Marketing Principles: Final Review

Front 1

What is Marketing?

Back 1

• A combined variety of communication functions that convey the value of an idea, a product or a person so that targeted audiences are persuaded to view and respond to that idea, product or person in a favorable light
• Successful marketing campaigns lead to:
o Improved sales
o Enlarged participation
o Enhanced support
o IMPROVED REPUTATION

Front 2

Exchange

Back 2

• People giving up something to receive something they would rather have

Front 3

The Marketing Mix

Back 3

• Price, Placement, Product, Promotion

Front 4

Marketing Management Philosophies

Back 4

Orientation Focus is on…..
Production- Internal capabilities
Sales- Techniques and belief good sales =high profit
Market- Satisfying customers and meeting objectives
Societal- Satisfying customers while enhancing individual and societal well-being

Front 5

Societal Marketing Orientation

Back 5

• An organization exists not only to satisfy customer wants but also to preserve or enhance individuals’ and society’s long term best interests

Front 6

Customer Value

Back 6

• A market orientation focuses on customer value:
o Relationship between benefits and the sacrifice necessary to obtain those benefits
o Customer value leads to customer satisfaction

Front 7

Customer Satisfaction Creates Relationships

Back 7

• Relationship marketing- A strategy that focuses on keeping and improving relationships with current customers

Front 8

Four Eras in the History of Marketing

Back 8

• Production- good product will sell itself (prior to 1920)
• Sales- creative advertising and selling are key (prior to 1950)
• Marketing- consumer rules! (since 1950)
• Relationship- long term relationships (since 1990)

Front 9

Marketing Plan Elements

Back 9

Business mission statement
Situation or SWOT Analysis
Objectives
Marketing Strategy – target market strategy, marketing mix, 4 P’s
Implementation Evaluation Control

Front 10

Situational Analysis

Back 10

• Written narrative describing business in terms of:
o Brief history
o Current business
o Business environment
o Business leadership
o Desired position

Front 11

SWOT Analysis

Back 11

• S- strengths
• W- weaknesses
• O- opportunities
• T- threats

Front 12

Environmental Scanning

Back 12

• Go out and look around
• Collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan
• Do NOT be myopic

Front 13

Code of Ethics

Back 13

• A guideline to help marketing managers and other employees make better decisions

Front 14

Corporate Social Responsibility

Back 14

• Philanthropic- be a good citizen
• Ethical- do what is right
• Legal- obey the law
• Economic- be profitable

Front 15

Benefits of Globalization

Back 15

• Expands economic freedom
• Spurs competition
• Raises productivity and living standards
• Offers access to foreign capital, global export markets, and advanced technology
• Promotes higher labor and environmental standards
• Acts as a check on government power

Front 16

Issues Facing Trade and Globalization

Back 16

• Millions of Americans have lost jobs
• Millions fear losing jobs
• Threat of outsourcing if workers do not accept pay cuts
• Vulnerability to operations moving offshore

Front 17

Demographic Factors

Back 17

• Children- Under 7 years old
• Tweens- 7 to 14 years old
• Gen Y- 15 to 30 years old
• Gen X- 31 to 45 years old
• Baby Boomers- 45 to 65 years old
• Elderly- 65 and up
• Millennials- 20s (tech savvy)

Front 18

Growing Ethnic Markets

Back 18

• Spending power of ethnic markets:
o Hispanics- $1 trillion
o African Americans- $921 billion
o Asian Americans- $526 billion
• Diversity can result in bottom line benefits to companies

Front 19

Niche Marketing

Back 19

• Efforts to appeal to an identified subset of a larger market through specific product or service offerings designed to meet a defined set of needs

Front 20

Consumer Decision Making Process

Back 20

------------------------------------------------ 1. Need Recognition
| Cultural, social, individual, and | 2. Information search
| Psychological factors all effect steps | 3. Evaluation of alternatives
------------------------------------------------ 4. Purchase- **Transaction Point
5. Post purchase behavior

Front 21

Need Recognition

Back 21

Marketing helps consumers recognize an imbalance between present status and preferred state

Front 22

Evoked Set

Back 22

• Group of brands, resulting from an information search, from which a buyer can choose
• Based on personal recall

Front 23

Cognitive Dissonance

Back 23

• Inner tension that a consumer experiences after recognizing an inconsistency between values or opinions

Front 24

Post purchase Behavior

Back 24

• Consumers can reduce dissonance by:
o Seeking information that reinforces positive ideas about the purchase
o Avoiding information that contradicts the purchase decision
o Revoking the decision and returning the product
• Marketing can minimize through:
o Effective communication
o Follow up
o Guarantees
o Warranties

Front 25

Factors Influencing Buying Decisions

Back 25

Cultural Social Consumer Decision
----|-------------------------|--------------→Making Process ----→
Individual Psychological

Front 26

Subcultures

Back 26

• Body builders, skaters, etc.

Front 27

Psychological Influences

Back 27

• Perception
• Motivation- Maslow
• Learning
• Beliefs and attributes- religion

Front 28

Perception

Back 28

• Selective exposure- Consumer notices certain stimuli and ignores others
• Selective distortion- Consumer changes or distorts information that conflicts with feelings or beliefs
• Selective retention- Consumer remembers only that information that supports personal beliefs

Front 29

Market Segmentation

Back 29

• Market- people or organizations with needs or wants and the ability and willingness to buy
• Market Segment- Subgroup of people or organizations sharing one or more characteristics that can cause them to have similar product needs
• Market Segmentation- The process of dividing a market into meaningful, relatively similar, identifiable segments or groups

Front 30

Criteria for Segmentation

Back 30

• Sustainability- segment must be large enough to warrant a special marketing mix
• Identifability and measurability- segments must be identifiable and their size measurable
• Accessibility- members of targeted segments must be reachable with the marketing mix
• Responsiveness- unless segment responds to a marketing mix differently, no separate treatment is needed

Front 31

Basis for Segmentation

Back 31

• Geography
• Demographic
o Age, gender, ethnicity, etc…
• Psychographic
o Personality, motives, lifestyles, etc…
• Benefits
• Usage Rate

Front 32

The Role of Marketing Research

Back 32

• Marketing research- the process of planning, collecting, and analyzing data relevant to a marketing decision
• Descriptive: gathering and presenting factual statements
• Diagnostic: explaining data
• Predictive: “What if?”

Front 33

Primary Data

Back 33

• Information collected for the first time. Can be used for solving the particular problem under investigation

Front 34

Secondary Data

Back 34

• Data previously collected for any purpose other than the one at hand

Front 35

Forms of Survey Research

Back 35

• In-home interview
• Mall intercept interview
• Telephone interview
• Mail surveys
• Executive interview
• Focus group

Front 36

Probability Sample

Back 36

• Probability sample- a sample in which every element in the population has a known statistical likelihood of being selected
• Random sample- a sample arranged so that every element of the population has an equal chance of being selected

Front 37

Non-Probability Sample

Back 37

• Non-probability sample- any sample in which little or no attempt is made to get a representative cross section of the population
• Convenience sample- a form of non-probability sample using respondents who are convenient or readily accessible to the researcher

Front 38

Product Life Cycle

Back 38

• A concept that provides a way to trace the stages of a product’s acceptance to its introduction (birth) to its decline (death)

Front 39

Categories of Adopters

Back 39

• Innovators
• Early adopters
• Early majority
• Late majority
• Laggards

Front 40

Marketing Channels

Back 40

• Marketing channel- a set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer

Front 41

Channel Intermediaries

Back 41

Retailers ← Take title to goods (own it)
Merchant Wholesalers ← Take title to goods (own it)
Agents and Brokers ← DO NOT take title to goods (DO NOT own it)

Front 42

Retail Mix

Back 42

• Add 2 extra P’s to the marketing mix:
o Personal
o Presentation
o Product
o Place
o Promotion
o Price

Front 43

Major Types of Advertising

Back 43

• Institutional advertising- enhances the company’s image rather than promotes a particular product
• Product advertising- touts the benefits of a specific good or service

Front 44

Identify Product Benefits

Back 44

• Attribute- appealing aspects of the product
• Benefit- how it can enhance the consumer experience

Front 45

Advertising Appeals

Back 45

• Profit, health, love and romance
• Fear, admiration, convenience
• Fun/pleasure, vanity/egotism, environmental consciousness

Front 46

Major Advertising Media

Back 46

• Newspapers
• Magazines
• Radio
• Television
• Outdoor media
• Yellow pages
• Internet

Front 47

Advertising vs. Public Relations

Back 47

• Advertising is best at:
o Exciting
o Selling
• PR is best at:
o Informing
o Persuading

Front 48

The Functions of Public Relations

Back 48

• Maintain a positive image
• Educate the public about the company’s objectives
• Introduce new products
• Support the sales effort
• Generate favorable publicity
**Accomplished through engaging media and being the subject of or being included in stories about your product, service or function

Front 49

Integrated Marketing Communications

Back 49

• The careful coordination of all promotional messages to assure the consistency of messages at every point of contact where a company meets the consumer