Principles of Marketing

• Marketing directs the flow of goods and services from producers to consumers.
• Marketing focuses on understanding customer needs and delivering value.

The Marketing Mix (4Ps)

• Product is what is being sold.
• Price is how much the product costs.
• Place is where the product is sold.
• Promotion is how people are informed about the product.

The External Environment

• The external environment includes factors outside a company's control.
• These factors, such as cultural, economic, technological, and competitive forces, affect marketing strategy.

Production/Product Orientation

• Focuses on efficient product production.
• Assumes customers will purchase readily available products.

Sales Orientation

• Prioritizes selling existing products.
• Often uses aggressive sales techniques.

Market/Marketing Orientation

• Centers on understanding and fulfilling customer needs and desires.

Customer Relationship Management (CRM) and Customer Lifetime Value (CLV)

• CRM involves building lasting customer relationships to increase satisfaction.
• CLV is the projected total revenue from a customer over their relationship with a business.

The Strategic Planning Process

• Includes setting goals, analyzing opportunities, developing strategies, and monitoring performance.

Corporate Strategy, Strategic Business Strategy, Marketing Strategy

• Corporate strategy sets the overall direction for the company.
• Strategic business strategy defines specific strategies for each business unit.
• Marketing strategy outlines how to market products to achieve business objectives.

The Boston Consulting Group (BCG) Matrix

• It is a portfolio analysis tool.
• It includes: Stars, Cash Cows, Question Marks, and Dogs.

SWOT Analysis

• Framework for assessing internal and external factors.
• Strengths and Weaknesses are internal.
• Opportunities and Threats are external.

Product-Market Matrix

• Focuses on growth strategies.
• It includes: Market Penetration, Market Development, Product Development, and Diversification.

Steps in Developing Marketing Strategies - Market Opportunity Analysis (MOA)

• MOA involves identifying and evaluating prospective market opportunities.

Components of the Marketing Environment

• External components include social, economic, technological, competitive, and regulatory factors.
• Internal components include company culture and resources.

Types of Competition

• Monopoly: Dominated by a single seller.
• Monopolistic Competition: Many competitors, with differentiated products.
• Oligopoly: Dominated by a few firms.
• Perfect Competition: Many sellers offering identical products.

Economic Forces & Economic Cycle

• Involves understanding the effect of economic changes on consumer behavior and business strategies.

Legal and Political Forces

• Regulations are set by entities such as the: FTC (Federal Trade Commission), FDA (Food and Drug Administration), and EPA (Environmental Protection Agency).

Why Do Marketing Research?

• Marketing research gathers information to inform decisions on product development and marketing strategies.

Exploratory vs. Conclusive Research

• Exploratory research aims to gain initial insights.
• Conclusive research uses data to inform decisions.

Stages in Marketing Research

• Define the problem clearly.
• Develop a detailed research plan.
• Collect the necessary data.
• Analyze the collected data.
• Present the findings effectively.

Reliability and Validity of Research

• Reliability is the consistency of research results.
• Validity measures the research's accuracy.

Primary vs. Secondary Data

• Primary data is original data collected for a specific purpose.
• Secondary data was previously collected for another purpose.

Sampling Methods

• Techniques like surveys, interviews, or observational methods are used to gather data.

MIS (Marketing Information System) & MDSS (Marketing Decision Support System)

• Systems are used to manage and analyze marketing data for decision-making.

Segmentation Strategies

• Undifferentiated: One product for all consumers.
• Concentrated: Focuses on one specific segment.
• Differentiated: Targets multiple segments with varied strategies.

Segmentation Variables

• Demographic: Includes age, gender, income, etc.
• Geographic: Based on location.
• Psychographic: Based on lifestyle, values, personality.
• Behavioral: Based on consumer behavior, usage, brand loyalty.

Business Markets & Segmentation

• Focuses on organizational buying behavior, geographic segmentation, and customer type.

Sales Forecasting

• Objective Methods: Use time series, market tests, and regression analysis.
• Subjective Methods: Executive judgment, surveys, sales force opinions, and customer insights.

Stages of the Decision Process

• Problem Recognition: Identifying a need.
• Information Search: Gathering relevant information.
• Evaluate Alternatives: Comparing available options.
• Purchase: Making the buying decision.
• Post-Purchase Evaluation: Assessing satisfaction after purchase.

Levels of Involvement

• Refers to the degree of personal importance attached to the purchase decision.

Psychological Influences

• Perception: How information is interpreted.
• Motivation: Needs that drive purchasing behavior (Maslow’s Hierarchy of Needs).
• Learning: How experiences affect future behavior.
• Attitudes: Predispositions to act in a certain way.
• Personality: Unique traits influencing behavior.

Influences by Family, Reference Groups, Opinion Leaders, Social Class, Culture, and Subculture

• Influences shape consumer preferences and behaviors.