Marketing I Study Guide Course Final PDF

1. Key Terms: American Marketing association: The American Marketing Association is a professional organization for marketers Competitive advantage: A competitive advantage is what sets a company apart from its competitors, in the eyes of its consumers. These advantages allow a company to achieve...

1. Key Terms: American Marketing association: The American Marketing Association is a professional organization for marketers Competitive advantage: A competitive advantage is what sets a company apart from its competitors, in the eyes of its consumers. These advantages allow a company to achieve and maintain superior margins, a better growth profile, or greater loyalty among current customers. Franchise: Franchise marketing is the process of promoting a brand and its multiple businesses Limited Liability Corporation: A business structure that combines the liability protection of a corporation with the tax advantages and operational flexibility of a partnership. Owners, called members, are not personally liable for the company’s debts or liabilities. LLCs are popular for small to medium-sized businesses due to their simplicity and protection. Mixed Management: A management style combining tactical (directive) and strategic (collaborative) approaches, allowing flexibility to adapt based on specific situations or organizational needs. Non-Profit Organization: An organization that operates to fulfill a social, educational, charitable, or cultural mission rather than generating profit. Any surplus revenue is reinvested to advance its goals. Tactical Management: A short-term, hands-on management style focused on immediate objectives and day-to-day operations, often involving direct oversight of tasks and teams. Horizontal Management: A management structure with a flat hierarchy where decision-making is decentralized, promoting collaboration and communication across the same organizational level. Vertical Management: A traditional management structure with a clear chain of command where decisions flow top- down through hierarchical levels. 2. Know different types of SALES POSITIONS: Retail: The sale of goods or services directly to consumers for personal use, typically through physical stores, online platforms, or catalogs.  Telemarketing: A direct marketing strategy where businesses promote or sell products and services over the phone, often involving cold calls or follow-ups. E-Tailing: Short for electronic retailing, it refers to selling goods and services online through websites or digital marketplaces, allowing for direct-to- consumer transactions. Outside Sales B2B: A business-to-business sales approach where sales representatives meet clients in person, outside the office, to build relationships, negotiate, and close deals. 3. Know ETHICAL TERMS: Price Gouging: The practice of raising prices excessively on essential goods or services during emergencies or shortages, often considered unethical and sometimes illegal. Law: Rules and regulations that govern marketing practices, ensuring fairness, transparency, and compliance, covering areas like advertising, consumer protection, and product labeling. Code of Ethics: A formal document outlining an organization’s principles, values, and standards of conduct, guiding employee behavior and decision-making.  Business Ethics: The application of ethical principles in business practices, focusing on fairness, integrity, and social responsibility in operations and decision-making. Better Business Bureau: A nonprofit organization that helps consumers find trustworthy businesses by providing reviews, ratings, and dispute resolution services. Whistleblowing: The act of reporting unethical, illegal, or unsafe practices within an organization to internal authorities or external regulatory bodies. Market Ethics: The moral principles that govern behavior in market transactions, ensuring fairness, transparency, and responsibility in business practices. What is a cover letter? A one-page document sent with a resume that introduces you to a potential employer, highlights your qualifications, and explains your interest in the position. It provides a personalized overview of why you’re a strong fit for the job. What is a resume? A concise document that outlines your professional background, including education, work experience, skills, and achievements, used to showcase your qualifications to potential employers. Who are the best people to use as references? 1. Former Managers or Supervisors: They can speak directly about your job performance and reliability. 2. Colleagues or Coworkers: Ideal if you worked closely together and they can highlight your teamwork and collaboration skills. 3. Professors or Academic Advisors: Great for students or recent graduates to showcase academic achievements and potential. 4. Mentors: They can discuss your growth, abilities, and potential in your field. 5. Clients or Customers: For roles involving customer service or sales, they can highlight your client-facing skills. Avoid using personal friends or family members unless they’ve worked with you professionally. Always ask for permission before listing someone as a reference. What are the four MAJOR ROLES of HUMAN RESOURCE MANAGEMENT? Recruitment and Staffing Attracting, hiring, and retaining qualified candidates to meet the organization’s workforce needs. Training and Development Providing employees with the skills and knowledge needed for their roles, fostering career growth and performance improvement. Performance Management Evaluating and managing employee performance to ensure alignment with organizational goals through feedback, appraisals, and goal setting. Compensation and Benefits Designing and managing salary structures, bonuses, and benefits to attract and retain employees while maintaining fairness and compliance. Define the four leadership styles and give an example for each Autocratic Leadership Definition: The leader makes decisions unilaterally, without much input from others. This style is directive and controlling. Example: A manager in a factory making all operational decisions without consulting employees. Democratic Leadership Definition: The leader encourages participation from team members in decision-making, fostering collaboration and group input. Example: A project manager who holds regular team meetings to gather ideas and feedback before making decisions. Transformational Leadership Definition: The leader inspires and motivates employees to achieve their fullest potential and drive change within the organization. This style focuses on vision and growth. Example: A CEO of a tech startup encouraging innovation, fostering a sense of purpose, and leading through a bold vision for the future. Laissez-Faire Leadership Definition: The leader takes a hands-off approach, allowing team members to make decisions with minimal interference. This style works well with highly skilled and self-motivated teams. Example: A senior consultant letting their team of experts manage projects independently while offering support as needed. What are the five functions of management? Planning The process of setting goals, defining strategies, and outlining tasks and schedules to achieve the organization’s objectives. Organizing Arranging resources (people, equipment, materials) and tasks to implement the plans effectively, ensuring roles and responsibilities are clearly defined. Leading Motivating, guiding, and influencing employees to work toward achieving organizational goals, fostering a positive work environment. Controlling Monitoring and evaluating the progress of plans, identifying any deviations, and taking corrective actions to ensure the organization stays on track. Coordinating Ensuring smooth communication and collaboration across departments and teams to achieve common goals and avoid conflicts. What are the Different structures in which a business can be formed? Sole Proprietorship A business owned and operated by a single individual, where the owner is personally responsible for all debts and obligations. Partnership A business owned by two or more individuals who share responsibilities, profits, and liabilities. Limited Liability Company (LLC) A hybrid structure that offers personal liability protection for owners (members) while providing tax flexibility and operational ease. Corporation A legal entity separate from its owners (shareholders), offering limited liability but subject to more regulatory requirements and taxes. S Corporation A type of corporation that allows income to pass through to shareholders to avoid double taxation, while still providing liability protection. Cooperative (Co-op) A business owned and operated by a group of individuals for their mutual benefit, often in industries like agriculture, retail, or housing. Nonprofit Organization A business formed to pursue a charitable, educational, or social mission, where profits are reinvested in the organization rather than distributed to owners. Franchise A business model where an individual (franchisee) operates a business using the branding, products, and systems of a larger company (franchisor). What are the four types of RISK a business may face? Financial Risk Related to the management of financial resources, such as cash flow problems, debt, or changes in market conditions that can affect profitability. Operational Risk Arises from internal processes, systems, or human error, including issues like equipment failure, supply chain disruptions, or inefficiencies. Market Risk Stems from changes in the market environment, including fluctuations in demand, competition, consumer preferences, and economic conditions. Legal and Regulatory Risk Involves potential legal issues, such as changes in laws and regulations, compliance failures, lawsuits, or intellectual property disputes. What is a SWOT ANALYSIS? A strategic planning tool used to identify and evaluate a business's Strengths, Weaknesses, Opportunities, and Threats. It helps businesses understand internal and external factors that can affect their success. Strengths: Internal factors that give the business an advantage, such as strong brand reputation or skilled workforce. Weaknesses: Internal factors that hinder performance, such as limited resources or outdated technology. Opportunities: External factors or trends that the business can capitalize on to grow or improve, like new markets or emerging technologies. Threats: External challenges that could negatively impact the business, such as competition or economic downturns. Describe the four-decision making? Combination Decision-Making A mix of extensive and limited decision-making, where consumers are somewhat familiar with the product but still need to compare options. Example: Buying a new smartphone. Extensive Decision-Making High involvement decisions for major purchases, requiring research and careful consideration. Example: Buying a car or house. Limited Decision-Making Moderate involvement for products bought before, but still requiring some evaluation. Example: Choosing a new brand of toothpaste. What gives an organization an advantage over its competition? Unique Product or Service Offering Offering something that competitors don't, whether it's a unique feature, innovation, or superior quality. Cost Leadership Being able to offer products or services at a lower cost than competitors, allowing for competitive pricing or higher profit margins. Strong Brand Reputation Building trust and loyalty with customers through consistent quality, customer service, and ethical business practices. Effective Marketing Strong, targeted marketing strategies that reach the right audience and communicate the value proposition effectively. Technological Innovation Leveraging technology to improve products, services, or operations, giving the company an edge in efficiency or customer experience. Customer Relationships Building strong, personalized relationships with customers to increase loyalty and repeat business. Skilled Workforce Having talented, well-trained employees who are motivated and capable of driving the organization’s success. Supply Chain Efficiency A well-managed supply chain that ensures timely delivery, lower costs, and high-quality products. Unit 2: ECONOMIC PRINCIPLES & MARKETING FUNCTIONS/UTILITY 1. KEY TERMS: 1. Balance of Trade The difference between the value of a country’s exports and imports. A positive balance (surplus) means exports exceed imports; a negative balance (deficit) means imports exceed exports. 2. Bear Market A market condition where prices of securities are falling, signaling a pessimistic outlook or decline in investor confidence. 3. Black Market An illegal market where goods and services are bought and sold without government regulation or oversight, often at inflated prices. 4. Bull Market A market condition where prices of securities are rising or expected to rise, often reflecting optimism and confidence in the economy. 5. Contradictory When two economic factors or situations oppose each other or are inconsistent with each other, leading to a conflict or paradox. 6. Dividends Payments made by a corporation to its shareholders, typically out of profits, representing a return on their investment. 7. Expansionary Economic policies or actions aimed at promoting growth, typically through increasing government spending or lowering interest rates to boost demand. 8. Exports Goods or services that are produced in one country and sold to other countries. 9. Grey Market The trade of goods through unauthorized channels, often involving products imported without the permission of the manufacturer or official distributor. 10. Imports Goods or services brought into a country from another country for sale or use. 11. IPO (Initial Public Offering) The first sale of stock by a private company to the public, allowing it to raise capital from external investors. 12. Marketing Concept A business philosophy that focuses on meeting the needs and wants of customers while achieving the organization’s goals. It emphasizes customer satisfaction and long-term relationships.  13. Shortage A situation where demand for a product exceeds its supply, often leading to higher prices or the need for alternatives. 14. Surplus A situation where the supply of a product exceeds demand, often leading to price reductions or excess inventory. 15. White Market A legal and regulated market where goods and services are exchanged according to government laws and standards. What are the five PHASES OF THE BUSINESS CYCLE and ehat do they mean? Expansion (Recovery) This phase is marked by increasing economic activity, rising employment, consumer spending, and business investments. GDP grows, and businesses expand. It's a time of prosperity and optimism. Peak The peak is the point at which the economy is operating at full capacity. It represents the highest point of economic growth before the cycle begins to slow down. Unemployment is low, and inflation may begin to rise. Contraction (Recession) In this phase, economic activity slows down. Consumer demand decreases, businesses cut back on investments, and unemployment rises. A recession is generally defined as two consecutive quarters of negative GDP growth. It can lead to a downturn in the economy. Trough The trough is the lowest point of the business cycle, where the economy hits its bottom. Economic activity begins to stabilize and show signs of recovery. It's a turning point before the economy starts to grow again. Recovery After the trough, the economy begins to recover and move toward expansion. Business investments increase, consumer confidence rises, and employment starts to pick up, leading to growth. List and describe the five types of UTILITY - give examples Form Utility This refers to the value added by transforming raw materials or components into finished products. It involves the production process and how the product is designed to meet customer needs. Example: A car manufacturer turning raw materials like steel and plastic into a fully functional vehicle. Time Utility Time utility is the value added by making a product or service available at the right time when consumers need or want it. Example: Retailers offering seasonal products like Halloween costumes or Christmas decorations during the respective seasons. Place Utility Place utility involves making products available in the right location, making it convenient for consumers to purchase them. Example: A fast-food restaurant located in a busy shopping mall or a convenience store near a highway exit. Possession Utility This refers to the value added by making it easy for customers to take ownership of a product or service. It involves facilitating the transfer of goods or services to the consumer. Example: A company offering flexible payment options (installment plans, credit) for expensive items like furniture or electronics. Information Utility Information utility refers to the value added by providing consumers with the necessary information to make informed purchase decisions. Example: A website providing detailed product descriptions, reviews, and how-to guides for customers shopping for electronics. What is the law of supply? The law of supply states that, all else being equal, the quantity of a good or service supplied by producers increases as its price rises and decreases as its price falls. In other words, there is a direct relationship between price and quantity supplied. When the price of a product goes up, producers are willing to supply more of it, and when the price goes down, they supply less. What is the LAW OF DEMAND? The law of demand states that, all else being equal, the quantity of a good or service demanded by consumers decreases as its price rises and increases as its price falls. This indicates an inverse relationship between price and quantity demanded—when the price of a product goes up, people are less likely to buy it, and when the price goes down, people are more likely to purchase it. Example: If the price of a movie ticket decreases, more people may decide to go to the movies. Conversely, if the price increases, fewer people may choose to buy tickets. List and describe the seven FUNCTIONS OF MARKETING – give examples Market Research The process of gathering, analyzing, and interpreting data about the market, competitors, and customer preferences. It helps businesses make informed decisions. Example: A company conducting surveys to understand customer needs before launching a new product. Product/Service Management Involves designing, developing, and maintaining products or services that meet the needs and wants of customers. It includes decisions about product features, branding, and packaging. Example: A smartphone company regularly updating its devices with new features and software to stay competitive. Pricing Setting a price for a product or service based on factors such as cost, competition, and perceived value. The right pricing strategy maximizes profit while being attractive to consumers. Example: A fast-food restaurant offering value meals at a competitive price to attract budget-conscious customers. Promotion Activities that inform, persuade, and remind customers about a product or service to encourage purchasing. It includes advertising, public relations, sales promotions, and personal selling. Example: A clothing brand running a social media campaign offering a discount to attract new customers. Distribution (Place) The process of getting the product from the producer to the consumer, ensuring it is available in the right place at the right time. This includes selecting distribution channels and logistics. Example: A cosmetic brand selling its products both in stores and online to reach a wider audience. Selling The personal interaction between a business and its customers to help them make a purchase decision. It involves direct sales, negotiations, and relationship building. Example: A car dealership where salespeople interact with customers to explain features, offer test drives, and close sales. Financing The process of acquiring the necessary funds to carry out marketing activities and offering credit or payment plans to customers. Example: A home appliance store offering installment payment options for customers purchasing expensive items. What are four BENEFITS of International Trade? Access to a Larger Market Businesses can expand their customer base by selling products and services to international markets, increasing their potential for growth and profits. Increased Variety of Goods and Services Consumers have access to a wider range of products and services from different countries, often at competitive prices, improving choice and quality. Economic Growth and Employment International trade stimulates economic growth by fostering innovation, increasing investment, and creating jobs in industries that are involved in exporting and importing goods and services. Access to Resources and Raw Materials Countries can obtain raw materials or resources that may be scarce or unavailable domestically, which helps in producing goods more efficiently or at a lower cost. How do public companies compensate stockholders? Dividends Dividends are cash or stock payments made by the company to its shareholders, typically on a quarterly basis. They are a portion of the company’s profits distributed to stockholders as a reward for their investment. Example: A company may declare a $1 per share dividend, meaning a shareholder with 100 shares would receive $100. Capital Gains Stockholders can also benefit from an increase in the value of the company's stock. If the stock price rises after purchase, shareholders can sell their shares for a profit. This is called a capital gain. Example: If a shareholder buys stock for $10 per share and later sells it for $15 per share, they make a capital gain of $5 per share. UNIT 3: PRODUCT KEY TERMS: 1. Branding The process of creating a unique name, image, and identity for a product or company to differentiate it from competitors in the minds of consumers. 2. Brand Recognition The ability of consumers to identify a brand by its logo, colors, or other distinguishing features, often leading to trust and loyalty. 3. Competitive Advantage A unique advantage a company has over its competitors, often through superior quality, cost, or brand identity, that allows it to outperform others in the market. 4. Consumability Refers to the extent to which a product can be consumed or used by the customer before it is depleted or exhausted. 5. Consultative Selling A sales approach focused on understanding customer needs and offering solutions tailored to those needs, rather than just pushing products. 6. Corporate Brand The overall image and reputation of a company as a whole, not just the products or services it offers. 7. Demographics Statistical data related to the population, such as age, gender, income, education, and occupation, used for market segmentation and targeting. 8. Distinct Brand A brand that stands out from competitors by offering unique products or services that are easily recognizable and differentiated in the market. 9. Geographies The different geographic locations or regions where a business operates or targets its marketing efforts. 10. Logistics The management of the flow of goods, services, and information between the point of origin and the point of consumption to meet customer needs. 11. Market Segmentation The process of dividing a broad consumer or business market into sub-groups based on shared characteristics, needs, or behaviors. 12. Marketability The attractiveness or potential of a product, service, or business to be successfully marketed and sold to a target audience. 13. Marketing Mix The combination of product, price, place, and promotion strategies that a company uses to promote and sell its product in the market (also known as the 4Ps). 14. Marketing Plan A comprehensive document that outlines the marketing strategies, objectives, target audience, and budget to guide a business’s marketing efforts. 15. Perishability The characteristic of products or services that can expire or go out of demand over time, such as food items or event tickets. 16. Price Point The specific price at which a product is sold in the market, influencing its perception and demand. 17. Profitability The ability of a business or product to generate more revenue than its costs, resulting in financial gain. 18. Product Depth The number of variations of a single product within a product line, such as different sizes, colors, or flavors of a product. 19. Product Line A group of related products that a company offers under a single brand or category, such as a line of skincare products. 20. Product Mix The total range of products offered by a company, including all product lines and individual products. 21. Product Placement A marketing strategy in which a brand or product is strategically featured in movies, TV shows, or other media to increase visibility and recognition. 22. Product Width The number of different product lines a company offers within its product mix. 23. Psychographics The study of consumer lifestyles, interests, and attitudes, helping marketers to better understand the motivations behind purchasing behaviors. 24. Target Marketing The process of identifying and focusing marketing efforts on specific groups of consumers who are most likely to purchase a product or service. 25. Qualitative Research Research that gathers non-numerical data, such as opinions, feelings, and insights, often through interviews or focus groups, to understand consumer behavior. 26. Quantitative Research Research that gathers numerical data, such as surveys or statistics, to quantify consumer behavior and preferences. 27. Seasonal Products or services that experience changes in demand based on the time of year, such as winter clothing or holiday decorations. 28. Umbrella Brand A single brand name that is used for multiple products or services offered by the same company, promoting consistency and recognition across different markets. List and define the five STEPS FOR MARKETING RESEARCH in the correct order and give examples Define the Problem or Opportunity The first step involves identifying and clearly defining the issue or opportunity that needs to be addressed. This is the foundation of the entire research process. Example: A company notices a decline in sales and wants to understand if customer preferences have shifted or if the product is no longer in demand. Develop the Research Plan In this step, a detailed plan is created to outline how the research will be conducted. This includes determining the research method (qualitative or quantitative), the data collection approach (surveys, focus groups, etc.), and the target audience. Example: A company decides to use an online survey to gather feedback from existing customers about their preferences and satisfaction. Collect the Data This step involves gathering the necessary data using the research methods outlined in the plan. The data can be primary (collected directly from respondents) or secondary (obtained from existing sources). Example: The company distributes the survey to 1,000 customers via email and social media to collect their responses. Analyze the Data Once the data is collected, it must be analyzed to identify patterns, trends, or insights. This may involve statistical analysis, qualitative assessments, or comparison of data points. Example: After collecting the survey results, the company analyzes the responses to identify common themes, such as customers wanting more eco-friendly products. Present the Findings and Make Decisions The final step is to present the research findings in a clear and actionable format, often with recommendations. Based on these insights, the company makes decisions to address the problem or opportunity identified. Example: The company presents a report to management, suggesting new product features or marketing strategies based on customer feedback, such as offering more sustainable options. Describe a FEATURE and a BENEFIT Feature A feature refers to a specific characteristic or aspect of a product or service. It is a factual description of what the product is or what it includes. Features are usually tangible or measurable elements that describe the product’s functionality or design. Example: For a smartphone, a feature could be "a 12-megapixel camera with optical image stabilization." Benefit A benefit explains how the feature helps or improves the customer ’s life. It’s the value or advantage that the customer gains from the feature. Benefits focus on the emotional or practical outcomes of using the product. Example: The benefit of the 12-megapixel camera with optical image stabilization is that it allows users to take clearer, sharper photos, even in low-light or while moving, leading to better quality pictures and memorable moments captured. Identify the levels of MASLOW’S HIERARCHY OF NEEDS Level 1 (base) physiological needs which include basic necessities like food, water, shelter, and air, essential for survival. Level 2: safety needs," which refers to the need for security and protection from harm, including physical safety, financial stability, and health security. Level 3: The third level of Maslow's hierarchy of needs is "love and belonging needs," which encompasses the need for social interaction, friendship, intimacy, family, and a sense of belonging to a group. Level 4: "esteem needs," which encompasses the need for respect, recognition, and a sense of personal accomplishment from others, as well as self-esteem and confidence in oneself. Level 5 (peak): The fifth and final level of Maslow's hierarchy of needs is self-actualization. This level represents the need to fulfill one's full potential and become the best version of oneself. Explain the difference between a TRADEMARK, a PATENT and a COPYRIGHT Trademark Purpose: Protects brand identifiers that distinguish goods or services.  Examples: Logos, brand names, slogans, and distinctive designs (e.g., Nike swoosh, "Just Do It"). Protection: Prevents others from using confusingly similar marks in commerce, ensuring consumers can identify the source of goods or services. Duration: Potentially indefinite, as long as the trademark is actively used and renewed. Patent Purpose: Protects inventions, granting exclusive rights to make, use, or sell the invention. Examples: A new drug formula, a unique machine, or an innovative process. Protection: Covers new, useful, and non-obvious inventions or discoveries. Duration: Generally, lasts 20 years from the filing date, after which the invention enters the public domain. Copyright Purpose: Protects original works of authorship, including the expression of ideas in tangible forms. Examples: Books, movies, music, paintings, software code, and architectural designs. Protection: Ensures the creator has control over reproduction, distribution, and adaptation of their work.  Duration: Typically lasts for the life of the author plus 70 years; for corporate authorship, 95 years from publication or 120 years from creation, whichever is shorter. Key Distinctions: 1. What is protected: o Trademark: Branding and identity. o Patent: Inventions and technical solutions. o Copyright: Creative works of authorship. 2. Duration: o Trademarks can last indefinitely. o Patents have a fixed term (usually 20 years). o Copyrights last a creator 's lifetime plus decades after death. 3. Purpose: o Trademarks prevent consumer confusion. o Patents encourage innovation by granting inventors exclusive rights. o Copyrights protect creative expression and encourage artistic and intellectual work. List and explain the three BUYING MOTIVES 1. Emotional Motives Definition: These are decisions driven by feelings, instincts, or emotions rather than logic or practicality. Examples: o Buying a luxury watch to feel prestigious or confident. o Choosing a particular brand of chocolates out of nostalgia. o Purchasing a product because it evokes happiness or excitement. Key Drivers: o Pride, fear, love, curiosity, comfort, or desire for status. 2. Rational Motives Definition: These decisions are based on logic, practicality, and thorough evaluation of the product’s features, benefits, and value. Examples: o Buying a car with excellent fuel efficiency to save money on gas. o Choosing a detergent based on price, performance, or eco-friendliness.  o Selecting a laptop after comparing specifications, price, and reviews. Key Drivers: o Quality, cost-efficiency, durability, and functionality. 3. Patronage Motives Definition: These decisions are driven by loyalty to a specific brand, store, or company, often due to positive past experiences or perceived trustworthiness. Examples: o Shopping at a local grocery store because you trust their customer service. o Sticking with a brand of shoes because they’ve always been comfortable and reliable. o Supporting a business because it aligns with your values (e.g., eco-friendly practices). Key Drivers: o Trust, convenience, brand loyalty, or alignment with personal values.  Summary Emotional: Appeals to feelings and desires. Rational: Appeals to logic and reason. Patronage: Appeals to loyalty and trust. Understanding these motives can help businesses tailor their marketing strategies to meet the specific needs and preferences of their target audience. What are the four different influences on the CONSUMER DECISION MAKING PROCESS? Give a brief explanation for each 1. Cultural Influences Definition: These are factors related to the culture, subculture, and societal norms that shape a consumer 's preferences and behaviors. Examples: o In a culture that values health and fitness, consumers might prioritize buying organic or low- calorie products. o Subcultures like ethnicity or religion can influence food, clothing, or holiday purchases. Impact: Determines broad preferences and values that drive consumption habits. 2. Social Influences Definition: These include the roles of family, friends, social groups, and societal expectations in shaping buying decisions. Examples: o A teenager might choose a trendy smartphone because their friends have it. o A family might choose a car based on the recommendations of other families in their community. Impact: Reflects the power of social interactions and peer influence on individual choices. 3. Personal Influences Definition: These are individual characteristics like age, gender, lifestyle, occupation, and economic status. Examples: o A young professional may prioritize stylish yet practical clothing. o Someone with a higher income might opt for premium or luxury goods. Impact: Shapes preferences based on personal circumstances and identity. 4. Psychological Influences  Definition: These relate to an individual’s internal processes, including motivation, perception, attitudes, and beliefs. Examples: o A consumer might be motivated by a need for security, leading them to purchase insurance. o Perception of a brand as eco-friendly might lead to higher sales among environmentally conscious buyers. Impact: Drives how consumers interpret information and form buying intentions. Summary of Influence Areas 1. Cultural: Broad societal norms and values. 2. Social: Influence of relationships and social roles. 3. Personal: Individual demographics and lifestyles. 4. Psychological: Internal thought processes and motivations. What are the four STAGES IN THE PRODUCT LIFE CYCLE? Know when products are at each stage, how much time is spent at each stage and where are the most competitors?  1. Introduction Stage Characteristics: o The product is newly launched in the market. o High costs due to product development and marketing efforts to build awareness. o Sales grow slowly; profits are typically negative or minimal. o Few competitors, as the product is new. Time Spent: Can vary greatly, from months to years, depending on the market and product type. Most Competitors? No, usually few competitors exist at this stage because the product is innovative or unproven. 2. Growth Stage Characteristics: o Product gains acceptance: sales grow rapidly. o Profits begin to increase as production scales and marketing pays off. o More competitors enter the market, seeing the potential for growth. Time Spent: Often longer than the introduction stage, but duration depends on industry dynamics and market response.  Most Competitors? Yes, competition intensifies in this stage as more brands introduce similar products. 3. Maturity Stage Characteristics: o Sales peak and then stabilize as the market becomes saturated. o Profits are steady but may decline due to increased competition and price wars. o Competition is at its fiercest, with many established players. o Companies focus on differentiation and promotions to maintain market share. Time Spent: Typically, the longest stage, often lasting several years or decades. Most Competitors? Yes, competition is high, but fewer new entrants join. 4. Decline Stage Characteristics: o Sales and profits decline due to market saturation, technological obsolescence, or changing consumer preferences. o Companies either phase out the product, reduce costs, or target niche markets.  o Few competitors remain as many exits or shift focus to other products. Time Spent: Variable; some products decline rapidly, while others linger in niche markets. Most Competitors? No, competition decreases as weaker players exit. Summary Chart Stage Time Spent Competitors Short Few (new Introduction (months/years) market) Medium to long Most (entry of Growth (varies) rivals) Long (often High (price Maturity years/decades) wars, many) Variable (short or Few (market Decline long) exits) List and describe the five types of buying behavior – give examples 1. Complex Buying Behavior Definition: Occurs when consumers are highly involved in the purchase and perceive significant differences between brands. Typically applies to expensive, infrequent, or risky purchases. Example: Buying a car or a house. A consumer researches various brands, compares features, and evaluates options extensively before deciding. Characteristics: o High involvement. o Detailed evaluation of product attributes. 2. Dissonance-Reducing Buying Behavior Definition: Happens when consumers are highly involved in the purchase but perceive few differences between brands. Buyers want to avoid post-purchase regret (dissonance). Example: Choosing a carpet or flooring. Consumers may not see large brand differences but still want to make the right choice due to the expense or effort involved. Characteristics: o High involvement.  o Minimal brand differentiation. 3. Habitual Buying Behavior Definition: Occurs when consumers have low involvement and perceive little to no difference between brands. Purchases are routine and habitual. Example: Buying milk or bread. Consumers typically stick to a familiar brand or pick whatever is convenient without much thought. Characteristics: o Low involvement. o Automatic decisions, often driven by familiarity. 4. Variety-Seeking Buying Behavior Definition: Happens when consumers have low involvement but perceive significant differences between brands. Buyers often switch brands for the sake of variety rather than dissatisfaction. Example: Choosing a snack or a type of coffee. A consumer might try different chips flavors, not because they’re dissatisfied but because they want something new. Characteristics: o Low involvement. o High likelihood of brand switching. 5. Impulsive Buying Behavior Definition: Refers to unplanned purchases made spontaneously, often influenced by emotions, convenience, or attractive promotions. Example: Buying a candy bar at the checkout line. The purchase is unplanned and driven by impulse rather than need or prior research. Characteristics: o Sudden, unplanned decisions. o Often influenced by placement or emotional appeal. List and describe four types of BRANDING STRATEGIES 1. Individual Branding Definition: Each product or product line is given a unique brand name, distinct from the parent company or other products. Purpose: To target different market segments and minimize risk. If one brand fails, it won’t affect the others. Example: o Procter & Gamble (P&G): The company markets Tide, Pampers, and Gillette as separate brands.  Advantages: o Allows for diverse market positioning. o Reduces brand confusion among consumers. 2. Family Branding (Umbrella Branding) Definition: A single brand name is used for all products under a company. Purpose: To leverage the reputation of the parent brand and reduce marketing costs. Example: o Apple: Products like iPhone, iPad, and MacBook share the Apple brand identity. o Kellogg’s: All cereals and snacks carry Kellogg’s name. Advantages: o Builds strong brand recognition and trust. o Cost-efficient branding and marketing. 3. Co-Branding Definition: Two or more brands collaborate to create a joint product or marketing campaign. Purpose: To combine strengths and appeal to a broader audience by leveraging both brands’ equities. Example:  o Nike and Apple: Nike+ products integrate Apple technology for fitness tracking. o Doritos and Taco Bell: Doritos Locos Tacos are a product of co-branding. Advantages: o Creates innovation and buzz. o Expands market reach for both brands. 4. Private Label Branding (Store Branding) Definition: Retailers create their own brands, typically sold exclusively in their stores. Purpose: To offer cost-effective alternatives to national brands and increase profit margins. Example: o Costco’s Kirkland Signature: Private-label products ranging from groceries to apparel. o Target’s Up & Up: A store brand for household essentials. Advantages: o Higher profit margins for retailers. o Builds customer loyalty through exclusive offerings.  What are the five types of merchandise? 1. Convenience Merchandise Definition: Items that customers buy frequently, with minimal effort and thought. Examples: Groceries (milk, bread), toiletries, snacks, and over-the-counter medicines. Characteristics: o Widely available and low-cost. o Purchased out of habit or necessity. o Often located in high-traffic areas for easy access. 2. Shopping Merchandise Definition: Products that customers compare based on price, quality, and style before making a purchase. Examples: Clothing, electronics, furniture, and appliances. Characteristics: o Requires customer effort to research and evaluate. o Usually higher-priced than convenience items. o Often purchased less frequently. 3. Specialty Merchandise  Definition: Products with unique characteristics or brand identity that customers are willing to make a special effort to buy. Examples: Luxury watches (Rolex), designer bags (Gucci), or specialty foods (artisan cheeses). Characteristics: o High customer loyalty and emotional attachment. o Customers are less price-sensitive. o Available at select outlets or locations. 4. Unsought Merchandise Definition: Products that customers don’t think of buying regularly or are unaware of until a specific need arises. Examples: Life insurance, funeral services, or emergency medical equipment. Characteristics: o Often requires aggressive marketing or sales tactics. o Purchases are need-driven rather than regular. o May be associated with a sense of urgency. 5. Seasonal Merchandise Definition: Products that are in demand only during certain times of the year or seasons.  Examples: o Holiday decorations (Christmas lights, Halloween costumes). o Seasonal clothing (coats in winter, swimsuits in summer). o Back-to-school supplies or gardening tools. Characteristics: o Time-sensitive demand. o Often marketed heavily during peak seasons. o Retailers may discount heavily during the off- season. Explain the six FUNCTIONS OF PACKAGING 1. Protection Purpose: Ensures the product is safeguarded from damage during transportation, storage, and handling. Examples: o Bubble wrap or padded packaging for fragile items like glassware. o Vacuum-sealed packaging for food to preserve freshness. Importance: Prevents product loss, contamination, or spoilage.  2. Promotion Purpose: Acts as a tool to attract customers and communicate the brand or product’s unique selling points. Examples: o Eye-catching designs, vibrant colors, or slogans on snack packaging. o Limited edition or themed packaging to generate excitement. Importance: Boosts brand recognition and influences purchasing decisions at the point of sale. 3. Convenience Purpose: Makes the product easier to use, transport, and store for both consumers and retailers. Examples: o Resealable bags for snacks or frozen foods. o Lightweight packaging for beverages, such as plastic bottles with ergonomic grips. Importance: Enhances customer satisfaction and usability.  4. Information Purpose: Provides essential details about the product, such as usage instructions, ingredients, and expiration dates. Examples: o Nutrition labels on food packaging. o Instructions for assembling a product or warnings about potential hazards. Importance: Helps consumers make informed decisions and ensures proper product use. 5. Differentiation Purpose: Distinguishes the product from competitors and reinforces brand identity. Examples: o Unique bottle shapes, such as Coca-Cola’s iconic contour bottle. o Custom packaging designs for premium or luxury products. Importance: Enhances brand loyalty and creates a strong market presence. 6. Sustainability (Environmental Responsibility) Purpose: Reduces environmental impact through the use of eco-friendly materials and designs.  Examples: o Biodegradable or recyclable packaging for products like coffee pods. o Minimalist packaging to reduce waste. Importance: Appeals to environmentally conscious consumers and aligns with corporate social responsibility goals. Unit 4: PLACE & PRICE Key Terms: 1. Break-Even o The point at which total revenues equal total costs, resulting in no profit or loss. o Example: If it costs $5,000 to produce a product and revenue from sales reaches $5,000, the business breaks even. 2. Captive Pricing o Pricing a core product low and charging higher prices for complementary or consumable items. o Example: A printer sold cheaply but ink cartridges are priced high. 3. Disposable Income o The income remaining after taxes, available for spending or saving.  o Importance: It determines how much consumers can afford to spend on non-essential goods. 4. Geographical Pricing o Setting different prices for the same product based on the location of the buyer. o Example: Gasoline may cost more in remote areas due to higher transportation costs. 5. Margin o The difference between the selling price of a product and its cost. o Example: If a product costs $20 to make and sells for $50, the margin is $30. 6. Mark-Up o The percentage added to the cost price to determine the selling price. o Example: A retailer buys a product for $10, applies a 50% mark-up, and sells it for $15. 7. Odd-Even Pricing o Pricing products with odd numbers (e.g., $19.99) to suggest value, or even numbers (e.g., $20) to imply quality. 8. Optional Product Pricing o Offering the base product at a standard price but charging extra for optional features.  o Example: A car with optional upgrades like a sunroof or premium sound system. 9. Prestige Pricing o Setting higher prices to give the impression of superior quality or exclusivity. o Example: Luxury brands like Rolex or Gucci use prestige pricing. 10. Promotional Pricing o Temporarily lowering prices to increase demand or clear inventory. o Example: Black Friday discounts or "Buy One, Get One Free" offers. 11. Value Pricing o Pricing a product to reflect its perceived value rather than its cost. o Example: Affordable luxury brands offer high- quality items at slightly lower prices than premium competitors. Other Key Marketing Terms 1. Market Share o The percentage of a market’s total sales that a company or product accounts for. o Example: If a phone brand has 30% of all phone sales, it has a 30% market share. 2. Producer o An individual or company that creates or manufactures products for sale. o Example: Farmers producing crops or factories manufacturing electronics. 3. External Theft o Loss of inventory or revenue due to theft by individuals outside the organization, such as shoplifters. 4. Internal Theft o Theft or fraud committed by employees, such as stealing merchandise or falsifying records. Identify and calculate TERMS OF AN INVOICE Common Invoice Terms 1. Net Terms (e.g., Net 30, Net 60) o Payment is due within the specified number of days from the invoice date. o Example: ▪ Invoice Date: January 1 ▪ Terms: Net 30 ▪ Payment Due Date: January 31 2. Discount Terms (e.g., 2/10 Net 30)  o A discount is offered if the invoice is paid within a shorter time frame. After this period, the full payment is due by the end of the term. o Example: ▪ Invoice Date: January 1 ▪ Terms: 2/10 Net 30 ▪ 2% discount if paid within 10 days (by January 11). ▪ Full amount due by January 31 if not paid early. Steps to Calculate Terms 1. Identify the Invoice Date o This is the date the invoice is issued and is the starting point for the payment calculation. 2. Determine the Payment Term o Look for terms like "Net 30" or "2/10 Net 30." o Understand the deadline for any discounts and the final due date. 3. Apply Discounts (if applicable) o Calculate the discount amount based on the percentage offered. Subtract this from the total invoice amount if the payment is made within the discount period.  o Formula: Discount Amount=Invoice Total×Discount Rate100\t ext{Discount Amount} = \text{Invoice Total} \times \frac{\text{Discount Rate}}{100}Discount Amount=Invoice Total×100Disc ount Rate 4. Set the Payment Due Date o Add the term period (e.g., 30 days) to the invoice date to calculate the final due date. Example Calculation Scenario: Invoice Date: April 1 Total Invoice Amount: $1,000 Terms: 2/10 Net 30 Steps: 1. Discount Period: o 2% discount if paid within 10 days. o Discount Deadline: April 11 (April 1 + 10 days). 2. Calculate Discount: Discount Amount=1,000×2100=20\text{Discount Amount} = 1,000 \times \frac{2}{100} = 20Discount Amount=1,000×1002=20 o Discounted Amount: $1,000 - $20 = $980 3. Final Payment Due Date: o Full payment ($1,000) is due by April 30 (April 1 + 30 days). How does PRICE EEFFETC QUANTITY SUPPLIED The price effect on quantity supplied is governed by the Law of Supply, which states that, all else being equal, the quantity of a good or service supplied by producers increases as the price rises and decreases as the price falls. This means there is a direct relationship between price and quantity supplied. How Price Affects Quantity Supplied: 1. When the price rises, producers are more willing and able to produce more of a product because the higher price allows for higher potential profits. This encourages them to increase production to take advantage of the price increase. o Example: If the price of oil increases, oil companies may increase their supply of oil because the higher price makes it more profitable to extract and sell more. 2. When the price falls, producers may reduce the quantity they are willing to supply, as lower prices may not cover the costs of production or may offer less profit. This discourages production and leads to a decrease in supply. o Example: If the price of smartphones drops significantly, manufacturers might reduce production because lower prices may not justify the costs of manufacturing the devices. In summary, higher prices lead to higher quantity supplied, while lower prices lead to lower quantity supplied. This relationship helps regulate market supply and demand. List and describe the five types of INTERMEDIARIES involved in the CHANNEL OF DISTRIBUTION -give examples for each 1. Agents/Brokers Intermediaries facilitate the sale of products by connecting buyers and sellers without taking ownership of the goods. They earn a commission for their services. Example: A real estate agent helps homeowners sell properties to buyers but does not own the property themselves. 2. Wholesalers Businesses that purchase large quantities of products from manufacturers and resell them in smaller quantities to retailers or other businesses. They often store and distribute goods. Example: Costco or Sysco, which buy in bulk and supply to smaller grocery stores or restaurants. 3. Retailers Businesses that sell products directly to consumers. They often serve as the final link in the distribution channel and provide a shopping experience for customers. Example: Walmart, Target, or local grocery stores selling goods to the public. 4. Distributors Intermediaries that work closely with manufacturers to sell and distribute their products, often specializing in specific industries or types of products. They usually have exclusive selling rights in a particular region. Example: A beverage distributor that works with a soda company to supply products to restaurants and stores. 5. E-tailers (Online Retailers) Businesses that sell products online, either directly from the manufacturer or through third-party platforms. They can ship products directly to consumers. Example: Amazon or Etsy, where products are sold and shipped to customers without the need for a physical storefront. Define the thirteen types of PRICING METHODS/ STRTEGIES 1. Bundled Pricing Combining multiple products or services into a single package and offering them at a lower price than if bought individually. Example: A software company sells an office suite (word processor, spreadsheet, presentation software) at a discounted rate compared to purchasing each separately. 2. Captive Product Pricing Setting a low price for a base product but charging higher prices for necessary complementary products. Example: A printer is sold at a low cost, but ink cartridges are expensive. 3. Geographical Pricing Adjusting prices based on the customer’s location due to differences in shipping costs, taxes, or local demand. Example: Products cost more in remote areas due to higher delivery expenses. 4. Multiple-Unit Pricing Offering a discount when multiple units of a product are purchased together to encourage bulk buying. Example: A grocery store sells two soda bottles for $3, while one costs $2 individually. 5. Odd-Even Pricing (Psychological) Setting prices just below a round number to make them seem cheaper and more appealing. Example: Pricing an item at $19.99 instead of $20. 6. Penetration Pricing Launching a product at a low price to attract customers and gain market share quickly, with the intention of raising the price later. Example: A new streaming platform offers a $5/month subscription initially to compete with established services. 7. Predatory Pricing Setting prices extremely low to drive competitors out of the market, often temporarily. Example: A large retailer slashes prices below cost to undercut small local competitors.  8. Premium/Prestige Pricing (Psychological) Setting high prices to convey luxury, exclusivity, or superior quality. Example: A high-end watch brand prices its products at $5,000 to emphasize craftsmanship and exclusivity. 9. Product Price Lining Creating a range of prices for different versions of a product to appeal to varying budgets. Example: A car company offers the same model with basic, mid-range, and luxury features at different price points. 10. Promotional Pricing Offering temporary discounts or special deals to attract customers or clear inventory. Example: A store holds a Black Friday sale with steep discounts on electronics. 11. Optional Product Pricing Pricing the base product low but charging extra for optional add-ons or features. Example: A car is sold at a base price, but leather seats, a sunroof, and advanced navigation are additional costs. 12. Skimming Pricing Starting with a high price for a new or innovative product to maximize profits from early adopters, then gradually lowering it. Example: A tech company launches a new gadget at a premium price and reduces it months later. 13. Value Pricing Setting prices based on the perceived value to the customer, rather than on production costs. Example: A company charges more for organic food because customers perceive it as healthier and worth the premium. List the four TYPES OF STORES Department Stores Large stores offering a wide variety of products organized into departments, such as clothing, home goods, and electronics. Example: Macy's, Nordstrom. Specialty Stores Focused on specific product categories or niches, offering deep assortments and expertise in their field. Example: Foot Locker (sports shoes), Sephora (beauty products). Discount Stores Retailers that offer products at lower prices, often by minimizing overhead costs and selling in bulk. Example: Walmart, Dollar Tree. Convenience Stores Small stores that focus on quick and easy access to essential items, often located near residential areas. Example: 7-Eleven, Circle K.  Give examples for the three TYPES OF DISTRIBUTUION – direct, indirect & integrated 1. Direct Distribution The manufacturer or producer sells products directly to the end consumer without intermediaries. Example: Apple selling its products through its own online store or physical Apple Stores. Local farmers selling produce at a farmer ’s market. 2. Indirect Distribution The manufacturer uses intermediaries (such as wholesalers, agents, or retailers) to get products to consumers. Example: Procter & Gamble selling products like Tide or Gillette through supermarkets like Walmart or Target. Nike selling shoes through retail chains like Foot Locker. 3. Integrated Distribution The manufacturer owns and controls the entire distribution process, from production to the end consumer. This often involves a combination of physical and digital channels. Example: Tesla, which manufactures and sells its cars through company-owned showrooms and online orders.  Zara, which produces, distributes, and sells its fashion items in its own stores globally. Give examples of the three METHODS OF DISTRIBUTION 1. Intensive Distribution Definition: Products are distributed widely in as many outlets as possible to maximize exposure and availability. Example: Coca-Cola products are available in supermarkets, convenience stores, vending machines, gas stations, and restaurants. 2. Selective Distribution Definition: Products are distributed through a limited number of carefully chosen outlets to maintain a certain image or level of service. Example: Nike chooses specific retail stores, such as Foot Locker and their own flagship stores, to sell premium athletic wear. 3. Exclusive Distribution Definition: Products are distributed through a single retailer or a very limited number of retailers in a particular region to create exclusivity.  Example: Luxury brands like Rolex sell their watches through exclusive boutiques or authorized dealers. What does it mean when you price items to MEET THE COMPETITION? Pricing items to meet the competition means setting your prices at the same level as or very close to those of your competitors. This strategy is often used to remain competitive in the market, attract customers who compare prices, and avoid starting a price war. Key Characteristics of Pricing to Meet the Competition: 1. Market-Based Approach: The price is determined based on what competitors are charging rather than on production costs or desired profit margins. 2. Customer Perception: It signals to customers that your product offers similar value to competing products. 3. Maintaining Market Position: It prevents losing customers to competitors simply because of price differences. Example: If a competing grocery store is selling milk for $2.99 per gallon, you might also price your milk at $2.99 to ensure customers don’t perceive your product as overpriced. This strategy works best in markets where products are similar, and price is a key factor in customer decision-making.  What market(s) ARE NOT a part of the normal distribution channels? 1. Direct-to-Consumer Markets (DTC) Description: Businesses sell directly to consumers, eliminating intermediaries like wholesalers or retailers. Examples: o E-commerce websites like Amazon for small vendors. o Brands like Warby Parker or Casper that sell directly through their online platforms. 2. Gray Markets Description: Legitimate products are sold through unauthorized or unofficial distribution channels, often at lower prices. Examples: o Electronics imported and sold in a region without the manufacturer 's authorization. 3. Black Markets Description: Goods and services are sold illegally or unregulated by traditional distribution systems. Examples: o Counterfeit handbags or unlicensed pharmaceuticals.  4. Gig and Sharing Economy Platforms Description: Peer-to-peer platforms where goods and services are distributed directly between users. Examples: o Platforms like Etsy (for handmade goods) or Facebook Marketplace. 5. Pop-Up Markets or Events Description: Temporary setups or events where businesses sell directly to consumers without established retail infrastructure. Examples: o Farmers’ markets, craft fairs, or street vendors. These alternative channels provide flexibility and often cater to niche or underserved markets, bypassing traditional supply chains. Unit 5: PROMOTION Key Terms: 1. Behavioral Marketing A strategy that uses data on consumers’ past behavior (e.g., browsing history, purchase habits, or search activity) to deliver personalized and relevant marketing messages.  Example: Showing ads for running shoes to someone who frequently searches for fitness equipment. 2. Guerrilla/Stealth Marketing Guerrilla Marketing: A creative, low-cost strategy designed to capture attention in unconventional ways. o Example: Flash mobs promoting a brand or graffiti- style art campaigns. Stealth Marketing: Promoting products in a subtle or hidden way, so consumers don’t realize they’re being marketed to. o Example: An actor in public drinking a specific soda brand without overtly promoting it. 3. Organic Marketing A long-term strategy focused on building relationships and attracting customers naturally through unpaid channels. Example: Posting engaging content on social media or writing informative blog posts to grow a brand following without paid advertising. 4. Product Placement The inclusion of branded products or services in movies, TV shows, or other media to promote them subtly.  Example: A character in a film prominently using an Apple MacBook. 5. Prospecting The process of identifying and reaching out to potential customers (prospects) who are likely to purchase a product or service. Example: Cold calling or using customer data to find leads for a sales team. 6. Puffery Exaggerated claims in advertising that are subjective and not meant to be taken literally. Example: "The best coffee in the world!" (not provable but appeals emotionally). 7. Shill Marketing A deceptive practice where individuals pose as satisfied customers to promote a product or service. Example: Paid reviews written to look like genuine customer endorsements. 8. Specialty Marketing Marketing focused on promoting niche or specialized products to a targeted audience.  Example: Advertising custom-made hiking gear to avid outdoor enthusiasts. 9. Viral Marketing A marketing technique designed to encourage audiences to share content widely, creating rapid and organic spread. Example: A humorous video ad that gains millions of shares and likes on social media. 10. Visual Design The creation of aesthetically appealing visuals to communicate a brand’s message effectively. Example: Designing a modern and sleek logo or website for a tech company. 11. Visual Merchandising Strategic arrangement of products and displays in physical stores to attract customers and boost sales. Example: A grocery store placing fresh, colorful produce at the entrance to entice shoppers.  What are the three GOALS OF PROMOTION 1. To Inform Purpose: Educate potential and current customers about the product, service, brand, or company. When Used: Often during the introduction phase of a product or when entering new markets. Example: A new smartphone ad showcasing its features and benefits. 2. To Persuade Purpose: Convince customers to choose your product or service over competitors’. When Used: Often during the growth phase, when competition increases. Example: An ad emphasizing why a specific energy drink gives better performance than others. 3. To Remind Purpose: Keep the product or brand at the forefront of the customer ’s mind to encourage repeat purchases or brand loyalty. When Used: Often during the maturity phase or for well- established brands. Example: A seasonal Coca-Cola campaign reminding customers to enjoy it during the holidays.  What is the difference between REGIONAL and NTAIOINAL TRADE SHOWS and their benefits of each Regional Trade Shows Focus: Local or regional markets. Benefits: o Targeted audience. o Lower costs (travel, accommodation). o Easier networking with local businesses. o Less competition. National Trade Shows Focus: Nationwide audience. Benefits: o Broader exposure. o Access to industry leaders. o Increased brand visibility. o Potential for more leads and sales. Provide examples for each type of promotion 1. Personal Selling Definition: Direct interaction between a salesperson and a potential customer to persuade them to make a purchase.  Example: A car salesperson giving a one-on-one demo of a vehicle's features and benefits to a potential buyer. 2. Publicity Definition: Non-paid, public exposure for a product, service, or brand, usually through media coverage. Example: A company receiving media coverage after sponsoring a charity event, leading to increased awareness of their brand. 3. Print Media and Sales Definition: Using printed materials, such as newspapers, magazines, brochures, or flyers, to promote products or services. Example: A flyer in a local magazine offering a discount on a restaurant's menu for first-time visitors. 4. Sales Promotion Definition: Short-term incentives designed to encourage immediate purchases or sales. Example: A "flash sale" where all items are 20% off for a limited time.  Know the differences between AREAS OF A STORE 1. Store Exterior Definition: The overall outside appearance of the store, including its architecture, signage, lighting, and surroundings. Key Focus: The exterior is designed to attract customers' attention from the outside and create a welcoming environment. Example: A brightly lit store with modern glass windows and a bold, easily readable sign. 2. Store Front Definition: The section of the store that faces the street or exterior, including the windows, entryway, and display areas. Key Focus: The front is typically designed to showcase products or promotions and entice passersby to enter the store. Example: A store window display showcasing seasonal clothing, with a door prominently featured for easy access. 3. Store Layout Definition: The internal arrangement of merchandise, fixtures, aisles, and areas within the store.  Key Focus: The layout is designed to create a smooth shopping experience, guide customer flow, and maximize product visibility and accessibility. Example: A grocery store with clearly defined aisles, a produce section near the entrance, and the checkout counters at the back. Know the differences between the types of store layouts 1. Free Flow Layout Definition: A layout with no defined paths, allowing customers to explore the store freely. Merchandise is arranged in a relaxed and often creative manner. Key Focus: Encourages browsing and spontaneous purchases. Example: Boutique clothing stores or high-end fashion retailers where items are displayed in an open, inviting way without rigid aisles. 2. Grid Layout Definition: A structured layout with long, straight aisles that form a grid, guiding customers through the store in a predictable path. Key Focus: Efficient use of space and easy product categorization.  Example: Supermarkets, drugstores, or big-box retailers where products are organized by category, making it easy for customers to find items quickly. 3. Loop Layout Definition: A layout where the path forms a loop or circular route, leading customers around the store and encouraging them to pass through all areas. Key Focus: Directs traffic around the entire store to increase exposure to all products. Example: Department stores or some large retail stores where the customer follows a circular path through various sections (e.g., clothing, home goods, electronics). 4. Spine Layout Definition: A layout where a central aisle or "spine" runs through the store, with departments or sections branching off to either side. Key Focus: Focuses on a central point of access while allowing easy access to multiple sections. Example: Malls or large department stores, where a central aisle runs through the middle, and different areas (e.g., electronics, clothing) are on either side. What is a POINT OF PURCHASE (POP) DISPLAY? A Point of Purchase (POP) Display is a marketing display placed near the checkout or in-store aisles to attract attention and encourage impulse buying. It highlights products, promotions, or offers to influence customers' purchasing decisions. List examples for EACH MEDIA TYPE Print Media: Newspapers, magazines, brochures, flyers, and billboards. Broadcast Media: Television commercials, radio ads, and news broadcasts. Internet Media: Social media ads, online banners, website pop-ups, and email marketing. Know the difference between Point of Purchase (POP): Refers to the physical location in a store where a customer is encouraged to make a purchase, often enhanced by marketing displays, promotions, or signage designed to drive impulse buys. It can be near the checkout or along aisles. Point of Sale (POS): Refers to the actual location or system where the transaction is completed, such as a cash register, checkout counter, or payment terminal. It is where the customer pays for the products. Point of Transaction (POT): This term is sometimes used interchangeably with POS, but it more specifically refers to the moment the exchange of goods for money happens, whether online or in person. How does a salesperson determine which features and benefits of a product are important to customers? Asking Questions: Engaging customers with open-ended questions to understand their needs, preferences, and pain points. This helps identify what the customer values most. Active Listening: Paying attention to what the customer says, both verbally and non-verbally, to gauge what they prioritize in a product. Observing Behavior: Noticing how customers interact with the product, which features they focus on, or how they react to certain aspects of the product. Customer Feedback: Collecting feedback from past customers or surveys to identify common trends in what features or benefits are most appreciated. Understanding the Market: Knowing the target market and what is generally valued within that demographic (e.g., price, quality, convenience) can guide a salesperson’s approach. Trial and Demonstration: Offering product samples or demonstrations can reveal which features resonate most with customers. Know the order of the eight STEPS OF THE SALES PROCESS Prospecting: Identifying potential customers or leads who may be interested in the product or service. Preparation: Gathering information about the potential customer, their needs, and the market to tailor the approach. Approach: Making initial contact with the customer, whether through a cold call, email, or in-person introduction. Presentation: Demonstrating the product or service and highlighting its features, benefits, and how it meets the customer 's needs.  Handling objections: Addressing any concerns or objections the customer may have about the product or service. Closing the Sale: Finalizing the transaction, either by asking for the sale directly or using techniques to encourage a commitment. Follow-Up: Checking in with the customer after the sale to ensure satisfaction and to build long-term relationships. Referral: Encouraging the satisfied customer to refer others, helping to generate new leads and sales opportunities. What are the four APPROACHES IN THE SALES PROCESS? Give examples for each **The Greeting Approach: Description: This is a simple and friendly way to start a sales interaction. The salesperson greets the customer warmly and invites them into the conversation. Example: A salesperson at a clothing store might greet a customer by saying, "Good afternoon! How can I help you today?" This approach is non-intrusive and opens the door for the customer to express their needs. **The Questioning Approach:  Description: This approach involves asking questions to understand the customer 's needs, preferences, or pain points before making a product recommendation. Example: A car salesperson might ask, "What features are most important to you in a car—safety, fuel efficiency, or technology?" This helps guide the conversation to focus on the right product. **The Product Demonstration Approach: Description: In this approach, the salesperson demonstrates the product’s features or benefits to show how it solves a customer ’s problem. Example: A salesperson in an electronics store might demonstrate how a new smartphone's camera works to highlight its advanced features, appealing to a customer interested in photography. **The Service Approach: Description: This approach focuses on offering assistance or advice, showing the customer that the salesperson is knowledgeable and ready to provide helpful solutions. Example: A salesperson at a home improvement store might say, "I see you’re looking at paint—would you like help choosing the right color or finish for your project?" This approach emphasizes customer service and expertise. What are the 5 P’S in the MARKETING MIX (in order)? Product: The goods or services offered to meet the needs and wants of customers. It includes features, quality, design, branding, and packaging. Price: The cost of the product, including the pricing strategy, discounts, payment terms, and how it compares to competitors. Place: The distribution channels used to deliver the product to customers, such as retail locations, online platforms, or direct sales. Promotion: The activities and strategies used to communicate the product’s value to customers, including advertising, sales promotions, public relations, and social media marketing. People: The individuals involved in the marketing and selling process, including customer service, salespeople, and anyone who interacts with customers or influences their purchasing decisions. What are the 2 main TYPES OF PROMOTION/ADVERTISING Above-the-Line (ATL) Advertising: This type involves mass media channels that reach a broad audience. It includes traditional advertising methods such as TV, radio, print ads (newspapers, magazines), and outdoor billboards. ATL is focused on building brand awareness and reaching large-scale audiences. Below-the-Line (BTL) Advertising: This type targets a more specific, often smaller audience through direct, personalized communication. It includes tactics like direct mail, email marketing, sponsorships, events, in- store promotions, and experiential marketing. BTL is typically used for more targeted campaigns and immediate sales or engagement. What are some examples of PUBLIC RELATIONS? Press Releases: Written statements sent to media outlets to announce company news, product launches, events, or other important updates. Media Interviews: Company executives or spokespeople participating in interviews with journalists to discuss company news, industry trends, or share expert opinions. Event Sponsorship: A company sponsoring or participating in community events, conferences, or charity fundraisers to enhance brand visibility and reputation. Crisis Management: Addressing negative publicity or issues that could harm the company’s reputation, often through official statements or actions to restore trust. Social Media Engagement: Interacting with the public on social media platforms, sharing company updates, responding to customer inquiries, or managing customer feedback. Content Marketing: Creating and distributing valuable content like blog posts, white papers, or videos to build brand authority and connect with the target audience. Influencer Partnerships: Collaborating with influencers to promote the brand and improve its image through trusted third-party endorsements.