Marketing: AMA Definitions

Marketing Definitions

• American Marketing Association (AMA) definition of marketing (1935): Emphasizes directing the flow of goods and services from producers to consumers. This focuses on the movement of these offerings from the manufacturer to the buyer
• AMA definition of marketing (1985): Views marketing as a process of planning and executing the conception, pricing, promotion, and distribution of goods, ideas, and services to create exchanges that satisfy individual and organizational goals, expanding beyond physical goods to include services and ideas.
• AMA definition of marketing (2004): Marketing can be organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships, emphasizing long-term relationships with stakeholders.
• AMA definition of marketing (2007 & 2017): Marketing includes value for not only customers, clients, and partners but also society, and supports the environment
• Philip Kotler's definition: Marketing is both a science (data, research) and an art (creativity, communication), and concerns exploring, creating, and delivering value to meet the needs of a target market at a profit.

Key Marketing Terms

• Marketing research: A function that connects the consumer, customer, and public to the marketer, it identifies marketing opportunities, refines marketing actions, monitors performance, and enhances the understanding of marketing as a process to implement solutions.
• Brand: What distinguishes one seller's goods or services from another's.
• Need: Basic human requirement.
• Want: Specific satisfier for a need.
• Demand: A want for specific products that are supported with the consumers ability to pay.
• Product: A bundle of benefits with consumers buying a product only if they feel it will be of benefit.
• Value Proposition: benefits offered to customers, the intangible value can consist of products, services, information and experiences.
• Value: Tangible and intangible benefits minus costs to customers, and is primarily a combination of quality, service, and price (the "customer value triad")
• Satisfaction: A person's judgment of a product's perceived performance in relationship to expectations, if it exceeds or meets expectations, its satisfactory

What Can Be Marketed

• Goods: Physical products that constitute the bulk of most countries' production and marketing efforts.
• Services: Activities where economies focus on production.
• Events: The major trade shows, artistic performances, and company anniversaries.
• Experiences: Orchestrated goods and services to create memorable experiences.
• Persons: Celebrity marketing is a major business. People get help from celebrity marketers.
• Places: Actively compete for tourists, factories, company headquarters, and new residents.
• Properties: Intangible rights of ownership as real estate.
• Organizations: Work to build a strong, favorable, and unique image.
• Information: What books, schools sell.
• Ideas: Products and services delivering a basic idea.

Marketing Environment

• External Environment: Everything that happens outside the organization.
• Internal Environment: Marketing factors that happen within the organization.
• Reactive approach: Adjusting marketing plans in response to environmental changes.
• Proactive approach: Changing the organization's environment to influence marketing factors.

The 4 P's of Marketing

• Product: A bundle of attributes (features, functions, benefits, and uses) that can be tangible and intangible.
• Price: Formal ratio indicating the money, goods, or services needed to acquire another quantity of goods or services, the amount a customer must pay to acquire a product.
• Place (Distribution): The act of marketing and distribution products, location of product.
• Promotion: Tactics to encourage short-term purchase.

7 P's of Marketing

• People: Includes customer service agents which play a role in direct contact with consumer.
• Process: Delivers a positive experience.
• Physical evidence: Physical and intangible elements.

Holistic Marketing Management

• Holistic Marketing Concept: A concept bases on the creation of activities that recognizes their independence.
• Relationship Marketing: A strategy that builds long-term connections to retain customers
• Internal Marketing: Marketing that ensures external parties follow the companies visions and goals.
• Integrated Marketing: Combination of strategies so that the "the whole is greater than the sum of its parts."

Holistic Marketing Orientation

• Value exploration - identifying new value opportunities
• Value creation - efficiently create more promising new value offerings
• Value delivery - can a company use its capabilities and infrastructure to deliver the new value offerings more efficiently?

Value Chain Model

• Michael Porter proposed the value chain model.
• It identifies ways firms can creates customer value while synthesizing activites to design, produce, market, and deliver its products.
• The model identifies nine activities.
• Five Activities are primary such as inbound logistics, operations, or converting them into final products; outbound logistics or shipping out final products; marketing them, which includes sales; and servicing them.
• The firm's task is to examine its costs and performance in each value-creating activity and strive for improvement.
• Mangers estimate their performance against competition

Industry Life Cycle Model

• Development: Few users/buyers and competitors
• Growth: Growing buyers and entry of competitors
• Shakeout: Growing selectivity of purchasing and Shakeout of competitors
• Maturity: Saturation of users and maintaining competition
• Decline: Drop off in usage and exit of competition.

Product life cycle

• Low sales, financial losses, few customers
• The profits rise but, cost per customer falls.
• High profits and mass markets.
• Falling sales and reduced numbers of customers.

Steps in Market Segmentation, Targeting, and Positioning (STP)

• Market Segmentation: Dividing the total market into smaller groups with common needs and behaviors.
• Target Marketing: Choosing which specific segment(s) to target based on their attractiveness and alignment with your business.
• Market Positioning: Creating a unique image of the product in the minds of the target customers through target segments

Segmenting Consumers Market

• Geographic: Based on location.
• Demographics: Most popular, based on age, gender.
• Psychographic: Lifestyle social class and personality.
• Behavioral: Based on usage and loyalty.

Target Marketing

• A target market consists of a buyer with similar attributes that the company decides to serve.
• Evaluating market segments relies on deciding whether its worth serving the group based on viability.
• Strategies include Selecting Target Market Segments, Undifferentiated (mass) marketing, Differentiated (segmented) marketing, Concentrated (niche) marketing, Micromarketing (local or individual).

Choosing a Target Marketing Strategy

• Considerations include: Company resources, product variability, Market variability.
• Socially responsible targeting, those that help are often at special risk.

Positioning

• Positioning: Creating a unique image of product compared to competitors.
• Target Markets: The place product occupies in minds relative to competition.
• Involves marketing brands.
• Identifying Competitive Advantages to promote, what makes them stand out.
• Choosing the right competitive value with many differences.

Choosing Positioning Strategy

• Value propositions: Representing the full power
• Possible Values: Communicated among company policies and marketing strategies adapted over time.

Brand Value Chain

• Process of marketing and investment.
• Shows that brands can provide companies with snapshots.

Essentials Component of Business Model

• Value proposition: A product at a more attractive price.
• Target market: A group that has a more attractive product.
• Competition: That makes a product stand out among all other brands.
• Resource: The physical, financial, or natural assets of the company.
• Key Metrics: The ways that a company wants to see the results show up.
• Problem and solution: How the market will solve a bigger picture.
• Revenue: How the market will gain income with the cost.
• Profits: The amount the market will want when taking the revenue.

Common Types of Business Models

• Subscription: applied to brick and mortar and online services.
• Bundling: Companies selling two items or more together to lower the price.
• Freemium: Software company hosts and makes an accessible tool to users.
• Razor Blades: Companies with a cheap razer, and with future purchase companies will purchase accessory.
• Product to services: Companies to service customers and the product they want.
• Leasing Model: Agreements work with big names brand.
• Crowdsourcing: Involves receiving opinions from the public.
• One-for-One: Involves companies who will receive opinions with media.
• Franchise: Established for established services.
• Distribution: Responsibly for targeting market values
• Manufacturing: Model that refers to manufacturing.
• Retailer: Popular type of business that use all the big names.

Design Thinking

• Design Thinking: A way to take on design challenges by applying empathy, balance and problems are complex
• The Key: To integrate the art, business and culture to make a product better.

Design Thinking Process

• Empathize: Learn the audience.
• Define: Create the view based on users.
• Ideate: Come up with options.
• Prototype: Build representation to test.
• Test: Give options for ideas.

Linking Design Thinking and Business Strategies

• Storytelling: For growth in a brand.
• Strategic Foresight: For predictive values.
• Values: Can be redefined to fix change.
• Business: Can be designed.

Value Innovation

• Value Innovation: Happen where companies does something new by buyers and actions of the cost.
• Cost Saving: To eliminate factors.
• Buyer Value: To raise, and create new elements.

Strategy

• Blue Ocean: A system to achieve to open both differentiation and low cost with a new market and demands
• Blue Ocean aims: A way to create low cost by making competition.

What To Achieve in the market with new blue ocean, vs Red Ocean

• Create uncontested Market , Red Competing
• Market Relevant: The ocean needs to be making a way into people to need and demand the product.

Six Principles Model

• Reach New markets: Find where customer are
• Big Picture and focus: To achieve where market are
• Secure Strategy: Is unique to product.
• Removing Organization: To Overcome the change.
• Execution: Build around different strategies
• Ocean is what can can change with a new product to have great demand

Strategy Canvas

• Tools: Has both a vertical and horizontal access that measures factors to identify industry competitors

Strategies

• Vision statement: What can vision be defined as.
• Mission Statement: What is the mission for the business.
• Objectives: What must be known, and how results are measured.
• Policy: Rules must known with in the company.

Innovation

• Innovation: Process of turning new Ideas to making new business models.
• New is the process, and object that must be perceived.
• The discovery to be new, improved and must provide knowledge.

To innovate: What make the process

• Desirable: What customer would need .
• Position: Where the marker must position their target.
• Value: What the company can provide.

The innovation and Invention and where and what is more.

• Creation of invention
• The Market and the product comes in
• Usually reduced and induced
• Usually a target within different type's