Marketing Principles Exam 1 Study Guide

What is 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

marketing responsibilities

identify, satisfy, and retain customers

Difference between marketing concept and selling concept

the marketing concept reflects a management orientation that focuses on identifying and satisfying consumer needs to ensure the organization's long-term profitability
the selling concept reflects the tendency to focus on selling current products and services to customers

marketing management

the process of setting marketing goals, the planning and execution of activities to meet these goals, and measuring progress toward their achievement

marketing mix

the building blocks that a marketer can adjust to affect the overall marketing strategy of a product

4 P's of Marketing (Plus others)

Product, Price, Place, and Promotion + People, Physical evidence, process

marketing research

the process of collecting and analyzing information from and about consumers to influence marketing strategy and decisions
information allows you to make right business decisions and have a competitive edge

consumer studies

to find demographics, behaviors, and lifestyles useful for segmentation

research topics

brand perception, new product development, advertising concept, satisfaction

research question

always start with the research question, it drives the entire effort

types of research designs

causal- quantitative and focuses on discovering the cause-and-effect relationship between variables
descriptive- quantitative and focuses on determining how often something occurs or how two things are related to each other
exploratory- focuses on gaining ideas or insights and is particularly helpful in funneling broad research questions into more precise ones

primary vs secondary data collection

primary data is new data that marketers must collect when no data exists to help marketing researchers pursue answers to research
secondary data is pre-existing and was originally gathered for another purpose but is helpful for current research projects

qualitative vs quantitative research methods

qualitative research focuses on the collection and analysis of non-numeric data to understand thoughts, ideas, and opinions such as "who", "what", "how", or "why"
quantitative research focuses on the collection and analysis of numeric data for the purpose of statistical analysis

research matrix

primary quantitative
primary qualitative
secondary quantitative
secondary qualitative

research methods

secondary research (monitor competitor and market trends)
depth interview (with people who are knowledgeable about the general subject under investigation)
focus groups (a set of individuals from whom a researcher wishes to gain insights using a structured interview process)
case analysis (intensive studies of representative examples of the subject under study)
projective methods( form of research that uses indirect methods that causes study participants to reveal their feelings, thoughts, and opinions)
experiments
surveys (polls designed to gather input, information, or opinions from a specific population of people)

designing a survey

8 steps

brand awareness and brand image

recall and recognition

net promoter score

a specific type of survey, used by many marketers, to measure the experience customers have with brands; a brand's net promoter score is calculated by subtracting the percentage of detractors in the survey from the percentage of promoters
promoters (scores of 9 and 10)- loyal enthusiasts
passives (scores of 7 and 8)- satisfied but not enthusiastic
detractors (scores of 0 to 6)- unhappy customers
NPS= %promoters-%detractors

survey design mistakes

1) Failing to build the survey around the research question
2) Failing to understand the survey population
3) Forgetting to introduce your survey
4) Asking too many questions
5) Asking too few questions
6) Structuring questions poorly
7) Putting the most important questions at the end of the survey
8) Requiring participants to answer all the questions
and more

marketing segmentation

breaking down large groups into smaller ones depending on shared characteristics

segmentation approaches

consumer market (end-use, geographic, psychographic, etc)
business market (geographic, firmographics, buyer approach, etc)

characteristics of useful segmentation

identifiable, sizable, stable, accessible, congruent

target market selection

segment characteristics, competition, company fit

targeted marketing strategy

undifferentiated (marketer only uses one strategy for the entire market, aka mass marketing)
differentiated (the company targets more than one market segment and develops a unique marketing mix to target each segment separately)
concentrated (the company chooses only one segment to target and customizes a marketing mix for that target market)

buyer persona

tangible face for the target market

positioning

helps customers perceive the product or service is the brand for them

positioning terminology

position (the space in the market for which the product is ideally suited)
positioning (strategic process of developing a market position for a product)
position statement (succinct expression of a product's market position)
USP (unique selling proposition)

positioning strategies

being first
being a follower
repositioning (new niche to compete)

brand fit

the positioning of a brand and their product MUST ALIGN

positioning problems

confused (product claims to have many benefits or contradictory benefits)
doubtful (touts benefits that are too good to be true)
irrelevant (benefits or differentiation that nobody cares about)
over-positioning (too narrow)
under-positioning (no clear advantage or differentiation)

positioning statement template

should guide every choice a marketer makes
best positioning statements are developed collaboratively

positioning matrix

visualization of how various products in a market are positioned

buyer behavior process

stages that a consumer goes through when deciding to purchase and consume a product
need recognition (consumer recognizes that he needs to be filled)
information search (consumer searches for information regarding the options for purchase or consumption)
evaluation of alternatives (consumer looks at various viable options and weighs the upsides and downsides of each)
purchase (consumer decides to purchase, including where and how)
reaction (consumer has consumed the product and is pleased or displeased)

need

the gap between the current state and desired state

need recognition

internal cue (cue within a person that signals a need)
external cue (cue in the environment that signals a need)

power of marketing

it can shape a person's perception of what they need

information search

consumer searches for information regarding the options for purchase or consumption
includes external (outside sources) and internal (past experiences or memory) searches
leads to the consideration set

how to market during the information search stage

-make sure relevant information is available and easily accessible
-research to find out when and where customers are searching for information (and making sure information is found there)
-if online search is important, design or enhance the website in ways that improve its visibility within one or more search engines (SEO).

evaluation of alternatives

marketers need to match their product to their customers values

purchase decision

the point when a consumer chooses which product to purchase and also chooses where, when, and how to purchase the product

reaction

customer compares experience to their expectations

outcomes

expectations->experience->conclusions

how a marketer can decrease buyer remorse

following up after their purchase

types of purchases

low involvement (purchase that doesn't cost much or there is no risk for the consumer if he makes a purchase mistake)
high involvement (purchase that are often more costly and riskier to the consumer)

services

often don't know what the outcome will be before purchase, thus more risky

consumer business vs business to business

consumer markets often handle smaller amounts of money, since consumers make purchases based on their individual requirements. With consumer market purchases, sales often go directly to the business' profits. In contrast, B2B markets handle large amounts of money because of the scale of purchases.