MKT 291 Exam 1

Marketing

the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value

Marketing Management

setting marketing goals, planning and executing activities to meet these goals, and measuring progress toward achievement

Chief Marketing

Officer (CMO)

Leader of the corporate marketing effort, reports to company executives, leads the team and is responsible for developing marketing strategies

Demand generation

generates new business prospects/leads, variety of marketing approaches to generate contact info

Content Marketing

creates and publishes a steady stream of new and compelling content developed specifically to capture the attention of customers and prospects

Digital Marketing

responsible for online marketing efforts

Marketing operations

ensures the right technology is in place, is integrated properly with other technologies, and that the marketing team is able to use it effectively

Marketing researcher

conducts research about customers, competitors, competitors, and the market

Marketing analytics

helps the company take advantage of all the data produced and stored about campaigns and customers

What are the common careers in marketing?

Chief Marketing Officer, Marketing management, demand generation, content marketing, digital marketing, marketing operations, marketing research, marketing analytics

Selling concept

tendency to focus on selling current products and services to customers

Marketing concept

finding out first what customers want then working to provide that to the customer

What is at the center of what a marketer does

the customer

Marketing mix

the set of major categories that a marketer can adjust to affect the overall marketing strategy of a product

4 P’s of Marketing

Product, Price, Place, Promotion

7 P’s of Marketing

Product, Price, Place, Promotion, Process, People, Physical Evidence

Product

a good, service, or idea to satisfy a customer’s needs, and the characteristics of the product

Price

amount that is being charged for the good/service

Place

the means of getting the good/service to the customer

Promotion

the means of communicating with the customer and informing/persuading the customer of value

Process

flow of activities involved in providing goods/services

People

the human actors who provide goods/services

Physical evidence

tangible elements in the place that the good/service is sold (aesthetic)

Marketing environment

all the forces that affect a company’s ability to do business

Immediate environment

includes players that can directly influence a company’s ability to market successfully

External environment

uncontrollable forces that affect the company and all actors in the immediate environment and that establish the surrounding context in which business is conducted

What is included in the immediate environment?

intermediaries, employees, shareholders, customers, competitors, and suppliers

Intermediaries

help get the product to customers and can help fulfill functions such as sales and distribution

Shareholders

investors in a company & have a stake or influence in the decisions that are made

Competitor influence

shape marketing strategy, set the price of s particular product, validate product ideas, help evaluate a target market, and drive product innovation

External Environment forces

PESTLE: Political, economic, social, technological, legal, and environmental

Environmental Scanning

the process of gathering and interpreting fata in the immediate and external environments to identify possible opportunities and threats and to develop strategic plans from them

SWOT Analysis

Environmental scanning tool that assesses strengths, weaknesses, opportunities, and threats

Strengths

Internal attributes of a company/product that give it a competitive advantage or superior position

Weaknesses

internal deficiencies in the company that are potential problem areas

What attributes of the SWOT analysis are internally focused?

Strengths and weaknesses

What attributes of the SWOT analysis are externally focused?

Opportunities and threats

Steps of scanning the external environment

1. Observe all external categories

2. Identify threats and patterns

3. Interpret why this is happening

4. Predict what will happen because of this trend

5. Analyze how your strengths and weaknesses relate to these future changes

6. Strategize how you can take advantage of opportunities and prepare for threats

Marketing research

the process of collecting and analyzing information from and about consumers to influence marketing strategy and decisions

Marketing research steps

1. gaining consumer insight

2. focus on exploratory research

3. focus on conducting surveys

   1. final marketing research thoughts

Research question

the primary goal of the marketing research effort

Exploratory research

getting ideas or insights that funnel broad research questions into more specific ones

Descriptive research

quantitative in nature and focuses on determining how often something occurs or how two things are related to each other

Casual research

Quantitative in nature and focuses on discovering the cause-and-effect relationship between variables

Secondary data

pre-existing data originally gathered for another purpose

literature research

form of secondary data; searching for context in articles, blogs, newspapers, etc

data mining

form of secondary research; searching for information from patterns, trends, and relationships within sets of data

Primary data

new-to-the-world data collected specifically for the project at hand

depth interview

interviews with people who are knowledgeable about the subject under investigation

focus groups

small group from which a researcher interviews and moderates

case analyses

intensive studies of representative examples of the subject under study

projective methods

indirect methods that cause study participants to reveal feelings/thoughts/opinions

customer behavior

why a customer does the things he/she does

Influences of customer behavior

awareness, intention, motivation, demographics, attitudes, psychographics

Brand awareness survey

test of how well target groups recognize brands

Brand image survey

understand how target groups feel about brands

Customer satisfaction

gauges a customer’s satisfaction with different aspects of their experience with a brand

Net promoter score

measure the experience customers have with brands

Designing simple surveys

1. reexamine the research question

2. specify what information the survey must collect

3. identify who should take the survey

4. Develop questions to ask

5. create “dummy” data tables

6. devise a way to recruit people to take the survey

7. build and test the survey

8. field the survey

Survey design mistakes

1. failing to consider the research question

2. failing to understand survey population

3. forgetting to introduce the survey

4. asking too many questions

5. asking too few questions

6. structuring questions poorly

7. putting the most important questions at the end

8. requiring participants to answer all the questions

How to use survey results

analyze, determine significance, apply results

Market segmentation

dividing the larger market into smaller segments based on meaningfully shared characteristics and needs

Ways to segment the market

demographics, geographics, psychographics, usage behavior

Demographic segmentation

uses statistics such as age, gender, income, ethnicity, and education to segment the market

Geographic segmentation

segmenting the market according to consumer location (country, city, zip code, population density, terrain)

Psychographic segmentation

segmenting the market by consumer activities, values, interests, and opinions

usage rate

based on actual or potential consumption

usage situation

the way in which a person might purchase or use a product or the occasion for which a person might purchase

Market segment

group of consumers with shared characteristics and similar product needs who respond similarly to marketing efforts

Target marketing

process of selecting one or more segments for focused marketing efforts

Target market process

1. create a market segment

2. choose meaningful characteristics

3. choosing the number of characteristics in a segment

Qualities of desirable target markets

identifiable, sizeable, stable, accessible, congruent

Target marketing strategies

undifferentiated, differentiated, and concentrated

Undifferentiated target market

one marketing mix for entire market; “mass marketing”

Differentiated target marketing

unique marketing mix for each separate segment

Concentrated target marketing

chooses only one segment to target and customizes marketing mix for that target market

Buyer persona

representation of an ideal customer based on research

What is the goal of a buyer persona

to identify consumer motivations and needs

Positioning

A strategy for defining and portraying brands or products in ways that cause the ideal customers to perceive them as the best solution for their needs

What should be changed when positioning

pricing, name, packaging… NOT the product itself

Position

the space in the market for which a product is ideally suited

Positioning statement

a succinct expression of a product’s market position

Unique selling proposition (USP)

an adaptation of the product positioning statement for use in sales dialogues and communications

Positioning strategies

1. being first

2. Positioning as a follower

3. repositioning (finding a new niche)

Problems with positioning

product & brand positioning inconsistency, under-positioning, over-positioning, confused positioning, doubtful positioning, irrelevant positioning

Under-positioning

product has no clear advantage/differentiation and customers aren’t compelled to buy

Over-positioning

product is being positioned too narrowly and customers think the benefits are too small

Confused positioning

product is positioned by claiming too many benefits/contradictory benefits

Doubtful positioning

occurs when the way a product is positioned touts benefits that are not believable

Irrelevant positioning

occurs when a product claims benefits/differentiation that customers don’t care about

Crafting a positioning statement

Target audience, concise description, best use of application, primary benefit/differentiation

Buyer behavior process

the stages that consumers go through when deciding to purchase and consume a product

Steps of the boyer behavior process

1. need recognition

2. information search

3. evaluation alternatives

4. purchase

5. reaction

consumption

using goods or services to fulfill needs

need

a gap between current state and desired state

Maslow’s hierarchy of needs

physiological, safety, social, esteem, self-actualization

internal cue

a cue within a person that signals a need

external cue

a cue in the environment that signals a need

Information search

consumer looks for information on what might fulfill his/her needs

internal search

consumer searches memory/experience for information