MATSEC AM Marketing cheat sheet

Marketing: Core Concepts and Environment

• Marketing is the activity of creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society; it is not equivalent to selling or advertising.

• The marketing mix (4Ps): Product (goods, services, features, branding, packaging), Price (list price, discounts, allowances, credit terms), Place (channels, coverage, locations, inventory, transport), Promotion (advertising, sales promotion, PR, personal selling, direct marketing).

• The extended 7Ps for services adds People, Process and Physical evidence to the 4Ps; services are characterised by intangibility, inseparability, variability and perishability.

• Marketing orientation holds that achieving organisational goals depends on determining the needs and wants of target markets and delivering satisfaction more effectively and efficiently than competitors; it contrasts with production, product and selling orientations.

• The marketing environment comprises the micro-environment (company, suppliers, intermediaries, customers, competitors, publics) and the macro-environment (demographic, economic, natural, technological, political/legal, socio-cultural forces).

• SWOT analysis classifies internal strengths and weaknesses and external opportunities and threats; it is an input to strategy, not a strategy itself.

• The marketing process: understand the marketplace and customer needs; design a customer-driven strategy; construct an integrated marketing programme; build profitable relationships and create customer delight; capture value from customers to create profits and customer equity.

• Customer perceived value = total customer benefit − total customer cost; customer satisfaction = perceived performance relative to buyer expectations; customer lifetime value is the net present value of the profit stream expected from a customer over the relationship.

• PESTLE analysis (Political, Economic, Social, Technological, Legal, Environmental) is a framework for scanning macro-environmental forces that affect marketing decisions.