MKT340

Marketing

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

Market

The set of actual and potential buyers

Market offerings

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

Exchange

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

Value proposition

The set of benefits or values it promises to deliver to customers to satisfy their needs

Marketing concept

Focuses on knowing needs & wants of targeted markets

Marketing mix

4Ps: Product, price, place, and promotion

Societal marketing

Should consider consumer’s wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests

Customer relationship mangagement

Process of building & maintaining profitable customer relationships by delivering superior customer value and satisfaction

Customer lifetime value

Value of the entire stream of purchases a customer will make over their lifetimes

Strategic planning

Process of developing and maintaining a strategic fit between organizational goals and capabilities and its changing marketing opportunities

Mission statement

Organization’s purpose; what it wants to accomplish in the larger environment

Business portfolio

Collection of businesses and products that make up the company

Portfolio analysis

Major activity in strategic planning whereby management evaluates the products and businesses that make up the company

BCG Star

High growth/high share

BCG Cash Cow

Low growth/high share

BCG Dog

Low growth/low share

BCG Question Mark

High growth/low share

BCG portfolio analysis approach

Classifies all SBUs according to growth-share matrix (stars, cash cows, question marks, dogs)

Market penetration (expansion)

Existing product/existing market

Market development

Existing product/new market

Product development

New product/existing market

Diversification

New product/new market

Example of Market Penetration (Coke)

Coke with names on bottles

Example of Market Development (Coke)

Coke Zero/Diet Coke

Example of Product Development (Coke)

Cherry Coke/Vanilla Coke

Example of Related Diversification (Coke)

Vitamin Water

Example of Unrelated Diversification (Coke)

Coke Museum

Value chain

Series of departments that carry out value creating activities to design, produce, market, deliver, and support a firm’s products

Value delivery network

Made up of company, suppliers, distributors, and consumers

Market segmentation

The division of a market into distinct groups of buyers who have different needs, characteristics, or behaviors, & who might require separate products or marketing mixes

Market targeting

Process of evaluating each market segment’s attractiveness & selecting one to into

Market positioning

Arranging for a product to occupy a clear, distinctive, place in the market

Marketing Management - SWOT Analysis

Strength, Weaknesses, Opportunities, and Threats

4 Steps of Marketing Control

Set specific marketing goals
Measure its performance in the marketplace

Evaluate causes of differences between expected and actual performance

Take corrective action to close gaps between goals and outcome

Marketing ROI

Measurement of profits generated by investments in marketing activities

(Gross Profit - Marketing expenses)/Marketing expenses

Marketing environment

Includes actors and forces outside marketing that affect marketing management’s ability to maintain successful relationships with target customers

Microenvironment

Includes actors close to the company that affect its ability to serve its customers - the company, suppliers, intermediaries, customer markets, competitors, and publics

Suppliers

Provide the resources to produce goods and services

Marketing intermediaries

Firms that help the company to promote, finance, sell, and distribute its goods to final buyers

Competitors

Business/entities that operate in the same market and vie for the same customers, influencing each other’s strategies and marketing positioning

Publics

Group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives

Customers

Include consumer markets, business markets, reseller markets, government markets, international markets

Demographic environment

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

Demographic trends

Include changing age and family structures, geographic trends

Economic environment

Consists of economics factors that affect consumer purchasing power and spending patterns

Natural environment

Physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities

Environmental sustainability

Involves developing strategies and practices that create a world economy that the planet can support indefinetely

Technological environment

Forces that create new technologies, leading to new product & market opportunities and their impact

Political-social environment

Includes laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society

Cultural environment

Consists of institutions and other forces that affect a society’s basic values, perceptions, and behaviors

Customer insights

Fresh marketing information; based understandings of customers and the marketplace that become the basis for creating customer value, engagement, and relationships

Big data

Huge and complex data sets generated by today’s sophisticated information generation, collection, storage, and analysis technologies

Marketing Information Ecosystem (MIE)

People, processes, and assets dedicated to assessing manager’s information needs, developing the needed information, and helping managers and decision makers apply that information to generate and validate actionable customer and market insights

Steps to Marketing Research

1. Define problem and research objectives

2. Developing research plan

3. Implementing the research plan

4. Interpreting and reporting findings

Primary Data

Information collected for the specific purpose at hand

Secondary data

Information that already exists somewhere, having been collected for another purpose

Probability Sampling Styles

Simple random sample, stratified random sample, cluster (area) sample

Non-probability Sampling Styles

Convenience, judgment, and quota

Marketing analytics

Involves analysis tools, technologies, and processes by which marketers dig out meaningful patterns in big data to gain customer insights and gauge marketing performance

Consumer buyer behavior

The buying behavior of final consumers - individuals/households that buy goods and services for personal consumption

Consumer markets

All individuals and households that buy or acquire goods and services for personal consumption

Culture

Set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions

Consumer Behavior Factors

Cultural

Personal

Psychological

Consumer adoption process

Mental processes an individual goes through from 1st learning about an innovation to final regular use

Factors that affect consumer adoption process

Relative advantage, compatibility, complexity, trial-ability, observability

Internal marketing

Marketers must get everyone in the organization to be customer centered

Interactive marketing

Service quality depends on the quality of buyer-seller interaction during the service encounter

Brand

Name, term, sign, or design (or a combination) that identifies the maker or seller of a product or service

Product line

Group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within a given price range

Product mix

Consists of all the product lines and items that a particular seller offers for sale

Brand equity

The differential effect that knowing the brand name has on customer response to the product of its marketing

Brand value

Total financial value

(Socio)demographic segmentation

Divides the market into segments, based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation

Psychographic segmentation

Divides a market into different segments based on social class, lifestyle, or personality characteristics

Behavioral segmentation

Divides a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product

Geographic segmentation

Divides market based on geographic location

Target market

A set of buyers who share common needs or characteristics that the company decides to serve

Undifferentiated marketing

Targets the whole market with one offer by focusing on common needs rather than what is different

Differentiated marketing

Targets several different market segments and designs separate offers for each

Concentrated marketing

Targets a large share of a smaller market

Micromarketing

The practice of tailoring product and marketing programs to suit the tastes of specific individuals and locations (local marketing, individual marketing)

Product position

The way the product is defined by consumers on important attributes

Positioning maps

Consumer perceptions of marketer’s brands versus competing products on important buying dimensions

Competitive advantage

An advantage over competitors gained by offering greater value, either through lower prices or by providing more benefits that justify higher prices