Marketing Flashcards
concept of marketing
The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
Marketing orientation
- product orientation D>S
- sales orientation D=S
- market orientation S
marketing management orientation
- selling concept
- marketing concept
selling concept
profits through sales volume
marketing concept
profits through customer satisfaction
market share
company’s sales/total market sales
marketing mix: 4ps
- product
- price
- place
- promotion
1.price
- pricing strategy
- knowing the market
- elasticity
- keeping an eye on rivals
pricing strategy
- competition price
- cost + margin
- dynamic pricing: the price is changing due to a lot of traffic on the website, or due to the high season (vacations, special dates etc…)
elasticity
- elastic demand: means there is a substantial change in quantity demanded when another economic factor changes (typically the price of the good or service)
- inelastic demand: means that there is only a slight (or no change) in quantity demanded of the good or service when another economic factor is changed
2.product
The objective is to improve/differentiate the product and increase sales to gain a competitive advantage:
- Design
- Value: the ratio between price and quality is very good
- Usefulness
- Quality
- Packaging: using expensive packaging to improve your product
- Technology: electronic devices use this tool to stand out their product.
product life cycle
- Introduction phase: very expensive because you are spending a lot of money on promotion.
- Growth: your product is really working in this phase because they are buying it and the sales are very high
- Maturity: you get the maximum sales here and you do not need to make a lot of effort because everyone knows your product.
- Decline: the increase is getting smaller because you will need to innovate your product or change your product a little bit
- Disruptive innovation: innovation that simplifies and makes more affordable products and services to undesirable or ignored markets
- promotion
Strategies to make the consumer aware of the existence of a product or service
NOT just advertising; mouth to mouth communication
For example: MADCOOL festival
- place
The means by which products and services get from producer to consumer and where they can be accessed by the consumer
-The goods must be in the right place at the right time. Making sure that the goods arrive when and where they are wanted is an important question
marketing plan
written documenting that describes your advertising and marketing effort for the upcoming year
Marketing plan steps
- 1.Situation analysis: Micro, macro and internal environment (PEST)
2. SWOT: strategies, weakness, opportunities , threats
3. Objectives: you set them after you have analyzed the environment then you start using SMART. (Specific Measurable Achievable Realistic Time)
4. Strategy: the plan on how to get there, there are many strategies like Ansoff strategies.
5. Actions: delivering flyers for your company is an action.
6. Control: when an action doesn’t work you need to know how to control it and solve the situation. For example: Zara analyzes their sales through computers and filters their products every week based on the results.
strategic marketing (theoretical)
- External analysis: macro environment and microenvironment (PEST)
- Internal environment: SWOT
- Strategy: segmentation and positioning
operational marketing (practice)
- Marketing mix 4ps
- Budget
- Implementation
- Control
segmentation
Market segmentation splits up a market into different types of groups (segments) to enable a business to better target its products to the relevant customers.
Segmentation main base
- Geographic: customers, location, region, urban/rural, ACORN, classification. Ex: customers within 10 miles of the M25 (autoweg circle london)
- Demographic: age, gender, occupation, socio-economic groups. EX: a level and university students
- Behavioural: rate of usage (when a businessman rents a car every time he works abroad), benefits sought (something that benefits the customer’s life/health) , loyalty status, readiness to purchase. EX: customers wanting a value for money impulse buy
- Psychological: personality, lifestyles, attitudes, class. EX: customers who prefer to buy organic food
positioning
A marketing strategy that aims to make a brand occupy a distinct position, relative to competing brands, in the mind of the customer.
E-marketing domains
- B2B: sell to other companies. For example Coca Cola. it is better B2B because companies are much bigger than customers and also there is lesser risk
- B2C: companies that sell directly to the customer. EX: retail stores
- C2C: second hand “companies”. Consumer sell their used clothes to other consumers
- C2B: consumers are creating reviews. Ex: Tripadvisor before booking a travel; freelancers, contractors
SEO
- The process of maximizing the number of visitors to a particular website by ensuring that the site appears high on the list of results returned by a search engine
- organic search → The SEO industry is continually changing due to the frequent changes made to Google’s algorithm
SEM
- The process of gaining website traffic by purchasing ads on search engines
- paid search→ SEM includes the use of paid search, such as pay per click (PPC) listings and advertisements
Big data
Extremely large data sets may be analyzed computationally to reveal patterns, trends, and associations, especially relating to human behaviour and interactions.
3 V’s of big data
- Variety: you can use everything besides numbers like images, sounds etc…
- Velocity: you have to analyze it as quickly as possible because it is outdated very fast.
- Volume: we can analyze so much more.
