ESB Domain 2 Lesson 2 - for Notes

ESB Version 2 Domain 2 Lesson 2

Marketing Platforms & Methods

1. Digital Marketing Platforms

   1. Facebook, Instagram, Twitter and LinkedIn

   2. Paid Ads and Sponsored Content

2. Influencers

   1. Highly-followed individuals

3. Email

   1. custom newsletters

4. Websites

5. Search Engines

   1. SEO (search engine optimization) is accomplished by companies using specific elements to ensure that search engine crawlers find and index the content

   2. Ideal because customers more likely to open results at the top of search

6. Pay per click

   1. Lets marketers place ads on websites within search engines

7. Video Marketing

   1. Shared on social platforms

Market Reactions & Sales Data

1. Behavioral

   1. Collected by observing customer behavior

2. Geographical

   1. Provides locations to see which area has high or low volumes

3. Demographic

   1. Info like age, gender, ethnicity, income and employment

4. Psychographic

   1. Provides info about values, personality traits, motivations, and how they view the world

Customer Acquisition Costs

1. Customer Acquisition & Retention Costs

   1. Acquisition (acquiring new customers)

      1. Investors use CAC to determine if company is profitable will continue to be

         1. If CAC is high, marketing is ineffective or demographic shift 

      2. CAC formula = marketing expenses + sales expenses divided by the number of new customers for the period

         1. Example New customers =6,000 Marketing costs $40,000 Sales Costs $20,000 (40+20=60,000/6,000= $10)

Fill in the Blank

The formula used to determine customer acquisition costs is _________expenses plus sales expenses divided by the number of new customers for the period.

Customer Retention Costs

1. Retention

   1. Want to keep the customers you have because it is less expensive

   2. Customer Retention Rate formula = [(End customers-new customers)/number of customers at start of period] multiply by 100

      1. [(E-N)/S]x100

      2. Example End of june=300, Start of June 310, New customers=20

Elements of a Marketing Plan

1. Marketing Plan outlines marketing strategies and should include actions that need to take place 

   1. Executive summary and business description

   2. Situation Analysis

      1. What factors sway your marketing strategy

   3. Define target market

   4. Delivery Plan

      1. Outlines how items will be sold and delivered to customers

   5. Marketing Mix (The 5 P's)

      1. Product, Price, Place, People Promotion

   6. Strategies and tactics

      1. Approaches you plan to use and actions that will occur

   7. Offer or message

   8. Budget

Fill in the Blank

It is less ____________ to keep current customers than to acquire new customers.

Fill in the Blank

 The five P’s of the marketing mix are product, price, place, people and _____________.