Marketing Principles: Module 1 'Foundations of Marketing'

What are Market-based assets?

The mental and physical availability that makes a brand easier to buy for more people, in more situations. The job of a marketer is to maintain and build this.

What is mental availability (market based assets)?

Mental availability is the probability that a buyer will notice, think of, or recall a brand in a buying situation. It measures the strength of memory structures in the customer's brain. EG. Logos and taglines of a brand.

What is physical availability (market based assets)

Physical availability is the ease with which a buyer can find, access, and purchase a brand. It measures how present and frictionless a product is at the actual point of sale. EG. Physical and online shopfronts.

What is Empirical Evidence?

Based on direct observation and data gathered from the real world, rather than theories, logic, or preconceived models. 

What is Evidence Based Marketing?

Marketing activities that consist of two key principles:

• Marketing decisions are based on what is currently the best, reliable, generalised knowledge about how the world works,

• How buyers buy and how market interventions work; the use of situation-specific evidence and factual data to support decision-making. 

What is Marketing Science?

The study of marketing, which seeks to develop scientific laws and patterns that repeat under known conditions. 

What are Marketing Metrics?

Measures used to evaluate marketing actions and brand performance, and to inform marketing decisions. 

What is Trade?

Exchanging one thing for another, buying and selling goods and services. 

What is Specialisation?

Expertise developed through focusing attention on a specific skill or knowledge area. 

What is the Marketing Mix/4 P’s?

Product, price, place, and promotion

What is Sustainable Marketing?

Sustainable Marketing means a brand can be maintained perpetually; meaning the needs of the present are met without compromising the ability of the future. Involves thinking beyond short term gains, and considering broader societal impacts.

What is Polygamous loyalty?

The propensity for buyers to be loyal to several brands within a category (to shop within a repertoire).

What is Repeat-purchasing?

When a consumer purchases the same category or the same brand twice in a row (two consecutive purchase occasions).

What is the Double jeopardy law?

The relationship between size and loyalty metrics: brands with less market share have far fewer buyers, and these buyers are slightly less loyal (i.e., small brands suffer twice). (Think Coke and Mischief Brews)

What is a Brand?

A service or product identified by a distinctive and individual name or logo that distinguishes the offerings of one company from those sold by their competitors.

What is a Brand Attribute?

Small pieces of information that a buyer links to a particular brand.

What is a Category?

A grouping of all brands that are selling the same product or providing the same service.

What is a Choice Situation?

The moment when (and place where) a consumer makes a purchase decision, e.g., selecting a type and brand of milk in a supermarket.

What is Differentiation?

Being perceived by most or many buyers as different in some meaningful (non-trivial) way from other brands in the category.

What is the Marketing Environment?

The dynamic context within which a company operates, comprising all the forces and actors that affect its ability to build and maintain successful relationships with customers. Includes the macro and micro environments.

What is the micro-environment?

The set of forces close to a company that directly affect its capacity to serve its customers. Because these actors interact directly with the firm, changes here tend to have an immediate and specific impact on marketing operations.

Includes:
The Organisation
Customers

Competitors

Suppliers

Intermediaries

What are Customers (micro environment)

The central focus of marketing activity. Must understand consumer psychology and behaviour and track how the customer base is structured and evolving.

What are Competitors? (micro environment)

Other firms vying for the same customers, whose strategies and positioning shape a company's own decisions.

What are Suppliers (micro environment)

The individuals and firms that provide the resources needed to produce goods and services; disruptions or changes here can directly affect a company's ability to deliver value.

What are Intermediaries? (micro environment)

Firms such as wholesalers, retailers or transport agencies that assist in the promotion, sale and distribution of products to the end consumer. (EG. Glue Store selling brands like Vans or Crocs)

What is the Organisation? (micro environment)

The firm itself, internal departments and stakeholders whose objectives and resources shape marketing strategy.

What is the Value Chain? (micro environment)

The sequence of activities and partners involved in creating and delivering the company's offering, from raw materials to the end customer.

What is the macro-environment?

The macro-environment encompasses factors that are outside a firm’s control but that can have a significant effect on an organisation and its micro-environment. Considers:

• demographic

• cultural

• economic

• political

• technological

• natural

What is the Demographic (macro environment)

The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.

What is the Cultural (macro environment)

Institutions and forces that affect a society's basic values, perceptions, preferences, and behaviours.

What is the Economic (macro environment)

Factors that affect consumer purchasing power and spending patterns (e.g., income levels, inflation, unemployment).

What is Political? (macro environment)

The laws, government agencies, and pressure groups that influence and limit organisations and individuals in a given society.

Technological (macro environment)

Forces that create new technologies, creating new product and market opportunities (and rendering others obsolete).

What is Natural? (macro environment)

Natural resources needed as inputs by marketers, or affected by marketing activities (e.g., climate, resource scarcity, environmental regulation).

What is a SWOT?

Strengths: attributes and resources that give the organisation an advantage

Weaknesses: internal attributes or limitations that place the organisation at a disadvantage relative to competitors

Opportunities: external environmental factors or changes that the organisation could exploit to its benefit.

Threats: external environmental factors or changes that could potentially harm the organisation.