Podcast
Questions and Answers
What does the marketing mix consist of?
What does the marketing mix consist of?
Which of the following is NOT a focus of marketing fundamentals?
Which of the following is NOT a focus of marketing fundamentals?
What is meant by the term 'target market'?
What is meant by the term 'target market'?
Which of the following can be marketed?
Which of the following can be marketed?
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What is an essential part of the marketing process?
What is an essential part of the marketing process?
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What is the first step in the market research approach?
What is the first step in the market research approach?
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Which of the following is NOT a part of the marketing mix influences?
Which of the following is NOT a part of the marketing mix influences?
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What type of research involves collecting observational data, surveys, and experiments?
What type of research involves collecting observational data, surveys, and experiments?
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Cognitive dissonance occurs in which stage of the consumer purchase decision process?
Cognitive dissonance occurs in which stage of the consumer purchase decision process?
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Which situational influence refers to factors like mood or momentary conditions affecting purchase decisions?
Which situational influence refers to factors like mood or momentary conditions affecting purchase decisions?
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What does the concept of 'customer lifetime value' primarily focus on?
What does the concept of 'customer lifetime value' primarily focus on?
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Which of the following is NOT a step in the Environmental Scan process?
Which of the following is NOT a step in the Environmental Scan process?
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Which market structure is characterized by a few firms dominating the market?
Which market structure is characterized by a few firms dominating the market?
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What does the acronym CREST stand for in the context of an environmental scan?
What does the acronym CREST stand for in the context of an environmental scan?
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Which of the following best describes 'greenwashing'?
Which of the following best describes 'greenwashing'?
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Which of the following is NOT a form of market segmentation?
Which of the following is NOT a form of market segmentation?
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Which segmentation variable focuses on the characteristics of location?
Which segmentation variable focuses on the characteristics of location?
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What is the first step in the market segmentation process?
What is the first step in the market segmentation process?
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Which secondary data source is specifically known for providing statistics and market research?
Which secondary data source is specifically known for providing statistics and market research?
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In segmentation variables, which category would include lifestyle choices and values?
In segmentation variables, which category would include lifestyle choices and values?
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What are the four characteristics that define the uniqueness of services?
What are the four characteristics that define the uniqueness of services?
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Which component of the Total Product Concept refers to the basic benefit a customer seeks?
Which component of the Total Product Concept refers to the basic benefit a customer seeks?
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What classification of consumer products includes items that require little effort in purchasing?
What classification of consumer products includes items that require little effort in purchasing?
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Which of the following brand strategies involves using an existing brand name to launch a new product in a different category?
Which of the following brand strategies involves using an existing brand name to launch a new product in a different category?
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What type of brand is known for having a unique image and commands a premium price due to perceived quality?
What type of brand is known for having a unique image and commands a premium price due to perceived quality?
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Study Notes
Marketing Fundamentals
- Role of Marketing: Focuses on understanding customer needs and wants, creating value for customers.
- Target Market: A specific group of consumers that a company aims to reach with its marketing efforts.
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Marketing Mix (4 Ps):
- Product: The good, service, or idea being offered to customers.
- Price: The amount customers pay for the product.
- Place: The distribution channels used to make the product available to customers.
- Promotion: Activities used to communicate with customers and promote the product.
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Marketing Process:
- Identifies consumer needs,
- Manages the marketing mix,
- Aims to achieve profits.
- What can be marketed: Goods, services, and ideas.
- What is a market: A group of potential buyers with the desire and ability to acquire a specific offering.
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Evolution of Business Philosophies: Different orientations have shaped business practices:
- Production Orientation: Focus on efficient production & low costs.
- Sales Orientation: Emphasizes selling and achieving sales targets.
- Marketing Orientation: Focuses on understanding and meeting customer needs.
- Relationship Marketing: Building long-term relationships with customers.
- Customer Relationship Management (CRM): Strategies for managing relationships with customers to retain them and build loyalty.
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Key Concepts:
- Share of Wallet: Proportion of a customer’s spending allocated to a specific company or product.
- Customer Lifetime Value (CLV): Total revenue a business expects to generate from a customer over their relationship.
- Corporate Social Responsibility (CSR): Businesses taking responsibility for their impact on society and the environment.
- Greenwashing: Making false or misleading claims about the environmental friendliness of products.
- Societal Marketing Concept: Considering the needs of consumers, the company, and society.
The Marketing Environment
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SWOT Analysis: Evaluates a company's internal and external environments:
- Strengths: Internal capabilities that give a company an advantage.
- Weaknesses: Internal factors that hinder a company's performance.
- Opportunities: External factors that could benefit the company.
- Threats: External factors that could harm the company.
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Environmental Scan (CREST): An ongoing assessment of external factors:
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Competitive Forces:
- Direct Competitors: Offer similar products or services.
- Indirect Competitors: Offer alternative solutions to the same customer needs.
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Market Structures:
- Monopoly: One dominant firm.
- Oligopoly: Few dominant firms.
- Monopolistic Competition: Many firms with differentiated products.
- Perfect Competition: Numerous small firms with similar products.
- Regulatory Forces: Government agencies and regulations that affect businesses.
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Economic Forces:
- Macroeconomic Forces: Affect the overall economy (GDP, inflation, recession, interest rates, unemployment rates).
- Microeconomic Forces: Affect individual consumers and businesses (gross income, disposable income, discretionary income).
- Socio-Cultural Forces: Social trends, values, and demographics that influence consumer behavior.
- Technological Forces: Innovations and advancements that impact businesses.
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Competitive Forces:
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Steps in the Environmental Scan:
- Collect information and identify trends.
- Determine the impact of each trend on the business (opportunity, threat, or neutral).
- Generate and implement ideas to achieve business objectives.
Consumer Behavior
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Consumer Purchase Decision Process (5 Steps):
- Problem Recognition: Recognizing a discrepancy between an actual state and a desired state.
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Information Search: Gathering information about potential solutions.
- Internal Search: Relying on past experiences and knowledge.
- External Search: Seeking information from external sources.
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Evaluation of Alternatives: Evaluating the potential solutions based on various criteria.
- Evaluative Criteria: The factors used to compare alternatives.
- Evoked Set: A group of products that a consumer considers during their purchase decision.
- Purchase Decision: Choosing a specific product or service.
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Post-Purchase Behavior: Evaluating the purchase decision and experiencing satisfaction or dissatisfaction.
- Cognitive Dissonance: Doubts or anxieties after making a purchase.
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Involvement and Problem-Solving Variations:
- Routine Problem Solving: For low-involvement purchases, often habitual.
- Limited Problem Solving: For moderate-involvement purchases, involving some information gathering.
- Extended Problem Solving: For high-involvement purchases, involving extensive research and evaluation.
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Consumer Purchase Decision Process Influencers:
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Marketing Mix Influences:
- Product: Product features and benefits.
- Price: Cost of the product.
- Place: Availability and distribution channels.
- Promotion: Marketing messages and communication.
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Situational Influences: Factors influencing purchase behavior at a specific time and place:
- Purchase Task: The reason for the purchase.
- Social Surroundings: The presence of other people.
- Physical Surroundings: The environment in which the purchase takes place.
- Temporal Effects: Time constraints and time of day.
- Antecedent States: Mood, financial status, or other momentary conditions.
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Marketing Mix Influences:
Market Research, Metrics and Analytics
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Types of Market Research Design:
- Exploratory Research: Explores the problem, seeking insights and understanding.
- Descriptive Research: Describes the characteristics of a market or population.
- Causal Research: Determines cause-and-effect relationships between variables.
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Market Research Approach (Steps):
- Define the Problem: Clearly identify the research objective.
- Design the Research Plan: Determine data requirements, research methods, and sampling strategy.
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Collect Relevant Information: Gather both primary and secondary data.
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Primary Data: Data collected specifically for the current research.
- Qualitative Research Methods: Focus groups, in-depth interviews, online research communities, online bulletin boards, social listening.
- Quantitative Research Methods: Observational research, surveys and questionnaires, experiments.
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Secondary Data: Existing data collected for other purposes.
- Internal Data: Sales records, customer databases, website analytics.
- External Data: Industry reports, government statistics, published articles, financial data.
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Primary Data: Data collected specifically for the current research.
- Compile, Analyze, and Interpret Data: Organize the data, analyze relationships, and draw conclusions.
- Generate Reports and Recommendations: Communicate findings, insights, and recommendations for action.
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Secondary Data Sources:
- General Data: Statista, Passport (Euromonitor), IBISWorld, Environics, Simply Analytics.
- News and Business Publications: Google News (Forbes, etc.), Harvard Business Review, Fortune, Adweek, Business Today, Consumer Reports.
- Market Research Companies: Nielsen, Kantar, Gartner, IPSOS, etc.
Segmentation, Targeting and Positioning
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Market Segmentation: Dividing the market into distinct groups with similar characteristics.
- Consumer Market: Individuals and households who purchase goods and services for personal consumption.
- Business Market: Organizations that purchase products and services to use in their operations.
- Product Differentiation: Creating variations in products or services to appeal to different market segments.
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Forms of Market Segmentation:
- Mass Marketing: Targeting the entire market with a single product or marketing message.
- Segment Marketing: Targeting specific segments with different products or marketing messages.
- Niche Marketing: Targeting a narrow, specialized segment with tailored products and marketing.
- Individualized Marketing: Tailoring products and marketing efforts to individual customers.
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Segmentation Variables in Consumer Markets:
- Geographics: Location, climate, and population density.
- Demographics: Age, gender, income, education, occupation, ethnicity, family size, and household life cycle.
- Psychographics: Lifestyle, values, attitudes, interests, and personality.
- Behaviouristics: Purchase behavior, usage patterns, brand loyalty, and response to marketing campaigns.
- Target Market Profile and Personas: Detailed descriptions of the ideal customer within a target segment.
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Steps in Market Segmentation:
- Identify consumer needs and common characteristics.
- Cluster common variables into meaningful market segments.
- Estimate the size and feasibility of each segment.
- Select the target segment(s).
- Develop marketing programs to reach the target segments.
- Monitor and evaluate the success of these programs.
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Product Positioning: Creating a desired image and unique value proposition for a product in the minds of target customers.
- Image Positioning: Positioning based on a specific image or personality.
- Product Attribute Positioning: Positioning based on key product features or benefits.
- Price Positioning: Positioning based on price and value.
- Positioning Statement: A concise summary of a product's target market, competitive advantage, and unique value proposition.
- Repositioning: Changing a product's image or position in the market to appeal to a new target audience.
- Positioning Maps: Graphical representations of how different products or brands are perceived by consumers.
Products and Brands
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Types of Products:
- Non-Durable Goods: Consumed quickly and have a short lifespan (e.g., food, beverages, clothing).
- Durable Goods: Have a longer lifespan and can be used repeatedly (e.g., appliances, electronics, cars).
- Services: Intangible activities or benefits provided to customers (e.g., banking, healthcare, tourism).
- Virtual Services: Services delivered through online platforms or digital channels.
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Uniqueness of Services (4 I’s):
- Intangibility: Services cannot be touched or physically examined before purchase.
- Inconsistency: Service quality can vary depending on who provides the service and when.
- Inseparability: The production and consumption of services often occur simultaneously.
- Inventory: Services cannot be stored or inventoried for later use.
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Total Product Concept:
- Core Product: The fundamental benefit or value that a customer seeks.
- Actual Product: The tangible features and attributes of the product.
- Augmented Product: The additional services, benefits, and experiences provided beyond the actual product.
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Packaging and Labeling:
- Function: Protecting the product and facilitating storage, display, and transportation.
- Communication: Providing information about the product, ingredients, usage instructions, and nutritional content.
- Brand Image: Creating an image and establishing a brand identity through design, colors, and graphics.
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Product Lines and Product Mixes:
- Width: The number of different product lines offered by a company.
- Length: The total number of products in all product lines.
- Depth: The number of variations within a specific product line.
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Consumer Product Categories/Classifications:
- Convenience Products: Frequently purchased items that are readily available and inexpensive (e.g., groceries, snacks, toiletries).
- Shopping Products: Products that involve more comparison shopping and require more thought before purchase (e.g., clothing, electronics, furniture).
- Specialty Products: Unique products with distinct characteristics that consumers are willing to search for and pay a higher price (e.g., luxury cars, designer handbags, rare antiques).
- Unsought Products: Products that consumers are not actively seeking or may not even know exist (e.g., insurance, funeral services, encyclopedias).
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Branding: Creating a name, symbol, design, or other feature that identifies a product and differentiates it from competitors.
- Brand Equity: The positive value associated with a well-known and respected brand name.
- Brand Elements: The specific components that make up a brand (e.g., brand name, logo, slogan, packaging, color scheme).
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Brand Strategies:
- Individual Brand: Each product has its own unique brand name (e.g., Tide, Crest, Pampers).
- Family Brand: Multiple products share the same brand name (e.g., Kellogg’s, Samsung, Toyota).
- Brand Extension: Using an existing brand name to launch a new product in a different category (e.g., Crest toothpaste launching Crest mouthwash).
- Sub-Brand: Adding a modifier or descriptor to an existing brand name (e.g., Toyota Corolla, Toyota Camry).
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Protecting Brands:
- Patents: Exclusive rights for inventions.
- Copyrights: Protection for original works of authorship.
- Trademarks: Protection for brand names, logos, symbols, and other identifying features.
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Brand Names:
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Key Characteristics:
- Memorable and easy to pronounce.
- Should suggest the product's benefits or features.
- Should be legally available and appropriate for the target market.
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Key Characteristics:
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Types of Brands:
- Manufacturer’s Brand: Brands owned and marketed by the manufacturer (e.g., Nike, Apple, Coca-Cola).
- Private-Label Brand: Brands developed by retailers and sold exclusively through their stores (e.g., Great Value, Kirkland Signature).
- Generic Brand: Unbranded products that are typically offered at lower prices (e.g., generic medications, store-brand groceries).
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Description
Test your knowledge on the core concepts of marketing fundamentals. This quiz covers topics such as the marketing mix, target markets, and market research approaches. Perfect for students and professionals looking to refresh their understanding of marketing principles.
