Unit 4 Flashcards
What is marketing?
All activities involved in getting goods and services from the producer to the consumer. Includes research, product development, pricing, advertising, sales, logistics.
What should marketing be?
Consistent yet surprising. Marketers should consider the 4 Ps and 2 Cs.
What are the Four Ps of marketing?
Product, Place, Price, Promotion.
What are the Two Cs of marketing?
Consumers and Competitors.
What does “Product” mean in marketing?
The goods/services offered for sale; may need modifications for international markets.
What does “Place” refer to in marketing?
Where the product is sold; can be B2C (direct to consumers) or B2B (business to business).
What factors can affect the “Price” internationally?
Shipping costs, tariffs, exchange rates.
Name 6 common pricing strategies.
Markup, Penetration, Price Skimming, Premium, Discount, Psychological Pricing.
What is the role of “Promotion” in marketing?
To inform consumers about a product’s availability, features, benefits, and competitive edge.
Who are “Consumers” in marketing?
People who purchase and use products/services; businesses must study and target them.
Name two theories that explain why people buy.
- Thorndike’s Law of Effect which proposes that
people purchase products to gain satisfaction or to avoid
punishment - Maslow’s Hierarchy of
Needs
This theory states
that humans experience
five levels of needs and
that each must be fulfilled
before moving on to the
next
What are direct competitors?
Companies offering almost identical products/services.
What are indirect competitors?
Companies meeting the same need but with different products/services.
What is market research?
Finding and collecting information needed to sell a product/service successfully.
What are types of marketing research?
Consumer research, market research, motivation research, pricing research, competitive research, product research, advertising research.
What is primary research?
Original data collected directly by a company for specific purposes.
What is secondary research?
Using data collected by others; readily available and cheaper.
What are three types of marketing strategies companies may use internationally?
Acquisition, Centralized Marketing, Decentralized Marketing.
What are logistics in marketing?
Acquisition, transportation, and storage of materials from origin to consumption.
What is the difference between production logistics and business logistics?
Production logistics: within a company. Goal is to increase efficiency and production rates while maintaining quality; Business logistics: flow of materials and information between businesses.
What is forward and reverse logistics?
Forward: Products to consumers(Sourcing, warehouse, order, final). Reverse: Handling returns and post-consumption activities(Consumer, reclaimed, distribution, recycled or resale, back to consumer).
What is a supply chain?
The network of activities moving materials from raw state to finished products reaching consumers.
Name the 6 main links in supply chain management.
Inventory, Storage, Cash Flow, Supplier, Information, Physical Distribution.
What is vertical integration?
Owning significant parts or all of the supply chain.
What is horizontal integration?
Expanding by acquiring competitors.
What is containerization?
Using standard metal boxes for storage and shipping.
What is intermodal shipping?
Using multiple modes of transport (e.g., ship, rail, truck) to move goods.
Name five modes of transportation for shipping.
Air, Ocean, Rail, Motorized Carriers, Pipeline.
One advantage and disadvantage of air freight?
Advantage: Fast; Disadvantage: Expensive.
One advantage and disadvantage of ocean freight?
Advantage: Inexpensive; Disadvantage: Limited by being landlocked.
One advantage and disadvantage of rail transport?
Advantage: Good for bulk over long distances; Disadvantage: Slow.
One advantage and disadvantage of motorized carriers?
Advantage: Door-to-door service; Disadvantage: Expensive.
One advantage and disadvantage of pipelines?
Advantage: Fast for liquids/gases; Disadvantage: Environmental risks if damaged.
What are some challenges in managing a global supply chain?
Reliability of sources, oil price volatility, currency fluctuations, weather, natural disasters.
Name two organizations that assist with supply chains in Canada.
Canadian Supply Chain Sector Council (CSCSC) and Innovation, Science and Economic Development Canada (ISED).
Logistics challenges
Transportation, Management, and Cost
Supply chain challenges
- Reliability of sources
- Volatility in oil prices
- Currency fluctuations
What are some pricing strategies?
- Cost-plus pricing
Calculate your cost and add a profit margin - Competitive pricing
Set a price based on the competition charges - Price skimming
Set a high price and lower it as the market changes - Penetration pricing
Set a low price to enter a competitive market and raise the price later
What are consumers traits?
Consumer traits such as values, desires, goals, emotions, interests, and lifestyle choices
Economics
- Disposable income
- Discretionary income
What major factors are causing companies to rethink and restructure global supply chains, according to the WSJ documentary “Why Global Supply Chains May Never Be the Same”?
The COVID-19 pandemic exposed vulnerabilities.
Geopolitical tensions (like U.S.-China relations) increased risks.
