marketing exam 1

marketing

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

core aspects of marketing

1. satisfying customer needs and wants

2. creating value with the marketing mix (4 P’s)

3. impacting various stakeholders

4. entails an exchange

5. performed by individuals and organizations

marketing mix

the controllable set of decisions or activities that the firm uses to respond to the wants of its target market

• product

• price

• place

• promotion

product

variety of offerings, including goods, services, and ideas to satisfy customer needs

price

everything a buyer gives up (money, time, energy) in exchange for the product/service

place

all marketing processes necessary to get the product to the right customer when they want it (aka supply chain management)

promotion

communication by marketer that informs, persuades, and reminds potential buyers about a product/service to influence their buying decisions and elicit a response

value-based marketing era

• value

• value cocreation

• relational orientation

• customer relationship management (CRM)

value

a fair return in goods or services for their money/scarce time

value cocreation

customers act as collaborators to create a product or service that appeals mostly to them, such that it offers optimal value

relational orientation

marketers think about their customers in terms of relationships rather than transactions

customer relationship management (CRM)

business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm’s most valued customers

how does marketing create value?/how do firms become more value driven?

• build relationships with customers

• gather and analyze information

• balance benefits and costs

• connect with customers using social and mobile media

value stems from 4 main activities

1. adding value

2. using marketing analytics

3. embracing social and mobile marketing

4. ethical and societal dilemma: engaging in conscious marketing

value-oriented marketers:

measure the benefits that customers perceive against the cost of their offerings (using available customer data)

marketing analytics

companies collect massive amounts of data about how, when, why, where, and what people buy

conscious marketing

making socially responsible activities an integral component of corporate strategies

marketing strategy

identifies firm’s target market, a related marketing mix, and the bases on which the firm plans to build a sustainable competitive advantage

sustainable competitive advantage

an advantage over the competition that is not easily copied and can be maintained over a long period of time

macro strategies for developing customer value

• customer excellence

• operational excellence

• product excellence

• locational excellence

customer excellence

retaining loyal customers; providing outstanding customer service

operational excellence

efficient operations → excellent supply chain management → strong relationship with suppliers

product excellence

provide products with high perceived value and effective branding and positioning

the marketing plan

1. define the business mission

2. SWOT analysis

3. identifying and evaluating opportunities using STP

4. implement marketing mix and allocate resources

5. evaluate performance using marketing metrics

mission statement

broad description of a firm’s objectives and the scope of activities it plans to undertake; answers 2 questions

• what type of business are we?

• what do we need to do to accomplish our goals and objectives

SWOT analysis

internal strengths, internal weaknesses, external opportunities, external threats

STP

segmentation, targeting, positioning

product and value creation

successful products and services are those that customers perceive as valuable enough to purchase

price and value capture

what a customer is willing to pay for a product they perceive as good value

place and value delivery

product must be readily accessible when and where the customer wants it

promotion and value communication

integrated marketing communications (imc)

integrated marketing communications (imc)

advertising, personal selling, sales promotion, public relations, direct marketing, online marketing

metric

measuring system that quantifies a trend, dynamic, or characteristic; explains past and projects future

growth strategies

• market penetration

• market development

• product development

• diversification

market penetration

current customers and marketing mix; encourage users to consume more of current product

market development

current products/services, new markets

product development

new product/service, current target market

diversification

new product/service, new market segment

related diversification

current target market and/or marketing mix shares something in common with the new opportunity

unrelated diversification

new business lacks any common elements with the present business

4E framework for digital marketing

1. excite the customer

2. educate the customer

3. experience the product/service

4. engage the customer

7C online marketing framework

1. core goals

2. context elements

3. content

4. community

5. communication

6. commerce

7. connection

SEM

search engine marketing

paid search

method used by firms to appear higher up in the search results of a search engine

blog

online diary with periodic posts that allow people to share thoughts, opinions, feelings with the entire world (aka weblog) corporate blogs are a new form of marketing

microblog

short sentences, videos, images (ex: twitter)

personal blog

website created by and for individuals; few marketing implications

wheel of social media engagement

• information effect

• connected effect

• network effect

• dynamic effect

• timeliness effect

information effect

relevant information is spread by firms and individuals to other members of the social network

connected effect

satisfies humans’ innate need to connect with others

network effect

every post is spread instantaneously across social media

dynamic effect

information is exchanged to network participants through back and forth communications; examines how people flow in and out of networked communities as their interests change

timeliness effect

firms must engage with the customer at the right place and time

7 primary motivations for mobile app usage

1. need for “me time”

2. need to socialize

3. need to shop (show rooming)

4. need to accomplish

5. need to prepare

6. need to discover

7. need to self-express

how do firms engage their customers?

listen: determine objectives/strategies based on consumer preferences and attitudes

analyze: different performance metrics (hits, page views, bounce rate, click path, conversion rate, keyword analysis)

do: develop and implement campaigns using social media

hit

request for a file made by web browsers and search engines

page view

number of times an internet page gets viewed by any visitor

bounce rate

percentage of times a viewer leaves website immediately

click path

shows how users proceed through information on a website

conversion rate

indicates what percentage of visitors or potential customers click, buy, or donate at the site

keyword analysis

evaluation of what words people use to search on the internet for their products/services

influencer marketing

uses opinion leaders, popular on social media, to drive marketing messages to a targeted audience, firms hire (or encourage) these well-known names to promote brand messages to their networks of followers

assessing the efficacy of influencers

relevance

reach

response

return

relevance

encompasses both the focal influencer and his or her followers and how they link with the brand and its message

reach

the percentage of a target population exposed to a specific marketing communication at least once

response

once followers engage, brand needs them to respond in a way that benefits them

return

measure ROI

influencer marketing chain of events

brand and its message → influencer → their followers → impact

celebrity

large following, widely recognized

micro influencer

modest following, niche interest

blog influencer

writer with attracted readers and subscribers of that content

social media influencer

popular on social platforms

specialized influencer

key opinion leader/expert in a specific field

ethical considerations for influencer marketing

• fraudulent influence

• disclosing advertising

• sincerity

fraudulent influence

incentive to boost follower numbers accordingly has le dot various unethical behaviors

disclosing advertising

intent if an influencer is being paid to promote a product, that information should be clear in the post

sincerity

followers must believe that the influencer actually likes and appreciates the product

conscious marketing

entails a sense of purpose for the firm that is higher than simply making a profit

principles of conscious marketing

1. recognition of marketing’s greater purpose (corporate social responsibility)

2. consideration of stakeholders and their interdependence (employees, their families)

3. the presence of conscious leadership, creating a corporate culture

4. the understanding that decisions are ethically based

corporate social responsibility

ethical performance, social performance, environmental performance

key conscious marketing stakeholders

employees and their families, current and potential customers, marketplace: partners and competitors, society: community and environment

integrating conscious marketing throughout the firm: leadership and culture (3 phases)

• planning phase

• implementation phase

• control phase

planning phase

mission/vision statements set the overall tone for conscious marketing

implementation phase

firms identify potential markets and ways to deliver the four Ps to them

control phase

managers are evaluated on their actions from a conscious marketing perspective

ethical decision-making framework

1. identify issues

2. gather information and identify stakeholders

3. brainstorm and evaluate alternatives

4. choose a course of action

the immediate environment

• company capabilities

• competitors

• corporate partners

• physical environment

company capabilities

firms should focus on satisfying customer needs that match their core competencies

competitors

know their strengths, weaknesses, and likely reactions to firm’s marketing activities

corporate partners

parties that work with the focal firm

physical environment

land, water, air, living organisms

microenvironmental factors

• culture

• demographics

• social trends

• technological advances

• economic situation

• political/legal environment

culture

shared meanings, beliefs, morals, values, and customs of a group of people transmitted by words, literature, and institutions

demographics

characteristics of the human population and segments, especially those used to identify consumers markets (income, education, gender, ethnicity)

social trends

• sustainability: UN SDGs

• health and wellness

• efficient utilization and distribution of food

technological advances

new products/services, new forms of communication, new retail channels; AI, robotics, internet of things (IoT), privacy concerns

economic situation

affects the way consumers buy products/services and spend money (inflation, foreign currency fluctuations, interest rates)

political/legal environment

political parties, government organizations, legislation and laws

consumer decision process

1. need recognition

2. search for information

3. evaluation of alternatives

4. purchase and consumption

5. post-purchase outcomes

want

good/service that isn’t needed but desired