Lesson 3: Understanding the market Flashcards
It is how a business intends to present a product to the public, taking into account
the target audience, product benefits and marketing methods.
Marketing Strategy
Marketing Strategy is how a business intends to __________, taking into account
the target audience, product benefits and marketing methods.
present a product to the public
refers to activities a company undertake to promote the buying or selling of a
product or service.
Marketing
A _____ is a long term plan on what to do to achieve a certain goal.
strategy
specific group of people with shared characteristics you want to reach with your
marketing efforts
Target Market
is the activity of dividing a broad consumer or
business market into sub-groups of consumers
(known as segments) based on some type of
shared characteristics
Market Segmentation
Bases of market segmentation
geographic, demographic, behavioral, psychographic
its about the Location, Country, City, Language and Population of the customers.
Geographic
Its about the Age, Sex, Income, Education, Social Status, Family, and Occupation of the customers.
Demographic`
it is the Readiness to purchase, Life cycle stage, User status, and Intent of customers
Behavioral
its about the Lifestyle, Interest, Personality, Values, and Attitudes of customers
Psychographic
is the set of controllable, tactical marketing tools
that a company uses to produce a desired response from its target market.
the marketing mix
It consists of everything that a company
can do to influence demand for its
product..
Marketing Mix
7 Ps of Marketing Mix
- Product
- Price
- Promotion
- Place
- People
- Packaging
- Positioning
This is defined as “anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. It includes physical objects, services, persons, places, organizations and ideas.”
Product
bags, shoes, clothes, foods, cars, tables,
pencil, notebooks, etc. are example of
tangible products
These are activities, benefits or
gratification offered for sale that is essentially ___ and does
not result in ownership of anything.
intangible products are services.
By reviewing the product at different levels, an entrepreneur can have a
better understanding of the product’s competition, and gives a snapshot of
the reasons why a customer decides to buy the product or avail the services.
Product Levels
Product levels
Level 1: Core Benefit
Level 2: Actual Product
Level 3: Augmented Product
is the fundamental need that the customer satisfies when they
buy the product.
Level 1- Core Need
is the product features
and its design. Products typically have lots
of features but very few actual benefits
(core benefits) to the customer.
Level 2 - Actual Product
―to add to” or
―to make greater”. Therefore, the last
level in the product level model is
increasing and adding value \These are
referred to as ―add-ons.
Level 3 - Augmented Product
It answers the question—how much? This is also
the amount of money that the customer must pay to
get the products or services that he wants. This is
also defined as the value that the entrepreneur
assigns to a product or service after computing its
costs.
Price
is the method of pricing that an entrepreneur
use to determine how much to sell their products or services.
A pricing strategy
Pricing Strategies
Market Penetration Pricing
Market Skimming Pricing
Competitive Pricing
Premium Pricing
Cost Based Pricing
Psychological Pricing
Bundling
Value based pricing
Product line pricing
This is the setting up of a low price
to new products or services in
order to attract more customers and
increase in market share.
Market penetration pricing
This is the opposite of market penetration
pricing because with _______
pricing strategy, the entrepreneur sets a
higher price for a new product to gain
maximum revenues for customers who are
willing to pay for a higher price.
Market Skimming Pricing
This is a common practice among
entrepreneurs where they check and
refer to the product price of their
competitors.
Entrepreneurs in the same industry set
prices relatively low or relatively high
with competitors.
Competitive Pricing
This is a method where the
entrepreneur sets a very high price
for their products and services to
reflect an impression of higher
quality and superiority.
Premium Pricing
This is a pricing method wherein a mark-up
is added over costs or all expenses to
come-up with the agreed price of the
product or service.
Cost Based Pricing
It is the practice of setting
prices of products that is
slightly lower than a whole
number.
Psychological Pricing
This is when entrepreneurs combine
two or more of their products and
offers the ―bundle at a lesser price.
Bundling
This is a pricing strategy wherein the
entrepreneur determines the
willingness to pay of a target
customer for a particular product or
service.
Value based pricing
It refers to the practice of setting
prices for multiple products in
coordination with one another.
Product line pricing
It refers to a location where the business is situated.
An entrepreneur would choose a prime location for his business where the customers could easily visit his store to buy their goods or services.
Place
would also refer to the channels of distribution. In this
marketing mix, the entrepreneur seeks to answer this – how can we
deliver our products and services to our target customers?
Place
It is organized and managed by a company that sells directly to
consumers.
Direct Distribution
It involves intermediaries that perform a company’s distribution
functions
Indirect Distribution
Types of distribution channel
Direct and Indirect
to get the
attention of customers which will then lead to
their purchase of the product that is being
promoted.
This marketing mix may also create interest and
curiosity in the minds of buyers and can also
generate loyal customers.
Promotion
Promotional Strategies
Advertising
Sales Promotion
Personal selling
Public relations
Direct marketing
Social Media marketing (SMM)
It is any paid form of public
presentation or announcements of
products or services by an identified
sponsor through a medium.
Advertising
The main purpose of advertisements are
the following:
Create awareness of your product or
service
Persuade the customers that your
company’s product or service is
suitable for their needs or wants
Improve the image of your company
Publicize new products or services.
This is a short term incentive given to
customers to encourage the purchase of
a product or service
Sales Promotion
This is one of the most sought after
strategies in promotion. Customers find
that ________ is that the priority
of the entrepreneur is on the
interactions, relationship and trust built
between sales and the customers or
buyers.
Personal Selling
This also known as PR is the process
of creating good relations with the
general public and building a good
image. This also includes proper
management of unfavorable feedbacks
from customers.
Public Relations
This is the strategy where the
entrepreneur makes ____
connections with carefully targeted
customers to get fast response and
make a lasting relationship thus
making them your loyal customers.
Direct Marketing
This strategy uses social networking
websites such as Facebook, Instagram
and Twitter as a promotional tool.
Social Media Marketing (SMM)
This is an additional element in the basic 4P’s of
marketing. _____include your employees and
how they handle and take care of your
customers’ needs.
People
It how the product is presented to the customers.
It is the way your product or service looks from
the outside. _____ will set you apart from
your competitors. It is also part of your over-all
brand identity.
Packaging
is also considered as
the ―”silent salesman” of your
products or services.
Packaging
This is the process of communicating the
image of a brand into the minds of your
customers. This is also the marketing mix
where companies create their Unique Selling
Proposition or USP.
positioning
is one of the most vital features of any enterprise.
Branding
is an identifying symbol, mark, logo, name,
word, and/or sentence that businesses use to differentiate
their product from others.
Brand
Characteristics of a brand name
Catchy, Visually appealing, and positive meaning, clear and concise, and unique
use a word or phrase that is easy to recall. Avoid words that have
foreign sounding pronunciation.
Catchy
your brand which includes your brand logo must be
carefully planned out. It must use a good combination of graphics and colors.
Visually Appealing
your chosen brand name or brand logo should be carefully
checked for possible negative meanings.
Positive meaning
the brand name should clearly identify your product and
its salient features.
Clear and concise
As an entrepreneur, you should choose a name that has no similarity
with other brand names. It always a must to check the availability of your
chosen brand name before starting your business.
Unique
