Marketing Midterm

Define Marketing

Define Marketing

Marketing is a series of activities that seeks to discover, investigate, create, and announce value for customers and society as a whole.

What is the marketing mic (4Ps)

Product, Price, Place, Promotion

What is the importance of marketing?

Marketing is integral to all aspects of a company, not just sales and advertising. It offers rewarding career opportunities and helps individuals become informed consumers.

What are market segments?

Groups of individuals or organizations that share similar needs

What is customer value?

Strategies to attract new customers, increase business with existing customers and retain current customers.

What is the external marketing environment?

Comprises factors that marketers cannot control but must understand to effectively reach their target market. - Key variables include competitive, regulatory, economic, social, and technological factors.

What is the P in PESTEL?

Political - government policies and regulations that affect business operations

What is E(1) in PESTEL?

Economic - Economic conditions like inflation, unemployment, and consumer spending that influence marketing strategies

What is S in PESTEL

Social - Demographic changes, cultural trends, and consumer attitudes that impact market demand

What is T in PESTEL?

Technological - innovations and advancements that can create new opportunities or challenges for business

What is E(2) in PESTEL?

Environmental Factors - businesses must consider sustainability and environmental impact in their operations and marketing strategies

What is L in PESTEL?

Legal factors - Compliance with laws and regulations is essential to avoid legal issues

Why is it important to understand demographic trends?

Understanding current demographic patterns helps marketers tailor their strategies to meet the needs of different consumer groups.

What are competitive factors and why are they important?

• Companies face competition from direct competitors, substitutes, new entrants, suppliers, and buyers.

• Analyzing the competitive landscape is vital for developing effective marketing strategies.

Why is Strategic Planning important?

Strategic marketing planning is essential for guiding marketing strategies and decisions. - It helps set objectives and define actions needed to achieve them.

What is a mission statement and what should it focus on?

• A mission statement outlines the organization's purpose and values.

• It should focus on the market served rather than just the products offered.

What is SWOT analysis and what does each letter stand for? Which parts are internal and external?

• A tool for assessing internal strengths (S) and weaknesses (W) and external opportunities (O) and threats (T).

• Helps identify strategic advantages and areas for improvement.

• Strengths and Weaknesses are internal, opportunities and threats are external

What is Competitive advantage?

Refers to unique features of a company or product that are perceived as superior by the target market.

What is cost advantage?

Being the lower cost option

What is product differentiation?

Offering unique products that provide additional value

What is Niche strategy?

Targeting a specific market segment effectively

Explain Product in the 4ps?

What is being offered to meet customer needs

Explain Price in the 4ps?

The cost to the customer and pricing strategies

Describe place in the 4ps?

Distribution channels to make the product available

Describe promotion in the 4ps?

communication strategies to inform and persuade customers

What is implementation ? (think marketing plan)

Turns the marketing plan into actionable tasks

What is evaluation? (marketing plan)

Assesses whether objectives are met and identifies areas for improvement

What is Control? (marketing plan)

Control mechanisms ensure that marketing activities align with the plan and budget

What are 3 techniques for Effective Strategic Planning?

• Recognize that strategic planning is an ongoing process.

• Encourage creativity in developing strategies.

• Ensure top management support for successful implementation.

What is marketing research?

The process of planning, collecting, and analyzing data relevant to marketing decisions. - Helps businesses understand customer needs and market trends.

Wha are the 5 steps in the Marketing Research Process? (ICCAP)

• Identify the Problem: Define the issue that needs to be addressed.

• Choose Research Design: Decide on the type of research (exploratory, descriptive, or causal).

• Collect Data: Gather secondary (existing) and primary (new) data.

• Analyze Data: Interpret the collected data to draw conclusions.

• Present Findings: Share the results in a clear and actionable format. - Follow Up: Assess how the research findings were used in decision-making.

What is Exploratory Research?

Informal and aims to gain insights into a problem.

What is descriptive research?

Provides a detailed description of marketing phenomena.

What is Casual research?

Investigates cause-and-effect relationships between variables.

What are two impacts of Technology on Marketing Research?

• Technology has transformed data collection methods (e.g., online surveys, social media).

• Big data allows for deeper insights into consumer behavior and preferences.

What is Marketing Analytics?

• The use of data to optimize marketing decisions and strategies.

• Helps in understanding customer behavior, product performance, and market opportunities.

What are two concerns related Data Collection?

• Privacy issues and the potential for intrusive data collection methods.

• Transparency about how data is used and shared is crucial for maintaining consumer trust.

When to Conduct Research vs Use Analytics?

• Consider conducting research when the cost is justified by potential revenue gains.

• Use analytics when timely insights are needed to inform decisions.

Why is it important to understand Consumer Behaviour?

• Consumer behavior studies how individuals make purchase decisions and how they use and dispose of products.

• It helps marketers understand their target audience better.

What are the 5 steps in the Consumer Decision Making Process? (NIEPP)

• Need Recognition: The consumer realizes they have an unmet need or want.

• Information Search: Consumers seek information internally (from memory) or externally (from friends, ads, etc.).

• Evaluation of Alternatives: Consumers compare different options based on criteria like price, quality, and features.

• Purchase Decision: The final choice is made, influenced by the evaluation process.

• Post-Purchase Behavior: Consumers reflect on their purchase, which can lead to satisfaction or cognitive dissonance (regret).

What is Routine Response Behaviour?

Low-cost, frequently purchased items that require little thought.

Limited Decision Making:

Occasional purchases or unfamiliar brands in familiar categories.

Extensive Decision Making:

Involves high-cost, infrequent purchases that require significant research and evaluation.

What is Culture?

The shared values, norms, and practices that shape consumer behavior.

What is Subculture?

Groups within a culture that have distinct values and behaviors.

What is Social Class?

Economic status influences purchasing decisions.

What are Reference Groups?

Groups that influence an individual's purchasing behavior, including family and friends.

What are 4 individual factors affecting buying decisions?(GAFP)

• Gender: Men and women may have different purchasing behaviors.

• Age: Different age groups have varying preferences and needs.

• Family Life Cycle: Stages of family life influence buying patterns.

• Personality and Lifestyle: Individual traits and lifestyles affect choices.

What are Psychological Factors in buying?

• Perception: How consumers interpret information and form opinions.

• Motivation: The driving force behind consumer actions to satisfy needs.

• Learning: Changes in behavior based on experiences.

• Beliefs and Attitudes: Established views that influence how consumers respond to marketing.

What is Business to Business Marketing?

Business-to-business (B2B) marketing involves transactions between businesses rather than between businesses and consumers. - It focuses on building relationships and creating value through cooperation between companies.

What is the difference between B2B and Consumer Marketing?

B2B marketing involves active buyers and sellers, while consumer marketing often targets passive customers. - The buying process in B2B is more complex, involving multiple stakeholders and longer decision-making cycles.

What is the Network and Relationships approach to marketing?

• Trust and commitment are essential for successful B2B relationships.

• The focus is on ongoing interactions rather than single transactions, emphasizing collaboration for mutual benefit.

What is derived demand in business marketing?

Demand in the B2B market is influenced by consumer demand for final products.

What is Inelastic Demand in Business Marketing?

Changes in price do not significantly affect the demand for business products.

What is joint demand in Business?

Some products are used together, creating interdependent demand.

What are two classifications of Business Customers?

• Major categories include producers (manufacturers), resellers (wholesalers and retailers), government entities, and nonprofits.

• The North American Industry Classification System (NAICS) helps identify and analyze business markets.

What is Business Buying Behaviour?

Involves a buying center, which includes various roles such as initiators, influencers, gatekeepers, deciders, purchasers, and users.

What is New Task Buy in Business Buying Behaviour?

First-time purchase of a product.

What is Modified Rebuy in Business Buying Behaviour?

Changes made to a previous order.

What is Straight Rebuy in Business Buying Behaviour?

Reordering the same product without changes.

What are Online Business Marketing Trends?

• Increasing use of digital marketing strategies, including mobile marketing and content marketing.

• Social media platforms like LinkedIn are becoming important for B2B marketing and relationship building.

Why is it important to understand Markets?

A market consists of people or organizations with needs and wants who have the ability and willingness to make purchases

What is market segmentation?

Market segmentation is the process of dividing a market into smaller, identifiable groups that share similar characteristics and needs. - It helps marketers tailor their strategies to meet the specific needs of different segments.

What is Geographic Segmentation?(Consumer Market Segmentation)

Based on location (region, climate, etc.).

What is Demographic Segmentation?(Consumer Market Segmentation)

Based on characteristics like age, gender, income, and family life-cycle.

What is Psychographic Segmentation?(Consumer Market Segmentation)

Based on personality, motives, lifestyles, and values.

What are benefits Sought?(Consumer Market Segmentation)

Groups customers based on the benefits they seek from a product.

What is Usage Segmentation? (Consumer Market Segmentation)

Divides the market by the amount of product consumed.

How are Business Markets segmented?

Segmented based on company characteristics (size, industry) and buying processes.

What is some criteria for successful market segmentation? (SIAR)

• Substantial: Large enough to be profitable.

• Identifiable and Measurable: Clearly defined and quantifiable.

• Accessible: Reachable through marketing efforts.

• Responsive: Must respond differently to marketing strategies compared to other segments.

What are the 6 steps in Segmenting Markets?

• Select a Market or Product Category: Identify the area of focus.

• Choose Segmentation Bases: Decide on the criteria for segmentation.

• Select Segmentation Descriptors: Define the characteristics of each segment.

• Profile and Analyze Segments: Understand the needs and behaviors of each segment.

• Select Target Markets: Choose which segments to focus on.

• Design and Implement Marketing Mix: Tailor strategies (product, price, place, promotion) for each target market.

What is Undifferentiated Targeting?

One marketing mix for the entire market.

What is concentrated targeting?

Focus on a single market segment.

What is Multisegment targeting?

Target multiple segments with distinct marketing mixes.

What is One-to-One Marketing?

Personalized marketing strategies for individual customers.

What is Positioning?

Positioning involves influencing how consumers perceive a brand or product relative to competitors.

What is Product Differentiation?

Highlighting unique features to distinguish from competitors.