Marketing Fundamentals Quiz

Marketing Fundamentals

• Marketing involves addressing needs and wants.
• Needs are essential necessities for survival.
• Wants are desires that humans have.

Market Share

• Market share represents an organization's portion of total sales within a specific market.
• It's calculated by expressing a firm's sales as a percentage of the total market value.
• Example: If a firm's sales revenue is $100 million in an industry worth $400 million, its market share is 25%.

Market Orientations

• Market Orientation: Focuses on selling products customers want, rather than focusing only on what the company itself can produce.
  • Advantages: Flexibility, less risk.
  • Disadvantages: Significant costs associated with market research.
• Product Orientation: Focuses on selling products that the company excels in, believing that demand will arise.
  • Advantages: High quality products.
  • Disadvantages: Could struggle with customer feedback and potential market trends.

Marketing Planning

• Marketing Planning is a systematic process for setting objectives and strategies to achieve desired goals.
• Process includes:
  • Marketing Audit
  • Marketing Objectives
  • Marketing Strategies
  • Monitoring & Review
  • Evaluation

Marketing Mix (4 Ps)

• The combination of product, price, place, and promotion used to meet customer needs & market goals.
  • Product: Goods or services that satisfy customer needs and wants. Sub-categories include Tangible and Intangible.
  • Price: The amount charged for a product or service. Strategies include skimming/penetration pricing, cost-plus pricing.
  • Place: Distribution channels to deliver the product to the customer. Includes direct and indirect channels, intermediaries such as wholesalers, distributors and agents.
  • Promotion: Attracting customers to a product. This includes branding, above-the-line (e.g., TV ads), and below-the-line (e.g., email marketing) strategies. Different marketing strategies like Pull and Push may be used.

Product

• Product Line: Related products to increase profits.
• Product Mix: Producing multiple product types for variety.

Promotion

• Promotion involves strategies used to attract customers.
• Branding is a strategy to attract customers.
• Above-the-Line: Mass media (TV, radio, print).
• Below-the-Line: Packaging, sponsorships, events and direct mail.

People

• CRM (Customer Relations) Effective attitudes and aptitudes of employees create favorable customer experiences. This determines word-of-mouth promotion and customer lifetime value.

Process

• Process refers to customer service methods to ensure satisfaction.

Physical Evidence

• Physical evidence is the image of a business that is portrayed, regarding its tangible and observable features.

Packaging

• Packaging is the presentation of the product to the consumer
• Packaging can create product differentiation.

Market Segmentation

• Market Segmentation involves splitting a market into distinct groups based on needs or characteristics (e.g., Demographics, Psychographics, and Geographic).

Examples of Market Segmentation

• DINK: Double Income, No Kids
• SILK: Single Income, Lots of Kids
• WOOF: Well-Off Older Folks

Target Marketing

• Niche: Targeting a specific, well-defined market segment.
• Mass: Targeting a large number of different market segments.
• Multi-segment: Tailoring the marketing mix to each segment.

Market Research

• Primary research: Original data specific to a purpose (e.g., surveys, focus groups, mystery shopping).
• Secondary research: Data previously collected for another purpose (e.g., public records, census reports).

Pricing Decisions

• Price Makers: Companies are in control of pricing strategies; for example, having monopoly/oligopoly position in market.
• Price Takers: Companies take the prices that the market offers; for example, firms in highly competitive markets.

Pricing Strategies

• Skimming pricing: High initial prices for new products, often lowered later.
• Penetration pricing: Low initial prices to gain market share and rapidly build awareness.
• Cost-plus pricing: Adding a percentage markup to production costs to calculate selling price.

International & Global Marketing

• International Marketing: Applying marketing principles to multiple countries.
• Global Marketing: Conceptualizing and conveying products/services worldwide.
• Intermediaries: Agents (do not take ownership, receive commissions) and distributors handle tasks of getting products to consumers.

Direct Distribution

• Sales methods from Producer -> Direct consumer (mail, phone, online).

Indirect Distribution

• Involves intermediaries to distribute products.

Place & Distribution

• Place describes how a product or service is distributed.
• Distribution is about getting the right product to the right customer at the correct time, price & place.

Wholesalers, Distributors

• Wholesalers obtain goods in bulk, store them, then resell them to retailers.
• Distributors handle products for one or a small number of manufacturers, selling directly to customers.

B2B and B2C

• B2B: Business-to-Business sales
• B2C: Business-to-Consumer sales
• E-Tailers: Companies that sell products online.

3 Ps of Marketing Services

• People: Employee aptitudes and attitudes determine service quality.
• Process: Customer service methods (satisfaction)
• Physical Environment: Image of the service business.

Promotional Mix (AIDA)

• AIDA: Attention, Interest, Desire, Action.
• A framework for promoting a product. A part of a larger marketing mix.

Traditional Channels of Distribution

• Zero level, one level, two-level distribution channels outline various methods of selling from producer to customer. These often involve intermediaries (wholesalers, distributors, agents).

Regional Trade Blocs

• Free Trade Areas: Countries remove tariffs between each other (but maintain right to set tariffs on non-member countries)
• Customs Unions: Countries adopt common trade tariffs on non-members.
• Common Markets: Countries reduce tariffs and other barriers to trade, allowing free movement of goods, services and factors of production.
• Economic/Monetary Unions: countries adopt a common currency and pursue unified economic policy (e.g., sharing single interest rates, common budgetary policy).

CMS

• CMS stands for Content Management System.
• It's a framework for managing a website.

Objectives of Promotion

• Informs the market about products and services.
• Persuades potential customers to switch to or purchase the product.
• Reminds customers about the product and the business.

Product Life Cycle

• Product Life Cycle: Describes stages in sales from product introduction through maturity and decline.
• The stages include research and development, introduction, growth, maturity, and decline.
• Innovators, Early adopters, Early majority, Late majority, and Laggards represent stages in the adoption of a product.

Promotional Mix (FAB)

• FAB: Features, Advantages, Benefits (a model for generating attention, interest, desire, and action).

Additional Concepts:

• Retailers: Businesses that sell goods to final consumers (Brick and Mortar and E-tailers).