Marketing Unit 1 test Part A Flashcards
What is Marketing ?
Marketing is the process of promoting, selling, and distributing a product or service to meet consumer needs and drive business growth
What are the 4 Ps of Marketing?
Product, Price, Place, and Promotion
What are the 2 C’s of a Marketing
Competition and Consumer
What does Place mean in the 4 P’s
Ideal locations for your products or
services. Online as well
What does Price Mean in the 4 P’s
With a full understanding of product price can be set. This will impact sales margins
What does Consumer mean (2 C’s)
Person that uses product( Doesn’t mean they bought it eg; bought for them/gift)
What does Promotion mean in the 4 P’s
Includes advertising, public
relations, social media
marketing, email marketing,
search engine marketing,
video marketing and more.
What does Competition mean in the 2 C’s
In marketing, “competition” refers to the rivalry between businesses to attract customers and achieve market share.
What does Product mean in the 4 P’s
Is a tanglible object or service that fufills customer/consumer needs
Direct vs Indirect competition
DIRECT competiton:
- Products that are similar
- Consumers choose among products that are very similar
- Example: Coca-Cola and Pepsi
INDIRECT Competition:
- Every business is in some form a competitor
- Example: Coca-Cola and Milk
Market research
Market research is a process where you study and analysis information to better interpret the market; including target audience, competitors, and industry trends
Product development
The process of creating and developing a new product, involving stages like idea generation, design testing, testing, market introduction
Inventory managment
Inventory management is the process of tracking and controlling stock levels to ensure efficient supply and meet customer demand while minimizing costs.
Law of Demand
As price goes down, demand will go up.
As price goes up, demand will go down.
Market equilibrium
Market equilibrium is a point the quantity demanded equals the quantity supplied, causing a stable market price
Law of supply
As the price of an item goes up, supply of that item
will also go up.
As price of an item goes down, supply will also go
down.
Factors that affect demand
Consumer’s income (i.e. More money=more spending)
Consumer’s taste (i.e. Fashion trends)
Future expectations (i.e. Housing market)
Population change (i.e. More seniors)
Factors that affect supply
Change in # of producers (i.e. Every store sells milk=lots of
supply)
Price of related goods (i.e. Less SUV’s because gas is
expensive)
Technology (i.e. manufacturing machines)
Expectations of future conditions( i.e. Recession= less houses
being built)
Cost of production
What is a customer
Someone that buys products, goods, service ( does not have to use them)
What is target market
A target market is the consumer group to which a particular product is directed and marketed to.
Types of markets
Aggregate market- Marketed to everybody
Differentiated Markets- Markets that are categorized a specific way ( Consumer income, education level, age, gender,)
TQM (Total Quality Management)
Keeping up with quality demands and continuously trying to improve quality.
What is market share
Market share is the portion of the markets that is controlled by a company or products
What are the market segments
Geographic, Demographic, psychographic, Behavioural
Explain the market segments
Geographical-Geographic area in which there is effective competition in the sale of products or services
Based on where the customers live
Climate of the area
Size of the target city
Behavioural-Based on the way customers use the product or act towards the product
What kind of features people like
Brand loyalty
Demographics-Statistics about the population, Age, Generations, Gender, Ethnicity, Income
Psychographic- Based on mental and emotional characteristics of costumers
Hobbies
Social Activities
Lifestyle
Interests
Maslows Hierarchy of needs
(Bottom to Top)
physiological needs(food,water)
Safety needs(security)
Love and belonging(friendship,family)
Esteem(Respect/Self respect, strength)
Self-actualization( Trying to become the best one can be)
What is a competitive advantage in business
factors that allow a company to produce goods or services better or more cheaply than its rivals.
What is sustainable competitive advantage
Sustainable= permanent
A Permanent advantage over your competition
4 ways companies achieve this
Four ways for companies to gain a sustainable competitive advantage?
Unique Selling Proposition
Lower Production Costs
Servicing a Niche Market
Creating Customer Loyalty
What is unsustainble competitive advantage
Non sustainable= temporary
Competitive advantages that can be easily
used by competitors to gain market share
What are non-sustainable competitive advantages for products
Promotion
Place
Price
Quality
Benefits of use
Design features
What are non-sustainable competitive advantages for services
Convenience
quality of service
selection
reputation
price
Push strategys
Product placement in stores
✰ Shelf space/floor space
✰ Dealer incentives
✰ Discounts for retailers
✰ Special displays
✰ prizes
Pull strategies
Creative advertising
✰ Samples
✰ Coupons
✰ Other sales promotion techniques
