Marketing Exam 1

Definition of Marketing

The activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Marketing is everything (Rob’s fav definition) everything communicates

Marketing Mix Order

1. Product

2. Price

3. Place

4. Promotion

Product

Creating Value

Price

Capturing Value

Place

Delivering Value

Promotion

Communicating Value

Value Equation

Percieved Benefits / Percieved Costs

Evolution of Marketing

Production→Sales→Marketing→Value

Sales

Incentives to Buy

Marketing

What people want and need

Value

Finding companies with the values that we believe in and that provide benefits; express values

Marketing Strategy

A plan of action or policy designed to achieve a major or overall aim, plans are useless but planning is very important.

A Good Strategy

Application of Strength against Weakness. Strength applied to the most promising opportunity; Mission-type tactics:train well.

Customer Excellence

Building strong relationships with customers by providing great service and creating customer loyalty.

Operational Excellence

Being very efficient at getting products to customers, often allowing a company to offer lower prices or better convenience.

Product Excellence

Offering products with high quality, strong features, innovation, or a respected brand that competitors have difficulty matching.

Locational Excellence

Having a better or more convenient location than competitors. This can include physical stores or strong access to customers.

Question Marks

low market share, high market growth

Cash cows

low market growth, high market sha

Dogs

low market share, low market growth

Stars

high market share, high market growth

Boston Consulting Group Matrix Example

Market Penetration

A growth strategy that employs the existing marketing mix and focuses on the firm’s efforts on exisitng customers.

Product Development

A growth strategy that offers a new product or service to a firm’s current target market.

Market Development

A growth strategy that employes the existing marketing offering to reach new market segments, whether domestic or international.

Diversification

A growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve.

Related Diversification

A growth strategy whereby the current target market and/or marketing mix shares something in common with the new opportunity.

6M of Marcom

-       Who are your customers, how do you get new people, what's the story or message

-       Point of differentiation (how are we different) Point of Parity (how are we the same)

-       What’s the media, where do we put the story, how often to display, who do we go after

Model of Communications

Mission & Market

Strategic Intent:

• What are the objectives of the communication?

• To whom is the communication addressed?

Message & Media

Strategic Exection:

• What is the story to be communicated?

• Where and how will the story be delivered?

Money & Measurement

Strategic Impact:

• How much will be spent to communicate?

• How will impact be assessed?

Marketing Plan Part 1

Planning Phase: Step 1- business mission and objectives & Step 2 - situation analysis + SWOT

Marketing Plan Part 2

Implementation Phase: Step 3 - identify opportunities & Step 4 - implement marketing mix

Marketing Plan Part 3

Control Phase: Step 5 - evaluate performance using marketing metrics

Strengths

Internal, Positive

Weaknesses

Internal, Negative

Opportunities

External, Positive

Threats

External, Negative

Market Segmentation

The process of dividing the market into groups of customers with different needs, wants, or characteristics.

Target Marketing or targeting

The process of evaluating the attractiveness of various segments and then deciding which to pursue as a market.

Market positioning

The process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.

Model of Communications

Attitudes

can change due to political stance of companies

Memory

they remember something about it

Action

need revenue and sales

Awarenes

hope audience interprets the product how you want

Inbound Marketing

Marketing activities that draw the attention of customers through blogs, X, LinkedIN, and other online sources, rather than using more traditional activities that require having to go out to get customers’ attention, such as making a sales call.

Outbound Marketing

-       Goal - initiate a conversation and send a message to target consumers

-       Search, display, and video ads

Zero Moment of Truth

3 key moments: Advertisements, consume, like or don’t

• Buy product and like it but go online and share

• You are searching for things and believeing the customer reviews.