352 Midterm Flashcards
Peter Drucker
Drucker’s philosophy and famous saying ‘the aim of marketing is to know the customers so well the product fits him and sells itself”
* Drucker was not just a management guru he has helped many businesses he understood that an organizations true strengths are within the people and creating an environment where innovation and creativity thrive. Management is doing things right and leadership is doing the right thing. This has guided leaders to make decisions for success.
Focusing on customers and role of marketing in value delivery
- Customers provide revenue for the owners and for everyone in the business.
- Target markets help you deliver specific products and things that generate profits.
- The most important thing is the customer and the view of the customer and meet their needs. Jeff bassos is not competitor focused but customer focused for Amazon.
- Amazon has a very good return policy so that customers are happy.
- No matter what business you are in the customer is the most valuable assets.
- Marketing is all about meeting the needs and wants of customers. Marketer can identify which areas the brand may be falling short and fins a way to target it to gain success.
Marketing and Entrepreneurship Differences and Institutional Differences
Marketers and Entrepreneurs think effectively as one another, makes you make decisions that are and will be the best for the firm in the long run and moving things forward
Virtual Influencers
not real people that simulate what a real life influencer does, competes with them and tries to be as authentic as possible
Deepfakes
media that takes a persons existing image, audio recording or video and replaces them with someone’s likeness using AI. These are a threat to privacy, and a threat overall as this technique can be used to make money such as calling grandparents pretending to be grandkids that may have been kidnapped
OFIS
Opportunities for Improvement
WIIFM
What’s in it for me
Entrepreneurship in Marketing
- Entrepreneurship in the marketing world means being a trailblazer and visionary, something that must be embraced in marketing
- Embracing the spirit can transform ideas into reality
- Entrepreneurship also provides skills in finance and innovation
- A new product can improve lives and or services
- Innovation drives growth and competition
Market Orientation
catches a firms posture and how they can differentiate themselves from competitors
Marketing Startegies
can not be one size fits all they have to consider cultural norms, politics, ethical and sustainable standards, legal, laws and data privacy
Cultural and Social Norms
are a large factor and how marketing messages are received and perceived
* Consumers in different markets/ countries have different values, could be price or sustainability where as others prefer quality
* Embracing culture is crucial to market properly to all cultures, making a more inclusive environment and gain culture appreciation
Institutional Differences
can also be within a country; such as Canada’s indigenous communities as they may have differences such as norms, views and values that we must respect as these contribute to their community
Persona Development
- To develop personas marketers will create a typical customer they do this based on surveys and questionnaires
- Personas can make large marketing decisions
- Taking time to understand customers can create better marketing campaigns
- Nike developed several personas some being athletes, casual sneaker wearer and workout guru each ad would be different for all three categories
- Each persona Nike created has characteristics for each person such as “John” who Nike created has workout goals, his injuries, time management, diet and meal prep. Nike can now tailor their campaign to be more attractive to someone like John that cater to his needs and wants
Using Value Maps
Provide a useful framework that helps visualize a products positioning in the market
Value equivalent line
brands that compete with one another selling similar products if a brand is below the line they are a share looser if they are above they are a share gainer
Positioning and Differentation
- Positioning refers how a target audience perceives the brand from competitors, companies can create a strong brand identify that stands out from competitors
- Positioning can help companies have a competitive edge; increasing sales and customer loyalty
- Apple has positioned themselves as a premium brand, while Nike is a leader in athletic wear, coco cola has positioned themselves as a timeless brand, Tesla being a leader in the electric car brand these companies have differentiated themselves from customers that drives customer loyalty
- Choosing the right position for restaurants is crucial, consider age, lifestyle and income, then research competitors, define unique selling propositions, choose a location that aligns with the target market, develop a marketing strategy consider social media, test and refine test it out with the target audience and gain feedback
Perceptual Mapping
a tool to visualize competitors’ axis choices can have experience and cost
* A visual tool to see how competitors perceive brands based on attributes that are important to the customer like pricing and quality
* Once the map is created businesses can re position the brand or create a new value proposition that sets them apart from competitors
Marketing Strategists need high competitive awareness
- At anytime you have a perception of the rivals, and they will follow suit or for example make the price cut more than yours
- T+1= TIME PERIOD plus 1 next time period
- Once you make the decision what will be the sensitivity of the customers
Porters 5 Forces Model
A diagram involving competition among rivals; * Relationships are very important as each party is making money such as suppliers, distributors and etc.
Growth Levers for increasing sales
- Sales growth levers expanding the market and capturing the market share and increasing existing revenue from existing revenues
- Expanding the market identifies finding new demographics this will allow a new customer base and tailoring your offers for these customer needs and lead to increased sales
- Capturing the market; setting your product aside from other competitors, marketing your product in away that offers better value and quality by differentiating, use social media platforms to attract new customers, continuing to introduce new products or limited edition product to entice customers or for existing customers to remain loyal
- Increasing existing revenues: making loyalty programs, or a subscription package, or rewards for re occurring purchasing
- The key lies in understanding the market to capture market share, successful sales strategies require consistent adaptation
Ansoff Matrix
also known as the product expansion grid
* The matrix has 4 strategies; market penetration, market development, product development and lastly diversification
* Ansoff matrix gives a business structured framework
* Offers a timeless tool to evaluate growth and future decisions
* Apple continues to work on market share, through continuous updates and commutive pricing, introducing products to new countries as they expanded where the phone was sold, and lastly adding new products such as the iPad, apple watch and air pods
Forecasting
- Forecasting Can influence manufacturers to plan their schedules and optimize production or minimize it
- New product roll outs analyzes trends and needs for a new product
- Expansions when there is anticipated demand or smaller space when there will be lower demand
- Staffing demands, forecasting can predict if hiring will be needed or not
- Inventory levels can be predicted through forecasting to reduce carrying costs and ensures availability of products
- Supply chain ensuring a steady supply of materials and a timely delivery
- Financial planning to determine profitability and financial model and informed financial decisions
- Getting forecasting correct is hard; the market is constantly changing and complex, global events
- Data limitations forecasting is heavily dependant on data which is time consuming and expensive flawed data can lead to in CCURATE forecasting
- Human biasing can influence forecasting; personal beliefs and experiences affect forecasting
- Strategic decision making helps leverage informed decisions on product development and seize opportunities
- Predicting future demand can minimize waste and enhance customer satisfaction when products are in stock
- Risk mitigation; navigating uncertainties and safe guard
- Enhance customer satisfaction; forecasting predicts customers future behaviours and expectations to achieve loyalty
Competitive advantage; staying ahead of trends and set themselves apart from customers
Product Lifecycle
- Product lifecycle enables you to adapt your strategies as the market changes
- For apple they have utilized the product life cycle as the iPhone has continued to revolutionize, becoming a leader in the market with its unique value proposition
- Apples marketing strategy shifted as it highlights competitive pricing and mobile network plans
- They added product diversification with apple watches, computer and etc.
- More services being offered like apple music and arcade, creating more revenue streams
- Apple effectively leveraged the product life cycle
- Product life cycle goes over the stages of a products life;
- Introduction product is launched into the market and consumers are unaware important to generate buzz about it
- Growth stage is when the product grows momentum and the demand increases
- The maturity stage is showing slow growth rates, focusing on customer retentions and broadening products
- The decline stage shows a shrinking market, to adapt during this stage consider market exit or product differentiation
When using the cycle be cautious as not all products will follow this cycle as consumer trends can alter this, do not solely rely on this collect data and industry trends, the success of a product is influenced on various concepts beyond the cycle, the product life cycle is not a one time trend constantly review and reflect strategies to stay ahead of the curve, do not neglect current customers, disruptions can occur at any stage, as a product moves throw the cycle continue to innovate
Product Adoption Curve or innovation Theory
helps explain how consumers adopt to businesses over time the curve represents the percentage of the market that has adopted a product and where it stands in the market
* First stage is innovators who seek new products, a small market and often risk takers
* Early adopters are a bit larger, influencers and help build buzz
* Early majority more cautious and waits to see how the product works before buying
* Late majority adopts the product when it is widely accepted
* Lastly laggers, last group to adopt a project and usually the last group to adopt the product when it is needed
* Product adoption curve gives different marketing messages
* The timing of the product is important as marketing can shift as the product grows
* Identifying areas of adoption; allows marketer
* Competitive insights; opportunities to differentiate the product
* Product lifecycle helps marketers understand a products life span and how. A product can be tailored to modernize and have a completive edge
* For cellphones using the product adoption curve a company may target the first stage innovators and early adopters are they are the first to try it, in the growth stage when the cellphone got positive reviews marketers will now target the early majority changing prices and distribution channels, for the late majority phase the marketing will be channeled to these individuals by changing and lowering prices and creating trade in values and lastly for the decline stage marketers will target this group by phasing out older models so this group will have to make a change
