Key Terms for Marketing Unit 1 & 2 Flashcards
What is marketing
Marketing are activities involved in the
planning
pricing
promoting
distributing
selling of goods and services
What is the difference between an industrial good/service and consumer good/ service?
Consumer goods are products intended for personal use to public.
Industrial goods for services used in a business to to assist in business operations.
Raw materials
Materials used in manufacturing of goods (Ex: Tim Hortons getting coffee beans to sell coffee to consumers)
Processed goods
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)
Finished goods
Goods that have been manufactured but haven’t been distributed
What is the marketing concept?
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
What is the difference between a need and a want?
Need: Something that is necessary to live Want: Something that can improve your quality of life.
3 marketing concept steps
-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
What are the 5 stages of the product life cycle (Traditional)
D.I.G.M.D.D
Development Stage
Introduction Stage
Growth Stage
Maturity Stage
Decline Stage
Decision Point Stage
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 heavily during this stage.
Maturity Stage
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.
Decline Stage
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.
Decision Point Stage
Deciding what to do with a product, if to stop production or continue with a new model.
What are the 4 types of non-traditional product life cycles?
F.T.N.S
Fad,
Trend
Niche
Seasonal
Fad meaning
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
Trend Meaning
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 Meaning
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 Meaning
There are peak periods throughout the year change in consumer demand based on a pattern Ex: Ice-cream, summer resorts, snow-blowers, turkeys
What is the difference between a primary and secondary market
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
Maslow’s Hierarchy of Needs
P.S.A.E.S
PHYSIOLOGICAL NEEDS
SAFETY & SECURITY NEEDS
AFFILIATION NEEDS
ESTEEM NEEDS
SELF-ACTUALIZATION
What are the 4 types of motivational forces?
B.E.R.S
Biological forces
Emotional forces
Rational forces
Social forces
Biological forces
Have their roots in the basic human need for survival Ex: food
Emotional forces
Human emotion motivates us to do things that makes us feel better Ex: massages, vacations, therapy
Rational forces
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.
Social Forces
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.
Alderfer’s ERG Theory– He modified Maslow’s theory to include only three levels of human needs
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.
What is meant to buy something on impulse
Impulse purchases are not logical or rational
What are the 4Ps of marketing and what falls under each mix
Product, Promotion, Price, Place
What is Product
Research, product development, packaging, and branding R.P.B.P
What is Promotion
Consists of advertising, sales promotion, and publicity
What is Price
Assigning an appropriate price for your product
What is Place
Includes physical distribution
What are the different ways an organization can set up their marketing departments
R.I.B.D
Regional, international, Brand, Distribution
Regional Meaning
Allows a business to respond to the needs of consumers in different regions of the country
International Meaning
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
Brand Meaning
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)
Distribution
Organizing marketing departments according to distribution channels
The 6 steps of the Buying Process
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
