Marketing & Value Creation Overview

Marketing & Value Creation

• Customer: The purchaser of products/services; the focus of marketing efforts.
• Target Market: A specific customer group a company focuses on.
• Marketing Strategy: A company's long-term plan to deliver a unique customer experience and achieve goals.
• Exchange: The transfer of goods, services, or ideas in exchange for something of value.
• Mission Statement: A company's declaration of its purpose, value proposition, and position in the market.
• Vision Equation: Vision = Values + Competencies
• Values: Important principles guiding a company.
• Competencies: Skills and resources supporting a company's values.
• Core Competency: A unique skill or technology creating distinct customer value.
• Resources and Capabilities: Building blocks for value-added strategies.
• Situational Analysis: Understanding the current market context through PESTLE and SWOT analyses.
• PESTLE Analysis: External forces (Political, Economic, Social, Technological, Legal, Environmental).
• SWOT Analysis: Internal Strengths and Weaknesses; External Opportunities and Threats.
• Data: Crucial for understanding internal and external factors within SWOT.
• Strengths: Internal capabilities for success.
• Weaknesses: Internal limitations hindering success.
• Opportunities: External factors for advantage.
• Threats: External challenges hindering performance.
• Employees & Customers: Essential internal data sources for SWOT.
• Industry & Competitors: Key external data sources for SWOT.
• Competitive Analysis: Identifying, assessing, and selecting competitors for strategic advantage.
• Direct Competitors: Companies in the same industry (e.g., Pizza Hut vs. Domino's)
• Indirect Competitors: Companies in the same industry with substitute goods/services (e.g., Pizza Hut vs. Taco Bell)
• Marketing Mix: Product, Price, Place, Promotion.
• Product: A good, service, or idea; often needing development, modification, or elimination.
• Price: Value assigned to a product; a flexible marketing mix component.
• Place: Delivering products at the right time and location.
• Promotion: Activities persuading customers to respond favorably.
• Unmet Need: The need the company fulfills.
• Competitive Advantage (Product): Ways brands satisfy unmet needs.
• Marketing Concept: Company strategy focused on customer satisfaction.
• Market Orientation: Company commitment to research and respond to customer needs.
• Green Marketing: Long-term relationships with customers and environmental sustainability.
• Competitive Analysis Steps: Identify competitors, products, sales process, pricing, marketing, and SWOT analyses.

Digital Marketing

• Digital Marketing: Leveraging digital media for communication and exchange with customers.
• Social Media Marketing: Utilizing social media platforms to market products/brands/companies.
• Omnichannel: A multichannel approach offering a seamless customer experience across various mediums.

Marketing Environment

• Marketing Environment: Factors influencing inputs and outputs of an organization.
• Environmental Scanning: Gathering information about the marketing environment.
• Environmental Analysis: Assessing and interpreting collected information.
• Competition: Other firms offering similar or substitute products.
• Brand Competitors: Market similar products (e.g., Coke vs. Dr. Pepper).
• Product Competitors: Compete in the same product class but with different features and prices (e.g., Coke vs. flavored water).
• Generic Competitors: Offer different products to solve the same problem (Diet Coke vs. tap water).
• Total Budget Competitors: Compete for the same customer spending (Coke vs. gum/newspapers).
• Monopoly: Sole seller of a unique product.
• Oligopoly: Small number of sellers controlling a large market (Airlines).
• Monopolistic Competition: Many competitors, attempting to differentiate products (e.g., Wrangler Jeans vs. True Religion Jeans).
• Pure Competition: Very large number of sellers, none influencing prices.
• Buying Power: Resources enabling purchase (income, credit, wealth).
• Disposable Income: After-tax income; used for spending or savings.
• Discretionary Income: Income left for spending or saving after covering necessities.
• Business Cycle: Prosperity, recession, depression, recovery.
• Federal Trade Commission (FTC): Regulates business practices.
• Self-Regulation: Businesses regulating themselves to prevent government intervention.
• Social Responsibility: Maximizing positive impact and minimizing negative impact on society.
• Marketing Citizenship: Adopting and fulfilling social responsibilities.
• Corporate Social Responsibility (CSR) Hierarchy: Economic, Legal, Ethical, Philanthropic responsibilities.