MKTG 301 Midterm 1

Mycah Harold UW

Marketing

The set of strategies/activities by which companies acquire/engage customers, build customer relationships, and create superior customer value in order to capture value from customers in returm

4 Marketing P’s

Product, Place, Promotion, Price

Marketing Goals

1. Attrach new customers

2. Keep and grow current customers

3. Help drive long-term company profitability

Microenvironment

The actors and forces close to a company that directly affect its ability to serve customers, including suppliers, marketing intermediaries, competitors, publics, and internal organization

Suppliers

Provide resources needed to produce goods/services

Publics

Any group that has an actual/potential interest in/impact on the organization

Competitors

Those who offer the same (or competing) product/good/service as we do

Customers

Those who we target + aim to deliver value to

Consumer Markets

Individuals and households that buy goods/services for personal consumption

Business Markets

Buy goods/services for further processing or use in their own production services

Reseller Markets

Buy goods/services to resell at a profit

Government Markets

Government agencies that buy goods/services to produce public services or transfer goods/services to those who need them

International Markets

Buyers from international countries

Marketing Intermediaries

Help companies promote/sell/distribute its product to final buyers

Demographic

Study of human populations (size, density, locations, age, gender, race, occupation, etc.)

Economic

Purchasing power and spending habits

Natural

Physical environment and natural resources

Technological

Constantly changing and evolving

Political

Laws, government agencies, and pressure groups that influence/limit organizations & individuals

Social/cultural

Views of themselves, views of others

Generic Competition

Not competing in the same industry

Form competition

Different product, same value (service)

Industry Competition

Same industry, same product, different price

Brand

Similar product, similar price

Segmenting

Who exists to talk to?

Targeting

Who do we WANT to talk to? Who wants to talk US?

Positioning

WHAT will we say? How do we want them to think of us?

Differentiating

How is what we’re offering different/of superior value to others offering a similar thing

Segmenting

the process of dividing a market into meaningful, relatively similar and identifiable segments/groups

Segmenting (STEPS)

1. Way to divide the market

2. Then the groups themselves

Segmenting Bases

1. Geographic (Where)

2. Demographic (Who) —> Age, gender, income, ethnicity/race, Family Life Cycle

3. Behavioral (How) —> Benefits, usage-based, Occasion

4. Psychographic (Why) —> personality, motives, lifestyles, geodemographics

Segmenting International Markets

1. Geographic Locations

2. Economic Factors

3. Political/Legal Factors (stability of government, receptivity to foreign companies, etc)

4. Cultural Factors (language, religion, values, attitudes, customs, taboos, behavioral patterns)

Requirements for a segment to be helpful

1. Measurable

2. Accessible

3. Substantial (are they large/profitable enough to pursue?)

4. Differentiable

5. Actionable (do we have the resources to reach/serve them)

Targeting

Evaluating different market segments and deciding which one(s) to serve

Undifferentiated Targeting Strategy

EVERYONE is in their target marketing (mass marketing)

Differentiated Targeting Strategy

Segmented Marketing: market differently to multiple segments

Concentrated Marketing Strategy

Niche Marketing: Choose not to serve everyone

Micromarketing

Customized Marketing: target a specific group based on info we have about them (local marketing, individual marketing)

Positioning

the place the product occupies in the customer’s minds relative to competing products

Differentiating

Creating an offering that provides superior value that is different from competitors’ offerings

Value Proposition

How firms create differentiated value for targeted segments and what positions it wants to occupy in the minds of those consumers

Marketing Research

Systematic design & execution of initiatives to collect, analyze, and report data/information/insights relevant to specific marketing situations facing an organization

Primary

Collecting data yourself based on your research question (taste test cosmic crisp apple, talk to consumers yourself)

Secondary

Using pre-existing data to answer your research question

Qualitative Research

research involving collecting, analyzing, & interpreting unstructed data by observing what people do and say

Quantitative Research

research involving the administration of a set of structured questions with predetermined response options to a large group of respondents

Marketing Analytics

Converting “big data” to valuable, actionable customer insights