Topic 5 : Marketing Flashcards
Peter Drucker claims that the business entreprise has only two (2) basic functions. What are they?
Marketing & Innovation
Give a complete definition of what is Marketing.
Marketing is the group of activities designed to accelerate transactions by creating, distributing, pricing, and promoting goods, services, and ideas.
It is a SYSTEMATIC APPROACH to SATISFY consumers.
T or F : Marketing is only about selling and advertising.
FALSE FALSE FALSE
Name the marketing activities (7)
- Buying and selling
- transporting
- Storing
- Grading
- Financing
- Research
- Risk taking
Customer benefits - Customer cost = _____________
Customer Value
Explain the nature of marketing.
It is a cycle where transactions are made between 2 parties : the seller & the buyer. The seller offers something valuable such as a good, a service or ideas, while the buyer offers Money, credit, labour or goods to obtain the value.
What are the different types of marketing?
-Product-oriented
-Sales-orientes
-Market-oriented
What is a product-oriented marketing?
When consumers favor the products that offer the most QUALITY, PERFORMANCE, or INNOVATIVE features.
What is a sales-oriented marketing?
It is assumed that consumers and businesses will not buy enough of the products.
Accepts that firms should sell and promote the product
Aim is to sell what they make, rather than make what the market wants
What is a market-oriented marketing?
It assumes that the key to achieving firm goals is to be more effective than the competitors in CREATING, DELIVERING, and communicating CUSTOMER VALUE TO THE SELECTED TARGET CUSTOMERS
What is a marketing strategy
A plan of action for developing, pricing, distributing, and promoting products to meet the needs of specific customers
A marketing strategy involves 2 specific concepts. What are they?
- Target market : a specific group of consumers on whose needs and wants are focus of a firm’s marketing efforts
- Marketing Mix : a combination of approaches (7P)
What is a Total market approach?
It is a targeting strategy. When a firm tries to capture all potential customers with similar preferences : Everyone is a potential customer.
What is a market segmentation?
It is a targeting strategy. When a firm divides the total market into group of people who have relatively similar products needs.
What is a market segment?
A collection of individuals/groups/organizations who share one or more characteristics, and thus have relatively similar product needs and desire.
How can we segment a market?
- Geography
- Demographics
- Psychographics
- Benefits
- Usage rate
What is the concentration approach?
Associating one marketing strategy for a single market segment.
What is Niche Marketing?
One marketing strategy for a NICHE (a narrow market segment with specific set of needs)
What is a multi-segment approach.
One marketing strategy for two or more market segments.
The conditions for success in concentration/multi-segment.
- Consumers’ needs for the product must be ____________(1)
-Segments must be _______(2) and ________ (3)
- __________ (4) must be divided in a way that allows to compare the estimates sales potential, cost and _________(5) of the segment
- At least one _________(6) must have enough profit potential to justify the development and maintenance of a special ___________(7)
- _________(8) must be able to reach the chosen market segment with a particular market stratgey.
- Heterogeneous
- Identifiable
- Divisible
- Total market
- Profits
- Segment
- Market strategy
- Firm
Name the 7P of the marketing mix.
- Price
- Place
- Promotion
- Product
- Physical evidence
- People
- Process
What is a product?
Goods, services and ideas
how is this scheme called :
Idea generation -> Product screening -> Concept testing -> Business analysis -> Product development -> marketing testing -> Commercialization
Product development process
What is the type of product that is intended for household/family use? Name what is included
Consumer products
Includes :
- Convenience products (bought frequently without planning
- Shopping products : purchased after the consumer has “shopped around”
- Speciality products : require greater research and efforts. Consumers typically unwilling to accept a substitute
What is the type of product that is used directly/indirectly in the manufacturing process? Name what is included
Business products
Includes :
- Raw materials
- Major equipment
- Accessory equipment
- Component parts
- processed materials
- supplies
- Industrial supplies
What is a product line?
A group of closely related products that are treated as a unit because of similar marketing strategy, production or end-use considerations.
What is product mix?
All the products offered by an organization.
Name the 4 stages of a product Life cycle.
- Introduction
- Growth
- Maturity
- Decline
Which Matrix to use to help identify which product to sell?
BCG Matrix
Name the selling Product identification with the following information :
- Market growth : HIGH, Market share : LOW
- Market growth : LOW, Market share : LOW
- Market growth : LOW, Market share : HIGH
- Market growth : HIGH
Market share : HIGH
- QUESTION MARKS ?
- DOG 🐶
- COW 🐮
- STARS ⭐️
Define what “Branding” is. Explain the main concepts
Branding is the process of naming and identifying products.
The main concepts are :
- Brand name : The part that can be spoken and consists of letters, words and numbers
- Brand mark : the part of the brand that is a distinctive design (Ex : McDonald’s arches)
-Branding : name, term, symbol, design or combination that identifies a product
What are manufacturing brands?
Brands initiated and owned by the manufacturer to identify products from the point of production to the point of purchase.
What are private distributor brands?
They are owned and controlled by a wholesaler or retailer. May cost less than manufacturer brands
What are generic brands?
Products without brand name and often come in simple packages and carry only the generic name.
Give 4 brand strategies
- Each product has its own brand name
- Family of brands under the same name
- Packaging
- Labeling
__________ is the act of designing a company’s offering and image to occupy a distinctive place in the minds of the target market.
Positioning
What is the goal of positioning?
It is to locate the brand in the minds of consumers to maximize the potential benefit to the firm.
What interesting tool can help with the positioning of the firm.
A perceptual map
What is a Price?
The value at which the consumers are willing to pay for a product and the firms are willing to produce (sell) it
Which of the P of the Mix Marketing is directly related to profits?
Price
Which objectives do we wanna reach while setting a price?
- Maximize the profits
- Boost market share
- Maintaining the status quo
- Survival in the industry
Explain the “Penetration price” Pricing strat.
A firm charges a low introductory price to make the consumers aware of the product’s existence and characteristics
Explain the “Price Skimming” Pricing strat.
A firm charges a high introductory price to identify consumers with the highest willingness to pay for the product
Explain the “Psychological pricing” Pricing strat.
The firm encourages purchasing based on emotional, rather than rational response to price
Explain the “Even/Odd pricing” Pricing strat.
A firm assumes that people wil buy more of a product for 9,99$ than 10$ because it seems to be a bargain at the odd price.
Explain the “Symbolic/Prestige pricing” Pricing strat.
Assuming that High prices = High quality.
What is the concept of Promotion?
Promotion encourages consumers to accept products and influences opinions and attitudes.
What is the main difference between ADVERTISING and PUBLICITY?
Advertising is a PAID form of non-personal communication transmitted through a mass medium
while
Publicity is NOT PAID directly by the firm
Differences between advertising and publicity :
Purpose : ADV is informative, persuasive or both, while PUB is mainly _________ (1)
Impact : While PUB rarely does, ADV calls for _________(2)
Cost : ADV is ___________(3) and PUB is ___________(4)
Duration : _________(5) appears once and ___________(6) is repeated often
- Informative
- actions
- Paid
- Free
- Publicity
- Advertising
By what is the promotion mix coordinated?
By the Integrated Marketing Communications
What are the principle of the People (P) in the Marketing Mix
- All companies rely on the PEOPLE who run them
- Essential part of the business as much as the products you are offering
Explain what is the Processes (P) in the Marketing Mix
- Delivery of the products is part of what the consumer is paying for
Explain what is the Physical environment (P) in the Marketing Mix
All products include some physical elements even if the bulk of what the consumer is paying for is intangible
What makes the Marketing Mix important?
- It creates value throughout the marketing mix
- Must be carefully integrated into and effective marketing strategy
-Can help gain competitive advantage, which arises when a company excels at one or more elements of the Marketing mix - Must be aligned with the demand and be adapted when needed
Explain the concept of R&D
Research and Development : investigative activities to improve existing or to develop new products and processes.
