B

Marketing Fundamentals - Transcript Notes

Marketing: Definition and Purpose

  • Marketing is a set of processes for creating, communicating, and delivering value to customers and for improving customer relationships.

Target Market and Market Segmentation

  • A target market is a specific group of consumers who are particularly interested in a product, would have access to it, and are able to buy it.
  • Target markets are identified through market segmentation—finding specific subsets of the overall market that have common characteristics that influence buying decisions.
  • Markets can be segmented on a number of variables including:
    • demographics
    • geographics
    • behavior
    • psychographics (or lifestyle variables)

Marketing Research and Data Collection

  • Before settling on a marketing strategy, marketers often do marketing research to collect and analyze relevant data.
  • Methods for collecting primary data include:
    • surveys
    • personal interviews
    • focus groups

Brand Protection and Branding

  • To protect a brand name, companies register trademarks with the US Patent and Trademark Office (USPTO).

  • There are three major branding strategies:

    • Private branding: With private branding, the maker sells a product to a retailer who resells it under its own name.
    • Generic branding: Under generic branding, a no-brand product contains no identification except for a description of the contents.
    • Manufacturer branding: Using manufacturer branding, a company sells products under its own brand names.

  • When consumers have a favorable experience with a product, it builds brand equity.

  • If consumers are loyal to it over time, it enjoys brand loyalty.

Branding and Retail Contexts

  • Retailers are intermediaries that sell to the end consumer.
  • Types of retailers include:
    • category killers
    • convenience stores
    • department stores
    • discount stores
    • specialty stores
    • supermarkets
    • warehouse club stores

The Promotion Mix

  • The promotion mix includes all the tools for telling people about a product and persuading potential customers to buy it.
  • It can include:
    • advertising
    • personal selling
    • sales promotion
    • publicity

The Marketing Mix (4P)

  • Developing and implementing a marketing program involves a combination of tools called the marketing mix: \text{Product}, \text{Price}, \text{Place}, \text{Promotion}.
  • The marketing mix is commonly summarized as the 4P framework: {\text{Product}, \text{Price}, \text{Place}, \text{Promotion}}

Practical and Conceptual Implications (Synthesis)

  • Marketing aims to deliver value and build relationships, not just push products.
  • Segmentation and targeting ensure resources are focused on consumers most likely to buy.
  • Branding decisions affect perceived value, price, and loyalty over time.
  • Protecting brand identity through trademarks helps maintain competitive advantage and avoids confusion in the marketplace.
  • The promotion mix should be chosen to effectively reach the target market and support the overall positioning.
  • Distribution choices (retailers and channels) influence product availability and consumer access, impacting marketing success.