More Marketing final guide

Knowledge Gap (Service Gap)

Occurs when a company does not understand customer expectations

Standards Gap

Occurs when a company knows expectations but fails to set proper service standards

Delivery Gap

Occurs when a company knows expectations but fails to deliver on them

Communication Gap

Occurs when advertising promises more than what is actually delivered

Perception Gap

Occurs when customers misinterpret the service they received

Four Service Gaps

Knowledge gap, standards gap, delivery gap, communication gap

Service vs Product Difference

Services are intangible, variable, and produced/consumed simultaneously

Why Services Are Harder to Evaluate

They cannot be seen or tested before purchase

Why Service Failures Are More Common Than Product Failures

Services depend on human performance and are variable

Service Failure

Occurs when a service does not meet expectations

Best Response to Service Failure

Quick recovery, apology, and compensation

Brand Equity

The value a brand adds to a product

Brand Extension

Using an existing brand name to launch a new product in a different category

Example of Brand Extension

Nike expanding from shoes into clothing

Why Brand Extension Works

Leverages existing brand equity and customer trust

Cobranding

Two brands partnering to create a product

When Cobranding Works Best

When brands complement each other

Why Brand Perception Matters

Influences loyalty, trust, and willingness to pay

Packaging Importance

Communicates brand, protects product, influences buying decisions

Product Life Cycle

The stages a product goes through from introduction to decline

Product Life Cycle Stages

Introduction, growth, maturity, decline

Introduction Stage Strategy

Build awareness and encourage trial

Growth Stage Strategy

Increase market share

Maturity Stage Strategy

Differentiate and defend market share

Decline Stage Strategy

Reduce costs or discontinue

Test Marketing

Releasing a product in a limited market to evaluate performance before full launch

Purpose of Test Marketing

Reduce risk and gather real customer feedback

Example of Test Marketing

Launching a product in one city before nationwide rollout

Ad Scheduling

The timing pattern used to run advertisements

Continuous Scheduling

Running ads consistently over time

Flighting

Running ads during specific periods and stopping in between (on/off)

Pulsing

Running ads continuously but increasing intensity during peak times

When to Use Continuous Scheduling

Everyday products with constant demand

When to Use Flighting

Seasonal or periodic demand products

When to Use Pulsing

Products with steady demand and peak seasons

Why Ad Scheduling Matters

Ensures ads reach customers at the right time

Ad Effectiveness Challenge

Difficult to measure due to many external factors influencing behavior

Public Relations (PR)

Managing a company’s reputation through unpaid or earned media

Example of PR

Press release

Difference Between PR and Advertising

PR is unpaid; advertising is paid

Localization

Adapting products and marketing strategies to fit local cultures and preferences

Example of Localization

McDonald’s menu changes in different countries

Standardization

Using the same product and marketing strategy globally

Local Positioning

Adapting to one specific culture

Global Positioning

Same message worldwide

Foreign Consumer Culture Positioning

Emphasizing product’s origin (e.g., Italian luxury)

Global Consumer Culture Positioning

Marketing a product as part of a global identity

B2B Marketing

Marketing products to businesses focusing on logic and ROI

B2C Marketing

Marketing products to individual consumers focusing on emotion and branding

Key Difference Between B2B and B2C

B2B involves multiple decision makers and longer processes

B2B Buying

Purchasing decisions made by businesses rather than individuals

Buying Center

Group of people involved in a B2B purchasing decision

Why B2B Decisions Are Complex

Multiple stakeholders influence decisions

Retail Without Physical Store

E-commerce or online retailing

Factors That Impact Retail Experience

Layout, service quality, atmosphere, convenience

Full-Service Retail

High assistance and higher prices

Self-Service Retail

Low assistance and lower prices

Integrated Marketing Communications (IMC)

Consistent messaging across all marketing channels

Stages of Selling

Prospecting, pre-approach, approach, presentation, closing, follow-up

Selling Process First Stage

Prospecting (identifying potential customers)

Common Selling Mistake

Failing to understand customer needs

Why Salespeople Are Important

Build relationships and long-term customer value

Why Test Markets Are Important

Reduce risk before full product launch