Chapter 1 - Marketing in Today's Economy

power shift to customers

online customer reviews
marketers need to be concerned with delivering a high quality experience with limited problems or they risk immediate, damaging consumer reviews. good experiences also lead to better reviews and better sales, so marketers have become very responsive to online consumer content

changes in products and selection

digitalization of products
one problem for retailers is lack of products to sell. the digitalization of books, music, maps, and calendars, plus the addition of flashlights, cameras, video, and alarm clocks into smartphones (among thousands of other things), leaves retail giants such as walmart with fewer products to sell.

audience and media fragmentation

online content streaming

for decades advertisers relied on spreading their messages through mass media outlets such as television. today, audiences are spread across platforms, making it difficult to deliver marketing messages to potential customers

changing value propositions

subscription based services

changes to payment via monthly subscription requires marketers to continually provide and ensure the consumer is getting value. an example is the difference of purchasing a movie digitally (you own it) versus subscribing to netflix (you pay to access it). if no new content is added to netflix, you will quickly change to a different service, but, once you own a movie, you cannot swap it for a different one

shifting demand patterns

sharing services

the advent of uber and airbnb had greatly altered the way that travelers move around and where they stay. this change has reduced the need for taxis and created an oversupply of hotel rooms

privacy, security, and ethical concerns

listening technology

the introduction of smart speakers such as amazon echo and apples homepod has allowed companies to gain access to our most personal and private space, our home. this change introduces many questions of what these companies should be listening to and how they should use the information they gather

unclear legal jurisdiction

online ordering

as companies have tried to compete with amazon, many have been able to avoid charging state sales tax in states where they do not have a physical presence. this practice causes a disadvantage for local retailers and questions fo legal jurisdiction for problems, warranties, and tax authorities

marketing

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

market

a collection of buyers and sellers that have similar needs that can be met by a particular product

marketplace

the location where buyers and sellers meet to conduct transactions

marketspace

electronic marketplaces unbound by time or space

exchange

the process of obtaining something of value from someone by offering something in return

product

something that can be acquired via exchange to satisfy a need or want

utility

the ability of a product to satisfy a customer’s desires

strategy

outlines the organization’s game plan for success

tactical planning

addresses specific markets or market segments and the development of marketing programs that will fulfill the needs of customers in those markets

marketing plan

a written document that provides the blueprint or outline of the organization’s marketing activities, including the implementation, evaluation, and control of those activities

internal analysis

the objective review of internal information pertaining to the firm’s current strategy and performance as well as the current and future availability of resources

competitive intelligence

analysis of the competitive environment that involves analyzing the capabilities, vulnerabilities, and intentions of competing businesses

environmental scanning

analysis of external environment that involves the analysis of economic, political, legal, technological, and cultural events and trends that may affect the future of the organization and its marketing efforts

situation analysis

the overall process of collecting and interpreting internal, competitive, and environmental information

competitive advantage

A firm’s capabilities that allow it to serve customers’ needs better than the competition.

market segmentation

Dividing the total market into smaller, relatively homogeneous groups or segments that share similar needs, wants, or characteristics.

target markets

One or more segments of individuals, businesses, or institutions toward which the firm’s marketing efforts will be directed.

supply chain

The connection and integration of all members of the marketing channel

integrated marketing communication (IMC)

The coordination of all promotional activities (e.g., media advertising, social media, direct mail, personal selling, sales promotion, public relations, packaging, store displays, website design, personnel) to produce a unified, customer-focused message.

product positioning

Establishing a mental image, or position, of the product offering relative to competing offerings in the minds of target buyers.

social responsibility

An organization’s obligation to maximize its positive impact on society, while minimizing its negative impact.

marketing ethics

Principles and standards that define acceptable marketing conduct as determined by the public, government regulators, private-interest groups, competitors, and the firm itself.

marketing implementation

The process of executing the marketing strategy by creating and performing specific actions that will ensure the achievement of the firm’s marketing objectives.