D077 Concepts in Marketing, Sales, and Customer Contact Module 1

Marketing

Business function that identifies, satisfies, and retains customers through a set of activities related to creating, communicating, delivering, and exchanging offerings that have value for the customer

What is the function of marketing?

to bring value to customers. Marketing creates this value through activities that create, communicate, deliver, and exchange offerings.

Marketing concept

Business philosophy holding that a company's goals can best be achieved by identifying and satisfying the target customer's needs and wants

Customer satisfaction

A measure of how products or services delivered by a company meet or exceed customer expectations

What is the difference between sales and marketing?

Sales incorporates actually selling the company's products or service to its customers, while marketing is the process of communicating the value of a product or service to customers so that the product or service sells

What is the difference between a good and a service. Identify if the product is a good or service- Arms and Hammer Baking soda, iPhone, Crest Toothpaste, Pedicure

Good: Arms and Hammer Baking soda, iPhone, Crest Toothpaste Service: Pedicure

Marketing mix

The controllable elements in the marketing environment, made up of the product, price, promotion, and place; also known as the 4Ps of marketing

Product

Marketers use the term _______ to refer to goods, services, or even ideas.2 A ________ is something offered in exchange.

Place

Element of the marketing mix involved with getting the product from the producer to the customer

Price

Element of the marketing mix involved with the cost of a product, or what a company asks for from the customer in exchange for the product

Promotion

Element of the marketing mix involving methods for informing and influencing customers to buy a product, including traditional advertising, sales promotion, public relations, personal selling, and digital marketing

What is the product life cycle stage?

Phases of a product, from introduction to growth, maturation, and decline

Introductory

Low sales, low profit, little competition

Growth

increasing sales, increasing profit, new competition

Maturity

high sales, high but declining profit, high competition

Decline

declining sales, declining profis, high competition and falling demand

Product mix

The complete range of products offered for sale by a company throughout its product lines, also known as the product assortment

Product width

the number of different product lines, or series of products a company offers

Product lines

Series of similar products focused on a sector that a company creates under a single brand

Product depth

Number of versions offered for each product in the product line

Skimming

Pricing a new product high to increase profits

Penetration pricing

Pricing a new product lower than the perceived market price to attract market share

Leader pricing

Pricing products below normal markup or at cost to attract customers to a store where they would not normally shop

Bundling

Grouping related products together to encourage customers to buy both

Prestige pricing

Raising the price of a product to increase the perception of its value

Competitive pricing

Setting the price of a product according to the price of competitive products

Market share

A company's percentage of the total sales in a particular market

Advertiing

Paid form of nonpersonal promotion

Personal selling

A type of selling that uses person-to-person interaction to sell products and services

Sales promotion

Marketing activities such as coupons that provide a direct incentive for the customer to make an immediate purchase of the product

Public relations

The practice of creating and maintaining public goodwill through publicity and nonpaid forms of communication

Influencer marketing

Using paid brand advocates who have large social followings with a target audience to promote a product or brand on social media

E-commerce

Buying and selling of goods and services over the Internet using websites and/or mobile applications

Content marketing

Promotion through the creation and sharing of messages and materials designed to stimulate interest in a product

Guerilla marketing

Innovative, unconventional promotional tactics that engage customers through unique experiences

Integrated marketing communications (IMC)

Immersive and targeted communication with customers to help move them through the various stages of the buying process

Omnichannel communication

Unified and consistent communication with customers across all channels a company employs

Distribution

Process of acquiring raw materials and moving materials and finished products from the producer to customers

Supply chain

System a company uses to acquire raw material, produce products, and deliver the products and services to customers

Vertical marketing systems

System a company uses to acquire raw material, produce products, and deliver the products and services to customers

Corporate vertical marketing system

Ownership by a single company of all levels of production and distribution

Contractual vertical marketing system

Cooperation between levels of a distribution channel as described by a formal agreement

Administered vertical marketing system

Cooperation between levels of a distribution channel where one member sets the terms due to its size and influence

Uncontrollable elements in the marketing environment

competitive, natural/ecological, political-legal, socio-cultural, demographic, technological, and economic

Controllable elements in the marketing environment

The marketing mix (product, price, promotion, and place)

PEST (political, economic, social, and technological) analysis

Form of analysis used to isolate opportunities and threats in the marketing environment

Business cycle

Expansions and contractions in the level of economic activities (business fluctuations) around a long-term growth trend

Phases of the business cycle

expansion, peak, contraction, and trough

Consumer confidence

Statistical measure of consumers' level of optimism about current and future economic conditions

Inflation

General increase in prices of goods and services over time and decrease in the purchasing power of money

Generation gaps

Differences in outlook, opinions, values, and cultural norms between people of different generations

Ethical considerations for product

how products are created and their impact on communities and the environment

Ethical considerations for promotion

avoid deception, respect customer contact, and consider the appropriateness of a message for the audience

Ethical considerations for place

entire distribution channel and whether it delivers value to customers, how the production and distribution of their products affects the environment and society

Price fixing (collusion)

When two or more competing companies agree (or collude) on how much to charge for a product or service

Price discrimination

When a company charges different prices to buyers of the same product in order to maximize profit

Predatory pricing (undercutting)

When a company prices a product or service extremely low to drive out competition

Bait and switch

When a company advertises a product for a low price and "switches" a customer to a higher-priced product

Price gouging

When a company has a monopoly on the market and prices products or services overly high to drive profit

Basic objectives of all marketing communication methods

communicate, compete, and convince