Introduction to Marketing Concepts and Strategies

Marketing

Creating real value for customers, companies, partners, and society.

Requirements for Marketing

Two or more parties with unsatisfied needs, desire and ability to satisfy these needs, a way for the parties to communicate, and something to exchange.

4Ps of Marketing

The marketing mix consisting of Product, Price, Promotion, and Place.

Product

What you're selling (a good, service, or idea).

Price

What the customer pays for it.

Promotion

How you tell customers about it (ads, sales, etc.).

Place

How the product reaches the customer (store, online, etc.).

External Factors

Outside the organization and uncontrollable.

Good Product Determination

A product is considered good if it satisfies a need or solves a problem.

Maslow's Hierarchy of Needs

Products satisfy different levels of needs, from basic (like food) to social (belonging), esteem (status), and self-fulfillment.

Value Proposition

The promise of what the customer will get from a product or service, encompassing benefits like quality, convenience, or durability.

Customer Satisfaction

Marketing means meeting what customers want while also helping the business succeed.

Production Era

Focus on the most efficient ways to produce and distribute products.

Sales Era

Marketing is seen as a sales function to move products out of warehouses and reduce inventory.

Relationship Era

Business approach that prioritizes satisfying customer wants and needs.

Triple Bottom Line

Focuses on Profit, People, and Planet—not just making money.

Corporate Sustainability

Business decisions should be good for the company, society, and the Earth.

Marketing a Product

Creating a successful product involves considering outside factors, analyzing the market, planning the marketing mix, and monitoring results.

SWOT Analysis

A tool used to analyze the market by understanding customers.

Target Audience

Choosing the best group by segmenting the market and positioning your product to stand out.

Customer Needs

Examples include hunger, social belonging, and communication.

Benefits to Value

Quality, convenience, aesthetics, durability, reputation, trust, authenticity, and social connection.

Happy Customers

Lead to profits for the business.

Organization

A legal entity that consists of people who share a common mission.

For-Profit

Businesses that aim to make money.

Examples of For-Profit

Nike, Facebook, Toyota.

Non-Profit

Organizations that don't focus on making money but aim to help people or support a cause.

Examples of Non-Profit

Boys and Girls Club, American Heart Association, Khan Academy.

Government Agency

A federal, state, county, or city organization that provides a specific service to the public.

Example of Government Agency

U.S. Census Bureau.

Corporate Level

The top leaders who make big-picture decisions for the whole company.

Strategic Business Unit (SBU)

A smaller part of the company that focuses on one product or market.

Example of SBU

Nike Basketball is a separate unit within Nike.

Functional Level

Specific departments that do certain jobs such as marketing, finance, or HR.

Strategic Planning

An ongoing process where companies make smart decisions to guide their future.

Strategy

An organization's long-term course of action designed to deliver a unique customer experience while achieving its goals.

Core Values

The main beliefs that guide how a company behaves, which should be strong, meaningful, and followed by everyone.

Examples of Core Values

Integrity, teamwork, and accountability.

Organizational Culture

The shared values, behaviors, and attitudes that shape how people in the company act and work together.

Mission

The company's big goal or purpose.

Mission Statement

A formal declaration that describes the firm's overall purpose and what it hopes to achieve in terms of its customers, products, and resources.

Example of Mission Statement

Make a Wish: 'Together, we create life-changing wishes for children with critical illnesses.'

Key Goals or Objectives

What a company wants to achieve both soon and in the future.

S.M.A.R.T Goals

Specific, Measurable, Attainable, Relevant, Time-bound.

Marketing Plan

A roadmap showing what marketing steps a company will take over a set time.

Setting a Strategic Direction

Figuring out where your business is now and where you want it to go.

Business Portfolio Analysis

A method that looks at products based on market share and market growth.

Types of Products

Stars, Cash Cows, Question Marks.

Stars

High market share + high growth; they're doing great and growing fast.

Cash Cows

High share + low growth; they bring in steady money but aren't growing much.

Question Marks

Low share + high growth; they have potential, but we're not winning yet.

Dogs

Low share + low growth. They're not doing well and probably not worth investing in.

Market penetration strategy

Seek to increase sales of existing products to existing markets.

Market development strategy

Introduce existing products into new markets.

Product development strategy

Create growth by selling new products in existing markets.

Diversification strategy

Emphasize both products and new markets to achieve growth.

Strengths

What the company is good at → Use these to your advantage.

Weaknesses

Where the company struggles → Fix these (train, hire, improve).

Opportunities

Good things happening outside the company → Take advantage of them.

Threats

Outside dangers or risks → Plan ahead to avoid problems.

Market Segmentation

Divide the market into groups.

Targeting

Pick the group you want to focus on.

Positioning

Decide how to present your product to that group.

Marketing Mix

Build your plan around the 4 Ps: Product, Price, Promotion, Placement.

Placement

Where it's sold.

Implementation

How to turn the plan into results.

Control

Measuring actual performance, comparing performance to the objectives, and making adjustments.

Marketing Metrics

Check what's working by measuring results.

ROMI

Return on Marketing Investment.

Environmental Scanning

Process of continually acquiring information on events occurring outside the organization.

Sociocultural Environment

Changes in people's values, lifestyles, or behaviors.

Economic Environment

The overall health of the economy.

Business Cycle

Recession, depression, recovery, prosperity, inflation.

GDP

Unemployment, price changes.

Consumer Income

Total money made in a year.

Disposable Income

Money after taxes.

Discretionary Income

Money after taxes and necessities.

Technological Environment

New inventions or tech changes.

Competitive Forces

What your rivals are doing.

Political/Legal Environment

Laws, regulations, or government actions.

Ethics

Marketers should act ethically, not just legally.

The AMA (American Marketing Association)

Gives a code of conduct to help marketers avoid harming or taking advantage of people.

The Consumer Bill of Rights

Was written in 1962 to protect consumers.

Milton Friedman

Business exists to make a profit, as long as it's legal (but not always ethical).

Example of Milton Friedman's view

Polluting legally, but unethically.

Marc Benioff (Salesforce CEO)

Business should improve the world — this is the modern view.

Proactive versus reactive

Companies should be proactive (think ahead), but sometimes need to react to unexpected events.

Timberland example

Pays employees to volunteer 40 hours a year.

Anheuser-Busch example

Educates parents on alcohol safety — not required, but responsible.

Tide (Hope) example

Cleans laundry for free during disasters.

Role of top management

To model good behavior for the rest of the organization.

Laws

Society's values and standards that are enforceable in courts.

Ethical but illegal

Buying a homeless person a meal is illegal, but ethical.

Example of ethical but illegal

You can't give a homeless person food in public without a permit.

Ethical and legal

Donating part of your profits to charity.

Unethical and illegal

Selling customer data without consent.

Unethical but legal

Prescription companies are charging high rates for their products, like diabetes medicine.

Ethical dimension of corporate social responsibility

Employees (most important), Consumers, Suppliers, Shareholders, Community.

Corporate social responsibility (CSR)

Understanding that companies should strive to be good citizens by contributing to the community to a greater extent than is legally required.

Example of CSR

Dove's Real Beauty campaign promotes body positivity, not just selling.