Marketing Exam

What is Marketing

What is Marketing

Getting goods from the producer to the consumer

1. Market research

2. Product development

3. Packaging

4. Branding

5. Pricing

6. Sales

7. Physical distribution

8. Inventory Management

9. Promotion

4 P’s and 2 C’s

Product: Determine the right product

Place: Where is the product gonna be placed/sold

Promotion: How are we gonna promote our product

Price: Determining the correct price for the product

Consumer: Who are they? Where are they? What do they want?

Competition: Know your competition better then yourself and how to be different

Demographics (customer profile)

1. Age

2. Gender

3. Family life cycle

4. Income

5. Ethnicity

Phycographics

1. hobbies

2. habits

3. music taste

4. favourite sport

5. etc

Geographics

Where does the consumer live and whats it like

Maslows Hierarchy of needs

1. (Bottom) Biological needs

2. Safety needs

3. Love needs

4. Self esteem

5. (Top) Self actualization

Convenience Goods

Low risk purchases

Impulse - Made with no planning. Items normally placed near checkout

Routine - Made with little thought. Past experience with product or brand loyalty

Shopping Goods

High risk purchases

Limited - Involves some thought and usually a more expensive product (phone)

Extensive - Involves great deal of research and planning. Will impact your daily life (house or car)

Buying process

1. Awareness of product

2. Information research

3. Evaluation fo options

4. Decision to buy

5. Post purchase evaluation

Price vs Non-price Competition

Price competition: Strictly competition based of price

Non-price competition: on Product (quality, features, benefits), Place (where can I find it), Promotion (advertising, customer service, store environment)

Market share

The % of a market a company owns:

Company sales / Total market sales x 100 = Market share precent

Types of Competition

Perfect Competition - Large number of small brands. None with market control

Monopolistic Competition - Large number of companies equally with an opportunity for a degree of market share

Oligopoly Competition - Small number of large companies each with somewhat equal market share

Monopoly Competition - One companies has majority market share

Product Life Cycle

1. Introduction - product gets introduced to market

2. Growth - Product starts to grow (this is when advertising is done)

3. Maturity - Product reaches its peak

4. Decline - Sales start to drop and other innovations are introduced

5. Decision point - Rebrand, add new product, enhance service, etc

Fads, Niche, Seasonal

Fads - Products were popular for a short time

Niche - Small section of a market which a product dominates

Seasonal - Sales increase or decrease due to the time of year

Brand names

Corporate dominant - The name of the producer in the brands name (nike)

Private label - Uses the success of a brand to create another (great value, PC)

Product dominant - Brand name creates an image of of product (Acura, Sprite, Playstation)

Brand Logo

Monogrammatic logo - Brands initial is the logo (CCM, Youtube, Baskin Robins)

Visual Logo - Logo discribes the brand (Ferrari, Sunny D, etc)

Abstract Logo - Uses random lines to create an image to associate with their brand (Snapchat, Nike, etc)

Slogan

1. One sentence or less

2. States brand name

3. Provided benefits to customer

4. Catchy

5. Positive

Position Statement

More informal slogan

1. State the company name

2. Overall taget market

3. market segment

4. Benefits

Branding Strategies

1. Adapting - Changing products to fit a certain domain (McD

2. Brand Extension - Create a new brand based of the old ones success (Kellogs)

3. Licsencing - Pay a fee to use another companies name in your products (Lego Star-wars)

4. Cobranding - When two brands combine to cooperate for mutual benefit (OVO and raptors or Tim Hortons and Esso)

5. Acquiring a successful brand - Purchasing another successful brand (Facebook and Whatsapp or Google and youtube)

Packaging

1. Information

2. Consolidation - Keeps product together

3. Protection - Safety caps for kids or germs, etc

4. Brand identification - Something memorable (Toblerone, cocacola bottle, etc)

5. Promotion - Limited/unique packaging (jordans, BTS meal, etc)

Positioning

The way a customer perceives a company (cheap, expensive, quick delivery, etc)

Product development stages

1. Idea Generation - Inovate or invent

2. Idea screening - Figure out if its a good idea or ask people if they would use it

3. Product development - Develop a steryotype. See flaws

4. Marketing study - Find primary and secondary target markets and figure out how you will attract them

5. Feasible study - Create pricing (profit, cost, etc)

6. Product design - Design packaging, product, etc

7. Test market - Small groups of targeted market tries product and provides feedback to company

8. Market entry - Product is finally sold to real customers.

Market research process

1. Determine the problem

2. Collect information about the problem using primary and secondary market research

3. Tabulate data

4. Analyze data

Mean Median and Mode

Mean is the average

Median is the middle number

Mode is most occurring number

Long term Pricing techniques

1. Economy pricing: Setting the price low (Nofills, wallmart, etc)

2. Premium pricing: Setting prices high. Able to do this because of reputation or no competition (tesla, apple, etc)

3. Competition pricing: Following the price of competitors. Requires better marketing

4. Penetration pricing: Selling price below market when first introduced then once customers gained, increase price. Very risky (McD)

5. Skimming: Set price high when entering a market with no other competition and then undercut compeition once there is.

Short term pricing techniques

1. Phycological pricing: Odd numbers tend to seem like less ($4.99 vs $5)

2. Loss leader pricing: Set a popular item cheap and create traffic which them encourages the purchase of other items

3. Super sizing: Setting the price difference between small and large very minimal to people think its a better deal.

4. BOGO: Buy one get one

5. Bundle pricing: Combining products together at a cheaper price rather then when they are sold independently.

Human behaviour and pricing

1. Pricing to simular can lose sales

2. Price anchoring: Selling something expensive beside something cheap makes the cheap item seem like the customer is getting a better deal

3. Webers law: A noticeable change in price is determined by its previous price. A price increase of 10% is the perfect number

4. Simple pricing: Keeping prices simple. No decimals or extra numbers needed

5. Never compare prices: This gives the impression that the customer is being tricked

Inventory

1. Over of stock: Having to much inventory. Waste of money. Reduce price to encourage more people to buy

2. Out of Stock: Not having enough inventory. Potential sales are lost. Proper forecasting or ordering safety stock

3. Shrinkage: Loss of inventory due to damage or theft. Causes a loff of money for the company. Anti theft devices

4. Turn over: How fast you are selling you product. If turn over to high, could lead to out of stock and if turn over to low, could lead to over stock. Proper forecasting of sales, smart marketing, pre ordering.

Placement Tricks

Placement of essentials: Stores will often put essenstials at the back of the store so customers will have to walk through the entire store and potentially pick up unnecessary items

Eye level advantage: Store will place products at eye level to more peolpe see it. Middle shelf for adults and bottom for children

Smart marketing: Put the product in peoples minds through marketing

Impulse buying: Playing cheap and necessary items in the checkout line will cause people to impulsively buy

Cross selling and add ons: Placing items of simular nature near each other

End cap displays: Used to promote an item or display there best selling item to everyone walking by.

Media Factors

1. Reach - The number of people exposed to the ad

2. Frequency - The amount of times the message is dileverd

3. Selectivity - The ability to focus on a specific target market

4. Durability - The length the ad lasts

5. Lead time - The time it takes to make the ad

6. Mechanical requirements - The complexity to make the ad

7. Clutter - The amount of other ads competing in the same space

8. Cost - Money it takes to air

Types of Media

1. Magazines: Good Selectivity and Frequency. Bad Cost

2. Newspaper: Good for local advertising. Clutter

3. T.V: Good reach. Not selective and Clutter

4. Radio: Good reach and short lead time. No frequency or durability

5. OOH: Good reach. No selectivity and Costly

6. Direct home: Cost effective and low lead time. No durability (Often thrown away)

7. Internet: Good reach and Selective. No durability and clutter (people find it annoying)
   Specialty: Good selectivity. Limited reach

Goal (Ad)

1. Awareness: Spreading awareness about specific information

2. Trial: People try your product and hopefully come back (Coupon)

3. Preference: Convinces people there brand is better (“number one”)

4. Reminder: Reminding people their brand still exists

5. Repositioning: Changes in company, rebranding, etc (las vegas becoming more kid friendly

Message (ad)

USP

Appeal

1. Biological: Focuses on basic needs (Health, safety, etc)

2. Emotional: Focuses on emotions (Joy, happiness, sadness, guilt, etc)

3. Rational: Focuses on reasoning and logic (“more convenient, cost saving, less stress, more safe, etc”

4. Social: Focuses on social norms and peer pressure (acne kits, makeup, etc)

Print Ad

1. Headline

2. Visual

3. Copy

4. Signature

Social Media Marketing Steps

1. Research audience

2. What platform will you market on (facebook #1)

3. Establish important metrics

4. Get to know competition

5. Create unique content

6. Schedule posts

Social Media Metrics

1. Reach - How many people have seen the ad

2. Clicks - How many people have clicked the ad

3. Engagement - How many people have engaged with the ad

4. Hashtag - What were the most used hashtags

5. Likes

6. Sentiment - How do people feel about the ad

Money

Revenue: Money coming into the company

Expenses: The cost to run the company

Profit/Net income: Revenue - Costs

Intermedians

Importer: Has the rights to sell a product in another country (car, beer, etc)

Wholesaler: Buys product from domestic source and resells them to other businesses

Retailer: Sells product directly to consumer (Best buy, chapters, etc)

(Specialty channel is something that can be either direct or indirect (vending machine))

Sustainable competitive advantage

1. USP

2. Lowering production costs

3. Serving a niche market

4. Creating customer loyalty

Non-sustainable competitive advantage

1. Promotion

2. Placement (location)

3. Quality

4. Benefits

5. Price

6. Design features

Primary Vs Secondary Market Reaserch

Primary: Gathered straight from the potential client

Secondary: Gathered through graphs, surveys, data, statistics from government agencies, house of commerce and trade agencies

Social Media terminology

1. Analytics - the way you interpret and find patterns in data

2. Click through rate - Amount of people who click on your post

3. Conversion rate - Amount of people who take action on your post (signing up, purchasing, etc)

4. Engagement rate - People who click / People who saw x 100

5. Impression - How many times your ad appeared on a feed

6. Metric - A statistic that measures the performance of the ad