McGraw-Hill Marketing Ch 1-4

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

Marketing Plan

A written document composed of an analysis of the current marketing situation, opportunities, and threats for the firm, marketing objectives, and strategy specified in terms of the 4 Ps

4 P's

Product, Price, Place, Promotion

product

creating value. goods, services, and ideas

price

The amount of money exchanged for a good or service, everything the buyer gives up in exchange for the product

promotion

Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response

place

delivering the value proposition, all the activities necessary to get the product to the right customer when the customer wants it

B2B

the process of selling merchandise or services from one business to another

B2C (business-to-consumer)

the process in which businesses sell to consumers

C2C (consumer-to-consumer)

the process in which consumers sell to other consumers

Detail the evolution of marketing over time

Switch from a product and sales oriented era to now a market oriented era. Now, we focus more on what consumers wanted and needed before they design, make, or attempt to sell their products and services

describe how marketers create value for a product or service

- adding value

- marketing analytics

- social and mobile marketing

- ethical and societal dilemma

marketing strategy

the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets

customer excellence

involves a focus on retaining loyal customers and excellent customer service

operational excellence

achieved through efficient operations and excellent supply chain and human resource management

product excellence

having products with high perceived value and effective branding and positioning

locational excellence

having a good physical location and internet presence

Marketing Plan

a written document that acts as a guidebook of marketing activities for the marketing manager

Steps of a Marketing Plan

1. define the mission and the vision

2. Conduct a situational analysis

3. Identify and evaluate opportunities using STP

4. Implement the marketing mix and allocate resources

5. Evaluate performance using marketing metrics

SWOT analysis

identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)

STP

Segmentation, Targeting, Positioning

Segmentation

the process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics

Targeting

A strategy in which marketers evaluate the attractiveness of each potential segment and decide in which of these groups they will invest resources to try to turn them into customers.

Positioning

developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general

SBU (strategic business unit)

a division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives

product line

A group of closely related product items viewed as a unit because of marketing, technical, or end-use considerations

market share

the portion of a market controlled by a particular company or product.

relative market share

a measure of the product's strength in a particular market, defined as the sales of the focal product divided by the sales achieved by the largest firm in the industry

BCG Matrix

a portfolio strategy developed by the Boston Consulting Group that categorizes a corporation's businesses by growth rate and relative market share and helps managers decide how to invest corporate funds

Stars (BCG Matrix)

-upper left quadrant) occur in high-growth markets and are high market share products.

-often require a heavy resource investment in such things as promotions and new production facilities to fuel their rapid growth.

-As their market growth slows, starts will migrate from heavy users of resources to heavy generators of resources and become cash cows.

- ex: uber

Cash Cows (BCG Matrix)

-(lower left quadrant) are in low-growth markets but are high market share products

-these products have already received heavy investments to develop their high market share, they have excess resources that can be spun off to those products that need it.

EX: the firm may decided to use the excess resources generated by the cash cow Brand to fund products in the question mark quadrant.

Dogs (BCG Matrix)

-(lower right quadrant) are in low-growth markets and have relatively low market shares. Although they may generate enough resources to sustain themselves, dogs are not designed for "stardom" and should be phased out unless they are needed to complement or boost the sales of another product or for competitive purposes.

-ex: Animal Health area in Bayer HealthCare

Question Marks (BCG Matrix)

- (upper right quadrant) appear in high-growth markets but have relatively low market shares

-they are often the most managerially intensive products in that they require significant resources to maintain and potentially increase their market share.

-Managers must decide whether to infuse question marks with resources generated by the cash cows, so that they can become stars, or withdraw resources and eventually phase out the products.

market penetration

a marketing strategy that tries to increase market share among existing customers

market development

company growth by identifying and developing new market segments for current company products

product development

a marketing strategy that entails the creation of new products for present markets

Diversification

a strategy of increasing sales by introducing new products into new markets

4E Framework for Digital Marketing

Excite, Educate, Experience, Engage

Digital Marketing

Uses all digital media, including the Internet and mobile and interactive channels, to develop communication and exchanges with customers

7C Online Marketing Framework

core goals, context elements, content, community, communication, commerce, connection

core goals (7C)

- Goal of any website is to engage its users by encouraging them to spend time viewing and interacting with its content

- Engage the customer in commerce, educate the customer about the product

Contextual Elements (7C)

design, navigation, must be in alignment with the target market

Content (7C)

text, graphics, video, audio

Community (7C)

allow customers to interact, use corporate and professional blogs, engage in crowdsourcing

Communication (7C)

Clear, helpful, meaningful content enables effective communication.

Enables interacting with, engaging, and educating site visitors.

Provide a mechanism for customers to communicate with the firm.

Commerce (7C)

customers want a range of online purchase options

Connection (7C)

Engage customers and provide a call to action.

Allow customers to interact with the firm continuously.

Enable positive engagement.

The Wheel of Social Media Engagement

Information, Connected, Network, Dynamic, Timeliness

information effect

the outcome of social media in which relevant information is spread by firms or individuals to other members of its social network

connected effect

Outcome that satisfies humans' innate need to connect with other people

Network effect

outcome of social media engagement in which every time a firm or person posts information, it is transferred to the poster's vast connections across social media, causing the information to spread instantaneously

Dynamic effect

Describes the way in which information is exchanged to network participants through back-and-forth communications in an active and effective manner. It also expands the impact of the network effect by examining how people flow in and out of networked communities as their interests change.

timeliness effect

Concerned with the firm being able to engage with the customer at the right place/time - their ability to do so 24/7 from any location.

How do firms engage their customers using social media?

listen, analyze, do

Developing and implementing a marketing campaign

- identify strategy and goals

- develop budget

- develop campaign

- monitor and change

influencer marketing

A marketing strategy that uses opinion leaders, popular on social media, to drive marketing messages to a targeted audience.

4Rs of Influencer Marketing

relevance, reach, response, return

Ethical considerations for influencer marketing

-Fraudulent influence.

-Not identifying posts as advertising

-Insincere promotions.

conscious marketing

Involves a sense of purpose for the firm that is more than simply making a product by selling products ands services

Four main principles: a greater propose, consideration of stakeholders, conscious leadership and culture, and ethics

What is marketing's greater purpose?

The purpose of business is more than making profits. The actual purpose might vary, such as proving necessary products, ensuring employment ent opportunity, or achieving greener production methods. The endearment improves the inputs as well as the outcomes of marketing actions

What is the difference between conscious marketing and corporate social responsibility?

CSR implies a focus on the triple bottom line of good performance according to economics, environmental, and social criteria. Conscious marketing refers to the overall meaning and propose of the company and its marketing

Describe the ways in which conscious marketing helps various stakeholders

o Employees: A firm committed to conscious marketing treats its employees with decency and respect. For many employees, working for an irresponsible firm would be antithetical to their own morals and values.

o Customers: When companies exhibit conscious marketing principles, customers know that they can trust the firms to provide healthy, ethically acceptable products and services. Many customers also feel better about buying from a company that engages in responsible practices, which provides them with the additional value of feeling good about buying from that company.

o Marketplace: An industry improves its practices and avoids scandals when it ensures that the participating firms act responsibly and appropriately in all areas

o Society: This stakeholder is local, national, or global communities who benefit when conscious marketers give thought to how their practices might influence values or connections, such as providing aid to underprivileged communities.

o Environment: The benefits of conscious marketing might include cleaner air and water as well as healthier product options.

Explain how conscious leadership can produce a conscious cutler in the firm

Conscious marketing should be integrated into the very foundation of the firm by its leaders, such as in the firm's mission statement. Then top management must follow through and commit to supporting SR, a strong ethical climate in the organization, and conscious marketing principles. When considering their strategy, conscious marketing firms ask not only "can we implement a certain policy?" but also "should we do it?" If any action is not ethical or socially responsible, the conscious firm will make changes to its marketing strategy.

Describe how ethics constitutes an integral part of a firm's conscious marketing strategy

Being a part of an ethically responsible firm should be important to every employee, but it is particularly important to marketers because they interact most directly with customers and suppliers and make decisions about how their products impact society and the environment. Thus marketing issues present a multitude of ethical questions and opportunities to handle.

4 steps of ethical decision making

1. identify issues

2. gather information and identify stakeholders

3. brainstorm and evaluate alternatives

4. choose a course of action

conscious marketing

An approach to marketing that acknowledges four key principles: a higher purpose, stakeholders, conscious leadership, and a conscious cultures

Stakeholders

The broad set of people who might be affected by a firm's actions, including not just corporate shareholders and customers but also employees (past, current, and prospective) and their families, supply chain partners, government agencies, the physical environment, and members of the communities in which the firm operates (defined either locally or on a global scale).

Business ethics

A branch of ethical study that examines ethical rules and principles within a commercial context, the various moral or ethical problems that might arise in a business setting, and any special duties or obligations that apply to persons engaged in commerce

Marketing ethics

refers to those ethical problems that are specific to the domain of marketing

Corporate Social Responsibility (CSR)

voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders

Triple bottom line

Economic, social, and environmental impact metrics used to determine an organization's success.

Stakeholders of Conscious Marketing

employees, customers, marketplace, society

The role of employees within conscious marketing

The most basic responbility of a firm is to ensure a safe working environment free of