lectures 1+2 Flashcards
Businesses share 2 needs:
- Stay in business
- Make a profit
3 Informal Definitions of Marketing
- Building/managing profitable customer relationships
- Creating/exchanging value
- Identification of unmet needs/creation of solutions for those needs
B2B vs. B2C
-B2C: satisfy needs of consumers; consumer is the ultimate endurer of a product/service
- B2B: satisfy needs of organizations; business/producer is the marketer of a product
Need vs. demand vs. benefit
Need: difference between customer’s actual state and where they perceive they want to be (may be functional but often go beyond just simple fulfillment)
Demand: customer’s desire for products coupled with “resources to obtain them”
Benefit: the outcome sought that motivates consumer behavior
Market
All the customers who:
- Share a common need
- That can be satisfied by a specific product
- Who have the RESOURCES to exchange for it
- Who are WILLING to make the exchange
- Have the authority to make the purchase
i.e. I am not in the market for beer because I am unable to purchase beer.
Marketplace
Location/medium used to conduct an exchange
Value
- Dictated by 2 parties
- Personal/individual decision which requires agreement between buyer and seller
What can be marketed?
Anything!
- Tangible/physical goods
-Intangible products/services
- Ideas/concepts
Consumer goods
Tangible goods purchased by individual consumers for “personal or family use”
- CPG: consumer packaged goods
Services
Intangible products exchanged directly from producer to consumer
- We live in a service economy
B2B marketing
Goods or services for A) resale, B) use in production of new goods, C) to support operations
E-commerce
Sales of goods utilizing on line tech
Not for profits
Non-taxable entities for charity, education, religious and community organizations
Marketing Mix Tools (4 P’s of Marketing)
Combination of variables that a company uses to influence/meet needs of its target customers.
Product - ideas, goods, services (tangible/intangible)
Price - assessment of value (not just a number)
Place - when/where available (“distribution”)
Position - activities to inform/stimulate/incentivize a sale
* Sometimes: Promotion
Promotional mix
combination of marketing methods to achieve a specific goal
- advertising, public relations, personal selling (1 to 1), sales promotion, direct mail, internet marketing
Marketing Process
Series of steps a business takes to connect with its target audience and sell its products/services.
1. Plan –> execute the plan
2. Monitor –> assess what has been achieved
3. Review –> compare achievements against plan
4. Control –> specify any remedial action needed
BACK TO PLAN
SWOT analysis
Strengths
Weakness
Opportunities
Threats
Mass market
Product for everyone – “mass marketing” = marketing strategy targeted to everyone, no differentiation
Segmentation
Segmentation of a market allows for more defined targeting
Individualized marketing/micromarketing
Tend to a very specific group of target customers, or to each individual customer
Stakeholders
Anyone that has a “vested interest” in the business: stockholders, employees, competitors, customers, suppliers, government, communities
4 P’s of Marketing
- Product (ideas/good/services, tangible or intangible)
- Price (assessment of value)
- Place (when/where available)
- Position (where a company stands in company’s mind)
Promotional mix
Methods of promotion –> includes advertising, PR, personal selling, direct mail
Strategic planning hierarchy
Mission statement : leads to corporate objectives, first line in mktinig plan
Tactical plan: planning strategies/tactics to support strategies
Operational plan: detailed plans for day to day activities that suport tactical
