Ch. 6 Marketing

Question 1

Marketing

Answer 1

A management tool that focuses on identifying the:
- Needs (required for well-being)
- Wants (meet needs in socially acceptable way)
- Demands (wants backed by resources)
of customers and developing products/services to meet those needs

Question 2

Ways marketing influences dietetics

Answer 2

• Dietitians are marketers of themselves, their profession, and products/services
• The professional as the consumer

Question 3

The Marketplace

Answer 3

• The milieu (social environment) in which goods are exchanged
• Can be viewed from multiple perspectives

Question 4

5 ways of viewing the marketplace

Answer 4

1. Production perspective
2. Product perspective
3. Selling perspective
4. Marketing perspective
5. Social marketing perspective

Question 5

Production perspective

Answer 5

The view of the marketplace that is based on the idea of growing, manufacturing, or creating a product
- adopted whenever demand exceeds production or cost of production is too high for consumers
- assumes that consumers will favor products that are readily available and affordable (e.g., Model T Fords were alike)
- necessary to develop ways to get the product to the consumer (distribution)

Question 6

Product perspective

Answer 6

The view of the marketplace that focuses on the product, its value, its features, and its performance (production dilemma must be solved)
- assumes that consumers will favor the product with the best features (e.g., today’s automobiles offer a wide choice of colors, options, and safety features to attract customers)

Question 7

Selling perspective

Answer 7

The view of the marketplace that is focused on getting the customer to purchase the product; often excess inventory
- accompanied by promotion to attract customers to a product that was not being sought (e.g., advertisements for automobiles often convince people a new vehicle is essential even when it is not)

Question 8

Marketing perspective

Answer 8

The view of the marketplace that develops products to satisfy consumers’ needs, wants, and demands
- customer driven
- includes the 4 P’s of Marketing (Marketing Mix): product, place, price, promotion

Question 9

Social marketing perspective

Answer 9

The view of the marketplace that balances the needs, wants, & demands of consumers with those of the organization and society
- market research is done to determine what products consumers want (e.g., hybrid and electric vehicles have been developed to address consumers desire for environmentally friendly autos)

Question 10

Mass Marketing

Answer 10

• The marketing of a product to the population at large without discriminating among population subgroups
• Used for products that appeal to a large portion of the population

Question 11

Target Marketing

Answer 11

The marketing of a product to a unique subgroup within the population by
- Market segmentation
- Market targeting
- Market positioning

Question 12

Market segmentation

Answer 12

• The identification and measurement of characteristics present in a population subgroup that is likely to purchase a specific product
• Characteristics such as age, income level, diagnoses, languages spoken, or gender or combinations of these may be used (e.g., Gen Xers, pregnant women, retired men, or teenagers with diabetes)

Question 13

Market targeting

Answer 13

• Describes the process of studying the market segment to determine what products might be developed for them (e.g., lactation classes for pregnant women)
• It is necessary to determine the:
  - Size/anticipated growth of segment
  - Potential to compete with other marketers
  - Resources necessary to reach market
  - Likely return on investment

Question 14

Market positioning

Answer 14

• Position = customer perception
• Involves presenting a product to the target market, emphasizing those features of the product that are most important to those consumers
• Involves equating the product with its benefits (e.g., Lactation classes could be positioned as promoting a healthy start for infants and helping with maternal weight loss)

Question 15

Market Research

Answer 15

The gathering of information about consumer’s needs, wants, and demands to identify target markets and to develop the marketing mix for those markets
Consists of:
- Needs identification
- Information gathering
- Data analysis

Question 16

Needs identification

Answer 16

What (and how much) information is needed?
- Either too little or too much information hampers market research
- information overload: having too much data, which may impede management processes and interfere with decision making
- Two types of information are needed:
1. Information about the target market
2. Information about the competition (Product lines, Market penetration, Market share, Growth, Price)

Question 17

Information gathering

Answer 17

Data gathered for market research:
- Primary data
- Secondary data

Question 18

Primary data

Answer 18

Information that is gathered specifically for that purpose either by the organization that needs it, or by someone hired to gather the data

Question 19

Secondary data

Answer 19

Information that is already available, either free or available for purchase
- Publicly available through libraries or the Internet
- Available from the industry or trade associations

Question 20

Data analysis

Answer 20

Final step in market research
- includes the compilation and evaluation of primary and secondary data that has been gathered
- used to determine what the organization’s marketing mix will be

Question 21

Marketing Mix
(The Four P’s of Marketing)

Answer 21

Contribute to the marketing of a product:
- Product
- Place
- Price
- Promotion
If the product being marketed is a service, a 5th P is added: People

Question 22

Products

Answer 22

• Can be goods, services, places, ideas, activities, organizations or people
• Are offered to consumers to meet a need, a want, or a demand

Question 23

Goods

Answer 23

• Tangible products that can be seen, touched and owned
• Ownership is transferable
• May be:
  - Durable (life expectancy measured in years, e.g. appliances, furniture, vehicles)
  - Nondurable (short life expectancy and/or tend to get used up quickly, e.g. dishes, clothing, toiletries, canned goods)
  - Perishable (very short lifespan and potential for deterioration/spoilage)

Question 24

Service Products

Answer 24

Product characterized by:
- Intangibility – cannot be seen or touched
- Inseparability – cannot be separated from its provider
- Variability – quality of service depends on the service provider and the situation
- Service Perishability – service cannot be stored for later use

Question 25

Other products

Answer 25

Places (e.g., Disneyland, Hawaii)
Activities (e.g., snowboarding)
Organizations (e.g., the Audubon Society)
People (e.g., Bruno Mars)
Ideas (e.g. an invention)

Question 26

Combination products

Answer 26

Combine goods and services
e.g., foodservice = food (tangible) + service (intangible); extended warranties on a new car

Question 27

Place

Answer 27

The location where the product is available to the consumer

Takes advantage of:
- Distribution channels
- Middlemen

Question 28

Product Distribution channel

Answer 28

Route products follow to get from the grower, producer or manufacturer to the end user
- can be direct or complex
- may involve middlemen

Question 29

Service Distribution channel

Answer 29

Physical placement of service where consumers are likely to be
- usually fewer middlemen involved

Question 30

Price

Answer 30

The cost of the product to the consumer
- The only part of the marketing mix that is associated with revenue and profit
- Generally based on the cost of producing the product:
- Cost of raw materials
- Cost of labor
- Anticipated profit
- Overhead costs such as rent, utilities, insurance, taxes

Question 31

Pricing strategy takes into account:

Answer 31

Price of competitive products
Perceived value of the product
Customer expectations
Available subsidies
Pricing psychology (2 for 1, 50% off, $1.99)
State of the economy
Price adjustments

Question 32

Promotion

Answer 32

Communicating information about the product to the consumer, intended to lead the consumer to purchase the product
Forms of promotion:
- Advertising
- Personal selling
- Sales promotion
- Public relations
- Merchandising

Question 33

Advertising

Answer 33

Promotion that is paid for by the advertiser, who determines the content and package of the message
- directed toward target market
- tends to be impersonal
- one-way communication
- relatively expensive

Question 34

Personal selling

Answer 34

Sales staff promote products during face-to-face encounters
- very effective because of two-way communication
- most expensive form of promotion due to hiring and training of paid staff

Question 35

Sales promotion

Answer 35

Utilize tools such as coupons, sales, or games to boost sales for the short term
- may be more prevalent during slow seasons or when there is an economic downturn

Question 36

Public relations

Answer 36

Unpaid publicity
- may be a photo or a public interest story, more credible than advertising
- no control over either the message or its packaging

Question 37

Merchandising

Answer 37

Physical display of the product that is being promoted
- placement is designed to attract the target market

Question 38

People

Answer 38

Final component of the marketing mix when the product is a service
- People are involved because of the inseparability and variability of service products
- Variability may be minimized by customer service training
- Service should be delivered with as much uniformity as possible