Marketing Concepts and Strategies
Marketing
Marketing is a discipline that uses a series of tools to add value to brands in ways perceptible to the consumer. The most effective marketing adds value to a brand.
Key Marketing Terms
Market
A market exists at the confluence of supply and demand. It encompasses all actual and potential buyers of a product.
Premium
A premium is the additional price a consumer pays for a particular brand over a lower-priced alternative. Consumers justify paying this difference based on rational or emotional reasons.
Commodity
A commodity describes goods, articles of commerce, or consumption, especially essential items. It is easily replaceable by another product with the same features.
Product Class
A product class is a category encompassing all competing brands within a specific sector. For example, soaps are a different product class than deodorant soaps.
Brand
A brand is a value-added product. It includes the product itself, along with advertising, promotions, merchandising, and other elements that enhance its value.
Brand Identity
Brand identity is strongest when all aspects are consistent and aligned. It is the personality of the brand, distinguished by its attributes.
Value for Money
Value for money refers to a product that offers consumers more benefits for a lower price. For example, quartz watches provide accurate timekeeping at a more affordable price than some other watches.
White Product
A white product is a type of value-for-money product. Consumers perceive that they are getting good value for their money with these products, which offer similar benefits to branded products but at a lower price.
Private Label
A private label product is sold by a supermarket chain under its own brand name.
Own Label
An own label product carries the same brand name as the retail chain where it is sold exclusively.
Attributes
Attributes are characteristics assigned to brands, expressed in language consumers understand.
Perception
Perception is the process by which individuals select, organize, and interpret sensory information to create a meaningful understanding of the world. In marketing, consumer perception is more critical than technical opinions about a product.
Tangible Indicators
Tangible indicators are differences consumers can see, such as packaging shape, design, or a car’s appearance.
Motivators
Motivators are the basic attributes that define the competitive landscape and drive purchasing decisions.
Discriminators
Discriminators are additional attributes that complement motivators. Consumers choose specific brands based on these relevant attributes.
Differential Advantage
A differential advantage exists when a product possesses an attribute highly valued by consumers, and this attribute is not found in competing products.
Ideal Output
The ideal output is an abstract concept that does not exist in its entirety. It serves as a paradigm and a guide for marketers.
Segmentation
Segmentation is the process of dividing the market into smaller groups based on specific characteristics. A market segment is defined by particular variables that differentiate it from other segments.
Types of Marketing
Consumer Product Marketing
Consumer product marketing is the foundation of all other marketing types, with brands as its central focus. Its main categories include food, cosmetics, cleaning products, cigarettes, and cars.
Trade Marketing
Trade marketing targets retailers and uses tools like promotions, treating retailers as consumers.
Industrial Marketing
Unlike consumer marketing, industrial marketing focuses on products used as inputs in other products rather than final consumer goods.
Service Marketing
Service marketing specializes in products that meet specific consumer needs and expectations, such as entertainment and insurance.
Banking Marketing
Banking marketing focuses on the financial sector. Banks rely on a consistent corporate image to support their product offerings. Their revenue comes from interest rate differentials on loans and deposits, as well as fees for services.
Direct Marketing
Direct marketing uses various tools to communicate directly with consumers without relying on mass media. It allows for a more precise impact on the target audience.
International Marketing
International marketing specializes in studying and developing foreign markets. It involves two stages: a research phase to identify elements for an effective action plan and an action phase to implement the plan.
Political Marketing
Political marketing applies mass marketing techniques to political campaigns and propaganda.