Marketing Principles and Concepts

Marketing Principles

• Marketing is a management process focused on identifying, anticipating, and satisfying customer needs profitably.
• Its goal is facilitating exchange by creating, communicating, and delivering value to customers, partners, and society.
• Key aspects include product, price, place (distribution) and promotion.

Marketing Concepts

• Production Concept: Consumers favour affordable and readily available products.
• Product Concept: Consumers favour high-quality, performance-driven products, and organizations should continuously improve these aspects.
• Selling Concept: Consumers won't buy enough products without aggressive selling and promotion.
• Marketing Concept: Creating, delivering, and communicating superior customer value to target markets more effectively than competitors, emphasizing customer orientation and inter-functional coordination.

Customer Value

• Exchange Value: The value of a product to the consumer, often its price.
• Use Value: The product's usefulness to the consumer.
• Symbolic Value: The symbolic meaning consumers attach to a product to construct and participate in the social world.
• Value = Benefits - Cost

Customer Lifetime Value

• The total profit a company can expect from a customer over their relationship with the company.
• Retaining customers is cheaper than acquiring new ones.

Customer Needs/Resources

• Functional: Needs related to performing tasks.
• Social: Needs related to fitting in.
• Esteem: Needs related to self-worth.
• Resources: Money, time, physical resources (space, energy).
• Social capital: Resources related to social networks.

Value Proposition

• A solution proposed by a company to meet a customer's needs and wants in a cost-effective way.
• It addresses the customer's job-to-be-done and the pains/gains.

Customer Job-To-Be-Done (JTBD)

• Companies identify the tasks or problems customers are trying to accomplish with their purchases.
• Identifying the pain points customers try to avoid and the gains they are looking for.
• This helps to better tailor solutions & understand the customer needs more personally.

Exchange

• An exchange is a process where an organization gives benefits to a customer in return for resources from them.
• Benefits are cost-effective ways to meet customer needs and wants.
• The exchange may involve functional, social, or esteem-related needs.

Market

• A group of consumers expressing wants and needs that are met by buying products, services, or ideas.
• Markets can be categorized by characteristics like types of products, consumers, businesses, or governments.
• Various market shares can indicate a company’s standing in the market.
• The market can be projected to understand the future demand.

Marketing Plan

• A dynamic plan for achieving business objectives & goals. This plan keeps companies competitive in the volatile market environment.
• It needs some essential elements, outlined by the SOSTAC method:
• Situation analysis
• Objectives (goals)
• Strategy (how to get there)
• Tactics (details of the strategy)
• Action (putting the plan to work)
• Control (measurement, monitoring, and modification)

Market Share

• The proportion of a market held by a company.
• It's calculated by dividing the Company Demand by the Market Demand.
• It shows a company's degree of influence in a given product/service/market area.

Company Mission

• A short concise description of the company's purpose.
• A mission statement clarifies the company’s intentions towards employees, consumers, and stakeholders.

Marketing Code of Conduct

• Ethical considerations guiding a company's actions.
• Principles for a company’s actions and approach to advertising, product, and customer service, etc.

Marketing Mix (4 Ps)

• Product: Tangible objects or intangible ideas and/or services offered satisfying customer needs/wants.
• Price: The monetary value of the product or service.
• Place: Distribution channels delivering the product or service to the customer.
• Promotion: Communication strategies that build brand awareness & generate interest amongst customers.

Marketing Mix Implementation

• Specific actions for each marketing mix variable.
• Schedules & calendars for reaching goals.
• Controlling & managing progress towards marketing objectives, making contingency plans for handling unexpected circumstances.

Marketing Audits

• Methods for comprehensively & systematically reviewing marketing plans.
• Methods for assessing current situation & evaluating strategies' strengths and weaknesses in the internal & external environment.

Market Segmentation

• Dividing consumers into groups with similar characteristics, enabling targeted marketing efforts.
• Segmentation could involve factors like demographics (age, income, location, etc.), behaviours (purchase frequency), lifestyle, preferences, or sociocultural factors etc.

Targeting

• Selecting specific market segments to focus marketing resources.
• Choosing customer groups that present the highest profit potential and align with the brand's values.

Positioning

• Establishing the brand in the minds of target customers within a given market.
• Creating a distinct “image” or “personality” in the target customer’s mind relative to competitors.
• Differentiating the brand and offering from other, similar products.

Differentiation

• Creating unique attributes for a product/service so that consumers view it differently from competitors.
• One or more aspects of the marketing mix can be used.
• Differentiators could include price, product quality, customer service, or distribution channels.

Relationship Marketing

• Building long-term relationships with customers, often through CRM systems, improving communication, and creating personalized experiences.
• Methods include using consumer data, offering personalized services, & building brand loyalty to foster trust/customer satisfaction.

Experiential Marketing

• Creating direct & memorable brand experiences to enhance customer engagement and create memories.
• Examples of this include free samples, product demonstrations, or brand-focused activities.

Content Marketing

• Providing interesting content to target audiences to improve the brand’s perceived knowledge regarding a particular product/service/category.
• The content can be educational, informative, or entertaining.

Digital Marketing

• Focusing on online channels for reaching, interacting with, and engaging customers.
• Involves strategies like social media engagement, SEO optimization, digital advertising, and mobile marketing.

Pricing Objectives

• Marketing goals focused on pricing, including achieving profit margins, increasing sales volume, and capturing market share.
• Strategies for pricing products, considering costs of production & competitors' pricing.
• A pricing strategy's aim will be influenced by the profitability, value perception & competition.

Distribution Strategies

• Methods for making products/services easily accessible to consumers, managing operations for cost effectiveness, and utilizing various distribution channels.

Multi-Channel Strategy

• Managing and coordinating multiple distribution channels to provide a seamless customer experience.
• A multi-channeling approach looks for a balance between direct distribution and distribution networks for optimal reach to customers and market segments.

Channel Conflicts

• Issues are developed from incompatibility of objectives among intermediaries, or when there's differences in perception across different parties in the delivery distribution channel.
• Can result from poor management or misdefined roles and responsibilities; also influenced by perception from various parties.

This quiz covers the fundamental principles and concepts of marketing, including how to identify and satisfy customer needs profitably. It also explores different marketing concepts such as production, product, selling, and the marketing concept, along with the importance of customer value in the marketing process.