Podcast
Questions and Answers
What is the primary purpose of promotion in the marketing mix?
What is the primary purpose of promotion in the marketing mix?
To inform, persuade, and remind potential buyers of a product to elicit a response.
According to the AIDA concept, what are the four stages of the promotional goal?
According to the AIDA concept, what are the four stages of the promotional goal?
Define a non-durable good.
Define a non-durable good.
Non-durable goods are tangible goods that are consumed fast and purchased regularly.
Explain the classification of products based on buyer behavior.
Explain the classification of products based on buyer behavior.
Signup and view all the answers
What is the main purpose of branding?
What is the main purpose of branding?
Signup and view all the answers
Packaging serves a practical function to hold the content together and to protect goods as they move through the distribution _____.
Packaging serves a practical function to hold the content together and to protect goods as they move through the distribution _____.
Signup and view all the answers
New product development process is separate from an organization's overall marketing strategy.
New product development process is separate from an organization's overall marketing strategy.
Signup and view all the answers
What is CRM an abbreviation for?
What is CRM an abbreviation for?
Signup and view all the answers
What are QR codes used for?
What are QR codes used for?
Signup and view all the answers
Which devices are included in the social media and mobile technology platforms?
Which devices are included in the social media and mobile technology platforms?
Signup and view all the answers
Web widgets are software applications that run outside existing online platforms.
Web widgets are software applications that run outside existing online platforms.
Signup and view all the answers
What is the purpose of concept testing in a new product strategy?
What is the purpose of concept testing in a new product strategy?
Signup and view all the answers
What is the main objective of test marketing?
What is the main objective of test marketing?
Signup and view all the answers
Price is considered as the key factor for generating revenues.
Price is considered as the key factor for generating revenues.
Signup and view all the answers
Markup pricing uses the cost of buying the product from the producer, plus amount for profit and expenses not otherwise, to calculate the final __________ price.
Markup pricing uses the cost of buying the product from the producer, plus amount for profit and expenses not otherwise, to calculate the final __________ price.
Signup and view all the answers
Match the price strategy with its description:
Match the price strategy with its description:
Signup and view all the answers
What is the primary focus of customer relationship management (CRM)?
What is the primary focus of customer relationship management (CRM)?
Signup and view all the answers
Which of the following are tools for consumer sales promotion?
Which of the following are tools for consumer sales promotion?
Signup and view all the answers
Social media has changed how marketers can communicate with their audience.
Social media has changed how marketers can communicate with their audience.
Signup and view all the answers
______ is any form of impersonal paid communication sponsored by a company.
______ is any form of impersonal paid communication sponsored by a company.
Signup and view all the answers
Match the following promotional tools with their descriptions:
Match the following promotional tools with their descriptions:
Signup and view all the answers
Study Notes
Chapter 4: Product
- A product is everything both favorable and unfavorable that a person receives in an exchange.
- There are two categories of products:
- Homogeneous goods: similar in quality but different in price.
- Heterogeneous goods: product's features are more important than price.
- Classification of products:
- Non-durable goods: tangible goods that are consumed quickly and purchased regularly.
- Durable goods: tangible goods that are used over a long period and require service.
- Services: intangible goods that require quality control and supplier credibility.
- Types of consumer products:
- Convenience products: inexpensive items with little shopping effort.
- Shopping products: medium-priced items with moderate shopping effort.
- Specialty products: unique and special products with high shopping effort.
- Unsought products: unknown products or products not sought by consumers.
Branding
- Three main purposes of branding:
- Product identification
- Repeat sales
- New product
- Benefits of branding:
- Product identification
- Repeat sales
- High brand equity
- Branding strategies:
- Manufacturer's brand vs private brand
- Individual brand vs family brand
- Trademarks:
- Exclusive right to use a brand or part of a brand
- Protects brand name, shape, color, or design
Packaging
- Functions of packaging:
- Containing and protecting products
- Promoting products
- Facilitating storage, use, and convenience
- Importance of packaging:
- Increases sales through longer sales life
- Increases margins
- Increases product loyalty
- More resale opportunities
- Greater market responsiveness
New Product Development
- New product development process:
- Idea generation
- Idea screening
- Business analysis
- Test marketing
- Commercialization
- Importance of new product development:
- Increases sales and profits
- Increases market share
- Improves competitive position
Chapter 5: Price
-
Definition of price:
- The amount given up in an exchange to acquire a good or service
-
Roles of price:
- The sacrifice effect of price
- The information effect of price
-
Importance of price to marketing managers:
- Key to revenues
- Determinant of profit
- Affects customer satisfaction and loyalty
-
Price objectives:
- Profit maximization
- Target ROI
- Satisfactory profits
-
Pricing strategies:
- Markup pricing
- Break-even pricing
- Price skimming
- Penetration pricing
- Status quo pricing
-
Fine-tuning techniques:
- Guaranteed price matching
- Allow the firm to adjust for competition
- Meet ever-changing market conditions### Marketing Channels
-
A marketing channel is a business structure of interdependence, where organizations are involved in the process of making a product or service available for consumption by end customers.
-
Channel members include resellers, intermediaries, and middlemen, such as retailers, merchant wholesalers, agents, and brokers.
-
Channel functions performed by intermediaries:
- Transactional function: contracting, promoting, negotiating, and risk-taking.
- Logistical function: physical distribution, storing, and sorting.
- Facilitating function: researching, financing, and facilitating the sale of a product.
Channel Intermediaries and their Functions
- Retailers:
- Buy mainly from wholesalers and sell to end customers.
- Take title to goods and sell to final customers.
- Merchant Wholesalers:
- Buy goods from manufacturers, take title, and resell to retailers.
- Facilitate the movement of products and services from manufacturers to retailers.
- Agents and Brokers:
- Facilitate the sale of a product by representing channel members.
- Do not take title to goods.
Channel Structures
- Direct channel: producer – consumer.
- Retailer channel: producer – retailer – consumer.
- Wholesaler channel: producer – wholesaler – retailer – consumer.
- Agent/Broker channel: producer – agent – wholesaler – retailer – consumer.
Levels of Channel Distribution Intensity
- Intensive: many intermediaries, convenience goods available everywhere.
- Selective: fewer intermediaries, typically used for shopping goods.
- Exclusive: special resources, used for major industrial equipment or specialty goods.
Retailing
- Retailing: all activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use.
- Types of retailers:
- Department stores: carry a wide variety of shopping and specialty goods.
- Specialty stores: specialize in a given type of product, allowing for refined segmentation strategies.
- Discount stores: compete on the basis of low prices, high turnover, and high volume.
- Convenience stores: carry limited lines of high-turnover goods, often located near residential areas.
- Supermarket: large, self-service retailer specializing in food and nonfood items.
Promotions
- The role of promotion in marketing mix: informs, persuades, and reminds potential buyers of a product.
- Promotional goals: to inform, persuade, and remind.
- The AIDA concept: attention, interest, desire, and action.
Promotional Mix
-
The combination of promotional tools, including advertising, public relations, personal selling, and sales promotion.
-
Advertising: impersonal, one-way communication about a product that is paid for by a marketer.
-
Personal selling: planned presentation to one or more prospective buyers.
-
Sales promotion: short-term incentives to encourage purchase or sales of a product or service.### Public Relations
-
Public relation is the process of making evaluation public to earn public understanding
-
Tools:
- Free sample
- Contest
- Premium
- Trade show
- Vacation gateway
- Coupon organization's mission, vision, and goals
-
Function:
- Evaluates public attitudes
- Identifies areas of public interest
- Executes programs to win public favor
Promotional Mix
- Factors affecting promotional mix:
- Available funds
- Type of buying decision
- Competitive climate
- Push and pull strategies
- Types of advertising:
- Pioneering advertising
- Competitive advertising
- Comparative advertising
- Product advertising:
- To stimulate primary demand for a new product or product category
- Heavily used during the introductory stage of the product life cycle
Sales Promotion
- Consists of all marketing activities other than personal selling, advertising, and public relations that stimulate consumer purchasing and dealer effectiveness
- Tools:
- Coupons and rebates
- Premium
- Loyalty marketing program
- Contest and sweepstakes
- Sampling
- Point of purchase (P-O-P) promotion
- Online sales promotions
- Aimed at end consumers, trade customers, or company employees
Personal Selling
- Advantages:
- Provide a detailed explanation or demonstration of the product
- Sales message can be varied according to the motivations and interest of each prospective customer
- Directed only to qualified prospects
- Cost can be controlled by adjusting the size of the sales force
Customer Relationship Management (CRM)
- Focuses on understanding customers as individuals instead of as part of a group
- Makes communications more customer-specific, like personalized marketing efforts
- Initially popularized as one-to-one marketing, but has become a broader approach to understanding and serving customer needs
- Accomplished by:
- Organizing the company around customer segments
- Establishing and tracking customer interactions with the company
- Fostering customer-satisfying behaviors and linking all processes of the company from its customers through its suppliers
Social Media and Marketing
- Has changed the way marketers communicate with their brands
- Marketers must remember that social media is meant to be a social experience, not a marketing experience
- Platforms include:
- Smartphones (e.g. iPhone, BlackBerry)
- Netbooks and iPads
- QR codes
- Web widgets, also known as gadgets and badges
Ethics and Social Responsibility
- Corporate social responsibility (CSR)
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
This quiz covers the fundamentals of marketing, specifically chapters 4-8, for Universiti Teknologi MARA's MKT243 course.
