BUS203 Study Guide

Navigating this Study Guide

Study Guide Structure

In this study guide, the sections in each unit (1a., 1b., etc.) are the learning outcomes of that unit. 

Beneath each learning outcome are:

• questions for you to answer independently;
• a brief summary of the learning outcome topic; and
• and resources related to the learning outcome. 

At the end of each unit, there is also a list of suggested vocabulary words.

How to Use this Study Guide

1. Review the entire course by reading the learning outcome summaries and suggested resources.
2. Test your understanding of the course information by answering questions related to each unit learning outcome and defining and memorizing the vocabulary words at the end of each unit.

By clicking on the gear button on the top right of the screen, you can print the study guide. Then you can make notes, highlight, and underline as you work.

Through reviewing and completing the study guide, you should gain a deeper understanding of each learning outcome in the course and be better prepared for the final exam!

Unit 1: The Definition and Principles of Marketing

1a. Define marketing and explain its function in society

• What are the four components of marketing?
• How do marketers provide value to their customers?
• How would you describe the different eras of marketing over time?

Marketing involves creating a product or service that meets consumers' needs, communicating the benefits to the consumer, getting those products and services to their end-users, and having some kind of exchange or transaction for the offerings.

However, the process must also include some kind of value. Consumers will consider the price of the product, the benefits they receive, and the time and effort they put into the process. Since each consumer has different needs and levels of acceptance, the value received will vary from consumer to consumer.

Throughout time, marketing has evolved from being focused entirely on the product, to focusing on the sales process, to emphasizing the marketing function, to our current era of relationship marketing and customer service.

To review, read What is Marketing?.

1b. Explain the 4 Ps of marketing and how to incorporate the marketing mix into the strategic planning process

• How does the marketing mix enable companies to meet their objectives and goals?
• What are the steps involved in bringing a new product to market?
• What is the evolutionary process of the product life cycle?

The marketing mix is comprised of Product, Price, Place, and Promotion. The integration of these factors into marketing activities enables companies to meet their marketing objectives. The first step in introducing a new product is to generate ideas that could meet consumer needs and provide profit for the organization. Ideas are then screened to determine if they actually meet consumer needs, fit with the company's existing products, image, and other filtering factors. Next, product features are determined, followed by the actual development of the product. Extensive product testing is generally done, with the product launch following. A new product will be evaluated on a regular basis to determine if changes are needed.

The product life cycle includes four stages – introduction, growth, maturity, and decline – that a product may go through over time. Each stage is characterized by different levels of sales, marketing, and growth, with strategies varying throughout. The amount of time spent in each stage can vary from product to product, and not all products will experience each stage.

To review, read The Marketing Mix and Developing and Managing Offerings.

1c. Define advertising and sales

• How would you describe the nature of advertising and the elements of an integrated marketing communications (IMC) strategy?
• How would you explain the communication process?
• What kinds of promotional methods are available to companies?

Advertising is a paid message, by an identified sponsor, that reaches a large group of people at the same time. The message can promote a product or a service and may use a variety of media outlets including traditional avenues such as television, radio, and newspapers, and online and digital outlets such as social media and mobile devices.

An integrated marketing communications strategy seeks to unify the information disseminated among the various media outlets and present a consistent message across all platforms. This helps to create an image for a product or brand and solidify that image in the minds of consumers. Think about brands you are familiar with, such as Disney or Geico. While they use a variety of media outlets to connect with their customers, their image and message are clear.

Sales promotions are activities that go beyond advertising and marketing efforts and encourage consumers to buy a product immediately. Generally, a sales promotion is a short-term activity and may include discounts, coupons, and other incentives. Some of the more common activities include in-store displays, sampling, rebates, contests, BOGOs, and other similar tactics. Consider your own recent purchases. Were they a result of an incentive that motivated you to make the purchase? As you explore this topic, see how you can relate your own consumer behavior to the marketing messages you see and hear.

To review, read Integrated Marketing Communications and the Changing Media Landscape.

1d. Understand the main components included in an organization's strategic marketing plan

• What is the role of marketing in an organization?
• What are the elements of a Marketing Plan? How would you describe them?

Marketing is an integral part of any organization's business activities. The focus should be on meeting the needs of the customer and seeking to communicate product features and benefits in the most efficient and cost-effective manner. Many organizations begin by developing a mission statement that generally states how the company will form relationships with their customers, how they inspire their employees, and how they relate to other stakeholders with whom they interact. Some companies' mission statements, however, focus on the products manufactured by that organization, such as Apple.

After a mission statement has been developed, companies create a Marketing Plan. This document is designed to enable companies to plan their strategies for creating and delivering a product or service that will provide value to customers and other stakeholders. Individual elements of the marketing plan are explored in greater detail throughout the course. However, as a foundation, it is important to become familiar with the contents of a plan. Plans include an exploration of the company's industry and marketplace, the competition, market research, trends, target markets, consumer wants and needs, and the most effective ways of communicating the product's features and benefits.

To review, read What is Marketing?.

Unit 1 Vocabulary

This vocabulary list includes terms that might help you with the review items above and some terms you should be familiar with to be successful in completing the final exam for the course.

Try to think of the reason why each term is included.

• advertising
• communicating
• creating
• decline
• delivering
• exchanging
• growth
• integrated marketing communications
• introduction
• marketing orientation
• maturity
• mission statement
• place
• price
• product
• product development and testing
• product life cycle
• product orientation
• promotion
• promotional mix
• sales orientation
• sales promotions
• service/value era
• the marketing mix
• the marketing plan

Unit 2: Segmenting, Targeting, and Positioning

2a. Define the STP strategy

• Why is market segmentation important?
• What are the differences between target marketing and mass marketing?
• What role does perceptual mapping play in the positioning process?

No one product or service can meet the needs of all consumers. Some consumers will be more interested in your product than others, and not all consumers will be able to afford your product or service. In order to determine the most attractive customer base for a product, companies will divide the population into groups of potential buyers. This process is known as market segmentation. During this process, consumers are grouped by the characteristics that make them most likely to purchase your product or service. Effective marketing strategies to reach these consumers can then be developed.

Target marketing, also known as differentiated marketing, enables a company to focus on select groups of consumers, and to customize products, services, and marketing messages specifically to meet their needs. This can help to streamline the marketing process and more efficiently use marketing dollars. Think about the commercials you see when you watch a television program, and consider how the products being advertised appeal to the people who are viewing that program. In contrast, mass marketing, or undifferentiated marketing, is a way of reaching all consumers in the marketplace. Messages are sent out to as many people as possible with the expectation that some of those viewers will become customers. Advertising during the Super Bowl is a good example of a mass marketing strategy. A wide range of products are advertised during the game, with the expectation that these products will appeal to some of the consumer groups viewing the game.

Product positioning enables a company to determine where their products sit in the minds of consumers relative to the competition in the marketplace. A product can only be perceived as being luxury or low quality if there are other products to compare them with.

A perceptual map places similar products or brands on a grid based on characteristics that are important to consumers. These characteristics can include price, quality, customer service, and other factors that meet consumer needs. By evaluating the brands that are located near a company's own products, the organization can see which brands are their primary competitors and the factors they are competing with. If there are many companies in the same quadrant, the company should seek to compete in other areas where there are fewer competitors.

To review, read Market Segmenting, Targeting, and Positioning.

2b. Identify the place of targeting and positioning in the marketing campaign

• What are the various ways to segment a market?
• What factors make target markets attractive to pursue?
• What kinds of strategies are used to target certain markets?

Markets are segmented in four primary ways. First, consumers can be segmented based on their behavior. This includes the benefits consumers want from a product and the ways they use the product. Demographic segmentation includes consumers' ages, income levels, ethnicity, education, family life cycle, and other measurable factors that define a segment of the population. The geographic location of a consumer group also impacts whether or not a segment is attractive to a marketer. The location also affects the kinds of products and services consumers in an area will desire and purchase. Finally, consumers can be segmented based on psychographic factors, which explore the ways consumers think, what they value, and how they live their lives.

Once target markets have been identified, the next step is to determine if these segments are worth pursuing. It is not enough to segment the market but to also evaluate its value to the company and its brands. The factors that marketers will consider to determine if a market has potential include:

• Size: Is the segment large enough to cover operating costs and still be profitable?
• Growth: Is there potential for an increase in sales over time?
• Entries in the market: Is the market already saturated with many competitors?
• Accessibility: Are there obstacles to reaching the target market such as geography, politics, or technology?
• Resources: Does the company have the resources to compete in the marketplace?
• Fit: Do the products needed by these consumers fit with the company's current product line, mission, and objectives?

Once a company has identified the consumer groups that are most attractive to pursue, they must then decide which of those groups they will actually target.

Companies can choose a multisegment marketing strategy, which entails meeting the needs of different segments of the population. By spreading out their efforts, they can better compete in markets with many players. For example, hotel chains and cruise lines have locations and facilities that each have their own features and benefits, thereby meeting the needs of each consumer segment. By marketing each brand separately, the brands are able to stand apart from the competition.

A concentrated marketing strategy focuses on a select group of consumers. This can be risky since there are no other brands to turn to if there is a slump in the market or changes in consumer shopping behavior. Consider the recent closure of Toys R Us, and the impact online shopping had on the demise of this retailer.

Niche marketing focuses on an even smaller segment of the population, targeting a more select group of consumers. Companies that compete based on this strategy generally have a specific product that is popular among this small segment and have specialty products to meet their needs. An example of this might be a company that manufactures harmonicas, fishing lures, or knitting needles.

Microtargeting takes the segmentation process to an even more narrow level by identifying specific consumers and their characteristics in an attempt to isolate them from other consumers in the marketplace. This strategy may be used during an election in an attempt to appeal to those particular consumers based on factors that may influence their votes.

Global marketing presents a wide range of challenges that are not seen in a domestic targeting strategy. For example, while consumer segments in one market, or country, may be identified by certain factors, consumers in other locations may have completely different needs. These characteristics can be based on cultural factors, political factors, and other elements unique to that country. As a result, companies may manufacture different versions of the same product to meet local needs around the world.

Once a target market has been identified and evaluated, companies will determine the most effective way to position their product relative to the competition. As noted, earlier, much of this positioning process is based on the image consumers have of a brand. Sometimes, though, a company may choose to reposition their brand and compete in other ways in the marketplace. They may choose to select a new target market for their current products, introduce new products that can meet the needs of a new segment of the population, or change the image entirely. This process can be difficult since the brand's image may be ingrained in the minds of the consumer, but it has been done successfully. For example, Marlboro cigarettes, a brand that is identified by the macho image of a cowboy, were originally targeted toward women. A more recent example is Old Spice, which had been known as a brand for older consumers but repositioned their products as being trendy for younger generations.

To review, read Market Segmenting, Targeting, and Positioning.

2c. Identify competitive forces and define ways to develop a competitive analysis

• What are the benefits of conducting a competitive analysis?
• Which elements should be explored in a competitive analysis?
• How would you conduct a competitive analysis?

In order to effectively compete in any industry, it is important to identify and understand the strategies used by the other players in that marketplace. A competitive analysis enables a company to become aware of how they relate to the competition, identify their strengths and weaknesses, and use this information to create barriers to new entries in the marketplace.

Some of the factors organizations should consider when identifying their competition include the attributes of those products and the price point at which those products are sold. The consumer segments targeted by the competition should be identified, as should the ways those products are used by consumers. Other factors to consider include geographic distribution, customer service, and other markets that the company serves.

As previously discussed, developing a perceptual map can be a valuable tool in evaluating a company's position in the marketplace and exploring the competitive environment. Also known as market maps, a perceptual map includes a variety of dimensions brands are defined by. These maps can also identify gaps in the marketplace or a product's deliverables and potential business alliances that may be profitable for the organization.

As an example, a perceptual map for the auto industry might include the degree that a car is practical or sporty, or costly or affordable. When placed on a grid based on how close a particular car meets any of these elements, car companies can learn more about the direct competition they are facing and identify grid areas where new entries might enjoy success.

To review, read Positioning and Market Segmenting, Targeting, and Positioning.

Unit 2 Vocabulary

This vocabulary list includes terms that might help you with the review items above and some terms you should be familiar with to be successful in completing the final exam for the course.

Try to think of the reason why each term is included.

• behavioral segmentation
• competitive analysis
• concentrated marketing
• demographic segmentation
• differentiated marketing
• geographic segmentation
• global marketing
• market segmentation
• mass marketing
• microtargeting
• multisegment marketing
• niche marketing
• perceptual mapping
• psychographic segmentation
• repositioning
• target marketing
• undifferentiated marketing

Unit 3: Customers and Marketing Research

3a. Define business-to-business marketing strategies

• What are the 5 characteristics that define organizational buying processes?
• What different types of purchases are made by organizations?
• What are the 4 different categories of business markets? How do they connect with their stakeholders?
• What is the buying center? What are the roles of its members?
• What are the steps in the business-to-business buying process?

Business-to-business activities are significantly different than business-to-consumer activities. In B2B, the process is focused on the relationships and connections between companies and their suppliers. Companies buy goods and services in large quantities, which makes the buying process much more complex than in the consumer market. Unlike consumer purchases, where only one person may be involved in the decision process, organizational buying behavior is characterized by having many people involved in the decision-making process. Also, in addition to having emotional connections to the decision, there are also quantitative factors that need to be considered including company goals, budgets, and directives. In some companies, there may technical reasons for making a particular purchase, and how the item fits with other elements of the product or service being manufactured. While the consumer process may take a short amount of time, business purchase decisions generally are determined over a long time span. Changes in the industry, the availability of other supplies, and corporate goals can all impact the decision process. Finally, organizations cannot be segmented in the same ways as consumers. Each organization operates independently, with characteristics that are unlike any other companies in the marketplace.

When a company makes a purchase, they face different purchase situations. These include the straight rebuy, where the company simply reorders goods and services they have purchased in the past. A modified rebuy is when a company may seek to make changes to an existing order, renegotiate the price, or change the specifications of the items they purchase. Finally, a new task will require a company to make a purchase for the first time, making it necessary for the company to seek out potential suppliers and their offerings.

Producers are companies that purchase goods and services to make other products. Resellers are companies that sell goods and services produced by other firms. They do not make any changes to these products. Business-to-government sales occur when companies sell to local, state, and federal government agencies. Institutional markets include various nonprofit agencies and organizations and represent large sales opportunities for the companies from whom goods and services are purchased. Consider companies and organizations in each category that you are familiar with. Think about the ways these entities market to their constituents and stakeholders and how that might differ from the activities connected to the consumer market.

Buying centers are groups of people within an organization who are responsible for making purchase decisions. The buying center includes:

• Initiators: Those who first see a need for a product or service
• Users: Those who will actually use the product
• Influencers: Those who may or may not use the product but have some experience or expertise that can impact the purchase decision
• Gatekeepers: Those who are in between the suppliers and the buying center
• Decider: The person who is responsible for making the final purchase decision

The steps in the business-to-business buying process are very similar to that of the consumer buying process. These steps include:

• Need recognition
• Need description
• Supplier search
• Request for proposal (RFP)
• Supplier selection
• Order routine specification
• Post-purchase evaluation

Consider all of the elements involved in business-to-business interactions. Think about companies you are familiar with, and how their relationships with other companies might differ from the relationships they have with their consumer base.

To review, read Organizational Buyer Behavior and Business Buying Behavior.

3b. Define business-to-consumer marketing strategies

• What is the role of marketing channels?
• What is the difference between marketing channels and the supply chain?
• What kinds of marketing channel partners are available to manufacturers?

The marketing channel is the process used by a company to deliver their goods and services to the end-user. The channel members are those entities, also known as partners, that a company uses to transport those goods and services to the consumers. Strong channel members can be extremely profitable for an organization, while weak and ineffective partners can be detrimental to a product's success.

Generally, companies seek to streamline the marketing channel process and use the fewest number of intermediaries possible to bring their products to market. However, each member plays a valuable role in the process and can ultimately provide greater value to the company than they could achieve on their own.

While the marketing channel process explores those entities that can help bring a product from the manufacturer to the end-user, the supply chain process takes a greater look at all of the organizations that play a role in the creation and development of a product or service. This includes the suppliers of raw materials, transport, any technology used to produce a product, and the marketing strategies used to promote the product or service.

There are many avenues companies have available to them to connect their goods and services to the consumer. Wholesalers, or distributors, stock inventories, operate warehouses, offer credit to buyers, and deliver goods to customers. Brokers, or agents, represent one or more manufacturers and serve as negotiators between buyers and producers. Retailers are businesses that purchase products from manufacturers, wholesalers, agents, or distributors and then sell them to consumers.

Supermarkets (grocery stores) offer a wide range of food and household products to consumers. These stores can be in all different price ranges to meet the needs of consumers in their communities or those of niche markets. Consider Whole Foods, which offers organic foods at high price points, and compare this to Kroger in the mid-price range, or Aldi, which offers significant discount pricing.

Convenience stores offer a smaller selection of items than their supermarket counterparts and generally charge higher prices for easy availability.

Specialty stores sell one category of products, offering a wide range of items within that category. Jewelry stores such as Zales or Jared are good examples of this type of channel. High-volume retailers in the specialty store market can put smaller entries into this marketplace out of business and are known as category killers. However, even these large-volume stores are facing serious and significant competition from the online shopping environment.

Department stores, known for their wide variety of merchandise in many categories such as clothing, jewelry, and household items, are seeing tremendous changes in shopper habits that have become significant threats to their existence. As noted earlier, consumers are making more and more online purchases, and the department store model of retail is in danger of becoming extinct.

Superstores, such as large locations for Walmart or Target, are considered major threats, as well, to the traditional department store. Many types of unrelated services may be located in these stores such as nail salons, coffee shops, and restaurants, all with the goal of bringing in more shoppers and generating higher levels of sales.

Warehouse clubs such as Sam's or Costco, require shoppers to pay an annual fee for the privilege of buying goods and services in large quantities at quantity discount prices. However, some research shows that consumers actually spend more at these kinds of stores than they might when shopping at other kinds of retail outlets.

Outlet stores started out as the place to purchase items that did not sell in the main locations for those retailers. Over time, their popularity has resulted in outlets selling merchandise that is manufactured only for those locations but at prices that are lower than their mall or shopping center counterparts.

Pop-up stores have enjoyed increasing popularity. These are temporary stores that may use a kiosk or an actual store location to feature their goods and services for a limited time. The goal is to generate awareness and excitement, but then move on to other marketing channels to connect with consumers. As an example, Caspar, a company that sells mattresses online, has intermittently opened up pop-up stores to meet consumers' needs to sample a mattress before making a purchase.

As mentioned earlier, the growth of online shopping has had a significant impact on all business-to-consumer marketing and sales activities. The convenience of shopping online, coupled with the large variety of merchandise at all price points, has made this an attractive option for many consumers. As a result, businesses will need to continue to seek ways to enhance their online presence to meet the demands of consumers worldwide.

To review, read Using Marketing Channels to Create Value for Customers.

3c. Explain how marketers use demographics

• Which demographic factors define consumers?
• How do gender, age, and stage of life influence purchase decisions?

Demographics include variables such as income, education, gender, age, marital status, culture, and life cycle.

While there are dangers in making generalizations about any segment of the population, some generalities do exist, making it possible for marketers to better target their efforts. For example, men and women tend to have different habits and approaches to shopping, with women being responsible for two-thirds of most household products. Men, on the other hand, account for three-quarters of all alcoholic beverage purchases. Understanding these and other shopping behavior habits can enable marketers to better target their products, services, and promotions to meet consumer and organizational needs.

As people age, and enter different stages of life, their needs and wants change, as well. Purchases made by single people in their 20s and 30s will vary greatly from purchases made by those with families or those who have retired and now have more free time.

Recognizing the impact of these demographic factors can help companies better serve the public's needs, while also ensuring that company operations are profitable.

To review, read How People Make Buying Decisions.

3d. Define and identify research procedures

• What is the difference between primary research and secondary research? What are some sources that would be examples of each?
• What happens during each step in the marketing research process?

Primary research is new and original research that is conducted by an organization or individual. Methods for conducting primary research include surveys (phone, in-person, and online), focus groups, interviews, observations, and experiments. This kind of research can result in valuable information that can enable companies to make decisions based on up-to-date and relevant information. The downside to this approach is that it is quite time-consuming and can be expensive.

Secondary research involves gathering data that has already been gathered by other companies or agencies. Sources of secondary data include newspapers and magazines, organizational publications, government publications, and materials created for other business purposes. These are valuable resources that can be quickly accessed sometimes for little or no cost. However, the information may not be current and may not relate to the issue the company is seeking to resolve.

In any research endeavor, it is important to follow each step in the process to ensure that the right issues are being addressed. The steps in the research process include:

• Define the problem
• Design the research
• Design the data collection format
• Specify the sample population of respondents
• Collect the data
• Analyze the data
• Write the report

Prior to conducting any research, however, it is important to ensure that the right issues and questions are being addressed. For example, if a research project is undertaken based on faulty information or incorrect perceptions about the issue, then the resulting data will be inaccurate and unusable. A good example of this is when the Coca-Cola company introduced New Coke based on research about what kind of taste consumers wanted in their cola beverages. The research was conducted as a result of the Pepsi Challenge, which showed that consumers preferred Pepsi over Coke in blind taste tests. Coke just assumed that consumers would want a cola that tasted more like Pepsi and conducted their research into a new product based on this assumption. Ultimately, New Coke was a disaster and consumers were irate. The company did not consider the connection consumers had with the brand, and while they taste-tested new formulas, they never actually asked consumers if they wanted a new version of Coke.

Consider a problem you might have encountered in the workplace. How would you uncover the data you need to resolve your problem by applying the steps in the marketing research process?

To review, read Marketing Research and Market Intelligence.

3e. Understand the importance of a value proposition

• What are the components of a value proposition?
• Why might a company develop multiple value propositions?

A value proposition explains the key benefits customers will receive from a company's products or services. This statement can also be used to demonstrate a potential employee's benefits to an organization, or why people should make donations to an organization.

The value proposition answers the question of "why?".

While a value proposition may lead to profits for an organization, no mention of these profits is generally included in the statement. The focus is on the benefits to the external market and stakeholders.

Since companies may have different target markets for various products and services, they will likely have different value propositions that are focused on the specific needs of those groups. The value propositions for each group will identify the factors that are most important to those individuals, or groups, and explain the benefits they will receive from buying the company's product or service.

Once a value proposition has been created, the company will then develop strategies that support the proposition. It serves as the guide for how the company will deliver on its promises and meet consumer and organizational needs and objectives.

To review, read Strategic Planning.

Unit 3 Vocabulary

This vocabulary list includes terms that might help you with the review items above and some terms you should be familiar with to be successful in completing the final exam for the course.

Try to think of the reason why each term is included.

• business-to-government sales
• buying centers
• consumer buying behavior
• convenience stores
• decider
• demographics
• department stores
• gatekeepers
• influencers
• initiators
• institutional markets
• marketing channels
• marketing research process
• modified rebuy
• need description
• need recognition
• new task
• online shopping
• order routine specification
• organizational buying process
• outlet stores
• pop-up stores
• post-purchase evaluation
• primary research
• producers
• request for proposal
• resellers
• secondary research
• specialty stores
• straight rebuy
• supermarkets
• superstores
• supplier search
• supplier selection
• supply chain
• users
• value proposition
• warehouse clubs

Unit 4: Life Cycles, Offers, Supply Chains, and Pricing

4a. Explain the product life cycle

• What is the role of the product life cycle in managing and developing new products?
• Which controllable and uncontrollable factors may affect products as they travel through each stage of the product life cycle?

As products progress through their lifespan, they experience predictable sales and profits. These sales levels correspond to the stage where the product has evolved, requiring companies to manage their manufacturing, distribution, and marketing activities according to the needs of each stage. These stages include:

• Product development
• Introduction
• Growth
• Maturity
• Decline

There are many factors that companies can control as their products experience changes in the product life cycle, such as marketing and promotional activities, pricing strategies, distribution and geographic expansion, and product investment. However, there are also factors that a company cannot control. These include economic conditions, competition, technological advances, government regulations, and other external factors.

Being aware of these factors, and having strategies in place to address them will enable companies to better compete in their marketplace and experience higher levels of sales during the growth stage.

Additionally, while some products may spend less time at each stage than others, and some products may not follow this evolution at all, this model can provide companies with a guideline and a systematic approach for managing and developing their products.

To review, read Introducing and Managing the Product.

4b. Explain how offerings are created

• What are the components of an offering?
• What different types of offerings are available to consumers?

An offering is what is delivered to a customer in a way that meets customer needs. These include the product itself and the features inherent in the product. These features deliver benefits to the consumer in a way that satisfies a need or want. An offering also includes the price of the product. In addition to the initial amount of money paid to obtain a product, the price also includes the cost of owning, maintaining, and disposing of the product. This is known as the Total Cost of Ownership (TCO). Finally, offerings also include services. Since services are not tangible like their product counterparts, marketers have greater challenges when distinguishing their offerings from the competition. Consider recent product or service purchases you have made. Identify their offerings and how those elements influenced your decision.

There are four types of offerings marketed to consumers. These include:

• Convenience offerings: Items consumers purchase but do not put much effort into deciding, such as bread or milk.
• Shopping offerings: Items whose brands consumers spend some time comparing before making a purchase. This might include furniture or even toothpaste.
• Specialty offerings: Brands that are differentiated by their features and may be sold through limited channels. These may include cars or appliances.
• Unsought offerings: Goods and services consumers purchase only when they are needed. These may include insurance or towing services.

To review, read Creating Offerings.

4c. Explain how supply chains create value

• What is supply chain management, and how is it used?
• What are the elements of supply chain management? How is each element important?

Supply chain management includes designing, monitoring, and adjusting every aspect of a product from obtaining raw materials, all the way to delivering the product into the hands of the consumer. In addition to ensuring that this process is cost-effective, companies must also make sure that the products they are delivering meet consumer needs in ways that are not being addressed by the competition.

The value chain is an integral part of the process and ensures that each player in the supply chain management process enables the company to provide greater value to their own customers.

There are several important activities of supply chain management. Each makes valuable contributions to the process. These factors include:

• Sourcing: Evaluating and hiring companies to provide goods and services for a business
• Procurement: Purchasing goods and services for a business
• Demand planning: Estimating consumer sales levels of a product or service
• Inventory control: Ensuring a sufficient amount of goods and services to meet consumer needs
• Warehousing: Storing additional items to meet anticipated consumer demand
• Transportation: Physically moving goods from one place to another to make them available for purchase
• Trace and Track: The ability to determine where goods are located at any time in the process
• Reverse logistics: When products are returned to a company, either from suppliers or customers

Each of these steps in the process is quite complex, with many factors that impact their roles and effectiveness.

For more details, and to review, read Using Supply Chains to Create Value for Customers.

4d. Explain different considerations and models in setting a price

• What is the role of price in the product-dominant approach to marketing?
• What are the advantages and disadvantages of the service-dominant approach?

In the early days of manufacturing and marketing, companies considered products, services, and prices to be separate elements. The focus was on producing items for the lowest cost possible and selling them for the lowest price possible. There was no consideration given to consumer needs or the price/value relationship. This approach continued until after the Second World War.

In comparing the value of a good or service, consumers will take many factors into consideration. We compare the features and benefits of an item and the overall cost to purchase that item. We look at the ways an item differs from the competition, how easy or difficult it is for consumers to obtain the item, and what it may take to dispose of the item when it no longer has a use. As noted, the price of an item plays an integral part in the consumer decision-making process, causing manufacturers to carefully consider how to demonstrate the price/value relationship.

To review, read Creating Offerings.

Unit 4 Vocabulary

This vocabulary list includes terms that might help you with the review items above and some terms you should be familiar with to be successful in completing the final exam for the course.

Try to think of the reason why each term is included.

• controllable factors
• convenience offerings
• decline
• demand planning
• growth
• introduction
• inventory control
• maturity
• price offerings
• procurement
• product-dominant approach
• product development
• product life cycle
• product offerings
• reverse logistics
• service-dominant approach
• services offerings
• shopping offerings
• sourcing
• specialty offerings
• supply chain management
• total cost of ownership
• trace and track
• transportation
• uncontrollable factors
• unsought offerings
• value chain
• warehousing

Unit 5: Distribution and Promotion

5a. Identify a number of marketing channels

• What are the four primary marketing channels?
• What options do companies have for direct selling?
• What are the intermediaries in an indirect selling process?
• Can you think of real-world examples of dual distribution?
• What is the difference between reverse channels and more traditional ones?

The primary marketing channels available to companies include:

• Direct selling: The process of getting goods and services to the consumer without selling from a fixed location. This can include one-on-one demonstrations, personal selling, and online sales.
• Indirect selling: Wholesalers or retailers make the product available to the consumer. Goods travel from the producer or manufacturer to an agent, to a wholesaler, to the retailer, who then connects the product to the consumer (final user).
• Dual distribution: Goods and services are sold from a variety of locations and channels. Companies may sell directly to their customers from their own locations or use franchises to reach a wider range of consumers.
• Reverse channels: Goods flow from the consumer back to a beneficiary. This might include items sent for recycling or repurposing, or reselling to others.

To review, read Channel Concepts: Distributing the Product.

5b. Describe a number of ways to evaluate marketing channels

• What are the pros and cons of a direct selling approach?
• Why might companies use intermediaries for indirect selling?

Consumers can benefit greatly from a direct selling approach. A product can be demonstrated, explained, and described to the customer in a way that offers the full focus and attention of the salesperson. Questions can be answered right away, and any concerns or objections can be addressed in detail. On the other hand, since a direct selling approach is one-on-one, it can take time to generate a large number of sales, and not all interactions may result in a purchase. To increase sales levels overall, this process often uses a multi-level marketing model whereby several salespeople are recruited by a manager or sponsor who is paid from their sales as well as from their own.

Intermediaries enable manufacturers to reach a wider range of potential customers. Agents provide access to various wholesalers. These wholesalers are then able to disperse products to larger numbers of retailers. As a result, consumers in many locations now have the ability to purchase a company's goods and services. The downside to this process is that each intermediary along the way must get paid for their services. The more intermediaries involved in the process, the higher the price for the customer, and the lower level of profits for the manufacturer. When determining the number of intermediaries to use in any marketing channel process, a company must conduct a detailed cost/benefit analysis.

In dual distribution, a company uses many outlets to they sell their goods to the public. A company may choose to have company-owned locations as well as franchises, which offer greater exposure. This enables the company to reach many more consumers. However, the downside to this is that company-owned stores may find themselves in conflict with franchise locations, eroding sales of those locations. Many franchisers address this in the contracts they engage in with their franchisees, requiring all locations to be a specified distance from each other.

Reverse channels include recycling or repurposing products, involving only a user and a beneficiary. There is no producer involved. The benefits of this include financial gain from used items and a way for creative individuals or organizations to earn a profit from products that have already been on the market. However, the original producers do not receive any benefits from this channel, even though the products originated from their organization.

To review, read Channel Concepts: Distributing the Product.

5c. Identify and describe distribution outlets

• What are the types of retail distribution channels available to companies?
• What are non-store distribution outlets? What benefits do they offer to companies and consumers?
• What are the functions of a wholesaler?

Retail provides companies with a wide range of options for connecting their goods to their customers. While retail represents a large percentage of overall purchases, the growth of technology has had a significant impact on the retail industry. This has caused many retailers to change their business models, reduce their outlets, or close down their businesses entirely. Traditional retail outlets that are undergoing significant changes include department stores, chain stores, supermarkets, discount and warehouse stores, franchises, and planned shopping centers. Before planning a retail distribution strategy, companies should explore the outlets that they currently use, the outlets used by the competition, and consumer trends in buying behavior.

Non-store retailing provides companies the opportunity to connect with their customers on a more personal level. In-home demonstrations and parties to promote a product are effective ways to reach consumers more casually. Vending machines have seen tremendous growth with products from many product categories including fresh foods, shoes, umbrellas, bicycles, and even cars being sold from a machine. This offers low-cost operations for the company and convenience for the customer.

Catalog sales continue to be a valuable source of revenue for companies. Coupled with online sales, this method has expanded the reach of many organizations, enabling them to integrate one method of distribution with another. This increases company sales while providing speed and ease of ordering for consumers.

Wholesalers are also an important part of the distribution process. Wholesalers receive, store, and package goods, while also keeping track of the merchandise. They are also responsible for ensuring that the flow of goods is a smooth process, by arranging for the transportation of those goods from suppliers to buyers. They may also offer information about those goods, and have personal contact with buyers.

To review, read Channel Concepts: Distributing the Product.

5d. Identify and describe a number of promotion strategies

• What is Integrated Marketing Communications (IMC)?
• Why are advertising, sales promotions, direct marketing, and sponsorships each meaningful strategies for marketers?

An Integrated Marketing Communications strategy provides an opportunity to present a unified and consistent marketing message across all marketing activities. This consistency enables a company to create an image of the company and its products, that will resonate with consumers in the long term.

Advertising enables a company to reach a wide range of consumers all at once. Traditional advertising media includes television, radio, newspapers, magazines, and direct mail. The growth of technology has created new advertising outlets on the internet and on various mobile devices, further expanding a company's ability to connect with consumers on a mass-market scale.

Sales promotions continue to be an attractive way for companies to encourage immediate purchases. These can include discounts, coupons, rebates, contests, giveaways, and other incentives for quick action by consumers.

Direct marketing includes the flyers and brochures consumers receive in the mail. Telephone calls, catalogs, emails, and other messages we receive on a more personal level are all part of this strategy. This approach has been called "junk mail", but marketers do see results from this strategy, and will continue to make this a part of their IMC activities.

When a company sponsors an event or experience, they are able to target a specific segment of the population and demonstrate "goodwill" toward that cause or organization. This helps to create a positive image for the company, and demonstrate their contributions to society.

There is a wide array of promotional activities that are available to companies. Determining which strategy is most effective depends on the product category, the competition in the marketplace, budget, target market, and other marketing factors.

To review, read Advertising.

5e. Explain the role of public relations in marketing

• What is public relations? What are the pros and cons of using it?
• What kinds of public relations tools are available to an organization?

Public relations enables a company, entity, or individual to create a positive image for their publics and their stakeholders. As an integral part of the promotional mix, public relations helps to demonstrate good corporate citizenship and social responsibility and helps build relationships with the public and the media. However, with the growth of social media, companies now have less control over the messages displayed in public forums. Negative comments can be published by almost anyone, with a detrimental impact on the entity being discussed.

A Press Release enables a company to put a positive spin on a story, designed to promote a product, service, or individual. These documents can be distributed by the organization directly, or by a team of Public Relations professionals. A story may gain greater credibility if it comes from a third party. Press Releases can be used to mitigate a crisis or highlight charitable events, awards, company milestones, or contributions to society.

Companies may choose to pay to have their name associated with a line of clothing, an event, a venue, or a cause. Known as sponsorship, this helps a company to enhance its corporate image and gain greater visibility. Examples of this might include a sports arena, clothing worn by an athlete in the public eye, a golf outing, a charitable organization, or a vehicle participating in a road race.

When you see a well-known product in a movie, video, or television program, it is not there by accident. This is called product placement, and companies seek to have their products be a part of popular shows, movies, etc. to gain greater exposure. This form of public relations continues to grow in popularity, and companies aggressively pursue this strategy.

To review, read Public Relations.

5f. Analyze and use social media vehicles to support marketing goals

• What are the benefits of including social media in an IMC strategy?
• What are social media zones? How would you describe them?

A majority of Americans participate in social networks. They use these sites to connect with family and friends, search for employment, and gather information about products and services. Companies that do not have a presence on a variety of platforms will find themselves at a disadvantage relative to the competition. As a result, there is an increase in the allocation of company funds to support social media marketing activities.

To better understand the social media environment, it is helpful to identify various platforms based on the zones they exist in.

Social communities include networking sites such as Facebook, LinkedIn, forums, message boards, and other channels that focus on activities and relationships. People tend to share a great deal of information on these platforms, making it an attractive opportunity for companies to market their products to consumers who have shown the most interest.

Social publishing zones distribute information to different audiences through blogs, media sharing sites, videos, photos, music, and other content. Examples of these sites include YouTube, Flickr, and iTunes. These sites are constantly being updated, and offer marketers insight into the interests, needs, and wants of users. This enables those companies to develop their own content for posting, and appeal to those consumers whose needs match those of the company's offerings.

Social entertainment sites offer users the opportunity to participate in games and puzzles with like-minded individuals. Earlier, we discussed product placement as a marketing channel. The content on social entertainment sites offers a wide range of opportunities for companies to gain greater awareness of their products by having their products and services be part of this content.

Finally, as we have discussed earlier, online shopping and e-commerce have seen tremendous growth over the past several years. The social commerce zone offers interactive shopping experiences for consumers by enabling them to make purchases, sell items, review and rate products and services, and chat with company service representatives. By having a robust e-commerce presence, a company can expand their reach and grow their business.

To review, read Public Relations.

Unit 5 Vocabulary

This vocabulary list includes terms that might help you with the review items above and some terms you should be familiar with to be successful in completing the final exam for the course.

Try to think of the reason why each term is included.

• advertising
• catalog sales
• direct marketing
• direct selling
• dual distribution
• indirect selling
• integrated marketing communications
• marketing channels
• non-store retailing
• online sales
• press release
• product placement
• public relations
• retail distribution channels
• reverse channels
• sales promotions
• social commerce
• social communities
• social entertainment
• social media marketing
• social media zones
• social publishing
• sponsorships
• sponsorships
• wholesalers

Unit 6: Launching a Marketing Campaign

6a. Analyze and explain customer satisfaction factors that affect marketing efforts

• What is customer empowerment? What are its components?
• What are some strategies for delivering on customer expectations?
• What are some strategies for measuring customer satisfaction?
• What are some strategies for handling customer complaints?

For any organization, the main focus should be on meeting the needs of the customer. Enabling customers to be a part of the marketing function makes it easier for the organization to meet their needs and to develop more meaningful messaging.

Customer empowerment is the process that gives consumers channels for providing feedback about products or services and participating in the design of products.

In addition to empowering customers, it is also important to help set and identify customer expectations. If expectations are at too low a level, consumers won't purchase your product. However, if expectations are set too high, there is the possibility that consumers will be disappointed in your product and not make a repeat purchase. By setting a reasonable level of expectations, and then seeking to exceed those expectations, a company can achieve the reputation of overdelivering.

Another strategy for delivering customer expectations is to empower employees to interact with customers. This demonstrates the company's commitment to the customer, and also provides the employee with a greater sense of satisfaction. The combination is a win-win for everyone.

Offering warranties and guarantees is another strategy for ensuring customer satisfaction. This demonstrates that the company stands behind its promises, giving the consumer a greater sense of confidence.

It is important to note that customers may not always be pleased with a product or service and experience post-purchase dissonance, or buyer's remorse. This occurs when a buyer may feel that they did not make a wise choice in their purchase. Reassuring the customer, showing that the company appreciates their business, and alleviating the customers' feelings can help to mitigate this dissatisfaction.

In order to determine whether customers are truly satisfied, it is important to measure their levels of satisfaction. The two main components for measurement are the customer's actual expectations and whether the organization met those expectations. An additional element is the level that the customer says they have been delighted.

When asking survey questions to determine satisfaction levels, it is important to give each question and answer choice a certain level of "weight" to determine the value of each factor. For example, if an airline knows that on-time departure and quick access to luggage are the most important measures of satisfaction for passengers, they may give more emphasis to these elements when seeking passenger feedback.

In spite of all efforts to keep customers happy, there are sure to be complaints along the way. The manner that a company handles those complaints can be the difference between retaining a loyal customer and having a dissatisfied customer share their views with everyone they know.

Strategies for addressing these complaints include:

• Listening to the complaint
• Acknowledging the customer's feelings
• Determining the root cause of the problem
• Offering a solution
• Gaining agreement on the solution and communicating the process of resolution
• Following- up, if appropriate
• Recording the complaint and resolution

Consider a situation where you had a complaint with a company. Did they handle it to your satisfaction? Did they keep you as a customer? If not, what steps should they have taken to more effectively remedy the situation?

To review, read Customer Satisfaction, Loyalty, and Empowerment.

6b. Identify components of global marketing

• Why might a company want a global marketing strategy?
• What are the components of an effective global marketing strategy?

Expanding on a global scale enables a company to accomplish a wide range of organizational goals. First of all, foreign markets each have differing needs. By expanding into these markets a company must seek to find solutions that are unique to these markets and continually innovate and create new products to meet the needs of those consumers. Global expansion also enables an organization to grow and enhance the presence of the brands they offer. Finally, operating on a global scale enables an organization to bring together disparate groups of consumers and company employees and create a greater sense of community.

In order to have an effective global marketing strategy, messages must be customized for each target group. This goes beyond a simple translation of a slogan or tagline. For example, the direct translation of English slogans may not always work in another language. Pepsi's "Come Alive" campaign was translated to mean "Bring Your Ancestors Back From the Dead" in Chinese, and McDonald's original translation for the Big Mac in France came out as "Big Pimp".

Also, imagery for different cultural groups can vary, so companies should be conscious of the images they are projecting. Use technology and other tools that are available to consumers in those markets, and use appropriate music and graphics.

As with all successful strategies, a global strategy should be multifaceted, realistic, and consistent over time. Additionally, goals should be stated, specific marketing activities should be carefully documented, target audiences should be identified, strategies for measuring success should be in place, contingency plans should be noted, and the individuals responsible for carrying out the plans should be selected.

Throughout each of these steps, the cultural and ethnic characteristics of consumers in these markets should be considered throughout. This enables an organization to create a meaningful and effective campaign, while also developing a relationship of trust between the company and its customers.

To review, read Multicultural Marketing.

6c. Explain how to adjust to cultural factors that affect marketing efforts

• Which factors define multicultural marketing?
• What are some strategies for a multicultural marketing mix?
• Why might a company implement multicultural advertising efforts?

Multicultural marketing strategies, also known as ethnic marketing and cross-cultural marketing, include the understanding of a culture's traditions, beliefs, values, norms, language, and religion. When addressing the needs of different ethnic groups in a domestic marketplace, it is important to recognize the role these elements play in their lives and how this may impact their purchase decisions. Consider your own background or ethnicity. How is this reflected in the foods you buy, the rituals you participate in, or the way you dress? Now, think about these factors from the standpoint of a marketer who is seeking your business. In what ways does that marketer deliver their message so that your needs are being met?

For any marketing strategy, the goal is to increase sales and gain a competitive advantage in the marketplace. An effective strategy hinges on the proper marketing mix, also known as the 4 Ps (product, price, place, promotion). When developing a multicultural marketing mix, it is essential to not only understand the demographics and lifestyles of your target market but also the cultural factors that differentiate these consumers from others in the marketplace.

Cultural tastes and preferences impact product choices. The ways people shop may depend on their culture and background. Promotional messages may need to be translated into different languages (keeping in mind that slogans don't always translate directly), and the price consumers are willing to pay for a product or service may also relate to their backgrounds.

Since the overall composition of society includes a diverse group of consumers, marketing efforts to meet the needs of these consumers are essential. However, it is important to recognize that the strategies and messages delivered to these various segments of the population must be specific to their backgrounds, culture, language, and preferences. One size does not fit all, and ads must be relevant and appealing to their target groups. Once marketers understand the lifestyles and psychological factors that impact the purchase behavior of various ethnicities, only then will they be able to create products and services, along with marketing messages, that will be attractive to those consumer groups.

To review, read Multicultural Marketing.

6d. Describe and prepare a comprehensive marketing plan

• Why is the marketing plan important?
• What is the role of the executive summary?
• What is contained in the Market section of a marketing plan?
• What is contained in the Strategy section of a marketing plan?
• What is contained in the Budget section of a marketing plan?

A marketing plan enables executives to set marketing goals for the organization and present an organized strategy for achieving those goals. An effective plan includes realistic expectations for the company and their stakeholders, and seeks to influence others to take steps to ensure the plan's success. A well-written plan will detail specific activities, those who are responsible for carrying out those tasks, and how success will be measured.

An Executive Summary appears at the beginning of the Marketing Plan. It includes a brief paragraph for each section of the report and includes highlights from those sections. This enables the reader to gain an overview of the contents of the complete report and be able to focus on specific areas of interest. While this is the first section to appear, it is the last part of the paper that is written since elements from each section can be placed into the document as they are completed.

In order to ensure that effective strategies are developed, it is important to first understand the market the organization operates in. This includes an evaluation of the industry, in general, the competition the company is facing, the target group of consumers who are most attractive to the organization, and the overall business climate. Within this section, the organization should develop a SWOT analysis, which highlights the company's internal strengths and weaknesses as well as the external threats and opportunities that exist.

Once internal and external factors have been evaluated, the organization can then begin to develop the strategy that will enable them to develop their product, bring it to market, and develop effective marketing messages. This is where the marketing mix (product, price, place, promotion) will be prominent, with an in-depth evaluation of the product itself, the price of the product, the locations where the product will be sold, and the ways the product's features and benefits will be communicated to the public.

When determining a budget in a Marketing Plan, it is important to recognize that this includes more than the money needed to develop a product or service. Budgets should also consider the manpower needed, equipment, manufacturing and office facilities, and the actual resources needed for creating the product or service. Additionally, an examination of the budget might require that company resources be redistributed to enable a new product to be launched or an existing product to be taken to the next level.

A comprehensive Marketing Plan should also include a brief Conclusion that supports the content within the report. This section should clarify the purpose of the report and seek to support the strategies and goals presented.

To review, read The Marketing Plan.

6e. Explain ethical considerations impacting marketers

• Which elements should be in a code of ethics for marketers?
• How can companies gain public trust?

There are many philosophies on what it means to be ethical in life and in business. Generally, ethical behavior means doing what is right. However, this is not always plain or evident, so companies have developed Codes of Ethics describing the behavior that the organization and their employees should follow. When it comes to marketing, these same kinds of ethical behaviors should also be followed. Some of the factors included in this kind of directive include:

• Doing no harm
• Fostering trust in the marketing system.
• Seeking to be honest and truthful at all times
• Supporting product claims
• Seeking to meet the needs of customers
• Being a good corporate citizen

In addition to setting levels of behavior on the part of marketers and their organizations, the public has also made known their thoughts about what it takes for a company to gain their trust.

These include:

• Being open and honest in their business practices
• Exhibiting industry leadership
• Demonstrating quality management
• Showing concern for employees
• Offering quality goods and services
• Demonstrating community involvement

While the advertising and marketing industries have been seen as not always being the most honest and ethical, it is these very methods that communicate ethical practices to the public.

To review, read Business and Marketing Ethics.

Unit 6 Vocabulary

This vocabulary list includes terms that might help you with the review items above and some terms you should be familiar with to be successful in completing the final exam for the course.

Try to think of the reason why each term is included.

• buyer's remorse
• code of ethics
• competition
• customer complaints
• customer empowerment
• customer satisfaction
• ethical behavior
• executive summary
• global marketing strategies
• industry analysis
• marketing plan
• marketing plan budget
• multicultural marketing factors
• multicultural marketing mix
• multicultural marketing strategies
• post-purchase dissonance
• satisfaction measurement
• strategy
• SWOT analysis
• the 4Ps (the marketing mix)
• the market

Unit 7: Social Media Marketing

7a. Understand why a company should use social media

• Why should a company use social media?
• What is the difference between social media and traditional media?
• Why is social media considered two-way communication?

Social media is big and growing. It is a means that enables consumers to use the Internet to communicate with companies and other customers. Unlike traditional media, social media permits two-way communication. Think about social media and how the customer can interact with the brand or message. Social media will often build a relationship with the customer by engaging with the customer on the item purchased or item the customer is interested in purchasing. Many companies use social media as a way to promote their brand.

Today, successful companies incorporate traditional media and social media as part of their communication. The two types of media work together to provide communication to the customer. Communication on social media includes owned, paid, and earned. Traditional media is primarily paid but can contain some earned through public relations.

Owned media is what the company has control over. It controls the content, but the company does not have control over the interaction with the customer that it is engaging with. Owned media includes websites, blogs, emails, newsletters, and mobile apps. A company is responsible for creating and maintaining this media. Owned media uses a pull marketing strategy. The content attracts customers to the website, blog, etc.

Paid social media includes advertisements or sponsored marketing messages. This includes pay-per-click advertising, influencer-generated content, or display ads. Paid social media allows a company to target specific customer segments. For example, if you offer a weight loss product, the advertising can target customers interested in losing weight. This type of targeting allows the company to spend its budget wisely, reaching the right customer.

Earned social media involves third-party reviews, editorial mentions, user-generated content, brand mentions, and social sharing. Earned media provides word-of-mouth recommendations or discussions about a product or brand. The customer freely shares information about the brand. This is not content that the company has paid for or owns but has earned it.

It is important to use social media with a purpose and plan. It is a way to create impressions, build equity, and sell products or services.

Think about your own company. How are they using social media? What about your competitors? What seems to be getting the most attention or attracting customers?

To review, read Old to New Media.

7b. identify the types of content marketing

• What is content marketing?
• What type of content is useful for social media marketing?
• What is user-generated content?
• Why are keywords important?

The content in marketing generates interest and keeps customers engaged on your website. It needs to be systematic and planned. This includes photos, blogs, videos, and text posts or tweets.

The goal of content is to showcase the company's expertise in their product or service. It is to be a helpful expert or authority on the topic.

Content needs to be developed and built on keywords. Keywords for the brand or company need to be identified and properly used. If someone is searching for a plumber and lives in Dallas, Texas, they might search for the "best plumber in Dallas, Texas". Information like this will guide keywords. Developing keywords is not one-and-done; rather, it is an ongoing process.

Content marketing is the foundation for establishing trust between a company and the customer. When customers trust the content, they are more willing to share it.

Think about this. What content are you willing to share? Why?

To review, read Content Marketing Strategy.

7c. Describe email marketing and its use

• What is email marketing?
• What is the distinct advantage of using email marketing compared to social media?

Email marketing is one of the more effective ways to reach customers. It is a way of reaching many people at one time. Email is owned media; thus, you control the content and own the email list. You can use email in conjunction with social media. You should use email to continue engagement with your audience. The marketer might offer a discount on a product or service. They could offer a free e-book or anything that the customer would consider valuable.

The goal is to engage with the customer and continue a relationship. It is important to remember the end goal of an email. Typical goals might include sales, conversion, or creating web traffic.

Sending too many emails will cause the emails to be deleted, becoming a wasted effort. The marketer must find the right balance regarding the frequency of communicating with its customers. The marketer must also give the customer a reason to open the email. The subject line is a critical component of the email. The subject line will encourage the customer to open the email. Even if the content is compelling, if the subject line does not draw a customer to open the message, they will never see the good content.

To review, read Email and Mobile Direct Marketing.

7d. identify the major social media platforms and their attributes

• What is the difference between Facebook, Twitter, Instagram, and Pinterest?
• What is a good way to describe the tone and culture of LinkedIn if Facebook's personality is "friends, family, fun, photos, and fake"?
• Why would a brand use one social media platform over another?

There are over 100 different social media platforms. We are going to review just a few of the top sites.

Facebook is the largest social media platform with over two billion active users. It is one of the most used platforms. The Facebook algorithm, Edgerank rewards posts that are liked, shared, and ones where someone comments. Facebook is focused on fun, family, friends, and faith. Companies should avoid political messages on this site. Facebook also has a strong advertising component which allows a marketer to be very targeted in who they want to reach.

LinkedIn is a business networking site. It is a good place for a company to leverage its business. When someone shares a post or article to their profile, the posts show up in the news feed of those connected with that person. LinkedIn has a more serious or business-focused tone, so the messages should reflect that tone.

Twitter contains noise and news and is not a suitable venue for marketing unless that is where your customers are. Twitter limits the message to 280 characters. You can embed a video in the message that leads the reader back to your website. You do not need to be connected with someone, as anyone can see a tweet. Also, anyone can send you a message without being a "friend".

Instagram is owned by Facebook. It is a photo-sharing site. There is an opportunity to create content that engages your followers through short videos or photographs. It is designed to be used on a mobile phone or tablet. You cannot just post text; a picture must accompany all posts.

YouTube is owned by Google. It is a platform where users can upload or share videos. YouTube's platform is set up so a company can set up a channel. The challenge is producing engaging videos that keep the viewer's interest. How-to videos have been very popular on YouTube. To encourage people to produce videos, there is now a way for someone to be paid when a certain number of people follow the person or brand and then log a set number of viewing hours. Creating the best video and keeping the viewer engaged is an enticement for those who want to earn money with their videos.

Pinterest is strong with certain niches such as do-it-yourself and online shopping. Shoppers use Pinterest to browse the internet and "pin" items they want to buy onto "boards". For example, do-it-yourselfers use Pinterest to share ideas on how to create things, and home cookers share recipes and cooking tips. A brand posts images on Pinterest with links back to their website for purchase.

Another aspect of communicating with consumers is through blogs. Blogs are a type of content communication that can be incorporated into social media platforms. The best blogs will generate traffic to the company's website and build community.

Can you think of a social media site that allows you to create and share? Now think of one that treats you like "eyeballs". What is the difference?

To review, read Social Media Platforms.

Unit 7 Vocabulary

This vocabulary list includes terms that might help you with the review items above and some terms you should be familiar with to be successful in completing the final exam for the course.

Try to think of the reason why each term is included.

• blogs
• content marketing
• crowdsourcing
• earned media
• email marketing
• Facebook
• Instagram
• keywords
• LinkedIn
• owned media
• paid media
• Pinterest
• social media
• Twitter
• user-generated content
• YouTube