Marketing: Definitions, Strategies, and Communication

Marketing

Planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services

Exchange

Trade of something of value between two parties

Value

Customer's perception of benefits weighed against the costs

Marketing Mix

Controllable elements of a marketing program: product, price, place, promotion

Integrated Marketing Communications (IMC)

Strategic process to develop, execute, and evaluate coordinated brand communications

Promotion

Coordination of seller-initiated efforts to sell goods, services, or ideas

Promotional Mix

Tools used to accomplish an organization's communications objective

Advertising

Paid form of nonpersonal communication about an organization, product, service, or idea

Direct Marketing

Marketing by directly communicating with customers to generate a response or transaction

Direct-Response Advertising

Advertising that elicits a sales response directly from the advertiser

Omnichannel Retailing

Selling products through multiple distribution channels

Interactive Media

Media that allows consumer interaction with the message source

Sales Promotion

Marketing activities that provide extra value or incentives to stimulate sales

Publicity

Communications regarding an organization, product, service, or idea that are not paid for

Public Relations (PR)

Management function to earn public understanding and acceptance

Personal Selling

Person-to-person communication to persuade prospective buyers

Touch Point

Opportunity for consumer to interact with a company or brand

Paid Media

Channels of communication a marketer pays for

Owned Media

Channels of marketing communication that a company controls

Earned Media

Exposure for a company or brand that it did not have to pay for

Integrated Marketing Communications Management

Planning, executing, evaluating, and controlling the use of promotional-mix elements

Integrated Marketing Communications Plan

Framework for developing, implementing, and controlling an organization's IMC program

Marketing Plan

Written document that describes overall marketing strategy and programs

Internal Analysis

Phase of promotional planning process that focuses on the product and firm itself

External Analysis

Phase of promotional planning process that focuses on market factors

Marketing Objectives

Goals to be accomplished by an organization's marketing program

Communication Objectives

Goals to be achieved through promotional program in terms of communication effects

Strategic Marketing Plan

Planning framework for specific marketing activities

Market Segments

Identifiable groups of customers with similar needs or characteristics

Market Opportunities

Areas where favorable demand trends exist and where a company can compete

Target Marketing

Process of identifying specific needs of segments and developing marketing programs

Market Segmentation

Dividing a market into distinct groups with common needs

Geographic Segmentation

Segmenting a market based on different geographic units or areas

Demographic Segmentation

Segmenting a market based on demographic characteristics

Psychographic Segmentation

Dividing a market based on personality and/or lifestyles

Behavioristic Segmentation

Segmenting a market based on usage, loyalties, or buying responses

80-20 Rule

Principle that 80% of sales volume is generated by 20% of customers

Benefit Segmentation

Segmenting markets based on major benefits consumers seek

Undifferentiated Marketing

Strategy offering one product or service to the entire market

Differentiated Marketing

Strategy offering products or services to multiple market segments

Concentrated Marketing

Strategy focusing marketing efforts on one particular market segment

Positioning

Fitting the product to set it apart from competition

Salient Attributes

Attributes considered important in the purchase decision process

Repositioning

Changing a product or brand's positioning

Product Symbolism

The meaning that a product or brand has to consumers

Brand Identity

Combination of name, logo, symbols, design, and associations held by consumers

Brand Equity

Added value or goodwill resulting from a favorable brand image

Marketing Channels

Interdependent organizations involved in making a product available to customers

Direct Channels

Channels where producer and consumer interact directly

Indirect Channel

Channels where intermediaries are used to make a product available

Promotional Push Strategy

Targeting trade to promote and sell the product to consumers

Trade Advertising

Advertising targeted to wholesalers and retailers

Promotional Pull Strategy

Targeting consumers to encourage them to purchase the product

Advertising Agency

Firm that specializes in creating, producing, and placing advertising messages

Agency of Record (AOR)

Agency responsible for most of the integrated marketing communications services

Media Organizations

Organizations that provide information or entertainment to audiences

Specialized Marketing Communication Services

Organizations that provide marketing communication services in specific areas

Collateral Services

Agencies that provide specialized services such as package design and marketing research

Advertising Manager

Individual responsible for planning and implementing the advertising program

Centralized System

Organizational system where marketing activities are run from one central department

Decentralized System

Organizational system where marketing decisions lie with product/brand managers

Brand Manager

Person responsible for the marketing program of an individual brand

Category Management System

Organizational system where managers have responsibility for marketing programs in a category

In-house Agency

Advertising agency owned and operated by an advertiser

Billings

Measurement of the size of advertising agencies

Superagencies

Large agencies that offer integrated marketing communications worldwide

Full-service Agency

Agency that offers a full range of marketing and communications services

Account Executive

Liaison between the agency and the client

Account Planner

Gathers information for the development of the creative strategy

Copywriter

Conceives ideas and writes the words for ads and commercials

Departmental System

Organizational system where the agency is divided into departments based on functions

Group System

Organizational system where the agency is divided into groups consisting of specialists

Creative Boutique

Agency that specializes in the creative aspects of advertising

Media Specialist Companies

Companies that specialize in buying advertising media time and space

Programmatic Buying

Automated buying, placement, and optimization of advertising media

Commission System

Compensating agencies with a percentage of media purchases

Negotiated Commission

Compensating agencies with a commission structure negotiated with the client

Fixed-fee Method

Compensating agencies with a fixed fee for services

Fee-commission Combination

Compensating agencies with a fixed monthly fee and media commissions

Cost-plus System

Compensating agencies based on the cost of work performed plus profit

Incentive-based System

Compensating agencies based on meeting performance goals

Percentage Charges

Markups charged by agencies for services provided to clients

Financial Audit

Evaluation of an agency's financial affairs

Qualitative Audit

Evaluation of an agency's efforts in planning and implementing communications programs

Direct-marketing Agency

Provides direct-marketing services to clients

Sales Promotion Agency

Specializes in planning and implementing promotional programs

Public Relations Firm

Develops and implements programs to manage a company's publicity and image

Digital Agencies

Specialize in digital and interactive marketing tools

Consumer Behavior

Process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services

Problem Recognition

First stage in the consumer decision-making process

Want

A felt need shaped by a person's knowledge, culture, and personality

Motives

Compelling factors that drive consumer behavior

Hierarchy of Needs

Abraham Maslow's theory of human needs arranged in a hierarchy

Psychoanalytic Theory

Study of human motivations and behaviors pioneered by Sigmund Freud

Motivation Research

Qualitative research to probe subconscious motives for purchasing

Internal Search

Acquiring information from past experiences or knowledge

External Search

Seeking and acquiring information from external sources

Perception

Process of receiving, selecting, organizing, and interpreting information

Sensation

Immediate and direct response of the senses to a stimulus

Selective Perception

Filtering or screening of exposure, attention, comprehension, and retention