Business 201: Marketing Summarized

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Marketing is the full process of selling goods or services

A well-marketed product inspires people to believe acquiring it will add value, meaning or purpose to their lives more than the sacrifice for it

  • Worth adapting a lifestyle for it
  • Worth identifying with the culture surrounding the product
  • Worth the effort to acquire the product
  • Worth maintaining the product

Products aren’t always tangible or sold for money

  • A job hunter is marketing their skills, time, and energy
  • Making a humanitarian call to action advertises a greater purpose
  • Religious evangelism is trying to sell a theological/philosophical perspective

Marketing consists of four P’s

Product – what are you delivering?

  • Even a service or the feeling of goodwill is a product

Promotion – how are you delivering it?

  • Promotion conveys the product through media

Placement – where is it being delivered?

  • Placement still matters on the internet

Price – what does it cost?

The customer’s decision-making process

Every consumer has a product-seeking cycle

  1. Recognize an unfulfilled need
  2. Search for information that may lead to fulfilling the need
  3. Compare alternatives from gathered information
  4. Purchase or invest into the decision
  5. Respond after purchasing by comparing expectations and reality

People get products for a combination of reasons

  • Basic needs (e.g., food)
  • Replacements (e.g., household items)
  • Urgency or scarcity (e.g., medications)
  • A great value (e.g., a sale)
  • A cause (e.g., bake sale)
  • Name recognition

Multiple factors determine how much a customer is willing to invest

  • Previous experiences
  • Interest in the product
  • Perceived risk of negative consequences
  • The current situation and what it calls for
  • The social visibility of the investment

People only purchase four kinds of products

  • Convenience products which make life easier
  • Shopping products which are staples to a lifestyle
  • Specialty products which appeal to a specific need or want
  • Unsought products which the customer is unaware exists

Customers find meaning in products as candy, vitamins or painkillers

Candy – fun, enjoyable, people can comfortably live without it

  • Beauty through physical improvement
  • Creation in producing something new or original
  • Freedom from living with unwanted constraints
  • Harmony in a balanced relationship to the whole
  • Oneness with things around us
  • Wonder and awe in the presence of something beyond explanation

Vitamins – non-essential but helpful, important but not urgent

  • Accomplishment through attaining goals or status
  • Community from closeness with others
  • Enlightenment by appealing to logic or inspiration
  • Truthfulness through honesty and integrity

Painkillers – solves a painful problem, necessary if someone needs it

  • Duty from fulfilling a responsibility
  • Justice from fairness and equality
  • Redemption through atonement or forgiveness from past failure or decline
  • Security from risks of loss or worry
  • Validation of one’s value and worthiness of being respected

The customer creates meaning through their connection to the product

Interactivity directly contributes to meaning

  • Control – how much they can manipulate the depth of the experience
  • Adaptability – how much they can change the experience
  • Feedback – how the customer receives updates
  • Communication – how much the customer feels heard

Triggers connect to subconscious meanings and risky to start building a brand with

  • Language – highly relative words and phrases that bring thoughts with them
  • Symbols – designs that come through the senses and bring a memory with them
  • Sensations – interpretations of the senses which are too challenging to market with

People create meaning as they observe a product

The product itself

  • Attributes and design of the product and its implications
  • Emotional reaction from the product
  • Price of the product
  • Quality of the product compared any others
  • Where the company made the product (can make it cheaper or inspire loyalty)
  • Use, application, and benefits the products may give the customer
  • The class of the product related to others
  • Past viewing of the product from branding
  • Experience with the product
  • How the company distributes the product

Demographic factors of the potential consumer

  • Age
  • Gender and orientation
  • Income
  • Ethnic groups
  • Family lifestyles
  • Personality
  • Lifestyles and motives
  • Psychographic group (psychological tendencies from the environment)

Geographic location

  • Geodemographics (neighborhood lifestyle categories)

The market environment

  • Personality traits and lifestyles of other product users
  • Other customers’ motivations about the product
  • Why highly important customers like the product
  • Differences from competitors’ products or the global marketplace
  • Technological limitations of the product and its possibility of becoming obsolete
  • Legality of the product, the ability to protect intellectual property, and how much it will cost

Every society shifts its market environment as it progresses from rural to mass-industrialization

Simple Trade Era – people make most of what they consume

  • Luxuries and raw materials sell most in a Simple Trade Era

Industrial Revolution – technological growth, larger scale of products

  • Mass-produced items improve the quality of the product in an Industrial Revolution

Entrepreneurship – multiple companies competing with each other

  • Competing in an Entrepreneurship Era is more important than competence

Production Era – emphasizing lower costs and increased productivity

  • Production Era companies look inward to stay competitive

Marketing Era – creating distinct brands

  • Marketing Era companies must brand to create and satisfy niche markets

Relationship Era – maintaining customers through relationships

  • Relationship Era companies must manage their company image through customer-oriented personnel, emphasized training, social media narrative management, and empowering employees

A lasting marketable product has an original and distinctive competitive advantage which competitors can’t imitate

  • A full competitive cost advantage is impossible without access to the poorest parts of the world

Great marketing uses data from successful marketing research

A. Create a market segment

  1. Select a market or product category to study
  2. Choose a basis or bases for segmenting the market
  3. Select groups to test
  4. Profile and analyze the groups
  5. Choose target markets inside the groups
  6. Design, apply, and maintain appropriate demographic mixes in those target markets

B. Collect secondary data about the target market from the internet and marketing research aggregators

C. Design the research and gather primary data

  • In-person/mail surveys
  • In-home interviews
  • Mail/email/telephone reviews
  • Executive interviews
  • Focus groups

D. Design a questionnaire about what you want to learn

  • Ask what people observe
  • Listen to what the demographics think
  • Watch how the demographics behave in response to product-related stimuli
  • Perform observation research with virtual shopping

E. Experiment with the scientific method

  • Specify the sampling procedures and how close the sampling reflects reality
  • Account for sampling errors or errors from guiding the result
  • Collect and analyze the data
  • Prepare and present a report

F. Follow up the data with a decision support system

  • Let others engage with the process by making it interactive
  • Make the decision support system flexible to allow changes and manipulated data
  • Focus on finding new solutions instead of proven procedures
  • A decision support system should be accessible enough to keep everyone interested informed

A marketing plan must be consistent on all fronts

Breadth of expression

  1. Product – the object itself
  2. Service – the experience of the delivery
  3. Brand – declaration of uniqueness
  4. Channel – how the product gets to the customers
  5. Promotion – how potential customers learn about the product

Duration of experience

  • Initiation – the customer’s first impression from hearing about the product
  • Immersion – the customer’s first direct interaction with the product
  • Conclusion and continuation – the customer’s views as they compare other products

Customers suffer choice overload if they feel they have too many choices, but you can remove it

  • Cut down on the least-selling things, especially if people can’t tell the difference between the products
  • Indicate how consequences of each choice can feel
  • Create more meaningful categories
  • In multiple-question decisions, start with fewer options and progress to sequentially more

Intensity

  • Impulse – the least intense connection with the customer, usually only with low-cost or generic products
  • Habitual – habits from a need for convenience or efficiency
    • Great products create a consumer habit, even when once a month, from high-quality content
  • Engagement (Stickiness Factor) – things that grab customer attention throughout the experience
    • Customers must see the product as unconventional, unexpected, and contrary to prior wisdom

Colors are vital in marketing

Colors create instant judgments which pass the conscious and define what people believe about something seconds after seeing it

  • 85% of buyers choose a product on color alone
  • 93% of buyers care about a product’s visual appearance

Awareness of colors as a consumer can save money from understanding a company’s implied message

Colors provide a type of perceived temperature

Warm Colors (red, orange, yellow, gold, pink)

  • Tend to give an exciting effect
  • Can stimulate hunger, impatience, and aggression
  • Can agitate or overstimulate when used alone and needs other groups to dilute it

Cool Colors (green, blue, purple)

  • Gives a calming effect
  • Can feel cold or impersonal when used alone and needs other groups to feel inclusive

Neutral Colors (white, grey, silver, brown, black)

  • Great for mixing and as a design background
  • Tones down other colors’ intensity
  • Might be boring if not combined with other colors

Some colors have odd sensations tied to them

  • People usually dislike yellow, but the ones who like it are in love with it
  • Depending on its shade, blue can either be highly masculine or highly feminine
  • Black is very bold and polarizing
  • Pink will calm people down after thirty minutes of looking at it

Typical spenders (61% of the people) often prefer pink or sky blue

  • Clothing stores frequently target typical spenders

Cheap spenders (24% of the people) often prefer navy blue and teal

  • Banks and department stores frequently target cheap spenders

Irresponsible spenders (15% of the people) often prefer orange, blue or black

  • Malls, clearance sales, and fast food frequently target irresponsible spenders

Marketing is maintaining a brand

Branding has levels of intensity

  1. Production Orientation focuses on a company’s internal capabilities instead of desires and needs of the marketplace
    • A business has marketing myopia when it defines itself by goods and services instead of benefits customers seek
  2. Sales Orientation focuses on using aggressive sales techniques
  3. Market Orientation focuses on satisfying customer wants and needs
  4. Social Marketing creates company goals to improve society

Product packaging is the most apparent branding

  • The package holds and protects the product, but labeling can also promote it
  • Universal Product Codes (UPCs) can track packages more easily than placing them on the product
  • Packaging can help store and use the product or make it more convenient
  • Packaging can often recycle for ecologically friendly branding

Branding requires a goal behind every design to declare the product’s uniqueness

A. Identify the audience you want to make leads for

B. Make the design a message or story

  • Build your message with the Golden Circle
    • First, WHY something is valuable
    • Next, HOW the value conveys itself
    • Finally, WHAT the product which provides value is
  • Be mindful of your design medium
  • Make consuming the branding a memorable experience
    • Show the product in action
    • Use current social trends in the branding
    • Create interviews or testimonials from reputable or influential people
    • Advertise the helpfulness of the company
    • Show how life is worse without the product
    • Donate your product or merchandise credit as a prize in a competition
    • Publicly speak at events about the product

C. Make something eye-catching and familiar that resonates the message with the target demographic

D. Tailor the product to the medium and send it through all appropriate social channels

  • Social networks (e.g., Facebook, Twitter, Google+)
    • Not everyone wants the product, so don’t follow everyone
    • Increase the volume of posts to fight the deluge of competitors
    • Keep it interesting by adding visual media
  • Media-based social networks (e.g., Pinterest, YouTube, Instagram, Tumblr)
  • Email
    • Don’t over-send emails, or people will unsubscribe
  • News aggregators (e.g., Digg, Reddit)
  • Use an unconventional channel for unconventional leads
    • A rarely used channel for your type of product
    • News you publish on your organization’s website
  • Targeted advertising can appeal to specific or seasonal desires
    • Cold-weather items or hot comfort foods on weather websites which show cold weather
    • Patterns of odd demographics which like particular product combinations

E. Follow up with social media publicity and keep the conversation going

  • Use all possible social media outlets
  • Share photos and videos of everything about the product
    • Since videos are highly personal, use them to connect intimately with the customers
  • Observe positive online reviews and showcase creative or inspiring ones
  • Give social media discounts, sales, and coupons to inspire people to revisit your content
  • Keep running market analysis to find and appeal to demographics who want your product

Brands often repackage with various items, lines, and mixes

Consistent brands are more efficient and seamless to sell and distribute

  • Packages can maintain a uniform feeling across products
  • Brand components can standardize across products

Brands repackage in many ways

  • Focus advertising on specific demographics
  • Modify the product’s quality, function or style
  • Reposition the same product as a completely different brand
  • Create product line extensions
  • Join product lines into one product

Changing brands can implement a variety of large-scale strategies

  • Reach more demographics with a generic or manufacturer’s brand
  • Appeal to a new group with individual or family-oriented brands
  • Co-brand with a separate industry that shares a demographic
  • Create sub-brands or adaptations to a universal brand
  • Develop completely independent region-specific brands

Markets can only expand a few directions

  • Move into a brand new market (market penetration)
  • Improve the current market reputation (market development)
  • Make a better product (product development)
  • Make brand new products (diversification)

Many factors can destroy a brand

A terrible-looking brand

  • Too much visual clutter
  • Doesn’t match the product’s conveyed feeling
  • Customer finds it too boring

Insufficient planning or preparation

  • The brand promises what it can’t deliver
  • Underestimated or unused online marketing opportunities
  • Poorly designed, obsolete or hard-to-navigate website

Inconsistent brand image

People connect the brand to a low-quality product or low-quality content

The organization doesn’t listen to audience input

The brand somehow crosses past feeling uniquely different into feeling offensive

Even with the best possible branding, customers will leave

  • 1% will die
  • 3% physically move out of the product’s influence
  • 5% create new friendships which change their demographic
  • 9% leave for a competitor who more fully satisfies their needs
  • 14% become overly dissatisfied with the product
  • 68% leave from feeling an employee’s indifferent or inappropriate attitude

One-on-one sales is the most intense and personal marketing

Sales is a numbers game

  • If 100 calls provide a lead, every call is another step to that lead
  • Sales staff require high confidence to thrive in constant rejection

Sales is also known as pipeline marketing

  1. Generate leads through connections, advertising, and a variety of other sources
  2. Sift through leads to create prospects who might get the product
  3. Routinely engage with the prospects until they become your client or customer
  4. Treat your clients exceptionally well to maintain your reputation
  5. Create more leads and prospects through referral marketing

Aggressive sales techniques have given sales an unsavory reputation

  • High-pressure sales exploits the social science that people only refuse a product after saying “no” three times
  • Many proven sales tricks often straddle ethical boundaries

Example:
Normally an elite real estate training program like this from tried-and-true experts is worth over ten thousand dollars, but today only you can get the entire training for not $10,000, not $1,000, not even $300! Today only you can get it all for only $183! And, to sweeten the offer, if you call within the next 15 minutes you will also get a free set of Ginsu Knives! A $500 value for free! How will you spend your millions? You’re minutes away from breaking free of the grind and on your way to living the dream—all you need to do is call us at 555-555-555. Call now. There are only five spots left! Our expert advisers are taking calls right now!

A. Exclusivity – “elite real estate training program”

  • An appearance of a unique and prestigious product make customers more likely to participate and spend more on a brand

B. Authority/Power – “tried-and-true experts”

  • Sellers use various techniques to make you believe they have cornered the market on information

C. Comparison – “not $10,000, not $1,000, not even $300”

  • Salespeople embellish differences by placing them side-by-side with something else that implies a drastic change or providing numbers

D. Urgency – “Today only you can get”

  • The more time a customer has to deliberate, the less likely they’ll make a purchase

E. Specificity – “get it all for only $183”

  • Specific numbers imply extensive thought behind the number and no room for negotiation

F. Free – “A $500 value for free”

  • Adding a free bonus gives an illusion of a product’s extra value (over-delivering)
  • Implies they should give back something in return

G. Pleasure Sensation – “How will you spend your millions?”

  • Invokes the customer’s pleasure sensation to feel it before buying it

H. Pain Relief – “breaking free of the grind and you’re on your way”

  • Creates or embellishes pain to make the product feel like a relief from pain

I. Scarcity – “…only five spots left”

  • Combination of Urgency and Exclusivity
  • Artificially increases demand by limiting time or quantity

J. Social Proof – “expert advisers are taking calls right now”

  • Gives psychological confirmation that customers will experience excellent service

K. Confidence – (the general tone)

  • Gives a general image that this person has a reason for their confidence, meaning they may have a legitimate product

Getting new customers costs more than maintaining relationships with current ones

The Customer Relationship Management (CRM) philosophy has mostly replaced the aggressive sales model

  • CRM believes in a give-and-take relationship between the customer and the service provider
  • CRM focuses on win-win through prolonged relationship-building instead of the seller gaining a one-time benefit

CRM’s strength comes from how it builds its network

  • Instead of selling, let others sell for you through their passion for your product
  • Referrals through connections of connections
  • Affiliate marketing can come from associated industry providers who naturally work well alongside your group

Modern-day internet marketing needs a website

Not every industry needs a marketable site, but they can be useful

  • A poorly made website in many industries can be worse than no website

Websites have degrees of complexity

  1. The most basic website conveys information (e.g., this site)
  2. Information becomes user-driven when the site creates a public forum for ideas (e.g., Reddit)
  3. Some sites are almost entirely user-made content (e.g., Wikipedia)
  4. A site with complicated rules to view other users’ content is at the pinnacle of complexity (e.g., any social network)

Online marketing revolves heavily around getting hits (site visits from others)

  • If something becomes wildly popular, it goes viral
  • Not all hits are good
    • Manage complaints proactively and professionally, since a savvy stranger could make them viral
    • Ideally, resolve complaints through an on-site instant messenger service

Many tricks will improve your hit count

When creating the site

  • Advertising your content on official channels bring your keywords more frequently into search results
  • Naturally and seamlessly connect everything with links
  • Add social media sharing buttons to every page
  • The web domain (something.com) should associate to what you’re selling
  • Keep the homepage from clutter by making a separate blog feed page
    • Invite industry experts to contribute to your blog

When posting

  • Grab the reader’s attention with compelling images
    • White text with a black outline can read on any color background
  • Capture the target demographic with a strong and keyword-laden title/header and matching description
  • Use statistically unpopular (long-tail) search words with very particular keywords
  • More verbose and descriptive descriptions show up more frequently in search results
  • Adding a video’s text transcript increases search engine results
  • Make people click on your content more often by doing unconventional things
  • Create many relevant links to other content you want to advertise

Routinely

  • Re-post content on social media
  • Re-post great-quality content with a creative remix
  • Verify everything is visually presentable, links work correctly, and everything conforms to the brand’s image
  • Schedule content posts which show the brand in a new light
  • Re-order links to place the best content first
  • Network with others to link across websites
  • Blog relatively frequently to show search engines the site is still live
    • Stop selling the product and try to solve a problem for the reader
    • Create a community by opening up the end for questions and then answering them

Online marketing is designed both for maintaining a long-term brand and getting people to talk about the product with others in person

Don’t waste time on social channels that don’t speak to your audience

Search engines usually blacklist unethical search engine optimization

  • Trying to manipulate search engine systems guarantees temporary spikes in views
  • High-quality content is more effective at gaining search engine attention

Use offline guerrilla marketing to get site views

  • Leave sticky notes in random places or create temporary images on buildings or cars
  • Write with chalk on sidewalks
  • Leave branded pens at banks or other public places
  • Donate branded bookmarks to a library
  • Give out business cards with the site on it
    • Leave it with a tip
    • Attach it to a public bulletin board
    • Place business cards in library books associated with your business
    • Place a business card in a contest fishbowl

Search engines discourage sites with a high bounce rate (where people visit and then leave a site)

Try more technical tricks like semantic markups or editing meta tags

 Next: Problems With Multi-Level Marketing (MLM)