MGT120: Chapter 8 Vocabulary

Marketing
-the process of creating and delivering desired goods and services to customers
-Involves all of the activities associated with winning and retaining loyal customers
-a solid business plan needs to contain both a financial plan and a marketing plan
Bootstrap Marketing Strategies
-Are unconventional, low-cost, and creative marketing techniques that allow a small company to realize a greater return from its marketing investment than do larger rivals
-Do NOT require large amounts of money to be effective-just creativity
A Bootstrap Marketing Plan: 3 Objectives
1. Pinpoint the specific target markets the company will serve
2. Determine customer needs and wants through market research
3. Analyze a firm’s competitive advantages and create a marketing strategy to communicate its value proposition to the target market
Target Market
-the specific group of customers at whom the company aims its products or services
-Marketing strategy must be built on a clear definition of a company’s target customers
-Example: BlackRapid
Pinpointing the Target Market
-Target customer must permeate the entire business-merchandise sold, background music, layout, decor, and other features
-Without a clear image of its target market, a small company tries to reach almost everyone and ends up appealing to few
Demographics
the study of important population characteristics, such as age, income, race, and education
Market Research
the vehicle for gathering the information that serves as the foundation for the marketing plan
-NEVER assume that a market exists for your company’s product or service, prove it!
-Market research does NOT have to be consuming, complex, or expensive to be useful
Online surveys, social media, etc…
Tracking Trends
-Read many diverse current publications
-Watch the top 10 shows
-See the top 10 movies
-Talk to at least 150 customers a year
-Talk with the 10 smartest people you know
-Listen to your children and their friends
How to Conduct Market Researching?
1. Define the objective
2. Collect the data
-Individualized (one-to-one) marketing
-Primary research
-Secondary research
-Data mining
3. Analyze and interpret the data
4. Draw conclusions and act
Building a Competitive Edge
Bootstrap marketing principles:
-Find a niche and fill it
-Use the power of publicity
-Don’t just sell, entertain!
-Strive to be unique
-Build a community with customers
Connect with customers on an emotional level
Define a USP (Unique Selling Proposition