Podcast
Questions and Answers
What is the primary goal of marketing?
What is the primary goal of marketing?
What does operational marketing primarily focus on?
What does operational marketing primarily focus on?
Which term describes the act of acquiring a desired object in exchange for something of value?
Which term describes the act of acquiring a desired object in exchange for something of value?
What does a value proposition signify in marketing?
What does a value proposition signify in marketing?
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What do marketers need to manage effectively to build solid relationships?
What do marketers need to manage effectively to build solid relationships?
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What are the two main types of marketing described in the content?
What are the two main types of marketing described in the content?
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Which of the following best describes 'wants' in the marketing context?
Which of the following best describes 'wants' in the marketing context?
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What is the purpose of building strong relationships in marketing?
What is the purpose of building strong relationships in marketing?
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What does customer value involve according to the content?
What does customer value involve according to the content?
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What is meant by 'market' in a marketing context?
What is meant by 'market' in a marketing context?
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What is the relationship between expectations and perceptions in marketing?
What is the relationship between expectations and perceptions in marketing?
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What role does 'exchange' play in marketing?
What role does 'exchange' play in marketing?
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How does a value proposition differentiate a company from its competitors?
How does a value proposition differentiate a company from its competitors?
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What does maintaining and growing desirable exchange relationships require from marketers?
What does maintaining and growing desirable exchange relationships require from marketers?
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Which aspect is primarily highlighted by strategic marketing?
Which aspect is primarily highlighted by strategic marketing?
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What defines a target audience in marketing?
What defines a target audience in marketing?
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What is a key principle of managing customer expectations in marketing?
What is a key principle of managing customer expectations in marketing?
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How is customer value generally shaped according to marketers?
How is customer value generally shaped according to marketers?
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In marketing, what do 'needs' refer to?
In marketing, what do 'needs' refer to?
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Study Notes
Introduction to Marketing
- Marketing is a set of strategies and activities to attract and engage customers, building strong relationships to create customer value.
- Marketing's goals include attracting, keeping and growing customers, and establishing long-term relationships.
- Two key types of marketing are strategic marketing (analytical aspects), and operational marketing (putting strategies into practice).
- Research and analysis are crucial to identify a company's strengths and weaknesses.
- Marketing doesn't necessarily create needs; instead, it shapes the form of existing needs by culture and personal factors.
- Customer value and satisfaction are essential; companies must set appropriate expectations to build strong relationships.
- Exchange is getting a desired object by giving something in return. Relationships with customers are important.
- Markets are all potential and actual buyers; not just finding potential customers, but targeting the right ones is crucial.
- Value proposition is how a company differentiates itself from competitors by providing benefits and satisfying customer needs.
- The relationship between expectations and perceptions is categorized as E > P, E = P, E < P.
Marketing Orientations
- Production concept: Favors easily affordable and available products, focusing on efficiency.
- Product concept: Focuses on quality, performance and features of products.
- Selling concept: Relies heavily on promotion and selling efforts, as consumers are not satisfied readily. Risk of over-promotion.
- Marketing concept: Focuses on customer needs and wants.
- Societal marketing concept: Considers the needs and wants of customers and societal well-being.
Capturing Value from Customers
- Understanding the customer's needs.
- Designing a customer value-driven marketing strategy.
- Constructing an integrated marketing mix that delivers superior value.
- Engaging the customers and building profitable relationships.
- Creating customer delight
- Capture value from customers to create profits and customer equity.
Marketing Trends
- Increased use of online, mobile and social media
- Development of the IoT (Internet of Things)
- Increased use of digital, mobile and social media marketing
- Increased use of big data and AI
- Rise of rapid globalization.
Understanding the Marketplace. Buyer Behaviour
- Consumer buyer behavior for personal consumption.
- Where does data come from? Online browsing, purchases, social media, mobile devices (location, app usage, biometric data, call records), e-commerce (purchase history, preferences, payment), IoT devices (user habits and preferences), surveys and feedback, physical stores, cookies and tracking, third-party sources (demographics, income, psychographics).
- Ethical considerations: Privacy, data security, data protection, misuse.
- Culture influences buying behavior. Subcultures are groups of people with shared values.
- Reference groups serve as comparison points for consumers' behavior.
- Opinion leaders influence others. Word-of-mouth has social impact in purchasing behavior.
Influencer Marketing
- Established influencers spread positive information.
- A role has activities and status in a group, affecting purchasing.
- Occupation, age, lifestyle factors affect purchasing.
- Personality and psychographics are major factors.
- Motivation to buy arises from unmet needs.
- Customer perception of goods and services is vital.
- Learning from experiences influences beliefs and attitudes.
- Selective attitudes filter information perceived by consumers.
Types of Buying Decision Behavior
- Need recognition: Actual vs. desired state.
- Information search: Gathering information from different sources (personal, commercial, public, own experience).
- Evaluation of Alternatives: Assessing and comparing alternatives (attributes, capabilities, benefits, brand beliefs).
- Purchase decision: The actual buying choice. (attitudes of others, unforeseen factors).
- Post-purchase behavior: Customer satisfaction/dissatisfaction.
Segmentation, Targeting and Positioning
- Dividing a market into smaller segments with distinct needs.
- Identifying a target market: Buyers with shared characteristics that a company decides to serve.
- Segmenting consumer markets geographically, demographically, psychographically and behaviorally. (age, life-cycle, gender, income, occupation, education, religion, ethnicity, generation).
- Segmenting business markets similar to consumers, but also considers factors like customer operating characteristics, purchasing approaches, situational factors and personal characteristics.
- Segmenting international markets by geographic location, economic factors, political/legal factors and culture (Intermarket segmentation considers similar buyer needs across countries).
Strategic Marketing Management
- Defining a company's mission statement.
- Setting objectives and goals.
- Designing business portfolios.
- Planning marketing strategies.
- Strategic planning: Effectively using resources for achieving organizational goals.
- Business portfolio: A collection of businesses and product lines, crucial for future support.
- Evaluating business portfolio: Portfolio analysis for assessing profitability and planning future products/businesses (Boston Consulting Group (BCG) approach).
Marketing Planning Process
- Identifying, evaluating and selecting market opportunities.
- Establishing marketing strategies for growth opportunities and a growth grid (existing products/new markets, existing markets/new products, diversification).
- Market segmentation: Dividing a market into distinct groups of buyers.
- Market segments are groups of consumers who respond similarly to marketing efforts.
- Positioning describes the place a product occupies in the minds of consumers relative to competing products.
- Differentiation is creating a unique product to establish a competitive advantage.
Product: Goods and Services
- Product is anything that is offered to a market for purchase.
- Types of consumer products: convenience, shopping, specialty, unsought.
- Industrial products include materials and parts, capital items, supplies and services.
- Products have a lifecycle: development, Introduction, growth, maturity, decline, and a product lifecycle curve.
Service Marketing
- Intangible, inseparable, variable, perishable aspects of services.
- Importance of service quality, value, and differentiation.
- Internal, external, and interactive marketing, used by service firms for customer satisfaction and profitability.
- Brand equity: The differential effect of knowing the brand name.
- Packaging and labels are essential for brand identification.
Product Portfolio Management
- Product lines: Products from a company that are closely related.
- Product line length, filling, and stretching
- Product mix: All product lines a company carries.
- Product mix length, width, and depth. -Product mix is all the products a company carries, and length is the number of offerings within the mix, width is the number of product lines, and depth is the number of variations per product line.
Distribution Channels
- A value delivery network (VMS) - network of companies, suppliers, distributors, and customers.
- Few producers sell to final users directly, intermediaries are usually involved in distribution.
- Channel decisions involve long-term commitments with other companies.
- Channel members add value: transforming products, bridging gaps, providing information, creating incentives, facilitating exchange.
- Channel levels: Direct vs. indirect channels.
- Channel conflict between channel members at the same level or different levels.
- Vertical marketing systems (VMS) - producers, wholesellers, and retailers in a unified system.
- Multichannel distribution allows retailers to offer a seamless shopping experience across multiple channels.
- Omnichannel distribution integrates channels with consumer needs.
Physical Distribution
- Inefficiencies in the supply chain: Traffic congestion, high costs, remote area access, last-mile delivery, seasonal demand fluctuations, visibility, delays, outdated technologies, reduced efficiency, and inefficient route planning.
Pricing Strategies
- Price as the sum of all values that customers exchange for the benefits of having or using a product or service.
- 4cs: Customers, Current positioning, Competitors, and Costs.
- Value-based pricing: uses customer perceptions of value.
- Cost-based pricing: Sets costs as the basis for setting a product's price.
- Cost-plus pricing: Adds a markup to the product cost.
- Customer-value-based pricing: offers pricing strategies that meet customer value.
- Everyday Low pricing (EDLP): Constant low prices (consistent with customer value perception).
- High-low pricing: Higher prices with occasional discounts (customers perceive value from these promotions).
- Value-added pricing: Adding features or services to command a higher price (enhances value for a different kind of consumer).
- Competition-based pricing, setting prices based on competitors (can be challenging and challenging for success in the market ).
- Several types of pricing, including market skimming (high initial prices), market penetration (low initial prices), product line (different prices based on products within a line), optional pricing (optional features at a higher price), captive pricing (related product at a higher price), by-product pricing (pricing by-products), and product bundle pricing (selling products in bulk).
- Discount pricing, psychological pricing, promotional pricing, and segmented pricing.
Integrated Marketing Communications
- Promotion mix: The blend of communication tools used to build customer relationships.
- Advertising, personal selling, sales promotion, public relations, and direct and digital marketing.
- Personal selling: Direct interaction by sales personnel. (important for B2B).
- Public relations: Building good relations with the company's publics. (important for company image, reputation, and brand story).
- Direct and Digital marketing: Engaging directly with individual customers to build relationships (many forms on digital platforms).
- The New Marketing Communications Model: shift toward online, social, and mobile media (new tools for communication like blogs, mobile ads).
- Content marketing: Creating and sharing engaging content across different digital platforms. (valuable content important).
- Integrated marketing communications: Deliver a clear and consistent message across multiple channels (brand voice).
- Advertising strategy to accomplish advertising objectives and create advertising messages (creativity is essential).
Measurements of the Impact of the Marketing Plan
- ROI: Return on investment, net return from a marketing investment relative to the cost of investment.
- Measurement of profits generated by marketing activities.
- Impact of marketing strategies on customer value and relationship engagement (building customer relationships).
- Cost and improvements in customer acquisition and retention (critical for long-term success).
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Description
This quiz covers the fundamental concepts of marketing, including strategies for attracting and engaging customers, as well as the importance of building strong relationships and customer value. Learn about the differences between strategic and operational marketing, and understand the role of research and analysis in successful marketing practices.
