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Unit 1 PPT - Determine Marketing Requirements_PP.pdf

Marketing Fundamentals: Unit 1 Highlights

Key Vocabulary

Affiliate Marketing

Performance-based marketing where affiliates earn commissions for driving visitors or sales through their promotional efforts.

Awareness

A measure of how many people have been exposed to a marketing message, often tracked by impressions and reach metrics.

B2B (Business to Business)

Commercial transactions between businesses, such as suppliers selling to manufacturers.

B2C (Business to Consumer)

Transactions where businesses sell products or services directly to consumers.

Branding

The process of creating a unique image, message, and identity for a business to differentiate it from competitors and build customer loyalty.

Broadcast Media

Traditional channels for marketing via TV, radio, and cinemas used to transmit messages to a wide audience.

Content Marketing

Creating and sharing relevant, valuable content to attract and engage a target audience to drive profitable customer action.

Consumer to Business (C2B)

A model where consumers create value (e.g., content creators) which businesses then purchase or leverage.

Demographics

Statistical data relating to populations and particular groups based on factors like age, income, gender, location, and occupation.

Direct Marketing

Marketing strategy where businesses sell directly to customers, bypassing intermediaries.

Distribution Channels

Pathways through which products or services travel from producers to consumers, including traditional and online methods.

Engagement

Interaction by consumers with marketing content measured by likes, shares, comments, and clicks.

Marketing Mix (4Ps)

The four core elements of marketing strategy: Product, Price, Place, and Promotion.

Needs

Essential requirements for survival and health such as food, shelter, and social interaction.

Psychographics

Characteristics based on consumer interests, lifestyles, and attitudes, used for market segmentation.

Promotion

Marketing communications used to inform and persuade customers about products or services.

Social Media Marketing

Use of platforms like Facebook and Instagram to promote products by targeting specific audiences through content and advertising.

Target Audience

Specific groups within the broader market a business aims to reach with its marketing efforts.

Target Market

A defined group of consumers at whom a product or service is aimed.

Wants

Desires for non-essential goods or services, luxury items, or specific brands.

2. Key Points and Core Concepts

Needs vs Wants

Needs are fundamental for survival; e.g., food, water, shelter, clothing, and social interaction.

Wants are desires influenced by personal, cultural, and situational contexts, e.g., luxury cars or smartphones.

Context and perception affect classification; a want might become a need under certain circumstances (e.g., a cell phone during a pandemic).

Target Market and Audience

Targeting specific groups is essential due to cost and differences in demographics, psychographics, culture, etc.

Understanding the audience improves marketing message relevance and effectiveness.

Segmentation enables tailored promotion strategies.

Marketing Mix (4Ps)

Product: Can be tangible (cars, electronics) or intangible (services, experiences).

Price: Amount paid, including psychological costs; influenced by discounts and payment terms.

Place: Distribution channels, both physical and virtual, enhancing access for consumers.

Promotion: Communication strategies including advertising, PR, sales promotions, and digital ads.

Digital Marketing Mix

Adaptation of 4Ps for the online environment with virtual products, dynamic pricing, Internet-based distribution, and digital promotions like SEO, PPC, social media marketing.

Marketing Process

Define market strategy using 4Ps

Conduct market research with tools like Google Analytics, surveys

Choose marketing strategy (social media, direct response, media advertising)

Execute, monitor (metrics like engagement and awareness), and adjust campaigns

Distribution Channels

B2C: Retail stores, online shops

B2B: Supplier-manufacturer relationships, also digital platforms like Alibaba

C2C: Yard sales, online platforms like eBay, Carousell

C2B: Consumers creating content/value (influencers) monetized by businesses

Promotional Mix

Advertising: Paid messages via various media including TV, print, outdoor ads, endorsements

Sales Promotion: Short-term incentives to boost sales

Direct Marketing: Direct selling to consumers online or offline

Personal Selling: Face-to-face sales interaction

Public Relations: Managing public image and strategic communication

Branding: Creating a recognizable and reliable brand identity consistent across all touchpoints

3. Important Data and Illustrations

Marketing Process Steps:

Use 4Ps to define the strategy

Perform market research

Select Marketing Strategy

Execute, monitor, and adjust campaigns

Social Media Marketing Metrics:

Engagement = Likes + Comments + Shares + Clicks

Awareness = Impressions & Reach

Examples of distribution channels:

Apple sourcing microchips from Samsung (B2B)

Yard sales / eBay (C2C)

Online influencer marketing (C2B)

Brand Consistency Example:

McDonald’s Big Mac tastes the same worldwide, delivering on brand promise.

Digital Marketing Pricing Element:

Price transparency and flexibility afforded by real-time online pricing adjustments.

4. Additional Critical Aspects

Principles

Context and Perception Principle: Needs and wants depend on the context and individual perceptions, influencing marketing strategies.

Segmentation Principle: Effective marketing requires the division of markets into smaller, distinct groups with similar characteristics.

Customer-Centric Principle: Understanding and adapting to changing customer preferences is critical.

Methodologies

Market Research Tools: Online analytics, surveys, and keyword tools to gather data on consumer behavior.

Social Media Campaign Management: Objective setting, platform selection, audience targeting, content creation, paid advertising, monitoring & optimization.

Affiliate Marketing Process: Content producer promotes products linking to brands or retailers; earns commission based on traffic or sales.

Promotional Mix Tailoring: Choosing appropriate mix components depending on target market and campaign goals.

Laws & Rules

E-mail Marketing Regulations: Permission-based mailing to avoid spam, ensuring legal compliance and customer respect.

5. Summary Table: The Marketing Mix Elements (Traditional & Digital)

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End of Unit 1 Highlights