Marketing Study Notes: Lectures 1-3

Comprehensive vocabulary terms and definitions covering the core concepts of marketing strategy, strategic planning, and relationship management as outlined in Lectures 1 through 3.

Marketing

Engaging with prospects in order to capture value from customers in return.

The Four Ps

The components of the marketing mix consisting of Product, Price, Promotion, and Place.

Product

The component of the marketing mix including service, brand, and packaging.

Price

The component of the marketing mix including MSRP and discounts expressed as $X \pm \%$.

Promotion

The component of the marketing mix including sales, advertising, and PR.

Place

The component of the marketing mix involving logistics and distribution, such as resellers for B2B or retailers for consumers.

Market Myopia

Focusing only on specific products rather than the benefits and experiences delivered by the product.

Market Segmentation

Dividing the market into segments or distinct groups of buyers who have different needs, characteristics, or behaviors.

Target Marketing

The process of evaluating each market segment's attractiveness and selecting which segments to go after.

Value Proposition

The complete set of benefits promised to customers, often expressed in taglines or slogans.

Production Concept

A marketing management orientation focused on affordability, quality/improvement, and the idea that consumer knowledge is key.

Marketing Concept

A marketing management orientation focused on consumer needs and wants.

Societal Marketing

A marketing management orientation focused on human welfare and benefits to society.

CRM (Customer Relationship Management)

Managing perceived value across the customer relationship.

CEM (Customer Engagement Marketing)

Engaging customers directly in the brand conversation.

PRM (Partner Relationship Management)

Working with distribution channels and retailers.

CLV (Customer Lifetime Value)

The value of a customer over time.

Share of Customer

Also known as "share of wallet"; growing current customer spend through cross-selling or up-selling.

Share of Stomach

The specific way restaurants measure their share of customer.

Customer Equity

The combined value of all profitable customers.

Strategic Planning

The process of maintaining a strategic fit between the organization’s goals and capabilities and its changing dynamics and marketing opportunities.

Mission Statement

A statement of the company’s purpose and what it wants to accomplish in the larger environment.

Business Objectives

Specific goals such as increasing sales, improving profits, or launching a new product.

Marketing Objectives

Specific goals such as increasing market share, creating local partnerships, or increasing customer perceived value.

Specific

Addressing the why, what, where, and when of a goal.

SMART Goals: Measurable

Goals that include an explicit numeric or descriptive measurement.

SMART Goals: Attainable

Goals that consider the resources needed and are set realistically.

SMART Goals: Relevant

Goals that are consistent with the strategic mission.

SMART Goals: Time-bound

Goals that have clear deadlines.

Business Portfolio

The collection of businesses and products that make up the company.

Portfolio Analysis

A strategic planning activity to evaluate the products and businesses that make up the company.

Strategic Business Units (SBUs)

Can be a company division (e.g., US, Asia, EMEA), a product line within a division, or a single product or brand.

BCG Growth–Share Matrix

A tool used to classify SBUs by market growth rate and relative market share.

Market Penetration

A growth strategy using pricing, distribution, advertising, and endorsements within current markets.

Product Development

A growth strategy focused on creating new, related products.

Market Development

A growth strategy focused on new segment types such as demographic or geographic markets.

Diversification

A growth strategy involving new products or services outside of current products.

Downsizing

When a company eliminates or divests business units that are unprofitable or no longer fit the strategy.

Value Chain

A series of departments that carry out value-creating activities to design, produce, market, deliver, and support a company’s products.

Value Delivery Network

A network made up of the company, suppliers, distributors, and customers who partner to improve the performance of the entire system.

Distribution Channel

The method by which companies take products to market and present them to business- and consumer-level customers.

Marketing Strategy

How the company hopes to create customer value and drive profitable relationships.

Market Segment

A group of consumers who respond in a similar way to a given set of marketing efforts.

Market Positioning

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Differentiation

Building unique selling points (USPs) for a product.

Marketing Implementation

Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives.

SWOT Analysis

A strategic tool used to identify Strengths, Weaknesses, Opportunities, and Threats.

Marketing ROI

The net return from a marketing investment divided by the costs of the marketing investment.