25 Key Marketing Terms -- Written Assignment #1

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The Basics of Marketing

A review of basic marketing terms & processes

Chapter 1

Finding & motivating the consumer.

Chapter 2

Essential factors that marketing managers deal with every day.

Chapter 3

Key marketing terms & processes.

Chapter 1

Finding & Motivating the Consumer

Marketing means…

“Creating

Customers”

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"OtcJr study conc1udes cha< thi i the percentage of our customers who will buy from us witho ut any

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MARKETING CONCEPT

Marketing programs grounded in what the

consumer

wants, not what the

brand

wants.

S – T – P

Marketing Process

S – T – P Marketing Strategy SEGMENTATION

S – T – P Marketing Strategy

TARGETING

S – T – P Marketing Strategy POSITIONING

Target Market

A sub-group within the overall Market.

They share common traits not shared by others in the overall Market

Target Marketing Segmented

( Market )Target Market

Target Market

Target Marketing Concentrated

Target Marketing One-on-One

Target Market Attractiveness

1. SIZE. Is it large enough to be worthwhile?

2. PROFITABLE. Does the group have

the funds and interest in our product?

3. REACHABLE. Can we segment this

group and deliver our message to them?

Whole Foods Grocery Store TARGET MARKET

The Whole Foods target consumer is a 34 to 45

year old upper-class female (or she thinks of herself as upper-class).

She is married with children and is environmentally conscious, physically active, and politically liberal.

She enjoys healthy food, often shops for organic products, and is concerned for her health, as well as the health and well-being of her family.

She shops at Whole Foods twice a week and buys from other grocery stores one time a week. 17

80/20 Rule

A small number of customers represent

A large portion of a brand’s total sales.

St r e n g t h s

Hst your:

+ advantages

+ unique and low cost

resources

+ fadors mean that you

•get thesaie·

Opport un it ies

list yot.w:

+ Chances to Improve

performance

+ good opportunities can

you spot

SWOT

Cummings, C. (2014, July 23). What is a SWOT Analysis?

Bplans.com

https:// www.youtube.com/watch?v=4aFB9xrkdiU

POPs & PODs

Urbany, J. (2011, June 14). Competitive Strategy in 3 Minutes [Video].

http://www.youtube.com/watch? v=bl5cyZlay4k

POPs & PODs

How is your product

similar to the leading competitors:

Points-of-Parity (POPs)

How is the product different:

Points-of-Difference 23

S – T – P

Marketing Process

SEGMENTATION TARGETING

Unique Selling Point

Also called ‘Competitive Advantage”, positioning statements, and positive PODs. This is the reason the consumer will select your product over your

( ompetitor’s offering . )c

USP

Cupman, J. (2015, July). What Does It Take to Create a Strong USP? American Marketing Association / B2B Marketing.

https:// www.ama.org/publications/ eNewsletters/B2BMarketing/Pages/what-does- it-take-to-create-a-strong-usp.aspx

Product Differentiation

► Real

► Artificial

walmart for the middle class

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harder.

DONT,.-HEEZE

CHARMIN

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JEWELERS

Every kiss begins with Kay.·

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"Look, lVlom no ca\.ities!"

Chapter 2

Essential Factors that Marketing Managers Deal with Every Day

Basic Marketing Management

Non-Controllable Issues Controllable Issues

Non-Controllable Issues

1. Customer

2. Competition

3. Regulations

4. Social Issues

5. Economy

6. Technological Changes

7. ( 40 )Environment

( EGULATIONS )Non-Controllable R

Non-Controllable SOCIAL ISSUES

I ' VE MAD IT WITM DIETINC:r! - 1 L04ST TWO POUNDc; LAc;T WEE", AND NOBODY NOTICED!

Non-Controllable ECONOMY

Non-Controllable TECHNOLOGICAL CHANGE

Non-Controllable ENVIRONMENT

Non-Controllable Issues

1. Customer

2. Competition

3. Regulations

4. Social Issues

5. Economy

6. Technological Changes

7. Environment

Controllable Issues

1. Controllable Marketing Issues

2. Internal Marketing Variables

3. Marketing Mix

4. Four P’s

Controllable Issues

1. PRODUCT

2. PLACE

3. PRICE

4. ( 49 )PROMOTION

1. PRODUCT

· The marketing team decides what products to offer.

· This broad category also includes services.

Services Marketing

1. Intangible

2. Variable Production

3. Can’t inventory

Masterbrand

A brand so powerful and controlling of the market that the registered trademark brand name is often used to stand for the entire category.

Line Extensions

Noted author and consultant Al Ries has strong views

against the proliferation of line extensions. Read his views here:

Ries, A. (2015, October 6). The Line Extension Time Bomb Claims Another Victim: McDonalds. Advertising Age. http://adage.com/article/al-ries/line-extension-time-bomb- claims-victim-mcdonald-s/300773/?utm_source=daily_email&utm_medium=newslette5r4

Brand Extensions

Family Branding

Private Label Branding

2. Place

The marketing team determines locations for their product to be sold, such as on-line or a special type of retailer.

The goal is to efficiently have the product available to the consumer when they are prepared to make a purchase.

How many POPs are ideal?

USA points-of-purchase

Coca-Cola	600,000
Bounty Paper Towels	120,000
Subway Sandwiches	35,000
Maytag Washers	5,000
Jaguar Cars	100

3 Popular Distribution Strategies

3. PRICE

· The marketing team determines the price for the item.

· The brand is not allowed to force retailers to charge a price—the brand can only suggest it.

PRICE: EDLP vs High / Low

Wal-Mart uses EDLP, rarely Featuring discounts. This retailer wants to project that the prices on all of their merchandise is low.

Best Buy uses a High / Low strategy. This allows the retailer

to offer deep discounts on a few 62

PRICE: Loss Leader Pricing

PRICE: Product Line Pricing

PRICE: Prestige Pricing

PRICE: Variable Pricing

PRICE: Quantity Discounting

4. PROMOTION

Non-Media Communications

Personal Selling

Public Relations

MEDIA

Direct Marketing

Slotting Fees & Trade Allowances

Chapter 3

Key Marketing Terms & Processes

Marketing Plan

Value

IMC -- Integrated Marketing Communications

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Seasonality

120

100

J F M A M J J A S O N D

Gatorade

Push & Pull Marketing

SKU – Stock Keeping Units

· Primary

Packaging

· Secondary

( Marketing Research )

“Second is always first.”

SECONDARY RESEARCH

( Marketing Research )

PRIMARY RESEARCH

Random Representative

Number of responses versus non-respondents

Marketing Research – Survey Design

Here is concise information about the many issues involved in the design

of a survey: https:// www.statpac.com/ surveys/index.htm

5- Step Consumer Purchase Decision Process

Cognitive Dissonance

Return Policy Product Guarantees Endorsements Follow-up contacts

( Surprise Marketing )

Doing more than the average consumer expects, so the customer will be positively impressed

in your product and/or service.

( Internal Marketing )

Communicating product benefits within the organization (employees & vendors)

(1) sell to these consumers.

(2) provide knowledge that can then be delivered to traditional customers.

Co-Branding

Relationship Marketing

Giving consideration of consumer’s long-term value, often at the expense of maximized short-term profits.

Loyalty Programs

Cause Marketing

Guidance on how to develop a successful cause marketing program can be found here:

http://www.forbes.com/sites/theyec/2012/07/16/5-characteristics-of-a- successful-cause-marketing-campaign/

Here is information about the brands that are leading the charge in the area of ‘Cause Marketing’:

Murray, A. (2015, August 20). Introducing Fortune’s Change the World List: Companies that are Doing Well by Doing Good.

Fortune.

http://fortune.com/2015/08/20/introducing-change-the-world-list/

Industrial Marketing

Also called “Business-to-Business” (B2B)

Many consumer brands are also sold to businesses.

Public media is usually minimized.

Personal Selling & Trade Shows often given emphasis.

Industrial Marketing

Here is an entertaining video that shows the challenges of B-2-B marketing, especially with a weak communication support program:

GLOBAL MARKETING

The INTERNET makes all brands global.

Many countries are growing in both production and consumer sophistication.

USA’s population is only 4.4%

of the world’s population

(1 out of 23).

Global Marketing

Here is a detailed web site about global marketing (save this—it will be helpful when you take an International Management course):

http://globaledge.msu.edu/reference- desk/

Legal Controls to Global Trade

EMBARGO

Zero trade allowed in this type of product.

QUOTAS

Quantity limit set for a defined time period.

TARIFF

A tax added to each item received.

100

Legal Indicators

101

The

102

103