100 things to know about MKTNG

Salomón Andión

• Marketing is one of the newest administrative sciences, and implies the process of research, create, communicate and generate value for a product (good, service or idea) in order to position the product in the top of mind of the target and fidelize them.

• Marketing, Sales and Communication are extremely close related, and the three work together in the process of fidelize the customer.

• The framework of marketing is the theory of Phillip Kothler (known as the father of modern marketing. His theory of the 4 p´s involves the areas in which the marketing manager have to pay attention to reach the TOM. The 4 p´s are: Product, Price, Promotion and Place) and the elements of stp and the 5 C

• The Marketing Mix is the Unique blend of the elements involved in the four P´s to create a personalized formula that impulses the positioning of the product.

• The four foundations of Marketing are: – Business Management & Entrepreneurship: understand the basic of business and how to

develop the business plan in order to success in a biz opportunity.– Communication and Interpersonal Skills: create concept, strategies and communication

systems to deliver a persuasive message effectively, that move the target to act and take decision in a determinate way that is useful to my product.

– Economics: understand and influence the economic principles, finance and make grow the business.

– Professional Development: manage the growth of the professionalism into the business environment.

• • The seven Functions of Marketing:

– DISTRIBUTION: – FINANCING– MARKETING INFORMATION MANAGEMENT– PRICING– PRODUCT/SERVICE MANAGEMENT– PROMOTION – SELLING

• The Marketing Concept: a business shoul strive to satisfy customer´s needs, wants and potencialities of the customer fidelizing them while generating profit for the firm.

• Distribution is the process of deciding how to get goods in the customers´hands using logistical assets, Just In Time and integration methods.

• Financing is getting the money necessary to pay for setting up and running a business.

• Marketing Information Management is collecting data about the market, customers and competitors to take accurate decisions in the development of an strategy to reach the target and implant on them a persuasive message

• Pricing is manage the cost and determine the value for the customer to make the operation profitable.

• Product / Service Management is obtaining, developing, maintaining and improving a product in response to market opportunities.

• Promotion: is the effort to inform and persuade and remind the customer about the benefits of the product, using all the communication tools. Promotion is also known as a short term offer that pushes the sales.

• Selling provides customers with the goods and services they want. Include retail (b2c) and b2b. The purpose of selling is create a good experience that satisfy the customer´s expectations while acquiring the product.

• Value is the perception of the utility of a product to the purpose of the customer, and how the product fulfill the desires, needs and potencialities of them, that means how much the customer is in disposition to pay for the product.

• Partner Strategically. Know your audience and go where they are. A local magazine may have a small circulation, but if you’re an education organization and it’s read by teachers, that’s perfect for you.

• Be Smart with your money. You’re a not-for-profit, you should get things for free or heavily discounted. Allow companies to publicly use your name as an organization they support in return.

• Have assets .If someone were to offer you a free advertisement in a magazine or online, would you have something ready to go? You should.

• Have a “call-to-action.” Any ad or message should be telling the audience to do something. Do you want them to volunteer? To donate? To attend an event? Then PERDUADE AND CONVINCE IN ONE PHRASE!

• Be aware of your audience: kow who you’re talking to. When you create an ad or a message, tailor what you say to who you’re speaking with.

• Know when to say “no.” Sometimes a partnership just doesn’t make sense and could actually damage your brand. This is a tough one, but if your gut says no, then go with it.

• Market effectively.Whenever possible, build in metrics to your marketing and ask people how they’ve heard of you. Have statistics and measure of all, remember: if it is not measurable then is not marketing

• Utilize social networks.With things like Facebook and Twitter, you can be your own media platform. Build those groups and keep them engaged with an interesting dialogue, always remember that the feedback have to be listened, and act properly within your own strategy, don´t become a pinball.

• “My world is not the entire world” not everything you think is the same than other likes.

• Never guess, always investigate and take the most accurate decisions.

• Don´t be afraid of fail. The one who have never failed is the one who never did anything

• Write all your ideas, and develop a plan. Don´t trust on your mind. Write, analyze, innovate and develop.

• Never talk about your biz idea before you have developed it and register it. A lot of people is trying to search and stole ideas, and a lot will say you that is impossible. If you don´t try you don´t know. Plan your work, and work your plan.

• - The Business Plan is a detailed document to settle all the aspects of the business opportunity. Is necessary, don´t miss it.

• To create an envolving marcom campaign to your target use the Model of One, reaching them by: mass media, Public Relations, Personal Selling and generating word 2 mouth

• - To persuade quickly use the concept of the Elevator Pitch: is convincing in a short time: use information bullets and key words

• Marketing Framework is the plan to keep your biz working. It analysis and develop strategy tanking in consideration the 5Cs, STP, 4P's

• 5 C: Cost, Communication, Customer, Competitors and Climate

• STP: Segmenting, Targeting and Positioning. • 4 P: Product (quality, durability, packing,

distribution, innovation), place (accessibility, comfort, decoration, style, placing), promotion (communication, offers, add value), price (profitable, according to the utility perceived for the customer)

• Define your target: direct marketing will be a success or not is who you target your direct marketing communications to and how accurate your campaign data is. You simply must do your research and understand who your ideal customers are so your direct marketing will target them effectively. A great way to do this is by looking at the characteristics of customers who have already bought from you – try and find things they have in common and use this information to build up a customer profile you can use to identify potential customers you should be targeting.

• Market Segmentation is a process that consist in divide the total market of a good or service in smaller groups, called nest or niche. A newest way to segment the market is by dividing it following the preferences of the sub culture. A sub culture is a heterogenic group of people who share a similar activity of preference (even if the don’t know each other). Sub cultures can be agrouped by affinity, affiliation, ethnical or age.

• Market Share: is the percentage of participation of your product in comparison with the whole market. By knowing the participation of the product in the market, you can plan how to reposition the brand to amplify the market share of the product.

• Positioning is the design of the offer to the target building a corporate possitive image to settle our brand and product in the buying preference of the consumer.

• To position a product, service or idea in the top of mind of the target, the company first have to decide which position they want, how much of the market share they want to reach and settle the image and marcom strategy.

• The most important issue to position a product is know and persuade about which is the differencial of the product and have a real idea about the customer´s needs, then research what they really want or desire to receive and accomplish the process with the correct distribution system. The consumer generally is willing to receive quality for less, but it depends on the type of target and it´s vision of the social status symbolism that they give to the product. However have always products close to the consumer, if you go out of sock the planning was incorrect.

• Innovation: the concept of innovate in the biz is related with the desires and willing of the market. To innovate the biz must apply I + D + I: investigate, Develop and Innovate, never try to do something new based on perception. Take the necessary time to prepare your innovation thinking out of the boundaries and with a future perspective. If you try to innovate immediately, the margin of mistakes increases.

• The 3 most common Business Model:– Join Venture: the union with other biz is strictly to

develop an specific project, but the accountant and corporate identity remains individually

– Partnership: is the creation of a new biz with participation as stockholders

– Free Development: you take all the risk of the biz

– • SWOT ANALYSIS: is a tool that allows to the manager to

perceive the status of an specific situation in the organization. It help us to have a precise diagnostic to take decisions accurately. Analyzing a list of Strenghts, Weaknesses, Oportunities, Threats help the biz to create an answer to the situation, problema or idea.

• Situation, Problem or Idea:• List of Strenghts• List of Opportunities• List of Weakness• Analyze and answer how the S can defeat W• Analyze and answer how O can be used to reconvert W• List of Threats• Analyze and answer how S can overcome T• Analyze and answer how O can minimize T

• Teamwork: when a team is performing, all the objectives and energy of all the members are putted together to reach the goal. A team is like a good orchestra: it needs a director who knows in detail all the capabilities and potentialities of the members and help them to be in tone; and also all the members knows the potentialities of each other and work with a common sense, sharing and accomplishing the responsabilities.

• Leadership: being a leader is not easy. The leader must take the responsibility for all the aspects involved in realizing the plan. Some styles of leadership are: autocratic, persuasive, delegative, transactional, transforming and strategic. All are useful depending on the momentum of the organization and which is the need of the team.

• Multitask: is the kind of personnel that all organization is willing to have. Being multitasking is an attitude that shows your professionalism. A Multitask person always try to acquire Multiple knowledge, develop its multiple potencialities, is compromised with the organization in multiple ways and that is why multiple doors are open to them because is recognized as a potential leader.

• The steps of the sales process are: Approaching the customer: 3 types of approach are used: greeting approach (break the ice with an effusive greeting generating confidence and good synergy), product approach (focus on solving the needs of the prospect by presenting the characteristics of the product), service approach (being ready to serve and help the prospect).

• Determining needs: learning what the customer is looking for in order to decide what products to show and which product features to present first in the next step of the sale, you must be aware of the body language, behavior, words and attitude of the prospect.

• Presenting the product: educating the customer about the product’s features and focus on benefits that make them think as they already own the product.

• Overcoming objections: learning why the customer is reluctant to buy, providing information to remove that uncertainty, and helping the customer to make a satisfying buying decision. When overcoming objections you must focus on the objection, never take it personal. Be prepared to answer with frequent asked questions, don´t improvise. If the negociation stocks, ask your superior or other member of the team to support and help in the sales process.

• Closing the sale: getting the prospect’s positive agreement to buy. The prospect buy your product when he/she idealize the product as own. Maybe they don´t give you the money immediately, but the desire to have the product will lead them to get the money and buy.

• Suggestion selling: suggesting additional merchandise or services that will save your customer money or help your customer enjoy the original purchase. Is better to make a consumer more profitable than make efforts to get another consumer.

• Relationship building: creating a means of maintaining contact with the customer after the sale is completed. Remember post purchase service, have the contact on data base and keep the consumer informed to convert them into customer. Create confidence and a satisfying buying experience.

• The main types of sales are B2B (biz to biz) and B2C (biz to consumer) in both is important to understand consumer´s preferences and needs, generate add value, create a great service that involves the customer in a pleasant buying experience, use JIT, be effective, always communicate, create data base, practice cold canvassing and approach, research constantly, be aware of what is happening with competitors and innovate.

• Marketing Research: Involves the process and methods used to gather information, analyze it, and report findings related to marketing goods and services. Information obtained through marketing research is used to identify marketing opportunities, solve marketing problems, implement marketing plans, and monitor marketing performance.

• Marketing research is most often to:• Determine consumers’ attitudes and preferences• Test product features• Determine market size and growth potential• Learn about competitive products• Determine buying cycles• Understand how the company is perceived by the public• Before developing a product, marketers can conduct research to

determine the type of product customers want. The research can minimize potential losses when introducing the new product. Consumers accept only on out of every ten new products introduced into the marketplace; therefore, gaining information about consumer likes and dislikes is important.

• Branding: a brand is more than a logo, is the result of tha application of an strategy to reach the TOM and present themselves to the target, and get the objective of customer satisfaction and profit to the company. As strong is the identity of a brand as better will resist the flowing of the changing market. A brand is one of the more valuables positions of the company. A well positioned brand name inspires confidence, means tradition, quality and represent the values of the company. Develop a brand can take years, but each step forward is important.

• BREAKING POINT, or break even is one of the most important things to know when you develop a product, servce or idea. This will help you to know your economical circumstances of your personal accounting and business matters. By knowing wich is your breaking point (is the summatory of cost and expenses), then you´ll fix a correct price to generate profit. Also remember: research before every beginning is to know inside the four Ps in the section of Price to know the costs of everything, distribution, and costs of production, because this is how you begin, with your research analysis of the competitors and everything, it’s all about the money and you should learn what are you going to lose that maybe will not cover the budget you thought.

• • • Take in mind the usual errors that companies usually do like: not make a

deep investigation of their client´s wants and objectives this usually happens when the board of directors only focus on making money but not in how they should do this because a great key of this is being like a shark, to watch and then make the move, other advices will be to find new opportunities, cause everything you can merchandise you just need creativity.

• Know how to sell a product, using key words and being persuasive, fix them in a way you can convince the prospect. You must learn how to express yourself and making a simple thing sounds like the most amazing.

• One advice for your life is to not get stress by the circumstances and try to use that stress to activate your creativity and to find solutions, Necesity is the mother of creativity, don´t get into panic, don´t remain in love with the problem: find a creative solution! But remember to manage your day time. The most important thing is to be in peace with God and yourself, take a time to breath deeply, to enjoy family and friends and get focused in your objectives to work it effectively.

• Measuring the success: the beauty of marketing is that it allows you to track individual customer responses and measure exactly what your campaign achieves – so make sure you get your tracking right and your marketing results are accurate.

• Accurate results will ensure you are able to test and refine your marketing campaigns so you achieve the best response rates you can. Ways of tracking customer responses by direct marketing channel include: a) Telephone, b) Direct Email, c) Telemarketing, d) Email Marketing, be prepared to anwer them, to serve and convince, also be prepared for the visit of your prospect.

• • Return on investment: if there is one thing you must ensure your do as part of

your direct marketing effort, its work out the return on investment (ROI) it generates for your business. There is absolutely no point spending valuable resource and money on direct marketing campaigns if they don’t generate a positive return for you.

• • By tracking your campaign responses accurately, you will be able to work out the

return on investment (ROI) by analyzing how much you spent compared with the revenue generated.

• Working with customers: Never be defensive. If you're having a bad day, it isn't your customer's fault. If your customer is having a bad day they might well consider that is your fault and you need to accept that. Be nice; make their day better, make them feel appreciated, and you'll have a customer who'll come back rather than complain to management and shop elsewhere. Sure, some are people you might never want to serve again, but you don't know what's behind their behavior at that particular time. They might just be horrible people, or could just be having a horrible day. Respond to them as though they're nice people. When they leave the store you can go out the back and scream (quietly) for a while. Get focus on the biz, the product and solve your customer´s needs, never take it personal.

• Marcom Program: is an abbreviation for "marketing communications." Marcom is targeted interaction with customers and prospects using one or more type of media: traditional such as newspapers and magazines, television, radio; E-media, as mailing, fb, tweeter and other social media based on the web, web pages and e- ad; and Non Traditional: billboards, BTL, telemarketing and so more. A marketing communications campaign may use a single approach, but more frequently combines several.

• Ethics and Social Responsibility: Ethics refers to the moral principles or values that generally govern the conduct of an individual or a group. Social responsibility is an ethical ideology or theory that an entity, be it an organization or individual, has an obligation to act to benefit society at large. Social responsibility is a duty every individual or organization has to perform so as to maintain a balance between the economy and the ecosystem. In Marketing a lie is never allowed. Is you lie to the customer, you can loose your market. The Ethics and Social responsibility of the biz and all the persons who are involved in it, is established in the code of values that are part of the corporate identity.

• Re-positioning: involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market.

• De-positioning involves attempting to change the identity of competing products, relative to the identity of your own product, in the collective minds of the target market.

• The market is dynamic, the biz is too. All kind of biz have always to be in move, reinventing to obtain more participation in the market, the ones that remain the same are called to dead.

•

• THE MERLIN EFFECT: POSITION YOURSELF IN THE FUTURE, AND HAVING IN MIND WHAT YOU WANT IN THE FUTURE, CONSTRUCT YOUR STRATEGY TO REACH YOUR GOALS

• WCS: The method of the worst case scenario allow the managerial team to be prepared for the worst thing that can happen to the biz, market or members of the company. If you are prepared for the worst, and for several types of scenarios, then anything will take you in disadvantage, but if you are always optimistic you may be not prepared for stress situations.

• POTENCIALITY: is a strength that you can develop and improve. The work based on potencialities make the personnel to be involved in the success.

• THE STRATEGY must be: Measurable, realistic, factual (based on facts not suppose), easy to remember, specific, have to settle a time to be accomplished and reachable goal by goal.

• Business Plan: formal document in which is written all the analysis, strategies and inferences of an idea and how to transform it in business. The BP is the compass needle that shows to the entrepreneur if the idea is doable or not.

• Sins of the entrepreneur: fall in love with the idea without measuring consequences, assume and don´t research, think that what he likes is the same to others, mix the business with personal affairs, don´t have control in expenses and cost, work for free.

• THE IDEA OF BIZ: analyze: does my idea have a market? How can I develop my idea better than the competitors? What am I offering to my prospect? Why they should choose me and not others?

• ENVIRONMENTAL SCAN: think about: what is already offer in the market? What the customer really want? Which are the legal requirements? Which is the better way to implement the idea? Which are my prospects? How can I get the information about the prospects (survey, observation, direct research)? Which are my needs to develop the business?

• ANALYZE YOUR PRODUCT: which are the characteristics and advantages of the product I want to offer? Which is my differencial that add value to my product? Which types of costumers will use my product? Once you answer this questions, develop a sales speech with persuasive style, remembering the features, advantages and utility of the product. In your sales speech make your audience feel that they already own the product, make them have a sensorial experience of the benefits.

• Develop a prototype of your product or service and have a pormenorized diary of the cost, expenses, time used, row material, advertising needed and all related in order to really know how to produce and how to keep the control of production.

• ECONOMICAL ANALISYS: take in consideration: breaking point (all the cost and expenses to produce one unit. To calculate it, divide the total of cost and expenses vs the total amount of products produced), distribution channel (how to deliver the product JIT, controlling all the process from asking to delivering), pricing (how much the consumer can pay, be aware of profitability and utility), the POS (point of sales, where you´ll have your product on sale, how and what you need, also which is the cost of maintain a POS for your product), Invoicing and ROI (return on invest).

• CORPORATE IDENTITY: Mission, Vision, Values of the company. Logo, slogan, colors, typography, envelope and advertising for the product. Procedure manual, branding manual, MIS, SIS, ADR, CRM. Organizational Culture and Social Projection of the Company.

• INTERNAL ECONOMIC VIABILITY: Income vs Outgoing, Recovery, Customer Data Base, when and how the sales will be stable (forecast), positioning, advantages and benefits for the investor (partners, bank, private investor, yourself), expected profit for the first 5 years. At this point you´ll know if your biz is doable or not.

• Parts of the Executive Brief for the BP: Introduction, Antecedent, Briefing of the Business and Product, SWOT, Economical projection, warranties, organizational and strategy plan, graphic presentation of the product and envelope, projection of the advertising campaign.

• Three benefits of marketing are new and improved products, lower prices, and added value (utility).

• Utility is the value that the functions of marketing add to a product or service. Five economic utilities are form, place, time, possession, and information

• A market is defined as all people who share similar needs and wants and who have the ability to purchase given products.

• The consumer market consists of consumers who buy goods and services for personal use. The industrial, or business-to-business, market includes businesses that buy products and services for use in their operations.

• A marketing plan is a written document that directs the marketing activities of a company for a specific period of time. The elements of a marketing plan are an executive summary, a situation analysis, marketing goals/objectives, marketing strategies, implementation, evaluation and control, and an appendix.

• Market segmentation classifies people in a given market into smaller groups. Four methods of segmenting a market are demographics, geographics, psychographics, and buying behavior.

• A target market is identified by four factors: demographics, geographics, psychographics, and behavior. Demographics relates to age, gender, income, marital status, and ethnic background. Geographics relates to similarities among people who live in a certain area. Psychographics groups people with similar lifestyles, attitudes, values, and opinions.

• Mass marketing is using a single marketing strategy to reach all customers, while market segmentation allows marketing to specific groups of consumers.

An economy is how a nation chooses to use its resources to produce and distribute goods and services to provide for the needs and wants of its people. The four factors of production are land, labor, capital, and entrepreneurship. Scarcity is the difference between wants and needs and available resources. There are three fundamental economic questions: what will be produced, how it will be produced, and who should get what is produced. Traditional economies rely on tradition to answer the questions. Market economies rely on the market to decide. In command economies, the government answers the three questions. In mixed economies, multiple factors influence the decisions

• The characteristics of a healthy economy are high productivity, stable prices, and low unemployment. Economic indicators such as productivity, gross domestic product (GDP), standard of living, consumer price index (CPI), consumer confidence, and unemployment rates can measure an economy. The key phases of the business cycle are expansion, peak, recession, trough, and recovery. The business cycle affects businesses, consumers, and governments, and they in turn affect business cycles, both domestically and globally.

• Businesses can get involved in international trade through importing, exporting, licensing, contract manufacturing, joint ventures, and foreign direct investments. A global environmental scan analyzes political, economic, socio-cultural, and technological factors. The factors that may affect international business include political stability, foreign laws, infrastructure, taxes, the standard of living, the currency exchange rate, language, etiquette, and the number of Internet users. Global marketing strategy options include globalization, adaptation, and customization of products and promotions

• The world is Globalized! Nations are interdependent because most of them do not produce everything they need. International trade is the exchange of goods and services between nations. When a country imports (buys from other countries) more than it exports (sells to other countries), it has a negative balance of trade, which is also called a trade deficit. When the opposite is true, the country has a trade surplus. Three types of trade barriers are tariffs, quotas, and embargoes.

• The characteristics of a free enterprise system are freedom of ownership, freedom to compete, freedom to make a profit, and freedom to take risks. Price competition involves competing with a lower price, while nonprice competition involves factors other than price, such as special services and an excellent reputation.

• The economic cost of unprofitable businesses includes loss of jobs, loss of revenue to investors and to the government, and increased government costs for social services. The benefits of successful firms include increased employment, better returns for investors, more sales revenue for supporting companies, more tax revenue for the government, higher charitable donations, and more competition. Supply and demand interact to create price. Theory suggests that as prices rise, demand drops. As prices increase, supply increases. The equilibrium point is where the supply and demand curves meet. At that price, consumers are willing to buy the same number of items as suppliers are willing to sell.

• Formal speaking requires organized ideas. Enumeration (listing items in order), generalization with examples, cause and effect, and compare and contrast are four ways to structure ideas. Effective telephone communication requires a pleasant tone of voice, enunciation, and speaking loudly enough for the other person to hear. The speaker should convey all necessary information and be prepared to take a message. Remember to use Elevator Pitch techniques and key words

• Persuasion is used to convince others of the value or importance of an idea or thing – an essential skill in marketing. The simplest and often most effective way to persuade others is to learn their needs and propose a way to fulfill them. The keys to writing persuasive business letters and other messages are knowing your audience, knowing your purpose, and knowing your subject. Thoughts should be organized into an opening paragraph, a persuasive body, and a concluding paragraph.

• Businesses use promotion to inform people about products and services, enhance their public image and reputation, and persuade people their products are valuable. Nonprofit organizations use promotion to educate the public or advocate for change. Promotion is any form of communication a business uses to inform, persuade, or remind people about its products and its image. The five basic categories of promotion are personal selling, advertising, direct marketing, sales promotion, and public relations. Public relations fosters a favorable image about a business, its products, or its policies. Publicity tries to place positive information about a business in the media. It is not advertising because it is free. A sales promotion is a short-term incentive given to encourage consumers to buy a product or service. Sales promotions can be classified either as trade promotions or consumer sales promotions.

• Promotional tie-ins are sales promotional arrangements between one or more retailers or manufacturers. Trade sales promotions are activities that are designed to get support for a product from manufacturers, wholesalers, and retailers. Most of the promotion budget is directed at businesses, rather than consumers. Loyalty marketing programs reward customers for repeatedly patronizing a company

•The main purpose of advertising is to present a message that encourages the customer to buy the product or service or to accept an idea. The different types of advertising media are print media, broadcast media, the Internet, and specialty media. Advertisers choose ad media by asking three questions: 1. Can the media present the product or service and the appropriate business image? 2. Can the desired customers be targeted with the meda? 3. Will the media get the desired response rate?•Media measurement looks at the number of homes or people exposed to an ad and the number of times the audience is exposed to the ad. Cost per thousand exposures (CPM) is a common tool for comparing media. •Looking at circulation figures for print media and diaries and meter data for broadcast media are common techniques for evaluating media. •Media costs vary depending on type of media, geographical location, and audience. •Four common methods of setting a promotional budget are percentage of sales, all you can afford, following the competition, and objective and task

•A channel of distribution is the path a product takes from the producer or manufacturer to the final user. Channel members in the distribution of consumer products are manufacturers/producers, agents, wholesalers, retailers, and consumers. Channel members in the distribution of industrial products are manufacturers/producers, agents, industrial distributors, and industrial users. Manufacturers or producers may choose one or more paths (channels) to distribute products to the final user.•Distribution involves decisions about a product’s physical movement and transfer of ownership from producer to consumer. •Distribution intensity may be exclusive, selective, or intensive. •The Internet has allowed more and more business-to-business (B2B) transactions to happen online. It can provide one-stop shopping and substantial savings for industrial buyers. •Product distribution in a foreign market often requires special planning and adjustment to suit the other country’s culture, but it also allows the opportunity to experiment with different distribution strategies