MARKETING TEST 1

marketing

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

• Consumers give up money for something they value

• promote, advertising, product, sales

simple marketing process

• Understand the marketplace and customers needs and wants

• Design a customer driven marketing strategy

• Construct an integrated marketing program (creates an image) that delivers superior value

• Build profitable relationships and create customer delight

• Capture value from customers to create profits and customer equity (share of customer)

need (physiological)

necessary for human survival

• Physical: food, clothing, warmth, safety

• Social: belonging and affection

• Individual: knowledge and self expression

• Attitudes shaped by culture and personality

want

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

demands

Wants with by buying power

marketing myopia

• focusing only on the "thing" rather than what the "thing" provides to target market

• Someone will come along with something better/ different if a company focuses on the thing rather than what it provides

• North face doesn’t really sell just clothing: selling a lifestyle

value proposition

set of benefits or values a company promises to deliver to customers to satisfy their needs  (ex: uber, know the driver, the cost, etc.)

marketing orientation

knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do

societal marketing orientation

focus on social purposes (not just generating profit), market good or service that can help others as well, sustainability

customer perceived value

the difference between total perceived benefits and total customer cost

market share

company sales divided by market sales

share of customer

portion of the customer’s purchasing that a company gets in its product categories

customer lifetime value

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

strategic marketing process

Planning - develop strategic plans: develop marketing plans

Implementation - carry out the plans

Control - measure results: evaluate results: take corrective action

strategic business units

First step in management is to identify key businesses that make up a company

• Can be a company division

• Product line within a division

• Single product or brand

mission statement

organization's purpose, what it wants to accomplish in larger environment

effective goal setting (SMART)

S - Specific

M - Measurable

A - Attainable

R - Relevant

T - Time Based

Boston consulting group growth share matrix

• Ranked based on market growth

• Overall market sales of a particular product growing, staying the same, or declining

Relative to industry average

• Stars - high growth products that need heavy investments to finance growth

• Cash cow - low growth, high share products need less investment to hold market share

• Question mark - low share business units in high growth markets, require a lot of cash to hold share and increase it

• Dog - low growth, low share businesses, do not promise to be large sources of cash

product/ market expansion grid

• Existing markets & existing products: market penetration

• Existing markets & new products: product development

• New markets & existing

• Creating and delivering value: how can we optimize resources

SWOT analysis

Strengths - internal capabilities

Weaknesses - internal limitations that interfere with ability to achieve objectives

Opportunities - positive trends relevant to industry or target market

Threats

MROI (marketing return on investments)

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

• Measures profits generated by investments in marketing activity

micro environment

controlled by companies (structure, hierarchy, SBUs, publics, potential suppliers)

macro environment

social cultural demographics, political and legal, technology (outside of control that can have impact on business) anticipate so business is proactive not reactive

EXTERNAL ENVIRONMENT SPENT - S

SOCIAL demographic environment, intended target market (ethnicity, race, gender)

• US increasingly diverse, changing age structure, changing household patterns, geographic shifts in population

EXTERNAL ENVIRONMENT SPENT - P

Political/ Legal - political environment: consumer laws, copyright

• Laws & regulations for businesses: Sherman Anti Trust Act (prevents monopolies) , HIPPA Act, Clayton Act

• Consumer Protection: FDA, Child Protection and Toy Safety Act

EXTERNAL ENVIRONMENT SPENT - E

Economic - change impact on businesses , industry sales

• inflation rising, unemployment, interest rates, exchange rates

EXTERNAL ENVIRONMENT SPENT - N

Natural Environment - climate change impacting industries, changing weather patterns (shipment delays)  (reliance on raw materials such as vanilla shortage)

EXTERNAL ENVIRONMENT SPENT - T

Technological - infusion of technology into everyday life, technology infused clothing

SHERMAN ANTI TRUST ACT

prohibits monopolies and activities including price fixing that restrain trade or competition in interstate commerce

CLAYTON ACT

prohibits types of price discrimination, exclusive dealing, and tying clauses

ROBINSON - PATMAN ACT

amends the clayton act, forbids price discrimination by manufacturers across retailers

FCC

FEDERAL COMMUNICATIONS COMMISSION

FDA

created the food and drug administration that forbids manufacturers of fraudulently labeling foods and drugs

FTC

federal trade commission: monitors and remedies unfair trade methods

BIG DATA

Huge and complex data sets generated by today's sophisticated information generation and analysis technologies cookies accepted on websites set algorithms (ex: META & GOOGLE) - Use information to target ads across platforms - Consumer information collection

• Can provide big opportunities to marketers: gain rich, timely customer insights

• Big challenges: accessing and sifting through data is daunting

CUSTOMER INSIGHTS

valued information for marketers to make decisions

• Build meaningful relationships

• Customers needs and wants

• Companies use this information to develop a competitive advantage

MkIS - marketing information system and components

• Assessing information needs

• Internal databases

• Marketing intelligence -- competitive intelligence

• Marketing research

• Analyzing and using information

internal data

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

competitive marketing intelligence

the systematic monitoring, collection and analysis of publicly available information about consumers, competitors and developments in the marketplace

• Observing consumers firsthand

• Quizzing the company's employees

• Benchmarking competitors products

• Online research and social media

secondary data

information that already exists, having been collected for another purpose

• Researches usually start with secondary data

• Using company's internal database & external information sources

primary data

information collected for the specific purpose at hand

• Observations, surveys, and experiments

marketing research process

1. Defining the problems and research objectives

2. Developing research plan to collect information

3. Implementing research plan, collecting and analyzing data

4. Interpreting and reporting the findings

problem definition

info needed, situation client find themselves in, what is needed to make a plan moving forward

• Management ---> research

QUALITATIVE RESEARCH

not statistic, explanatory

• Focus groups (traditional, mini, online) open group discussion with a focus

• Depth interviews (IDI) - one on one

• Ethnographic studies - observing patterns on site (in store) and in home

QUANTITATIVE RESEARCH

descriptive research methods, discreet measurements, assessments, surveys, math to analysis

• Surveys: cross sectional, longitudinal (to track trends over time)

• Observation: machine, human

• Test markets: actual (pre test, during test, post test: new product limited time offer, tracking sales), stimulated (using AI with customers, do not have to go into full manufacturer)

CAUSE AND EFFECT RESEARCH

casual research measuring effect of a stimuli, new point of purchase display

PROBABILITY SAMPLING METHODS

statistically valid, participants have equal chance of being selected

NON PROBABILITY SAMPLING TECHNIQUE

participants chosen through convenience, judgement, quota (forcing to fit/ equalize)

MARKETING ANALYTICS AND DASHBOARDS (KPIs)

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

• Collected from web, mobile, social media tracking, customer transactions and engagements, big data sources