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Questions and Answers
What is a primary responsibility of marketing management?
What is a primary responsibility of marketing management?
Which of the following is NOT considered a controllable factor in marketing management?
Which of the following is NOT considered a controllable factor in marketing management?
Which tool is specifically associated with predicting future sales in marketing management?
Which tool is specifically associated with predicting future sales in marketing management?
What aspect does the marketing mix (4Ps) NOT directly address?
What aspect does the marketing mix (4Ps) NOT directly address?
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Which of the following factors is an example of an uncontrollable factor in the marketing environment?
Which of the following factors is an example of an uncontrollable factor in the marketing environment?
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What does a deep product mix refer to?
What does a deep product mix refer to?
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Which of the following is NOT a category of agricultural products?
Which of the following is NOT a category of agricultural products?
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What is a trademark primarily concerned with?
What is a trademark primarily concerned with?
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Which of the following is NOT a part of branding?
Which of the following is NOT a part of branding?
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What characteristic is important for choosing a brand name?
What characteristic is important for choosing a brand name?
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What type of product falls under convenience products?
What type of product falls under convenience products?
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Which of the following is an essential element of a product?
Which of the following is an essential element of a product?
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In product classification, which type would NOT typically involve high consumer risk?
In product classification, which type would NOT typically involve high consumer risk?
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What characterizes a specialty store?
What characterizes a specialty store?
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Which of the following best describes a pulling strategy in promotion?
Which of the following best describes a pulling strategy in promotion?
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What is NOT an objective of promotion?
What is NOT an objective of promotion?
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Which method of promotion includes activities such as price reductions and bonuses?
Which method of promotion includes activities such as price reductions and bonuses?
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What aspect is a major benefit of effective promotion for manufacturers?
What aspect is a major benefit of effective promotion for manufacturers?
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Which type of consumer primarily purchases goods for their own personal use?
Which type of consumer primarily purchases goods for their own personal use?
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What characteristic is NOT typically used to classify customers?
What characteristic is NOT typically used to classify customers?
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Which stage in the consumer's decision process involves recognizing an unfulfilled desire?
Which stage in the consumer's decision process involves recognizing an unfulfilled desire?
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What is a social stimulus in the decision-making process?
What is a social stimulus in the decision-making process?
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Which of the following best describes commercial customers?
Which of the following best describes commercial customers?
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What factor does NOT influence social performance within social characteristics?
What factor does NOT influence social performance within social characteristics?
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Which phase of the consumer decision process involves gathering information after recognizing a need?
Which phase of the consumer decision process involves gathering information after recognizing a need?
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What aspect does NOT typically describe the family life cycle in consumer decision making?
What aspect does NOT typically describe the family life cycle in consumer decision making?
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What is the primary function of transportation in the context of middlemen?
What is the primary function of transportation in the context of middlemen?
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Which middleman is characterized by selling for multiple manufacturers of non-competing goods?
Which middleman is characterized by selling for multiple manufacturers of non-competing goods?
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What aspect does 'transaction' specifically deal with in the context of middlemen functions?
What aspect does 'transaction' specifically deal with in the context of middlemen functions?
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Which role focuses on negotiating sales for others while maintaining some inventory?
Which role focuses on negotiating sales for others while maintaining some inventory?
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What distinguishes a factor from other types of middlemen?
What distinguishes a factor from other types of middlemen?
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Which functional middleman solely represents a single manufacturer's entire output?
Which functional middleman solely represents a single manufacturer's entire output?
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What function is primarily concerned with managing inventory during the sales cycle?
What function is primarily concerned with managing inventory during the sales cycle?
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What is a primary characteristic of the resident buyer?
What is a primary characteristic of the resident buyer?
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What is likely to happen when the price of a material declines in the industrial market?
What is likely to happen when the price of a material declines in the industrial market?
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Which characteristic of the industrial market emphasizes the buyers' purchasing motives?
Which characteristic of the industrial market emphasizes the buyers' purchasing motives?
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Which type of distributor focuses exclusively on a wide range of industrial supplies?
Which type of distributor focuses exclusively on a wide range of industrial supplies?
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How do careful buyers react to an increase in industrial goods prices?
How do careful buyers react to an increase in industrial goods prices?
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What is a common characteristic of industrial purchasers regarding product quality?
What is a common characteristic of industrial purchasers regarding product quality?
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What defines a specialized distributor in the context of industrial supply?
What defines a specialized distributor in the context of industrial supply?
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In the context of industrial goods, what does leasing equipment typically involve?
In the context of industrial goods, what does leasing equipment typically involve?
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What impact can uncertainty in the market have on buyers of industrial goods?
What impact can uncertainty in the market have on buyers of industrial goods?
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Study Notes
Marketing Management
- Marketing management involves analysis, planning, implementation, and control of programs to create desired exchanges with consumers for profit or service. This involves coordinating product, price, place, and promotion to achieve a positive response from target customers.
- Its function is optimizing the use of people and services, essentially driving standards of living.
- Marketing management tools include marketing research, product planning, sales forecasting, marketing planning, and marketing strategy.
Marketing Mix (4Ps)
- The 4Ps of marketing are product, price, place, and promotion.
Marketing Environment
- Controllable factors: Top management directs the product/service category, functional areas, geographic coverage, ownership type, production, finance, accounting, distribution, and R&D. Marketers direct aspects like target market selection, marketing objectives, organizational structure, and the marketing plan.
- Uncontrollable factors: Consumers' characteristics and purchasing behavior, competition, technological advancements, the company's performance level, feedback and adaptation required for success.
Markets & Consumers
- Classifying customers is done based on demographic characteristics, socioeconomic status, psychological/personality characteristics, and product-specific characteristics.
- Types of consumers include ultimate consumers (purchasing for personal use), industrial consumers (purchasing for further processing), commercial customers (buying to resell), and institutional customers (buying under the name of the institution).
Social Characteristics of Consumers
- Consumer behavior is a combination of:
- Culture: encompassing social class ranking within a culture.
- Social performance: anchored in how individuals carry out roles as workers, family members, citizens and friends.
- Reference groups: groups that influence a person's thoughts or actions.
- Family life cycle: the typical evolution of family structures.
- Time expenditures: reflecting changes in work, family, and leisure patterns.
Consumer's Decision Process (6 Stages)
- Stimulus: a cue (social, commercial, or non-commercial) or a drive (physical motivation) that triggers action. This can be social (seller), commercial (advertisements), non-commercial (consumer reports), and physical (pain, hunger, thirst).
- Problem awareness: recognizing a need or shortage.
- Information search: gathering information.
- Evaluation of alternatives: ranking options.
- Purchase: acquiring the selected option.
Consumer Behavior
- Consumer behavior encompasses the acts of individuals in obtaining and using goods and services. It's a function of personal influences and external environmental pressures.
Basic Determinants of Consumer Behavior
- Needs, Motives, Perceptions, and Attitudes.
Environmental Influences
- Social influences, group influences, reference groups, social classes, role of opinion leaders, and cultural influences.
Buying Motives
- Rational: Performance characteristics, economy, durability, serviceability.
- Emotional: Attractiveness, prestige, distinctiveness, comfort, innovation, recreation, and security.
- Patronage: Location, accessibility, reputation of the store, wide selection, and customer service.
Marketing Strategy
- Defines how an organization will achieve its objectives, often focusing on increasing sales volume and profit generation.
Target Market
- Defined set of present and potential customers targeted for satisfaction.
Market Segmentation
- Dividing a market into homogeneous groups (consumer segments) for targeted marketing plans.
Basis of Segmentation
- Geography, demographics, psychography, benefit segmentation, volume segmentation, and marketing factor segmentation are used to segment markets.
Product Strategies
- Products are anything offered for sale, which attracts attention and facilitates acquisition.
Essential Elements of a Product
- Physical core, function, adaptability, and value.
Categories of Agricultural Products
- Raw/fresh, semi-processed, and processed products.
Product Classifications
- A. Consumption & Tangibility: Durables, Non-Durables and Services.
- B. Effort & Risk: Convenience products, Preference products, Shopping products, and Specialty products.
- C. Levels of Product: Core product, Augmented product, and Formal product.
Product Mix
- A firm's total number of products, categorized as wide (many product lines), deep (many products per line), or consistent (related products).
Branding
- Branding uses symbols, words, letters, designs or combinations to identify products and establish trademarks. Brands have 3 parts- name, mark, and trademark. Brand names are vocalizable parts of the brand that identify goods. Trademarks are brands legally protected for exclusive use by their owners. Choosing a good brand name requires considerations like shortness, ease of spelling and pronunciation, distinctiveness, adaptability, timeliness and avoiding vulgarity.
- Advantages of Branding: Helps customers identify products, purchase quality goods, speeds up shopping, reduces selling time, and helps marketing identify similar products.
- Tests of Brand Effectiveness: Association test measures association with a brand; Learning test measures ease of pronunciation; Memory test tests recalling success; Uniqueness test, determining uniqueness; and Preference test, determines consumer preference.
- Degrees of Brand Preference: Recognition this implies customers remember the brand, preference emphasizes customers insistence based on satisfaction, and insistence that no substitution for the brand is acceptable.
Branding Policies
- Manufacturer vs. distributor's brand, Brand vs. no brand, and Family brand vs. individual brand
Brand Strategies
- Individual branding (naming different products differently), Over-all family branding (same/shared brand name), Brand extension branding (using existing brand on new products), and Multi-brand strategies (multiple brands for a company,).
- Generic branding emphasizes the product category with no company name.
Packaging
- Packaging is the complete presentation of products and involves the proper wrapping, containing, and identification of products. This includes physical containers (cardboard boxes, cellophane, glass, etc.), labels (product name, company logo, ingredients, use instructions), and inserts (coupons, instruction manuals). Packaging objectives include creating consumer/dealer interest, maximizing display area, and serving as an advertising medium to protect and promote products. Good packaging is attractive, recognizable, informative, immediate, textural, dependable, functional, and easy to label. Packaging must consider consumer attitudes toward colors, sunlight protection, damages, contamination, pilferage, and warehousing conditions. Typical issues include the variability of products and packaging materials, especially in the food industry, and related cost issues.
Pricing Strategies
- Price is the monetary value of goods and services. Key pricing objectives include maximizing profits for a product line, promoting long-term company welfare, adapting to diverse market situations, responding to economic fluctuations, devising systematic pricing methods for new products, and determining replacement part prices.
- Manufacturer's pricing strategies: Skimming the market (high initial price, then reduced), moving down the demand curve (higher initial price until market saturation), penetration pricing (low price to quickly gain market share), pre-emptive pricing (low enough to discourage competitor entry), extinction pricing (cost-based pricing), formula pricing (negotiated pricing), and tie pricing (combining product sale with unwanted item).
- Retailer's pricing strategies: Competitive pricing (matching competitor pricing), psychological pricing (odd-cent pricing), unit pricing, price lining (offering products at various price points), and special pricing (seasonal or discounted pricing).
- Pricing problems: Basic pricing level, pricing discounts/allowances, product line pricing, pricing new products.
- Specific pricing policies: Cost-plus pricing, flexible markup, intuitive pricing, less-than-cost pricing, and price maintenance.
- Geographical pricing policies: FOB factory, CIF, zone pricing, and basing-point system.
Distribution Channels
- Include direct distribution (producer to consumer) and indirect (use of middlemen). Middlemen categories include functional middlemen (manufacturer's agents, manufacturer's sales agents, and commission merchants), the broker, the resident buyer, and the factor; resellers, and a formalized system with a set of policies, like intensive, selective, or exclusive distribution. Considerations in channel selection include the number of potential consumers, product complexity, distribution budget, sellers' experience, and geography. Channels deal with both spatial and temporal separation, handling transportation and inventory. Promotion (providing information and persuasion), and transaction (negotiation and transfer of ownership).
Promotional Strategies
- Promotion is the process of influencing a customer to buy a commodity or favorably view an idea, which is commercially significant to the seller.
- Policies include a "pulling" strategy (promote to final consumer directly), and a "pushing" strategy (promotion focused on the members of the marketing channel). Methods of promotion involve advertising (any paid form of non-personal presentation), personal selling (oral presentation), and sales promotions, all non-personal promotion tools (e.g., price off, bonuses, lottery).
- Specific promotion objectives: Identify and attract new customers, introduce new products, increase user base, encourage current customer usage, educate consumers, bring consumers to the retail store, create a fluctuating sales pattern, combat competition, and improve shelf space and display.
Methods of Promotion
- Advertising: visual and oral messages informing and persuading to buy products/services via newspapers, magazines, billboards, transportation, etc.
- Personal selling: oral presentation of products.
- Sales promotions: price discounts, bonuses, lotteries, etc. for immediate consumer inducement.
- Publicity: non-personal methods (e.g., news in media).
Advertising Media
- Newspapers, magazines, radio, television, transportation advertising, and direct mail are common methods.
Sales Promotion
- Defined as activities that generate immediate buying incentives, such as price reductions or bonuses, for consumers or resellers.
Objectives of Sales Promotion
- Identify and attract new customers; introduce new products; increase user base; encourage current customer usage; educate consumers; bring more customers to the store; create a fluctuating sales pattern; combat competition; improve shelf space and display.
Management Decisions Related to Sales Promotion
- Policy determination, market analysis, product/promotion decisions, timing, and spending considerations.
Tools of Sales Promotion
- Publicity, visual advertising, special sales events, contests, and premiums include giveaways and self-liquidating premiums.
Self-Promotion Aimed at Resellers
- Includes buy-back allowances (incentive post-initial deal), buying allowances (temporary price reductions for specific quantities), merchandise allowances (manufacturer payments for promotional efforts), and sales contests.
Product Planning and Development
- Activities for discovering, developing, improving, and finding new uses for products which include idea generation, screening, concept testing, business analysis, test marketing, and commercialization.
Steps in New Product Planning
- Idea generation, screening, concept testing, business analysis, test marketing, and commercialization.
Adoption Process
- A series of stages consumers go through while learning about and adopting a new product (awareness, interest, evaluation, trial, adoption, confirmation).
Product Life Cycle
- A product’s life cycle describes stages involving introductory, maturity, and decline in sales and market demand.
Industrial Marketing
- Focuses on selling to businesses rather than consumers. Industrial goods comprise raw materials, semi-manufactured goods, installations, supplies, and accessories.
Scope of Industrial Market
- Includes manufacturing, construction, transportation, public utilities, mines, services, institutions, and commercial establishments.
Characteristics of Industrial Market
- Derived demand, elasticity of demand, geographical concentration, limited number of buyers, well-informed buyers, quality considerations, and leasing equipment.
Distribution of Industrial Products
- Categorized as general-line distributors, departmentalized distributors, selected-lines distributors, and specialized distributors.
Buying Motives of Industrial Buyers
- Maintaining continuity of supply, minimizing investment, avoiding duplication/obsolescence, ensuring quality, obtaining materials at cost-effective prices, and maintaining the company's competitive position.
Factors Influencing Patronage
- Quality, service, reliability, price, supply continuity, liberal credit, and trade allowances influence customer choice.
International Trading
- Export trade is selling to international markets and can involve direct sales or indirect channels (export brokers, export merchants, or export agents).
- Methods: Direct method (selling directly to international buyers), Indirect method using middlemen (export brokers/merchants/agents); and other considerations regarding tariffs and trade restrictions.
Foreign Trade Barriers
- The use of tariffs (specific duties, ad valorem) and other trade restrictions (preferential tariffs, quantitative restrictions) form obstacles to international trade.
Export Packaging
- Packaging needs to protect consumers, withstand handling and weather activities, and be suited the product's purpose.
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Description
Test your knowledge on key concepts in marketing management with this quiz. Covering topics like the marketing mix, product classification, and branding, you'll assess your understanding of controllable and uncontrollable factors in the marketing environment. Perfect for students pursuing marketing or business management.
