Marketing Foundations: Definitions, Strategies, and Consumer Insights

Posted on Aug 9, 2025 in Business Administration and Management (BAM)

Defining Customer Value

Value is defined as the relationship of benefits to costs, representing what the consumer gets for what they give.

The 4 P’s of Marketing Mix

Define each of the 4 P’s of marketing (the marketing mix) and provide an example of each:

  • Product: Creating value (goods vs. services). Example: A smartphone (good) or a haircut (service).
  • Price: Capturing value (money, time, and energy). Example: Setting a competitive price for a new software subscription.
  • Place: Delivering the value proposition. Example: Selling products through online stores and physical retail outlets.
  • Promotion: Communicating the value proposition. Example: Running a social media advertising campaign.

Macro Strategies for Customer Value Development

List and define the three macro strategies for developing customer value, and describe the characteristics of each strategy:

  • Operational Excellence: Focus on efficient operations and excellent supply chain management. Characteristic: Aims for ‘good enough’ quality at competitive prices.
  • Customer Intimacy: Focus on retaining loyal customers and excellent customer service. Characteristic: Tailors offerings to be ‘just right’ for individual customers.
  • Product Leadership: Focus on achieving high-quality products. Characteristic: Strives for continuous innovation, believing products are ‘never good enough’ and can always be improved.

Phases of the Marketing Plan

What are the three phases of the marketing plan? List and define them:

  • The Planning Phase: Defines the vision and evaluates internal and external factors of the organization.
  • The Implementation Phase: Evaluates different opportunities using the 4 P’s (Product, Price, Place, Promotion).
  • The Control Phase: Evaluates the performance of the marketing strategy using marketing metrics.

Segmentation, Targeting, and Positioning (STP)

Define segmentation, targeting, and positioning:

  • Segmentation: The process of dividing a market into groups of consumers who respond similarly to a firm’s marketing efforts.
  • Targeting: The process of evaluating each market segment’s attractiveness and deciding which segment(s) to pursue.
  • Positioning: The process of defining the marketing mix variables (4 P’s) so that target customers have a clear understanding of what the product does in comparison with competing products.

BCG Product Portfolio Analysis Categories

List and define each of the categories of the BCG product portfolio analysis:

  • Stars: Products that operate in high-growth markets and have high market shares.
  • Cash Cows: Products that operate in low-growth markets but have high market shares. They generate excess resources that can be invested into other products.
  • Question Marks: Products that appear in high-growth markets but have relatively low market shares. They require significant investment to maintain and increase market share.
  • Dogs: Products that operate in low-growth markets and have low market shares. They should typically be phased out.

The 4 E’s of Social Media Marketing

List, define, and provide an example of the 4 E’s of social media:

  • Excite: Making a relevant offer to the customer. Example: Offering personalized discounts or exclusive content.
  • Educate: Selling the product’s value and offered benefits. Example: Creating informative blog posts or video tutorials about product features.
  • Experience: Providing information about a firm’s goods and services and simulating real experiences. Example: Using virtual reality tours for real estate or interactive product demos.
  • Engage: Positively engaging consumers to foster loyalty and profitability. Example: Responding to comments and messages, running contests, or encouraging user-generated content.

Social Responsibility: Pros and Cons for Firms

What are two pros and two cons that firms must consider when deciding to be socially responsible?

  • Pros: It’s the right thing to do; prevents fines and legal issues.
  • Cons: May reduce potential profits; business executives might spend shareholder money on environmental initiatives.

Understanding Regional Culture

What are some examples of regional culture?

Regional culture refers to variations in customs, language, and behaviors across different geographic areas. Example: The debate over whether to call a carbonated beverage ‘coke,’ ‘soda,’ or ‘pop’ depending on the region.

Characteristics of Generational Cohorts

List and discuss the four main generational cohorts and their characteristics:

  • Silent Generation: Loyalty, respect for authority, and sacrifice.
  • Baby Boomers: Idealism, hard work, and long hours.
  • Generation X: Self-reliance, motivation by money, and a craving for security.
  • Generation Y (Millennials): Immediacy, confidence, and social connection.

Key Social Trends in Marketing

List and describe three of the social trends discussed in class:

  • Price Sensitivity: Consumers’ heightened awareness and responsiveness to price, often influenced by economic events like the Great Recession.
  • Health and Wellness Concerns: A growing focus on healthy living, driven by issues such as the ‘Fast Food Nation’ phenomenon and the obesity epidemic.
  • Time-Poor Society: The increasing demand for quick and convenient solutions due to busy lifestyles.

The Five Steps of the Consumer Decision Process

What are the five steps in the consumer decision process?

  • Need Recognition
  • Information Search
  • Alternative Evaluation
  • Purchase
  • Post-Purchase Behavior

Internal vs. External Information Search

Describe the processes that a consumer goes through when conducting an internal search for information and an external search for information.

When conducting an internal search, a consumer retrieves information from their own memory, drawing upon past experiences and knowledge. An external search involves seeking information from outside sources, such as the internet, friends, family, or product reviews.

Defining Universal, Retrieval, and Evoked Sets

Define universal set, retrieval set, and evoked set:

  • Universal Set: Comprises all possible brands or product choices available in the market.
  • Retrieval Set: Includes all brands that a consumer can readily recall from memory.
  • Evoked Set: Consists of the brands from the retrieval set that a consumer would actually consider purchasing.

Compensatory and Non-Compensatory Decision Rules

Define and provide an example of compensatory decision rules and non-compensatory decision rules:

  • Compensatory Decision Rules: Occur when a consumer trades off one product characteristic against another. Example: Choosing a less expensive laptop even if it has slightly lower processing power.
  • Non-Compensatory Decision Rules: Involve selecting a product based on a single, overriding characteristic, without considering other attributes. Example: Only considering laptops that weigh less than 3 pounds, regardless of other features.

Understanding Cognitive Dissonance

Define cognitive dissonance and provide an example:

Cognitive dissonance is an uncomfortable state produced by an inconsistency between beliefs and behaviors, often referred to as ‘buyer’s remorse.’ Example: Feeling regret after making a large purchase, or experiencing internal conflict after acting against one’s values, such as giving to charity when one believes they should save money.

Temporal State and Consumer Behavior

How can temporal state affect consumer behavior?

A consumer’s temporal state, or momentary mood and physiological conditions, can significantly influence their purchasing decisions. Example: If someone is shopping hungry in a grocery store, they are more likely to buy more food, especially impulse items.