6 - Marketing Concepts Flashcards
What is a marketing strategy?
- 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
Describe the marketing process (5 points)
- Customer needs and wants
- Customer driven strategy
- Marketing program
- Relationship building
- Value from customers and profit
Describe needs
- Basic requirement
- Considered to be essential for survival
- Ex: food, water, shelter, clothing, insurance, healthcare, education
- Products or services that are always purchased
Describe wants
- 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
Describe demands
- 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
What is customer driven marketing?
Marketing of products or services that meet the demands and needs of a specific customer set
What are examples of psychographic market segmentation
- Lifestyle
- Personality,
- Interests
- Values
- Attitudes
What should you determine when deciding your target market?
- Defining your main market segment that you will be focusing on
- Needs or expectations
- Shopping preferences
- Growth potential
- Nature of market and organization
What is customer driven strategy?
- 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
What is a market analysis?
- Specific, focused review of the market potential
- Usually completed prior to starting a new business
What can market research help with?
- 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
Describe marketing myopia
- 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
Purpose of a marketing program?
- Delivers value to the targeted customer
- Builds customer relationships
4 P’s of marketing?
- Product (needed by the consumer)
- Price (cost or value to consumer)
- Place (availability to consumer)
- Promotion (communication to consumer)
Define product
- 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
What are consumer products and what are the types?
- Purchased by consumer for personal use
- Ex: convenience, shopping, specialty, and unsought products
Define convenience products
Consumer product that the individual usually buys frequently, immediately, and w/ minimum comparison and buying effort
Define shopping products
Consumer product that people, in the process of selection and purchase, characteristically compare on bases such as suitability, quality, price, and style
Define specialty products
Consumer product w/ unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort
Define unsought products
Consumer product that the consumer either doesn’t know about or knows about but doesn’t normally think of buying
What is a business product?
Purchased by a business for use in that business
What is a brand?
Name, term, sign, symbol, design, or combination of these that identifies the maker/ seller of a product/ service
Purpose of branding?
- Adds value to a product
- Differentiates your product or organization
What are some external factors that affect pricing?
- Market and demand
- Competition
- Economic environment
What are some internal factors that affect pricing?
- Marketing objectives
- Marketing mix strategy
- Product cost
- Product differentiation
What are the options for determining pricing?
- Cost-based pricing
- Value-based pricing
- Market-based / competitive pricing
Describe cost-based pricing
Fixed sum or % added to the total cost of the product = selling price
Describe value-based pricing
- Based on consumers perception of value
- Ideal customer and values + next best alternative + unique features of product = value-based pricing
Describe market-based pricing
- Based on what competitors are selling the same or similar product for
- Prices are set at, above, or below what competition is charging
What is the difference between advertising and promotion?
- 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)
Describe direct marketing
Tracks customer behaviour in order to provide specific marketing to specific customers
