Marketing Process in Business

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Questions and Answers

What are some examples of public policy issues in direct and digital marketing?

Irritation, Unfairness, Deception, Fraud

Match the pros and cons of the change in marketing communication during the digital and social media age:

Increased Reach and Accessibility = Information Overload Interactivity and Engagement = Speed of Communication Targeted Advertising = Privacy Concerns Cost-Effective Marketing = Constant Technological Evolution Data Analytics and Measurement = Fake News and Misinformation

What are the 5 steps in the marketing process?

Understand the marketplace and customer needs and wants
Design a customer value-driven marketing strategy
Construct an integrated marketing program that delivers superior values
Build profitable relationships and create customer delight
Capture value from customers in return.

Which of the following is included in the marketing mix (4Ps)?

Product Signup and view all the answers

Consumer markets are composed of individuals and households that buy goods and services for personal consumption.

True Signup and view all the answers

What is the purpose of a marketing channel (distribution channel)?

To help make a product or service available for use or consumption by the consumer or business user Signup and view all the answers

Customer relationship management focuses on building and maintaining __________ relationships by delivering superior customer value and satisfaction.

profitable Signup and view all the answers

Horizontal marketing system involves companies at the same level partnering together.

True Signup and view all the answers

What is the goal of multichannel distribution systems?

To reach one or more customer segments Signup and view all the answers

Match the following segments to their types of market segmentation:

Geographic = Demographic Psychographic = Behavioral Customer operating characteristics = Business Markets Cultural factors = International Markets Signup and view all the answers

Direct marketing continues to become more __________-based, claiming a surging share of marketing spending and sales.

Internet Signup and view all the answers

What are the advantages of using secondary data in research? (Select all that apply)

Cannot collect otherwise Signup and view all the answers

What are the contact methods for primary data collection?

Personal Signup and view all the answers

Define Product in marketing.

Product is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want. Signup and view all the answers

______ products are bought by final consumers for personal consumption immediately, frequently, and without comparison.

Convenience Signup and view all the answers

Match the types of services with their characteristics:

Intangibility = Cannot be seen, tasted, felt, heard or smelled before purchase Variability = Quality of services depend on who provides them and when, where, and how Inseparability = Services can’t be separated from their providers Perishability = Services can’t be stored for later sale or use Signup and view all the answers

Study Notes

Marketing in Business Environments

Definition of Marketing: creating value for customers and building strong customer relationships to capture value from customers in return
5 Steps of Marketing Process:
- Understand the marketplace and customer needs and wants
- Design a customer value-driven marketing strategy
- Construct an integrated marketing program that delivers superior values
- Build profitable relationships and create customer delight
- Capture value from customers in return
Market Offerings: a combination of products, services, information, or experiences offered to a market to satisfy a need or want
Marketing Myopia: focusing only on existing wants and losing sight of underlying consumer needs

Marketing Management Orientation Concepts

5 Concepts:
- Production Concept: consumers will favor products that are available and highly affordable
- Product Concept: consumers favor products that offer the most quality, performance, and features
- Selling Concept: consumers will not buy enough of the firm’s products unless the firm undertakes a large-scale selling and promotion effort
- Marketing Concept: know the needs and wants of the target markets and deliver the desired satisfactions better than competitors
- Social Marketing Concept: the company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests

Marketing Mix (4Ps)

Product
Price
Promotion
Place

Additional Concepts

Customer Relationship Management (CRM): building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
Partner Relationship Management (PRM): working closely with partners in other company departments and outside the company to jointly bring greater value to customers
Customer Lifetime Value (CLV): the value of the entire stream of purchases that the customer would make over a lifetime of patronage
Share of Customer: the portion of the customer’s purchasing that the company gets in its product categories
Customer Equity: the total combined customer lifetime values of all of the company’s customers

Consumer Markets and Buyer Behaviour

Definition of Market: a place where parties can gather to facilitate the exchange of goods and services
Consumer Markets: made up of individuals and households that buy or acquire goods and services for personal consumption
Business Markets: markets in which organisations sell their goods and services to other organisations to use in their manufacturing process or service provision

Factors Influencing Consumer Behaviour

Cultural
Social
Personal
Psychological

Buyer’s Decision-Making Process

5 Steps:
- Need/problem recognition
- Information search
- Evaluation of alternatives
- Purchase decision
- Post-purchase evaluation### External and Internal Factors Affecting Pricing
Overall marketing strategy, marketing objectives, marketing mix, and markets and demands influence pricing.
In different types of markets, pricing strategies vary:
- Pure competition: many small companies, none of which can control prices.
- Monopoly: one seller in the market, company has total control over price.
- Monopolistic: many sellers, company has limited control over price.
- Oligopoly: few sellers, when one company lowers price, others are often forced to do so.

Pricing Strategies

Price elasticity: measure of sensitivity of demand to changes in price.
- Inelastic demand: demand hardly changes with a small change in price.
- Elastic demand: demand changes greatly with a small change in price.
Market-skimming pricing: sets high initial prices to "skim" revenue layers from the market.
Market-penetration pricing: sets a low price for a new product to attract a large number of buyers and a large market share.
Product mix pricing: takes into account cost differences between products, customer evaluations, and competitors' prices.
Other pricing strategies:
- Product line pricing
- Optional product pricing
- Captive product pricing
- By-product pricing
- Product bundle pricing

Price Adjustment Strategies

Discount and allowance pricing: reduces prices to reward customer responses.
Segmented pricing: sells a product or service at two or more prices, where the difference is not based on cost differences.
Psychological pricing: considers the psychology of prices, not just the economics.
Promotional pricing: temporarily prices products below list price to increase short-run sales.
Geographic pricing: used for customers in different parts of the country or world.
Dynamic pricing: adjusts prices continually to meet individual customer needs and situations.
International pricing: sets prices in a specific country based on various factors.

Marketing Channels and Supply Chains

Supply chain: firms that supply raw materials, components, and services.
Value delivery network: composed of companies, suppliers, distributors, and customers who partner to improve system performance.
Marketing channels (distribution channels): set of interdependent organizations that make a product or service available to consumers.
Channel behavior and organization:
- Channel conflict: disagreement among channel members over goals, roles, and rewards.
- Horizontal conflict: among channel members at the same level.
- Vertical conflict: between different levels of channel members.
- Multi-channel conflict: among different channels.
Channel design decisions:
- Analyzing consumer needs
- Setting channel objectives
- Identifying channel alternatives
- Evaluating channel alternatives

Promotion Mix

The promotion mix: specific blend of promotion tools to persuasively communicate customer value and build customer relationships.
Promotion tools:
- Advertising: paid, nonpersonal presentation of ideas, goods, or services.
- Sales promotion: short-term incentive to encourage purchase or sale.
- Public relations: builds good relations with publics by obtaining favorable publicity.
- Direct and digital marketing: engages directly with targeted consumers to obtain an immediate response and build customer relationships.
- Personal selling: personal interaction with customers to engage, make sales, and build relationships.

Integrated Marketing Communications

Integrated marketing communications (IMC): carefully integrates and coordinates communication channels to deliver a clear, consistent message.
Recent trends:
- Consumers are changing.
- Marketing strategies are changing.
- Advances in digital technology.

Elements in the Communication Process

Steps in developing effective marketing communication:
- Identify the target audience
- Determine communication objectives
- Design the message
- Choose the media
- Select the message source and collect feedback

Direct marketing: uses direct communication to reach customers.
Digital marketing: uses digital channels to reach customers.
Benefits of direct and digital marketing:
- To buyers: convenience, access to comparative information, and interactive.
- To sellers: tool to build customer relationships, low-cost, efficient, and flexible.
Forms of direct and digital marketing:
- Online marketing: marketing via the Internet.
- Mobile marketing: marketing messages delivered to on-the-go consumers.
- Social media marketing: creating content for social media platforms to promote products/services.
- Traditional direct marketing forms:
  - Direct-mail marketing
  - Catalog direct marketing
  - Telemarketing
  - Direct-response television marketing
  - Kiosk marketing

Public Policy Issues in Direct and Digital Marketing

Issues:
- Irritation: annoying or offending customers.
- Unfairness: taking unfair advantage of customers.
- Deception: misleading customers.
- Fraud: identity theft and financial scams.

Pros:
- Increased reach and accessibility
- Interactivity and engagement
- Targeted advertising
- Cost-effective marketing
- Data analytics and measurement
Cons:
- Information overload
- Speed of communication
- Privacy concerns
- Constant technological evolution
- Fake news and misinformation
- Brand vulnerability

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Description

Learn about the 5 steps of the marketing process, including understanding customer needs, designing a marketing strategy, and building profitable relationships.