Marketing 3421 Chapter 2

Marketing
is everything that occurs between a buyer and a seller to facilitate a valued exchange
Marketing Concept
marketers identify customers wants and/or needs and then provide products or services with desired benefits to satisfy those wants and/or needs
Need
the difference between a consumers actual state and some ideal or desired state
Want
the desire for products or services that are not necessary, but which consumers wish for
Storytelling
sharing brand messages in ways that engage audiences and drive them to take a desired action
Example of storytelling
like making a purchase, calling a sales person, downloading or subscribing to content
Product
a good, service, or idea that can be marketed
Augmented product
aspects of the product or service that help the consumer to use the core product
(i.e. such as a warranty or an instruction book
Core product
the basic good or service that is being sold
Packaging
provides value in terms of storing a product and allowing it to be transported safely and that makes a product visually distinctive to consumers
Place
where a product is offered for sale
(i.e in a local grocery store, a “big box”)
Direct channel
a channel of distribution consisting of a producer and the consumer
Indirect channel
a channel of distribution that includes one or more intermediaries, such as wholesalers, agents, brokers, or retailers
Price
is the amount that the consumer pays to acquire a product
Promotion
all the activities that inform, persuade and remind consumers to buy a given product
Promotional Pull strategy
promotional effort aimed at the final customer
Promotional Push strategy
promotional programs designed to motivate channel members to stock certain products
Encoding specificity principle
a principle of cognitive psychology, which states that information recall is enhanced when the context in which people attempt to retrieve information is the same or similar to the context in which they originally encoding the information
People
examining the powerful human element that the digitally connected world permits; personalisation, peer-to-peer sharing, communities, and consumer-centric organisations that allow people to participate in the brand story
Crowdsourcing
asking and enabling people to share their ideas or creations in exchange for an emotional or monetary reward
Crowdfunding
asking many people in a large crowd each to donate a small amount of money in order to gather a large sum to fund a specific project or venture
Microtasking
breaking a big task or project down into tiny components and asking many people to each complete a few of these components
Brands
based on information and experiences that reside in the minds of consumers
Branding
a way to distinguish a particular product or service from others
Brand equity
the tangible or intangible value of a branded product over and above the value of another product in the same category that makes consumers willing to pay more for it
Brand essence
the representation of the company’s heart, soul and spirit, and is best described in less than five words
Brand parity
the perceived similarity in attributes and quality among brands
Brand personality
is a set of traits that people attribute to a product as if it were a person
Declarative memory
is “knowing what” part of memory, it includes facts and events, and refers to those memories that can be consciously recalled ( or “declared”)
Procedural memory
(“know how”) is the unconscious memory of skills and how to do things, particularly the use of objects or movements of the body, such as tying a shoelace, playing the guitar or riding a bike
Brands have benefits for the buyer
-signals known properties
-simplifies decision making
-provides psychological reinforcement
-provides feelings of social acceptance and defines self
Brands have benefits for the manufacturer
-higher profitability
-offers legal protection
-reduces brand parity and brand switching behaviors
-offers leveraging power
-price war protection and premium pricing
-aids in dealing with crisis
-attracts top employee talent
Relationship marketing
marketing with the conscious aim to develop and manage long-term and/or trusting relationships with customers, distributors, suppliers, or other parties in the marketing environment
Transactional marketing
a business strategy that focuses on “single point of sale” transactions
Customer-centric philosophy
a value system where a company’s alignment of operations, production and internal controls are centered on consumers
Customer-driven
the idea that marketers implement strategies with customers who are the most important stakeholders into “day-to-day business decisions and strategy”
For example, the Energizer bunny placed on the Energizer packaging can enhance recall
encoding specificity principle
Value proposition
the clearly identifiable benefit a brand provides relative to competing brands
There are 4 strategic reasons why business should aim to be customer centric
-clarity
-design and development
-sales and marketing
-profitability