Marketing Overview

Marketing refers to all activities, institutions, and processes that create, deliver, communicate, and exchange offerings that are valuable to customers, clients, partners, and society.

The external marketing environment consists of five forces:

1. Competitive: Analyzing rivals' strengths and weaknesses.
2. Economic: Factors like inflation, recession, and unemployment influence buying behavior.
3. Technological: New technologies affect production, distribution, and communication.
4. Political/Legal: Laws, regulations, and political decisions influence business operations.
5. Social/Cultural: Changing demographics, values, and lifestyles shape consumer preferences.

Marketing is the process of creating value for customers and building strong customer relationships in order to capture value from customers in return.

A marketing plan is a formal document that outlines the marketing strategies and tactics for a specific product, service, or brand.

A marketing plan has several key components:

1. Executive Summary: A brief overview of the plan's main points.
2. Situation Analysis: An assessment of the internal and external environments.
3. Target Market: Identifying the specific group of customers to be reached.
4. Marketing Objectives: Specific, measurable, achievable, relevant, and time-bound goals.
5. Marketing Strategies: The overall approach to achieve the objectives.
6. Marketing Tactics: Specific actions to implement the strategies.
7. Budget: Financial allocations for marketing activities.
8. Implementation and Control: Putting the plan into action and monitoring its progress.

Market segmentation is dividing a larger market into smaller groups of consumers with similar needs, characteristics, or behaviors. It helps companies to target their marketing efforts more effectively.

Target marketing refers to the practice of concentrating marketing efforts on particular segments of the market that are most likely to respond to the message and purchase the product or service.

Marketing research is the systematic gathering, analyzing, and interpreting of data about consumers and the marketplace. It provides insights into customer needs and preferences, market trends, and competitor actions.

The value of a product is determined by its benefits compared to its costs. Benefits include its function, and emotional satisfaction, while costs include price, time spent, and emotional toll of the purchase decision.

A satisfied customer perceives the benefits they gain from a purchase to be greater than the costs they incur.

Utility refers to a product's ability to satisfy a person's needs or wants.

Form utility is about designing products with features that customers want.

Time utility refers to providing products when customers want them.

Place utility means providing products where customers want them.

Possession utility refers to providing terms of sale that make it easy for customers to take ownership of products.

Consumer goods are tangible products that consumers purchase for personal use.

Industrial goods are products purchased by companies to be used in the production of other goods.

Services are intangible products like professional advice, safety procedures, timely info, haircuts, or vacation arrangements.

Relationship marketing focuses on building long-lasting relationships between customers and suppliers.

Customer relationship management (CRM) is a structured method to build better information connections with clients and strengthen relationships.

The marketing environment includes external factors that might affect a business.

The political-legal environment is the relationship between business and government, often involving regulation of business.

The sociocultural environment includes changing demographics, values, religion, buying behavior, preferences, and activities.

The activities related to how and where customers can access a product.

Techniques used to communicate information about products, including advertising, personal selling, sales promotions, and public relations.

Creating a unified marketing strategy where all elements of the marketing mix work together harmoniously.

A group of individuals or organizations that a company targets with its marketing efforts.

Dividing a market into groups with similar wants and needs, creating more targeted marketing.

Geographic variables define market segments based on location, from countries to neighbourhoods.

Segments are defined by demographic characteristics, including age, income, gender, and ethnicity.

Combining geographic and demographic information to create more precise market segments.

Market segments are defined by lifestyle, personality, interests, and attitudes impacting buying behaviour.

Segments are based on how people behave when buying a product, like usage rate or occasion.

The process of studying customer needs and desires to understand how best to meet them.

Observation involves watching and recording consumer behavior.

A research method where information is gathered by asking questions to individuals or groups.

Gathering data through experiments to test and evaluate specific marketing strategies.

Utilizing pre-existing data and sources, already available, to gain insights.

Adjusting products for different markets, like using different packaging or ingredients.

Factors like transportation and selling costs across borders are considered in addition to domestic factors.

The process of getting products to consumers in international markets, which can involve challenges like different distribution networks or costs.

Promotion strategies need to be adapted to different cultural values and customs in other countries.

For small businesses, understanding and adapting to their target market's needs is crucial for success.

Gathering data from individuals through questionnaires, interviews, or online surveys to understand facts, opinions, or attitudes.

A group discussion with participants guided by a researcher to explore a topic, generate ideas, or uncover insights.

Comparing the responses of similar individuals across different situations or products to understand how certain factors influence choices.

The study of how individuals make purchase decisions and consume products.

Internal and external factors that influence a consumer's decision-making process, such as needs, perceptions, personality, social groups, and cultural background.

A strong preference for a specific brand that leads to repeated purchases.

The stages a consumer goes through when buying a product, from recognizing a need to evaluating the purchase.

The first step in the consumer buying process where a customer recognizes a need or problem that requires a solution.

The stage where consumers gather information about potential products from personal sources, marketing materials, public sources, and their own experiences.

The stage where consumers compare different options and evaluate their suitability to meet their specific needs.

The final stage in the consumer buying process where the customer actually makes the purchase decision.

The stage after a purchase where consumers reflect on their satisfaction with the product and its performance.

A market consisting of organizations that buy goods and services for their own use, resale, or production.

Distinctive characteristics of B2B buying behavior compared to individual consumer purchases, including larger order sizes, professional buyers, and emphasis on long-term relationships.

The use of online platforms to facilitate communication and social interaction between individuals, businesses, or organizations.