6 - Marketing Concepts

Question 1

What is a marketing strategy?

Answer 1

• The plan utilized to implement or achieve the marketing goals
• Determine the needs, wants, and demands of a specific group of consumers
• Focus is on the target market

Question 2

Describe the marketing process (5 points)

Answer 2

1. Customer needs and wants
2. Customer driven strategy
3. Marketing program
4. Relationship building
5. Value from customers and profit

Question 3

Describe needs

Answer 3

• Basic requirement
• Considered to be essential for survival
• Ex: food, water, shelter, clothing, insurance, healthcare, education
• Products or services that are always purchased

Question 4

Describe wants

Answer 4

• Not essential for survival
• Product or service that is desired but not required for survival
• Ex: cellphone, computer, TV, Starbucks, eating out
• Shaped by culture, individual personality, and marketing programs

Question 5

Describe demands

Answer 5

• Wants combined w/ buying power
• Want/ need supported by the ability to purchase (desire to have and can afford to buy)
• Ex: expensive watch/ phone vs. less expensive counterpart

Question 6

What is customer driven marketing?

Answer 6

Marketing of products or services that meet the demands and needs of a specific customer set

Question 7

What are examples of psychographic market segmentation

Answer 7

• Lifestyle
• Personality,
• Interests
• Values
• Attitudes

Question 8

What should you determine when deciding your target market?

Answer 8

• Defining your main market segment that you will be focusing on
• Needs or expectations
• Shopping preferences
• Growth potential
• Nature of market and organization

Question 9

What is customer driven strategy?

Answer 9

• Focuses on meeting the needs of the target market
• Differentiate products/ services or quality of service from competitors
• Promises to the consumer that your organization can deliver

Question 10

What is a market analysis?

Answer 10

• Specific, focused review of the market potential

- Usually completed prior to starting a new business

Question 11

What can market research help with?

Answer 11

• To design a focused marketing plan based on the research and learn about competitors (what potential customers like/ dislike about them)
• Who your potential customers are (age, gender, income), where they are, and what they need
• Identify changes in demand, opportunities, and threats

Question 12

Describe marketing myopia

Answer 12

• Sellers pay more attention to the specific products they offer than to the benefits and experiences produced by the products
• Focus on “wants” and lose sight of “needs” of customers

Question 13

Purpose of a marketing program?

Answer 13

• Delivers value to the targeted customer

- Builds customer relationships

Question 14

4 P’s of marketing?

Answer 14

• Product (needed by the consumer)
• Price (cost or value to consumer)
• Place (availability to consumer)
• Promotion (communication to consumer)

Question 15

Define product

Answer 15

• Good, service, or experience that will satisfy a buyer’s need or demand
• Offered for sale
• Meets requirements of target market
• Profitable and relevant to the consumer
• Can be tangible (goods) or intangible (service) or combination of both

Question 16

What are consumer products and what are the types?

Answer 16

• Purchased by consumer for personal use

- Ex: convenience, shopping, specialty, and unsought products

Question 17

Define convenience products

Answer 17

Consumer product that the individual usually buys frequently, immediately, and w/ minimum comparison and buying effort

Question 18

Define shopping products

Answer 18

Consumer product that people, in the process of selection and purchase, characteristically compare on bases such as suitability, quality, price, and style

Question 19

Define specialty products

Answer 19

Consumer product w/ unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort

Question 20

Define unsought products

Answer 20

Consumer product that the consumer either doesn’t know about or knows about but doesn’t normally think of buying

Question 21

What is a business product?

Answer 21

Purchased by a business for use in that business

Question 22

What is a brand?

Answer 22

Name, term, sign, symbol, design, or combination of these that identifies the maker/ seller of a product/ service

Question 23

Purpose of branding?

Answer 23

• Adds value to a product

- Differentiates your product or organization

Question 24

What are some external factors that affect pricing?

Answer 24

• Market and demand
• Competition
• Economic environment

Question 25

What are some internal factors that affect pricing?

Answer 25

• Marketing objectives
• Marketing mix strategy
• Product cost
• Product differentiation

Question 26

What are the options for determining pricing?

Answer 26

• Cost-based pricing
• Value-based pricing
• Market-based / competitive pricing

Question 27

Describe cost-based pricing

Answer 27

Fixed sum or % added to the total cost of the product = selling price

Question 28

Describe value-based pricing

Answer 28

• Based on consumers perception of value

- Ideal customer and values + next best alternative + unique features of product = value-based pricing

Question 29

Describe market-based pricing

Answer 29

• Based on what competitors are selling the same or similar product for
• Prices are set at, above, or below what competition is charging

Question 30

What is the difference between advertising and promotion?

Answer 30

• Promotion = communicating info to a customer in an attempt to influence them to buy a product and/ or service (ex: coupons, rebates, free samples, social media campaign)
• Advertising = specific action to promote a product or service (ex: magazine ads, billboards, TV or radio commercials)

Question 31

Describe direct marketing

Answer 31

Tracks customer behaviour in order to provide specific marketing to specific customers