Key Terms for Marketing Unit 1 & 2

Question 1

What is marketing

Answer 1

Marketing are activities involved in the

planning
pricing
promoting
distributing
selling of goods and services

Question 2

What is the difference between an industrial good/service and consumer good/ service?

Answer 2

Consumer goods are products intended for personal use to public.

Industrial goods for services used in a business to to assist in business operations.

Question 3

Raw materials

Answer 3

Materials used in manufacturing of goods (Ex: Tim Hortons getting coffee beans to sell coffee to consumers)

Question 4

Processed goods

Answer 4

It goes through a process to become its state to use/sell
(Ex: Coffee beans have to go through a process of roasting for there to be coffee to sell)

Question 5

Finished goods

Answer 5

Goods that have been manufactured but haven’t been distributed

Question 6

What is the marketing concept?

Answer 6

The marketing concept is that a business must consider its potential customers and competitors in every important business decision. The marketing concept requires a business to take 3 steps

Question 7

What is the difference between a need and a want?

Answer 7

Need: Something that is necessary to live Want: Something that can improve your quality of life.

Question 8

3 marketing concept steps

Answer 8

-Identify an opportunity in a specific market that the opportunity has not already been met

-Use appropriate marketing strategies to sell the product successfully

-Ensure that the opportunity has not already been met in the competitive market

Question 9

What are the 5 stages of the product life cycle (Traditional)

Answer 9

D.I.G.M.D.D
Development Stage
Introduction Stage
Growth Stage
Maturity Stage
Decline Stage
Decision Point Stage

Question 10

Development Stage

Answer 10

Developing products/in the making of products

Question 11

Introduction Stage

Answer 11

When a product is introduced into a market. The most expensive stage and priced very high at this stage

Question 12

Growth Stage

Answer 12

The product is highly visible in either daily life or in the media
And will get advertised heavily during this stage.

Question 13

Maturity Stage

Answer 13

Businesses use income generated by mature products to develop and launch new products. Customers in this stage are called the late majority. After the growth, the sales slowed down.

Question 14

Decline Stage

Answer 14

The product won’t be as useful at some point and orders decline.
The manufacturer is only able to find a few new customers. Customers in this stage are called laggards.

Question 15

Decision Point Stage

Answer 15

Deciding what to do with a product, if to stop production or continue with a new model.

Question 16

What are the 4 types of non-traditional product life cycles?

Answer 16

F.T.N.S
Fad,
Trend
Niche
Seasonal

Question 17

Fad meaning

Answer 17

A good, service, or idea that is extremely popular for a very short period and then becomes unpopular just as quickly Ex: Memes, rubiks cubes, fidget spinners

Question 18

Trend Meaning

Answer 18

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.

Question 19

Niche Meaning

Answer 19

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

Question 20

Seasonal Meaning

Answer 20

There are peak periods throughout the year change in consumer demand based on a pattern Ex: Ice-cream, summer resorts, snow-blowers, turkeys

Question 21

What is the difference between a primary and secondary market

Answer 21

Primary Market: When you buy something from a store shelf
Secondary Market: When you buy something already used or to maintain a primary market Ex: To maintain a phone, you need to buy the charger

Question 22

Maslow’s Hierarchy of Needs

Answer 22

P.S.A.E.S
PHYSIOLOGICAL NEEDS
SAFETY & SECURITY NEEDS
AFFILIATION NEEDS
ESTEEM NEEDS
SELF-ACTUALIZATION

Question 23

What are the 4 types of motivational forces?

Answer 23

B.E.R.S
Biological forces
Emotional forces
Rational forces
Social forces

Question 24

Biological forces

Answer 24

Have their roots in the basic human need for survival Ex: food

Question 25

Emotional forces

Answer 25

Human emotion motivates us to do things that makes us feel better Ex: massages, vacations, therapy

Question 26

Rational forces

Answer 26

The rational side of many consumers are at war with their emotional side. You have two brands and want to spend extra money with a more extra thrill or go with the more generic version. Ex: Purchasing a car that matches your income level or going expensive with a car.

Question 27

Social Forces

Answer 27

It happens because of Peer pressure, buying something to fit in, and Celebrity endorsements. Trying to fit in and making purchases to do so. Ex: buying a product that is trending or what a celebrity promotes.

Question 28

Alderfer’s ERG Theory– He modified Maslow’s theory to include only three levels of human needs

Answer 28

Existence needs: Physical & Psychological needs Ex: Eating and feeling sane

Relatedness needs: Personal relationships Ex: Have a belonging in the world

Growth needs: Self-fulfillment Ex: Goals to achieve for yourself.

Question 29

What is meant to buy something on impulse

Answer 29

Impulse purchases are not logical or rational

Question 30

What are the 4Ps of marketing and what falls under each mix

Answer 30

Product, Promotion, Price, Place

Question 31

What is Product

Answer 31

Research, product development, packaging, and branding R.P.B.P

Question 32

What is Promotion

Answer 32

Consists of advertising, sales promotion, and publicity

Question 33

What is Price

Answer 33

Assigning an appropriate price for your product

Question 34

What is Place

Answer 34

Includes physical distribution

Question 35

What are the different ways an organization can set up their marketing departments

Answer 35

R.I.B.D
Regional, international, Brand, Distribution

Question 36

Regional Meaning

Answer 36

Allows a business to respond to the needs of consumers in different regions of the country

Question 37

International Meaning

Answer 37

Sets up marketing & distribution centers in foreign markets. The foreign office analyzes the buying habits and customs of the local consumers to design a marketing campaign that can respond to those variables

Question 38

Brand Meaning

Answer 38

One or more of the company’s major brand is assigned to a marketing manager who develops a marketing plan for the brand Ex: Procter & Gamble (Tide, Pringles, Crest, Pampers)

Question 39

Distribution

Answer 39

Organizing marketing departments according to distribution channels

Question 40

The 6 steps of the Buying Process

Answer 40

Step 1: Create a want

Step 2: Select what criteria the consumer expects for the want

Step 3: The consumer searches for the product that matches the criteria

Step 4: A decision is made

Step 5: A purchase is made

Step 6: Evaluate the purchase

Ex:
Step 1: The dishwasher breaks

Step 2: Should the consumer buy a new dishwasher or repair the old one

Step 3: Four stores have dishwashers that meet the criteria for a new dishwasher

Step 4: Leon’s is offering a sale on a Maytag dishwasher that meets the criteria
outlined in step 2

Step 5: Purchase a dishwasher from Leon’s for $650

Step 6: Evaluate the purchase; pros and cons