C201-Business Acumen Notes C201-Business Acumen Notes, Exams of Business Economics

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SECTION 3: BUSINESS MARKETING –

Competitive Marke

(CHAPTER 11 ()Ch)- 11 Instructor Video)

Section 3 and Section 4 make up the Business Marketing assessment.

¥ Business Marketing content is 24% of course assessment.

¥ Section 3 includes chapters 11, 12, 13. [11.1 – 11.8 of chapter 11] [12.3 and 12.6 of

chapter 12] [13.1 –

¥ Section 4 includes chapters 12 and 13. [12.1 – 12.7 of chapter 12] [13.7 of chapter 13]

Lesson 1 –

¥ Evaluate the effectiveness of using a relationship marketing campaign

to gain c advantage.

¥ Explain how various factors influence a strategic marketing plan.

¥ Describe marketing research and segmentation.

Read: Chapter 11, Sec@ons 1 1.1–11.8 (pp.279–305) in Contemporary Business.

¥ 11.1 What Is Marke@ng?

¥ 11.2 Evolu@on of the Marke@ng Concept

¥ 11.3 Not-For-Profit and Nontradi@onal Marke@ng

¥ 11.4 Developing a Marke@ng Strategy

¥ 11.5 Marke@ng Research

¥ 11.6 Market Segmenta@on

¥ 11.7 Consumer Behavior

¥ 11.8 Rela@onship Marke@ng

Watch

¥ Video Lecture: 1 1.1 What is Marke@ng?

¥ Video Lecture: 1 1.2 Evolu@on of the Marke@ng Concept

¥ Video Lecture: 1 C 1 o. 3 nsumer Behavior

¥ Video Lecture: 1 1.4 Marke@ng Research

¥ Video Lecture: 1 1.5 Marke@ng Segmenta@on

¥ Video Lecture: 1 1.6 Steps in Building a Marke@ng Strategy

¥ Video Lecture: 1 1.7 Rela@onship Marke@ng

Lesson 2 – within the Section 2-3 Chapter 12 document

Lesson 3 – within the Section 3 Chapter 13 document

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Business Terms

Term Definition

Competitive

advan

t

Refers to the unique strengths and capabilities that allow an organi age outperform its competitors and achieve superior business

perform

Marketing

Activity, set of institutions, and processes for creating,

communica delivering, and exchanging offerings that have

value for customer partners, and society at large.

Marketing

Concept

Companywide consumer orientation to promote long-run

success.

Exchange

Process

Activity in which two or more parties give something of

value to e satisfy perceived needs.

Utility Power of a good or service to satisfy a want or need.

Person

Marketing

Use of efforts designed to attract the attention, interest, and

prefe target market toward a person.

Place

Marketing

Attempt to attract people to a particular area, such as a city,

state

Event

Marketing

Marketing or sponsoring short-term events such as athletic

compe cultural and charitable performances.

Cause

Marketing

Marketing that promotes a cause or social issue, such as

preventing anti-littering efforts, and stop-smoking

campaigns.

Organization

Marke

Marketing strategy that influences consumers to accept

the goals ting

services of, or contribute in some way to an organization.

Environmental

Sca

n

Analysis of external environmental factors by marketers to unders ning impact business and marketing decisions.

Consumer

(B2C) Pr

o G d o u o c d t or service that is purchased by end users.

Business (B2B)

Pro

Good or service purchased to be used, either directly or

indirectly, duct

production of other goods for resale.

Target Market

Group of people toward whom an organization markets its

goods, ideas with a strategy designed to satisfy their

specific needs and p

Marketing Mix

Blending the four elements of marketing strategy—product,

distrib promotion, and pricing—to fit the needs and

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Big Data

Information collected in massive amounts and at

unprecedented s both traditional and digital sources that is

used in business decisio complex structured or

unstructured sets of information that traditi processing

applications are unable to analyze.

Business

Intelligen

Activities and technologies for gathering, storing, and

analyzing da c

better competitive decisions.

Data Mining Computer searches of customer data to detect patterns

and relati

Data

Warehouse

Customer database that allows managers to combine data

from se organizational functions.

Market

Segmentati

o P n rocess of dividing a total market into several relatively

homogene

Geographical

Segmentation

Dividing an overall market into homogeneous groups on

the basis locations.

Demographic

Segmentation

Dividing markets on the basis of various demographic or

socioecono characteristics such as gender, age, income,

occupation, househol family life cycle, education, or ethnic

group.

Psychographic

Segmentation

Dividing consumer markets into groups with similar

attitudes, value lifestyles.

Product-

Related

Segmentatio

n

Dividing consumer markets into groups based on buyers'

relations good or service.

End-Use

Segmentation

Marketing strategy that focuses on the precise way a B2B

purchas product.

Consumer

Behavior

Actions of ultimate consumers directly involved in obtaining,

consum disposing of products and the decision processes that

precede & f

Relationship

Marke

Developing and maintaining long-term, cost-effective

exchange re ting

with partners.

Lifetime Value

of a Customer

Revenues and intangible benefits (referrals and customer

feedback customer over the life of the relationship, minus

the amount the co spend to acquire and serve that

customer.

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importance of their customers.

Today's marketplace is primarily a buyer's market , meaning buyers can choose

from an ab and services.

Screen shot from Instructor Video

Relationship marketing is an organization's attempt to:

¥ Develop long-term, cost-effective links with individual customers for mutual

benefit.

By fostering long-term customer relationships , organizations can:

¥ Enhance loyalty.

¥ Be competitive in the market.

Relationship marketing focus on creating to build a loyal customer base.

¥ Trust

¥ Satisfaction

¥ Personalized experiences.

By identifying current purchasers and maintaining a positive

relationship with them

¥ Efficiently target its best customers.

¥ Fulfill their needs.

¥ Create loyalty.

Customer relationships building techniques:

¥ Information technologies

¥ Frequency programs

¥ Affinity programs

¥ One-on-one efforts

Relationship marketing campaigns have emerged as a powerful strategy to

gain a comp Customers enter into relationships only if there is some benefit to

them.

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Not-for-profit organizations use marketing to:

¥ Obtain Volunteers.

¥ Reach Audience.

¥ Secure Funding (donations).

¥ Make people aware of their existence.

¥ Accomplish overall missions.

Not-for-profit organizations operate in both the public and private sector.

Tables:

¥ NONTRADITIONAL Marketing Types (cyan)

¥ Market RESEARCH (green)

¥ Market STRATEGY (purple)

Frequency

Marketin

Marketing initiative that rewards frequent purchases with

cash, re merchandise, or other premiums.

Affinity

Program

Marketing effort sponsored by an organization that solicits

involveme individuals who share common interests and

activities.

Comarketing Cooperative arrangement in which two businesses jointly

market e products.

Cobranding Cooperative arrangement in which two or more businesses

team up link their names on a single product.

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NONTRADITIONAL Marketing Types: (5 categories)

Type Definition

1. Person

Marketing

Use of efforts designed to attract the attention, interest, and

prefe target market toward a person.

2. Place

Marketing

Attempt to attract people to a particular area, such as a

city, state

3. Event

Marketing

Marketing or sponsoring short-term events such as athletic

compe cultural and charitable performances.

4. Cause

Marketing

Marketing that promotes a cause or social issue, such as

preventing anti-littering efforts, and stop-smoking

campaigns.

5. Organization

Marketing

Marketing strategy that influences consumers to accept

the goals services of, or contribute in some way to an

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Data

Analysis

Types of Data Analysis:

¥ Causal analysis – the field of experimental design

and statisti to establishing cause and effect.

¥ Predictive analysis - the process of using data to

forecast futu (uses data analysis, machine learning,

artificial intelligence, an models to find patterns)

¥ Prescriptive analysis – analyze data and content to

recomme course of action or strategy moving forward.

¥ Diagnostic analysis – examines data to understand

the root ca events, behaviors, and outcomes.

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Market STRATEGY

Concept Summary

Marketing Marketing is the activity, set of institutions, and processes

for crea communicating, delivering, and exchanging offerings

that have value customers, clients, partners, and society at

large.

The marketing concept refers to a companywide

customer orienta objective of achieving long-run success.

Exchange Process – a ctivity in which two or more parties

give so to each other to satisfy perceived needs.

The marketing concept focuses on , rather than

simpl selling goods and services.

¥ The satisfaction of customers

¥ Building long-term relationships with them

¥ Through several channels including the Internet and

social me

Utility is the power of a good or service to satisfy a want or

need.

Marketing creates time, place, and ownership utility

by making available when and where consumers want to

buy and by arranging transfers of ownership.

Marketing Strategy – is needed to meet organizational

objectives.

¥ Marketing is more than just advertising.

¥ It is the complete process of how we bring our products

to ma make them available to our customers.

Marketing Strategies Development Process

includes:

Step 1. Study and analyzing the overall market and

selecting a targ Step 2. Developing a marketing mix to

satisfy the chosen market

Strategic marketing plans are influenced by:

¥ Macro- and micro-environmental factors

¥ Macro – big and broad

¥ Micro – small and specific

Environmental Scanning helps a manager understand

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3. Psychographic – behavioral and lifestyle

profiles.

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Target

Market

Target Market is the group of people toward whom an

organizatio goods, services, or ideas with a strategy

designed to satisfy their sp and preferences.

Business-to-

Cons (B2C)

uConsumer Product is a good or service that is purchased

by end u

Consumer Markets criteria:

1. Geographical – location
2. Demographic – age and family size.

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Screen shot from instructor video

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Business-to-

Busin (B2C)

Business Product Is a good or service purchased to be

used, eithe indirectly, in the production of other goods for

resale.

(It is cheaper and

easier to

establish

relationships with

a new business)

Business Markets segmentation:

1. Geographical – where are they located.
2. Customer-based specifications – what features

do they ne

3. End user applications – how the product is

utilized.

Screen shot from instructor video

Segmentation Market Segmentation is the process of dividing a total

market into relatively homogeneous groups.

Market Segmentation enables:

¥ Personalized offerings

¥ Resource allocation

Consumer Market Segmentation categories:

¥ Geographical segmentation – dividing market

basis of thei

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Lifetime

Value of

Customer

a The lifetime value of a customer incorporates:

¥ The revenues and intangible benefits from the

customer over the relationship with a company

¥ Minus the amount the company must spend to acquire

and se customer.