Marketing And Marketing Management Flashcards
What is Marketing?
- 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.
- Peter Druckers quote: ”The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available.”
Example*: The Ipad’s, Prius’s and Wii game system’s success cannot be attributed merely to the great selling skills of retailers, but rather to their runaway success stemmed from the fact that they designed the right product, based on careful marketing homework about consumers, competition, and all the external factors that affect cost and demand.
What is Marketing Management?
Marketing and marketing management are nearly the same, but differ slightly on one aspect:
Marketing management takes place when at least one party to a potential exchange thinks about the means of achieving desired responses from other parties. Thus it is the:
- art and science of choosing target markets and getting, keeping, and growing customers through creating, communicating and delivering, superior customer value.
What is Marketing NOT!?
Marketing is:
- NOT sales. Marketing focuses on attracting appropriate prospects, developing warm sales leads, and providing supporting materials to encourage purchase. But the actual execution of these sales, whether in a store by a clerk, in an inbound call center or in the field by an assigned sales professional, is the responsibility of the sales function.
- NOT customer service. As a firm’s customer facing representatives, customer service responds to customer needs across platforms and channels. Customer service and marketing have a strong working relationship since agents must understand the ins and outs of every promotion and be able to close and upsell prospects. Further, customer service can be an invaluable source of timely customer feedback.
- NOT creative (or graphic arts). While marketing content and communications often need creative and graphic input, marketing focuses on the broader strategy and tactics aligned with business goals and building customer relationships. Marketing is responsible for branding but it usually does not execute the creative that develops the brand, logo and related collateral and advertising.
- NOT product support. Marketing usually does not provide day-to-day product support. With the help of various social media formats, what marketing can do is create useful and engaging post-product support content. To be executed well, marketing needs a product management staff who have deep product expertise.
- NOT senior management’s personal publicity machine. Marketing is responsible for creating and supporting corporate thought leadership. But, contrary to what some senior executives would like you to believe, marketing isn’t a personal publicity machine focused on getting one or more executives in the public limelight. For these efforts, executives should hire their own publicity agents.
The 5 P’s of Marketing: the Marketing Mix
The 5 P’s of Marketing, also known as the marketing mix are variables that managers and owners control to satisfy customers in their target market, add value to their business, and help differentiate their business from competitors. The 5 P’s are:
- Product: What good, service or idea are you selling?
- Price: How much do you charge for what you are selling?
- Promotion: How are you enticing people to purchase your product?
- Place: Where are you selling your product?
- People: Whom are you trying to reach and get to buy your product?
The Marketing Mix: Product
Product refers to the products and services offered by a business. Product decisions include Functionality, Appearance, Packaging, Quality and Warranty.
Customers need to understand the features, advantages, and benefits that can be enjoyed by buying goods or services. When thinking about a product, consider the key features, benefits, and the needs and wants of customers.
The Marketing Mix: Price
Price refers to the pricing strategy for products and services and how it will affect customers. Pricing decisions do not include just the selling Price, but also Discounts, Payment arrangements, Credit terms, and any Price-matching services offered.
When determining a pricing strategy, it is important to consider the business’s position in the current marketplace. For example, if the business is advertised as a high-quality provider of mechanical equipment, the product pricing should reflect that.
The Marketing Mix: Promotion
Promotion refers to the activities that make the business more known to consumers. It includes items such as Sponsorships, Advertising, and Public Relations activities.
Since promotion costs can be substantial, it is essential to conduct a break-even analysis when making promotion decisions. It is important to understand the value of a customer and whether it is worth conducting promotions to acquire them.
The Marketing Mix: Place
Place refers to where the product/service of the business is seen, made, sold, or distributed. In essence, place decisions are associated with Distribution channels, Logistics, Location, Service levels and Market coverage: any way to get the product to targeted key customers.
It is important to consider how accessible the product or service is and ensure that customers can easily find you. The product or service must be available to customers at the right time, at the right place, and in the right quantity.
For example, a business may want to provide their products over an e-commerce site, at a retail store, or through a third-party distributor.
The Marketing Mix: People
People refer to the staff, salespeople, and those who work for the business. People decisions are usually centered around Customer service, Service provided and Employee Portrayal, Appearance and Attitude: anything that affect the way customers perceive employees.
