Marketing Final
Relationship Marketing Types
Nano relationships (internal operations), classic market relationships, special market relationships (loyalty programs), and mega relationships (supplier and economy)
Characteristics of Organizational Buying
Nature and size of customers, complexity of buying, economic and technical choice criteria, risks, buying to specific requirements, reciprocal buying, derived demand, and negotiations
Competitive Factors
Nature of competition, new entrants, and competitive differentiation
Consumer Decision-Making Process
Need recognition/problem awareness: difference between current and desired/ideal state Information search: internal and external Evaluation of alternatives: awareness set, retrieval set, evoked set, inept set, and inert set Purchase: choice criteria Post-purchase evaluation of alternatives: consumer satisfaction
Direct Marketing
One of the methods of communications which can be styled to meet IMC campaign objectives that involve personal selling, trade fair and exhibitions, direct mail, email, telemarketing, and catalog
Mass Marketing
One of the methods of communications which can be styled to meet IMC campaign objectives that involves the delivery of non-personalized messages on a variety of channels in a wide scale
Digital Communication Tools and New Trends
Online advertising, search engine marketing, affiliate marketing, online video and interactive television advertising, permission-based emails, content marketing, mobile marketing, viral marketing, buzz marketing, website, hashtags, emojis, Instagramability, Influencer marketing, and AI
Organizational Drivers
Operational perspective, show accountability in communication budget, and creating opportunities for increased profits
Personal Selling
Oral communication with prospective purchasers with the intention of making a sell
IMC Drivers
Organizational drivers, target market-based drivers, communication drivers, core elements, and models
Marketing Planning
Part of the overarching corporate strategic planning process which involves all business functions including marketing, operations, human resources, finance, information management, distributions and trading environment
Strong Theory of Advertising
Persuasion occurs by moving passive buyers toward a purchase by easing them through steps
Political, social, and Environmental factors
Political issues, social trends, and environmental issues
PEEST Analysis
Political/Legal forces: trade, business conduct and activities Economic forces: growth, interest, exchange rates Ecological/physical forces: climate change, pollution, resources Social-cultural forces: age, health, population Technological forces: incentives, internet of things
Communication Drivers
Potential benefits associated with the delivery of messages
Exploratory Research
Preliminary exploration of a research prior to the main data-collection which allows researchers to develop a base-line understand the people and markets before main data-collection
Ethical Issues in Pricing
Price fixing, predatory pricing, deceptive pricing, price discrimination, penetration pricing and obesity, and product dumping
Cost Pricing
Price is determined by adding a specific amount mark-up to a product's unit cost but does not account for the market or customers willingness to buy
Market-Oriented Pricing
Price is set higher or lower than their competitors depending on how well their own product matches up
Environment Scanning
Process of monitoring and analyzing the marketing environment of a company to allow for better awareness and responsiveness to change
Consumer Behavior
Processes involved when individuals or groups select, purchase, use or dispose of products, services ideas or experiences to satisfy needs and desires
B2B Distribution Channels
Producer to Business or Government User, producer to agent/broker to business or government user, producer to industrial distributor to business of government user, and producer to agent/broker to industrial distributor to business or government user
Services Marketing Mix
Product: brand names distinct Price: offset and predatory Promotion: authentic Place: shorter than consumer channels Physical Evidence: aesthetics Process: procedures, flow of activities People: personnel
Retrieval Set
Products already in memory
Inept Set
Products consumers are aware of but would not consider buying
Inert Set
Products not considered
Evoked Set
Products that consumers seriously consider
Market Research
Provides information about markets and customer reactions to various products, prices, distribution methods, and promotion decisions (companies like MORI, Deliotte, KeyNote)
Differential Advantage
Providing target customers something better than the competition is offering in products, prices, promotions, and distributions (Trader Joe's, EasyJet, Coca Cola, Amazon marketplace and redbox on yourbusiness.azcentral.com)
Choice Criteria of Organizational Buying
Quality, price and life cycle costs, continuity of supply, perceived risks, office politics, and personal liking/disliking
Pricing New Products
Rapid skimming, rapid penetration, slow skimming, and slow penetration
Organizational Buying Reasons
Recognition of a problem or need, determination of specification and quantity of needed item, search for and qualification of potential sources, acquisition and analysis of proposals, evaluation of proposals and selection of supplier(s), selection of an order routine, and performance feedback and evaluation
Continuous Research
Repeated interviewing of the same sample of people (panels, audits, databases)
Market Research Process
Research planning Exploratory research Main data collection point Data analysis and interpretation Report writing and presentation
Ad-Hoc Research
Research project that focuses on specific problem, collecting data at one point in time with sample of respondents (surveys, test,s evaluation studies)
Primary Research
Researcher actively collects data for a specific purpose (qualitative or quantitative)
Considerations on the Choice of Promotional Mix
Resource availability (costs), market size and concentration, customer information needs, product characteristics, and push vs. pull strategies
Different Behaviors in Choice Making
Routine response behavior, limited problem-solving, and extensive problem-solving
Advertising Objectives
SMART objectives: specific, measurable, achievable, realistic, and timely
Qualitative Research
Seeks to understand how and why humans behave (focus groups, in-depth interviews)
Market Factors
Segment size, barriers to market segment exit, segment growth rate, segment profitability, price sensitivity, bargaining power of customers, bargaining power of suppliers, and barriers to market segment entry
Focused Marketing
Serving one target market with one marketing approach (niche) appropriate for companies with limited resources applied to one type of customer (T-mobile from agencyascend)
Competitor Pricing
Setting the price at the same level as one's competitors used often when there is no differentiation
Undifferentiated marketing
Single, marketing mix for the whole market with an absence of segmentation and the marketing mix applied to the whole market that lacks consumer knowledge (toilet paper like Charmin and toothpaste like Colgate)
Social media
Social community, social publishing, social entertainment, and social commerce
Buy Classes
Straight re-buy, modified re-buy, and new task
Control
Strategic control systems are long-term that are assessed in the lights of capabilities and the environment
Implementation of Marketing Planning
Strategy change and re-organization affects the balance of power so resistance may happen but it is often necessary
Theories of Advertising
Strong theory and Weak theory
Advantages of Segmentation
Takes into account different purchases for different consumers by allowing for differentiation and tailored marketing mixes
Customized Marketing
Targeting individual customers with specific marketing mix strategies applied to numerous types of customers for a unique customer approach (Vans)
Differentiated Marketing
Targeting several segments with distinct marketing strategies that can be difficult because of the managing of multiple marketing mixes (Liberty Mutual car insurance)
Choice Criteria
Technical, economic, social, and personal (rational or emotional)
Dimensions of Digital Marketing
Technology, applications, audiences, and marketing
Marketing Concept
The achievement of corporate goals through meeting and exceeding customer needs and expectations better than the competition
Business Intelligence
The actionable knowledge produced by the analysis of big data (Microsoft and SAS gather business intelligence)
Digital Marketing
The application of digital technologies that form channels to market and to achieve corporate goals through meeting and exceeding customer needs better than the competition (data-driven, tailored communications, and the Internet of Things)
Customers
The center of marketing philosophy and effort that the marketing orientation focuses on
Target Marketing
The choice of which market segment(s) to serve with a tailored marketing mix
Marketing Orientation
The idea of satisfying the needs and expectations better than the competition by monitoring analyzing customer needs, lifestyles, behavior and trends
Segmentation
The identification of individuals or organizations with similar characteristics that have significant implications for the determination of marketing strategy (Spotify versus Apple from fieldboom.com, Volkswagen)
Distributors
The intermediary between producers and retailers with large warehousing capacity and a sales and delivery force servicing stores in their area or region
Nature of Services
The lack of a physical entity means the use of something without gaining ownership
Public Relations
The management of public communications and relationships to influence stakeholders' perception of a product or organization
Advertising Campaign
The media that you use during a certain time to promote a product, service, or an event that relies on mass media because it is a resource audiences use to satisfy various needs
IMC Core Elements
The message, the tools, the media channels, the people and the context
Competitors
The other companies that have a strong influence on the company's performance with the goal to create a market orientation better than the others
Product mix
The total set of brands marketed in a company (sum of product lines offered by a single company)
Suppliers
They provide the goods or services to the consumers
Porter's 5 Forces
Threat of new entrants: brand loyalty, barriers, policies Bargaining power of suppliers: number and size, uniqueness of products Threat of substitute products: number of products available Bargaining power of buyers: differences and ability to substitute Rivalry among existing competitors: concentration and growth, barriers
Target Marketing Strategies
Undifferentiated, differentiated, focused, and customized
Perceptual Mapping
Visual representation of consumer perceptions of the brand and its competitors using attributed that are important to consumers (set of brands, important attributes, research, and plotting of brands)
Positioning
Visual representation of consumer perceptions of the brand and its competitors using attributes that are important to consumers (choice of target market and differential advantage)
Rapid skimming
When companies employ a high promotion and high price pricing strategy (Apple)
Rapid penetration
When companies employ a high promotion and low price pricing strategy (Tesco)
Slow Skimming
When companies employ a low promotion and high price pricing strategy (Range Rover)
Slow Penetration
When companies employ a low promotion and low price pricing strategy (knock-off brands)
Decline Stage
When consolidation occurs among suppliers, the product line is reduced to focus on production rates, price is key and promotion is for existing customers
Maturity Stage
When products have peaked, competition fights over the market, price becomes a major component of the marketing mix, promotion is a reinforcer but also focuses on reputation and value, and distribution serves all market sub-segments
Introduction Stage
When the product is basic as there is no need for competitive differentiation which provides some sales with promotion and learning curves being key to build the price and value
Development Stage
When the product is not completely defined therefore having no value, price or sales but with heavy investment to prepare
Growth Stage
When the product's profits increase, market penetration pricing and differentiation becomes important due to competition and promotion serves as a reminder
Distribution Intensity
1, Intensive (all outlets) 2. Selective (limited markets) 3. Exclusive (selected market)
Marketing Concept Key Conditions
1. Customer orientation 2. Integrated effort 3. Goal achievement
Dimensions of Organizational Buying Decision-Making Units
1. Initiators: begin process 2. Users: use product 3. Deciders: select products 4. Influencers: provide info 5. Buyers: execute contracts 6. Gatekeepers: control info
Organizational Buying
A complex decision-making and communication process involving and procurement of product, services including raw material, components or finished goods while meeting the needs of manufacturers, resellers, government or public sector
Producer to Consumer
A distribution channel that is most attractive to producers because it creates a direct channel to consumers
Producer to Retailer to Consumer
A distribution channel that is usually used because of the size of the retailer (large)
Producer to Agent to Wholesaler to Retailer to Consumer
A distribution channel used when companies enter foreign markets and can contract an agent to deal with wholesalers and the retailers
Producer to Wholesaler to Retailer to Consumer
A distribution channel used when retailers are smaller and can only carry smaller quantities
Relationship Marketing
A firm's offer that meets customers' needs in a distinctive manner and around which a core service can be developed
Product Line
A group of brands that are closely related in terms of their functions and the benefits they provide
Brand Equity
A measure of strength of a brand in the market place by adding tangible value to a company through the resulting sales and profits
Integrated Marketing Communications
A planning process designed to assure that all brand contacts received by a customer for a product, service, or organization are relevant to that person and consistent over time in marketing, the point of sale, media, and consumption practices
SWOT Analysis
A structured approach to evaluating the strategic position of a business by identifying its strengths weaknesses, opportunities, and threats
Types of Market Research
Ad-hoc, continuous , exploratory, primary, secondary, quantitative, and qualitative
Message Decisions
Advertising messages that should clearly communicate with the target audience
Promotional Mix: IMC Tools
Advertising, personal selling, public relations, social media, direct marketing, and sales promotion
Demographic Based Segmentation
Age-Based Segmentation in either life stage or generational
Product Life Cycle
All products and offerings have a limited life and thus pass through different stages of evolution with each having different threats, opportunities, and ideal marketing mixes (Development, Introduction, Growth, Maturity, and decline)
Social Media
Allows consumers to generate content
Marketing
An exchange of money, value, products, services, experiences, signs, symbols, and ideologies meant to attract and retain customers at profit
Advertising
Any paid form of non-personal communication of ideas or products in the prime media which is easy to control
Products
Anything that is potentially valued by a target market for the benefits of satisfaction it provides, including objects, services, organizations, places, people, properties, experiences, events, and ideas
Awareness Set
Array of brands the customer is aware of
Customer Journey
Awareness, consideration, purchase, retention, and advocacy
Retail Marketing
Beacons, facial recognition, robot shopping assistants, smart mirrors, and new payment processes
Types of Segmentation
Behavioral, psychographic, and profile
Behavioral Segmentation
Benefits sought, purchase occasion, purchase behavior, usage, and perceptions/beliefs
Relationship Marketing Strategies
Bonding, internal marketing, building trust, service recovery, promise fulfillment, and targeting customers for retention
Marketing Planning Process
Business mission, marketing audit, SWOT, marketing objectives, core strategy, competitive advantage, marketing mix decisions, organization and implementation, and control
Factors Influencing Consumer Behavior
Buying situation, social influences, and personal influences
Distribution Channels
Chain of Business or intermediaries through which a goods or services passes until it reaches the final buyer or the end consumer
Target Market-Based Drivers
Changes affecting the delivery of communication messages
Channel Strategy
Channel selection, distribution intensity, and channel integration
Initiating Price Changes
Companies issue price changes due to a the value of their product being greater than or less than the price, rising costs, price discrimination, excess demand or supply, harvest build objective, or price war being unlikely through price jumps or falls, staged price increases or reductions, escalator clauses, fighter brands, price un/bundling, or lower or higher discounts
Tangible Repositioning
Companies selling a different product in a different target market (Burberry on Forbes)
Product Repositioning
Companies selling a different product in the same target market (Apple on Forbes)
Intangible Repositioning
Companies selling the same product in a different target market (Old Spice from Forbes)
Image Repositioning
Companies selling the same product in the same target market (Bank of America's online banking app on figmints.com)
Marketing Environment
Consists of all actors and forces that affect a company's capability to operate effectively in providing products and services to its customers
Microenvironment
Consists of the actors in the firm's immediate environment that affect its capabilities to operate effectively in its chosen markets (customers, competitors, distributors, and suppliers)
Digital Marketing Planning
Context, audit and SWOT, marketing objectives (SMART), marketing strategy, marketing mix, implementation, and evaluation and performance control
Channel Integration
Conventional, franchise, and vertical/ownership
Pricing Methods
Cost pricing, competitor pricing, and marketing oriented pricing
Strong Brands
Create company values, a barrier for competition, lead to a profit, is a base for brand extensions, and create trust (knock-off and own-label brands model after these)
Brand Awareness
Creates a unique marketplace position involves selecting the right target market, creating a differential advantage
Core Strategy
Creates competitive advantage, incurs acceptable risk, resources and managerially supportive, derived to achieve product market objectives, internally consistent, and clearly define target customers and their needs
Big Data
Creating opportunities to launch highly tailored and targeted promotional campaigns (Netflix and American Express use Big Data)
Media Decisions
Creative factors, size of the advertising budget, relative cost per opportunity to see, competitive activity, and views of the retail trade
Social Influences
Culture, social class, geo-demographics, and reference groups
Examples of Market Research
Customer insight, business intelligence, and Big Data
Secondary Research
Data that is compiled by others that is often internal (company records, reports) or external (government reports, statistics, market reports)
Developing Advertising Strategy
Define the objectives, set the budget (message decision or media decisions), execute the campaign, and evaluating advertising effectiveness
Profile Segmentation
Demographic, socio-economic and geographic
B2B Distribution
Direct liaison between suplier and customer to solve technical problems, size of the order, direct selling and distribution economics
Internal Environment
Employees, materials, infrastructure, company policy, company assets, cash flow, accounts and finance, human resource management, operations, and marketing
Capability to compete
Exploitable marketing assets, cost advantages, technological edge, and managerial capabilities
Buying Situation
Extended, limited and habitual problem-solving
Macroenvironment
External forces out of the company's control controlled by PEEST analysis
Quantitative Research
Focuses on numerical data while seeking to explain correlations and measurable patterns (survey questionnaires and experiments)
Product Orientation
Focuses on production capabilities or technological expertise that can become obsolete due to its cost focused strategy (Gillette and Ford Motor Company on MBASkool and Yeezy?)
Personal Influences
Force that prompts action and related to conscious or unconscious decision involving how, when, and why to allocate effort to a task or activity (motivations, beliefs and attitudes, personality, lifestyle, lifecycle, and age)
Brands
Gives a product a distinctive identity through the creation of a name and design that is built over time through communications and distinguishes a product offering from the competition
Involvement Levels
High and low affected by beliefs and attitudes
Weak Theory of Advertising
Holds that advertising is used to maintain awareness and provide reassurance (repeat pattern of thinking and behavior)
Responses to Environment Change
Ignorance: no change made Delay: wait until force is understood Retrenchment: reduce production costs that fail to increase sales Gradual strategic repositioning: adaption to marketing environment Radical strategic repositioning: change direction of the business
Repositioning Strategies
Image repositioning, intangible repositioning, product repositoning, and tangible repositioning
Influences on Buying Decisions
Importance of purchase, product type, and buy class
Sales Promotion
Incentives to consumers that are designed to stimulate purchases
Organizational Markets
Industrial market, reseller market, and government market
Customer Insight
Information that enables a company to determine why their customers behave how they do with regard to their brand
Buying Center
Initiator: considers purchase Influencer: persuade others Decider: power to choose Buyer: conducts transaction User: user of product
Characteristics of Services
Intangibility, variability, inseparability, and perishability
Successful Positioning
Involves clarity, consistency, credibility, and competitiveness
Market Orientation
Leads to the idea of businesses because it focuses on customer needs to identify potential market opportunities through the creation of products that deliver customer satisfaction (Coca Cola and Amazon on Investopedia)
Psychographic Segmentation
Lifestyle and personality (influenced by motivations of consumers)
Models of IMC
Linear communication and nonlinear communication
Market Attractiveness
Market factors, competitive factors, political, social and environmental factors
Channel Selection
Market factors, producer factors, product factors, and competitive forces
Implementing IMC
Marketing strategy and situation analysis, identifying communciation opportunities and campaign objectives, creative agency selection, promotional mix selection, campaign development and implementation, evaluation before, during, and after the campaign, and future planning
Marketing Mix
Matches consumer needs, creates competitive advantage, is well balanced, and matches corporate resources which consists of product, price, promotion, and place