Marketing 100 Midterm

Mission Statement

A broad description of a firm's objectives and the scope of activities it plans to undertake.

Inelastic

A change in price will not significantly affect the demand for product

Target Marketing

A group of specific customers with common wants and needs.

Influencer Marketing

A marketing strategy that uses opinion leaders, popular on social media, to drive marketing messages to a targeting audience. Firms hire (or encourage) these well known names to promote brand messages to their networks of followers.

Building Relationships with Customers

A method of building a relationship with customers based on the philosophy that buyers and sellers should develop a long term relationship.

Straight Rebuy

A situation in which the purchased reorders they same goods or services without looking for new information or investigating other suppliers.

New Buy

A situation requiring the purchase of a product for the first time

Modified Rebuy

A situation where the purchaser wants some change in the original good or service

Engage the Customer

Action, loyalty, commitment. Positively engaged consumers lead to more profitably. Engagement can also backfire.

sustainable competitive advantage

Adding value for customer.

Promotion and Value Communication

Advertising, Personal Selling, Sales Promotion, Public Relations, Direct Marketing, Online Marketing

Buying Centers

All those people in an organization who become involved in the purchase decision. Number of people involved varies with each purchase decision. Buying centers do not appear on formal organization chart.

Community

Allow customers to interact. Use corporate and professional blogs. Engage in Crowdsourcing.

Business Products

Are used to manufacture other products. Facilitate an organization's operations. Are resold to other customers. The key is intended use.

Post purchase Customer satisfaction

Build realistic expectations, demonstrate correct product use, stand behind the product or service, encourage customer feedback, make contact with customers and thank them for their support.

Ethnicity

By 2050, minorities will represent 50% of the population. Nearly 30% will be hispanic.

Communication

Clear, helpful, meaningful content enables effective communication. Enables interacting with, engaging, and educating site visitors. Provide a mechanism for customers to communicate with the firm.

Marketing Analytics

Companies collect massive amounts of data about how, when why, where and what.

Balancing Benefits with Costs

Companies constantly measure the benefits that customers perceive against the cost of their offerings.

Trends in B to B Internet Marketing

Content marketing is a strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content. As platforms such as mobile and streaming video grow, marketers must develop new ways to measure campaign effectiveness

The 7C's

Core Goals, Contextual Elements (design, navigation), Content, Community, Communication, Commerce, Connection

Targeting

Decides which segment to pursue

Fluctuating

Demand for business products is more volatile than for consumer products

Derived

Demand for business products results from demand for consumer products

Context Elements

Design. Navigation. Must be in alignment with the target market.

Commerce

Desktop usage is greater, and conversion rates higher, for online purchases. The most loyal customers use multiple channels. Customers want a range of online options.

Do

Develop and implement campaign using social media. Effective implementation based on social and mobile media activity.

Customer Service

Divide customer into groups based on their value. Create policies that govern how service will be allocated among groups.

Segmenting

Dividing all potential markets into segments with similar characteristics.

Education

Education is related to income, which determines spending power

Connection

Engage customers and provide a call to action. Allow customers to interact with the firm to continuously. Enable positive engagement.

Types of Buying Decisions

Extended Problem Solving. Limited Problem Solving. Impulse buying and habitual decision making.

Corporate Partners

Firms are part of alliances, align with competitors, suppliers, Just in Time Delivery Systems (JIT)

Post Purchase Cognitive Dissonance

Firms attempt to reduce dissonance by reinforcing the decision. Thank you letters, congratulations letters, quality ratings.

The Timeless Effect

Firms must engage with the customer at the right place and time.

Regional Culture

For national and global chains, particularly important to cater to regional preferences.

Educate the Customers

Golden opportunity to educate about the products values proposition and communicate offered benefits. When marketing ideas, the goal is to improve people's well-being, along with selling the underlying concept.

Marketing Entails an Exchange

Goods/Services Product-Communication and Delivery-Customers-Money and Information

Core Aspects of Marketing

Helps create value, satisfying customer needs and wants, entails an exchange, requires product, place, promotion, decision, can be performed by both individuals and organizations, affects various stakeholders.

Marketing Plan

Identify target, identify target market mix, identify sustainable competition advantage.

The Dynamic Effect

Information is exchanged to network participants through back and forth communications. Examines how people flow in and out of networked communities as their interests change.

Role in Buy Centers

Initiator, Influencer, Gatekeepers, Decider, Purchaser, Users

Competitors

Know strengths and weaknesses. Proactive rather than reactive strategy.

Strategic Alliances

Licensing or Distribution agreements, Joint Ventures, Research and development consortia, Partnerships. Alliances succeed with relationships commitment and trust

Listen

Listening helps determine digital marketing objectives and strategies. Sentimental analysis allows marketers to analyze and determine consumers attitude and preferences.

Type of Business Products

Major Equipment, Accessory Equipment, Raw Materials, Component Parts, Processed Materials, Supplies, Business Services

Gender

Male/female roles have been shifting. Marketing has changes to reflect these shifts. Firms are careful about gender neutrality in positioning their products.

Post Purchase Customer Loyalty

Marketers attempt to solidify a loyal relationship. Firms use analytics software and customer relationship (CRM) programs to acquire and retain loyal customers.

Content

Monitor to ensure relevancy. Devise appropriate keywords to improve organic search. Implement SEM and paid search.

Joint

Multiple items are used together in final product. Demand for one item affects all

Diversification

New product or service, New market segment

Excite the Customer

Offer must be relevant to its targets customers. Relevancy can be achieved by providing personalized offers.

The Network Effect

Outcome in which every post is spread instantaneously across social media.

Information Effect

Outcome in which relevant information is spread by firms or individuals to other members of the social network.

The Connected Effect

Outcome that satisfies humans innate need to connect with other people

Trends in B-toB Internet Marketing

Over the past decade, marketers have become more and more sophisticated in their use of the internet. Social media usage has been the most pervasive B to B and B to C marketing trend of the past five years

Place

Place, or a supply chain management, describes all activities necessary to get the product to the right customer when they want it.

Price

Price is everything a buyer gives up (money, time, energy) in exchange for the product. How many customers willing to pay and can a profit be made at that point?

Price and Value Capture

Price must allow for customers to perceive good value for the product they receive.

Marketing Requires

Product, Price, Place, Promotion Decisions

Promotion

Promotion is communication by a marketer that informs, persuades, and reminds potential buyers about a product or services to influence their options or elicit a response.

Experience the Product or Service

Provide vivid information about a firm's goods and services. Simulate real experiences.

Demographics

Provides an easily understood snapshot of the typical consumer in a specific target market. Marketers use data about shoppers to target offers.

Income

Purchasing power is tied to income. Many middle class families feel the decline in purchasing power in recent years.

Evaluative Criteria

Quality, Service, Price

Relationship Marketing

Relationship marketing has become an important business marketing strategy as customers have become more demanding and completion has become more intense. Building long term relationships with customers offer a way to build competitive advantage.

Marketing Impacts Various Stakeholders

Society, Employees, Customers, Supply Chain

SWOT analysis

Strength, Weakness, Opportunities, Threats

Country Culture

Subtler aspects can be difficult to navigate, sometimes best answer is to establish universal appeal within specific identities of country culture.

Product and Value Creation

Successful products and services are those that customers perceive as valuable enough to buy.

Technological Advantage

Technology has impacted every aspect of marketing. New products, new forms of communication, new retail channels.

Marketing

The activity, set of of institutions, and processes of creating, capturing, communicating, delivering, and exchanging offering that have value for customers, clients, partners, and society at large.

Core Goals

The basis of any marketing strategy is it goal. Determine specific goal. Align the goals with the target market and the 7Cs with the goals.

Product

The fundamental purpose of marketing is to create value by developing a variety of offerings, including goods, services, and ideas to satisfy consumer needs. (food, services, ideas)

Business Marketing

The marketing of goods and services to individuals and organizations for purposes other than personal consumption

Place and Value Delivery

The product must be readily accessible

Positioning

Using marketing mix to give the target market a clear understanding of what the product does or represent.

A mission statement attempts to answer 2 main questions:

What type of business are we? What do we need to do to accomplish our goal?

how do you add value?

customer excellence, operational excellence, product excellence, local excellence.

Why is Marketing Important?

enriches society, can be entrepreneurial, expands global presence, strengthens channel relationships