Ch 10 - Marketing

evaluation

Evaluating marketing plan performance is important so that flexibility and adjustment can be incorporated into marketing planning

qualitative research

Requires smaller sample size as it involves the researcher in the process and is able to delve deeper into the questions with the respondents. Relies less on analytical testing, and the researcher is engaged in the process; the results are considered "subjective."

how do you evaluate a viral marketing campaign?

SALES

marketing research

The gathering of information about a particular market, followed by analysis of that information

marketing information system

compiling and organizing data relating to cost, revenue, and profit from the customer base

elements of marketing mix:

product (tangible or intangible), promotion (various ways companies communicate w customers), price, place

current sales analysis

promoting and distributing products according to marketing research findings.

factors affecting pricing decision:

•Degree of competitive pressure •Availability of sufficient supply •Seasonal or cyclical changes in demand •Distribution costs •Changes in production costs •Prevailing economic conditions •Amount of promotion

2 major variables of market segmentation:

•Demographics: Age, marital status, sex, occupation, income, and location •Benefits: Convenience, cost, style, and trends (depending on the nature of the particular new venture)

affiliate model

•Driving traffic to other web sites.

secondary data

•Information that has already been compiled. •Advantage: Less expensive and available •Disadvantages: Outdated, lacks specificity, questionable validity •Sources: Internal and/or external sources

quantitative research

•Involves empirical assessments that work from numerical measurements and analytical approaches to compare the results. •The researcher is an uninvolved observer so that the results are "objective." •Requires larger samples to be able to perform the statistical analyses.

marketing concept for entrepreneurs

•Knowledge of what the market consists of •Understanding of marketing research •Understanding and application of social media marketing •Proper approach to a pricing strategy •The customer is at the center of all marketing activity.

primary data

•New information that is gathered specifically for the research at hand. •Surveys •Experimentation •Focus groups •Personal interviews

•Two-Way Communication

•Social media creates an ongoing interactive conversation between the new venture and the customer.

•Control versus Contributions

•Social medial marketing emphasizes audience contribution and relinquishes control over large parts of the content.

the virus of marketing

•Stealth is the essence •What's up front is free •Target community carries the message •Exploit the strength of weak ties •Invest to reach the tipping point

marketing plan

•The process of determining a clear, comprehensive approach to the creation of customers. •This is what we are going to do

market segmentation

•The process of identifying a specific set of characteristics that differentiate one group of consumers from the rest.

subscription model

•Users pay a fee to access a product.

virtual goods model

•Users pay for virtual goods: upgrades, points, gifts.

sales forecasting

The process of projecting future sales through historical sales figures and the application of statistical techniques

social media marketing

The use of social networks, online communities, blogs, wikis, and other online collaborative media tools for marketing purposes

viral marketing

Viral marketing is a sales technique that involves organic or word-of-mouth information about a product or service to spread at an ever-increasing rate. The internet and the advent of social media have greatly increased the number of viral messages in the form of memes, shares, likes, and forwards.

current marketing research

determining who the customers are, what they want, and how they buy

What is marketing?

the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large and refers to activities a company undertakes to promote the buying or selling of a product or service. Marketing includes advertising, selling, and delivering products to consumers or other businesses.

market

•A group of consumers (potential customers) who have purchasing power and unsatisfied needs. •A new venture will survive only if a market exists for its product or service.

advertising model

•Advertisement is sold based on traffic on the website.

freemium model

•Basic services provided free while charging for premium

what are mistaken beliefs that inhibit the use of marketing research?

•Cost: Research is too expensive. •Complexity: Research techniques rely on overly complex sampling, surveying, and statistical analysis. •Strategic Decisions: Only major strategic decisions need to be supported through marketing research. •Irrelevancy: Research data will contain either information that merely supports what is already known or irrelevant information.

•Effective Social Media Marketing

•Create value with an event, video, tweet, or blog entry that attracts attention and becomes viral. •Enable customers to promote a message themselves with multiple online social media venues. •Encourage user participation and dialogue that fully engages customers with online conversations.