Marketing mix and Marketing environment/ MOD 1

Marketing

the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”4

Marketing concept

business philosophy that holds that long-term profitability is best achieved satisfying the needs of a particular target customer, or market segment(s).

Marketing Mix

four components are called the “Four Ps” of marketing- Product, Price, Place ,Promotion

4 Product Life Cycle stages

Introduction, Growth, Maturity, Decline

Product Mix

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

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

Good

Physical product offering manufactured by a business

Services

Intangible product offering by a business

Customer satisfaction

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

Profit

The amount gained by a company, calculated by the difference between the amount earned from the sale of products and the total cost to produce them and sell them in the market

Revenue

Income a company receives from the sale of goods or services

Price skimming

Pricing a new product high to increase profits

Leader pricing

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

Penetration pricing

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

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

Social media

Websites and applications where users can create, share, and communicate with others in social networks

Digital media

All of a company’s marketing efforts that use an electronic device or the Internet

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

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

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 communication

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

Place

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

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

Direct distribution

Sale of products from the producer to the end user without an intermediary

Indirect distribution

Sale of products where intermediaries assist in moving goods and services from producers to end users

Vertical marketing system

Cooperation between multiple levels of a distribution channel

Corporate vertical marketing

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

Administered vertical system

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

Contractual vertical system

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

Channel conflict

When a company sells products directly to consumers, in competition with the company’s own channel partners

Omnichannel

Content strategy used by organizations to improve customer experience through creating seamless, consistent engagement across all channels

PEST 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

Generation gaps

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

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