marketing Flashcards
marketing funnel
- awareness: making the customer know your brand exists
- Interest: making the offering that you are giving the customer play into the value proposition in the preference set they exhibit
- consideration: make the customer put your brand into the sets that they are considering choosing from
- conversion : putting a customer to spend their money in your product or brand
customer goodness definition
the degree that the customer impacts on the profitability of your company
four building blocks to create value for customers to capture value from customers
- analysis:
understanding the marketplace, understand their profile, motivations and path to purchase - planning:
how can the business plan their resources in order to convince the customer that they want to acquire of their brand
segmenting, targeting, positioning - execution:
defining the value proposition and go to market strategy
promotion and communication activities are undertaken - control
the customer with the marketing that you made bought in a promise and have expectations of the product
make the perceived value align with the product or service you deliver
make the customer satisfied
create value for customers self,
2 philosophies
->philosophy of maximizing shareholder value, maximize cash flow, customer is a means to the end
->at the core of the thinking focus on customer goodness, cant have in portfolio costumers with a negative cash flow potential, doest matter if its direct or indirect
4 Ps
pricing
promotion
placement
product
TAM
(Total Addressable Market)
Definition: TAM refers to the entire market demand for a product or service, assuming no competition and full market penetration. It represents the maximum potential revenue or market size if a product could reach 100% of its relevant market.
Example: If you’re launching a new type of smartphone, TAM would be the global market for all smartphones, including all potential customers worldwide.
Purpose: It helps assess the overall opportunity and the largest possible market, giving an idea of the product’s ultimate potential.
SAM
(Serviceable Available Market)
Definition: SAM is the segment of TAM that your product or service can address based on factors like geography, market segmentation, or product capabilities. It represents the portion of the market that your business can realistically target with its current offerings and resources.
Example: If your smartphone is designed specifically for North America, SAM would be the market for smartphones only in North America.
Purpose: It narrows down the market by focusing on a more realistic target based on the company’s capabilities and market scope.
SOM
(Serviceable Obtainable Market)
Definition: SOM is the share of SAM that you can realistically capture, considering your competition, budget, sales channels, and marketing efforts. It represents the actual portion of the market that your business can achieve in the short term.
Example: If you estimate that your smartphone can gain a 5% market share in North America within the first few years, SOM would be 5% of the North American smartphone market.
Purpose: SOM helps businesses focus on actionable goals and forecasts, showing what can be achieved with current resources and strategies.
insight
- the revelation of a significant gap between people’s aspirations and what they perceive as available, which can be turned as a business opportunity
- there is no market for a specific product like mascara there is a beauty for youthfulness and elegance (people want to be perceived a certain way that’s why they want to buy those kinds of products)
- the product is a means to the end
- deep underlying motivation for customers
customers self 2 philosophies
1 maximizing shareholder wealth, the only reason to put your customer in your portfolio is to maximize cash flows
2 at the core of the thinking there is customer goodness, customer acquisition costs cant be higher from the revenue the customer gives, in business to improve the quality of life of the customers
- Customer Health
Customer health refers to how customers’ physical and mental well-being influence their purchasing decisions and how businesses can support or enhance these aspects through their products or services. This can relate to promoting healthier lifestyles or ensuring that products align with customers’ well-being.
- Customer Self
Customer self refers to how individuals see themselves (self-concept) and how they express their identity through their purchasing behaviors. Customers are likely to buy products that align with their self-image or that help them express their aspirations.
- Customer Wealth
Customer wealth refers to the financial status of customers and how their economic situation impacts their purchasing decisions. This concept is essential in determining how businesses can offer value to customers at different income levels and provide products or services that match their budget and financial goals.
example customer health
Health-conscious brands like Nike promoting active lifestyles or Whole Foods offering organic, health-oriented products. or Mental health platforms like Headspace or Calm focus on mindfulness and emotional well-being.
example customer self
Apple appeals to customers’ self-concept by positioning its products as innovative and premium, aligning with customers who see themselves as tech-savvy and creative.
example customer wealth
Luxury brands like Rolex or Louis Vuitton cater to high-wealth customers who value exclusivity and status.
Discount retailers like Walmart or Aldi target customers looking for affordability and value.
Fishbein model
Consumer selects the alternative with the highest score computed on the basis of all its key atributes weighted for importance
What are the four components of the marketing mix?
Product management, Price management, Promotion management, Place management.
What are customer touchpoints?
Any occasion on which a customer encounters the brand and product, from actual experiences to personal or mass communications to casual observation.
primary goal of performance marketing vs traditional marketing
To pay for specific actions, such as clicks or sales.
build brand awareness, broad reach
Channels performance vs traditional marketing
Digital (Social media, affiliate)
TV, radio, print, billboards
Targeting traditional vs performance
Performance :Personalized, real-time optimization
traditional: broad, less personalized
flexibility performance vs traditional
P: quick adjusments based on performance
T: fixed slower to adjust
Budgeting traditional vs performance
P: Cost-effective, pay for results
T: Pre-set costs no direct link to results
Marketing communications what is it and roles
Marketing communications are how firms attempt to inform, persuade, and remind customers – directly or indirectly – about the brands they market
The role of marketing communications:
* Developing effective communications
* Deciding on the marketing communications mix
* Managing the integrated marketing communications mix
share of voice, share of mind and share of heart
Share of voice: competitors’ share of target market
Share of mind: “Name the first company that comes to mind in this industry”
Share of heart: “Name the company from which you would prefer to buy the product”
POEM
paid media, owned media earned media
paid media
a media buy is necessary (brands pay to control)
Examples: display or broadcast advertising, banner ads, Pay Per Click (PPC) search ads, advertorials, sponsorships, sponsored links, and pay-per-post blogging
Almost always on
Earned media:
user-generated content and/or shared by users (the brand has no control)
Examples: consumers’ social media posts, reviews, online communities, (social) media mentions
Always on
Owned media
all content assets a brand either owns or fully controls
Examples: websites, branded blogs, videos, the brand’s social media
Always on
Six main classes of media:
Six main classes of media:
1. Broadcast/audiovisual
2. Print
3. Outdoor
4. Digital
5. In-Store
6. Other
Tools:
six core tools (communication platforms):
Advertising -> Above-the-line communication (ATL); mass media
Sales promotion -> Below-the-line communication (BTL); targeted, direct
Public relations
Direct marketing
Personal selling
other
Types of content: (messages)
Information-based messages
Use factual, rational content, often featuring a product’s key attributes
Often used where the audience experiences high involvement
Emotion-based messages
Use sensory, lifestyle and values-based content to provoke an emotional response
Often used where an audience experiences low involvement
levels of involvement:
levels of involvement:
High involvement “think before you act” left brain
Low involvement “Act before you think” right brain
attitude models
3 stages of attitude development:
cognitive (learn/think)
affective (feel)
behavioral (do)
These stages represent how attitudes are formed and how they influence people’s responses to objects, people, or situations
The elaboration likelihood model (ELM)
It is how people process persuasive messages
Two routes of persuasion:
Central route: careful thinking; when individuals are motivated and able to think deeply; stronger, long-lasting attitude change
Peripheral route: superficial cues; when motivation or ability to process the message is low (social media); weaker, short attitude change
models of communications:
Linear model
focus on interpretation; single source
Explains communication as a one-way process, typically suited for situations where immediate feedback is not expected, such as in mass media or traditional public speaking
Two-way model of communications
focus on diffusion, interaction; multiple sources; hierarchy in sources
The two-step flow of communication model hypothesizes that ideas flow from mass media to opinion leaders, and from them to a wider population
The interaction model of communication
Focus on conversation * Feedback-response * Multiple sources * Noise in ambiance
Communication is a two-way process: back-and-forth interaction between sender and receiver; suitable for more conversational and interpersonal types of communication, where both parties alternate roles as sender and receiver
The rule of 27
how many advertisements do you need to place to place to make your brand stick?
3 : to gain just one good impression in the mind of your customer
X
9 : to lock the brand into the minds of your customers, they have to receive that good impression 9 times
=
27
Promotion/advertising management: 8 steps
Target audience
potential buyers, current users, deciders, or influencers, and individuals, groups, particular publics…
Objectives
category need, brand awareness, brand attitude, brand purchase intent
Budget
affordable, the percentage–of– sales, the competitive–parity, and the objective-and-task method
Advertising strategy
message strategy (what), creative strategy (how), message source (where)
brief
Ad design + copy
consumer benefit, body copy, pay-off, tone, manner
Media planning
reach, frequency, Impact: GRP: R*F
macro scheduling; micro scheduling : concentrated, continuous, intermittent
Campaign implementation
continuity, concentration, intermittent (flighting,pulsing)
geographical: ADI, ADM
Result tracking
communication-effect: copy testing, pre and post
sales-effect: share of voice, of mind and heart, of market
RACE marketing planning framework:
A model designed to help businesses structure their digital marketing activities. It breaks down the customer journey into four key stages, with each stage focusing on different marketing objectives and actions
Exploration
publish and promote your content
Decision making
be worth finding via clear customer journeys
Purchase
capitalize on marketing investment using CRO
Advocacy
Thrilled customers are key to social media marketing, social proof, repeat sales and referral
Brand lift:
Brand lift is a free tool to measure your ad’s impact on the perception of your brand
Conversion Lift:
Conversion lift helps you measure the umber of conversions, sitte visitsn and any other action directly driven by your audience viewing your ad. Conversion Lift data can help you adjust and improve your ads to generate more sales, and app installs.
Goals Branding vs
performance
branding: Brand Awareness
performance: Online sales, lead generation
Media plan Branding vs
performance
branding: Display, Social median video (broader)
performance: Search, remarketing, email marketing (more targeted)
Audiences Branding vs
performance
branding: Demographics (broader)
performance: Interest & intents (more targeted)
Measurements
branding: CPM, CPC, CPV, reach, Brand lift (for all of the acronym go see the funnel lower in the doc)
performance: CPA, CPL, CVR, LTR, Conversion lift
Pricing Model
Companies bid to get their ads out The bid amount depends on the competition, search budget, expected click-through, and the conversion rate
Conversion rate: % of visitor’s clicks that resulted in a desired outcome
Google uses the “generalized second-price auction”: the highest bidder gets the first position but pays the bid amount of the second-highest bidder, and so on
ZMOT
Zero Moment of Truth (ZMOT)
“moment where marketing happens, and where consumers make choices that affect the success and failure of nearly every brand in the world”
“the moment that a consumer decides to research a product or service online before they enter a store or contact a business”
The Zero Moment of Truth -> FMOT (First moment of Truth) -> SMOT (Second Moment of truth)
(FMOT)
The First Moment of Truth is when a customer first interacts with a product, whether in-store or online, and forms an impression. This moment influences their decision to purchase based on packaging, branding, or immediate appeal.
(SMOT)
The Second Moment of Truth happens when a customer uses the product and evaluates its quality and performance. This experience determines their satisfaction and likelihood of repeat purchase or recommendations.
Outbound Marketing
The marketer initiates contact with the customer
Example: TV, radio, and digital display advertising
Goal: to influence consumer awareness and preference for a brand
Inbound Marketing
Customers contact the marketer in response to various valuable content
Example: email, events, content, web design, social media, native advertising
Goal: to establish the business as a source for valuable information and solutions to problems, thereby fostering customer trust and loyalty
Macro Segmentation
Definition: Divides the market into large, broad groups using general criteria (e.g., geography, demographics).
Characteristics:
- Based on broad traits like age, income, or industry.
- Useful for initial market division before deeper analysis.
- Supports mass marketing with less personalized strategies.
- Less precise targeting due to segment size and diversity.
Micro Segmentation
Definition: Focuses on creating smaller, highly specific segments within a market using detailed criteria (e.g., behavior, preferences).
Characteristics:
- Involves granular traits like purchase behavior, lifestyle, or product usage.
- Enables highly targeted marketing with personalized messages.
- Suitable for niche marketing or individualized strategies.
- Higher precision but requires more data and analysis.
Demographic Segmentation
Definition: Divides the market based on observable characteristics like age, gender, income, education, occupation, and family size.
Use: Common for broad targeting since demographic factors influence purchasing power and needs.
Psychographic Segmentation
Definition: Segments consumers based on their lifestyle, values, personality traits, and interests.
Use: Helps in tailoring products and messaging to match consumers’ internal motivations and beliefs.
Behavioral Segmentation
Definition: Groups consumers based on their actions or behaviors toward a product, such as usage rate, purchase occasions, brand loyalty, or benefits sought.
Use: Useful for targeting customers based on how they interact with your product or service.
controllable variables of marketing
offering (product, price)
delivery (promotion, positioning)
uncontrollable variables of marketing
Economic Factors: Conditions affecting consumer purchasing power and spending.
Social Factors: Changes in consumer preferences, demographics, and cultural trends.
Legal and Regulatory Factors: Laws and regulations governing marketing practices.
Technological Factors: Advances in technology impacting marketing opportunities and challenges.
Competitive Factors: Actions and strategies of competitors in the market.
Decision-Making Models:Fishbein Model
Consumers select alternatives based on the highest score calculated from weighted key attributes.
Decision-Making Models:Conjunctive Model
Consumers establish minimum cutoffs for attributes and choose the first alternative that meets these standards.
Decision-Making Models:Lexicographic Model:
Consumers choose based on the most important attribute first.
Decision-Making Models:Elimination-by-Aspects Model:
Brands are compared based on selected attributes, eliminating those that do not meet minimum acceptable cutoffs.
Pain-Gain Theory:
This theory suggests that individuals make decisions by weighing the anticipated pain or effort associated with an action against the expected benefits or gains from that action.
Product Lifecycle: stages
introduction, growth, maturity, and decline
SEO
SEO (Search Engine Optimization) focuses on improving a website’s visibility in organic (unpaid) search engine results through optimization techniques.
SEA
SEA (Search Engine Advertising)
SEA involves paid advertisements displayed in search engine results, often marked as “Ad” or “Sponsored.”
what does google provide or not provide
Google provides:
All kinds of insights on your historical data: impressions, clicks conversions, costs, etc.
Custom reports
Data exports (Excel, etc.)
Google does not provide:
Other user’s information (you don’t know your competitor’s bid)
Statistic on individual searchers (only aggregated per day, week etc.)
A/B testing
An example of test market: A/B testing
A/B test compares several versions of a page, product, feature, etc, to determine which version performs better in terms of user engagement, conversion rates, or other key metrics
How should my advertisement look like?
Where do I advertise?
What audience do I target?
How much do I bid in (real-time) auctions?
Retargeting ads
are display ads shown to consumers who have previously visited a company’s website
Programmatic ad buying
is the use of software to buy digital advertising
traditional vs programatic
Traditional method - requests for proposals, tenders, quotes and human negotiation
Programmatic buying - machines and algorithms to purchase display space
KPI Acquisition
Cost Per Acquisition:
the cost associated with acquiring a new customer
For: banner ads, search engine management, e-mails, or social media campaigns
Why? To measure how efficient/effective the brand is in acquiring new customers
KPI Acquisition
Click-Through Rate:
the average number of click-throughs per hundred advertisement impressions, expressed as a percentage
Why? To measure the effectiveness of digital advertising in general
KPI Acquisition
Percent New Visits:
% of total visits by the number of people visiting for the first time
Why? To spot new people coming to the website who did not have an earlier relationship
KPI, behavior
Bounce Rate:
% of visits in which the person left the website from the entrance page without interacting with the page or other pages
KPI, behavior Checkout Abandonment Rate:
% of filled carts that are abandoned without completing the purchase process
KPI, behavior Page Depth:
number of pages viewed in a session (opposite of bounce rate); measures how deep consumers went through the web experience
KPI, behavior Loyalty:
number of visits over a specific period of time
KPI, behavior Events / Visit:
average number of pre-defined actions (selected by a brand) completed during a session
KPI Outcomes Macro Conversion Rate:
number of sales divided by the number of visitor sessions; how many visitors got converted
KPI Outcomes Micro Conversion Rate:
number of predefined goals achieved divided by the number of visitor sessions
KPI Outcomes Per Visit Goal Value:
cumulative predefined value of goals achieved divided by the number of visitor sessions
KPI Outcomes Days to Conversion:
average time between purchases made by a consumer. It is sort of a loyalty metric with time consideration
KPI Outcomes Percent Assisted Conversions:
conversions with more than one ad / media / marketing touch prior to converting
Single touchpoint
models give 100% of the credit of a conversion to only one touchpoint (mainly clicks, impressions are usually ignored): Last click, first click
Multi touchpoint
models split the credit of a conversion to several (all possible) preceding touchpoints (impressions can be counted in): Linear, position-based, time decay
