Principles of Marketing MidTerm

Marketing

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for a variety of stakeholders

4 Ps

Product, Price, Promotion, People 

External Marketing Environment

Competitors, social factors, demographics, technology, economics, environmental, political, legal

Competitive analysis

understanding who are their direct competitors, indirect competitors, and if the customers are satisfied

Industry analysis

understanding the current trends in the industry and new laws impacting the industry

Pestle

Political, environmental, social factors, technology, economics, legal

SWOT

A companies strengths, weaknesses, opportunities, and threats

Market segment

A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs 

Market segmentation

The process of dividing a market into meaningful, relatively similar, and identifiable segments or groups 

Demographic segmentation

Income, Ethnicity, housing life cycle (age, children, marital status)

Psychological segmentation

Personality, motives, lifestyles

Behavioral segmentation

The process of grouping customers based on the behaviors they exhibit, including what they buy, where they buy, when they buy, and how they buy

80/20 principles

A principle holding that 20 percent of all customers generate 80 percent of the demand

Positioning

Developing a specific marketing mix to influence potential customer’s overall perception of a brand, product line, or organization in general 

Positioning

Firms use a variety of bases for positioning such as attribute, product user, price and quality, product class, use or application, competitor, emotion

Attribute

A product is associated with an attribute, product feature, or customer benefit

Product user

This positioning base focuses on a personality or type of user

Price and quality

This positioning base may stress high price as a signal of quality or emphasize low price as an indication of value

Product class

This associates the product with a particular category of products

Use or application

Stressing uses or applications can be an effective means of positioning a product with buyers

Competitor

Positioning against competitors is part of any positioning strategy

Emotion

Positioning using emotion focuses on how the product makes customers feel

Product differentiation

A positioning strategy that some firms use to distinguish their products from those of the competitors 

Buyer persona

Semi-fictional representation of a company's ideal customer, based on real-world data 

Market research

The process of planning, collecting, and analyzing data relevant to your marketing planning 

Research design

Specifies which research questions must be answered, how and when the data will be gathered, and how the data will be organized 

Primary research

Information that is collected for the first time; used for solving the particular problem under investigation 

Primary research methods

Surveys, observations, experiments, scanner based research, neuromarketing

Survey research

The most popular technique for gathering primary data, in

which a researcher interacts with people to obtain facts, opinions, and attitudes

Observation research

A research method that relies on four types of observation: people watching people, people watching an activity, machines watching people, and machines watching an activity

Experiment research

A method of gathering primary data in which the researcher alters one or more variables while observing the effects of those alterations on another variable

Scanner-based research

A system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy

Neuromarketing research

A field of marketing that studies the body’s responses to

marketing stimuli

Secondary research

Data previously collected for any purpose other than the one at hand

Secondary Research Sources

Statista Consumer & Brand Reports, Statista Consumer Insights, US Census Data

Product

Everything, both favorable and unfavorable, that a person receives in an exchange. It can be a tangible good and can be intangible 

Product line

A group of closely related product items 

Product mix 

All products that an organization sells 

Product line extension

Introducing new variations or items under an existing brand name within the same product category

Six categories of new products

New to the world, new product line, additions to existing product line, improvements or revisions to products, repositioned products, cost reductions

New-to-the-world products 

Create an entirely new market

New-product line 

Allow a firm to enter an established market

Additions to existing product lines 

Supplements a firm’s established line

Improvements or revisions of existing products

Significantly or slightly changed existing products 

Repositioned products

Targeted at new markets or market segments 

Cost reductions

Provide performance similar to competing brands at a reduced price