Marketing Term 2 Review

Key Aspects of a Product

• A key aspect of a product is its features, which can include its appearance, functionality, and usability.

Pricing

• The term for the amount the customer pays for the product or service is the price.
• One pricing strategy involves setting a high initial price to maximize profits, known as skimming.

Marketing

• The term for all the ways a business communicates with its target market to persuade them to buy is marketing.
• The term for temporary price reductions is promotion.

Distribution

• The term for the management of the flow of products from the manufacturer to the customer is logistics.
• The term for businesses that help distribute and sell the product is intermediaries.

Competitive Advantage

• The primary focus of a company that adopts a Cost Leadership strategy is to minimize costs and offer low prices.
• A key characteristic of a company that adopts a Differentiation Strategy is that it creates unique products or services.
• A potential disadvantage of adopting a Cost Leadership strategy is that it may lead to low-quality products.
• A potential advantage of adopting a Differentiation Strategy is that it can lead to high profit margins.
• The strategy that is likely to result in higher profit margins is Differentiation.
• A key advantage of adopting a Cost Leadership strategy is that it can lead to high sales volume.
• An example of an external factor that can provide a sustainable competitive advantage is access to rare natural resources.
• The primary challenge to sustaining a competitive advantage is that it can be easily replicated by others.
• The term for concentrating on a specific niche or market segment to develop a unique expertise and reputation is niche marketing.
• The term for the ability of a company to learn, adapt, and innovate faster than competitors is organizational agility.
• A key strategy for sustaining a competitive advantage is to continuously innovate and improve products or services.
• The term for the advantage that cannot be easily replicated by others is a sustainable competitive advantage.

Digital Marketing

• A key benefit of digital marketing in terms of reach is that it can reach a global audience.
• A cost-effective aspect of digital marketing is that it can be more cost-effective than traditional marketing.
• A key aspect of measurable results in digital marketing is that it can track and analyze customer behavior.
• A key advantage of digital marketing in terms of flexibility is that it can be easily changed or updated.
• A key benefit of increased brand awareness through digital marketing is that it can lead to increased customer loyalty.
• A key aspect of data-driven decision making in digital marketing is that it can make informed decisions based on data analysis.

Market Research

• The primary purpose of demographics in market research is to identify and understand the characteristics of a target market.
• The goal of market segmentation is to identify and target specific groups of customers with unique needs and wants.
• The primary focus of competitive analysis is to identify and analyze the strengths and weaknesses of competitors.
• The three key types of customer needs are functional, emotional, and social.
• The primary focus of psychographics is to understand the values, attitudes, and lifestyles of customers.
• The benefit of understanding customer needs and wants is that it can lead to the development of products or services that meet those needs.
• The primary goal of market segmentation is to create targeted marketing campaigns that resonate with specific groups of customers.
• The benefit of understanding psychographics is that it can help create targeted marketing campaigns that resonate with customers on a deeper level.