Marketing Concepts Lecture Notes

These flashcards cover key terms and concepts from the marketing lecture on customer needs, marketing processes, research methods, consumer behavior, market segmentation, product lifecycle, pricing strategies, and promotion mix.

The Five Step Marketing Process

1. Understand the marketplace and customer needs/wants 2. Design a customer-driven marketing strategy 3. Construct an integrated marketing program that delivers superior value 4. Engage customers, build relationships, create delight 5. Capture value from customers to create profits and customer equity.

Needs

A state of felt deprivation (basic physiological needs). Ex: feeling tired → need for energy.

Wants

Needs shaped by cultural and individual personality. Ex: tired person wants Starbucks latte, influenced by social media.

Demands

Wants backed by buying power. Ex: demand high-quality shoes when paying a premium price.

Production Concept

Focus on low labor costs, mass distribution, and availability at low prices.

Product Concept

Focus on product quality and features.

Selling Concept

Aggressive selling and promotion.

Marketing Concept

Know and satisfy target market needs better than competitors.

Societal Marketing Concept

Balance company profits, consumer wants, and society’s interests.

Sustainable Marketing

Meets current and future needs of customers, company, and society.

Microenvironment

Internal factors affecting a company: the company itself, suppliers, marketing intermediaries, competitors, publics, and customers.

Macroenvironment

External broad factors: demographic, economic, natural, technological, political, and cultural forces.

Marketing Information System (MIS)

A system consisting of people, equipment, and procedures to gather, analyze, and distribute needed marketing information.

Observational Research

Gathering data by observing people, actions, and situations.

Survey Research

Asking people questions about their knowledge, attitudes, and preferences.

Experimental Research

Testing cause-and-effect by controlling variables.

Buyer Decision Process

5 Stages: 1. Need Recognition 2. Information Search 3. Evaluation of Alternatives 4. Purchase Decision 5. Post-Purchase Behavior.

Redlining

Refusing service in certain neighborhoods as a form of discrimination.

Market Segmentation Variables

Involves Geographic, Demographic, Psychographic, and Behavioral variables.

Product Classifications

Types of products: Convenience, Shopping, Specialty, Unsought, and Industrial/Capital.

Product Life Cycle Stages

Introduction, Growth, Maturity, Decline.

Price Ceiling

The maximum price set by consumer perceptions of value.

Price Floor

The minimum price set by product costs.

Value Delivery Network

A network that includes the company, its suppliers, distributors, and ultimately customers to improve performance.

Promotion Mix Elements

Includes Advertising, Personal Selling, Sales Promotion, Public Relations, and Direct & Digital Marketing.

Integrated Marketing Communications (IMC)

Coordinates the company’s many communication channels to deliver a clear, consistent message.

Key Marketing Metrics

Formulas for evaluating marketing success include Gross Margin, Net Marketing Contribution, and Return on Investment.