307 midterm

1. New Digital Era Marketing Mix - The Five P's:

• Product/Bundle of Consumer Benefits: Apple’s iPhone, which combines hardware, software, and ecosystem integration, providing a seamless experience.

• Price/Value Exchange: Netflix offers a subscription service where consumers trade their monthly fee for access to exclusive content.

• Place/Delivery Experiences: Amazon Prime's 2-day delivery providing a fast, convenient shopping experience.

• Promotion/Content Creation: Coca-Cola's social media campaigns where they create user-generated content encouraging sharing personal stories.

• Brand Story/Positive Provocations: Nike’s “Just Do It” campaign, encouraging empowerment and pushing boundaries.

• People: The customer service team at Zappos who go above and beyond to ensure a positive experience.

2. Marketing as an Exchange

• Example: When you buy a car, you give money to the dealership, and in return, you get a vehicle that fulfills your transportation needs.

3. Scope of Marketing

• Example: A company designing, promoting, and distributing new organic skincare products that solve customer needs for natural beauty solutions.

4. Shift in Definition of Marketing

• Example: Tesla's customer-centric approach focuses on sustainability, innovation, and solving real customer pain points through electric vehicles, not just selling cars.

5. Perspective Shift (Outside-In)

• Example: Starbucks’ focus on customer experiences and preferences (e.g., mobile app for easy ordering) rather than just pushing coffee products.

6. Digital Disruption Factors

• Example: The rise of food delivery apps (like UberEats) changing how people access food, disrupting traditional restaurant business models.

7. Multi-Roles of the Internet

• Example: Instagram acting as a platform for brand marketing, communication, and even direct product sales.

8. Customer Benefits and Delivering Value

• Example: Amazon offering fast delivery, easy returns, and a massive product selection, all adding value to the customer experience.

9. Value Co-Creation

• Example: LEGO Ideas, where fans submit designs for new LEGO sets, creating a collaborative process between the brand and customers.

10. What is Marketing Today?

• Example: Airbnb’s marketing focuses on customer experiences, offering unique stays that reflect personal values and connecting hosts with travelers.

11. Communicating Value to Customers

• Example: Tesla’s marketing conveys the value of sustainability and high-performance vehicles through influencer endorsements and clean energy-focused messaging.

12. Relationship Marketing vs. Selling

• Example: The loyalty programs at Sephora build long-term relationships by offering rewards and personalized experiences instead of just pushing for a sale.

13. Customer Experience Centered

• Example: Apple stores offering hands-on product testing, personalized tech support (Genius Bar), and a seamless retail experience to prioritize customer needs.

14. Evolving Role of the CMO

• Example: Procter & Gamble’s CMO overseeing data-driven marketing, digital transformation, and customer engagement strategies to drive business growth.

15. Brand Equity

• Example: Coca-Cola's global brand recognition and customer loyalty, which give the company a competitive advantage over competitors in the beverage industry.

16. Positioning

• Example: Volvo’s positioning around safety, where every marketing effort aligns with the brand’s core value of providing secure vehicles.

17. Suitability for Products and Services for Sale Online

• Example: Warby Parker selling glasses online, offering virtual try-on tools, making them suitable for digital commerce.

18. Collaborative Connectivity

• Example: Customer care teams interacting with customers via social media platforms and providing real-time, personalized responses.

19. Collaborative Filtering

• Example: Netflix recommending shows based on the viewing history and preferences of similar users.

20. SEO and SEM Synergy

• Example: A business using both search engine optimization (SEO) for organic traffic and search engine marketing (SEM) for paid ads to increase visibility online.

21. Reality of Online Economics and Competition

• Example: Amazon’s pricing strategy, where it competes globally through aggressive pricing, customer loyalty, and large-scale operations.

22. SEM (Search Engine Marketing)

• Example: When a company pays for Google Ads to appear at the top of search results for relevant keywords, such as "best laptops."

23. Bricks-and-Clicks Potential

• Example: Walmart offers both in-store and online shopping options, allowing customers to buy products online and pick them up in-store.

24. SEO

• Example: A small business using keyword optimization on its website to increase its chances of appearing on search engine results when customers search for related products.

25. Internet of Things (IoT)

• Example: Smart thermostats like Nest that adjust temperature based on user preferences and data collected from your usage patterns.

26. Cross Channel Marketing

• Example: Nike promoting a product on Instagram, Facebook, and its website, ensuring consistent messaging across all platforms.

27. Fundamental Systemic Changes Brought About by Digital

• Example: The transition to online learning platforms (e.g., Coursera) and remote work tools (e.g., Zoom) due to digital technology.

28. Cross-Platform Marketing

• Example: Starbucks running campaigns across Facebook, Instagram, and their mobile app to engage customers at multiple touchpoints.

29. Internet Roles

• Example: The internet acting as a communication tool (email), a shopping platform (Amazon), and a place for social interaction (Facebook).

30. 7C Framework Online Marketing

• Example: A digital marketing strategy that addresses the core basics, context, content, community, communication, commerce, and connection, such as a brand's online presence.

31. Approaches to Market Segmentation:

Flashcard:

• Term: Approaches to Market Segmentation

• Definition: Methods used to divide a broad target market, typically by demographics, psychographics, behavior, or geographic locations.

• Real World Example: A cosmetics company might segment the market based on age and skin type, creating products specifically for teens, adults, or older consumers with sensitive skin.

32. Behavioral Segmentation:

Flashcard:

• Term: Behavioral Segmentation

• Definition: Dividing a market based on consumer behaviors, such as purchase habits, brand loyalty, and product usage.

• Real World Example: Amazon uses behavioral segmentation to recommend products based on a customer’s browsing and purchasing history, tailoring its suggestions accordingly.

33. Geographic Segmentation:

Flashcard:

• Term: Geographic Segmentation

• Definition: Dividing a market based on physical location, such as region, city, or climate.

• Real World Example: A company selling winter clothing might focus its marketing efforts on regions with cold winters, while a sunscreen brand focuses on sunny or coastal areas.

34. Psychographic Segmentation:

Flashcard:

• Term: Psychographic Segmentation

• Definition: Segmenting markets based on lifestyles, values, and interests.

• Real World Example: Patagonia markets its products to environmentally-conscious consumers who value sustainability, aligning their brand values with their customers' interests.

35. Demographic Segmentation:

Flashcard:

• Term: Demographic Segmentation

• Definition: Dividing a market based on factors such as age, gender, income, education, etc.

• Real World Example: A car manufacturer may offer a luxury car model for high-income individuals and a budget model for younger or first-time car buyers.

36. Target Market Definition:

Flashcard:

• Term: Target Market Definition

• Definition: A specific group of consumers identified as the ideal audience for a product or service.

• Real World Example: Tesla targets affluent, environmentally-conscious consumers who are willing to invest in electric vehicles.

37. Segmenting Business Markets:

Flashcard:

• Term: Segmenting Business Markets

• Definition: The process of dividing business markets into subgroups based on industry, company size, purchasing behavior, or needs.

• Real World Example: A software company may offer different subscription tiers for small businesses, mid-sized companies, and large enterprises, each with specific features and pricing.

38. Positioning Strategy:

Flashcard:

• Term: Positioning Strategy

• Definition: Developing a unique market position for a product based on its characteristics and the needs of the target market.

• Real World Example: Volvo positions itself as the safest car brand, focusing on safety features in its marketing campaigns to attract safety-conscious buyers.

39. Perceptual Mapping:

Flashcard:

• Term: Perceptual Mapping

• Definition: A visual representation of how consumers perceive a brand or product in comparison to competitors.

• Real World Example: A smartphone brand might use a perceptual map to display how its phone compares to other brands in terms of price and quality, helping guide strategic decisions.

40. Marketing Mix (4Ps):

Flashcard:

• Term: Marketing Mix (4Ps)

• Definition: The combination of Product, Price, Place, and Promotion used to promote and sell a product.

• Real World Example: Coca-Cola uses various strategies in its marketing mix, including setting affordable prices, distributing globally, promoting via ads, and maintaining product consistency.

41. Product Life Cycle:

Flashcard:

• Term: Product Life Cycle

• Definition: The stages a product goes through from introduction to decline: Introduction, Growth, Maturity, and Decline.

• Real World Example: The iPhone was in the growth stage in its early years, and now it’s in the maturity stage, with incremental updates and a steady customer base.

42. Introduction Stage of Product Life Cycle:

Flashcard:

• Term: Introduction Stage of Product Life Cycle

• Definition: The phase when a product is first launched into the market and faces the challenge of building awareness.

• Real World Example: Tesla’s Model 3 was introduced with significant marketing efforts to build awareness and excitement in the electric vehicle market.

43. Growth Stage of Product Life Cycle:

Flashcard:

• Term: Growth Stage of Product Life Cycle

• Definition: The phase when product sales grow rapidly, and competitors begin to enter the market.

• Real World Example: Streaming services like Netflix experienced rapid growth as more consumers subscribed to online media during the 2010s.

44. Maturity Stage of Product Life Cycle:

Flashcard:

• Term: Maturity Stage of Product Life Cycle

• Definition: The stage where product sales stabilize and marketing efforts shift to differentiating from competitors.

• Real World Example: Coca-Cola’s classic soda is in the maturity stage, with stable sales, broad availability, and marketing that emphasizes brand loyalty.

45. Decline Stage of Product Life Cycle:

Flashcard:

• Term: Decline Stage of Product Life Cycle

• Definition: When product sales begin to decrease due to market saturation, competition, or changes in consumer preferences.

• Real World Example: The sales of DVDs and Blu-ray discs have been in decline due to the rise of digital streaming services.

46. Brand Equity:

Flashcard:

• Term: Brand Equity

• Definition: The value and perception of a brand based on consumer experiences, associations, and loyalty.

• Real World Example: Apple’s brand equity is extremely high, with consumers willing to pay premium prices for its products due to strong brand associations with quality and innovation.

47. Brand Loyalty:

Flashcard:

• Term: Brand Loyalty

• Definition: The tendency of consumers to consistently choose one brand over others.

• Real World Example: Starbucks has a loyal customer base that frequently returns due to its consistent product quality and personalized service.

48. Co-Branding:

Flashcard:

• Term: Co-Branding

• Definition: A marketing strategy where two brands collaborate on a product or promotion to leverage each other’s brand equity.

• Real World Example: Doritos and Taco Bell have teamed up to create the Doritos Locos Taco, combining both brands’ strengths for increased customer appeal.

49. Private Label Brands:

Flashcard:

• Term: Private Label Brands

• Definition: Products sold under a retailer's brand rather than a manufacturer’s brand, often at a lower price.

• Real World Example: Costco’s Kirkland brand offers products ranging from food to clothing, providing quality alternatives to name-brand goods.

50. Branding Strategies:

Flashcard:

• Term: Branding Strategies

• Definition: Methods used to create, differentiate, and communicate a brand’s identity, including individual, family, and umbrella branding.

• Real World Example: Unilever uses a family branding strategy, with brands like Dove, Axe, and Ben & Jerry’s all grouped under the company’s overarching identity.

51. Umbrella Branding:

Flashcard:

• Term: Umbrella Branding

• Definition: A branding strategy where a company uses one brand name for multiple products, often related or complementary.

• Real World Example: Virgin uses umbrella branding for various industries, from Virgin Airlines to Virgin Galactic.

52. Individual Branding:

Flashcard:

• Term: Individual Branding

• Definition: A strategy where each product has its own brand name, distinct from the parent company.

• Real World Example: Procter & Gamble (P&G) employs individual branding for products like Tide, Pampers, and Gillette.

53. Family Branding:

Flashcard:

• Term: Family Branding

• Definition: A branding strategy where multiple products are marketed under a single brand name.

• Real World Example: Kellogg’s uses family branding for products like Cornflakes, Rice Krispies, and Frosted Flakes.

54. Brand Extension:

Flashcard:

• Term: Brand Extension

• Definition: A marketing strategy where an established brand name is used to introduce new products or product categories.

• Real World Example: Starbucks extended its brand by offering bottled drinks, packaged coffee, and even merchandise beyond just coffee shop services.

55. Brand Repositioning:

Flashcard:

• Term: Brand Repositioning

• Definition: The process of changing the market's perception of a brand, often by altering its image, target audience, or positioning.

• Real World Example: Old Spice repositioned itself from a brand targeted at older men to a more youthful and humorous brand appealing to younger consumers.

56. Brand Personality:

Flashcard:

• Term: Brand Personality

• Definition: The set of human traits attributed to a brand, which can influence consumer preferences and loyalty.

• Real World Example: Coca-Cola’s brand personality is friendly, happy, and social, reflected in its marketing campaigns.

57. Brand Awareness:

Flashcard:

• Term: Brand Awareness

• Definition: The degree to which consumers can recognize or recall a brand.

• Real World Example: McDonald's has high brand awareness worldwide due to its extensive advertising and iconic golden arches.

58. Differentiation:

Flashcard:

• Term: Differentiation

• Definition: A marketing strategy that focuses on distinguishing a product from competitors through unique features, quality, or services.

• Real World Example: Tesla differentiates itself in the electric vehicle market with advanced technology, sustainability efforts, and high performance.

59. Competitive Advantage:

Flashcard:

• Term: Competitive Advantage

• Definition: The edge a company has over its competitors, achieved through factors like cost leadership, differentiation, or market niche.

• Real World Example: Amazon has a competitive advantage due to its vast logistics network, fast shipping, and dominant online marketplace.

60. Cost Leadership Strategy:

Flashcard:

• Term: Cost Leadership Strategy

• Definition: A strategy where a company aims to become the low-cost producer in an industry to attract price-sensitive customers.

• Real World Example: Walmart uses a cost leadership strategy by offering low prices on a wide range of products, attracting customers seeking value.

61. Differentiation Strategy:

Flashcard:

• Term: Differentiation Strategy

• Definition: A strategy where a company offers unique products that stand out from competitors in terms of quality, design, or customer experience.

• Real World Example: Apple’s differentiation strategy is based on the premium design, user experience, and innovative features of its devices.

62. Focus Strategy:

Flashcard:

• Term: Focus Strategy

• Definition: A strategy where a company targets a specific niche market and tailors its products or services to meet the needs of that segment.

• Real World Example: Rolls-Royce uses a focus strategy by targeting high-income individuals who seek luxury and exclusivity in their vehicles.

63. Market Penetration Strategy:

Flashcard:

• Term: Market Penetration Strategy

• Definition: A growth strategy that focuses on increasing sales of existing products in existing markets through aggressive marketing, pricing, or distribution efforts.

• Real World Example: McDonald's uses market penetration by expanding its menu options and store locations to increase its customer base.

64. Market Development Strategy:

Flashcard:

• Term: Market Development Strategy

• Definition: A strategy that focuses on entering new markets to sell existing products.

• Real World Example: Starbucks used market development by opening stores in new countries, such as China, to increase its market reach.

65. Product Development Strategy:

Flashcard:

• Term: Product Development Strategy

• Definition: A strategy where a company develops new products to sell in existing markets.

• Real World Example: Nike uses product development by introducing new athletic footwear models and apparel to existing customers.

66. Diversification Strategy:

Flashcard:

• Term: Diversification Strategy

• Definition: A strategy where a company expands into new markets with new products to reduce risk and increase revenue.

• Real World Example: Amazon used diversification by expanding from an online bookstore to selling a wide range of products and offering services like AWS (Amazon Web Services).

67. Intensive Growth Strategies:

Flashcard:

• Term: Intensive Growth Strategies

• Definition: Strategies that focus on increasing market share through tactics like market penetration, market development, and product development.

• Real World Example: Coca-Cola uses intensive growth strategies by frequently launching new marketing campaigns and expanding its product offerings.

68. Defensive Marketing:

Flashcard:

• Term: Defensive Marketing

• Definition: Marketing strategies aimed at defending a brand's market share against competitors.

• Real World Example: Coca-Cola engages in defensive marketing by continuously promoting its brand to fend off competition from Pepsi.

69. Customer Lifetime Value (CLV):

Flashcard:

• Term: Customer Lifetime Value (CLV)

• Definition: A metric that represents the total value a customer is expected to bring to a company over the entire duration of their relationship.

• Real World Example: A subscription service like Netflix uses CLV to determine how much to spend on acquiring new customers by estimating the long-term revenue from each subscription.

70. Customer Relationship Management (CRM):

Flashcard:

• Term: Customer Relationship Management (CRM)

• Definition: A strategy for managing a company’s interactions with current and potential customers, often using technology to analyze data and improve customer relationships.

• Real World Example: Salesforce provides CRM software to businesses, helping them manage customer relationships, track interactions, and improve sales strategies.

71. Customer Satisfaction:

Flashcard:

• Term: Customer Satisfaction

• Definition: A measure of how well a company’s products or services meet or exceed customer expectations.

• Real World Example: Amazon focuses on customer satisfaction through fast shipping, easy returns, and responsive customer service.

72. Customer Loyalty Programs:

Flashcard:

• Term: Customer Loyalty Programs

• Definition: Programs designed to encourage repeat purchases and long-term customer loyalty, often through rewards or incentives.

• Real World Example: Starbucks Rewards program gives customers points for every purchase, which can be redeemed for free drinks and other perks.

73. Direct Marketing:

Flashcard:

• Term: Direct Marketing

• Definition: A marketing strategy where companies communicate directly with customers, typically through channels like email, phone, or direct mail.

• Real World Example: Companies like Avon use direct marketing by sending catalogs to customers and encouraging them to place orders via phone or online.

74. Digital Marketing:

Flashcard:

• Term: Digital Marketing

• Definition: The use of online platforms, social media, search engines, and email to promote products and engage with customers.

• Real World Example: A fashion retailer uses Instagram and Facebook ads to reach potential customers and drive sales.

75. Influencer Marketing:

Flashcard:

• Term: Influencer Marketing

• Definition: A form of marketing where brands collaborate with influencers to promote their products to a targeted audience.

• Real World Example: Fashion brands partner with influencers on platforms like Instagram to reach a broader audience and boost sales.

76. Social Media Marketing:

Flashcard:

• Term: Social Media Marketing

• Definition: The use of social media platforms to promote products, engage with customers, and increase brand awareness.

• Real World Example: Brands like Nike use platforms like Instagram and Twitter to promote their products, share content, and engage with customers.

76. Persona Best Practices:

Flashcard:

• Term: Persona Best Practices

• Definition: Use real data, keep personas specific, regularly update, and share across the organization.

• Real World Example: Starbucks regularly refines its customer personas based on ongoing data collection about consumer preferences, and it shares updated insights across teams to improve product offerings and marketing campaigns.

77. Reasons to Engage in Segmentation:

Flashcard:

• Term: Reasons to Engage in Segmentation

• Definition: To better understand customers and target them more effectively. It helps tailor marketing strategies to meet the specific needs and preferences of different customer groups.

• Real World Example: Coca-Cola uses segmentation by offering a wide variety of beverages, such as Diet Coke, Coca-Cola Zero, and regular Coke, to cater to different consumer preferences, such as taste, health, and calorie-consciousness.

78. Characteristics of Strong Market Segments:

Flashcard:

• Term: Characteristics of Strong Market Segments

• Definition: Measurable, Accessible, Substantial, Differentiable, and Actionable.

• Real World Example: Apple targets the high-end market segment with its iPhone Pro models, using premium pricing, which is measurable (in terms of consumer income), accessible (through Apple stores and online), substantial (with millions of users), and actionable (with distinct marketing efforts).

79. Culture and Its Implications:

Flashcard:

• Term: Culture and Its Implications

• Definition: Culture refers to shared beliefs, values, customs, and behaviors of a group of people. It influences perception, interaction, and decision-making.

• Real World Example: McDonald's adapts its menu offerings to reflect local cultures, such as offering a McAloo Tikki burger in India or teriyaki burgers in Japan, recognizing cultural tastes and preferences.

80. Importance of Getting Culture Right:

Flashcard:

• Term: Importance of Getting Culture Right

• Definition: Crucial for success in international business, involving respect, adaptation, and relationship-building.

• Real World Example: When entering China, Walmart had to adapt its store layout and product offerings to accommodate local preferences, such as smaller aisles and local food items, to better align with Chinese cultural norms.

81. Country Adaptation Requires a Strong Essential/Consistent Foundation:

Flashcard:

• Term: Country Adaptation Requires a Strong Essential/Consistent Foundation

• Definition: Need for maintaining core consistency while adapting to local markets.

• Real World Example: Nike maintains its brand values around innovation and performance but adapts its marketing campaigns to local preferences, like highlighting soccer (football) in markets like Europe and South America, while emphasizing basketball in the U.S.