Marketing Principles Quiz

Marketing Mix

• Marketing Mix encompasses all marketing activities, categorized into four Ps: Product, Price, Place, and Promotion.
• Product Mix: Involves research, development, packaging, and branding.
• Price Mix: Refers to the product's price.
• Place Mix: Includes physical distribution, storage, inventory, and channel selection.
• Promotion Mix: Includes advertising, sales promotion, and publicity.

Value Equation

• Value Equation calculates perceived value by subtracting costs from benefits.
• Benefits and costs are assigned numerical values reflecting customer importance.
• Example: A trip to Barbados with benefits (pleasure, prestige, safety, adventure, romance, timing) and costs (money, safety) is evaluated to gauge its likelihood.
• Goal: To adjust costs or benefits to make a product more attractive.

Product Life Cycle

• Traditional product life cycle has five stages: introduction, growth, maturity, and decline.
• Introduction: New product launch, high initial price, focus on early adopters.
• Growth: Crucial for advertising, product either catches on or fails, barrier to entry (costs) are important.
• Maturity: Slower/no sales increase, brand reinforcement, high profit potential, marketers retain brand awareness in the market.
• Decline: Reduced customer base, potential for decline reversal (price changes, redesign), or product removal from the market.
• Nontraditional: Fad, niche, and seasonal products.

Demographics

• Demographics studies observable characteristics categorizing people:
• Age: Pre-customers, Allowance customers, Youth Market, Postsecondary, Family Formation (Nesters), Establishment, Mature Market
• Gender: Products marketed based on gender.
• Family Life Cycle: Different family stages (Single, Married; With/Without children.)
• Income Level: Low, Medium, High income.
• Ethnicity/Culture: Cultural research of the target market.

Unique Selling Proposition (USP)

• USP is a singular product feature not offered by any competitor and unlikely to be developed by them.

Customer Loyalty

• Customer loyalty is synonymous with customer intimacy and relationship marketing.
• Consumers develop a strong relationship with a product or retailer preferring it over competitors, unless major issues arise.

Market Share

• Market share percentage of total product sales of a single company relative to the competitors in a particular market.
• Increased by either increasing market size or gaining competitor sales.

Business Research

• Marketing research collects, interprets, and analyzes information to strategize for marketing successes or solve marketing issues.
• Research is needed if a business expands or faces competition.
• Secondary Data Sources: Books, periodicals, indexes, databases, Internet, Consultants, etc.
• Primary Data Sources: Test marketing, internal company data, surveys, focus groups, observation.

Invention/Innovation

• Invention: A new device, method, or process developed through study and experimentation to satisfy consumer needs.
• Innovation: Changes in products, production methods, or distribution through new technology, features or processes.

Product Development

• Product development stages:
• Idea generation
• Idea screening
• Concept development
• Market strategy
• Feasibility study
• Product design
• Test marketing
• Product launch

Positioning

• Benefit Positioning: Based around product/service benefits.
• Target Positioning: Focused on the specific target audience.
• Price Positioning: Based on the product's price; expensive, cheap, or middle-of-the-range.
• Distribution Positioning: Product's distribution channels.
• Service Positioning: Based around the service provided.

Branding

• Brand encompasses all product-related attributes creating a brand image.
• Created through name, visuals (logo), and slogan for identification.
• Brand Names: Corporate-dominant (e.g., Roots), or product-dominant (associative, e.g. descriptive).
• Logos: Monogrammatic, visual (drawing, etc.), symbolic.
• Slogans: Short catchy phrases.

Brand Strategies

• Support for an Existing Brand: Brand redesign, value equation adjustment to a new target market.
• Brand Extension: Leveraging an established brand for a new similar product.
• Licensing a Successful Brand: Using another brand on your product (Kodiak).
• Co-Branding: Collaboration of two or more brands, mutually beneficial.
• Acquisition of a Successful Brand: Buying a successful brand, potentially integrating it with existing products.

Pricing Strategies

• Market Skimming: High initial price for unique products before competitors enter. High susceptibility to competitor undercutting.
• Penetration Pricing: Low initial price to attract customers. Slower break-even, deters competitors.
• Competitive Pricing: Matching competitor prices, product features or service, advertisement and distribution are deciding factors instead of price being the major one.

Pricing Policies

• Leader Pricing: Generate traffic and encourage other purchases.
• Price Lining: Group similar/same price products together for more profit opportunities.
• Everyday Low Prices (EDLP): Consistent low price, increases customer trust.
• Super Sizing: Larger portion at a higher price.
• Negotiated Pricing: Price negotiation for mutual advantage or less than marked price.
• Combo Pricing: Offering a product bundle deal.

Goals of Advertising

• Brand Awareness and Positioning: Repetition of brand details, positioning message integrated with the awareness effort.
• Brand Trial: Encourages product testing via coupons, free samples.
• Brand Preference: Highlights product advantages/value over competitors.
• Brand Reminder: Reminding consumers of an existing product.
• Brand Repositioning: Adjusting brand image to appeal to a new target market.

Value-Added Services (3.3)

• (Detail not provided in the notes)

Categorization of Information for Tests

• Test 1 - 5: Focus on key concepts like barriers to entry, maturity stage, demographics, market share, product lifecycle, etc., for different tests, and specific descriptions of each.