Marketing Test Review Updated 2024 PDF

Defined: Marketing – Address needs & wants Need – Essential necessities all humans must have to survive Wants – Desires humans have The Market: Market Share An organization’s share of the total value of sales of all products within a specific market. Measured by...

Defined: Marketing – Address needs & wants Need – Essential necessities all humans must have to survive Wants – Desires humans have The Market: Market Share An organization’s share of the total value of sales of all products within a specific market. Measured by expressing firm’s sales as a %age of total market value Sales Revenue of Firm 100 Market Share Total sales revenue in Market 25% Ex: Sales revenues are $100mil in industry worth $400mil; What is the firm’s Market Share? Orientation Market Orientation Product Orientation Aka consumer orientation Inward looking businesses (aka market-led Focus on selling products businesses) they make vs making Outward looking products they can sell businesses “supply creates its own Focus on making products demand” they can sell vs selling Concentrate high quality product they can make products – Focus on consumer Assumption that they know 2 main adv.: what customers want – Flexibility – Less Risk Main disadv: – Mkt research = $$$$$  Marketing Planning Typical Marketing Planning Defined: Process A systematic process Marketing audit concerned with devising Marketing objectives marketing objectives and Marketing strategies appropriate marketing Monitoring & review strategies to achieve these Evaluation goals. Marketing Mix Product Promotion Four Price P’s Place Product Product Line: Related products – to maximize profits Product Mix: Producing more than one type of product; providing > variety Promotion Strategies used to attract customers to products. – Branding Above the Below the Line Line Mass media All others Packaging, TV, news, sponsorship, radio, etc direct mail, etc People CRM (customer relations management) – The attitudes & aptitudes of the people employed by a firm will determine the experience & quality of service given Word-of-mouth promotion Customer lifetime value Process Methods & procedures used to give clients best possible customer experience. Convenience Physical evidence Image portrayed by a business (or perceived by customers) regarding its tangible & observable features. Packaging Ways product is presented to the consumer Product differentiation Drawback: costs perceptions differentiation protection informational Encourage Distribution advertising impulse ease buying Market Segmentation Splitting a market into distinct groups of buyers to better meet customers needs. Based on: Demographic – age, gender, race, marital status, religion & socio-economic status. Geographic Location – cultures & attitudes Climate Psychographic – emotions & lifestyle including habits, hobbies, interests & values. Examples Market Segmentation DINK Double Income No Kids SILK Single Income Lots (of) Kids WOOF Well Off Older Folks OINK & OINKY One Income No Kids (Yet) Target Marketing Business can select market segment(s) to target with unique marketing mix. Niche – targets a specific & well defined market segment. Single product/Single market. Mass – Large number of different market segments are targeted for maximum sales. Single product/All markets. Multi-segment – tailors a marketing mix to each market segment. Differentiated products/Variety markets. Market Research Methods Primary research is original data collected for a specific purpose. Secondary research is data previously collected by researchers for other purposes. Primary Market Research Primary research is customized to meet company’s requirements, includes: Surveys – telephone, mail, internet & face-to-face. Mystery shopping. Focus groups. Product tests and observation. Secondary Market Research Secondary research involves processing data collected for reasons other than company’s needs, sources include: Census data Public records Newspaper & magazine reports Websites Trade associations Advertising is the art of convincing people to spend money they don’t have for something they don’t need. ~Will Rogers Promotion  Final Promotion Publicity – creating favorable images through the media without paying for advertising. Sponsorship – financially supporting events in return for publicity and advertising space.  Push-Pull Concept Pull: manufactures try to increase customer demand through advertising/ATL promotions. Push: manufacturers promote products through retailers; tempting customers to purchase w/sales promotions, price reductions & BTL promotions.  Promotional Mix AIDA A combination of promotional strategies used to market a product; part of larger marketing mix. Attention – promote brand awareness Interest – keep customers interested Desire – generate a feeling of ‘need’ Action – purchase, purchase, purchase! THE PRODUCT LIFE CYCLE SCALE MEASURES PRODUCT SALES OVER A PERIOD OF TIME? Promotional Mix AIDA or FAB FEATURES ATTENTION Raise existing & potential customers’ awareness of the product by engaging their attention ADVANTAG ES INTEREST Stimulate & keep customers interested, memorable & interesting ads BENEFITS DESIRE Generate feeling of ‘need’ ACTION encourage purchasing RETAILERS  Retailers sell goods to the final consumer.  Brick and Mortar – retailers that sell from physical stores. They display, store and merchandise the products.  Vending Services – sell products through machines that dispense goods to consumers.  E-Tailers – sell products over the Internet International Marketing Is simply the applications of marketing principle to more than one country Global Marketing The process of conceptualizing and then conveying the final product or service worldwide with the hopes of reaching the international marketing community INTERMEDIARIES Agents – do not take ownership of goods. Receive commissions to get buyers and sellers together.  DIRECT DISTRIBUTION  Directdistribution occurs when the goods or services are sold from the producer directly to the customer.  Direct mail  Phone sales  Internal sales force  Internet sales  INDIRECT DISTRIBUTION Indirect distribution involves one or more intermediaries.  Have experience & facilities to distribute products. Defined Place & distribution Place: the distribution of a product Distribution: “getting the right products to the right customers at the right price in the right place & at the right time” INTERMEDIARIES  Wholesalers buy large quantities of goods from manufacturers, store them, and resell them to retailers. INTERMEDIARIES Distributors – businesses that trade in the products of just a few manufacturers. They sell directly to customers.  B2B = Business to Business B2C = Business to consumer E-Tailers = Selling goods electronically to customers 3 Ps of Marketing Services People – Aptitudes & attitudes of employees determine quality of service. Processes – Methods in place to ensure the highest level of customer service (satisfaction.) Physical Environment – Image business portrays. (Also referred to as Physical Evidence.) Market Research Definition Process and methods used to gather information, analyze it, and report findings related to marketing goods and services.  Objectives of Promotion Definition: Communicating messages to the market with the intention of selling a firm’s product. –Informs people about products and services. –Persuades customers to purchase, or switch to, a company’s product. –Reminds customers of the attributes of a company and/or product.  Product Any good or service that serves to satisfy your needs or wants of customers. The Market: Market Size  Sellers want a price that is OVER the cost of production and buyers want a price to reflect the value for their money.  Regional Trade Blocs There are FOUR (4) main types of trading agreements between nations: 1 Free trade areas: When a group of countries have removed tariffs and quotas between themselves, while retaining the right to set tariffs/quotas towards non-members. Example: NAFTA (North American Free Trade Area: USA, Canada and Mexico). SEE NEXT SLIDE REGAURDING NAFTA – Slide 13 2 Customs unions: All the benefits of a free trade area AND countries adopt a common set of trade restrictions with non- members. Example: Mercosur: Argentina, Brazil, Paraguay, Uruguay and Venezuela. What has NAFTA been replaced by? USMCA (United States Mexico Canada Agreement) is primarily a modernization of the 25-year-old NAFTA, namely with respect to intellectual property and digital trade, and borrows language from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership  Regional Trade Blocs 3 Common markets: Members do away with duties and other trade barriers. They allow companies to invest freely in each member's country. Example: European Union (EU), not to be confused with the Euro-zone (i.e. Britain and Denmark are EU members but do not use the Euro as their currency). 4 Economic and monetary unions: An attempt to create the economic conditions that exist in just one country for all members; e.g. a common currency, a single interest rate and agreement on fiscal policy. Example: the euro-zone countries CMS = Content Management System Basic framework for a website: Adds or edits product, excepts payments, and online store can be managed