Marketing

• Marketing effort


  Will proceed in accordance with ethical practices and effectively serve the interests of both the individual and the organization
• Marketing variables


  Product, Price, Promotion, Place
• The marketing concept assumes that an organization begins by identifying and analyzing the consumer segment that it will later satisfy through its production and marketing activities
• The customer, client, or public determines the marketing problem
• Marketing concept


  Emphasizes creating and maintaining relationships with consumers in business for long-term, mutually satisfying relationships
• Eras of marketing


  • Production Error
  • Sales Error
  • Marketing Error
  • Relationship Error
• Production Error


  • Manufacturers stressed production of quality products, the prevailing attitude was "a good product will sell itself"
• Sales Error


  • Businesses attempted to make there be a large number of customers who want their output, the predominant attitude was "creative advertising and selling will convince them to buy"
• Marketing Error


  • Managers were forced to pay attention to the markets for the goods and services, the predominant thought was "the consumer rules and read and fill their needs"
• Relationship Error


  • Organizations now focus on the marketing efforts, customer orientation by focusing on establishing and maintaining relationships with both customers and suppliers, the predominant attitude is "building relationships with customers and other partners leads to success"
• Target market


  The group of people towards whom the firm decides to direct its marketing efforts and ultimately its marketing mix
• Companies targeting specific markets

  • Airlines targeting other businesses
  • Insurance companies targeting individuals
• Marketing mix variables


  • Product
  • Price
  • Promotion
  • Place
• Product strategy


  Involves more than just deciding what goods or services a firm should offer to a group of consumers, it includes decisions about package design, customer service, brand names, patents, warranties, trademarks, the life cycle of a product, and positioning of the product in the marketplace
• Place strategy


  Involves planning the channels of distribution and the physical movement of products from the producer to the final consumer, it includes decisions about channels of distribution, warehousing, inventory control, order processing, and selection of marketing intermediaries
• Promotion strategy


  Deals with the link between buyers and sellers, it is a function of informing, persuading and reminding consumers about a product
• Pricing strategy


  Deals with determining profitable and competitive prices, it is most closely regulated and subject to public scrutiny
• Marketing environment


  The dynamic nature of the five dimensions: competitive, technological, economic, socio-cultural, and political-legal environments
• Environmental scanning


  The process of collecting information about the external marketing environment to identify and interpret potential trends and threats, the goal is to analyze them and decide whether they represent significant opportunities or threats to the firm
• Competitive environment


  The interactive exchange that creates competitive decisions by each individual firm and the consumer responses in the market place, marketers must continually monitor competitor marketing mix activities
• Technological environment


  The application of knowledge in science, engineering, and technology to marketing, it leads to new products and services for consumers, it also leads to improving existing products, offering better customer service, and often reduced prices through new cost efficient production and distribution methods
• Economic environment


  The overall health of the economy that influences how much consumers demand and what they buy, it includes factors that influence consumer buying power and market buying stages such as stage of business cycle, inflation, unemployment, income, and resource availability
• Sales Forecasting


  The process of estimating future Sales for revenue optimization
• Sales Forecasting


  1. Using market trends

  2. Using historical sales data

  3. Using Customer surbase data
• Sales forecasters


  • Important and essential for business to ensure that they have enough inventory to meet customer demands
• Sales forecasting can help businesses make uniformed decisions about allocating resources
• Sales forecasts is not an exact size and costs is always involved
• Market Segmentation


  Dividing total prospective buyers into groups or segments with common needs and who respond similarly to a marketing action
• Market Segmentation


  • Similarities can range from age, location, interest, life values, buying habits, etc.
• Demographic Segmentation


  Categorizing people based on observable differences such as age, gender, occupation, income, religion, ethnicity, marital status
• Psychographic Segmentation


  Considering the customer's beliefs, interests, values, life goals, lifestyle, personality traits
• Behavioral Segmentation


  Looking at how customers behave and engage with the brand, including spending habits, brand interaction, browsing patterns, product ratings, loyalty, website visits
• Firmographic Segmentation


  Segmentation for business-to-business firms, similar to demographics for people
• Demographic segmentation is a good starting point but should be used alongside other segmentation types
• Effective market segmentation practices are important for building brand loyalty as customers feel understood by the brand
• Benefits of market segmentation

  • It helps tailor marketing and boost engagement
  • It allows you to create better marketing strategies that more appropriately communicate your brand values and the benefit of your product
  • It allows you to cultivate highly targeted marketing campaigns that could get to the bottom of the matter in the language, manner and platform your customer would appreciate the most
  • It saves your time