Marketing 1 Exam

Marketing

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

What is marketing?

Needs, wants, demands

What are needs?

States of deprivation ex: Food, clothing, safety, social, and knowledge

What are wants?

Form that needs take as they are shaped by culture and
individual personality

What are demands?

Wants backed by buying power.

Markets

The set of actual and potential buyers of a product
or service; share a common need / want; have authority to
buy

Exchange

Trade of things of value between the buyer and the
seller so that each is better off as a result.

Marketing Mix

The set of marketing tools used to implement a
marketing strategy; creates value

Product

The variety of offerings including goods, services and
ideas developed to satisfy customer needs

Price

Everything a buyer gives up in exchange for the product or
service,

Place

Represents the processes necessary to move the product to the customer when the customer wants it; also Supply Chain Management.

Promotion

Communication to inform, persuade and/or remind potential buyers; to influence the
buying decision; to elicit a response.

Marketing myopia

Focusing only on existing wants and losing sight of underlying consumer needs.

Market strategy

Marketing logic by which the company hopes to create customer value and achieve profitable customer relationships. Identifies:

• the target market
• the applicable marketing mix
• the basis for sustainable competitive advantage

Sustainable Competitive Advantage:

Advantage not easily copied and can be maintained for a long time.

Strategies for Delivering Customer Value

-Customer Excellence
-Operational Excellence
-Product Excellence
-Locational Excellence

Marketing Plan

-the current marketing situation, opportunities and threats for the firm
-marketing objectives
-marketing strategy specified in terms of the four P’s
-action programs
-projected financial results (marketing metrics)

Mission Statement

Broad description of a firm’s objectives.

What is SWOT

-S (Strength)

-W (Weakness)

-O (Opportunity)

-T (Threats)

What is STP?

Segmentation, targeting, and positioning

Market segmentation

Dividing a market into distinct groups of buyers with distinct needs, characteristics or
behaviors and who might require separate products or marketing programs.

Market segment

A group of consumers who respond in a similar way to a given set of marketing efforts

Market targeting

The process of evaluating each market segment’s attractiveness and selecting one or
more segments to enter.

Positioning

Defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents

-Arranging for a product to occupy a distinctive place
relative to competing products in the minds of the
target consumer

Metric

Measuring system that quantifies a trend,
dynamic or characteristic

Marketing mix

Four marketing activities - product, pricing, distribution, and promotion - that a firm can control to meet the needs of customers within its target market.

Business portfolio

Collection of businesses and products that make up the company.

Portfolio analysis

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

Market penetration

Increasing sales to current market segments without changing the product

-Use existing marketing mix

Market development

Growth strategy that identifies and develops new market segments for current offerings

Product development

Offer new or modified products to existing market segments

Diversification

new offering to a market not currently served

-starting up or acquiring other businesses

-related or unrelateddiversification

Downsizing

Reduction of the business portfolio by eliminating products or business units that are not
profitable or that no longer fit the company’s strategy.

Marketing Environment

Actors and forces outside marketing that affect marketing management’s ability to build and
maintain relationships with customers.

Company (capabilities)

Core competencies

Competitors

Analysis of each other’s strengths and weaknesses

Physical environment

-Include land, water, air and living organisms

-How used in the physical environment

-How affect the physical environmen

Macroenvironmental Factors

Aspects of the external environment that affect a company’s business, such as the culture, demographics, social trends, technological advances, economic situation, and political/legal environment (CDSTEP).

Corporate Partners

Two or more companies collaborating to achieve mutual goals and help increase brand awareness or product development.

Immediate environment

-Company

-Competitors

-Corporate partner

-Physical environment

Macroenvironmental Factor

-Culture

-Demographics

-Economic

-Social trends

-Technological advances

-Politcal/legal

Responding to environments

-Proactive

-Reactive

-Uncontrollable

Proactive

Aggressive actions to affect forces in the environment

Reactive

Watching and reacting to forces in the marketing environment

Uncontrollable

React and adapt to forces in the environment

Digital marketing

All online marketing activities, which includes all digital assets, channels, and media spanning not just online but also social media and mobile marketing.

Social media

The online and mobile technologies that distribute content to facilitate interpersonal interactions, with the assistance of various firms that offer platforms, services, and tools to help consumers and firms build their connections.

4E Framework

-Excitement

-Education

-Experience

-Engagement

Artificial intelligence (AI)

The ability of information technologies, machines, and computers to exhibit intelligence, such that they can learn continually from data and perform tasks and functions that previously would have required human intervention

AI Marketing Framework

The 7C Online Marketing Framework

-Core goals

-Contextual elements(design and naviagtion)

-Content

-Community

-Communication

-Commerce

-Connection

Wheel of social media engagement

-Information

-Connected

-Network

-Dynamic

-Timeless

Ad-supported apps

Apps that are free to download but place ads on the screen when using the program to generate revenue.

What are the 7 customer motivations for using mobile apps

-Me time

-Socialize

-Shop

-Accomplish

-Prepare

-Discover

-Self express

What are the 4 pricing mobile apps?

-freemium apps

-in-app purchases

-paid apps

-paid apps with purchases

Social media engagement process

-Listen

-Analyze

-Do

How to create a digital marketing campaign

-Identify goals and strategy

-Identify target market

-develop budget

-campaign experiment and engage

-monitor and change

Influencer marketing

A marketing strategy that uses opinion leaders, popular on social media, to drive marketing messages to a targeted audience.

Typers of influencers

-Celebrity

-Micro

-Blog

-Social media

-Specialized

The 4Rs

-relevance

-reach

-response

-return

Bounce rate

The percentage of times a visitor leaves the website almost immediately, such as after viewing only one page.

Crowdsourcing

Users submit ideas for a new product or service, and/or comment and vote on the ideas submitted by others.

Click path

Shows how users proceed through the information on a website—not unlike how grocery stores try to track the way shoppers move through their aisles.

Conscious marketing

An approach to marketing that acknowledges four key principles: a higher purpose, stakeholders, conscious leadership, and a conscious culture.

Business ethics

Refers to a branch of ethical study that examines ethical rules and principles within a commercial context, the various moral or ethical problems that might arise in a business setting, and any special duties or obligations that apply to persons engaged in commerce.

Marketing ethics

Refers to those ethical problems that are specific to the domain of marketing.

Stakeholders

The broad set of people who might be affected by a firm’s actions, including not just corporate shareholders and customers but also employees (past, current, and prospective) and their families, supply chain partners, government agencies, the physical environment, and members of the communities in which the firm operates (defined either locally or on a global scale).

Corporate social responsibility (CSR)

Refers to the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders.

Triple bottom line

A means to measure performance according to economic, environmental, and societal criteria

Key conscious marketing stakeholders

Employees, customers, marketplace, and society