Marketing - IE 31-E
Marketing
What is Marketing?
The American Marketing Association defines marketing as the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.
Evolution of Marketing
Late 1800s: Industrial Revolution, companies were production-oriented.
1920s: Increasing competition led to the birth of marketing.
After WW2: Shifted to selling oriented.
Importance of Marketing
Effective Customer Engagement
Builds and Maintains Reputation
Creates Lasting Relationship
Boosting Sales
Staying Relevant
Make Informed Decisions
Marketing vs. Sales
Marketing is long-term, focuses on building a brand, creating awareness, and nurturing trust.
Sales is short-term, focuses on closing the deal and getting the customer to buy now.
How Marketing & Sales Work Together:
Marketing warms up the audience, creates leads, and generates interest.
Sales takes those leads and turns them into paying customers.
Core Elements of Marketing
Market Research
Understanding customer needs and preferences.
Methods: Surveys, Focus Groups, Observations, Analysis.
Importance: Helps in developing products and services based on customer wants.
Target Market & Segmentation
Demographics: Age, gender, income.
Psychographics: Lifestyle, values, interests.
Geographics: Location-based preferences.
Why Segment? More personalized and effective marketing.
Competitive Analysis
SWOT: Strength, Weaknesses, Opportunities, Threats.
Identify own's strength, weaknesses, opportunities, and threats as well as the competitors'.
Porter’s Five Forces
Industry rivalry
Threat of new entrants
Supplier power
Consumer power
Threat of substitutes
Purpose: Know one’s position and strategy in the market
The Marketing Puzzle
Research tells what people want
Segmentation tells who wants it
Competitive analysis shows how to position the product
Together, these form a solid marketing plan
Marketing Mix
Successful marketing depends upon addressing a number of key issues, including:
What a company is going to produce.
How much it is going to charge.
How it is going to deliver its products or services to the customer.
How it is going to tell its customers about its products and services.
Marketing Mix - 4Ps
Product
Price
Place
Promotion
Product
Design
Quality
Brand
There is no point in developing a product or service that no one wants to buy.
Price
Value
A product is only worth what customers are prepared to pay for it.
Place
Distribution
Delivery
Location
The product must be available in the right place, at the right time and in the right quantity, while keeping storage, inventory, and distribution costs to an acceptable level.
Promotion
Advertising
Public Relations
Personal Selling
Promotion is the way a company communicates what it does and what it can offer to customers.
What is Consumer Behavior?
Definition: The study of how individuals, groups, or organizations choose, use, and dispose of products and services to satisfy their needs .
Why it matters: It helps marketers create strategies that connect with the right people in the right way .
Psychological Factors
Attitude & Personality – How a person feels or reacts toward a brand or product.
Perception – How we interpret information and make sense of what we see or hear.
Learning – Changes in behavior and preference based on experiences. Positive or negative.
Socio-Cultural Factors
Culture – Shared values, traditions, and beliefs that shape preferences.
Groups – Friends, family, or social circles that influence buying habits.
Consumer Decision Making Process
Recognition of Need
Information Search
Evaluation of Alternatives
Purchase Decision
Post-Purchase Evaluation
Stages of Consumer Decision-Making Process
Developed by John Dewey in 1910
Need/Problem Recognition – Realizing a need
Information Search – Looking for options
Evaluation of Alternatives – Comparing features, brands, and prices.
Purchase Decision – Choosing what to buy.
Post-Purchase Behavior – Feeling satisfied or experiencing buyer’s regret.
Example: Buying a Smartphone
Psychological: You trust the brand and like how it makes you feel.
Socio-cultural: Your friends use the same brand and recommend it.
Decision-making: You compare specs, watch unboxing videos, then buy it online.
Key Takeaways
Consumer behavior is shaped by both internal (psychological) and external (socio-cultural) influences
The decision-making model by John Dewey helps explain how customers go from recognizing a need to feeling satisfied—or not—with their purchase.
Marketers use these insights to design strategies that connect with people.
Understanding consumer behavior leads to better campaigns, stronger customer relationships, and smarter business decisions.
Summary
Marketing plays a big role in business as it drives sales, builds reputation, and attract customers.
Knowing your customer and competitors is essential for creating marketing strategies.
Marketing mix (4Ps: Product, Price, Place, Promotion) is the foundation of the strategic planning.
Market research helps in meeting consumer needs and reduces risk.
Businesses utilize plans and strategies to survive. They use these as critical tools (PEST, SWOT, Porter’s Five Forces.)
Marketing is about understanding and meeting customer needs in order to gain profit. It’s essential for business growth, customer connection, and long-term success.
Marketing and sales are different but must work together. One creates the opportunity, the other closes it.
Quote
Good marketing makes the company look smart. Great marketing makes the customers feel smart.
Joe Chernov, VP OF MARKETING AT HUBSPOT