vs. demand vs. benefit
Need: difference between customer’s actual state and where they perceive they want to be (may be functional but often go beyond just simple fulfillment)
Demand: customer’s desire for products coupled with “resources to obtain them”
Benefit: the outcome sought that motivates consumer behavior
Market
All the customers who:
- Share a common need
- That can be satisfied by a specific product
- Who have the RESOURCES to exchange for it
- Who are WILLING to make the exchange
- Have the authority to make the purchase
i.e. I am not in the market for beer because I am unable to purchase beer.
Marketplace
Location/medium used to conduct an exchange
Value
- Dictated by 2 parties
- Personal/individual decision which requires agreement between buyer and seller
What can be marketed?
Anything!
- Tangible/physical goods
-Intangible products/services
- Ideas/concepts
Consumer goods
Tangible goods purchased by individual consumers for “personal or family use”
- CPG: consumer packaged goods
Services
Intangible products exchanged directly from producer to consumer
- We live in a service economy
B2B marketing
Goods or services for A) resale, B) use in production of new goods, C) to support operations
E-commerce
Sales of goods utilizing on line tech
Not for profits
Non-taxable entities for charity, education, religious and community organizations
Marketing Mix Tools (4 P’s of Marketing)
Combination of variables that a company uses to influence/meet needs of its target customers.
Product - ideas, goods, services (tangible/intangible)
Price - assessment of value (not just a number)
Place - when/where available (“distribution”)
Position - activities to inform/stimulate/incentivize a sale
* Sometimes: Promotion
Promotional mix
combination of marketing methods to achieve a specific goal
- advertising, public relations, personal selling (1 to 1), sales promotion, direct mail, internet marketing
Marketing Process
Series of steps a business takes to connect with its target audience and sell its products/services.
1. Plan –> execute the plan
2. Monitor –> assess what has been achieved
3. Review –> compare achievements against plan
4. Control –> specify any remedial action needed
BACK TO PLAN
SWOT analysis
Strengths
Weakness
Opportunities
Threats
Mass market
Product for everyone – “mass marketing” = marketing strategy targeted to everyone, no differentiation
Segmentation
Segmentation of a market allows for more defined targeting
Individualized marketing/micromarketing
Tend to a very specific group of target customers, or to each individual customer
Stakeholders
Anyone that has a “vested interest” in the business: stockholders, employees, competitors, customers, suppliers, government, communities
4 P’s of Marketing
- Product (ideas/good/services, tangible or intangible)
- Price (assessment of value)
- Place (when/where available)
- Position (where a company stands in company’s mind)
Promotional mix
Methods of promotion –> includes advertising, PR, personal selling, direct mail
Strategic planning hierarchy
Mission statement : leads to corporate objectives, first line in mktinig plan
Tactical plan: planning strategies/tactics to support strategies
Operational plan: detailed plans for day to day activities that suport tactical
Marketing plan
Written document that:
-Describes the marketing environment
- Outlines marketing strategies/objectives
-Identifies tactics for course of action
- Identifies who is responsible for carrying tactics out
Strategic plan steps
- Defining the company’s mission statement
- Setting company objectives and goals (strategic, tactical, operational)
- Designing the company portfolio/business portfolio
Value Proposition
Set of benefits or values a business promises to deliver to customers to satisfy their needs
Market Offering
Some combination of products, services, information, or experiences provided to consumers to satisfy a need or want
Customer relationship management
Manage detailed information about individual customers and carefully manage customer touchpoints to maximize customer loyalty
Marketing mix
The set of tactical marketing tools—
product, price, place, and promotion—
that the firm blends to produce the
response it wants in the target market.
