Unit 5 Flashcards
Define 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.
What are the essential elements of marketing practice?
- Marketers assess the needs of customers and determine how to satisfy customers’ needs
- Marketing programs are created to attract customers to a good or service and get them to purchase for the first time
- Programs are designed to encourage customer satisfaction and loyalty, the goal of which is to develop a long and profitable relationship with the customer
- Marketers conduct their marketing practices that benefit numerous stakeholders (ie. customers, shareholders, partners, and social as a whole, etc)
Define organizational objectives.
Short-term and long-term goals that the organization seeks to accomplish, which allow it to become more successful.
Define customer needs.
States of felt deprivation, including physical, social, and individual needs.
What is the importance of marketing?
Marketing is an agent of change that leads an organization into the future and sets the agenda for how the organization manages change. With marketing, an organization produces the appropriate products and services for unique customer groups, ensuring that a profitable future for the organization can be sustained.
Consider the evolution of marketing over time. What is product orientation?
Production Orientation (1990s): Occurs when an organization pays little attention to what customers need, concentrating instead on what the organization is capable of producing. Businesses realize profits by producing and distributing only a limited variety of products as efficiently as possible.
What is selling orientation? What is the hard sell?
Selling Orientation (1920s-1940s): Occurs when companies believe that the more they sell, the more profit they will make.
The Hard Sell is forceful messaging by companies to urge costumers to purchase.
What is marketing orientation?
Marketing orientation occurred from the 1950s to 1990s.
Marketing Concept: The process of determining the needs and wants of a target market and delivering a set of desired satisfactions to that target market more effectively than the competition .
What is socially responsible marketing orientation? Also, define cause marketing.
Socially Responsible Marketing (1990s-2000s): The notion that businesses should conduct itself in the best interests of consumers and society.
Cause Marketing: An organization’s support of causes that benefit society.
What is social media marketing orientation? Define social network, brand democratization, and consumer-generated content.
Social media marketing orientation began in 2006 and is still present. Social media marketing is marketing within social media platforms.
Social media marketing encourages less formal marketing and a participative environment that involves consumers.
Social media communications is used to post interesting information about a brand so that people pass the information on to their network of friends.
Social Network: A website that connects people with different kinds of interests for the purpose of socializing (eg. Facebook or Twitter).
Brand Democratization: A situation in which the customer can interact with a brand, giving the customer some control over the marketing of a brand (as in online user-generated content)
Consumer-Generated Content: Online content created by consumers for consumers (often the content is related to a branded good)
What are brand evangelists?
Brand evangelists are people who create content to promote their favourite brand without being asked to.
What is content marketing?
A marketing format that involves the creation and sharing of relevant brand-oriented content in order to acquire customers .
What are some of the benefits of social media marketing?
- Consumer engagement
- Ability to communicate directly with potential customers
- Securing feedback from customers
- Learning about customer preferences
What is the marketing process?
The marketing process is a series of marketing decisions and actions intended to address marketing goals and maximize customer value. Customer value is the perceived benefits of a product versus the costs associated with that product.
Define market.
A group of people who have a similar need for a product or service, the resources to purchase it, and the willingness and ability to buy it.
What is the goal of marketing?
To attract, retain, and cultivate customers who benefit from the goods and services they buy.
How do companies achieve the goal of marketing?
Marketers develop innovative products and related marketing strategies that will provide value to customers .
What are the steps in the marketing process?
- Assessing customer needs by doing marketing research
- Identifying and selecting a target market to pursue
- Developing a strategic marketing plan that embraces the components of the marketing mix
- Developing a customer relationship management program to encourage loyalty and maximize the value of each customer
- Evaluating marketing-mix strategies and customer relationship programs to ensure that goals set out in the plan are achieved
Describe the first step of the marketing process.
Needs Assessment: The initial stage of marketing planning in which a company collects appropriate information to determine if a market is worth pursuing.
The company uses a variety of research techniques and examine various sources of information to perform a needs assessment.
A company will usually conduct a market analysis and a consumer analysis.
Market Analysis: The collection of appropriate information (ie. information regarding demand, sales volume potential, production capabilities, and resources necessary to produce and market a given product) to determine if a market is worth pursuing
Consumer Analysis: The monitoring of consumer behaviour changes (tastes, preferences lifestyles) so that marketing strategies can be adjusted accordingly
Describe the second step of the marketing process.
An organization concentrates its efforts on a segment of the population that offers the most promise, defined as the target market.
Target Market: A group of customers who have certain characteristics in common.
Describe the third step of the marketing process.
An organization focuses on devising a marketing strategy or marketing plan. A good strategy includes the marketing mix.
Marketing Mix: The four strategic elements of product, price, distribution, and marketing communication.
Define product strategy. How is product differentiation related?
Making decisions about such variables as product quality, product features, brand names, packaging, customer service, guarantees, and warranties.
Branding is another aspect of product strategy. Product strategy includes maintaining current products and developing new products.
It is important to differentiate products.
Product Differentiation: A strategy that focuses on the unique attributes or benefits of a product that distinguish it from another product
The goal of product differentiation is innovation, which is to invest considerable sums of money in developing products, resulting in a breakthrough product that will move the company forward.
Define price strategy. What are the influences on price?
The development of a pricing structure that is fair and equitable for consumers and still profitable for the organization.
Price is influenced by cost of manufacturing, cost of distribution, cost of promotion, desired profit level, competition, desirability, etc.
What is low differential advantage vs. high differential advantage?
Low - the less distinguishable a product is among its competitors, the less flexibility there is with price. The product has no unique qualities that make it worth spending more on it than on its competitors’ product.
High - a product can be priced higher than its competitors.
Define distribution strategy. What is a marketing channel?
Distribution Strategy: The selection and management of marketing channels and the physical distribution of products
Marketing Channel: A series of firms or individuals that participate in the flow of goods and services from producer to final users or customers
Distribution decisions include the type of channel to use, the location and availability of the product, inventory, and transportation modes.
Define marketing communications strategy.
The blending of advertising, sales promotion, experiential marketing, personal selling, and public relations to present a consistent and persuasive message about a product or service.
Define integrated marketing communications (IMC).
The coordination of various forms of marketing communications into a unified program that maximizes impact of consumers and other types of customers.
Describe marketing communications.
When considering marketing communications, marketing managers face two important decisions:
- What message to deliver
- What media and marketing communications alternatives to use in their mix
Managers select and use components of the marketing communications mix that are appropriate for resolving the current situation. The message delivered for the used components should be uniform.
A consistent message across all media has more impact on the audience it is intended to reach.
What are the trends in marketing communications?
There is a trend toward targeted media and marketing communications alternatives and away from mass media. Online communications, social media network communications, and mobile communications are becoming popular.
There is a greater emphasis on complementary activities such as sales promotions, public relations, and experiential marketing.
Define sales promotion.
Activity that provides special incentives to bring about immediate action from consumers, distributors, and an organization’s sales force.
