The document provides an overview of key marketing concepts. It begins by defining marketing as creating value for customers through satisfying needs and building relationships. It then discusses the marketing process and exchange transactions. Subsequent sections cover the marketing mix of product, price, place, and promotion strategies. The document also discusses segmenting and targeting markets, developing competitive advantages, and creating marketing strategies. It explores concepts such as the consumer decision process, marketing research methods, branding, and promotional tools like advertising.

1. MARKETING OVERVIEW
Prepared by Mark Young
Assistant Professor of Applied Business
University of Alaska Fairbanks Community and Technical College

2. Marketing- set of processes for creating, communicating,
and delivering value to customers and for managing
customer relationships in ways that benefit the
organization and its stakeholders.
Marketing begins with discovering unmet customer needs and
continues with researching the potential market; producing a good
or service capable of satisfying the targeted customers; and
promoting, pricing, and distributing that good or service.
Throughout the entire marketing process, a successful organization
focuses on building customer relationships.
The best marketers not only give consumers what they want but
even anticipate consumers’ needs before those needs surface.
Exchange process- activity in which two or more parties
give something of value to each other to satisfy
perceived needs.
What Is Marketing?

3. Marketing Mix blends the four strategies to fit the
needs and preferences of a specific target market.
→ Product strategy involves the nature of the product and its
package design, brand names, trademarks, and product
image.
→ Distribution strategy ensures that customers receive their
purchases in the proper quantities at the right times and
locations.
→ Promotional strategy blends advertising, personal selling,
sales promotion, and public relations to achieve its goals of
informing, persuading, and influencing purchase decisions.
→ Pricing strategy is setting profitable and justifiable prices for
the firm’s product offerings, sometimes subject to government
scrutiny.
Marketing Mix

4. Segmenting and Targeting Markets

5. (1) people or organizations with
(2) needs or wants, and with
(3) the ability and
(4) the willingness to buy.
A group of people that lacks any one of these
characteristics is not a market.
A MARKET IS...

6. MARKET SEGMENTATION
6
Market
People or organizations with
needs or wants and the ability
and willingness to buy.
Market
Segment
A subgroup of people or
organizations sharing one or more
characteristics that cause them
to have similar product needs.
Market
Segmentation
The process of dividing a market
into meaningful, relatively similar,
identifiable segments or groups.

7. THE CONCEPT OF MARKET
SEGMENTATION
7

8. THE IMPORTANCE OF MARKET
SEGMENTATION
8
 Markets have a variety of product
needs and preferences
 Marketers can better define
customer needs
 Decision makers can define objectives
and allocate resources more accurately

9. CRITERIA FOR SEGMENTATION
9
Substantiality
Segment must be large
enough to warrant a special
marketing mix.
Identifiability
and
Measurability
Segments must be identifiable and
their size measurable.
Accessibility
Members of targeted segments
must be reachable with
marketing mix.

10. BASES FOR SEGMENTING CONSUMER
MARKETS
10
Segmentation
Bases
Characteristics of individuals,
groups, or organizations used
to divide a total market into
segments.
(variables)

11. BASES FOR SEGMENTATION
11
Usage Rate
Benefits Sought
Psychographics
Demographics
Geography

12. STRATEGIES FOR SELECTING TARGET
MARKETS
12
A group of people or
organizations for which an
organization designs,
implements, and maintains a
marketing mix intended to
meet the needs of that group,
resulting in mutually
satisfying exchanges.
Target
Market

13. UNDIFFERENTIATED TARGETING
STRATEGY
13
Undifferentiated
Targeting
Strategy
A marketing approach that
views the market as one big
market with no individual
segments and thus
requires a single
marketing mix.

14. CONCENTRATED TARGETING STRATEGY
14
Concentrated
Targeting Strategy
A strategy used to select one
segment of a market for
targeting marketing efforts.
Niche
One segment of a
market.

15. MULTI-SEGMENT TARGETING STRATEGY
15
A strategy that chooses two or
more well-defined market
segments and develops a
distinct marketing
mix for each.
Multisegment
Targeting
Strategy

16. PRODUCT DIFFERENTIATION
16
Product
Differentiation
A positioning strategy that
some firms use to distinguish
their products from those of
competitors.
Distinctions can be real or
perceived.

17. PERCEPTUAL MAPPING
17
Perceptual
Mapping
A means of displaying or
graphing, in two or more
dimensions, the location of
products, brands, or groups of
products in customers’ minds.

18. PERCEPTUAL MAPPING

19. POSITIONING BASES
19
Attribute
Price and Quality
Use or Application
Product User
Product Class
Competitor
Emotion

20. REPOSITIONING
20
Repositioning
Changing consumers’
perceptions of a brand in relation
to competing brands.

21. STRATEGIC PLANNING
21
Strategic
Planning The managerial process of
creating and maintaining a fit
between the organization’s
objectives and resources and
evolving market opportunities.
The goal is long-term
profitability and growth.

22. STRATEGIC PLANNING
22
Marketing Plan A written document that acts
as a guidebook of marketing
activities for the marketing
manager.

23. WHY WRITE A MARKETING PLAN?
23
 Provides a basis for comparison of actual
and expected performance
 Provides clearly stated activities to work
toward common goals
 Serves as a reference for the success of
future activities
 Provides an examination of the
marketing environment
 Allows entry into the marketplace with awareness

24. DEFINING THE BUSINESS MISSION
 Answers the question,
“What business are we in?”
 Focuses on the market(s)
rather than the good or service
 Strategic Business Units (SBUs) may
also have a mission statement
24

25. MARKETING OBJECTIVE
25
A statement of what is to be
accomplished through
marketing activities.
Marketing
Objective

26. MARKETING OBJECTIVES
26
 Realistic
 Measurable
 Time specific
 Consistent with
and indicate the
organization’s
priorities
“Our objective is to achieve
10 percent dollar market
share in the cat food
market within 12 months of
product introduction.”

27. SWOT ANALYSIS
27
SWOT Analysis
Identifying
internal strengths (S)
and weaknesses (W)
and also examining
external opportunities (O)
and threats (T)

28. SWOT ANALYSIS
28©South-Western College Publishing
S
W
O
T
Things the company does well.
Things the company does not do well.
Conditions in the external environment that
favor strengths.
Conditions in the external environment that
do not relate to existing strengths or favor
areas of current weakness.
Internal
External

29. ENVIRONMENTAL SCANNING
29
Environmental
Scanning
The collection and interpretation
of information about forces,
events, and relationships in the
external environment that may
affect the future of the
organization or the
implementation
of the marketing plan.

30. COMPETITIVE ADVANTAGE
30
Competitive
Advantage
The set of unique features of a
company and its products that
are perceived by the target
market as significant and
superior to the competition.

31. COMPETITIVE ADVANTAGE
31
Niche Strategies
Cost
Product/Service
Differentiation
Types of Competitive
Advantage

32. COST COMPETITIVE ADVANTAGE
32
Cost
Competitive
Advantage
Being the low-cost competitor
in an industry while maintaining
satisfactory profit margins.

33. PRODUCT/SERVICE DIFFERENTIATION
33
Product / Service
Differentiation
Competitive
Advantage
The provision of something
that is unique and valuable
to buyers beyond simply
offering a lower price than
the competition’s.

34. NICHE COMPETITIVE ADVANTAGE
34
Niche
Competitive
Advantage
The advantage achieved when a
firm seeks to target and
effectively serve a small
segment of the market.

35. STRATEGIC ALTERNATIVES
35
Market
Penetration
Market
Development
Product
Development
Diversification
Increase market share among
existing customers
Attract new customers to
existing products
Introduce new products
into new markets
Create new products for
present markets

36. ANSOFF’S STRATEGIC OPPORTUNITY
MATRIX
36
Present Product New Product
New
Market
Market
Penetration
Market
Development
Product
Development
Diversification
Present
Market
http://www.pg.com
Online

37. PORTFOLIO MATRIX
37
Stars
Cash Cows
Problem
Children
Dogs

38. PORTFOLIO MATRIX STRATEGIES
38
Build
Hold
Harvest
Divest

39. MARKETING STRATEGY
39
Marketing
Strategy
The activities of selecting and
describing one or more target
markets and developing and
maintaining a market mix that
will produce mutually
satisfying exchanges with
target markets.

40. TARGET MARKET STRATEGY
 Segment the market based on
groups with similar characteristics
 Analyze the market based on attractiveness
of market segments
 Select one or more target markets
40

41. THE MARKETING MIX
41
Marketing Mix A unique blend of product,
distribution, promotion, and
pricing strategies designed to
produce mutually satisfying
exchanges with a target market.

42. MARKETING MIX: THE “FOUR PS”
42
Price
Promotion
Place
Product

43. Consumer Decision Making

44. CONSUMER BEHAVIOR
44
Consumer
Behavior
Processes a consumer uses to
make purchase decisions, as
well as to use and dispose of
purchased goods or services;
also includes factors that
influence purchase decisions
and the product use.

45. CONSUMER DECISION-MAKING
PROCESS
45
Consumer
Decision-Making
Process
A five-step process used
by consumers when
buying goods or services.

46. CONSUMER DECISION-MAKING
PROCESS
46
Postpurchase
Behavior
Purchase
Evaluation
of Alternatives
Information Search
Need Recognition
Cultural, Social,
Individual and
Psychological
Factors
affect
all steps

47. NEED RECOGNITION
47
Need
Recognition
Result of an imbalance between
actual and desired states.

48. STIMULUS
48
Stimulus Any unit of input affecting
one or more of the
five senses:
sight
smell
taste
touch
hearing

49. COGNITIVE DISSONANCE
49
Cognitive
Dissonance
Inner tension that a
consumer experiences after
recognizing an
inconsistency between
behavior and values or
opinions.

50. Decision Support Systems
and Marketing Research

51. THE ROLE OF MARKETING RESEARCH
51
Marketing
Research
The process of planning,
collecting, and analyzing
data relevant to a marketing
decision.

52. MARKETING RESEARCH STUDIES
52
Products
Advertising
Prices
Packages
Names and Logos
Services
Buying habits
Colors
Uses
Awareness
Familiarity
New concepts
Traffic patterns
Wants
Needs
Politics

53. THE ROLE OF MARKETING RESEARCH
53
Diagnostic
Predictive
Descriptive
 Gathering and presenting
factual statements
 Explaining data
 “What if?”

54. THE MARKETING
RESEARCH PROCESS
Collect
Data
Specify
Sampling
Procedure
Plan Design/
Primary Data
Define
Problem
Analyze
Data
Prepare/
Present
Report
Follow Up
1
2
3
4
5
6
7

55. MARKETING RESEARCH
55
Marketing
Research
Problem
Marketing
Research
Objective
Management
Decision
Problem
Determining what information is needed and
how that information can be
obtained efficiently and effectively.
The specific information needed
to solve a marketing research problem;
the objective should provide insightful
decision-making information.
A broad-based problem that
requires marketing research in order
for managers to take proper actions.

56. SECONDARY DATA
56
Secondary
Data
Data previously collected for
any purpose other than the one
at hand.

57. SOURCES OF SECONDARY DATA
57
Government Agencies
Trade and Industry Associations
Business Periodicals
News Media
Internal Corporate Information
Online
http://www.coca-colastore.com

58. PLANNING THE RESEARCH DESIGN
58
Which research
questions
must be answered?
How and when
will data be
gathered?
How will
the data
be analyzed?
?

59. PRIMARY DATA
59
Primary
Data
Information collected for the
first time. Can be used for
solving the particular
problem under investigation.

60. SURVEY RESEARCH
60
Survey Research The most popular technique
for gathering primary data in
which a researcher interacts
with people to obtain facts,
opinions, and attitudes.

61. FORMS OF SURVEY RESEARCH
61
Focus Groups
Executive Interviews
Mail Surveys
Telephone Interviews
Mall Intercept Interviews
In-Home Interviews

62. QUESTIONNAIRE DESIGN
62
Open-Ended
Question
Closed-Ended
Question
Scaled-
Response
Question
An interview question that encourages
an answer phrased in respondent’s
own words.
An interview question that asks
the respondent to make a selection
from a limited list of responses.
A closed-ended question
designed to measure the intensity
of a respondent’s answer.

63. QUESTIONNAIRE DESIGN
63
Clear and concise
No ambiguous language
Unbiased
Reasonable terminology
Only one question
Online
http://www.createsurvey.com

64. OBSERVATION RESEARCH
64
Observation
Research A research method that relies on
three types of observation:
people watching people
people watching an activity
machines watching people

65. OBSERVATIONAL SITUATIONS
Situation
People
watching
people
People
watching
phenomena
Machines
watching
people
Machines
watching
phenomena
Example
Mystery
shoppers in a
supermarket
Observer at
an
intersection
counting
traffic
Video
cameras
recording
behavior
Traffic-
counting
machine
monitoring
traffic flow
65

66. ANALYZING THE DATA
66
Cross-
Tabulation A method of analyzing data that
lets the analyst look at the
responses to one question in
relation to the responses to one or
more other questions.

67. PREPARING AND PRESENTING THE
REPORT
 Concise statement of the research objectives
 Explanation of research design
 Summary of major findings
 Conclusion with recommendations
67

68. Product Concepts

69. WHAT IS A PRODUCT?
69
Product
Everything, both favorable and
unfavorable, that a person
receives in an exchange.
 Tangible Good
 Service
 Idea

70. TYPES OF CONSUMER PRODUCTS
70
Market
Development
Diversification
Increase market share among
existing customers
Attract new customers to
existing products
Introduce new products
into new markets
Create new products for
present markets
Convenience
Product
Shopping
Product
Specialty
Product
Unsought
Product
A relatively inexpensive item that
merits little shopping effort
A product that requires comparison
shopping, because it is usually more
expensive and found in fewer stores
A particular item for which
consumers search extensively and
are reluctant to accept substitutes
A product unknown to the potential
buyer or a known product that the
buyer does not actively seek

71. SERVICE
71
Service
The result of applying human
or mechanical efforts to people
or objects.

72. HOW SERVICES DIFFER FROM GOODS
72
Intangible
Inseparable
Heterogeneous
Perishable

73. PRODUCT ITEMS, LINES, AND MIXES
73
Product Item
Product Line
Product Mix
A specific version of a product
that can be designated as a
distinct offering among an
organization’s products.
A group of closely-related
product items.
All products that an
organization sells.

74. CAMPBELL’S PRODUCT LINES AND MIX
74

75. BRAND
75
Brand
A name, term, symbol, design,
or combination thereof that
identifies a seller’s products
and differentiates them from
competitors’ products.

76. BRANDING
76
Brand
Name
Brand
Mark
Brand
Equity
That part of a brand that can be spoken,
including letters, words, and numbers
The elements of a brand that
cannot be spoken
The value of company and brand names
Global
Brand
A brand where at least 20 percent of the
product is sold outside its home country

77. BENEFITS OF BRANDING
77
Product
Identification
Repeat Sales
New Product
Sales

78. COBRANDING
78
Ingredient
Branding
Cooperative
Branding
Complementary
Branding
Types of
Cobranding
http://www.bose.com
Online

79. FUNCTIONS OF PACKAGING
79
Contain and Protect
Promote
Facilitate Storage, Use,
and Convenience
Facilitate Recycling
Online

80. Marketing Communications and Advertising

81. THE ROLE OF PROMOTION
81
Promotion
Communication by
marketers that informs,
persuades, and reminds
potential buyers of a
product in order to influence
an opinion or elicit a
response.

82. THE ROLE OF PROMOTION
82
Promotional
Strategy
A plan for the optimal use of
the elements of promotion:
 Advertising
 Public Relations
 Sales Promotion
 Personal SellingCompetitive
Advantage

83. THE ROLE OF PROMOTION
IN THE MARKETING MIX
83
Overall Marketing
Objectives
Marketing Mix
• Product
• Place
• Promotion
• Price
Target Market
Promotional Mix
• Advertising
• Public Relations
• Sales Promotion
• Personal Selling
Promotion Plan

84. THE PROMOTIONAL MIX
84
Promotional
Mix
Combination of promotion
tools used to reach the
target market and fulfill the
organization’s overall goals.
 Advertising
 Public Relations
 Sales Promotion
 Personal Selling

85. THE PROMOTIONAL MIX
85
Advertising Impersonal, one-way
mass communication about
a product or organization
that is paid for by a
marketer.

86. ADVERTISING MEDIA
86
Traditional
Advertising Media
New
Advertising Media
 Television
 Radio
 Newspapers
 Magazines
 Books
 Direct mail
 Billboards
 Transit cards
 Internet
 Banner ads
 Viral marketing
 E- mail
 Interactive video

87. PUBLIC RELATIONS
87
Public
Relations
The marketing function that
evaluates public attitudes,
identifies areas within the
organization that the public
may be interested in, and
executes a program of action
to earn public understanding
and acceptance.

88. THE FUNCTION OF PUBLIC RELATIONS
 Maintain a positive image
 Educate the public about the company’s objectives
 Introduce new products
 Support the sales effort
 Generate favorable publicity
88

89. CHARACTERISTICS OF THE ELEMENTS
IN THE PROMOTIONAL MIX
89

90. STAGE IN THE PRODUCT LIFE CYCLE
90
Light
Advertising;
pre-
introduction
publicity
Heavy use of
Advertising;
PR for
awareness;
sales
promotion
for trial
AD/PR
decrease;
limited
sales
promotion;
personal
selling for
distribution
Ads decrease;
sales
promotion;
personal
selling;
reminder &
persuasive
Advertising,
PR, brand
loyalty;
personal
selling for
distribution
Introduction Growth
Maturity
DeclineSales($)
Time

91. GOALS AND TASKS OF PROMOTION
91
Informing Reminding
Persuading
Target
Audience
PLC Stages:
Introduction
Early Growth
PLC Stages:
Growth
Maturity
PLC Stages:
Maturity

92. THE AIDA CONCEPT
92
AIDA Concept
Model that outlines the
process for achieving
promotional goals in terms
of stages of consumer
involvement with the
message.

93. THE AIDA CONCEPT
93
Action
Desire
Interest
Attention Cognitive (thinking)
Affective (feeling)
Conative (doing)
Online

94. INTEGRATED MARKETING
COMMUNICATIONS
94
Integrated
Marketing
Communications
The careful coordination of all
promotional messages to
assure the consistency of
messages at every contact
point where a company meets
the consumer.

95. ALTERNATIVE MEDIA
95
Ads in Movies
Interactive Kiosks
Computer
Screen Savers
Shopping Carts
DVDs
Advertainments
Cell Phone Ads
Subway Tunnel Ads
Floor Ads
Video Game Ads