Business Marketing

Marketing

Marketing

The management process responsible for identifying, anticipating, and satisfying customer requirements profitably.

Repeat purchasing behavior

The act of customers buying a product multiple times, indicating loyalty to the company, product, and brand.

B2B (business-to-business)

Commercial transactions between businesses.

B2C (business-to-consumer)

The marketing of products and services by businesses to a consumer market that is not business-related.

C2C (consumer-to-consumer)

Any informational or financial transactions between consumers, usually mediated through a business site such as eBay.

B2G (business-to-government)

Often called public-sector marketing.

Market orientation

A management approach where firms seek to identify and quantify customer requirements and plan their production accordingly.

Product orientation

A management approach that emphasizes the quality of the product rather than the needs and wants of the target market.

Selling orientation

A management approach built on the belief that a good salesperson can sell any product, often resulting in unethical sales practices.

Social marketing

The use of commercial marketing principles to influence social behaviors for the benefit of the target audience and society in general.

Market share

The percentage of all the sales in a particular market held by one brand or company, measured by volume or value.

Market concentration

The extent to which a relatively small number of firms account for a relatively large percentage of the market.

For-Profit vs Non-Profit

The difference between profit-making organizations that seek to maximize profits and non-profit organizations that aim to maximize funds for their clients.

Ethical considerations

The need for firms to be sensitive to the beliefs, values, and lifestyles of different cultures and nationalities.

Cultural differences

The impact of cultural values on the aspirations and demands of local populations, which may require economic, cultural, and social reform.

Sales forecasting

The process of predicting future sales levels based on past sales data.

Time series analysis

The use of past sales data to predict future sales levels, taking into account trends, seasonal variations, cyclical variations, and irregular or random variations.

Moving averages

A method used to smooth data and remove seasonal and random variations in order to create a trend line for accurate sales forecasting.

Centring

A method of calculating a number in a series by averaging it with the previous and next numbers.

Trend line

A line that represents the overall trend of a data set and can be extended to forecast future trends.

Seasonal variation

The difference between actual sales and the trend line, calculated by subtracting the trend line from the sales.

Moving average

A trend line calculated by averaging a specific number of data points.

E-commerce

The buying and selling of products or services over electronic systems, such as the Internet.

Market research

The systematic collection of information to identify and predict market trends.

Primary market research

Gathering new or first-hand data specifically tailored to provide information on the firm's own products, customers, and markets.

Secondary market research

The assembly, collation, and analysis of existing or second-hand marketing data.

Surveys

A method of primary research that involves asking questions to gather information.

Focus groups

A method of primary research where a group of participants is presented with marketing messages to gather information on public attitudes and tastes.

Observations

A method of primary research where researchers watch potential and actual consumers' behavior.

Qualitative research

In-depth research into the motivations behind customer purchasing behavior and attitudes.

Quantitative research

Research that focuses on numerical data such as market share.

Random sampling

A method of sampling where all participants have an equal chance of being chosen.

Quota sampling

A method of sampling based on market segmentation using characteristics such as age and gender.

Stratified sampling

A method of sampling where the population is divided into subgroups and the sample reflects each subgroup in proportion to their representation in the population.

Global marketing

A uniform approach to marketing goods in overseas markets.

Direct exporting

The firm makes the products at home and sends them to the country of consumption.

Franchising

A firm sells the right to a franchisee to trade under its name and logo.

Licensing

A local firm buys the right to produce the goods of a multinational company.

Joint venture

Two or more companies join together to fulfill a particular contract.

Direct investment

A firm produces and distributes products in an overseas market.

Market saturation

Selling products overseas to boost sales and prolong product life cycles.

Stakeholders

Individuals or groups who have an interest in or are affected by the actions of a firm.

Cultural differences

Differences in social conditions, religion, and culture that affect consumers' perceptions and buying behavior.

Religious Taboos

Certain products may be unsellable in certain countries due to religious taboos or differences, such as pig products.

Status Relationships

In many Asian cultures, status is important and language reflects this, with different words used to express similar ideas.

Advertising

Cultural preferences for aggression, symbols, and humor vary across cultures, making advertising culturally specific.

Packaging

Colors used in packaging may have associations with death, sickness, or national pride.

Language Translation

Translation may be difficult if suitable words are unavailable in other languages.

Local Perception of MNCs

Local populations' perception of multinational corporations as 'foreign' or 'local' influences purchasing decisions.

Globalization and International Marketing

Globalization has led to increasing competition, changing consumer tastes, and opportunities for marketing economies of scale.

The Four Ps

The marketing mix consists of product, price, promotion, and place.

Product Life Cycle

Products go through stages of development, introduction, growth, maturity, and decline.

Development Stage

In this stage, the product is researched, developed, tested, and launched into the market.

Introduction Stage

The product is launched into the test market(s) with significant promotion and high marketing costs.

Growth Stage

Persuasive advertising is used to establish brand loyalty, sales and profits increase, and economies of scale are achieved.

Maturity and Saturation Stage

The product has a significant market share, high profit margins, and faces competition and price sensitivity.

Decline Stage

Sales and profits decline, low-cost rivals gain market share, and cost-cutting measures are implemented.

Relationship between Product Life Cycle and Marketing Mix

The elements of the marketing mix need to be consistent with each stage of the product life cycle.

Boston Consulting Group (BCG) Matrix

A matrix that classifies products into four categories based on market share and growth.

Branding

A brand is a name, sign, or symbol used to identify and differentiate products.

Global Brands

Brands recognized throughout the world with a unified approach to branding.

Brand Development

The ongoing evolution of a brand through market research, positioning, and consistent communication.

Brand Loyalty

Customers' loyalty to a brand, leading to repeat purchases, word-of-mouth endorsement, and market leadership.

Importance of Branding

Brands convey quality, credibility, image, and experience, creating emotional attachments with customers.

Importance of Packaging

Packaging serves functions such as physical protection, content information, convenience, and promotion.

Pricing Strategies

Different pricing techniques and options, including cost-plus pricing, penetration pricing, and price discrimination.

Price-Quality Strategy Mix

The correlation between price and product quality and the impact on promotional efforts.

Promotion

The various ways in which consumers are made aware of a firm's goods and services.

Above-the-Line Promotion

Paid-for promotion through independent mass media, such as advertising.

Advertising

Directed at a mass audience to generate customer loyalty and repeat purchasing.

Below-the-Line Promotion

Promotion over which the firm has direct control, including direct marketing, sales promotions, and trade fairs.

Sales Promotion

Temporary methods to improve sales, attract new customers, and encourage existing customers to purchase more.

Direct Marketing

Targeting customers with advertising techniques such as fliers, catalogs, and promotional literature.

Direct mail

The delivery of promotional material to named individuals at their homes or businesses.

Public relations (PR)

The practice of managing the spread of information between an organization and the public.

Sponsorship/celebrity endorsement

When an organization pays to be associated with a particular event, cause, or image, often using a celebrity to promote their products or services.

Promotional mix

The way in which different promotional components, such as advertising, public relations, and sales promotion, are blended together in a marketing campaign.

Word-of-mouth promotion

The transmission of customer satisfaction through positive messages about a firm, often through informal communication channels.

Social media marketing (SMM)

The process of gaining website traffic or attention through social media sites and social networks.

Viral marketing

A marketing technique that uses customers to promote a product or increase brand awareness through the exponential spread of marketing messages.

Advantages of technology in promotional activities

Speed, availability, wide reach, and cost-effectiveness.

Disadvantages of technology in promotional activities

Lack of control, limited access, short attention spans, and security risks.

Guerrilla marketing

Low-cost unconventional marketing tactics that rely on creativity, flexibility, and a willingness to take risks to create a lasting impression on consumers.

Place in the marketing mix

The element of the marketing mix that focuses on distribution and physical distribution management.

Distribution channel

The set of firms and individuals involved in the transfer of a product from the producer to the final consumer or industrial user.

Methods of distribution

Zero-level or direct marketing channel, one-level channel, and two-level channel.

Effectiveness of different types of distribution channels

Determined by factors such as the nature of the product, the nature of the customer and market segment, the objectives of the firm, the market, legal restrictions, quantity to be delivered, security, and frequency of delivery.