Marketing Flashcards
What is marketing according to the American marketing association?
The activity set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Two fold goal:
Attract new customers
Keep and grow current customers
Customers in marketing
Customers are at the core of the marketing process
Customers: consumers who purchase products from a seller
Target market: customers in whom an organisation focuses its marketing efforts
Customer at the centre
- product
- price
- distribution
- promotion
- exonomic forces
- political forces
- legal and regulatory forces
- technilogical forces
- socio cultural forces
- competitive forces
The marketing process
All about creating value for customers and so for that reason companies must fully understand customers and he market place.
Needs: states of felt deprivation
Wants: the form human needs take as they are shaped by culture and personality
Demands: human wants that are backed by buying power
Describe the flow chart for customers in relation to marketing
Understand the marketplace and customer needs and wants ->
design customer value driven marketing strategy ->
construct an integrated marketing program that delivers superior value ->
engage customers, build profitable relationships and create customer delight ->
capture value from customers to create profits and customer equity
The marketing mix
Marketing is more than advertising or selling a product, it involves a wide range of factors (eg product development and management)
“The right product is in the right place and at the right price”
The mix: product, price, distribution and promotion
What is the expanded marketing mix?
Place
Price
Promotion
-informing and educating customers of the product
People
Physical evidence
-decor
Processes
-timing of service
Partnerships
Product
Describe product variable, price variable and place variable in marketing mix
Product variable: can be a good, a service, and idea , and experience or a combination thereof
Price variable: relates to the decisions and actions associated with establishing pricing objectives and policies and determining product prices
Place variable : to satisfy customers products must be available at the right time and in convenient locations
Describe promotion, people and physical evidence variable in the marketing mix
Promotion variable: activities used to inform individuals or groups about the organisation and its product
People variable: refers to and includes the people involved with preparing, producing and presenting the product
Physical evidence variable: the elements associated with the product used to demonstrate the product and what it is (eg location, decor, lighting and other physical elements)
Describe the processes and partnership variable in marketing
Processes variable: involves things such as automation or use of self service technology
Partnership variable: establishing, maintaining and nurturing partnerships throughout the supply chain
Final considerations and conclusions for marketing
Marketing is a multidimensional field of study (eg the marketing iceberg)
Advertising and sales are just one small fraction of marketing as a discipline
“The right product in the right place and the right price”
Oriented towards customer satisfaction
Define advertising
A paid non personal communication about an organisation and its products transmitted to a target audience through mass media
What’re the key advertising decisions
Four major decisions need to be considered when developing an advertising program
Objectives setting —>budget decisions —>strategy—> message and media—>advertising evaluation
Advertising decisions: objectives
A specific communication task to be accomplished with a specific target audience during a specific period of time
Should be based on past decisions about the target market, position, and the marketing mix
Can have different purposes:
Inform
Persuade
Remind
What’re the different types of advertising in advertising decisions: objectives
Informative advertising :
Mostly used when introducing a new product. Build demand,
Persuasive:
Important when competition is high. Build selective demand. Become competitive or attack advertising.
Reminding advertising:
Important for mature products because it helps maintain relationships ships and helps keep relationships with consumers.
Advertising decisions: budget
The total amount of money allocated for advertising for a specific time period
Key factors:
- geographical size is the market and distribution of buyers
- type of product
- industry norms regarding advertising frequency
- the desired positions of company
Advertising decisions: message
Planning of a message and content strategy
- what will be communicated to consumers
- identify customer benefits to engace appeal
Plain, strait forward outlines of benefits and position points to be stressed
Advertising appeals:
- meaningful
- believable
- distinctive
Message execution and execution style
-the approach, style, tone, words and format used for executing an advertising message
What’re the executing styles used in advertising decisions: message?
Slice of life Lifestyle Fantasy Mood or image Musical Personality symbol Technical expertise Scientific evidence Testimonial evidence or endorsement
Advertising decisions: media
Steps in selecting advertising media
- Reach, frequency, impact and engagement
- Choosing the media type (radio, tv etc)
3, selecting media vehicles - Choosing media timing
Advertising decisions: evaluation
Advertising effectiveness can be assessed
-before campaign (pre test consumer panel)
During campaign
-inquiries
After campaign
-post test (recognition test, unaided recall test)
Final considerations and concluding in advertising
Advertising is just a small fraction of marketing
Developing effective advertisement campaigns involves complex decisions
What is a consumer?
A person who buys a product without a commercial reason.
What is a client
Consumers who purchase products from a seller.
Table of methods about setting advertising budgets: percent of sales approach
Adjust past sales according to expected increase/decrease. Budget will be determined by a proportion of this adjustment.
Flaws: based on a flawed assumption that sales create advertising and not vice versa.
Table of methods about setting advertising budgets: objective and task approach.
Determine campaign objectives and list tasks that will achieve these. Total budget determined by total cost of these tasks.
Most logical approach.
Issues: difficult to estimate which tasks will achieve the campaign objectives.
Table of methods about setting advertising budgets: competition matching approach
Aim to match the major competitors budgets in absolute dollars or to allocate the same percentage of sales for advertising that competitors do.
Issues:
Simply following the trend is not a route to success. Misses opportunity to “stand out”.
Table of methods about setting advertising budgets: arbitrary approach
A high level executive in the company states how much to spend on advertising for a certain period.
Issues:
Often leads to underspending or overspending.
