INEC1810 - Markedsføring Kap 1
Terms in this set (17)
What is marketing?
"The Philosophy of doing business", a set of activities, processes and decisions to create, communicate, and deliver products and services that offer value to customers, partners and society at large.
What are the three levels of marketing?
Strategic, functional and tactical
What is strategic marketing?
A set of proactive decisions to guide the direction of the company. Answers following questions:
1. In which market will we compete?
2. Which segments to target?
3. What value will we offer customers in our segment?
4. What will our competitive position in the marketplace be?
What is functional marketing?
The marketing mix / the four P's
Product, Price, Promotion, Place
What is tactical marketing?
The actual development and implementation of marketing tools
Functional marketing: PRODUCT - what is this about?
Decisions that address the new product development process: develop a stream of products with right set of features to satisfy customer needs
What are some examples of decisions that goes under Product?
* Licensing strategies with potential partners
* Intellectual property rights
* Services provided to increase revenue
* Product name and brand
* Creation of industry standards
* Development of complementary products by partners
What is "Price" about, and what are some examples?
Descisions that estabilish prices for the company's products. Examples:
* Costs of production
* Margins (profit) along distribution channel
* Competititor's prices (pricing relative to a specific firm's market position)
* Customer value
* Total costs
* Prices for product bundles
What is "Promotion" about, & examples?
Decisions that include advertising, sales, personal selling, and public relations / publicity. Examples:
* Media and messaging decisions
* Price deals, trade incentives
* Personnel: recruitment, training, compensating sales people
* PR: garnering favorable trade press, attending trade shows, engaging in cause-related marketing etc.
* Developing strong brand name
* Decisions about timing and focus of new product pre-announcements
* Co-branding decisions with potential business partners
* Using internet and other new media to gain awareness
* Developing extra materials
What is "Place" about, & examples?
Decisions that focus on distribution channels and supply chain management - getting right product to right customers at the right time. Examples:
* Effectively and cost-efficiently meet customer needs
* Can be hard: channel partners can have different objectives
* Margins create conflicts between channel member
* New channels take revenues from existing channels (e.g. internet)
* Good when it's demand-driven
What's the definition of technology?
broad concept, how people use tools and knowledge (usually product of science and engineering) to create solutions to problems
What's the definition of high-technology?
cutting-edge or advanced technology
(this shifts over time)
What's the definition of innovation?
introducing something new, with the intent to either increase value or to solve some problem (not all innovations are high-tech)
What are the three tools used to classify high-tech?
1. Government-based classifications
2. Classifications based on shared industry characteristics
3. Various types of innovations
What are some government-based classifications?
Input-based: number of technical employees, costs of R&D and number of patents (e.g. the ratio as compared to the average)
Output-based: if its output (product) is new/cutting-edge technology, determined by panel of experts
What are the three characteristics of marketing of high-tech products and innovations?
1. Market uncertainty
2. Technological Uncertainty
3. Competitive volatility
What is marketing uncertainty and what are the five sources?
Ambiguity about type and extent of customer needs that can be satisfied by specific technology
1. FUD-factor (consumer fear, uncertainty and doubt) consumers going like eeeeeeh are u sure that'll work cos that looks sketchy
2. Unpredictable customer needs
3. Competing (and often incompatible hahaha) technological standards for new products (2007: Blu ray vs HD-DVD - incompatible for each other lmao) (common industry standard is VERY important and making sure product development centers around that standard)
4. Uncertainty in speed of spread of innovation
5. Uncertainty over speed of adoption: there is a chasm (fissure) that new techs must cross - they have to get from the visionaries to the pragmatists (mainstream market)