Fundamentals of Marketing

Importance of marketing

to attract and retain customers at a profit

Marketing defined

a process which individuals and groups get what want through creating and exchanging products and value with others

Customer

the focal point of marketing

Product

anything that has value

Benefits

the outcome sought by a consumer that motivates buying behaviour

Features

the physical products

Marketing myopia

When firms fail to recognize the broad scope of their business

Successful marketing exchange

two or more groups with something of value desired by the other, both benefit

Value

consumers assessment of the utilities or benefits provided based on perceptions of what is received and what is given

Form utility

creation of product

Place utility

accessibility

Time utility

availability when needed

Possession utility

transfer of ownership, use or access

Image utility

emotional or psychological

Marketing concept

the achievement of corporate goals through meeting and exceeding customer needs better than competition

Expanded marketing mix

Product, price, place, promotion, people, process, physical evidence

Strategic planning

annual plans and long range, plans that are adapting to opportunities in fast changing environment which start with a mission statement

Market-orientated mission

a market orientated organisations purpose

Marketing goal

a statement of what is to be achieved through marketing activities, SMART (specific, measurable, actionable, relevant and timebound)

Business portfolio

the collection of business and products that make up a company

SBU's (strategic business units)

key businesses evaluated on the attractiveness of the industry and strength of their position in the industry

Market penetration

increase sales without changing product

Market Development

develop new market segments for the same product

Product Development

different products, same market segment

Diversification

starting up or acquiring businesses

Market segmentation

dividing the market into distinct groups

Market targeting

evaluating market segments attractiveness and selecting one or more to serve

Positioning

arranging for a product to occupy place in the minds of target consumers relative to competing products

Differentiation

differentiating our product from competitive so that it gives consumers more value

Marketing mix

a set of controllable tactical marketing tools to produce a response from the market

SWOT analysis

(strengths, weaknesses, opportunities and threats) used for evaluation of companies internal affairs

Marketing planning

deciding on the marketing strategies that will help the overall strategic objectives

Marketing Implementation

process that turns marketing actions to accomplish strategic marketing objectives

Function organisation

different activities are headed by a functional specialist

Geographical organisation

used by companies that sell across the country or internationally

Product Management Organisation

used by companies with many different brands, implements a complete strategy or program for a specific product or brand

Market/customer management organisation

sell one product line to many different types of markets and customers that have different needs and preferences

Marketing ROI

net return from a marketing investment divided by the costs of the marketing investments, measures the profits generated by investments in marketing activities

Marketing success

building relationships

Marketing intermediaries

businesses that help promote, sell and distribute its products to final buyer

Companies macroenvironment

Demographic, Economic, Natural, Technological, political and cultural

Demographic

study of human population

Economic environment

factors that affect consumer purchasing power

Natural environment

people are making more environmentally friendly choices so need to be aware of what the product is doing to the environment

Technological environment

new innovations offering new opportunities, need to know if they are safe or not

Political/Societal environment

the governments role in the business' ability to operate

Cultural environment

institutions and other forces that affect a society's basic values, perceptions, preferences and behaviours

Consumer buying behaviour

buying behaviour of the customer that buys the good for personal consumption

Consumer market

all individuals or households that acquire goods or services for consumption

Marketing stimuli

place, price, promotion, product

Other stimuli

economical, technological, social and cultural

Characteristics affecting consumer behaviour

are culture, social factors, personal factors, brand personality

Culture

Basic values and perceptions learned from society.

Social Factors

Influences from roles, status, and reference groups.

Personal Factors

Individual characteristics like age, occupation, and lifestyle.

Brand Personality

Human traits attributed to a brand's identity.

Psychological Factors

Motivation, perception, learning, beliefs, and attitudes.

Maslow's Hierarchy of Needs

Five levels: physiological, safety, social, esteem, self-actualization.

Perception

How individuals interpret information to understand the world.

Learning

Behavior changes resulting from experiences.

Belief

Descriptive thoughts about a specific subject.

Attitude

Evaluations and feelings towards an object or idea.

Buyer's Decision Process

Five stages: need recognition, information search, evaluation, purchase, post-purchase.

Involvement

Interest level and importance of a product to a consumer.

Types of Problem Solving

Routinised, limited, and extended problem-solving methods.

Routinised Response

Used for frequent purchase decisions.

Limited Problem Solving

Used for occasional purchases or unfamiliar brands.

Extended Problem Solving

Used for unfamiliar or high-cost purchases.

Roles in the Buying Process

Initiator, influencer, decider, buyer, and consumer.

Adoption Process

Stages: awareness, interest, evaluation, trial, adoption.

Types of Adopters

Innovators, early adopters, early majority, late majority.

Laggards

Individuals or groups that are slow to adopt new products or technologies.

Business markets

When an individual or group purchases a product with the intention of reselling or using it in another product/general operations, dependent on customer demand.

Reseller Markets

Businesses that resell the product, such as retailers.

Producer markets

Individuals or organisations that purchase products with the intention of using them in the production of their own product for a profit.

Government markets

Governments that buy goods and services to support their internal operations.

Institutional markets

Organisations with charitable, educational, community or other non-business goals.

E procurement

Online trading exchanges.

Marketing analysis

The use of tools and technologies to make good marketing decisions, leading to effective outcomes and return on marketing investment.

Customer insights

The understanding of customers and marketplace derived from marketing information.

Marketing information system

Helps analyse and use information to develop customer insights, make marketing decisions and manage customer relationships.

Internal Data

Information obtained from internal data sources.

Competitive marketing intelligence

Systematic monitoring, collection and analysis of publicly available information in the marketing environment that can help gain insight into customer feedback.

Marketing research

Systematic gathering, recording and analysing of data about problems relating to marketing.

Exploratory research

Unknown space so finding preliminary research.

Descriptive research

Describing problems, situations or markets.

Casual research

Testing hypothesis about cause and effect relationships.

Qualitative research

Descriptive and used in exploratory research.

Quantitative research

Used in both exploratory research and experimental research.

Primary data

Collected for the specific purpose at hand.

Secondary data

Data that has already been collected for another reason.

Methods of primary data research

Observational, survey and experimental.

Probability sampling

Every element has a known chance of being selected.

Non-probability sampling

No way to calculate the likelihood of an element being chosen.

Sampling plan

Sampling unit, size and procedure.

Online marketing

Speed, cost and accessibility advantages.

Market

Group of people that have a need for a particular product with the willingness, ability and authority to purchase.

Homogeneous market

Large portion of customers have similar needs (e.g. bottled water market).

Heterogeneous market

Made up of individuals with diverse needs in the same product class (e.g. used car market).

Segmentation

Demographical, Geographical, psychological and behavioural.