Exam Flashcards
1
Q
Whats Mass Marketing
A
- Promoting products with one key message that is direct to everyone.
- It is not as popular today due to the availability of information and computer technology, so the marketing is more sophisticated
2
Q
What is Demand elasticity and available substitutes theory
A
- When there are many substitutes for a product (tea for coffee, apple for orange juice) demand for the product is elastic.
- That means that a change in price affects demand for the product.
- The theory is that when you lower your price, demand will increase.
- When you raise your price, demand will decrease.
3
Q
3 types of intellectual property rights
A
Copyrights
Patent
Trademarks
4
Q
Explain what a copyright is and give an example.
A
- the legal protection of a creator’s intellectual property or products.
- e.g. books, films, video games, music, art
- The duration is for the life of the author plus 50 years.
5
Q
What is a royalty?
A
- If you wanted to use a clip from a movie for a commercial you would have to get permission and also pay a royalty fee to the owner.
- the fee you pay to use someones property
6
Q
Explain what a patent is and give an example.
A
- granted for 20 years
- a type of intellectual property that gives its owner the legal right to exclude others from making, using, or selling an invention
7
Q
Explain what a trademark is and give an example.
A
- Can be words, names, symbols, sounds or colors that distinguish goods/services.
- Can be renewed over and over again.
8
Q
Product Tie-In
A
- the use of ancillary products such as merchandise for promotional tools
- Ex: happy meal at mcdonalds with a toy
9
Q
Define synergy and give an example
A
- a combined action that occurs when products owned by one source promote the growth of related products
- Ex: synergy occurs when the OVO clothing steers people back to drakes music or concerts
10
Q
Define convergence and give an example.
A
- The overlapping of product promotion
multiple types of promotion occurring at the same time - Ex: tim hortons having a billboard, tv commercial, roll up the rim contest, internet ad, etc
11
Q
Whats a sports product
A
- the goods service ideas or a combination of those things related to sports that provide satisfaction to a consumer
- ex. basketball, jersey, shoes, video game
12
Q
Professional athlete
A
- an athlete who has the will and ability to earn an income from a particular sport
13
Q
Amateur athlete
A
- an athlete who has never accepted money, or who accepts money under restrictions specified by a regulatory body, for participating in a competition
14
Q
Recreational athlete
A
Plays the sport for fun;
Ex: golf, tennis, bowling, hiking, skiing, snowboarding
15
Q
High school athlete
A
- A person who plays on highschool sports teams
- in many communities, highschool sports are a source of pride and part of tradition, regional influences affect the popularity of sports in canada and the united states
16
Q
Whats NCAA
A
national college athletic association
17
Q
Whats U sports
A
- national organizations that governs college/university athletics and oversees important decisions pertaining to athletics
18
Q
college/university athlete
A
Play for NCAA or U Sports
19
Q
Whats Grassroots marketing
A
- marketing activity on a local community level
- if companies get you on a local level, you will blossom
- Ex: Toronto Maple Leafs going to sickkids hospital
- all of the 3 sports teams above (Blue Jays, raptors, argonauts) do Grassroots marketing in around the GTA.
20
Q
What are the 4 stages in the Product Life Cycle
A
Introduction
Growth
Maturity
Decline
21
Q
Explain the Introduction stage
A
- The product is first introduced in the marketplace
- focus is on promoting consumer awareness and getting consumers to try the product
- A major task is the distribution of the product; trying to convince retailers to carry your new product
EX: Gatorade - had to educate consumers about its capability of restoring an athlete’s energy lost during active play
22
Q
Explain the Growth stage
A
- More competitors enter the marketplace
- To stay competitive the product may be improved by adding new features or new products in that line
- Important to add distribution outlets
- EX: Gatorade added new flavors (orange and fruit punch), package sizes, and types of containers
- Gatorade increased its distribution from supermarkets and convenience stores to vending machines, fountain service, and snack bars.
23
Q
Explain the Maturity stage
A
- Sales begin to slow down (start to plateau)
- Repeat customers may stop buying
- To keep the product alive, changes may be made to the product to distinguish it from the competitors
- The focus can be on identifying new buyers
24
Q
Explain the Decline stage
A
- Sales and profits begin to drop
- Technological advances can cause entire product categories to enter the decline stage
- The product may be dropped from the product line or kept to satisfy requests from loyal customers
25
Define channel of distribution.
the path a product takes from the producer or manufacturer to the consumer
26
What are the 3 Channels of distribution
direct channel.
indirect channels.
multiple channel
27
Direct Channel
- the path a product takes without the help of any intermediaries between the producer and consumer
- you can buy it straight from the producer, nobody in between
Ex: Costco hotdogs, restaurants
28
Indirect Channels
- The path a product takes using intermediaries between the producer and the producer and the consumer
29
Multiple channel of distribution
- involves more than one type of distribution channel to reach customers
- increases product and service exposure and provides an opportunity to reach different parts of the consumer market
EX:
1. website (direct)
2. retail stores (direct)
30
Gross profit
Revenue minus the cost of goods sold.
31
Net profit
Gross profit minus expenses
32
5 pricing goals
1. Recovering costs
2. Return on investment
3. Competition pricing
4. Higher profit margin
5. Increase market share
33
Return on Investment
For every dollar the company puts into a project, the goal is to get the maximum return.
34
Competition pricing
To meet or beat the competitor’s price.
35
Higher profit margin
the difference between the expenses and the retail price, expressed as a percentage or a dollar amount.
36
Increase market share
the percentage of the total sales of all companies that sell the same type of product.
37
Consumer perception
the relationship of price and quality in a consumer’s mind.
38
Prestige pricing
Pricing a product well above the average market price to attract consumers who may judge a product’s quality by its price.
39
Odd-even pricing
- Pricing goods with either an odd number or an even number to match a product’s image.
- Odd priced items ($25.99) suggest a bargain.
- Even priced items ($100) may reflect quality and more expensive items.
40
Target pricing
Pricing goods according to what the customer is willing to pay.
41
Describe the supply and demand theory
- If a product is in high demand, and there is a limited supply, its price will be high.
- When there is a large supply of an item and demand is not great, dealers may lower prices to increase demand.
- Supply and demand theory is based on elastic demand.
42
4 situations where price will not affect a consumer’s demand
1. Product is a necessity
2. No substitutes exist
3. The price increase is not significantly relative to the consumer’s income
4. Time constraints
43
Markup pricing
- used by wholesalers and retailers who buy goods for resale
- markup is the difference between the retail or wholesale price and the cost of an item
- The markup must be high enough to cover expenses to ensure a profit
Ex: Dollarama or Costco
44
Cost-plus pricing
- Used by manufacturers and service providers
- pricing products by calculating all costs and expenses by adding in desired profit
45
Skimming pricing
When introducing a new product, marketers will price the item high to recover the costs of development
46
Penetration pricing
price an item low to create immediate demand for the product
47
Price lining
Selling all goods in a product line at specific price points'
Ex: a business may decide to sell it's basketballs at three price points - $9.99, $19.99, $29.99
48
Bundle pricing
- selling several items as a package for a set price
- products individually would cost more than the package price
EX. Mcdonalds combo
49
Loss leader pricing
- pricing an item at cost or below cost to draw customers into the store
- Idea is to get consumers into the store and to buy additional products
50
Yield management pricing
- pricing items at different costs to maximize revenue when limited capacity is involved
- Ex: seating in an arena. some seats are priced higher than others due to their location or the time they are purchased
51
Tiered pricing
- charging more for tickets to home games against more competitive opponents
52
Price Fixing
an illegal practice where competitors conspire to set the same price
53
Predatory pricing
Is setting a very low price in order to drive competitors out of business
54
Whats the Competition Act
prohibits price fixing and predatory pricing
55
Multi branding
- Each product in a product line has its own name
- An advantage is that each product has its own distinct image
- One disadvantage is the cost
Ex: Procter & Gamble has Tide, Gillette, pampers
56
Multi Product branding
- used when the manufacturer uses one name for all it's products
Ex: Nike
57
Co branding
- Combines one or more brands to increase customer loyalty and sales for each product
- Ex: using American Express gets you air miles
58
Generic brands
represents a general product category and does not carry a company or brand name
59
Intermediary brands
- carries a name developed by the wholesaler
- Intermediaries contract with manufacturers to make products that are sold under their own private labels
Ex: Costco - Kirkland, No frills - No name, Shoppers - Life
60
Brand
a name, word or words, symbol or design that identifies an organization and its products
61
Brand name
a word or words, letters or numbers representing a brand
62
Brand equity
- the value a brand has beyond its actual functional benefits
- customers are generally willing to pay a higher price for products with brand equity
63
Promotional advertising
advertising with a goal of selling an item being promoted
64
Institutional advertising
- Advertising with a goal of developing goodwill or a positive image
- Ex: at the end of Blue Jays or Raptors or Maple Leafs season, you might see an ad in the newspaper thanking the fans.
Ex. Tim Hortons advertisements
65
Define licensing.
- an agreement which gives a company the right to use another's brand name, patent, or other intellectual property for a royalty or fee
- Sports teams, athletes, and entertainment companies may have licensing agreements with product manufacturers
66
Licensor
the company or individual granting the license
67
Licensee
The company or individual paying for the rights to use the licensor’s name or property
68
licensed products
- Goods or services that legally use logos or images owned by other companies or people.
- Ex: royalty/licensing fee to Sony to be able to use the Spider man image.
69
Define endorsement.
Approval or support of a product/service usually by a celebrity
70
Explain what sponsorship is
promotion of a company in association with a property
71
Signage
- scoreboard, floorboards, rafters
- Ex. Scotiabank Arena on the scoreboard you can see the Remax logo, Ford on the ice, and a lot of sponsors on the boards, zamboni has a MasterCard logo
72
Entitlements
- occur when there is one major sponsor for an event
Ex. national bank open is the major sponsor for this tennis event in Toronto and Montreal
73
Facility entitlements
a company purchases the promotional rights to an entire stadium
Ex. Budweiser Stage, Scotiabank arena
74
Product exclusivity
- only one product in a product category is granted sponsorship
- This prevents competitors from selling or promoting their product during sponsored events
Ex. At McDonald's you can only buy Coca-Cola products, not Pepsi
75
4 elements of the promotional mix/plan.
Advertising
sales promotion
publicity
personal selling
76
Define advertising.
Any paid promotion of an idea, good, or service
77
List the 5 types of sales promotion.
Coupons & Rebates
Samples
Premiums
Contests & Sweepstakes
Price matching
78
coupon and rebates
offer some type of price reduction or free merchandise
the biggest difference is that coupons must be redeemed at the store while rebates must be sent to the manufacturer for reimbursement
Ex. Mcdonalds coupons, honey coupons
79
Samples
in a sampling campaign samples of a new product are given away to potential customers
local newspaper, mail, online or in person
In-store promotions or booths at sporting events
Ex. Costco samples
80
Premiums
Are items that are given away free with the purchase of merchandise
Free toys given away with the purchase of a McDonald's happy meal
81
contest and sweepstakes
For a contest a task must be performed to win a prize (ex roll up the rim or answer a skilled testing question)
Sweepstake participants need only to sign u to be included in the competition (paper or online)
82
price matching
is a practice where a retailer agrees to match and/or beat a lower advertised price from a rivals store
Selling you the same product for a lower price
83
Publicity
The free mention of a product, celebrity or company in the media.
84
Press release
A newsworthy article that provides the basic information to answer questions such as who, what, where, when, and why.
85
personal selling
personal selling allows for two-way communication between the buyer and seller
Direct communication by a salesperson to potential customers either in person, by telephone, or online
86
Explain the power of the promotional mix and what it achieves.
the right combination of all the elements of the promotional mix works to create synergy
Advertising, sales promotion, publicity, and personal selling leads to attract customers and fans, sales, and a positive image
87
explain what a marketing plan is.
A document that provides direction for the marketing activities for a specific period of time
88
whats a situation analysis
a study of the internal and external factors
89
Internal factors
Target markets
Current performance
Financial resources
90
External factors
External
Competition
Political
Economical
Regulatory/legal
Technological
Cultural
Industry trends
91
SWOT analysis
Strength
Weaknesses
Opportunity
Threats
92
6 elements of a marketing plan.
Executive summary
Situation analysis
Marketing goals/objectives
Marketing strategies
Implementation
Evaluation and control
93
What is the marketing mix and give examples
Product
the design, packaging, brand name
product warranty, image and customer benefits
point of difference
Price
Cost, competition, economic conditions and what the consumer is willing to pay will impact the price
psychological and emotional factors will play a role such as value, reputation, or prestige
Place
distribution strategies to get the product to the consumers
Direct channels, intermediaries, direct marketing, websites
Promotion
Sales promotion, advertising, publicity, public relations, personal selling
Can focus on informing, eductiing and or persuading customers
94
Define entertainment marketing.
the process of developing, promoting, and distributing products, or goods and services, to satisfy customers needs and wants through entertainment, or any diversion, amusement, or method of occupying time
95
Brand Identity
- a consistent image or feeling that consumers recognize when encountering the brand
- a consumer may accept the product and possibly buy it with no product knowledge beyond brand name recognition
96
Define ratings and explain why they are important
Ratings are a type of market research that determines if a program stays on television schedule or is dropped
97
niche marketing
A type of marketing that focuses on a small target market of consumers who have very similar interests.
98
Define corporate conglomerate
Entertainment companies are often corporate conglomerates or companies that have merged with or bought other companies and absorbed them into larger, more competitive businesses.
99
the big 5 entertainment conglomerates.
The walt disney company
Sony entertainement
Viacom (paramount)
Time warner
Comcast
100
3 entertainement categories
Media based entertainemnt goods
Media based entertainemnt services
Recreation based entertainment services
101
Media based entertainment goods
Films on DVD and Blu Ray
Music on DVD and CDs
Video and electronic games
Books and magazines
Toys
T-shirts
Concessions
Ex.super mario bros games
102
Media based entertainemnt services
Television shows
Movies in theaters
Concert performances
Theater performances
Streaming services
Ex. Movies, minions
103
Recreation based entertainment services
Amusement parks
Zoos
Museums
Snack-bars
Ex. canadas wonderland
104
Define evergreen and give an example.
films or products that are popular year after year
Evergreens are important to the film industry
EX: Grown ups, star wars
105
Location-based entertainment (LBE)
- entertainment that includes amusement, theme, animal, and water parks
- has evolved into major entertainment forms and can be local, regional or national attractions.
106
Describe impulse spending and why it is important to LBEs.
buying without prior planning
The park environment is set up for impulse spending.
