Podcast
Questions and Answers
What is the primary goal of marketing?
What is the primary goal of marketing?
Which era of marketing primarily ignored consumer needs?
Which era of marketing primarily ignored consumer needs?
Which of the following is NOT one of the four guiding principles of the marketing concept?
Which of the following is NOT one of the four guiding principles of the marketing concept?
In the consumer decision-making process, what follows the awareness of an unsatisfied need?
In the consumer decision-making process, what follows the awareness of an unsatisfied need?
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What is secondary data in the marketing research process?
What is secondary data in the marketing research process?
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Which factor is considered an individual factor influencing consumer behavior?
Which factor is considered an individual factor influencing consumer behavior?
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What is the main focus of the marketing era?
What is the main focus of the marketing era?
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Which of the following would be an example of a group factor in consumer behavior?
Which of the following would be an example of a group factor in consumer behavior?
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What is the primary purpose of market segmentation?
What is the primary purpose of market segmentation?
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Which of the following is considered a core product aspect?
Which of the following is considered a core product aspect?
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In the multi-segment approach, what marketing strategy is applied?
In the multi-segment approach, what marketing strategy is applied?
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Which variable would be categorized under psychographic segmentation?
Which variable would be categorized under psychographic segmentation?
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What is the aim of target marketing?
What is the aim of target marketing?
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Which aspect of a product provides the future potential for modifications or changes?
Which aspect of a product provides the future potential for modifications or changes?
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An example of a non-durable product would be:
An example of a non-durable product would be:
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What distinguishes tangible products from intangible products?
What distinguishes tangible products from intangible products?
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Which pricing strategy involves setting a high price for new and unique products?
Which pricing strategy involves setting a high price for new and unique products?
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In which stage of the Product Life Cycle is the focus on selling mainly to the existing customer base?
In which stage of the Product Life Cycle is the focus on selling mainly to the existing customer base?
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What is meant by exclusive market coverage?
What is meant by exclusive market coverage?
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What type of distribution involves direct selling from the manufacturer to the consumer?
What type of distribution involves direct selling from the manufacturer to the consumer?
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Which pricing adaptation strategy aims to stay competitive with the market price?
Which pricing adaptation strategy aims to stay competitive with the market price?
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What does reverse logistics refer to?
What does reverse logistics refer to?
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Which of the following factors does not influence the choice of distribution channels?
Which of the following factors does not influence the choice of distribution channels?
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Which logistics concept refers to managing everything in the supply chain as a single entity?
Which logistics concept refers to managing everything in the supply chain as a single entity?
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What type of brand represents a product without any specific brand name given by the manufacturer?
What type of brand represents a product without any specific brand name given by the manufacturer?
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Which phase of new product development involves the removal of product ideas that are not viable?
Which phase of new product development involves the removal of product ideas that are not viable?
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What is brand loyalty characterized by when consumers refuse to accept substitutes for a brand?
What is brand loyalty characterized by when consumers refuse to accept substitutes for a brand?
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Which of the following is NOT a factor involved in developing the marketing strategy for a product?
Which of the following is NOT a factor involved in developing the marketing strategy for a product?
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What does product differentiation focus on?
What does product differentiation focus on?
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What type of goods requires a special purchasing effort from consumers?
What type of goods requires a special purchasing effort from consumers?
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Which product strategy concerns the organization's long-term approach to its product line?
Which product strategy concerns the organization's long-term approach to its product line?
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What is the first step in the new product development process?
What is the first step in the new product development process?
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Study Notes
Marketing's Main Goal
- Maximizing profitability in the long term
The Importance of Marketing
- Defines customer needs and wants
- Directs resources to meet them
The Marketing Concept
- Profit orientation: Focus on customer satisfaction to make a profit
- Consumer orientation: See the customer as 'king' and satisfy their needs
- Social Responsibility: Act responsibly toward society, contribute to its wellbeing
- Organizational integration: All functions work together to meet customer needs
The Evolution of Marketing
- Production Era: Focused solely on producing goods, ignoring consumer needs.
- Sales Era: Focused on selling, ignoring consumer needs.
- Marketing Era: Recognises the importance of the consumer and aims to satisfy their needs.
Consumer Behaviour Explained
- Individual Factors: Motivation, attitudes, perceptions, learning ability, personality, lifestyle
- Group Factors: Family, reference groups, opinion leaders, cultural groups, social class
The Consumer Decision-Making Process
- Awareness of an unsatisfied need or problem
- Gathering information on how to solve it
- Evaluating possible solutions
- Deciding on a course of action
- Post-purchase evaluation
The Marketing Research Process
- Defining the problem
- Developing hypotheses
- Collecting data
- Determination of secondary data need
- Selection of primary data collection instrument:
- Observations (recording of behavior)
- Experimentation (usually conducted in a lab or field setting)
- Surveys
- Sample selection
- Training of field workers
- Processing, analyzing, and interpreting information
- Compiling a research report and making recommendations
Market Segmentation, Target Marketing, and Product Positioning
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Market Segmentation: Dividing the total market into smaller, similar groups
- The market aggregate approach: Treats all consumers the same, neglecting segmentation
- The single-segment approach: Directs product offering to one specific group
- The multi-segment approach: Uses the same product for multiple market segments
- Variables for describing the market structure: Demographic (age, gender, education, race), Geographic (provinces, towns, cities), Psychographic (lifestyle, personality, social class), and Behavioral (usage rate, brand loyalty, price sensitivity)
- Target Marketing: Choosing which segment(s) to serve
- Product Positioning: Creating an image of your product in consumers' minds
The Product Decision
- Defines a product by five aspects:
- Core Product: Basic benefit/function it fulfils
- Generic Product: Technical/physical features
- Expected Product: Additional attributes consumers expect
- Augmented Product: Added symbolic value through marketing
- Potential Product: Future modifications/changes
Product Classification
- Differentiating products based on:
- Tangible vs. Intangible: (cannot be touched, such as legal advice, medical consultations)
- Durable (Shopping products, such as cars, furniture, can be used for a longer period) vs Non-durable (Convenience products, such as bread, fruit, milk, have a short lifespan)
Consumer Buying Habits
- Convenience goods: Purchased frequently with little effort
- Shopping goods: Requires more effort and comparison before purchasing
- Specialty goods: Unique products where a special purchasing effort is required
- Unsought goods: Products the customer does not think about
Brand Decisions
- Brand: A mark unique to the product and its manufacturer/marketer
- Types of Brands: Manufacturer brand, generic brand, individual brand, family brand
-
Brand Loyalty: Consumers repeatedly buy from the brand
- Recognition: Consumers recognize the brand and know what it stands for
- Preference: Consumers prefer the brand over other competing brands
- Insistence: Consumers insist on the specific brand and refuse substitutes
- Packaging Decisions: Focuses on protecting, storing, transporting, identifying, and marketing the product
Product Strategies
- Concerns an organization's long-term strategy for its product line
- Product Differentiation: Setting your product apart from similar competing products
- Product Obsolescence: Planned obsolescence or natural obsolescence
- Product Portfolio: The width, length, and depth of your product line
-
New Product Development: Process for introducing new products:
- Development of the product idea
- Screening of product ideas according to the criteria for likely success
- Removal of product ideas that do not appear to be viable
- Development of the physical product by the manufacturing division, where a prototype is manufactured
- Development of the marketing strategy:
- Positioning the product in the market
- Branding the product
- Deciding on the packaging design
- Developing the marketing communication message
- Determining the price to be charged
- Selecting the distribution channel and outlet
- Marketing in a small segment of the market
- Commercialization of the product (introduction into the market)
The Product Life Cycle
- The four stages a product goes through:
- Introduction
- Growth: Marketing communication focuses informing and reminding the consumer
- Maturity: Focus on selling to the existing customer base, reminding them about the product, and surviving price competition
- Decline: Products not meeting requirements or profitable are withdrawn
Distribution Decisions
- The process of making the product available to consumers.
- Direct Distribution: Manufacturer to consumer
- Indirect Distribution: Involves wholesalers or retailers
- Factors influencing the choice of channels: Type of product, market, manufacturer, existing channels
Market Coverage
- How widely a product is distributed
- Intensive: Wide distribution through all possible channels
- Selective: Limited distribution through chosen channels
- Exclusive: Exclusive rights to sell in a specific geographic area
Logistics
- The management of the movement and storage of goods , services, and related information.
- Integrated Logistics: Managing everything in the supply chain as a single entity.
- Reverse Logistics: Taking back products from consumers for recycling, recapturing value, or disposal
- Global Logistics: Internationalization of the supply chain, considering cultural diversity, on-time delivery, and infrastructure
Pricing Decisions
- The process of setting the right price
- Cost Price: The price based on manufacturing and marketing costs
- Market Price: The price that competitors are currently charging
- Target Price: The price needed to achieve a desired rate of return
- Final Price: The price at which a product is offered to consumers
Price Adaptations
- Strategies for adjusting the final price:
- Skimming: High price for new, unique products.
- Market Penetration: Low, initial price to attract customers.
- Market Price: Staying competitive with the market price.
- Perceived Value Pricing: Based on what customers are willing to pay.
- Leader Pricing: Special offers at a lower price to draw customers.
- Odd Pricing: Using odd numbers to make prices seem lower.
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Description
Test your knowledge on the fundamental concepts of marketing, including its evolution, importance, and the role of consumer behavior. Understand how different factors influence customer satisfaction and the profitability of organizations in the long term.
