Marketing Exam goodness gracious Flashcards
What is Marketing?
activities companies do to promote the buying or selling of a product or service
Involves all the actions a company undertakes to draw in customers and maintain relationships with them
Seeks to match a company’s products and services to customers who want access to those products → ultimately ensures profitability
Relationships in Marketing
Marketing is based on the relationship between the buyer and the seller
Research shows that it is less costly to keep an existing customers than to get a new one
Successful marketing involves:
“Putting the right product in the right place, at the right price, at the right time.”
If you are able to do this, you should have a winning marketing strategy
Competitive Market
All the sellers of a specific product
Market Share
% of the market that a company or a brand has
Target Market
The specific group of customers whose needs and wants you will try to meet with a specific strategy
Market Segmentation
Dividing a broad consumer or market group, into sub-groups of consumer based on shared characteristics
Skills of a Good Marketer
Creativity
Communicator
Analytical/Critical Thinker
Technological Proficiency
Economic Systems
The way government and business work together to provide goods and services to the country’s people
Centrally Planned Economy
The government controls all elements of the economy including prices, wages, and production
The government decides what products are needed, how goods and services will be produced, and who receives the products that are produced
Examples: North Korea, Cuba
Market Economy
Businesses, consumers, and government act independently of one another
The government has little to no direct involvement in business
The consumers decide what should be produced, how it is produced, and who buys
Mixed Economy
Combining government intervention and private enterprise
Part of the entire economy is being controlled and run by a certain country’s government while the other half is left to the free market
Examples: Canada, France, Sweden
Supply and Demand
Supply = amount of a specific good or service that’s available in the market
Demand = amount of the good or service that customers want to buy
Supply and demand are both influenced by the price of goods and services
Price Level Effect on Supply Effect on Demand
High Falls Rises
Low Rises Falls
Marketing Strategy
Marketing Strategy
Once you find an opportunity, you must develop a marketing strategy
Consists of: A business plan and a marketing plan
Marketing Strategy = Target Market + Marketing Mix
Mass Marketing - the development of only one marketing mix (4 P’s) for a product
Assumed everyone has the same wants and needs of the product
Market Segmentation
Each market segment is made of customers with similar wants and needs for a specific product
A customer characteristic that is used to segment the market is called a: segmentation variable
Geographics
Segmenting a market based on where customers live
Location, community size
Psychographics
= Breaks down your customer groups into segments that influence buying behaviours
Beliefs, values, interests
Demographics
= The statistical characteristics of human populations used especially to identify markets
Age, income, gender
Consumer Influences
The three categories of influences on consumers:
Psychological
Social
Situational
Psychological Needs
Psychological influences are the influences that come from within a person
Psychologists say a “need: is a lack within a person that must be fulfilled
Marketing is about satisfying needs
Social Needs
Social influences are the influences that come from the society in which you live
Three categories of social influences:
Culture
Family
Friends and Co-workers
Situational Needs
Situational influences are influences that come from the environment
Including: the weather, the physical location of the store, the time of day, the visibility of the advertising, other promotions
Price Competition
Competing on the basis of price
Focus is on making the most profit by offering the lowest prices enabling more sales
Example: Walmart and No Frills
Non-Price Competition
Competition that is based on something other than price
The focus will be on the other 3 P’s in the Marketing Mix
Examples:
Product: Quality, features, benefits, colour, etc
Place: Location, hours of operation, online presence
Promotion
Four Levels of Purchasing Decisions
Impulse = Purchase made with no planning or research
Routine = Made quickly and without much thought
Limited = Made with some research and planning
Extensive = Involves a great deal of research and planning
Non Profit vs For Profit Marketing
For profit - tangible, for consumer sue, emotions
Non profit - intangible, for a cause, materialism
Characteristics of a Non-Profit Organisation
- Have a Mission =Describes what the organisation will do to improve quality of life
- Raise Funds=Collecting money in order to achieve their mission
3.Governed by their members
Four P’s for NPO’s
Product
Usually an intangible item
For a cause
Price
Should be low enough for people to feel like they can donate
Place
Make it easy to donate
Make it highly visible
Promotion
Display the image you want
Create emotions
Difference Between Corporate and NPO Marketing
Tangible vs. Intangible
“For consumer use” vs. “for a cause”
Image: emotions vs. materialism
Market Research
The gathering of information to make
Purpose of marketing research = to learn as much as you can about your:
Customers
Competition
Opportunities
You will then have the information you need to develop your:
Marketing plans
Marketing decisions
Primary Research
Collected first hand by a researcher for a specific purpose
Pros: Targeted, specific, designed by you
Cons: Time consuming, hard to find willing participants
Ways to collect: observations, interviews, survey, experiments, secret shoppers, questionnaires
Secondary Research
Research that has been collected and published by others
Pros: Quicker to conduct, easier to access
Cons: Not confidential, less targeted, lack of relevance
Ways to collect: Internet, libraries, databases, rewards
Trends in Marketing
In marketing, a trend is a direction of movement of consumer behaviour
Marketers must research trends for new business opportunities
Trend research combines research on customers, competition, and opportunity
Three Types of trends that are of interest to marketers:
Social Trends - Changes in society
Demographic Trends - Changes in the size of various segments in the population
Product Trends - Development of products
Trend Vs Fad
Trend: A significant change that lasts for over ten years
Example: Increased online shopping and banking
Fad: Something that enjoys popularity for a short amount of time and then disappears
Example: Fidget spinners
CSR
Social responsibility = The responsibility that each person has not to harm another person, community, or the environment
Business social responsibility = The obligation to make business decisions that consider the impact on society
Three Requirements of Business Corporate Social Responsibility
Be legal
Be ethical
Be philanthropic
Ethical Decision Making
Ethics = are rules for deciding the right behaviour in a situation
Business Ethics = are the rules used to make ethical business decisions
Philanthropy
= consists of actions that improve human welfare and promote goodwill
Human Welfare
= means the health, happiness, and well-being of people
Example: Donating to charity
Goodwill
is the positive feelings people get about a company when it does good things for the community
Example: Ronald McDonald House
Example of philanthropic business initiatives:
Bell Let’s Talk
Tim Hortons Camp Day
Canadian Tire Jump Start
Cause Marketing
Involves a collaboration between a for-profit business and a nonprofit organisation for a common benefit
Can also refers to social or charitable campaign put on by for-profit brands
A brand’s association with a nonprofit will boost their corporate social responsibility
Examples of cause marketing campaigns:
Dawn
Coca Cola
Benefits of Social Responsibility
Save/Make Money
Build reputation
Increase Worker Productivity
Online Business
E-Commerce = (electronic commerce) is business activities conducted via the Internet
E-Tailing = is the selling of products to consumers over the Internet
What is a product
Anything that can be bought or sold
Whatever the business sells to satisfy customers needs
Products can be a: good, a service, or an idea
4 main characteristics of services that present challenges for marketers:
Intangible - No physical characteristics to show clients
Inseparable - Can not be separated from the provider of the service
Variable - Not always delivered the same way
Perishable - Can not be stored for later use
Product Life Cycle
The length of time from a product first being introduced to consumers until it is removed from the market
Product Development
Introduction
Growth
Maturity
Decline
Characteristics of Product Packaging
Consolidation, protection, information, brand identification, promotion
Utility
Utility is what is added to a product: to make it valuable to make it useful to make it worth paying for
Types of utility:
Form Utility - value received in a way that a consumer actually needs/wants
Information Utility - what information was provided to you?
Place Utility - ease of purchasing the product - location/sales channels
Time Utility - when a product or service is available when the consumers
Possession Utility - ease of gaining possession
Types of Prices
List Price = established price of a product, as established on a price tag, or on a price list
Market Price = is the actual price you pay for a product, after any discounts or coupons are deducted
Price Discrimination = is the price the manufacturer recommends to a retailer
Price Fixing = competitors get together to set (fix) prices at very high/low prices
Example: Canadian Industry
competitors get together to set (fix) prices at very high/low prices
Example: Canadian Bread Industry
What does Price Competition lead to (war)
= leads to price wars: where two/more firms try to undercut each other
Price Discrimination
= charges customers different prices for the same product or service based on what the seller thinks they can get the customers to agree to
Example: Airline Industry
Objectives of Pricing
Maximise profit - charge as high as possible
Maximise sales - Low price, high volume
Increase market share - Take sales away from competition
Meet competition - compare to competitors
Return on investment - ROI
Pricing Strategies
Negotiated Pricing - Offering a product at a very low price to attract customers
Penetration Pricing - The price is initially set low in order to attract new customers
Competitive Pricing - This is matching the price of the competitor
Price Skimming - Initially high price for a product/service before competitors enter market
Branding
Consists of all the features that make up a product’s image
Brands are created by using a name, a logo, and a slogan
Together, these features convey the product’s position
What are the goals of branding?
Create a unique brand identity
Create a positive image of the brand
Develop brand loyalty
Creating Good Advertisements (AIDA)
A - Attract Attention
I - Gain Interest
D - Build Desire
A - Get Action
Types of Advertisements:
Television
Radio
Out-of-home (posters, billboards, bus shelters)
Direct-to-home
Internet
Specialty Advertising
Magazines
Newspapers
Types of Sales Promotions
Contests
Refunds/Rebates
Coupons
Premium
Samples
Product placement
Loyalty programs
Discounts
Effective sales promotions focus on the following customer behavioural drivers:
Urgency - ‘act right now’
Availability - ‘it won’t last so don’t miss out’
Exclusivity - ‘this is just for you’
Place
Place revolves around where and how a product/service is sold or marketed
Where is your product sold/advertised?
Locations, method, area
The methods a business uses to sell and distribute its product
International Business
focuses on any commercial activity or transactions between companies, organisations, individuals, or entities that crosses borders into different countries and regions
Domestic Trade
= Trade that occurs within the borders of a nation
International Trade
= The exchange of goods and services between countries
Imports
= Goods and services that are brought in from another country
Exports
= Goods and services sold to other countries
Balance of Trade
Balance of Trade = Difference between a country’s value of imports and value of exports
Exports - Imports = Trade Balance
Exports > more than Imports = Trade Surplus or positive trade balance
Imports > more than Exports = Trade Deficit or negative trade balance
Trade Barriers
Trade barriers - specific restrictions on international trade for the benefit of a domestic economy
Examples:
Tariffs (also called a duty) is a tax on imports
Quotas = Limits the quantity or the monetary value of a product that may be imported
Embargo = is a total ban on specific goods coming in to and leaving a country
Global Strategy
A global strategy consists of one marketing mix for all markets
Standardisation - When a business uses the same marketing strategy from one country to the next
Example: Coca Cola
Adaptation Strategy
The adaptation strategy involves making changes in product and/or promotion to meet the target market’s culture, needs, and wants
Example: McDonald’s menu in India and Japan
Customised Strategy
A customised strategy involves developing a totally new product to meet specific target market needs
Example: Furniture Company making a new product for third world countries
Cultural Framework
→ Elements of culture to consider when marketing internationally
Language
Religion
Values and Attitudes
Aesthetics
Education
Laws and Politics
Technology
Social Organization
Applying the Marketing Mix Internationally
Promotion
Media challenges such as technology availability (radio, Internet, T.V.)
Language challenges such as literacy rates, variations, and understanding
Personal selling challenges such as work ethic and training
Cultural issues such as religion and holidays
Applying the Marketing Mix Internationally
Product
Quality, design, benefits of use
International product decision-making
Centres on whether to standardise or modify the product for the local market
Design of product must not offend local market
Applying the Marketing Mix Internationally
Price
The cost of manufacturing, distributing, and marketing your product
The physical location of production plants might influence price
Fluctuations in exchange rates affect pricing
The price that the international consumer is willing to pay for your product
Business environment factors such as government: policy and taxation
Applying the Marketing Mix Internationally
Place
Exporting or licensing
Franchising
Home manufacture vs foreign assembly/foreign manufacture
Shipping infrastructure
Distribution challenges (bodies of water, roads, distance, etc)
