MAR1011 Principles of Marketing
What is Marketing?
Dictionary Definition:
• “Selling of products or services: the business activity of presenting products or services to
potential customers in such a way as to make them eager to buy. Marketing includes such
matters as the pricing and packaging of the product and the creation of demand by
advertising and sales campaigns. ” – retrieved from Encarta on the Net
Marketing Mix Variables are Product, Price, Distribution, Promotion
Marketing Strategy
A plan of action for identifying and analyzing a target market and
developing a marketing mix to meet the needs of that market
Reflects overall direction of organization
Coordinated with firm’s functional areas
Contributes to achievement of:
– Marketing objectives
– Organizational goals
Marketing Strategy
Components of marketing strategy
• Target Market Selection
• Creating the Marketing Mix
• Sustainable Competitive Advantage
SWOT analysis • Strengths • Weaknesses • Opportunities • Threats
Core Competencies Things a firm does extremely (or relatively) well, which give it an advantage over competition
Market Opportunity A combination of circumstances and timing that permits an organization to take action to reach a particular target market
Competitive Advantage The result of a company’s matching a core competency (superior skill or resources) to opportunities in the marketplace
Customer Lifetime Value
May include an individual’s purchases and his or her word-of-mouth communication about products
Calculation
- Defection Rate
- Average #sales
- Average $ Sale
- Net Present Values of Discounted Cash flows- revenue stream over time
Benefits of Marketing Research
- Facilitates strategic planning
- Assesses opportunities/threats
- Ascertains potential for success
- Helps determine feasibility of a strategy
- Improves marketer’s ability to make decisions
The Marketing Research Process
- Step 1: Locating & Defining Problems or Research Issues
- Step 2: Designing the Research Project
- Step 3: Collecting Data
- Step 4: Interpreting Research Findings
- Step 5: Reporting Research Findings (“How to”)
The AIDA–I Consumer Buying Decision Making Model
- Attention
- Interest
- Desire
- Action
- Interaction
E-Marketing, Digital Media, & Social Networking
Characteristics of E-Marketing
Top 13 Best Social Networking Sites in 2023
Facebook, YouTube, Instagram, Twitter, What’sApp, Pinterest, Reddit which is going IPO this year, Tumblr, Flickr, Snapchat, Linkedin, Tagged, Meetup
Blogs is a web-based journals through which authors can editorialize and interact with other Internet users 2/3 of Internet users read blogs.
Podcasts are audio or video files that can be downloaded from the Internet via a program that delivers content to listening devices (MP3 player) or personal computers
Digital marketing differs from more traditional marketing in
five key ways
1. Addressability
2. Interactivity
3. Accessibility
4. Connectivity
5. Control
Stages of the Product Life Cycle:
Introduction, Growth, Maturity, Decline
A brand can be a name, term, design, symbol, or other feature that identifies the marketer’s product is different from those of other marketers.
Trump, Just Google it, Pepsi cans, Nike logo.
Brand Loyalty is A customer’s favorable attitude toward a specific brand
Degrees of Brand Loyalty
- Brand Recognition: Buyer is aware that the brand exists and
considers it as an alternative if the preferred brand unavailable
- Brand Preference: Buyer prefers the product over competitive
offerings and will purchase if available
- Brand Insistence: Product is strongly preferred; buyer will accept
no substitute
Four elements of Brand Equity
1. Brand-name awareness
2. Brand loyalty
3. Perceived brand quality
4. Brand associations
