Marketing DECA (1) PDF

Market Segmentation: Dividing a broad target market into smaller, more specific groups based on shared characteristics. ○ Example: A smartphone’s brand may segment its market into categories such as tech enthusiasts (who care about the latest features), budget-conscious bu...

Market Segmentation: Dividing a broad target market into smaller, more specific groups based on shared characteristics. ○ Example: A smartphone’s brand may segment its market into categories such as tech enthusiasts (who care about the latest features), budget-conscious buyers (who prioritize affordability), and seniors (who prefer simplicity and larger screens). Target Market: Identifying and focusing on the specific group of consumers who are most likely to buy the product. ○ Example: A high-end fitness tracker may target health-conscious millennials who are tech-savvy and value sustainability, or a luxury car brand might target high-income professionals aged 35-50. Brand Positioning: How a brand is perceived by customers in relation to competitors. ○ Example: Apple positions itself as the premium, high-quality brand in the tech industry, emphasizing sleek design and advanced technology, while companies like Samsung position themselves as offering similar quality at a more competitive price. Value Proposition: The unique benefit or value a product offers to customers. ○ Example: A company selling eco-friendly cleaning products might have a value proposition like: “Our products are 100% natural, non-toxic, and effective, providing you with a safe and environmentally conscious way to clean your home.”  Marketing Mix (4Ps): The combination of Product, Price, Place, and Promotion strategies to meet customer needs. ○ Example: A coffee shop offering premium coffee (Product) at a slightly higher price (Price), located in a busy downtown area (Place), and promoting its loyalty program via social media ads (Promotion). Consumer Behavior: Understanding the factors that influence consumer purchase decisions. ○ Example: Market research might reveal that customers are more likely to buy organic products if they are offered a discount or bundled with other health-related products, indicating a strong influence of price and promotions on purchase behavior. Digital Marketing & Social Media: Using online platforms to reach, engage, and convert customers. ○ Example: A clothing brand might use Instagram ads and influencer marketing to showcase new arrivals, engaging with followers through interactive polls or hashtags to build brand loyalty. Customer Lifetime Value (CLV): The total revenue a business expects from a customer over their lifetime. ○ Example: A subscription service for digital books might enhance CLV by offering personalized recommendations and loyalty rewards, ensuring customers stay subscribed for years.  Brand Awareness: The extent to which consumers can recognize or recall a brand. ○ Example: Coca-Cola increases brand awareness with large-scale advertising campaigns, sponsorship of major events, and prominent product placements in popular movies and TV shows. Competitive Advantage: A factor that allows a company to produce goods or services better or more cheaply than its competitors. ○ Example: Tesla’s competitive advantage is its innovation in electric vehicle technology and its commitment to sustainability, setting it apart from traditional car manufacturers. Return on Investment (ROI): Measuring the profitability of a marketing investment. ○ Example: A company spends $50,000 on a social media advertising campaign and earns $150,000 in sales. The ROI is calculated as: (Revenue - Cost) / Cost = ($150,000 - $50,000) / $50,000 = 2, meaning they earned $2 for every $1 spent. ○ Sales Funnel: The customer journey from awareness to purchase. ○ Example: A customer might first see an ad for a new fitness product (awareness), visit the website to learn more (interest), sign up for a free trial (consideration), and finally make a purchase (conversion).  Customer Engagement: Interacting with customers to build strong relationships. ○ Example: A skincare brand engages customers through personalized email newsletters, responding to comments on Instagram, and offering beauty tips on its website to increase brand loyalty. Market Research: Gathering and analyzing data to understand consumer needs and market trends. ○ Example: A company launching a new snack product might conduct a focus group to learn about taste preferences, packaging designs, and purchasing habits before finalizing the product for mass production. Promotional Strategies: Techniques to increase sales or awareness, such as discounts, offers, or campaigns. ○ Example: A clothing retailer may run a "Buy One, Get One 50% Off" promotion, paired with a referral program offering customers discounts for recommending friends. Public Relations (PR): Managing a company’s image through media relations and communication strategies. ○ Example: A tech company might launch a PR campaign to highlight its corporate social responsibility initiatives, such as using recycled materials in its products or contributing to environmental charities. Customer Satisfaction and Feedback: Collecting and acting on customer feedback to improve products and services. ○ Example: A hotel chain might send out surveys after guests check out, using their feedback to improve room amenities and customer service practices. SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats): Analyzing internal and external factors that affect a business. ○ Example: A new online retailer might conduct a SWOT analysis and find that its strength is unique product offerings, its weakness is  limited brand recognition, opportunities include rising e-commerce trends, and threats include established competitors. Brand Loyalty: Customers’ preference for a particular brand over others. ○ Example: Starbucks encourages brand loyalty by offering a rewards program where customers earn points for each purchase, redeemable for free drinks or discounts. KPIs (Key Performance Indicators): Metrics used to measure the success of marketing efforts. ○ Example: A digital marketing campaign may track KPIs such as website traffic, conversion rate, and average order value to measure campaign effectiveness. Lead Generation: The process of attracting and converting potential customers (leads). ○ Example: A software company might offer a free trial or downloadable whitepaper in exchange for a visitor’s contact information, which can later be used for targeted marketing or sales outreach.