marketing 1 final

Marketing

Marketing

Very broad topic that incorporates many different concepts (advertising, business management, public relations, manufacturing, economic theory…)

Demographics

Age, income, education, occupation

Psychographics

Interests, hobbies, lifestyles

Geographics

Where people live

Marketing research

Gathering of business data to make smart, informed marketing decisions

Target audience

The group of all potential customers who share common needs and wants and have ability and willingness to buy

Customers

People who BUY a product or service

Consumers

People who USE a product or service

Customer satisfaction

The personal satisfaction gained from use of a good or service

Economic utility

How much value or satisfaction

Form utility

eg. Taking a rubber and cloth and putting them together to make a shoe

Place utility

eg. Pulling off the highway to get gas. One station is 0.3 miles away, and one is 3 miles away.

Information utility

eg. Apple has a huge ad campaign letting consumers know when the iPhone will be available

Positioning

The strategic process a brand or company will go through to make customers view their product relative to competitors

Product mix

All the different product lines and individual product that a company makes or sells

Product line

A group of closely related products manufactured and/or sold by a business

Product line extension

Adding a new product to an existing product line

Product item

A specific product in a product line

Product life cycle

The stages that an innovative product goes through in the market

Product introduction

• New product enters the market

  • Low profit, low consumer usage

Product growth

• Several brands of the new product are available

  • More consumers, emerging profits

Maturity

• When there are many competing brands with similar features

  • More competitors, development of brand loyalty, large markets/profits

Decline

• When a product is introduced that is much better or easier to use, and customers switch from the old product to the new one

  • Competition for new product, decline in sales/profits

Brand

A name, symbol, phrase, or design that helps consumers tell that one business’ product is different from another

Brand mark

The part of a brand that is a symbol or design

Brand character

A character that represents a brand (ex. Tony the Tiger)

Brand extension

Using an established brand or trademark on a new product to increase sales

Rebranding

The process of giving a product or an organization a new image in order to make it more attractive or successful

SWOT analysis

Identifying the strengths, weaknesses, opportunities and threats to a product or brand

Personal selling/in-person selling

Convincing a customer to buy a product or service in person as opposed to advertising or other type of promotion

Public relations

The aspect of marketing that attempts to control publicity and put a brand in a favorable position to customers

Publicity

All the information that the media deems to be important enough to report on… related to a brand

Label/labeling

An information tag, wrapped, seal, or message attached to the package

Packaging

The physical container or wrapping of a product

Press release

A written statement sent to the media that identifies something that the brand is involved in

Cross promotion

When two brands work together to promote a product or service

Cross promotion

When two brands work together to promote a product or service

Licensing

An agreement which gives a company the right to use another’s brand name, patent, or other intellectual property for a royalty or fee

Merchandising

This type of licensing has had increased publicity in the last few years and allows NCAA athletes to profit from their likeness

In-house merchandising

Refers to managing the merchandising process within the organization itself rather than outsourcing or acquiring licenses

Outsourcing

If an organization feels an in-house merchandising approach may not be the most efficient strategy, they may choose to outsource the effort to a third party

Loyalty program

This type of promotion rewards repeat customers with some sort of incentive

Mark-up

Charging more for a product or service than what that product cost to manufacture in order to make a profit

Break-even point

The point at which revenue = cost to manufacture a product

Feature-benefit selling

A sales tactic that emphasizes the features of a product and the benefits to a target consumer to entice a sale

Break even point formula

Cost to manufacture (units made * cost per unit) / selling price

Markup percentage formula

(selling price - cost to make 1 unit)/ cost to make 1 unit * 100