Introduction Flashcards
Definition of marketing
The process of creating, communicating, and delivering offerings that have value for consumers.
Goal of marketing
To facilitate an exchange
Exchange vs Value
Exchange : An exchange is the process by which an organization exchanges value for customer ressources.
Value : A product creates value if it meets customer needs in a cost-effective way.
Customer needs can be :
Functional (I need to do a task)
Social (I need to fit in)
Esteem (I need to feel good about myself)
Exchanges
Exchanges can be one-time or can be repeated
If possible, companies will make more money if they can get consumers to come back repeatedly.
- The cost of obtaining a new customer is 5x the cost of retaining an old customer.
To encourage repeat exchange, make sure your product performs as well as or better than expected (bonus: delight your customer in other ways as well)
Definition consumer, customer and the market
Consumer: An entity (usually person, sometimes business) who expresses wants and needs by exchanging for products, services or ideas.
Customer: A consumer who buys from your business.
The market: All consumers
Process of marketing
Identify an Unmet needs
- There is no way for people to monitor their pets while they’re away from home.
Segment the Market
- People who treat their pets like family
People who treat their pets like animals
Select your target
- Selecting the target (people who treat their pets like family) who are most likely to use the product
Position & Differentiate (4P)
- Product, Price, Place, Promotion
What p marketing communications is ?
marketing communications are the “Promotion” P of the marketing mix.
Definition of Marketing Communications:
Marketing communications are coordinated promotional messages and related media used to communicate with consumers.
Goal of Marketing Communications:
To communicate an organization’s offer (i.e., the way(s) they provide value) to the customer
Function of Marketing communication
Inform, persuade, remind&reassure and diffrentiate
Inform
- Customer—who was previously unaware of the brand—becomes aware because of MarComs.
- Persuade
Persuading current and potential customers that the offering has value (i.e., fills needs in a cost-effective way) - Remind & Reassure
Reassuring consumers of the value of the product (e.g., check-ins, warranty) & reminding them of the products’ value with the goal to elicit future purchase.
Ex- Coke va continuer à faire des publicités pour nous rassurer - Differentiate
Differentiate your brand and offer from other brands offering similar products, with the goal of capturing market share.
What are the main tools of MarCom ?
Ads, Sales promotion, personnal selling, public relations, direct marketing and word of mouth.
Ads
A form of communication targeted at a segment (e.g., audio, print, television)
Sales promotion
Providing incentives (e.g., coupons, loyalty points, samples) to accelerate sales growth or gather marketing information
Personal Selling
A salesperson engages in one-on-one communication with a customer to encourage a sale.
Public relations
The dissemination of messages through third party media.
Direct marketing
Targets individual customers with the intention of delivering personalized messages (can involve a personal selling component)
Word of mouth
When one consumer shares information about a brand with another consumer. Can be encouraged by the brand but ultimately comes from other consumers
Isn’t digital a tool ?
No, digital marketing is a medium not a tool. For example, we can use the digital medium to transmit ads, direct marketing and sales promotion.
Communication theory :
Feedback: The receiver’s communication back to the source after receipt of the message
Signal: Transferring the intended message to a symbolic state that can be transmitted
Encoding: Transferring the intended message to a symbolic state that can be transmitted
Decoding: Understanding the symbolic state of the message in order to understand the message
Receiver: The individual or organization receiving the message
Source: The individual or organization sending the message
Questions à se poser ?
Who is the source? _______________
What is the signal (i.e., what tool did they use to transmit the message?) ___________
Who is the receiver? ___________________
