Module 4: Marketing, Promotional Planning, Advertising (Q3) Flashcards
Marketing
Business activities that direct the creation,
development, and delivery of a bundle of satisfaction from the creator to the targeted user.
Core product/service
The fundamental benefit or solution
sought by customers.
Actual product/service
The basic physical product and/or
service that delivers those benefits
Augmented product/service
The basic product and/or service plus any extra or unsolicited benefits to the consumer that may prompt a purchase
Production-oriented philosophy
Emphasizes the product as the single most important part of the business
Sales-oriented philosophy
Emphasizes pushing the product
Consumer-oriented philosophy
- Centers on the consumer and his or her needs
- This philosophy is most consistent with long-term success and
is a two-stage process. - Identifying customer needs
- Satisfying those needs
Consumer Profile (Market Analysis)
A description of the key demographic and
psychological characteristics of potential customers in a target market
Actual sales forecast (Market Analysis)
- Should include the most likely, best-case, and worst-case scenarios.
- Includes the major benefits to customers provided by the new product or service.
Existing competitors (Market Analysis)
- Key management personnel profiles,
competitors’ overall strengths and weaknesses. - Existing related products or those possibly in the pipeline.
SWOT Analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
Marketing Strategy
. Market analysis and information on competition provide the
basis of the marketing strategy.
ii. A good marketing management system should include:
iii. Marketing mix should be addressed (the “4 Ps”).
iv. The Product/Service Section
v. Place—The Distribution Section
vi. The Pricing Section
vii. The Promotion Section
Marketing research
- The gathering, processing, interpreting, and reporting of market information.
- Estimate projected costs and compare costs with benefits.
- Using an expert can be money well spent.
Step 1 in the Marketing Research Process
- Identify the Informational Need
- Search for Secondary Data
- Collect Primary Data: New market information that is gathered by the firm conducting the research
- Interpret the Data Gathered
Market
A group of customers or potential customers who have purchasing power and unsatisfied needs
- A market must have buying units, or customers.
- Customers in a market must have purchasing power.
- A market must contain buying units with unsatisfied needs
Market segmentation
The division of a market into several
smaller groups, each with similar needs
Segmentation variables
The parameters used to distinguish one form of market behavior from another
Benefit variables
Specific characteristics that distinguish market segments according to the benefits sought by customers
Demographic variables
Specific characteristics that describe customers, their purchasing power, their consumption patterns, and other factors.
Sales Forecast
- A prediction of how much of a product or service can be sold within a given market during a specified time period
- Essential component of business plan because it is critical to assessing the feasibility of a new venture
Promotion
Marketing communications that inform and
persuade consumers
Sales promotion
a plan which provides inducements to potential purchasers of products and/or services
The Promotional Mix
A blend of nonpersonal, personal, and special forms of communication aimed at a target market
Prospecting
A systematic process of continually looking for
new customers.
- Personal referrals
- Impersonal referrals
- Marketer-initiated contacts
- Customer-initiated contacts
Advertising
A strategy to sell by informing, persuading, and
reminding customers of the availability or superiority of a firm’s products or services
Product advertising
A presentation designed to make potential customers aware of a specific product or service and create a desire for it
Institutional advertising
A presentation of information about
a particular firm, designed to enhance the firm’s image in order to make its product advertising more credible and effective
Where to Advertise
- Most small firms restrict either geographically or by customer type.
- Media should reach, but not overreach, firm’s present or desired target market.
- Combination of media depends on type of business and its current circumstances.
Sales promotion
- An inclusive term for any promotional
technique other than personal selling and advertising that stimulates the purchase of a particular product or service. - Used in combination with personal selling and advertising
Branding
A method of applying verbal and/or symbolic means to identify a product or service
Personal Selling
A face-to-face meeting with a customer
Publicity
A promotional strategy that provides visibility for a business at little or no cost
