Podcast
Questions and Answers
Which stage involves sharing the concept with potential buyers to gauge their reaction?
Which stage involves sharing the concept with potential buyers to gauge their reaction?
What is typically assessed during the 'Evaluate Results' stage?
What is typically assessed during the 'Evaluate Results' stage?
What aspect of marketing must be culturally sensitive when operating in global markets?
What aspect of marketing must be culturally sensitive when operating in global markets?
Which factor must be adapted based on local cultural, religious, and language requirements?
Which factor must be adapted based on local cultural, religious, and language requirements?
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Which issue is related to the financial aspects that marketers must consider when entering a new market?
Which issue is related to the financial aspects that marketers must consider when entering a new market?
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What is the primary function of branding in a business?
What is the primary function of branding in a business?
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What might cause brand dilution?
What might cause brand dilution?
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Which factor does NOT belong to consumer adoption factors?
Which factor does NOT belong to consumer adoption factors?
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Why do firms launch new products?
Why do firms launch new products?
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What role does packaging play in marketing?
What role does packaging play in marketing?
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What is the benefit of brand extension?
What is the benefit of brand extension?
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Which is a component of brand equity?
Which is a component of brand equity?
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What does trialability relate to in new product adoption?
What does trialability relate to in new product adoption?
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What is a primary purpose of a corporate mission statement in a marketing plan?
What is a primary purpose of a corporate mission statement in a marketing plan?
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Which of the following is NOT a criticism of marketing?
Which of the following is NOT a criticism of marketing?
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What does a SWOT analysis identify in a marketing plan?
What does a SWOT analysis identify in a marketing plan?
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Which of the following best defines direct competitors?
Which of the following best defines direct competitors?
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What is a key characteristic of a sustainable competitive advantage?
What is a key characteristic of a sustainable competitive advantage?
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Which factor does NOT influence consumer buying behavior?
Which factor does NOT influence consumer buying behavior?
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What type of marketing objective should be established in a marketing plan?
What type of marketing objective should be established in a marketing plan?
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In the consumer decision-making process, which step follows the identification of a need?
In the consumer decision-making process, which step follows the identification of a need?
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What is the primary purpose of market segmentation?
What is the primary purpose of market segmentation?
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What does it mean for a segment to be 'reachable'?
What does it mean for a segment to be 'reachable'?
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Which of the following types of data is collected by other sources and already exists?
Which of the following types of data is collected by other sources and already exists?
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What aspect of a study does 'validity' refer to?
What aspect of a study does 'validity' refer to?
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Why is it important for a segment to be 'distinct'?
Why is it important for a segment to be 'distinct'?
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In the context of STP, what does 'targeting' involve?
In the context of STP, what does 'targeting' involve?
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What is a key characteristic of a market segment that is 'considerable'?
What is a key characteristic of a market segment that is 'considerable'?
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Which of the following bases is NOT a common method for segmenting a market?
Which of the following bases is NOT a common method for segmenting a market?
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What are morals primarily concerned with?
What are morals primarily concerned with?
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Which of the following is NOT an ethical issue linked to product marketing?
Which of the following is NOT an ethical issue linked to product marketing?
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Who is primarily responsible for establishing a company's ethical climate?
Who is primarily responsible for establishing a company's ethical climate?
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What does the term puffery refer to in marketing?
What does the term puffery refer to in marketing?
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What is the primary focus of the Canadian Code of Advertising Standards?
What is the primary focus of the Canadian Code of Advertising Standards?
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Which of the following best represents the concept of the Triple Bottom Line?
Which of the following best represents the concept of the Triple Bottom Line?
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Which of the following marketing practices would be considered unethical?
Which of the following marketing practices would be considered unethical?
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How does ethics relate to the marketing concept of 'place'?
How does ethics relate to the marketing concept of 'place'?
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Study Notes
Societal Era: 2000s
- Socially conscious consumers emerged in the 2000s
- Marketers were more mindful of marketing practices, considering factors like pollution and body image
Marketing’s Role in Society
- Marketing encompasses roles such as advertising and media buying
- Marketing contributes to job creation, the development of new products, offering choices, and spreading culture
Criticisms of Marketing
- Marketing is criticized for manipulative practices, propagating social issues, contributing to waste and overconsumption, appropriating cultural concepts, and failing to adhere to regulatory guidelines
Marketing Plan
- A marketing plan outlines a company’s strategies
- A marketing plan should include:
- Corporate mission statement
- Defines the business, target customers, and core competency
- Should be concise, inspiring, and set the tone for stakeholders
- Avoid short-term goals, numbers, and specific details
- Situation Analysis
- Competitive analysis: identify competitor(s), assess their strengths and weaknesses, determine who to focus on and who to avoid
- Direct competitors: Offer the same product/service within the same market
- Indirect competitors: Offer a different product/service within the same market
- SWOT analysis: Assesses internal and external strengths, weaknesses, opportunities, and threats
- Marketing Objectives
- Measurable statements that specify desired outcomes, including the amount of change and the timeframe
- Objectives should be:
- Specific: Clearly defined
- Measurable: Quantifiable
- Achievable: Realistic
- Relevant: Aligned with overall goals
- Time-bound: Have a deadline
- Strategies
- Sustainable Competitive Advantage: Defines how the firm will consistently differentiate itself and maintain its advantage over the long term
- Crucial for a company’s survival
- Types include:
- Customer Excellence: Providing superior customer service
- Operational Excellence: Efficient operations and cost management
- Product Excellence: Offering high-quality, innovative products
- Locational Excellence: Strategic placement
- Growth Strategy: Identifies how the company intends to expand
- Corporate mission statement
Consumer Buying Behavior
- Consumer buying behavior encompasses the activities involved in choosing, purchasing, using, and evaluating products/services
- Multiple factors influence buying decisions, including:
- Situational Factors: External influences, such as time constraints, social settings, and weather
- Internal Factors: Personal perceptions, attitudes, and motivations
- External Factors: Cultural, social, economic, and technological influences
Decision-Making Process
- Consumers follow a series of steps when making purchase decisions:
- Identify a Need: Identifying a need or want, either functional (e.g., food) or psychological (e.g., sense of well-being)
- Information Search: Seeking information about potential solutions
- Evaluate Alternatives: Comparing chosen options
- Purchase Decision: Choosing a product/service
- Post-Purchase Behaviour: Reviewing the purchase and evaluating satisfaction
Data Collection and Analysis
- Primary Data: Collected specifically for a particular research project (e.g., surveys, interviews)
- Secondary Data: Existing data previously collected by others (e.g., databases, government reports)
- Data: Raw numbers, figures, and other information
- Information: Data that has been organized and analyzed
- Sample: A smaller group representing the larger population of interest
- Reliability: Consistency in the results
- Validity: Accuracy of the research methodology in measuring what it is supposed to
- Hypothesis: A statement predicting a relationship between variables
Segmentation, Targeting, and Positioning (STP)
- STP is a marketing strategy that categorizes customers into groups with shared characteristics.
- The steps involved in STP are:
- Segmentation: Identifying groups of customers with similar needs and behaviors
- Targeting: Selecting specific segments to focus on
- Positioning: Creating and enhancing brand equity to appeal to the chosen target market
Market Segmentation
- The process of dividing a market into smaller groups
- Benefits of market segmentation include:
- Better Serve Customers: Cater to specific customer needs
- Grow Business: Gain new consumers, increase sales, revenue, and profits
- Sharpened Marketing Mix: Target specific customer segments with tailored marketing strategies
Geographic Segmentation:
- Based on location and geographic characteristics:
- Continent, province, climate, urban/suburban/rural
Demographic Segmentation:
- Based on personal characteristics:
- Age/life stage, gender, education, religion
Psychographic Segmentation:
- Based on psychological factors:
- Lifestyle, activities, interests, opinions, values, personality
Behavioral Segmentation:
- Based on consumer behaviors:
- Occasion for use, benefits sought, usage rate, degree of loyalty
Targeting
- Involves evaluating the attractiveness of segments and selecting a target market.
- Criteria for a suitable segment include:
- Distinct: Identifiable and unique, minimizing consumer overlap
- Reachable: Accessible to consumers in terms of awareness and availability
- Approachable: Responsive and receptive to the product/service
- Considerable: Economically viable for the company
Branding
- Consists of components that create a brand identity:
- Brand name, logo, character, jingle/slogan
- Benefits of branding include:
- Easier Purchasing: Simplified consumer decision-making
- Product Loyalty: Repeat purchases
- Revenue and Profitability: Increased sales
- Reduced Marketing Costs: Lower promotional expenses due to loyal customers
- Protection from Competitors: Brand recognition and distinction
- Brand Expansion: Supports growth and diversification
Brand Equity
- The value attributed to a well-established brand, encompassing:
- Brand Awareness: Familiarity with the brand
- Brand Associations: Mental links associated with the brand
- Perceived Value: Benefits perceived by consumers relative to price
- Brand Loyalty: Consistent purchase of a specific brand
Brand Extension
- Utilizing a well-known brand name to introduce new products:
- Leveraging existing brand reputation and quality perception
- Synergy among products
- Reduced marketing costs
- Boosts sales of the entire brand
Brand Dilution
- Occurs when brand extensions fail, leading to negative perceptions:
- Product attributes do not align with the brand’s core values
- Consumer confusion about the brand
Packaging
- Adds value for the firm and excitement for customers:
- Projects product contents and communicates key information
- Differentiates brands from competitors
- Contributes to convenience and function
- Can drive impulse purchases and enhance perceived value
Packaging Roles:
- Marketer: Differentiates the brand, promotes seasonal or promotional offers
- Retailer: Ensures stackability, storability, and appealing presentation for consumers
- Consumer: Provides instructions, safety information, dosage, and other usage details
New Product Development
- Reasons firms launch new products:
- Growth: Expand sales, revenue, profits, and market share
- New Market Entry: Market development or diversification
- Respond to Market Dynamics: Address consumer demand or competitive changes
- Revitalize Business: Rejuvenate declining products or services
Consumer Adoption Factors:
- Factors influencing consumer adoption of new products:
- Relative Advantage: Degree of improvement over existing options (e.g., iPads vs. laptops)
- Complexity: Ease of understanding and use
- Compatibility: Alignment with consumer lifestyles and existing practices
- Trialability: Opportunity to test the product before making a purchase
- Observability: Visibility to consumers and their ability to see others using the product
New Product Development Process:
- A series of sequential steps:
- Idea Generation: Sourcing ideas from internal sources, employees, suppliers, competitors, licensing, and customers
- Concept testing: Sharing a product concept with potential buyers to gauge their reactions
- Product Development: Developing prototypes, alpha testing, and beta testing (user testing)
- Market Testing: Pre-testing (limited exposure to potential customers) and market testing (limited launch to evaluate sales)
- Product Launch: Determining launch strategy, timing, distribution, and pricing
- Evaluate Results: Assessing whether the product achieved its objectives and met performance requirements
Global Marketing
- The scope of marketing can range from local to global:
- Local: Operations within a specific region or city
- Regional: Operations within a broader area, such as a province
- Multi-national: Operations across multiple countries
- Global: Operations spanning the world
Issues Facing Canadian Global Marketers
- Challenges faced when expanding globally:
- Culture: Adapting to cultural differences to avoid misinterpretations or offense (e.g., pork consumption restrictions in the Middle East)
- Product: Products suitable for some markets may not be appropriate for others (e.g., cold weather apparel)
- Distribution: Establishing partnerships and local distribution channels
- Legal: Complying with regulations and standards in each host country (e.g., product safety, labeling, etc. )
- Competition: Understanding and adapting to local competitive landscape
- Currency: Navigating currency fluctuations and local payment methods
- Brand: Ensuring brand name is translatable and the logo is culturally acceptable
- Consumer: Reaching, identifying, and understanding the target audience
- Pricing: Adapting pricing based on local perceptions of "fair value"
- Promotion: Customizing advertising campaigns to align with language, culture, religion, and other factors
Adaptation
- Necessary to adjust marketing strategies and products to fit local markets
Ethics in Marketing and CSR
- Ethics: Guidelines for distinguishing right from wrong
- Marketing Ethics: Ethical issues specifically related to marketing practices
The Scope of Ethics
-
Pertain to various business aspects:
- Environmental issues: Ivory poaching, toxic waste dumping
- Labor practices: Exploitation of workers
- Animal testing: Ethical considerations of testing on animals
-
Related to the Four Ps of Marketing:
- Product: Ensuring products are safe, healthy, and not falsely advertised
- Promotion: Preventing misleading, offensive, or deceptive advertising
- Pricing: Avoiding unfair or misleading pricing tactics (e.g., bait and switch)
- Place: Restricting product availability to avoid exploitation of vulnerable groups (e.g., selling products to minors)
Ethical Climate
- The ethical values, rules, and consequences established by senior management
- Leaders must set an ethical example
- Ethics should be integrated into corporate and marketing plans
- Corporate Plans: Mission statements and objectives should reflect ethical considerations
- Marketing Plans: Carefully examine ethical implications in decision-making (e.g., target segment selection, relocation decisions, distribution channel selection, compliance with regulations)
Legal Considerations
- Legal regulations play a role in marketing:
- Compliance: Adhering to legal requirements protects consumers and the brand
- Protection: Safeguarding the organization from risks, exposures, knock-offs, piracy, and other legal issues
- Advocacy: Engaging in lobbying efforts to influence regulations and standards
Puffery
- Exaggerated claims or statements about a product that are not intended to be taken literally
- Consumers are expected to recognize puffery as hyperbole
Canadian Code of Advertising Standards
- Guidelines for marketers and advertisers:
- Promote standards of honesty, truth, accuracy, and fairness in advertising
- Widely accepted and supported by the industry
- Specific sections address ethical considerations in marketing research and other areas
Triple Bottom Line
- A framework for sustainability:
- People: Social and ethical considerations
- Planet: Environmental responsibility
- Profit: Financial performance
- Firms should strive for profitable growth while contributing to societal well-being
Conclusion
This summary outlines the key areas of this course, providing a solid foundation for your learning.
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