Collaborate on basic marketing concepts and marketing strategies.

In this warm-up, you will practice collaboration skills while learning about basic marketing concepts and marketing strategies. Then, you will use your own experiences to reflect on marketing strategies.

As a field, marketing is often misconceived.

Marshall & Johnston (2019) outline six marketing misconceptions.

Misconception #1: Marketing is all about advertising.

· Reality: Yes, advertising is highly visible by its very nature, but it is not the only way to market to a customer.

Misconception #2: Marketing is all about selling.

· Reality: Personal selling is another form of marketing communication, in addition to advertising, as well as direct marketing, promotions, and other publicity.

Misconception #3: Marketing is all about the sizzle.

· Reality: Successful marketing strategies rely on sophisticated analysis, data, and careful decision making.

Misconception #4: It is unethical and harmful to society.

· Unfortunately, there are examples of unethical practices across all business sectors, and these occurrences are not unique, nor are they inherent to marketing. Acting ethically is a best practice and should be upheld.

Misconception #5: Only marketers market.

· Every one of us has the capacity to practice marketing and is a set of skills that can contribute to personal success in everyday life.

Misconception #6: It is just another cost center in a firm.

· Reality: Marketing should be considered an investment versus an expense. Sound investment in marketing will reap rewards beyond the costs associated with it; it should be an essential component of a firm’s competitive strategy.

Marketing can be thought of as consisting of 4 key components known as the Marketing Mix or 4Ps of Marketing. The 4Ps of marketing are:

· Product

· Price

· Place

· Promotion

It is the mixture or combination of these “ingredients” that are used by one company to gain the competitive advantage over other companies.

Download: 4Ps of Marketing Handout

You may have heard the term value proposition . When identifying the value proposition of a product or service, ask the question, “What benefit does the product / service bring to customers?” A benefit is a type of utility that makes customers want a product / service.

Customer satisfaction means keeping your customers happy with the products / services offered by a company. Customer loyalty and retention. Companies aim to retain customers by keeping them happy. When customers are happy, they will most likely stay loyal. Customer switching occurs when customers are unhappy and change to another company’s product / service. It is simple.

Discuss two reasons that drive customer satisfaction. In other words, why would a customer stay with a brand or choose to leave a brand?

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Price and quality are two reasons that would drive customer satisfaction. Customers might switch from a brand if they find another comparable one with better quality and a cheaper price.

When companies plan their marketing strategies, they begin by looking at their goals, objectives, and then strategies. SWOT analysis is a tool that helps companies assess themselves internally and externally in the market. When conducting a SWOT analysis, companies look at:

· (S)trengths (internal)

· (W)eaknesses (internal)

· (O)pportunities (external)

· (T)hreats (external)

Download: SWOT Analysis Template

When considering marketing strategies, companies consider:

· Big M,which are marketing strategies that drive the overall business.

· Little M, which are marketing strategies that are more tactical or operational.

Marketing strategies can be divided into:

· Market penetration, strategies which involve investing in existing customers and existing products.

· Product development, strategies which involve creating new products for existing customers.

· Market development, strategies which involve expanding the product line into new markets.

· Diversification, strategies which involve developing new products and new markets.

Sustainability for a company involves doing well in the business while doing good for society. A sustainable business doesn’t just follow a single bottom line – profit – but follows a triple bottom line – people, planet, and profit.

Download: Triple Bottom Line Handout

Return to your course in Blackboard where you will write a reflective response addressing the following questions:

As a marketing manager, how does a focus on sustainability inform your tasks and activities? Pick a company / brand you are familiar with and give an example of how the company has incorporated sustainable practices.