Unit 8

Brand equity

overall value for a brand, strengthened by awareness and customer loyalty

Break even analysis

the point when sales cover expenses

Buzz marketing

encourages customers to try products and then publicly share reviews on them

Target market

a segment that is sizable, reachable, and potentially profitable

Crowdsourcing

get ideas and perspectives of customers to help design a product

Customer relationship management (CRM)

systems that capture data to support long term relationships with customers

Distribution channel

how products move from the producer to the customer

Intermediaries

people in the middle of a distribution channel that help move products from producers to consumers

Market segmentation

dividing a total market into customer groups that have similar needs

Marketing mix (4Ps)

how a company creates interest and influences demand for their product through decisions around the 4 Ps

what are the 4Ps

Product, price, place, promotion

Penetration pricing

when introducing a product, set a low initial price

when is penetration pricing helpful

to enter a competitive market or build a customer base

Price skimming

when introducing a product, set a high initial price

when is price skimming helpful

To optimize profit when there is little competition

Product differentiation

promote unique benefits of a product

Product life cycle

looks at how sales for a product rises and falls

stages in the product life cycle

Intro, growth, maturity, decline

Public relations

activities that drive a positive image and generate publicity for a company

Relationship marketing

Making long term relationships with customers to foster customer loyalty and interaction

Test marketing

testing a product on a small scale to get customer feedback

Promotion mix

the activities a company can use to motivate customers to buy

trends in marketing today

importance of data, customer relationships, cause marketing, social media

how can market research help a business

understand customers and preferences, assess business environment, identify opportunities

who are the customers in a B2C and B2B market

B2C - consumers
B2B - organizations

what do customers want in a B2C and B2B market

B2C - products for themselves
B2B - products to sell

what is the decision making process in a B2C and B2B market

B2C - quick, less people involved, no negotiation, emotional
B2B - long, lots people involved, negotiation, logical

what is the size of the purchasing pool in a B2C and B2B market

B2C - large pool, small purchases
B2B - small pool, large purchases

what are the marketing efforts in a B2C and B2B market

B2C - promotional
B2B - personal

kinds of market segmentation

geographic, demographic, physiographic, behavioural

steps in the consumer decision making process

initial consideration, active evaluation, purchase decision, post purchase experience

3 types of influence

social, phycological, situational

what is included in the product marketing mix

design, development, improve/create business model, packaging, product lines/mix

different pricing strategies

cost plus, competitive pricing, value based, price skimming, penetration

reasons to use an intermediary

lack of financial resources, prioritizing resources, reach more customers

different levels of distribution when working with retailers

intensive, selective, exclusive

benefits of CRM

identify best customers, customize communications, assess effectiveness of marketing campaigns

describe the intro stage in the product life cycle

slow sales, spread awareness through promotion mix, selective distribution, set price

describe the growth stage in the growth life cycle

profits increase, competitors release products, promotion and distribution increase, compare pricing to competitors

describe the maturity stage in the product life cycle

peak sales, fierce competition, big changes, reduced prices

describe the decline stage in the product life cycle

sales decrease, less effort on promotion and distribution