Chapter 1 & 2 Flashcards
The activities that marketers engage in
Consumer goods: non-industrial products intended for personal use by the general public. Ex: iphone
Industrial goods and services: goods or services used in a business to make other products or to assist in business operations. These include Raw materials, Processed goods, and Finished goods. Ex: Apple Muisc
The steps of the marketing concept
-Identify an opportunity in a specific market that the opportunity has not already been met in the competitive market
-Use appropriate marketing strategies to organize marketing plans and to sell the product successfully
-Ensure that the opportunity has not already been met in the competitive market
What are gatekeepers and why are they important
A person who purchases a product for someone that is not able to do so themselves Ex: Parents buying toys for kids, companies need to let parents know the value and impress them because without the parents toy aren’t being bought
The 4 Ps and 2 Cs
What is Product: Includes research, product development, packaging, and branding
What is Price: Assigning an appropriate price for your product
What is Place: Includes physical distribution, storage, inventory management, and channel selection
What is Promotion: Consists of advertising, sales promotion, and publicity
Consumer—a person who uses a product
Customer—a person who purchases a product
The stages of the traditional product life cycle
Development Stage: Developing products/in the making of products
Introduction Stage: When a product is introduced into a market. The most expensive stage and priced very high at this stage
Growth Stage: The product is highly visible in either daily life or in the media
And will get advertised
Maturity Stage: Businesses use income generated by mature products to develop and launch new products.
Decline Stage: Product won’t be as useful as some point and orders decline.
A decrease in profits. The manufacturer is only able to find a few new customers. Customers in this stage are called laggards.
Decision Point Stage: Deciding what to do with a product, if to stop production, continue with a new model.
Knowledge of the non-traditional product life cycles
Fad: A good, service, or idea that is extremely popular for a very short period of time and then becomes unpopular just as quickly Ex: Memes, rubiks cubes, fidget spinners
Trend: Last longer than a fad in the marketplace, A mass movement towards a particular style or value. Predicting where the market is going to go Ex: public leaning towards organic food therefore stores will supply more
Niche: Products that have a very short growth stage that leads to a solid but not spectacular maturity stage. They dominate a small section of the market with little competition Ex: The Pet Hotel, energy drinks
Seasonal: There are peak periods throughout the yearA change in consumer demand based on a pattern Ex: Ice-cream, summer resorts, snow-blowers, turkeys
The difference between demographics, psychographics, geographic. How does this product appeal to the consumers in these 3 categories.
Demographics: The study of obvious characteristics that categorize people: Gender, age, culture
Psychographics: It is a system for measuring consumers’ beliefs, lifestyle, opinions, and interests
Geographic: Like demographics, but marketers categorizes people based on where they live
Motivational theories (Thorndike)
Thorndike’s Law of Effect
Consumers are motivated to buy products that produce positive events and avoid products that produce negative events A positive event occurs when the product does what the consumer wanted or expected. A negative event occurs when a product does not do what it is expected to do
Marketing activities a company will do to sell their good or service:
Advertisment, radio, poster, billboard, social media, sales promotion
Maslow’s Hierarchy of needs
PHYSIOLOGICAL NEEDS SAFETY & SECURITY
Love, Belonging
NEEDSESTEEM NEEDS
Self-Actualization
Alderfer’s ERG Theory
-He modified Maslow’s theory to include only three level of human needs
-Existence needs (physical & psychological needs)
-Relatedness needs (personal relationships)
-Growth needs (self-fulfillment
