Marketing Flashcards
what is marketing
The entire process of creating relationships with customers by offering goods, services, and experiences that they value
The company engages through the customer
Provide goods and services that satisfy customer needs through a coordinated set of activites
marketing mix
Coordinates set of activities involving Product, Pricing, Place/Distribution and Promotion
Help convince the customer you are developing a unique product/ service that will solve their problems and create value for them
price
revenue streams
promotion
Promotion - channels, how you make them aware of your product through marketing – how to build relationships with customers
distribution
plays role in channels, where are you selling it, channel in which they get the product delivered to them
product
what you are selling
unique/ differentiating factors
understand the consumer decision process
Depends on perceived importance of purchase (often connected to price)
Affected by a variety of influences
influences that affect the customer decision process
- situational
- psychological
- social
situational
- situation
psychological
perception
lifestyle you are looking for
social
social pressure from friends
family
cultural
how will people react if I do something
consumer buying decision process
- recognize problem/ opportunity
- search for information
- Evaluate alternatives
- purchase
- evalutate after purchase
STP process
- segment
- target
- position
segment
Identify sub-set of customers, learn about their problems, describe them
target
Identify the customers to who you wish to direct your product toward (the ones that are not satisfied with existing solution)
position
Identify how to best compete in selected target markets
Understand exactly where you need to be perceived in the customers’ mind
Position the product in the midst of the customer when they are going through the problem – make them think it is the right solution
Post STP
- Convince customers you meet their needs and are better than the competition
- The 4P’s – product, price, promotion, place/distribution
STP example
Product – high-end skincare
Pricing – higher than competitors
Promotion – a luxury good
Place – skin wholesale / dollar store – would not align
Must have alignment between 4ps
bases for segmentation
- benifit sought
- state of being
- state of mind
- behaviour
benefit sought
what they are looking for, benefit they are seeking
Start with benefit sought before looking at other characteristics
state of being
- geographic
- demogrphic
- customer type
geographic
urban/ suburban/rural, region, climate
demographic
age, gender, ethnicity, income, education, family, state, religion
customer type
business, customer
state of mind
- Lifestyle/ psychographic – values, attitudes beliefs, personality
- Busy on the go vs laid back
- Fundamental beliefs
behaviour
- Media usage, product usage, brand loyalty, price sensitivity
- How often are they consuming this product
ex - Computers vs lawn mowers
selecting target market
Determine which of the segments will be the target market by finding the biggest gap between:
- what the customer wants and needs – preference analysis
- how the customer perceives the competition that is currently meeting those needs – perceptual map
what the customer wants / needs
- preference analysis
- Talk to potential customers, ranking criteria
- Ideal car, what will satisfy their needs and wants
how the customer perceives the competition that is currently meeting those needs
- perceptual map
- Perception of existing competition
- Perceive Toyota, lamborgeni
target market selection
Draw axes that represent the relevant dimensions/ criteria by which people perceive and evaluate different product offerings
create perceptual map
locate the positions of competing products on the axes/ dimensions according to customer perceptions
create preference anaylsis
locate each segment’s ideal product
how to find biggest gap in the market
Overlay preference analysis onto perceptual map
- Where the biggest gap is
segment that we should go after
selection of target marketing
X is the average ideal product for the entire segment
The biggest gap between the ideal and where the competition currently is
Segment 2 - furthest away - needs are not being met, no one is serving this market
Look at how big the segment is
The viability and feasibility of the segment – is it realistic for you to go after the market
positioning
Let them know you are the ideal product
Position ourselves in the customer’s mind that we are going to be servicing their needs – Unique value proposition
Value proposition statement
How your product is filing the gap
The circles represent – what customer segments want
marketing concept
shifted from producer orientation –> to consumer orientation
producer oriented
- take orders
- mass-produce –> get to as many people as possible
- distribute goods
consumer orientated
- determine customer needs
- satisfy needs
- use customer feedback to improve
- use marketing mix and tailor it around ensuring the product is satisfying the needs of your customers
- who is your customer, what is the voice of the customer, how do they want to be spoken to
- customers are looking for experiences and customization
