Deca Marketing

Interested parties

Persons or entities who have an interest in the success or failure of a company. Includes internal and external.

Internal interested parties

entities within an organization that affect or are affected by the actions of a company. Includes employees, owners, managers, and investors(shareholders).

Internal marketing

promoting objectives, services, and products of a company to its internal people. Includes enhancing communication for productivity, preaching values, and creating a positive work space

External interested

parties outside the equity that have a stake in the company, such as customers, suppliers, investors, and society. They don’t have a say in decision-making but allow the company to prosper

Utility

the value of a product or service to a costumer. Its usefullness to a costumer, different types.

Form utility

how well an orginization can increase the value of its product in the customers eyes by altering the physical appearence.

Time utility

the products or services are avaliable when customers need them

Place utility

Products and services are available at convenient locations and accessible to customers

Possession utility

the customers can obtain the product easily due to the price or satisfaction of a product.

Marketing process

the series of steps that assist businesses in planning, analyzing, and interpreting, and adjusting their marketing strategy. Understand the needs and wants of consumers(the market), develop a marketing strategy to reach the customers, deliver good customer value, gain profitable customer relationships, and finally gain customer value(create satisfaction to gain loyalty

Customer equity

the potential profits a company earns from its current and future customers. This reflects the value of the customer base. It is also the goal of marketers because more customer equity means more profit and growth for the business

Market

the set of all actual and potential buyers of a product or service. Buyers share a need or want and are satisfied through exchange relationships. Size of market depends on how many have the need, have the recources to obtain, and how many want to exchange.

transaction

a trade of values between two parties. measures exchange by adding values to the goods exchanged(values in money)

exchange

the act of obtaining a desired object from someone by offering something in return. Does not need values.

Customer satisfaction

how well a product or service’s performance lives up to the customer expectations. Key influence on future buyers, must be careful when setting expectations

customer value

difference between the values and benefits of owning/using a product and the cost(time,money) of getting the product. Customer value=Customer benefits-customer costs.

Services

activities or benefits offered for sale that are not physical and do not result in ownership. Includes banking, airlines, hotels, insurance etc.

marketing offer

a combination of products, services, information, or experiences offered to a market to satisfy a need or want.

value proposition

a set of benefits that companies promise to consumers to satisfy their needs. Fufilled through a marketing offer. ex. statement saying “we have the best jackets”. Helps gain customers over others competitors.

demands

Consumer wants that are backed by the ability to buy. The consumers have the purchasing power to fulfill these wants. Demand products that have the most value and satisfaction.

wants

form of human needs that are shaped by culture, society, and indivual personality. Specific desires, not vague needs. Ex. Might need a pair of shoes, but want the Air Jordans.

Types of needs

Physical: warmth, food water

Safety: protection, law, order

Love and belonging: friendship, trust, acceptance and belonging

Self esteem: accomplishment, pride, status, independence

Self-actualization: achieving personal goals and creative standards

Needs are not created by markets. Markets can create wants, and do so by meeting the needs of people.

Core marketing concepts

Needs, wants, and demands→marketing offers(products, services, experiences)→customer value and satisfacion→exchange, transactions, and customer relationships→creates markets→satisfies needs, wants, and demands and process restarts. Guide business strategy.

Marketing

a social managing process where indivuals and groups get what they need and want through creating and exchanging products and value with others.

Marketing strategy

a plan designed focus limited recourses to reach prospective customers and turn them into paying customers

Customer driven marketing strategy

When a business focuses its efforts on the customer goals and needs and achieve those. Does not worry about product or service, focuses on creating valuable relationships.

Types of value

Functional value: What the product does physically to solve a need

Monetary value: What the product costs relative to its perceived worth

Social value: How much owning the product allows connections with others

Psychological value: how much that product allows the customer to feel better

Marketing mix

the tactics a company uses to promote products or services. Uses the 4P’s: product, price, place, and promotion. Promotion is efforts to attract customer.

Marketing environment

external and internal factors that influence orginizations decisions

Internal environment+5Ms

Has the 5Ms that are required for successful business.

Minds(staffing): most important factor, its the people who decide the direction of business

Minutes(time): needs efficient processes and promotion strategies

Machinery(equipment): equipment or physical assets used to process materials into finished or semi-finished products

Materials(production): need materials to produce goods

Money(finance): Second to staffing, need money to acquire and hire resources

Organizational culture

Comprised of shared values, attitudes, expectations, norms and practices that guide the actions of everyone within the community. Influences effectiveness of organization

Microenvironment

Part of the external environment. Has five main factors:

Suppliers: partners that give the parts most and products most necessary for a business

Market intermediaries: How products are are distributed by third-party sellers like retailers, wholesalers, and others within the distribution channel

Customers: Understanding the customers allows a business to better reach them

Competitors: Need to find ways to get customers in consideration of competition

General public: Reputation is essential for success, need public to like a business

Retailers

businesses that purchase large amounts of goods from producers and sell them in smaller quantities to final customers. They serve as intermediaries in the supply chain.

Wholesalers

Businesses that purchase large amounts of goods from producers and sell to smaller business like retail stores.

Product (one of the 4 Ps)

The goods-and-services combination the company offers to the target market.

Price (one of the 4 Ps)

The amount of money customers must pay to obtain the product.

Value

A customer's overall assessment of the benefits a product/service provides relative to its cost.

Marketing concept

Know the needs/wants of target markets and deliver satisfaction better than competitors

Customer equity

The total combined customer lifetime values of all of a company's customers.

Marketing mix

The set of tactical marketing tools (the 4 Ps) that a firm blends to produce the response it wants in the target market.

Product concept

Consumers favor products offering the most quality, performance, and features — firm should focus on continuous product improvement.

Marketing myopia

Paying more attention to the specific products a company sells than to the benefits/experiences those products produce.

Customer lifetime value

The value of a customer's entire stream of purchases over a lifetime of patronage.

Value proposition

The full mix of benefits a brand promises to deliver to satisfy customer needs

Promotion (one of the 4 Ps)

Activities that communicate the merits of the product and persuade target customers to buy it.

Customer-generated marketing

Brand exchanges created by consumers themselves — invited and uninvited — through which consumers help shape their own brand experience.

Place (one of the 4 Ps)

Company activities that make the product available to target consumers.

Customer engagement marketing

Making the brand a meaningful part of consumers' conversations and lives by fostering direct, sustained engagement.

Market offerings

Some combination of products, services, information, or experiences offered to a market to satisfy a need or want.

Needs, wants, demands

_____ = felt deprivation;

_____ = needs shaped by culture/personality;

_____ = wants backed by buying power.

Selling concept

Consumers won't buy enough of a firm's products unless it undertakes large-scale selling and promotion efforts.

Market

The set of all actual and potential buyers of a product or service.

Exchange

The act of obtaining a desired object from someone by offering something in return.

Societal marketing concept

Balances company profits, consumer wants, AND society's long-run interests.

Share of customer

The portion of a customer's total purchasing that a company captures in its categories.

Production concept

Consumers favor products that are available and highly affordable.

Product, Price, Place, Promotion.

The 4 Ps of the marketing mix

Competitive rivalry, threat of new entry, supplier power, buyer power, threat of substitution

Porter's Five Forces — the 5 forces.

Goals

Specific, measurable targets a company aims to achieve, typically derived from its broader objectives.

SWOT analysis

Strengths, Weaknesses (internal) and Opportunities, Threats (external)

BCG Matrix — 'Stars'

High growth, high market share — require heavy investment, will become cash cows.

Market penetration (growth strategy)

More sales to current customers without changing the product.

Diversification (growth strategy)

Starting/acquiring businesses beyond current products and markets.

BCG Matrix — 'Dogs'

Low growth, low market share — generate little cash and don't promise much.

Mission statement

A statement of the organization's purpose — what it wants to accomplish in the larger environment.

Strategic planning

Developing and maintaining a strategic fit between the org's goals/capabilities and its changing marketing opportunities.

Product development (growth strategy)

Offering modified or new products to current market segments.

BCG Matrix — 'Cash Cows'

Low growth, high market share — established, need less investment.

Capabilities

The internal resources, skills, and competencies a company has available to pursue opportunities.

Market development (growth strategy)

Identifying and developing new markets for current company products.

Opportunities

Favorable conditions in the external environment that a company can exploit for growth or advantage.

BCG Matrix — 'Question Marks'

High growth, low market share — need lots of cash to hold or build share.

Marketing

process by which companies create value for customers

and build strong customer relationships in order to capture value from

customers in return.

Integrated marketing program

a comprehensive plan that communicates and

delivers intended value

Marketing management

the art and science of choosing target markets and

building profitable relationships with them.

Strategic planning

process of developing and maintaining a

strategic fit between the organization’s goals and capabilities, and its

changing marketing opportunities

Demographics

The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.

Economic environment

Factors that affect consumer purchasing power and spending patterns.

Political environment

Laws, government agencies, and pressure groups that influence and limit organizations and individuals in society.

Environmental sustainability

A management approach involving developing strategies that both sustain the environment and produce profits for the company.

Macroenvironment

Larger societal forces: demographic, economic, natural, technological, political, cultural.

Cultural environment

Institutions and other forces that affect a society's basic values, perceptions, preferences, and behaviors.

Core beliefs and values

Persistent beliefs passed parent-to-child, reinforced by schools/government — very hard for marketers to change.

Disintermediation

The elimination of intermediary layers between producers and consumers, often through direct or online channels.

Generational cohorts

Groups born in the same period who share cultural/political/economic experiences (Boomers, X, Y, Z).

Microenvironment

Actors close to the company that affect its ability to serve customers (company, suppliers, intermediaries, competitors, publics, customers).

Secondary beliefs and values

More open to change than core beliefs — marketers have some chance of shifting these.

Technological environment

The most dramatic force shaping the marketplace, creating new products but raising safety/regulatory concerns.

'Same for less' (value proposition)

Offering a good deal — similar quality at a lower price, often through purchasing power or lower costs.

More for less' (value proposition)

The ideal, hardest-to-sustain value proposition — more benefits at a lower price.

One-to-one marketing (individual/customized)

Tailoring products and marketing programs to the needs and preferences of individual customers.

Behavioral segmentation

Segmenting by occasion, benefits sought, user status, usage rate, and loyalty.

Market segmentation

Dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviors.

Market targeting

Evaluating each segment's attractiveness and selecting one or more to enter.

Psychographic segmentation

Dividing a market into different groups based on social class, lifestyle, or personality traits.

Geographic segmentation

Dividing a market into different geographical units such as nations, states, regions, counties, or cities.

Competitive advantage

An advantage gained by offering greater customer value via lower prices or benefits justifying a higher price.

Positioning map (perceptual map)

A visual chart that shows consumer perceptions of a brand versus competing products on important buying dimensions.

Mass marketer

A firm that uses undifferentiated marketing, ignoring segment differences and targeting the whole market with one offer.

Positioning

Arranging for an offering to occupy a clear, desirable place in consumers' minds relative to competitors.