official review for mktg exam 1

what is magnus geigers favorite toy?

squeaky chicken

customer delivers ____ and marketing delivers ____

dollars, customers

marketing definition

the process of creating, maintaining and improving mutually valuable customer relationships. Customers deliver dollars, and marketing delivers customers.

The Role of Marketing: Identify customers

understand customer wants and needs. identify whom to target and how to reach them. (segmentation/targeting/positioning)

The Role of Marketing: Satisfy Customers

make the right product or service available to the right people at the right time. make everyone feel better off from the exchange.

The Role of Marketing: Retain customers

Loyalty. give customers a reason to keep coming back. find new opportunities to win their business.

The Marketing Concept

Understanding consumer needs to create value. An organization adopts this concept when it takes steps to know as much about the consumer as possible, and base strategy and marketing plans on this information

Strategy

The major directions an organization takes to pursue its objectives, and are consistent with the company goals and objectives. Marketing strategy foundation is the corporate strategy.

the 4 main components of corporate strategy:

visioning, objective setting, resource allocation, prioritization

the 4 main components of corporate strategy: visioning

high level direction of the organization

the 4 main components of corporate strategy: objective setting

high level (3-5 years) objectives for the company

the 4 main components of corporate strategy: resource allocation

human and capital efficiency

the 4 main components of corporate strategy: prioritization

strategic trade-offs of opportunities

Example of corporate strategy: lululemon - the power of three x 2

Lululemon goals for the next five years:

• double the brand’s revenue to $12.5 billion by 2026

• double its men’s business

• double digital revenue

• quadruple its international business

• double digit growth in its women’s business, stores and North America operations

The 4 P’s of Marketing:

Product, Price, Place, Promotion

The 4 Ps of Marketing: Product

The company's offering and what creates value for consumers. Can be a true product OR a service, a place or a person.

The 4 Ps of Marketing: Price

represents the sacrifice customers must make in order to buy, use, or consume the product/service. Captures value for the company.

The 4 Ps of Marketing: Place

gets the product to consumers when and where they want it. the company's distribution channel (supply chain).

The 4 Ps of Marketing: Promotion

the element of the marketing mix that communicates value to consumers. Encompasses all of the company's marketing communications activities.

The exchange process

Businesses live, thrive, or die based on their ability to offer value to customers through this process. In other words, the customer is the primary reason for a business to exist.

Marketing strategy definition

the activity, set to institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners and society at large. This strategy is the foundation of the marketing plan.

marketing strategy process in order:

1. situation analysis

2. swot analysis

3. review analysis

4. strategic matrix

5. define strategies

6. review and adjust

Market Conditions and trends analysis: demographic

gender, race, religion, income, age, etc. shape consumer needs and buying behavior, helping businesses identify and target key customer groups.

Market Conditions and trends analysis: economic

where are your opportunities based on these market conditions? Promotions, loyalty, indulgence/thrift. ex.) growth rates, inflation, interest rates, food/gas prices, etc.

market conditions and trends analysis: socio-cultural

these trends reflect society’s values, lifestyles, and attitudes—such as health, sustainability, or pet humanization—that shape consumer preferences and marketing approaches.

Market Conditions and trends analysis: technological

e-commerce, mobile apps, automation, and new product innovations—impact how businesses produce, promote, and deliver value to consumers.

Market Conditions and trends analysis: political

This section covers laws, government policies, and regulations businesses must follow. They influence how you market, produce, price, and sell products.

The examples listed are:

Consumer Product Safety Act → Regulates product safety, meaning companies must design safe products and be transparent in marketing claims.

FDA Food Labeling Requirements → Food and beverage marketers must follow labeling rules (nutrition facts, ingredients, allergens, etc.).

Building Codes → Affects businesses that build/renovate locations (restaurants, hotels, retail). You can’t market or operate in a space that doesn’t meet codes.

Affordable Healthcare Act → Impacts employer-provided health insurance, which changes cost structures and can influence hiring/employee-related marketing (like “we provide benefits”).

Market Conditions and trends analysis: competitive

involves analyzing rival products, pricing, and market positioning to understand how businesses can differentiate and capture market share.

Market conditions and trends analysis: consumer

these trends reflect changing preferences, values, and behaviors—such as health consciousness, lifestyle/routines, healthy/indulgence, societal/sustainability, security and safety, or convenience—that influence purchasing decisions.

Market Conditions and trends analysis: shopper

these rends focus on how, where, and why people buy—such as online vs. in-store, brand loyalty, and price sensitivity—which influence marketing and sales strategies.”

Market Conditions and trends analysis: market

these trends track shifts in overall industry size, growth rates, demand patterns, and emerging opportunities that shape business strategy.

Market Conditions and trends analysis: lifestyle “free from”

absence of pleasure, guilt, obligation, compromised taste, weight loss, workout.

Market Conditions and trends analysis: lifestyle “full of”

abundance, balance, choice, bold color and flavor, acceptance, lifestyle

In order for a market to exist, the following five criteria must be met:

1. must be a true need and/or want for the product, need may be recognized, unrecognized, or latent.

2. must have the ability to pay for the product = means acceptable to the marketer.

3. must be willing to buy the product.

4. must have the authority to buy the product.

5. The total number of people/organizations meeting the previous criteria must be large enough to be profitable for the marketer.

market segmentation definition

The process of dividing a market into distinct subsets of customers that behave in the same way or have similar needs and characteristics. Each segment implies a distinct marketing mix. Process begins with a basis for segmentation.

how do marketers segment consumer markets?

geographic, demographic, psychographic, behavioral, benefit

behavioral segmentation

measure by consumption of a product to determine usage levels, and promotion should be aimed directly at the heavy user.

demographic segmentation

age, gender, family, size, income, occupation, education, religion, ethnicity, and nationality.

psychographic segmentation

products/services purchased and the media used to reflect the individuals: personality characterisitcs, values, interests, attitudes, opinions, and lifestyle. these factors cute across demographics.

what is the oldest type of segmentation

geographic

heavy user of a product or service is what segmentation?

behavior

example of geodemographic system

claritas prism

segmenting =

slicing and dicing a large market into smaller pieces

segments should be (3Ms)

measurable, meaningful, marketable

targeting =

involves evaluating the attractiveness of the various segments and zeroing in on one or more

attractive targets are

Size, growth, ROI, differentiation

Targeting example: IAMS Proactive Health Large Breed Dog Food Segments vs. Targets

Segments = Pet Lovers, Dog Owners, Dog Sitters, Veterinarians, Kennels

Targets = Dog Owners → Premium Dog Food Buyers, Large Breed Dog Owners

The Point is Segments = all the groups you could serve. and Targets = the specific groups you decide to serve.

Positioning =

which of the brands benefits will appeal most to consumers in those segments and the target customers. a strategic process that marketers use to determine the place or “niche” an offering should occupy in a given market, relative to other customer alternatives.

Marketing campaigns and tactics are NOT:

product positioning

The 5 steps of the positioning process

1. Confirm your understanding of target market dynamics

2. Identify your competitive advantages

3. Choose competitive advantages that define your market “niche” – a perceptual map is a tool for this step.

4. Define your positioning strategy

5. Communicate and deliver on the positioning strategy

a positioning statement is

one sentence that succinctly identifies the target market and spells out what you want them to think about your brand. This statement should include five elements:

1. the target consumer segment

2. the brand name

3. the product/service category or frame of reference in which you are establishing this market position

4. the key points of differentiation

5. the reasons customers should believe the positioning claims

A straightforward formula for writing positioning statements:

To [target audience], Brand X is the [category or frame of reference] that [points of differentiation/benefits delivered] because [reasons to believe – the payoff].

Positioning Statement Example: Nike

“For serious athletes, Nike gives confidence that provides the perfect shoe for every sport” In today's competitive environment, Nike, one of the global leaders in the sporting goods industry, has established a strong position for enhancing athletic lifestyle.

a position answers: If i buy brand X…

What’s in it for Me that’s different from, or better than, what i can get from Brand Y? It’s the basis for the brand promise.

In positioning, consumers see brands in terms of ____ .

benefits

Positioning elements for IAMS dog owners: premium dog food buyers, large breed dog owners:

for dog owners, iams brand, for large breed dogs, healthy digestion, immune health, for skin and coat

Perceptual Map (also known as a Positioning Map)

Visual representation of how brands are perceived by the targeted consumers. Marketing team plots perceptions of competing brands based on product attributes or other important criteria, such as:

• Price and quality

• Broad vs. narrow product line

• Healthy vs. unhealthy

• Premium or Value

• Luxury or Mainstream

How do brand marketers utilize the perceptual map?

Identify gaps in the market = opportunity for product launches. Identify issues with current brand position: e.g. misalignment. Perceptual maps are most robust when they are based on actual market research data.

Under-positioning

Consumers in the market do not have a clear understanding of the key benefits of your brand. This highlights a problem with the overall marketing communication to the brand’s positioning

Over-positioning

A brand promotes a very precise benefit that has limited appeal to the target market. This may happen in a very competitive and cluttered marketplace. Not beneficial to do this with your brand when: in a less competitive situation, the brand offers multiple benefits with value to consumers.

Confused positioning

When marketers either change their position too often or promote benefits that contradict each other so that an audience becomes confused of what the product actually offers.

Challenges of product re-positioning

Development costs, Significant cost of re-educating the market, Confused consumers and loss of existing sales, Competitive actions, Brand risk – perception changes impacting equity.

advertising definition

a common and useful tool for marketing, one of many tactics marketers may use to achieve their goals.

branding definition

the practice of “creating a name, symbol or design that identifies and differentiates a product from other products.

Sales definition

refers to the process of actually selling products or services, leading up to the point where the exchange of value takes place.

The overall role of marketing

the decisions you make and actions you take should be designed to protect the interest of the owners by. Offering the right product/service, targeting the right customer, and always doing the right, ethical thing.

We saw a brand unilever in lecture two what was the brand?

axe

What was the cococola gift bottle campaign

cross functional team led by marketing.

The marketing mix

customer solution, cost, communication, convenience = target market

emotional connections with consumers are

critical and valuable, not manipulative

Hanes stuff

consumer demand strong, manfuacturing not an issue, pleased w supply chain performance, transportation challenge, inflation hitting P&L, 2022 forecast- increased cotton prices, innerwear sales up 25% hanes up 35% not driven by return to office, leaning w marketing and innovation.

!! Marketing strategy flows from the overall organization strategy and is ?

a long-term, forward-looking approach to achieve sustainable competitive advantage, successfully attain corporate goals and build the business.

what drove coffee consumption in 2011?

launch of single pod coffeemakers

brand manager launching a new product in the following western states this is a form of

geographic segmentation

as discussed in class, marketing teams start building their marketing strategy by working on the:

Situation analysis

corporate strategy goals:

Growth: To expand the business and increase profits

Stability: To maintain current business operations

Renewal: To revive an ailing business