Introduction to Marketing

marketing

the set of strategies and activities by which companies acquire and engage customers, build strong customer relationships, and create superior customer value in order to capture value from customers in return

wants

the form human needs take as they are shaped by culture and individual personality

needs

states of felt deprivation

demands

human wants that are backed by buying power

market offerings

some combination of products, services, information, or experiences, offered to a market to satisfy a need or want

market myopia

paying more attention to the specific products than to the benefits and experiences productd

exchange

the act of obtaining a desired object from someone by offering something in return

market

set of actual and potential buyers

consumers market when they

search for products, interact with companies to obtain information, make purchases

marketing management

the art and science of choosing target markets and building profitable relationships with them

value propositions

a brands value proposition is the set of benefits or values it promises to deliver to customers to satisfy their needs

The 4 P’s

product, price, promotion, place

integrated marketing program

a comprehensive plan that communicated and delivers intended value

customer relationship management

the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

customer perceived value

the difference between total customer perceived benefits and customer costs

customer satisfaction

the extent to which perceived performance matches a buyer’s expectations

customer engagement marketing

fosters direct and continuous customer involvement in shaping brand conversations, experiences, and community

customer generated marketing

brand exchanges created by consumers themselves. consumers are playing an increasing role In shaping brand experiences

partner relationship management

involves working closely with partners in other company departments and outside the company to jointly bring greater value to customers

customer lifetime value

the value of the entire stream of purchases that the customer would make over a lifetime of patronage

customer equity

the total combined customer lifetime values of all the company’s customers

digital and social media marketing

involves using digital marketing tools such as websites, social media, mobile ads and apps, online videos, email, and blogs that engage consumers anywhere

mobile marketing

using mobile channels to stimulate immediate buying, make shopping easier, and enrich the brand experience

big data and ai

brands can use big data to gain deep customer insights, personalize, marketing offers, and improve customer engagements and services

sustainable marketing

corporate ethics and social responsibility have become important for every business

strategic planning

the process of developing and maintaining a strategic fit between the organization’s goals and capabilities, and its changing marketing opportunities

major steps in strategic planning

defining the company mission, setting company objectives and goals, designing the business portfolio, planning marketing and other functional strategies

mission statement

the organization’s purpose; what it wants to accomplish in the larger environment

business portfolio

the collection of businesses and products that make up the company

portfolio analysis

a major activity in strategic planning whereby management evaluates the products and businesses that make up the company

customer value-driven marketing strategy

the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships

market segmentation

the division of a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate products or marketing mixes

market segment

a group of consumers who respond in a similar way to a given set of marketing efforts

market targeting

the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter

market positioning

the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

positioning

arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products from competing brands and give them the greatest advantage in their target markets

marketing mix

the set of controllable, tactical marketing tools- product, price place, and promotion- that the firm blends to produce the response it wants in the target market

market implementation

turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives

return on marketing investing (marketing row)

net return from a marketing investment divided by the costs of the marketing investment

marketing environment

the actors and forces outside marketing that affect marketing management ability to build and maintain successful relationship with target customers

microenvironment

the actors close to the company that affect its ability to serve its customers- the company, suppliers, marketing intermediaries, customer markets, competitors, and publics

macroenvironment

the larger societal forces that affect the microenvironment- demographics, economic,  natural, technological, political, and cultural forces

suppliers

Provide the resources to produce goods and services

marketing intermediaries

firms that help the company to promote, finance, sell, and distribute its goods to final buyers

demography

the study of human populations- size, density, location, age, gender, race, occupation, and other characteristics

economic environment

consumers adopted a new back-to-basics sensibility in their lifestyles and spending patterns

natural environment

the physical environment and the natural resources that are needs as inputs by marketeers or that are affected by marketing activities

environmental stability

involves developing strategies and practices that create a world economy that the plant can support indefinitely

cultural environment

consists of institutions and other forces that affect a society’s basic values, perceptions, and behaviors

core beliefs and values

persistent and are passed on from parents to children and are reinforced by schools, churches, businesses, and government

secondary beliefs and values

more open to change and include people

customer insights

fresh marketing information-based understandings of customers and the marketplace that become the basis for creating customer value, engagement, and relationships

big data

comes from marketing research, internal transaction data, and real-time data flowing from its social media monitoring, connected devices, and other digital source

marketing information system (mis)

provides information to the company’s marketing and other managers and external partners such as suppliers, resellers, and marketing service agencies

internal databases

collections of consumer and market information obtained from data sources within the company network

competitive marketing intelligence

the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment

marketing research

the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization

secondary data

  information that already exists somewhere, having been collected for another purpose

primary data

information collected for the specific purpose at hand

observational research

gathering primary data by observing relevant people, actions, and situations

ethnographic research

sending trained observers to watch and interact with consumers in their “natural environments”

survey research

gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior

experimental research

gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses

online marketing survey research

collecting primary marketing research data through internet and mobile surveys, online focus groups, and online panels and brand communities

customer relationship management (crm)

managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty

marketing analytics

analysis tools, technologies, and processes by which marketers dig out meaningful patterns in big data to gain customer insights and gauge marketing performance

artificial intelligence (ai) technology

machines think and learn in a way that looks and feels human but with a lot more analytical capacity

consumer buying behavior

final consumers- individuals and households that buy goods and services for personal consumption

consumer markets

made up of all the Individuals and households that buy or acquire goods and services for personal consumption

culture

set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions

subcultures

groups of people within a culture with shared value systems based on common life experiences and situations

motive

a need that is sufficiently pressing to direct the person to seek satisfaction of the need

motivation research

qualitative research designed to probe consumers hidden, subconscious motivations

perception

the process by which people select, organize, and interpret information to form a meaningful picture of the world

selective attention

the tendency for people to screen out most of the Information to which they are exposed

selection distortion

the tendency for people to interpret information In a way that will support what they already believe

selective retention

the tendency to remember good points made about a brand they favor and forget good points made about competing brands

attitude

a persons relatively consistent evaluations, feelings, and tendencies toward an object or idea

need recognition

the first stage of the buyer decision process, in which the consumer recognizes a problem or need triggered by internal and external stimuli

information search

the stage of the buyer decision process in which the consumer is motivated to search for more information

alternative evalutaion

the stage of the buyer decision process in which the consumer uses information to evaluate alternative brands In the choice set

purchase decision

the buyers decision about which brand to purchase

post purchase behavior

the stage of the buyer decision process Im which consumers take further action after purchase, based on their satisfaction or dissatisfaction

customer journey

the sum of the ongoing experiences consumers have with a brand that affect their buying behavior, engagement, and brand advocacy

adoption process

the mental process an individual goes through from first learning about an innovation to final regular use

market segmentation

dividing a market into smaller segments with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes

geographic segmentation

divides the market into different geographical units such as nations, regions, states, counties, cities, or even neighborhoods

demographic segmentation

divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation

psychographic segmentation

divides a market. Into different segments based on social class, lifestly, or personality characteristics

age and life cycle segmentation

divides a market into different age and life-cycle groups

gender segmentation

divides a market into different segments based on gender

income segmentation

divides a market into different income segments

behavioral segmentation

divides a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product

intermarket segmentation

forming two segments of consumers who have similar needs and buying behaviors even though they are located in different countries

target market

is a set of buyers who share common needs or characteristics that the company decides to serve

undifferentiated marketing

targets the whole market with one offer

differentiated marketing

targets several different market segments and designs separate offers for each

concentrated marketing

targets a large share of a smaller market

micromarketing

the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations

local marketing

tailoring brands and promotion to the needs and wants of local customer segments