Marketing Communications
Basics of Marketing:
Terms to Know:
● Marketing: The process of creating, distributing, promoting, and pricing goods, services
and ideas to facilitate satisfying exchange relationships with customers in a dynamic
environment.
● Customer: The purchasers of organizations products; the focal point of all marketing
activities.
● Target Market: The specific group of customers for whom an organization focuses its
marketing efforts.
Marketing Mix: Contains the four Marketing Activities (4 P’s) - Product, Place, Promotion, and Pricing. These parameters CAN be controlled by marketers to appeal to the target market. We CANNOT control the forces of the environment.
Promotion- The advancement of a product, idea, or a point of view through informing the consumers through various communication channels.
Product - a good or service that most closely meets the requirements of a particular market and yields enough profit to justify its continued existence
Place/Distribution - where the product will be sold and how it will be delivered to the market
Price - quantity of payment someone gives in return for a good or service
(MOST IMPORTANT!)
Market Segmentation - marketing strategy which involves dividing a broad target market into subsets of consumers, businesses, or countries that have, or are perceived to have, common needs, interests, and priorities, and then designing and implementing strategies to target them.
● Demographics: Covers whole societies, or groups defined by “black and white” criteria
such as gender, age, income, class, or education.
● Psychographics: The study of personality, values, opinions, attitudes, interests, and
lifestyles.
● Geographics: The segmentation of a market by area, such as cities, counties, regions,
countries, and international regions.
● Behavioral: Segments the intended market into consumers based on their behavior
regarding our product. This can involve the consumer’s loyalty, knowledge of, attitude
towards, and use of our product.
● Marketing functions:
○ Product/Service Management
○ Distribution
○ Selling
○ Marketing-Information Management
○ Financing
○ Pricing
○ Promotion
● Internal Environment- factors, events, and conditions within a business that influence its
choices and activities, and the employees behavior
● External (operating) Environment- Factors, events, and conditions surrounding a business
(not within) that influence its actions and choices and determines opportunities and risks
Channel Management
● Channel Management- A company's activities in organizing its different distribution
channels and selling effectively through them
● Channel- A way in which products or services are made available to customers
● Channels of Distribution- Chains of businesses through which a service must pass in
order to reach the consumer. Includes wholesalers, retailers, distributors, the internet, etc.
Direct channels (shorter) allow consumers to buy goods from manufacturers, while
indirect channels allow product to be bought from a wholesaler. The longer the dist.
channel, the less effective for product manufacturer (aka less profit)
● Direct Channels (Producer -> Consumer)
○ Online shopping
○ Industrial Goods
● Indirect Channels (Intermediaries)
○ Producer > Retailer > Consumer
■ Chain Stores
■ Frequent and Regular updates
○ Producer > Wholesale > Retail > Consumer
■ Staple Goods
● Consumer goods (such as bread, milk, paper, sugar) that are
bought often and consumed routinely.)
○ Producer > Agent > Wholesale > Retail > Consumer
■ Manufacturing company doesn’t want to deal with logistics
○ Producer > Agent > Retail > Consumer
■ Short time storage goods
● Luxury goods, cosmetics, perishable goods
● Vertical Channel Conflict:
● Horizontal Channel Conflict
● Co-Channel Management- A company's activities in organizing its different distribution
channels and selling effectively through them
Market - Information Management
● Market-Information Management- The practice of monitoring the marketplace,
organizing, and analyzing the results of data collection and developing strategies for
future marketing activities
● Marketing Planning- The process of analyzing one or more potentially interesting
marketplace in order to determine how a business can optimally compete in them.
Strategy that can be used to enhance sales for the business.
● SWOT analysis- A chart that businesses use to analyze and plan their companies by
identifying their Strengths, Weaknesses, Opportunities, and Threats.
● Primary Data: Experimentation, obtained by the Company
○ Survey Method: questionnaires and surveys
○ Interview Method: Focus groups
○ Observation Method: watched and recorded, either by cameras or by observers
○ Experimental: experiment, causal (if-then)
● Secondary Data:Usually provided by the government, observative
○ Advantages:
■ Easily Obtained
■ Cost effective
○ Disadvantages:
■ May not be suited for purpose
■ Can be out of date or otherwise inaccurate.
● GOAL: Limit Business Risks or Increase Profit:
○ Business risk- possibility that a company will have lower profit than anticipated,
or will face a loss rather than a profit. Influenced by many factors including: sales
volume, per-unit price, input costs, competition, overall economic climate and
government regulations
Product/Service Management
● Product/Service Management- The process of creating and
changing the information about a company's catalog of offerings.
Many business websites have a specialist who maintains their online
catalog according to the current list of products and services that the company provides to
customers.
● Customer relationship management- Managing a company's interactions with current and
future customers. Involves use of technology to organize, automate, and synchronize
sales, marketing, customer service/technical support (Coupons,emails,etc)
● Manufacturing- production of goods for use or sale using labor and machines, tools,
chemical and biological processing, or formulation.
● Wholesale- the business of selling things in large amounts to other businesses rather than
to individual customers
● Retail- The sale of goods or commodities in small quantities directly to consumers
● Quality Assurance- a program for the systematic monitoring and evaluation of the various
aspects of a project, service, or facility to ensure that standards of quality are being met
● Quota- A government-imposed trade restriction that limits the number or value of goods
and services that can be imported or exported during a particular time period. Used in
international trade to help regulate the volume of trade between countries.
● Warranty- sellers assure the purchaser that goods/service being purchased will work as
expected and if not, it shall be replaced/repaired
○ Implied (takes effect automatically by state law whenever a purchase is made)
○ Express (written)
■ Limited: may exclude certain parts of the product from coverage or
require the customer to bear some of the expense for repairs resulting from
defects.
■ Full: if a product is found to be defective within the warranty period, it
will be repaired or replaced at no cost to the purchaser.
● Bundling- A marketing strategy that joins products or services together in order to sell
them as a single combined unit. Bundling allows the convenient purchase of several
products and/or services from one company.
● Branding- marketing practice of creating a name,symbol, or design that sets apart and
identifies a product
● Product Mix- various products offered by a seller that can yield greater revenue when
marketed together rather than be sold individually
● Product life cycle- the period of time over which an item is developed, brought to market
and eventually removed from the market
○ Introductory Period: Any business that is launching a new product needs to appreciate
that this initial stage could require significant investment. This isn’t to say that spending a
lot of money at this stage will guarantee the product’s success. Any investment in
research and new product development has to be weighed up against the likely return
from the new product, and an effective marketing plan will need to be developed, in order
to give the new product the best chance of achieving this return.
○ Growth: Can be considered as the key stage for establishing a product’s position in a
market, increasing sales, and improving profit margins. This is achieved by the continued
development of consumer demand through the use of marketing and promotional activity,
combined with the reduction of manufacturing costs. How soon a product moves from the
introduction stage to the growth stage, and how rapidly sales increase, can vary quite a lot
from one market to another.
○ Climax: The highest point of a business’ success. The company is currently not being
affected by decreasing sales but that is to come in the foreseeable future.
○ Maturity: The business’ growth in sales diminishes. Now new competitors often enter
into the market. The primary objective of a mature business is to maintain their market
share. Furthermore, the business looks to maximize their profit to effectively hold their
leverage over competition.
Decline: The stage in the product life cycle in which overall sales diminish. The firm
must make a decision between keeping their current product, changing their product,
locating a new market for the product, or selling the product out. By keeping the product
the way it has been often results in even greater losses, if a new use for the product or
new target market can be established that is often the most effective approach while
maintaining the business, selling the company to another firm or liquidating out all the
resources is often the most financially secure approach.
○ How the Product Cycle Affects Marketing: During the introduction stage of the
product the firm will look to inform their target market about their product. The growth
stage requires the firm to both inform and persuade the consumer to buy their product.
The maturity stage tends to use marketing to persuade the audience as well as remind
them of the products greatness. During the decline stage companies will use the nostalgic
technique of reminding their market of their product. These explain the nature of the
promotional mix.
Promotion
● Promotional Mix- special combination of promotional methods used to advertise
product(s); includes advertising, direct selling, etc.
○ Purpose: helps market to target audience best, increase profit, brand recognition,
customer awareness, increase sales
● Selling- Concepts and actions needed for to determine clients needs and wants.
Enhancing future business opportunities
● Advertisement- marketing used to encourage/persuade/manipulate audience
○ Broadcast/print media- radio, magazines, newspapers, etc.
● Publicity- Type of promotion where information is disseminated through various media
to attract public notice.
● Specialty media- Relatively permanent promotional message printed on small, handy
items such as bags, calendars, cups, diaries, etc., given away as gifts to serve as
reminders.
● Direct marketing- company's message is provided directly to a potential customer(
typically used by companies with smaller advertising budgets, since they cannot afford to
pay for advertisements on TV); ex: catalogs, mailers and fliers.
● Public Relations: the professional maintenance of a favorable public image by a company
or other organization
● Word-of-mouth: An unpaid form of promotion in which satisfied customers tell other
people how much they like a business, product or service
● Sales Promotion: set of marketing activities undertaken to boost sales of the product or
service
● Promotional Plan: a vital planning tool by most business managers that helps contribute
toward the successful launch of a new product or service or its expansion into a new
market
Economics
● Price- quantity of payment someone gives in return for a good or service
● Pricing- Depending on the firm's average cost and customer's perceived value of the
product compared to the value of competitors and the economy
● Pricing/cost function- function of input prices and output quantity. basically calculates
the cost of making a certain output given input prices
● Purchasing- The activity of acquiring goods or services to accomplish the goals of an
organization.
Major objectives of purchasing are to
(1) maintain the quality and value of a company's products,
(2) minimize cash tied-up in inventory,
(3) maintain the flow of inputs to maintain the flow of outputs, and
(4) strengthen the organization's competitive position.
●
Communications
● Communication- IN BUSINESS, it is a key function of business. It happens between
levels, departments, and employees. It is a 2 way process of reaching mutual
understanding and exchanging info, news, ideas, etc.
● Channels of Communication- Mediums used to transfer message from 1 party to another.
Includes print media, internet, phones, broadcast media, etc.
● Internet- is now the World Wide Web (WWW) network of computers that is dispersedly
managed with minimal restriction.
● Intranet- Operates much the same as the Internet but is restricted to a single corporate
entity that has full control and management over it. Able to maximize restrictions over
users.
● Ethernet- standard cable for computers to hook up to the network. It is also used for
network devices (Routers, modems & switches) to interface with each other.
● Business activities- any activity engaged to make a profit. includes: operations,
marketing, production, administration
● Business environment- combination of internal/external factors what influence a
company's operating situation. Includes: client, suppliers, competition, technological
improvements, laws, market, economy
Customer Personalities
● Analytical Buyers: Analytical people are known for being systematic, well organized and
deliberate. These individuals appreciate facts and information presented in a logical
manner as documentation of truth. They enjoy organization and completion of detailed
tasks. Others may see him at times as being too cautious, overly structured, someone who
does things too much 'by the book'.
● Driver Buyers: They thrive on the thrill of the challenge and the internal motivation to
succeed. Drivers are practical folks who focus on getting results. They can do a lot in a
very short time. They usually talk fast, direct and to the point. Often viewed as decisive,
direct and pragmatic.
● Expressive Buyers: Very outgoing and enthusiastic, with a high energy level. They are
also great idea generators, but usually do not have the ability to see the idea through to
completion. They enjoy helping others and are particularly fond of socializing. They are
usually slow to reach a decision. Often thought of as a talker, overly dramatic, impulsive,
and manipulative.
● Amiable Buyers: They are dependable, loyal and easygoing. They like things that are
non-threatening and friendly. They hate dealing with impersonal details and cold hard
facts. They are usually quick to reach a decision. Often described as a warm person and
sensitive to the feelings of others but at the same time wishy-washy.
Here are some common terms related to business law:
Contract: A legally binding agreement between two or more parties.
Tort: A civil wrong that causes harm or loss to another party, leading to legal liability.
Liability: The state of being responsible for something, especially in terms of legal obligations.
Negligence: Failure to take proper care in doing something, which can lead to damage or injury to another party.
Breach of Contract: The failure to perform any term of a contract without a legitimate legal excuse.
Intellectual Property: Creations of the mind, such as inventions, literary and artistic works, designs, and symbols, names, and images used in commerce.
Incorporation: The process of legally declaring a corporate entity as separate from its owners.
Insider Trading: The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.
Arbitration: A method of resolving disputes outside the
Key Pointers for Marketing Information Management
Market-Information Management: Involves monitoring the marketplace and analyzing data collected to develop future marketing strategies.
Marketing Planning: The process of analyzing potential marketplaces to determine optimal competitive strategies.
SWOT Analysis: A chart used to analyze and plan by identifying Strengths, Weaknesses, Opportunities, and Threats.
Data Types:
Primary Data: Collected directly by the company through methods like surveys, interviews, and observations.
Secondary Data: Obtained from external sources, such as government reports, with pros and cons regarding ease of access and relevance.
Goals:
Key Points for Product/Service Management
Product/Service Management: The process of creating and changing the information about a company's catalog of offerings.
Online Catalog Maintenance: Many businesses have specialists who maintain their online catalog according to current products and services provided to customers.
Customer Relationship Management (CRM): Involves managing a company's interactions with current and future customers through technology to organize, automate, and synchronize sales, marketing, and customer service.
Manufacturing: The production of goods for use or sale using labor and machines, tools, or chemical processing.
Wholesale: Selling goods in large amounts to other businesses rather than to individual customers.
Retail: The sale of goods or commodities in small quantities directly to consumers.
Quality Assurance: Systematic monitoring and evaluation of various aspects of a project, service, or facility to ensure standards of quality are met.
Warranty Types:
Implied Warranty: Automatically takes effect by state law upon purchase.
Express Warranty: Written assurance covering the product's functionality with two types:
Limited Warranty: May exclude certain parts or require customer expenses for repairs.
Full Warranty: Covers repair or replacement at no cost within the warranty period.
Bundling: Marketing strategy that combines products or services to sell them as a single unit.
Branding: Creating a name, symbol, or design that identifies and sets apart a product.
Product Life Cycle: The period from the development of a product to its market removal includes stages: Introduction,