Marketing Principles and the Marketing Mix

Marketing Principles

• Marketing: The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society.
• Exchange: The mutual trade of things of value between buyer and seller, benefiting both parties.
• Marketing Needs: Unsatisfied needs of two or more parties; desire/ability to fulfill those needs; communication channels; something to exchange.
• Customer Value: The unique benefits received by targeted buyers, encompassing quality, convenience, timely delivery, and pre/post-sale service, at a specific price.
• Relationship Marketing: Building long-term mutually beneficial relationships with customers, employees, suppliers, and partners.
• Marketing Program: A plan combining the marketing mix to offer a good/service/idea to prospective buyers.

Marketing Mix

• Product: A good, service, or idea to satisfy a need.
• Price: The value exchanged for the product.
• Promotion: The communication link between seller and buyer.
• Place: The means of getting the product to the consumer.

Consumer Behavior

• Consumer Behavior: A person's actions in purchasing and using products, including pre- and post-purchase mental and social processes.
• Purchase Decision Process: Problem recognition, information search, alternative evaluation, purchase decision, post-purchase behavior.
• Involvement: The personal, social, and economic significance of a purchase.
• Problem Solving: Extended (thorough research), Limited (some research), Routine (little research).
• Consumer Touchpoints: All points of contact a consumer has with a product, service, or brand.
• Consumer Journey Map: A visual representation of all consumer touchpoints.
• Personality: Consistent behaviors in recurring situations.
• Perception: An individual's selection, organization, and interpretation of information.
• Perceived Risk: Anxiety about the negative consequences of a purchase.
• Learning: Behaviors resulting from experience & reasoning.
• Brand Loyalty: Favourable attitude and consistent purchase of a brand.
• Beliefs: Subjective perception of a product/brand's attributes.
• Attitudes: Learned predisposition to respond favorably or unfavorably to an object/class.
• Attitude Change: Altering beliefs, perceived attribute importance, or introducing new attributes.
• Motivation Types: Ideals (knowledge/principles), Achievement (success), Self-expression (impact).
• Opinion Leaders: Individuals influencing others' decisions.
• Reference Groups: People used as a standard for self-assessment.
• Brand Community: Consumers with structured relationships around a brand.
• Social Class: Relatively permanent, homogeneous groups in a society.
• Family Life Cycle: Distinct phases families go through.

Business-to-Business (B2B) Marketing

• B2B Marketing: Marketing products/services to companies/organizations for use in products/services.
• Organizational Buyers: Companies, governments, and nonprofits purchasing products/services.
• NAICS: North American Industry Classification System - common industry definitions in Canada, Mexico, and the US.
• Derived Demand: Industrial product demand dependent on consumer product demand.
• Organizational Buying Criteria: Price, quality, delivery, technical capabilities, warranties, past performance, production capacity.
• Buying Center: Group in an organization involved in the buying process.
• Buy Classes: Straight rebuy (routine), new buy (first time), modified rebuy (re-evaluation).
• E-Marketplaces (B2B exchanges or e-hubs): Online trading communities facilitating product/service exchanges.
• Traditional & Reverse Auctions: Online auctions for sellers/buyers putting up products/services.

Marketing Research

• Marketing Research: Defining a problem, collecting & analyzing data, and recommending actions.
• Research Approach: Define problem, develop plan, collect information, develop findings, take marketing actions.
• Measures of Success: Criteria for evaluating solutions to the problem.
• Constraints: Limitations on potential solutions.
• Data Types: Secondary data (existing) and primary data (new).
• Data Collection: Observational data, questionnaire data, and information technology.
• Data Mining: Examining large databases for statistical relationships between consumer behavior and marketing actions.
• Predictive Modeling: Forecasts based on statistical models and probability analysis.
• Sales Forecast: Predicted sales over a specified period.

Market Segmentation & Positioning

• Market Segmentation: Grouping prospective buyers with common needs and similar responses to marketing actions.
• Product Differentiation: Marketing mix actions to make a product appear different and better than competitors.
• Market-Product Grid: Relating market segments to product offerings and marketing actions.
• Usage Rate: Quantity consumed or patronage over a period.
• 80/20 Rule: 80% of sales come from 20% of customers.
• Customer Lifetime Value (CLV): Financial worth of a customer over their relationship with a company.
• Product Positioning: Product's place in consumers' minds based on attributes.
• Product Repositioning: Changing a product's place in consumers' minds.
• Perceptual Map: Two-dimensional display showing consumer perceptions of products/brands.

Overview of marketing principles, including exchange, customer value, and relationship marketing. Explanation of the marketing mix: product and price. Focus on delivering value to customers and building lasting relationships.