Marketing Final

Marketing

The process of creating, communicating, delivering, and exchanging offerings that have value for customers, clients, and society.

Importance of Marketing

Builds brand awareness, communicates value, and meets customer needs profitably.

Marketing Mix (4 P's)

Tools marketers use to influence demand.

Product

What is offered to meet customer needs. Variety, design, features, brand name.

Price

What customer pays. Discounts, payment terms, psychological pricing.

Place

Where and how the product is delivered. Distribution channels, location, logistics.

Promotion

Communicating with target customers. Ads, sales, public relations, social media.

Promotional Mix

The specific blend of tools to promote a product.

Direct Marketing

Directly reaching target consumers (email, mailers). Personalized promotions.

Personal Selling

One-on-one interaction. Complex sales (cars, homes).

Public Relations (PR)

Creating a favorable public image. Press releases, lobbying.

Sales Promotion

Short-term incentives. Coupons, contests.

Advertising

Paid, non-personal communication. TV, digital ads, billboards.

Market Segmentation

Dividing a market into groups with shared characteristics.

Psychographic Segmentation

Based on lifestyle, values, personality. Marketing yoga gear to mindful consumers.

Demographic Segmentation

Age, gender, income, education. Kids' toys targeted by age range.

Behavioral Segmentation

Based on usage, loyalty, benefits sought. Targeting frequent buyers with loyalty programs.

Geographic Segmentation

Based on location. Snow gear sold in colder regions.

Behavioral Segmentation Tip

Focuses on actions. Ask: What does the customer do? Frequency, loyalty, and benefits are key.

Target Market

The specific group of consumers a business aims to reach.

Utility Types

Marketing adds value through: Form, Time, Place, Possession.

Target Market Strategy

Steps: Identify → Anticipate → Satisfy → Profit.

PESTLE Analysis

External factors affecting marketing strategy: Political, Economic, Societal, Technological, Legal, Environmental.

Needs

Types: States, Unstates, Real.

Exchange Process

A positive exchange occurs when value is mutual: Buyer gets benefits. Seller gains profit, loyalty.

CRM (Customer Relationship Management)

Strategy to manage a company's interaction with current and potential customers.

Ethical Marketing Practices

Practices include Transparency, Privacy, Customer Needs.

Unethical Practices

Includes Price Fixing, Hidden Fees, Inflated Sales Data, Misuse of Expenses.

Brand

A name, logo, or symbol identifying a product.

Brand Equity

Value added by brand recognition.

Brand Persona

Human traits of a brand (fun, professional).

Brand Positioning

Place a brand occupies in consumers' minds.

Value

What the customer gains.

Solution

The product provides.

Product feature

Brand Lift.

Increase in perception/awareness due to marketing

Brand Engagement.

Consumer interaction with the brand

Brand Preference.

When customers favor your brand over others

Brand Preference.

National

Owned by a manufacturer (Nike).

Private

Store brand (Great Value at Walmart).

Licensed

Permission to use another's brand (Disney merch).

Co-brand

Two brands collaborating (Taco Bell x Doritos).

Core

Basic need (communication).

Actual

Physical product (iPhone).

Augmented

Added value (warranty, support).

Depth

Number of versions of a product.

Filling

Adding more products within a line.

Intro

Low sales, high marketing cost.

Growth

Sales rise, profit increases.

Maturity

Sales peak, competition increases.

Decline

Sales fall, product phased out.

Convenience

Frequent, low-effort (gum).

Shopping

Compared carefully (clothes, tech).

Specialty

Unique, high-end (luxury watch).

Unsought

Not actively looked for (insurance).

Big Data

Large sets of consumer data.

Primary Data

Collected firsthand (surveys).

Secondary Data

Pre-existing info (reports).

Focus Groups

Small group feedback.

Quantitative

Numbers (surveys, stats).

Qualitative

Feelings, motives (interviews).

When is personal selling used

Complex, high-involvement purchases.

Approach

Greeting, build rapport.

Closing

Sealing the deal.

Standing Room Close

"Last chance!" urgency tactic.

Incentives

Bonus gifts.

Premiums

Free items with purchase.

Sweepstakes

Enter-to-win contests.

Loyalty Program

Points-based rewards.

Lobbying

Influencing lawmakers.

Publicity

Free media attention.

Public Affairs

Community engagement.

Press Relations

Media management.

Noise

Distractions that distort message.

Feedback Loop

Receiver response; critical for improvement.

IMC - Integrated Marketing Communications

Ensures all messages are unified and consistent across channels.

Rational

Logical, fact-based.

Emotional

Triggers feelings (love, fear, happiness).

Marketing Plan

A strategic roadmap including objectives, strategies, and KPIs.

Price Skimming

High initial price to maximize early profits.

Cost-Based

Price = Cost + markup.

Psychological

Pricing that appears cheaper ($9.99).

Penetration

Low initial price to enter market.

KPI

Key performance indicators (sales growth, CTR).

ROI

(Return - Investment) / Investment.

Profit

Revenue - Costs.

Gross Profit Margin

(Revenue - COGS) / Revenue.

Social Responsibility

Operating in an ethical and sustainable way.

Trucking

Short, flexible hauls.

Air

Fast but expensive.

Rail

Heavy/bulk over land.

Water

Cheapest, slowest.

Retailer

Sells to end consumer.

Wholesaler

Sells to retailers.

Distributor

Facilitates delivery & storage.

Agent

Intermediary who doesn't own goods.

Direct

Producer → Consumer.

Indirect

Producer → Intermediary → Consumer.

Marketing Mix

the combination of the 4 P's (Product, Price, Place, Promotion) used to market a product

PR (Public Relations)

managing a brand's reputation and public image