Marketing Definitions

Marketing Definition

• Marketing involves business activities that direct the flow of goods and services from producers to consumers, according to the American Marketing Association (AMA) in 1935.
• Marketing encompasses the planning and execution of conception, pricing, promotion, and distribution to create exchanges that satisfy individual and organizational goals, AMA, 1985.
• Marketing is an organizational function focused on creating, communicating, and delivering value to customers, while managing customer relationships to benefit the organization and stakeholders, AMA, 2004
• Marketing is the activity, a set of institutions, and processes for creating, communicating, delivering, and exchanging offerings with value for customers, clients, partners, and society, AMA 2007, 2017

Marketing Definitions

• Marketing creates, communicates, delivers, and exchanges offerings with value for customers, clients, partners, and society at large (2017, AMA).
• Dr. Philip Kotler defines marketing as the science and art of exploring, creating, and delivering value to satisfy a target market’s needs at a profit.
• Marketing identifies unfulfilled needs and desires and quantifies associated market size and potential profit.
• Marketing pinpoints the customer segments a company can best serve, and designs and promotes appropriate products and services.

Important Terms and Definitions

• Marketing research connects the consumer, customer, and public to marketers through information for identifying marketing opportunities and problems (2017, AMA).
• Marketing research generates, refines, and evaluates marketing actions, monitors performance, and improves the understanding of marketing.
• A brand is a name, term, design, symbol, or feature that distinguishes a seller's goods or services.
• A brand is an offering from a known source.

Core Marketing Concepts

• Needs are basic human requirements like food, air, water, clothing, and shelter.
• A want is a specific satisfier for a need, e.g., wanting curry to satisfy the need for food.
• Demands are wants for specific products, supported by the ability to pay.
• A product is a bundle of benefits, a consumer-oriented perspective focused on benefit.
• Companies address needs with a value proposition, communicated through a combination of products, services, information, and experiences.
• Value is the customer-perceived sum of tangible and intangible benefits, minus costs.
• A "customer value triad" consists of quality, service, and price, where value increases with quality/service and decreases with price.
• Value is central to marketing: identification, creation, communication, delivery, and monitoring of customer value.
• Satisfaction is a consumer's judgment of a product's perceived performance against expectations.

What is Marketed

• Goods: Physical goods are the bulk of production and marketing effort in most countries.
• Services: Services become a growing focus as economies become more advanced.
• Events: Marketers promote time-based events such as trade shows, performances, and anniversaries.
• Experiences: Firms can create, stage, and market experiences by orchestrating services and goods.
• Persons: Celebrity marketing helps artists, executives, physicians, and professionals
• Places: Tourist attraction for cities, states, regions, and nations.
• Properties: Real estate, stocks, and bonds
• Organizations: Organizations build a favorable reputation.
• Information: Schools produce and market information for communities.
• Ideas: Every market offering includes a basic idea.

Marketing Environment

• Marketing environment consists of both the internal and external spheres.
• External environment: all happenings outside the organization.
• Internal environment: marketing factors that happen within the organization.
• Organizations often focus more on the external environment’s importance.
• Reactive managers respond to environmental forces with the adjustment of marketing plans, considering these factors uncontrollable.
• Proactive managers seek to alter the organization's environment.

4 Ps of Marketing

• A product is a bundle of attributes (features, functions, benefits, and uses) that can be exchanged or used, in tangible and intangible forms.
• Products can be an idea, a physical entity, or a service.
• Price indicates the money, goods, or services needed to acquire something in return.
• It is what a customer must pay to get a product.
• Distribution markets products to the consumer.
• Distribution also describes the scope of coverage for a given product.
• Distribution is represented by place or placement.
• Promotion consists of tactics that encourage short-term purchase, influence trials, quantity, and are measurable in volume, share, and profit (ANA).
• Examples of promotions tactics include coupons, sweepstakes, rebates, premiums, special packaging, cause marketing, and licensing.

7 Ps of Marketing

• People are essential: restaurant waiters who deal directly with consumers form the customer experience.
• The waiter is part of the product the consumer buys.
• Process: service delivery influences consumer payment, like fast-food vs restaurant dining.
• Physical evidence: restaurants meals contain a physical dish, and a hair dressing salon a physical hairstyle.

Marketing Mix

• The marketing mix contains promotion, place, price and product surrounding the target market.
• Key elements of product include product variety, quality, design, features, brand names, packaging, sizes, services, warranties and returns.
• Key point in place consist of channels, coverage, assortments locations, inventory and transport.
• Key elements of price consist of list price, discounts, allowances, payment period and credit terms
• Key elements in promotion consist of sales promotion, advertising, sales force, public relations and direct marketing

Holistic Marketing Management

• Holistic marketing is based on the creation, design, and implementation of marketing initiatives that recognize the breath and interdependencies.
• Holistic marketing recognizes the importance of all aspects of marketing.
• Relationship marketing aims to create mutually beneficial and lasting relationships to retain their business.
• Internal marketing is designed ensure appropriate senior management by following principles designed train and motivate able employees.
• Integrated marketing utilizes activities and programs to create, communicate, and deliver consumer value.
• Integrated marketing considers that many different marketing activities create value, and all marketing activity should be in mind.

Holistic Marketing Orientation and Customer Value

• The holistic marketing framework addresses three marketing keys including: value exploration, value creation, and value delivery.
• Value exploration focuses on how to identify new value opportunities.
• Value creation focuses on creating promising new value offerings.
• Value delivery optimizes the company's capabilities to deliver new value effectively.

Value Chain Model

• Michael Porter proposed the value chain as a tool for identifying ways to create customer value.
• Firms use activities like design, market, and support for its product.
• Value chain comprises nine strategic activities including five primary and four support.
• Four support activities are for procurement technology development, human resources and firm infrastructure.
• Primary activities include inbound and outbound logistics, operations, marketing, sales, and services.
• The firm's task is to examine costs and performance in each value-creating activity and look for ways to improve it.
• Organizations should evaluate competitor's costs and performance, and consider the best practices of the best companies.

Industry Life Cycle Model

• The industry life cycle model is segmented including the Development, Growth, Shakeout, Maturity, and Decline stages.
• The "Development" stage is characterized by few adopters and few competitors
• The "Growth" stage is characterized by growing adopters and entry by competitors. _ The "Shakeout" stage is characterized by growing selectivity and likely price cutting in the market.
• The "Maturity" stage is characterized by saturation from users, but difficulties in maintain or gaining share. _ The "Decline" stage is characterized by drop off in usage, and exit of some competitors.

Product Life Cycle

• The product life cycle model is defined including the Introduction, Growth, Maturity, and Decline segments.
• The "Introduction" stage is characterized by low sales, high costs per customer, financial losses, and few competitors.
• The "Growth" stage is characterized by increasing sales and profits and more competitors. _ The "Maturity" stage is characterized by peak sales, high profits, and a high number of competitors.
• The "Decline" stage is characterized by sales and profit falls, and declining number of competitors.

Steps in Market Segmentation, Targeting and Positioning

• Steps for Market Segmentation, Targeting, and Positioning include the major steps of Market Segmentation, Target Marketing and market positioning.
• The steps for Market Segmentation is identifying segmentation bases, and developing segment profiles.
• Steps for Target Marketing is developing attractiveness measurement, and then selecting target segments
• Steps for Market positioning include developing target segment positioning and then developing a marketing mix for each segment.

Market Segmentation

• Market segmentation is characterized by segmenting a market into distinct groups with similar needs, behaviors or traits that are open to segmented marketing mixes.

Segmenting Consumer Markets

• Consumer markets can be broken down into several different market segments including geographical, demographic, psychographic, and behavioral.
• Demographic segmentation contains the popular segmentation criteria (age, sex, eduction)
• Psychographic segmentation is lifestyle, social class, and personality-based segmentation.

Target Marketing

• The target Market: A set of buyers with common needs whom the company decides to serve.
• Evaluating Target Market Segments consists of segment size and growth and the company's objectives and resources.
• Evaluating the attractiveness of market segments includes understanding level of competition and substitute products.
• Evaluating the attractiveness of market also including understanding power of buyers, and powerful supplies.

Target Marketing segments.

• Common target marketing segments include undifferentiated marketing, differentiated marketing, concentrated marketing, and micro marketing.
• When choosing a target market, organizations should be aware of company and resources, the degree of product variability, the products life cycle stage, competitors marketing stage, and market variability.

Socially Responsible Targeting

• Some market segments are very abuse able, and are categorized as high risk.
• Many potential abuses are seen on the internet.
• Controversies can arise when target methods are questionable

Positioning

• Selecting Target Market Segments consists of finding a place in customers minds by understanding the key attributes.
• Selecting Target Market Segments typically are defined by consumers are the basis of important attributes.
• Selecting Target Market Segments involves implanting a brands unique benefits that influence costumers decisions
• selecting the right target Market includes a positioning maps that chart perception

Choosing a Positioning Strategy

• When identifying target markets, consider advantages to compete like products, services, channels, people and images.
• When choosing advantage, it is important to define the product position with its different characteristics including superior and affordable.
• When identifying, define unique selling for the product, that is communicative, preemptive, and profitable.

Choosing a Positioning Strategy

• Value propositions represent the full positioning of a brand.
• value Propositions can include More for More/ the Same/Less
• Communicating the Positioning the organization must be careful to deliver to values
• Positions must be monitored and adapted through time.

Brand Value Chain

• Provides companies with snapshot of the brand with structured of its value and program investments (Keller 2013).
• Brand value chain is based on four basic principles: assumptions, creations, factors and recognitions

Key items of the Brand Value Chain include Marketing and program investments, Customer Mindset, Market Performance and Shareholder Value