MKTG Exam #1

Marketing

the process by which companies create value for customers and build strong customer relationships to capture value from customers in return

Needs

basic human requirements (e.g., food, water, shelter).

Wants

shaped by culture and individual personality (e.g., a specific brand of phone).

Demands

wants backed by buying power.

Marekting Myopia

Company's focus on the product or on their expertise (so focused on what they do best they lose sight on what is important to the consumer)

Exchange

the act of obtaining a desired object from someone by offering something in return. It is the core of marekting.

Value Proposition

a promise of value to be delivered to the customer. It explains how a product will solve problems or improve a situation for the customer.

Production concept

Widely available, highly affordable (Lenovo Computers)

Product concept

Performance, Innovation, Features, or attributes (Apple, Samsung)

Selling concept

Aggressive sales strategies (insurance)

Marketing concept

Satisfying needs and wants of the customer (Coach, Lush)

Societal marketing concept

Improving lives of customers and enhancing society sustainability (Patagonia, Ben & Jerrys)

Customer perceived value & customer satisfaction

If the benefits associated with obtaining the product outweigh the cost (when the benefits outweigh the cost that's when perceived value is delivered) When expectations are met that is when you have customer satisfaction

Be able to discuss customer-engagement marketing and consumer generated marketing

Doritos at the superbowl

Market segmentation

Targeting specific demographics (splitting up audience into groups)

Product differentiation

The company focus on the quality of the product

Channels/Location differntiation

Who beats the other brands out because they are located everywhere

Services differntiation

How they treat their customers and their pace

People differentiation

Connect with their customers

Image

Branding, logo, interior, quality of experiences

Positioning

Data collected specifically for the current research.

Demographic

Age, Ethnicity, Gender

Psychographics

Personality, Lifestydles

Behavioral

Occasion, Usage rate, Type of user, Loyalty Status, Benefits (smart watches are benefits)

Customer perceived value

The difference between what customers get from a product and what they give to obtain it.

customer satisfaction

The feeling of pleasure or disappointment resulting from comparing a product's performance to customer expectations.

Customer- Engament Marekting

Involves building direct relationships with customers by involving them in the brand's marketing efforts.

Consumer-Generated Marketing

Consumers create content or ideas that contribute to marketing efforts (e.g., reviews, social media posts).

Customer lifetime value (CLV)

The total value a customer is expected to bring to a company during their entire relationship.

Customer Equity

The total combined CLV of all customers, indicating the long-term profitability of a business.

Combining two segmentation strategies

demographic and psychographic strategies could mean targeting young, eco-conscious consumers.

Undifferentiated marketing

Aiming to reach all consumers with a single product (e.g., basic necessities).

differentiated marketing

Targeting several different market segments with different offerings.

Concentrated

Focusing on one market segment and becoming a leader in that segment.

Competitive advantage

The unique value a company provides that gives it an edge over competitors

Mission statemnt

A clear, concise statement of the company;s purpose and focus

Strategic Business Units (SBUs)

A unit within a company that has its own mission, objectives, and resources, and operates independently.

The marketing mix

(Product, Price, Place, Promotion)

Product

What you are selling

Price

How much customers pay for the product

Place

Distribution and where customers can access the product.

Promotion

Communication strategies to inform customers about the product.

Strengths

Internal advantages of the company

Weaknesses

Internal limitations or challenges

Opportunities

External factors the company can capitalize on.

Threats

External challenges or risks to the buisness

Microenviorment: Suppliers

Provide resources to produce goods and services.

Microenviorment: Marketing Intermediaries:

Entities that help promote, sell, or distribute products.

Microenviorment: Publics

Groups that can impact the company's ability to achieve its objectives.

Microenvironment: Customers

The individuals or groups the company serves.

Macroenviorment: Demographic

Changes in population structure, including age, family structure, and geographic shifts.

Macroenvironment: Natural Enviorment

Environmental factors like weather, climate, and sustainability.

Macroenvironment: Technological Environment

Innovations and technological changes affecting industries.

Marcoenviorment: Political and Social Environment

Government regulations, political trends, and societal issues.

Macroenviorment: Cultural Enviorment

Cultural values, beliefs, and practices that affect customer behavior.

Big data

Large, complex data sets that companies use to gain insights and inform decisions.

Customer insights

Deep understanding of customer needs, desires, and behaviors derived from data.

marketing infromation system

A system used to gather, analyze, and distribute relevant marketing information.

Internal databases

Data collected within the company, such as sales data, customer feedback, etc.

Marketing Research - Secondary vs. Primary Data

-Secondary Data: Data collected by others for a purpose other than the current research.

-Primary Data:

Data collected specifically for the current research.

Observational Research

Watching how customers behave

Ethnographic Research

Immersing in the customer's environment to study behavior.

Survey research

Collecting data through structured questionnaires.

Focus groups

A small group of people discussing a product or service.

Online marketing research

Conducting research through online surveys or social media.

Behavioral Targeting

Using data about customers past behaviors to target them with personalized marketing