DECA Marketing Cluster

Marketing mix categories

product, place, promotion, and pricing

What CAN we do in a marketing mix

These parameters can be controlled/adjusted to appeal to the target market

What can we NOT control in a marketing mix

Force of environmental factors such as competition, economic conditions, and consumer trends

Promotion

the advancement of a product, idea, or a point of view through informing the consumers with various communication channels

Product

a good or service that closely meets the requirements of a particular market ad yields enough profit to justify its continued existence

Marketing segmentation

marketing strategy which involves dividing a broad target market into subsets of consumers, businesses, or countries that have, or are perceived to have, common needs, interests, priorities, and then designing and implementing strategies to target them

Types of marketing segmentation

demographics, psychographics, geographics, and behavioral

demographics

covers whole societies/groups defined by “black and white” criteria such as age, income, class, or education

psychographics

the study of personality, values, opinions, attitudes, interests, and lifestyles

geographics

the segmentation of a market by area

behavioral

segments the intended market into consumers based on their behavior regarding the product

involves customers loyalty, knowledge of, attitude towards, and the usage of product

What are the marketing functions

Product/service management, distribution, selling, marketing-information management, financing, pricing, promotion

internal environment

factors, events, and conditions within a buisness influencing its choices, activities. and employees behavior

External (operating) environment

factors, events, and conditions surrounding a buisness that influence its actions and choices and determines opportunities and risks

Channel management

a company’s activities in organizing it’s different distribution channels and selling effectively through them

channel

a way in which products or services are made available to customers

channels of distribution

chains of buisnesses through which a product must pass to go through customers

channels of distribution ex..

wholesalers, retailers, distributors, the internet, etc

direct channels

shorter, allow consumers to buy goods from manufacturers

indirect channels

allow products to be bought from a wholesaler

what distances are less effective for product manufacturers?

long distances

direct channels

producer > consumer, examples..

online shopping

industrial goods

industrial goods

products used in the production of other goods, typically sold in bulk

Indirect channels

producers sell to intermediaries, who then sell to consumers, like wholesalers or retailers.

Producer > retailer > consumer

chain stores, frequent and regular updates

Producer > wholesale > retail > consumer

staple goods

• consumer goods that are bought often and consumed regularly

Producer > agent > wholesale > retail > consumer

Manufacturing company doesn’t want to deal with logistics

Producer > agent > retail > consumer

Short time storage goods

• Luxury goods, cosmetics, perishable goods

Wholesaler

Businesses that purchase products in bulk from manufacturers and sell them to other businesses typically offer lower prices and larger quantities than retailers, helping to reduce handling costs, which benefits both the wholesaler and retailer

Wholesaler

Intermediary in the supply chain, connect manufacturers and retailers

Retailer

A business that sells products directly to consumers rather than for resale, typically in smaller quantities

Agent

A representative who facilitates the sale of goods or services between buyers and sellers, often earning a commission on sales

Industrial user

Buys goods and materials to manufacture products or use in their business operations, and focuses on obtaining the necessary inputs

Vertical channel conflict

A disagreement between members at different levels of a distribution channel, such as between a manufacturer and a retailer, over issues like pricing or territory

Horizontal channel conflict

A disagreement between members at the same level of a distribution channel

Co-channel management

A company’s activities in organizing its different distribution channels and selling effectively through them

Marketing information management

the practice of monitoring the marketplace, organizing, and analyzing the results of data collection and developing strategies for future marketing activities

Marketing planning

the process of analyzing one or more potentially interesting marketplace in order to determine how a buisness can optimally compete in them

SWOT analysis

A chart that buisnesses use to analyze and plan their companies by identifying strengths, weaknesses, opportunities, and threats.

Primary data

experimentation, obtained by companies

Survey Method

Interview Method

Observation Method

Experimental (casual, if-then)

Secondary data

Data that has been previously collected for non-marketing activity and is available for a business' use

Usually provided by government, observative

examples: government statistics, published research reports, and data from third-party companies

Advantages of secondary data

Easily obtained, cost effective

Disadvantages of secondary data

May not be suited for purpose, can be out of date or inaccurate

Goal of Marketing-Information management

Limit buisness risks or Increase profit

Buisness risk

possibility that a company will have lower profit than anticipated, or will face a loss rather than a profit. Influenced by sales, volume, price per-unit, input costs, competition, overall economic climate, and government regulations

Product/Service Management

The process of creating and changing the information about a company’s catalog of offerings

Customer relationship management

managing a companies interactions with current an future customers

At a minimum, this is a database of customer contacts, purchase history, and technological support. can also include profiles of potential clients, understanding and leveraging the needs of current customers, and enhanced customer service based on data analysis

Manufacturing

Production of goods for se or sale using labor and machines, tools, chemical, and biological processing or formulation

Quality assurance

a program for the systematic monitoring and evaluation of the various aspects of a project, service, or facility to ensure that all standards are being met

Quota

A government imposed trade restriction that limits the number or value of goods and services that can be imported or exported during a particular time period. Used in international trade to regulate the volume of trade between countries

Warranty

Sellers assure the purchaser that goods/services being purchased will work as expected, and if not, shall be replaced/repaired

Implied Warranty

takes effect automatically by state law whenever a purchase is made

Limited Express (written) Warranty

May exclude certain pats of the product from coverage or require the customer to bear some expense for repairs resulting from defects

Full Express (written) Warranty

If a product is found to be defective within warranty period, it will be repaired or replaced at no cost to the consumer

Bundling

A marketing strategy that uses both products and services together in order to sell them as a single combined unit. Allows the convenient purchase of several products/services from one company

Branding

Marketing practice of creating a name, symbol, or design that sets out and identifies a product

Product mix

Various products offered by a seller that can yield greater revenue when marketed together rather than sold individually

Product life cycle

The period of time over which an item is developed, brought to market and eventually removed

PLC: Introductory period

Any business that is launching a new product needs to appreciate that this initial stage may require significant investment. This isn’t to say that spending a lot of money at this stage will guarantee success. Any investment in research and new product development has to be weighed up against the likely return from the product, and an effective marketing plan will need to be developed in order to give the new product the best chances of achieving this return

PLC: Growth

Can be considered as the key stage for establishing a product’s position in a market, increasing sales, and improving profit margins. Achieved by the continued development of consumer demand through the use of marketing and promotional activity, combined with the reduction of mnufacturing costs. How soon a product moves from previous stage to this one can vary significantly from one market to another

PLC: Climax

The highest point of a businesses success. The company is currently not being affected by the decreasing sales, but is to come in the foreseeing future

PLC: Maturity

The business’ growth in sales diminishes. Now new competitors often enter into the market. Primary objective of a ___ buisness is to maintain their market share. The business looks to maximize their profit to effectively hold their leverage over other companies

PLC: Decline

The stage in which sales diminish. Firm must make a decision between keeping their current product, changing their product, locating a new maret, or selling the product out. By keeping the product the way it has been often results in greater losses.

Most effective approach while maintaining the buisness to exit maturity stage?

Establishing new use or new target market

Most financially secure way to exit maturity stage?

Selling the product to another firm or liquidating resources

How does the product cycle effect marketing during the INTRODUCTION stage?

The firm will look to inform their target market about their product

How does the product cycle effect marketing during the GROWTH stage?

The firm will look to inform and persuade the consumer to buy their product

How does the product cycle effect marketing during the MATURITY stage?

The firm will look to persuade the audience and remind them of the products greatness

How does the product cycle effect marketing during the DECLINE stage?

The firm will look to use nostalgic techniques to remind the market of their product

Promotional mix

special combination of promotional methods used to advertise products. Includes advertising, direct selling, etc.used to accomplish an overall marketing strategy

Selling

Concepts and actions needed to determine clients needs and wants, enchancing future buisness oppertunities

Advertisement

Marketing used to encourage/persuade/manipulate audience

• Broadcast/print media-radio, magazines, newspapers, etc

Publicity

Type of promotion where information is disseminated through various media to attract public notice

Specialty media

relatively permanent promotional message printed on small, handy items like bags, calendars, cups, diaries, etc., given away as gifts to serve as reminders

Direct marketing

company’s message is provided directly to a potential customer (typically used by companies with smaller advertisements on TV) ex: fliers, mailers, catalogs

Public relations

the professional maintenance of a favorable public image by a company or other organization

Word-of-mouth channels

Oral or written unpaid recommendation by a satisfies customer to the prospective customers of a good or service

Sales promotion

Set of marketing activities, other than advertising or public relations, undertaken to boost sales of the product or service

Promotional Plan

a vital planning tool by most business managers that helps contribute towards the succesful launch of a new product or service or expansion into a new market. Outlines marketing strategies, target audience, and promotional tactics to achieve specific objectives.

Price

quantity of payment someone gives in return for a good or service

Pricing

Depending on the firms average cost and customers perceived value of the product compared to the value of competitors and the economy

Pricing/cost function

Function of input prices and output quantity, basically calculates the cost of making a certain output given input prices

Purchasing

The activity of acquiring goods or services to accomplish the goals of an organization

Major objectives to purchasing..

1. Maintain the quality and value of a company’s products

2. Minimize cash tied to inventory

3. Maintain the flow of inputs to maintain the flow of outputs

4. Strengthen the organizations competitive position

Communication

IN BUSINESS it is a key function. Happens between levels, departments, and employees. 2 way process of reaching mutual understanding and exchanging info, news, ideas, etc.

Channels of communication

Mediums used to transfer message from 1 party to another. Includes print, internet, phones, etc.

Internet

It is now the World Wide Web (WWW) network of computers that is dispersedly managed with minimal restriction

Intranet

Operates much the same as the internet but is restricted to a single corporate entity that now has full control and management over it. Able to maximize restrictions over users.

Ethernet

Standard cable for computers to hook up to the network. It is also used for internet devices (routers, modems, switches) to interface with each other

Business activities

any activity engaged to make a profit, included operations, marketing, production, administration

Customer Personalities: Analytical buyers

These people are known for being systematic, well organized, and deliberate. These individuals appreciate facts and information presented in a logical manner as documentation of truth. They enjoy organization and completion of detailed tasks. Others may see them as too cautious, overly structured, does thing too much “by the book”

Customer Personalities: Driver Buyers

They thrive on the thrill of the challenge and the internal motivation to succeed. They are practical folks who focus on getting results. Can do a lot in a very short time. They usually talk fast, direct and to the point, often seen as decisive, direct, and pragmatic

Customer Personalities: Expressive Buyers

Very outgoing and enthusiastic, with a high energy level. They are great idea generators, but usually do not have the ability to see the idea through to completion. Enjoy helping others and are particularly found of socializing. They are usually slow to reach a decision. Often seen as a talker, overly dramatic, impulsive, manipulative.

Customer Personalities: Amiable Buyers

Dependable, loyal, and easy going. They like things that are non-threatening and friendly. They hate dealing with impersonal details and cold hard facts. They are usually quick to reach a decision. Often described as a warm person and are sensitive to the feelings of others, but at the same time wishy-washy.

trial close

an initial effort by a salesman to close a sale

Mark-up pricing

The practice of adding a constant percentage to a price to determine its selling price

Why is mark-up pricing used?

Mark-up pricing is used when businesses want to set prices based on the costs of their products plus a predetermined profit margin

Competition oriented pricing

A seller uses the prices of competitors as a benchmark instead of considering own cost and demand

Channel-member relashonships

Interconnectedness of members in a channel of distribution

Marketing research brief

A written document that includes a market and strategic overview, background information, role of research, objectives, suggested approach and research target, reporting requirements, timing, budget, and existing research or other information related to the study