Marketing 1 Flashcards
Marketing
Organizational function and a set of processes for creating, capturing, communicating, and delivering VALUE to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
The process by which COMPANIES CREATE VALUE FOR CUSTOMERS and build strong customer relationships in order to CAPTURE VALUE FROM CUSTOMERS IN RETURN.
Marketing Myopia
Focusing only on existing wants and losing sight of underlying consumer needs.
Marketing Management
The art and science of choosing target markets and building profitable relationships with them.
Four P’s
Product, Price, Place, Promotion
Product
Creating Value. The fundamental purpose of marketing is to create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs.
Price
Capturing Value. The key to determining prices is to figure out how much customers are willing to pay and assess whether a profit can be made at the identified price point.
Place
Delivering the Value Proposition. Place, or SUPPLY CHAIN MANAGEMENT, describes all activities necessary to get the product to the right customer when the customer wants it.
Promotion
Communicating Value. Communication by a marketer that INFORMS, PERSUADES, and REMINDS potential buyers about a product or service to influence their opinions or elicit a response.
STP
Segmentation, Targeting, Positioning
Segmentation
Identifying meaningfully different groups of customers.
Targeting
Selecting which segment(s) to serve.
Positioning
Implementing chosen image and appeal to chosen segment.
Market-Oriented
Discover and satisfy customers’ wants and needs.
Value
What you get vs. what you give.
Value-Based Marketing
Give customers greater value than competitors.
Value Cocreation
Customers act as collaborators to create product or service.
Innovation
Creating a real and sustainable competitive advantage.
Branding
Creating or reinforcing a perceived competitive advantage.
Relationships
Develop and manage long term relationship with customers.
Customer Equity
Combined customer lifetime values of all the company’s customers.
Social Media Goals
Sales, thought leadership, community management/customer service, listening, driving to website.
Social Media KPIs
Reach: How many people saw what you are publishing?
Engagement: How many people did something because of what you published?
Clicks: How many people are going to your website because of your social channels? (Sales Funnel)
New Followers: How many people are you enticing to sign up for more of your updates?
4E Framework for Social Media
Excite, Educate, Experience, Engage
Need first three to engage.
Excite (Social Media)
Offer must be relevant to target customer.
Relevancy can be achieved by providing personalized offers.
Educate (Social Media)
Golden opportunity: Product’s value proposition and offered benefits.
Experience
Information about a firm’s goods and services.
Simulating real experiences.
Engage the Customer
Action, loyalty, and commitment.
Positively engaged consumers lead to more profitability.
Engagement can also backfire.
Categories of Social Media
Social network sites.
Thought sharing sites.
Media sharing sites.
Media Sharing Sites
Highlight how consumers can experience.
Encourage customers to engage.
Thought Sharing Sites
Blogs - corporate, professional and personal.
Microblogs - Twitter
Social Reach
How many people a person influences.
Influence
Extent to which the person influences others.
Extended Network
Influence of the person’s cumulative network.
Bonders
Social butterflies who use social media to enhance and expand their relationships, which they consider all-important in their lives.
Creators
Hip, cool contributors, sit at the cutting edge and plan to stay there. Social media give them new ways to post and share their creative, clever ideas.
Hits
Total requests for a page.
Page Views
Number of times any pages get viewed by any visitor.
Bounce Rate
Percentage of times a visitor leaves the site almost immediately.
Click Paths
How users proceed through the information.
Conversion Rates
What percentage of visitors act as the marketer hopes.
Keyword Analysis
What keywords people use to search on the internet for their products and services.
Sentiment Analysis
Allows marketers to analyze data from these sources to collect consumer comments about companies and their products.
Immediate Environment
Company, Competition, Corporate Partners
Macroenvironment
Culture, Economic, Demographics, Political/Legal, Technology, Education
Competition
Know strengths and weaknesses.
Proactive rather than reactive strategy.
Corporate Partners
Firms are part of alliances.
Align with competitors, suppliers, etc.
Just in Time Delivery Systems (JIT)
Demographics
Provides an easily understood snapshot of the typical consumer in a specific target market.
Gen Z
2001-2014
Gen Y
1977-2000
Gen X
1965-1976
Baby Boomers
1946-1964
Income
Purchasing power is tied to income.
Education
Related to income, which determines spending power.
Gender
Male/female roles have been shifting.
Marketing has changed to reflect these shifts.
Social Trends
Thrift, Health and Wellness Concerns, Green Consumers, Privacy Concerns, Time-Poor Society
Thrift
Consumers attempting to save more, spend less on luxuries, do not dip into their savings.
Health and Wellness Concerns
Worldwide pandemics or epidemics, child-teenage obesity.
Greener Consumers
Customers who appreciate firms efforts to supply them with environmentally friendly merchandise.
Privacy Concerns
Loss of privacy, identity theft, do not call, do not email.
Time Poor Society
In the majority of families, both parents work. Consumers have many more choices regarding leisure time. Many consumers multitask.
Technology
Has impacted every aspect of marketing - new products, new forms of communication, new retail channels.
Economic Situation
Foreign currency fluctuations. Combined with inflation and interest rates affect firms’ ability to market goods and services.
Consumer Behavior
Buying behavior of final consumers, individuals and households, who buy goods and services for personal consumption.
Consumer Decision Process
Need Recognition Information Search Alternative Evaluation Purchase Post Purchase
Information Search
Length and intensity of the search are based on the degree of perceived risk associated with purchasing the product or service.
Locus of Control
Internal - more search activities
External - fate, external factors
Actual or Perceived Risk
Performance, financial, social, physiological (safety), psychological
Higher Risk = more likely to engage in extended search.
Evaluative Criteria
Important attributes.
Determinant Criteria
Something special that differentiates - must have
Steps Toward Postpurchase Satisfaction
Build realistic expectations. Demonstrate correct product use. Money-back guarantees and warranties. Encourage customer feedback. Customer contact.
Marketing Mix
4 Ps: Product, Price, place, Promotion
Psychological Factors
Motives, attitudes, perceptions, learning, lifestyle
Social Factors
Family, reference groups, culture
Situational Factors
Purchase situation, shopping situation, temporal state
