Unit 1 Introduction to Marketing Analystics Flashcards
What is marketing
Marketing is 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.
Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others
what is value
Before value was not that important
Before people wanted to make products that were cheap and an okay quality
But during the 80s and 90s; not all customers are the same
Customers want different values: some may want cheaper, while others may value luxury products
It is because products have VALUE
It does not have to be valuable for everyone; it has to have value for a certain market
what is marketed
Persons – think of celebrities
Services – ex. Accounting, healthcare
Goods – products that you could hold
Experiences
Events
Properties
Organizations
Information
Ideas
Places - cities
Who markets
Marketer
Prospect
Response = Attention, Purchase, Donation, Vote
Key consumer markets
Global markets
Business markets – B2B
Consumer market
Government market – ex. Passport Canada
Customer vs Consumer vs Client
Consumer – who uses / consumes the product
Customer – who purchases the product
Client – user of a service
core marketing concepts
- Needs, wants, and demands
- Offerings and brands
- Target markets, positioning, and segmentation (STP): Should be done before 4Ps:
Segmentation – divide customer into identifiable groups
Target market – the group of consumers who is best to purchase a product or service
Position – perception in consumer’s mind compared to competitors - Value and satisfaction
- Marketing channels – direct, indirect, ecommerce
- Supply chain - what steps are needed to make and deliver our product?
- Marketing environment – outside the company (the company does not have control): Political, Environmental, Social, Etc.
- Competition
What is the difference between needs, wants, and demands?
Needs – what is essential
Wants – what is not essential but still liked by consumers
Particular way which a person chooses to fill their needs based on personal experience
Demands – their willingness to pay for products
Market is an exchange
industry (sellers) –goods/services–> market (buyers)
*communication
market(buyers) –money–>industry(sellers)
*information
Product
Functionality
Brand
Packaging
Services
What is the 4 Ps
Product Price Place Promotion
Price
List price
Discounts
Bundling
Credit terms
Promotion
Advertising
Sales force
Publicity
Sales promotion
Place
Channel
Inventory
Logistics
Distribution
What is Marketing Engineering
involves developing and using interactive, customizable, computer-decision models for analyzing, planning, and implementing marketing tactics or strategies
What is a model
Models are stylized representations of reality that structure our thinking about how the world works
Models indicate which factors should be considered and which factors can be ignored
By focusing on the relevant factors and their interrelationship reality can be simplified
Models are useful because they facilitate top-down processing (as opposed to bottom up processing)
Issues in using models
Assembling an arsenal of models for a domain of interest
Retrieving relevant mental models in a given situation
Being aware of the limitations of mental models (they may overrepresent and underrepresent, or even misrepresent things)
Types of models
Verbal - “sales are a function of advertising”
Box and arrow
Graphical
Mathematical
(ATAR – Awareness, Trial, Availability, Rebuy)
ATAR Model
= awareness, trial, availability, rebuy
= # of potential buyers * percent awareness * percent of trial * percent availability * measure of repeat * price per unit
Model benefits
Small models can offer insight – they can change your goals and priorities, even if they don’t influence your decisions
Even simple models can align management beliefs with marketing policy
You don’t need hard data to get value for models – judgements and intuition is often enough
Digital data capture enables large model ROI
