Outline of marketing explained

The following outline is provided as an overview of and topical guide to marketing:

Marketing  - social and managerial processes by which products, services, and value are exchanged in order to fulfill individuals' or groups' needs and wants. These processes include, but are not limited to, advertising, promotion, distribution, and product management.

Core concepts in marketing

Marketers may sell goods or services directly to consumers, known as business to customer (B2C marketing); commercial organizations (known as business to business marketing or B2B), to government; to not-for-profit organizations (Not-for-profit organization (NFP)) or some combination of any of these.

Actors and relationships

At the center of the marketing framework is the consumer lies the relationship between the consumer and the organization with the implication that marketers must manage the way the organization presents its public face.

The consumer: Typically, the consumer refers to the end-user - but this may be an individual or group such as a household, family unit or organization. In addition, marketers may need to consider the roles of influencers such as Opinion leaders who increasingly use means such as social media to develop customer to customer networks of influence.

The organization: may be represented by many different actors including: various sales personnel: Agent; Broker; Sales representative; Merchant; Retailer; Street vendor or Vendor

Selling situations & relationships: Depending on the nature of the business operations, many different types of actors are involved in a variety of selling situations involving a variety of sales personnel, who perform varied sales roles. Sales activities involve many different types of customer relationships - from simple transactional exchange through to long-term, enduring customer relationships.

Needs, wants and demands

Marketers typically begin planning with a detailed understanding of customer needs and wants.

A need is something required for a healthy life (e.g. food, water, shelter, emotional bonding); A want is a desire, wish or aspiration; When needs or wants are backed by purchasing power, they have the potential to become demands.

Nature of exchange

Exchange, the act of giving or taking one thing of value in return for another is central to marketing activities. Not all exchange involves Financial transactions, but may also involve barter, contra dealing or other form of trade. The object of exchange can include: Goods; services or experiences; concepts or ideas; causes and may even involve celebrity marketing

Perceptions of value

See also: Customer value proposition.

Traditional thinking around the concept of value was that marketers created value through innovation, product design and manufacture and that Utility was embedded in products or services offered for sale. In this type of thinking, marketer's objective was to communicate a value proposition to potential buyers. However, recent thinking has changed the traditional perspective and now recognizes that consumers may participate in the co-creation of value in a variety of ways. Consumers may derive value through usage and experience, known as value-in-use or may be involved in product design, known as participatory design.

Foundation economic concepts

Given that marketing has its roots in economics, it shares many foundation concepts with that discipline. Most practicing marketers will have a working knowledge of basic economic concepts and theories.

Competitive advantages & comparative advantagesBusinesses seek to compete by achieving competitive advantages or comparative advantages. Competitive advantages often focus on reducing costs through achieving one or more of the following: Economies of scope; Economies of scale; Experience effects; First-mover advantages. Alternatively a business may seek to develop uniqueness through product differentiation or developing unique competencies such as market sensing, rapid market response or delivering superior customer value.superior value.
Competition:typesDifferent types of competitive markets can be identified: Duopoly; Monopoly; Monopolistic competition; Imperfect competition; Oligopoly
DemandUnderstanding demand and supply is essential for determining market size and market potential as well as in the price-setting function.

The basic mechanics of consumer demand include: Demand curve; Demand-led growth; Demand response; Law of demand; Law of supply; Transaction costs.

Different types of demand functions include: Derived demand; Inverse demand function.

Economic systemsIn Western economies, the capitalist economy dominates. However, other types of economic systems such as barter economies and the Sharing economy can be identified.
Markets
ValueValue-in-ownershipValue-in-use

Switching

Planning levels and planning tools

Planning levels

Marketing planning is just one facet of the overall company's planning. Marketing plans must therefore take their guidance from the overall strategic plan or business plan. Most companies produce both a strategic plan and a managerial plan (also known as an operational plan). The distinction between strategic planning and management planning is that they are two phases with different goals.

Strategic planning is fundamentally concerned with the policies that will improve the firm's competitive position. Strategic planning is sometimes called higher-order planning and is usually long-term planning (say 3–7 years) while management planning is short-term and may be carried out for a specific program (e.g. a sales or advertising campaign of a few weeks duration) or carried out annually. Strategic plans typically include a statement of the firm's vision and mission. The Marketing strategy is a plan that shows how the firm's marketing activities will help to achieve the overall strategic goals.

Marketing management is focused on developing the marketing program or Marketing mix (also known as the 4Ps) and is concerned with the implementation of specific action plans designed to achieve objective, measurable targets (SMART objectives). Marketing management plans are typically prepared on an annual planning cycle, but may be prepared for shorter periods for special events such as a product launch, a new logo, change to corporate livery or a repositioning campaign.

Strategic planning tools and techniques

Strategic planning requires sophisticated research and analysis to document the firm's current situation as well as to identify opportunities with the potential to be developed.

Strategic research methods

Strategic research is primarily concerned with the identification of new business opportunities and threats, which derive from the external operating environment. Accordingly, strategic analysts rely less on traditional market research methods. Instead, they use methods such as: Environmental scanning;[1] Marketing intelligence (also known as competitive intelligence)[2] and Futures research[3]

Strategic analysis methods

Marketers draw on a very wide variety of techniques and tools when analyzing the market and the broader operating conditions. The technique selected depends on the nature of the situation or problem to be investigated and the analyst's skill and experience. Strategic analysts employ some 200 different quantitative and qualitative analytical techniques including:[4]

Brand Development Index (BDI)

Category development index (CDI);[5] Brand/ Category penetration;[6] Benchmarking;[7] Blind spot analysis;[8] Functional capability and resource analysis;[9] Impact analysis;[10] Counterfactual analysis;[11] Demand analysis;[12] Emerging Issues Analysis;[13] Experience curve analysis;[14] Gap analysis;[15] impact analysis;[16] se Analysis (also known as Porter's five forces analysis);[17] Management profiling; Market segmentation analysis;[18] Market share analysis; Market Segmentation analysis;[19] Perceptual mapping;[20] PEST analysis or its variants including PESTLE, STEEPLED and STEER; Portfolio analysis, such as BCG growth-share matrix or GE business screen matrix;[21] Positioning analysis; Precursor Analysis or Evolutionary analysis;[22] Product life cycle analysis and S-curve analysis (also known as technology life cycle or hype cycle analysis); Product evolutionary cycle analysis;[23] Scenario analysis;[24] Segment Share Analysis; Situation analysis;[25] Strategic Group Analysis;[26] SWOT analysis;[27] Trend Analysis;[28] Value chain analysis[29]

Marketing strategies

See main article: Strategic marketing.

Growth strategies

See main article: Growth platforms.

Marketing warfare strategies

See main article: Marketing warfare strategies.

Implementation and control

Implementations and control is an important feature of the planning process. From time to time, marketers will use appropriate measures of performance to gauge whether plans are achieving the desired results. If necessary, corrective action can be taken to get back on track.

Branches of Marketing

The book titled, The Marketing Book, 7th ed., Routledge, Oxon, UK, 2016 edited by Michael J. Baker and Susan Hart identifies the distinct branches of marketing practice as:

For a more detailed breakdown of the relevant topics for each of these key branches of marketing, see Branches of Marketing: Detailed Topics on this page. For special applications of marketing including marketing of specific types of products (e.g. agricultural marketing, faith based marketing, pharmaceutical marketing, political marketing, sports marketing, etc.,) or marketing to specific target groups (e.g. marketing to children, marketing to older people, LBGT marketing) see: Special applications of marketing practice).

Marketing orientations

Marketing orientations are the philosophies or mindsets that guide and shape marketing planning and marketing practice. Some marketing historians believe that different philosophies have informed marketing practice at different times in marketing's history. Although there is no real agreement amongst scholars about the precise nature or number of distinct marketing orientations, the most commonly cited include:

also known as the Selling orientation (also see sections: Selling orientation or Sales orientation)

The marketing management framework

See main article: Marketing management.

Marketing planning or the process of developing a marketing program requires a detailed understanding of the marketing framework including Consumer behavior; Market segmentation and Marketing research. In the process of understanding the consumer market to be served, marketers may need to consider such issues as:

Consumer basics

Consumer decision-making

See main article: Buyer decision processes.

The main steps in the consumer's purchase decision process are:Need or problem recognition → Information search → Evaluation of alternatives → Product/Brand Choice → Post purchase evaluation

Influences on consumer decision-making

Consumers purchase decisions are influenced by a range of internal and external factors including:

Internal influences

Beliefs; Demographics; Aspirational age; Aspirational Brand; Culture; Learning; Motivation; Opinion leaders; Risk perception and Loss aversion; Needs; Social class; Values

External influences

Family; Reference groups; Subculture; Peer group; Pester power; Time

Market research and marketing research

See main article: Marketing research.

See main article: Market research.

Marketing research refers to research activities designed to understand the marketing environment, including competitors, the socio-cultural environment and the politico-legal operating environment. Market research specifically refers to research concerned with understanding the market, that is consumers and is designed to yield actionable customer insights.

Quantitative research methods

Quantitative methods may also be known as Scientific methods.

See main article: Quantitative marketing research.

Qualitative research methods

See main article: Qualitative marketing research.

Specific research tools and techniques

Scale/Questionnaire Design

Sampling

See main article: Sampling (statistics).

Market segmentation and targeting

List of abbreviations for market segments

Market segmentation

See main article: Market segmentation.

Specific approaches to segmenting markets
(a) Segmenting consumer markets

The main bases for segmenting consumer markets include:

(b) Segmenting business or industrial marketsThe main bases for segmenting business or industrial markets include:
Measuring market segment size

Targeting

Proprietary segmentation databases and software

To support, market segmentation analysis marketers may require access to databases with large sample sizes. A number of commercial companies provide such data which typically includes proprietary software designed to interrogate the data and backed by algorithms that support different types of segmentation approaches. These commercial databases are often country or region specifically.Popular geo-demographic segmentation databases include:

Popular psychometric tools include:

Statistical techniques used in segmentation analysis

Marketing management: The marketing program (also known as the marketing mix or the 4 Ps)

The marketing program, also known as the marketing mix or the 4 ps consists of the product, price, place and promotion.

See main article: Marketing mix.

See main article: Marketing management.

Product

See main article: Product management.

See main article: Product (business).

New product development (NPD)

See main article: New product development.

Innovation and New product development are an important part of a firm's long term growth strategy.

The steps in a basic new production development process are:

Idea generation (or Ideation (creative process)) →Concept screening→ Concept testing → Business analysis → Product development → Market testing → Commercialization and may include a Soft launch

The NPD process can be applied to:

Products: New product development; Design

Services: Service innovation; Service design

Environmental goods or services: Eco-innovation; Ecodesign; Lean product development

A recent trend in NPD is the use of participatory design, also known as co-design or co-operative design, which involves stakeholders such as employees or consumers in the design process.

Sources of new product ideas include: Research and development; Consumers or Users; distributors, suppliers or crowdsourcing.

Types of innovation

NPD represents a high risk activity. It requires substantial investment and a list of product failures suggests that the probability of failure is relatively high.

New product adoption and diffusion

In order to develop a superior understanding of how new products are adopted by the market place and the factors that influence adoption rates, marketers often turn to a number of models or theories of the adoption/diffusion process:

Legal protection of new products and brands

New product development, including the design of product features, manufacturing processes, packaging design etc. involves creative work and therefore constitutes intellectual property. A number of different legal avenues are available to protect different types of intellectual property.

Brand management

See main article: Brand and Brand management.

Branding strategies

Brand protection

Packaging and labelling

See main article: Packaging and labelling.

Price

See main article: Pricing.

See main article: Price.

Pricing strategies

See main article: Pricing strategies.

Pricing tactics

Place (distribution)

The following methods are prohibited in most nations:

Promotion (also known as marketing communications or integrated marketing communications (IMC))

See main article: Promotion (marketing).

See main article: Marketing communications.

See main article: Promotional mix.

Elements of the promotional mix

Advertising

Advertising models: How does advertising work?

Advertising research

See main article: Advertising research.

Advertising Media
Award-winning advertising campaigns
Internet

See main article: Internet marketing.

Main types of internet promotion: E-mail spam, e-mail marketing, post-click marketing, Website monetizing, Search engine marketing (SEM), search engine optimization (SEO), Display advertising, * Contextual advertising
  • Internet advertising methods: Advertising methods: Ad filtering, ad serving, central ad server, pop-up ad, contextual advertising, web banner
  • Search engine marketing payment methods: pay per click, click fraud, paid inclusion
  • Internet metrics: Click through rate (CTR), cost per action (CPA), cost per click (CPC), cost per impression (CPI), cost per mille (CPM), effective cost per mille (eCPM)

    • Advertainment

    See main article: Advertainment.

    Direct and digital marketing

    See main article: Direct marketing.

    See main article: digital marketing.

    Personal selling

    See main article: sales.

    See main article: personal selling.

    Sales promotion

    See main article: Sales promotion.

    Public relations

    See main article: Public relations.

    Sponsorship

    See main article: Sponsorship.

    Communications planning

    Measuring communications effects

    The extended marketing mix

    The extended marketing mix is used in the marketing of services, ideas and customer experiences and typically refers to a model of 7 Ps and includes the original 4 Ps plus process, physical evidence and people. Some texts use a model of 8 Ps and include performance level (service quality) as an 8th P.

    Process

    Physical evidence

    People

    Measuring marketing performance: Marketing metrics

    Marketing activities are costly and represent an investment in a company or brand's long term future. With the increased emphasis on accountability, marketers must consider how they measure marketing's performance and communicate that to stakeholders. Various types of metrics that are in widespread use may be classified as:

    Measures of market/ competitive performance

    Measures of advertising and promotional effectiveness

    Measures of brand health

    Customer-oriented measures

    Special topics in marketing

    Branches of Marketing: Detailed topics

    Business Marketing

    See main article: Industrial marketing.

    See main article: Business marketing.

    Environmental marketing

    See main article: environmental marketing.

    International marketing

    See main article: International marketing.

    Relationship marketing

    See main article: Relationship marketing.

    Services Marketing

    See main article: Services marketing.

    Social marketing

    See main article: Social marketing.

    Retailing

    See main article: Retail.

    Types of retailer

    Types of retail outlet and shopping precincts

    Special applications of marketing and promotion

    History

    See main article: History of marketing.

    Influential marketing thinkers

    Trade magazines and academic journals

    Marketing & advertising associations, societies and peak industry associations

    Archives, museums and galleries (dedicated to marketing and/or advertising)

    Marketing education

    External links

    Notes and References

    1. Fahey, L., King, W. R. and Narayanan, V. K., "Environmental scanning and forecasting in strategic planning—The state of the art," Long Range Planning, Vol. 14, No. 1, 1981, pp. 32–39
    2. Fleisher, C. and Bensoussan, B. Strategic and Competitive Intelligence Analysis: Methods & Techniques for Analyzing Business Competition, 2003; Fleisher, C. & Bensoussan, B., Business and Competitive Analysis: Effective Application of New and Classic Methods, 2007; Slater, S. F. and Narver, J. C., "Intelligence Generation and Superior Customer Value," Academy of Marketing Science, Vol. 28, No. 1, 2000, pp. 120–128
    3. Berkhout, F. and Hertin, J., "Foresight futures scenarios: developing and applying a participative strategic planning tool," Greener Management International, Spring 2002, pp. 37+; Skumanich, M. and Silbernagel, M., "Background on Foresighting Methods," Ch. 2 in Foresighting Around the World, Battelle Seattle Research Centre, 1997, e-text, www.seattle.battelle.org
    4. Fleitcher, C. and Bensoussan, B., Strategic and Competitive Analysis: Methods and Techniques for Analyzing Business Competition, Prentice Hall, NJ Prentice Hall, 2002
    5. Farris, p., Bendle, N., Pfeifer, P and Reibstein, D., Marketing Metrics: The Manager's Guide to Measuring Marketing Performance, 3rd edition, [E-book edition], FT Press, 2015, pp 31-35
    6. Farris, P., Bendle, N., Pfeifer, P. and Reibstein, D., Marketing Metrics: The Manager's Guide to Measuring Marketing Performance, [E-book edition], FT Press, 2015, Chapter 2
    7. Vorhiesm D. W. and Morgan, N. A., "Benchmarking Marketing Capabilities for Sustainable Competitive Advantage," Journal of Marketing, Vol. 69. January, 2005, pp. 80–94
    8. Fleisher, C. and Bensoussan, B. Strategic and Competitive Intelligence Analysis: Methods & Techniques for Analyzing Business Competition, 2002
    9. Blanco, S. Caron-Fasan, M. L. and Lesca, H., "Developing Capabilities to Create Collective Intelligence within Organizations," Journal of Competitive Intelligence and Management, Vol. 1, No. 1, pp. 80–92.
    10. Aaker, D. A. and Mills, M. K. Strategic Market Management, Pacific Rim ed., Wiley, pp. 79–81
    11. Booth, C., "Does history matter in strategy? The possibilities and problems of counterfactual analysis", Management Decision, Vol. 41 Issue: 1, 2003, pp. 96–104, https://doi.org/10.1108/00251740310445545
    12. Kadiyali, V., Sudhir, K. and Vithala R. R., "Structural Analysis of Competitive behavior: New Empirical Industrial Organization Methods in Marketing," International Journal of Research in Marketing, Vol. 18, 2001, pp 161–186
    13. Terranova, D., "Navigating by the Stars: Using Futures Methodologies to Create a Preferred Vision for the Workforce, a Case Study" Journal of Futures Studies, Vol. 12, No. 3, 2008, pp. 31–44
    14. Hall, G. and Howell, S., "The Experience Curve from the Economist's Perspective," Strategic Management Journal, Vol. 6, No. 3, 1985, pp 197–212, DOI: 10.1002/smj.4250060302 Online: http://onlinelibrary.wiley.com/doi/10.1002/smj.4250060302/abstract;Schnaars, S.P., Marketing Strategy, The Free Press, 1998, pp 51-59
    15. Farris, P., Bendle, N., Pfeifer, P. and Reibstein, D., Marketing Metrics: The Manager's Guide to Measuring Marketing Performance, [E-book edition], FT Press, 2015, Chapter 1
    16. World Bank, A Users’ Guide to Poverty and Social Impact Analysis, 2003
    17. Aaker, D. A. and Mills, M. K. Strategic Market Management, Pacific Rim ed., Wiley, pp. 139–40; Aaker, D. A. and Mills, M. K. Strategic Market Management, Pacific Rim ed., Wiley, pp. 88–94; Porter, M., "How to Conduct an Industry Analysis," Appendix A in Competitive Strategy, 1981
    18. Dickson, P. R. and Ginter, J. L. "Market Segmentation, Product Differentiation, and Marketing Strategy," Journal of Marketing, Vol. 51, No. 2, 1987, pp. 1–10, DOI: 10.2307/1251125, Stable URL: https://www.jstor.org/stable/1251125
    19. Hunt, S.D. and Arnett, D.B., "Market Segmentation Strategy, Competitive Advantage, and Public Policy: Grounding Segmentation Strategy in Resource-Advantage Theory," Australasian Marketing Journal, Vol. 12, No. 1, 2004, pp 7-25
    20. McDonald, M. and Leppard, J., Marketing By Matrix, 100 Practical Ways to Improve Your Strategic and Tactical Marketing, Lincolnwood, Ill., NTC, 1993
    21. Aaker, D. A. and Mills, M. K. Strategic Market Management, Pacific Rim ed., Wiley, pp. 38–39; Porter, M., Appendix A in Competitive Strategy, NY, Free Press, 1980, pp. 361–376
    22. Foxall, G. R. and Fawn, J. R., "An evolutionary model of technological innovation as a strategic management process," Technovation. Vol. 12, No. 3, 1992, pp. 191–202, https://doi.org/10.1016/0166-4972(92)90035-G
    23. Holak, S. L. and Tang, E., "Advertising’s Effect on the Product Evolutionary Cycle," Journal of Marketing, Vol. 54, July, 1990, p. 20; Lambkin, M. and Day, G. S., "Evolutionary Processes in Competitive Markets: Beyond the Product Life Cycle," Journal of Marketing, Vol. 53, No. 3. pp. 4–20, DOI: 10.2307/1251339, Stable URL: https://www.jstor.org/stable/1251339; Tellis, G. J. and Crawford, C. M. "An Evolutionary Approach to Product Growth Theory," Journal of Marketing, Vol. 45, No. 4, pp. 125–132, DOI: 10.2307/1251480, Stable URL: https://www.jstor.org/stable/1251480
    24. Aaker, D. A. and Mills, M. K. Strategic Market Management, Pacific Rim ed., Wiley, pp. 81–83
    25. West, D., Ford, J. and Ibrahim, E., Strategic Marketing: Creating Competitive Advantage, Oxford, Oxford University Press, 2010, p. 80
    26. West, D., Ford, J. and Ibrahim, E., Strategic Marketing: Creating Competitive Advantage, Oxford, Oxford University Press, 2010, p. 82
    27. Helms, M. M. and Nixon, J., "Exploring SWOT analysis – where are we now?: A review of academic research from the last decade", Journal of Strategy and Management, Vol. 3, No. 3, 2010, pp. 215–251, https://doi.org/10.1108/17554251011064837
    28. Aaker, D. A. and Mills, M. K. Strategic Market Management, Pacific Rim ed., Wiley, 2005, pp. 143–45
    29. Aaker, D. A. and Mills, M. K. Strategic Market Management, Pacific Rim ed., Wiley, pp. 142–43; Porter, M.,Competitive advantage: Creating and Sustaining Superior Performance, cited in Kotler. P., Marketing Management, 2000, p. 44

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