Marketing Exam Review

Marketing

  the sum of all activities involved in the planning, pricing,  promoting, distributing, and selling of goods and services to satisfy needs and wants

Needs and Wants

Needs are stuff that is necessary for our survival. Examples are water, food, clothing and shelter. Wants are things that are not necessary for survival but add comfort and pleasure to our lives. Examples are: Tesla, Airpods, Diamond ring 

Goods and Services

Goods are physical objects that can be seen and touched and are tangible Examples of goods are: Shoes, pencil, backpack. Services are intangible things: activities or deeds. Examples of services are: haircut, getting your nails done, going to the hospital.  

Consumer Goods and Services

Consumer Goods and Services: are products intended for personal use by the general public

Industrial goods and services

are products used in business to make other products or to assist in business operations. They can be : Raw Materials, Processed Goods or Finished products

Marketing Concept

The idea that an organization should strive to satisfy the needs of consumers, while also trying to achieve the organization’s goal

4 P’s of Marketing

Product – a good, service, or idea to satisfy the consumer’s needs. Businesses consider Design,  Technology, Packaging, Quality, Branding, Usefulness, Convenience and Value

Price – what is exchanged for the product; amount of money a customer is willing to pay. What the perceived value of the product is to the customer rather than an objective costing of the

product

Promotion – a means of communication between the seller and buyer. This is all activities that connect the customer to the product and its benefits/features. This includes advertising, sales promotions, special offers, product trials, endorsements, social media and public relations

Place – a means of getting the product into the consumer’s hands; where the product/service is made, stored and transported to the customer. 

Direct Distribution

the manufacturer directly provides the product to the consumer. E.g. internet sales, One on One meetings.

Indirect Distribution

a company will use an intermediary to sell a product to the consumer. The company may sell to a wholesaler who further distributes to retail outlets. E.g. Nike selling to Shoe and Sports Stores

Specialty Channels

 online buying, shipping to consumers front steps like: Amazon and Netflix

2 key factors pricing depends on

What is the cost of doing business and What profit does the company hope to make

Why is marketing more than just promotion?

Marketing is more than just promotion because companies have to decide the price and what pricing strategy to use, the place of the product and how they are going to sell it and the product itself and what benefits and features it has to offer 

 5 Economic Utilities

Form utility: Changing raw materials or putting parts together to make them more useful. Examples are: •chain, wheels, handlebars, gears, frame  

Place utility: •Having where customers can buy it, Most convenient, Most efficient, catalogs, Retail stores. 

Time utility: •Having a product available at a certain time of the year or a convenient time of the day. For example:Christmas gifts, Flip flops.

Possession utility: •The exchange of a product or service for monetary value. Cash/Cheques, Credit/Debit cards, E-transfers, Layaway plans 

Information utility: Communication with the consumer, salespeople, displays, packaging and labelling, advertising tells consumers where and when they can buy a product. 

Customer

someone who buys a product

Consumer

someone who uses a product

Why do Marketers use Consumer segments and target marketing

The target marketing is the segment that the marketer t wants to attract the most and usually has the most potential for success. Consumer segments are each identified group of consumers with common characteristics and buying habits. 

Purpose of consumer profiles for Marketers

Distribution methods: knowledge of the target market will indicate how best to deliver

the product to the consumer.

Advertising: knowledge of the target market helps advertisers create meaningful messages.

Product design: consumers in a target tend to like the same colours, shapes, materials, and other design features

Media: discovering the media that different groups of consumers use helps marketers send promotional messages to their target audience.

International markets: profiles of consumers in other countries may indicate marketing

Target market segmentation and why its used

It is used to attract certain consumers and the product has a high potential for success 

Demographics

- is the study of obvious characteristics that categorize people. These characteristics include age, gender, family life cycle, education level, income level, and ethnicity and culture

Psychographics

is a system for measuring consumers’ beliefs, opinions, and interests. Psychographics profiles people according to: religious beliefs, tastes in music, lifestyle, attitudes towards health and politics, personality traits

Geographics

 is where consumers live. Consumers living in different geographic regions have different wants and needs

Urban, Suburban and Rural

 Urban -  The urban consumer lives within the boundaries of a city.The urban lifestyle is primarily focused on apartments, condos, and houses with small yards. They spend money on cultural events, restaurants, parking, and public Transportation. 

Suburban: Typically needs and spends money on:  1-2 cars,  gardens, barbecues, household,

furnishings. 

Rural -  usually needs a truck to cope with Canadian winters and to carry large items, often farmers or people who own large pieces of land

Product Benefits

refer to the value or advantage a customer gains from using a product. These are different from product features, which describe what the product is or does. Benefits focus on what the product does for the customer—how it solves a problem, satisfies a need, or improves their life. Functional Benefits, Emotional Benefits and Social Benefit

Maslow’s Hierarchy of Needs

Maslow’s theory arranges needs in ascending order of importance.The most basic need is at  the bottom and, once fulfilled, the next higher-level need  becomes more important

What are the needs for Maslows?

Physical needs: water, food shelter

Safety/Security : freedom from danger, adequate financial support

Love and Belonging: belonging to teams and clubs, having friends, love relationships, family ties 

Esteem needs: celebrating personal achievement, being successful and admired by others, self esteem, confidence

Self-Actualization: motivated by a desire to find self-fulfillment and realize personal potential, living to highest potential, creativity, morality, problem solving 

3 areas of Freud’s Psychic Apparatus

Id - set of uncoordinated instinctual thoughts, childlike and impulsive behavior 

Ego - the organized realistic part of the brain that tries to please the impulsive childlike part by being reasonable and comprising 

Superego - plays the critical and moralizing role 

Thorndike’s Theory:

e if the result is positive (satisfying), the behavior is reinforced; if negative (unsatisfying), the behavior is weakened. Learning Through Trial and Error: Thorndike observed that animals (like cats in puzzle boxes) learned behaviors by trying different actions until one led to a desired outcome (like escaping the box). Over time, successful actions were repeated more quickly. Operant conditioning: a method of learning that occurs through rewards and punishment

Ivan Pavlov’s Theory

Unconditioned Stimulus	Naturally triggers a response	Food
Unconditioned Response	Natural reaction to unconditioned stimulus	Salivation
Conditioned Stimulus (CS)	Originally neutral, now triggers a response after association	Bell (after conditioning)
Conditioned Response (CR)	Learned response to the CS	Salivation at the sound of the bell

SWOT ANALYSIS

SWOT analysis is a tool for auditing an organization and its environment. SWOT stands for strengths, Weaknesses, Opportunities & Threats. The main purpose of SWOT analysis is to add value to your products and services

Strategy

An organization’s long-term course of action designed to deliver a unique customer experience while achieving its goals.

2 types of organizations

Profit driven - Looking to be profitable. Ex. Tim Hortons, Walmart, Starbucks, etc.

Non-profit organization - is a non-governmental organization that serves its customers but does not have profit as an organizational goal . Ex. Salvation army and food banks.

Social Responsibility

individuals and organizations are apart of a larger society and are accountable to that society for their actions. An example is Patagonia. 

Competitive advantage

A unique strength relative to competitors, that can not be easily copied by the competition.Often based on quality, time, cost, innovation, customer intimacy or customer experiences.

Competency:

An organization’s special capabilities, including skills, technologies, and resources, that distinguish it from other organization’s and provide value to its customers.

Market segments

are groups of a larger market that share similar characteristics, needs, or behaviors. Instead of treating all customers the same, businesses divide the market into segments so they can advertise their products, services, and marketing messages more effectively. They are used to help businesses focus on specific groups instead of trying to reach everyone.

Gross income:

The total amount of money made in one year by a person, household or family unit. 

Disposable income

The money a consumer has left after paying taxes to use for such necessities as food, shelter.

Discretionary income

The money that remains after paying for taxes and necessities and are used for entertainment items and luxury items.

Invention

New devices, methods, or processes developed from study and experimentation ex. The light bulb, an airplane 

Innovation:

Is a product or service that uses new technology, items, or processes like: iPhone 16, air pods pro

6 stages to new product development.

Idea generation is brainstorming ideas for a new product. 

Idea screening is listing the positives and negatives of each idea. 

Developing the product is making the prototype of the product. 

Testing the product is describing the target market, 4 Ps and marketing strategy of the product. Introducing the product is making an advertising campaign for the product and see how long it will take to come to the market.

Evaluating customer acceptance is making a survey and determining if the product was successful or not

Product Mix

Includes all the different products that a company makes or sells.

Product Line

is a group of closely related products made by or sold by a business

Product Depth:

refers to the number of product items offered within each product Line. Ex. Kraft manufactures and sells Triscuits.

Product Width

refers to the number of different product lines a business manufactures and sells. Ex. Kraft manufactures Mr.Christie cookies, Cadbury chocolate, Triscuit cracker

Brand

: is a name, term, design, or symbol that identifies a business or organization and its product 

Logo: is a symbol of the brand. It can be Monogrammed logos (wordmark), Visual symbols

(pictorial) or abstract symbols. 

Slogan: A catchy phrase that is attached to the name and logo.

Trademark: A Brand name, brand mark, trade name, trade character, or a combination of these

that is given legal protection by the federal government

Trade name:

Identifies the company or division of a particular corporation. This is the “legal” name that a company uses when it does business. 

Trade character:

Is a brand mark with human form or characteristics

Logo:

is a symbol of the brand. It can be Monogrammed logos (wordmark), Visual symbols(pictorial) or abstract symbols. 

Slogan:

A catchy phrase that is attached to the name and logo.

Trademark

a Brand name, brand mark, trade name, trade character, or a combination of these that is given legal protection by the federal government

Manufacturer Brands:

Owned and initiated by manufacturers. They generate the majority of sales for most product categories

Generic Brands:

Represent a general product category and do not carry a company or brand name. Ex. President's Choice, Great Value 

Product Positioning

refers to the efforts a business makes to identify, place, and sell its products in the marketplace. The focus of product positioning is the image a product projects. The goal of product positioning is to set the product apart from the competition.

Benefits positioning:

Customers want every product they buy to do something for them, to benefit them in some way. Consequently, many products offer features that other products do not.

Price Positioning

A business may offer a low priced economy line, a mid priced line or a luxury high priced product. If a marketer decides on the most expensive option, then the marketing efforts need to position it as a luxury good or service. 

Target positioning:

A target position should cause the people in the target market to think that they own the brand, that the brand is theirs and any other brand is outside the target market.EX. Marketers of basketball shoes position their product to appeal to a specific target market (“ballers”).

Distribution positioning

Some marketers use a unique sales technique and become known for their method of distribution.

EX. Amazon Prime offers 1 day or less delivery to your house. 

Qualitative research

is a type of research that focuses on understanding people’s experiences, thoughts, behaviors, and emotions in depth. Examples: Invertiews, focus groups, case studies 

Quantitative research

is a type of research that focuses on collecting and analyzing numerical data to identify patterns, test theories, and make predictions. Examples: Surveys with closed-ended questions, experiments, questionnaires with rating scales

Open ended questions

: they encourage detailed responses, opinions, thoughts, or explanations. and can’t be answered with just "yes" or "no as"they require more than one word, they often start with Why, How, What, Describe, Tell me about, etc

Closed ended questions:

Get specific, concise answers—yes/no questions,  Answers:yes, no, or a specific piece of info, Often start with: Do, Did, Is, Are, Can, Have, Will, etc.

Social media marketing

a form of digital marketing that uses social media platforms to promote a brand, product, or service. It involves creating and sharing content on platforms like Facebook, Instagram, Twitter and TikTok

Social media marketing can help with goals by:

Increasing website traffic, Raising brand awareness, Creating a brand identity and positive brand association and Improving communication and interaction with key

audiences

The 5 areas of Marketing Funnel:

1. AWARENESS, 2. CONSIDERATION, 3. CONVERSION, 4. LOYALTY 5. ADVOCACY

Top of the Funnel - Tofu: AWARENESS & INTEREST

•Introduce people to your business, service, or product and problem that will be solved. Also called the awareness, attention, discovery, or engagement stage, You want as many people as possible to enter your funnel. The more you reach, the more you may convert into customers and define your target customers

Middle of the funnel - Mofu: CONSIDERATION 

• People identify a problem and research solutions, people want to know which product or service is right for them

•Bottom of the Funnel (Bofu) CONVERSION & LOYALTY

• Convert prospects into customers and maintain a healthy, long-term customer

relationship,  people purchase the product or service and customers are happy

Advertsing and its purpose:

is the process of promoting products, services, or ideas to a target audience through various media channels. Its main goal is to influence people's behavior

3 things an advertising stargey attemps to do

 Inform - Educate consumers about product features, benefits, prices, or how to use it.
3. Persuade - Convince people to choose your product over competitors'. 4. Remind - Keep the brand fresh in people’s minds.

Elements of advertising stargeries

1. Internet Selling - Going online to Websites and Cyber Monday Sales, 

2. Selling on Social Media - Facebook, Instagram, TikTok

3. Newspapers: Good for local advertising, Broad range of ad types, Short lead time, Unselective in terms of target groups, 

4. Magazines: Market to specific groups, Consumers may read more than once,

Circulation may vary greatly, May be expensive, 

5. Out of Home -  Billboards, posters,transportation ads Large reach, multiple experiences No selectivity in terms of target market, Must be brief (2-3 seconds to win a customer)

6. Specialty Advertising: Brand identification can be placed on items such as golf balls, bags, Pens, Done usually at events, Limited reach

7. Television: Versatile and can reach huge audiences, Combination of sight and sound makes for great impact, Range of prices

8. YouTube: Similar to Television advertising, Moving images, Very popular, 

9. Radio: Good for local or wide appeal, Short lead time, Somewhat selective in terms of time of day and format, tExperienced in the car, stores,etc.

10. Personal Selling: Consists of oral presentations given to one or more potential buyers, Designed to close a sale after advertising, publicity, or sales promotions have attracted the customer

11. Direct to home: Junk mail, telemarketing, No selectivity, Can be costly and consumers may ignore them

AIDA

AIDA stands for Attention, Interest, Desire and Action. Attention - something in the ad must attract the customer. Interest - once you capture the reader's attention you need to maintain interest.  Desire - Should convince the consumer that the product or service will satisfy their needs. Action - The ultimate aim of an ad is to generate action on the part of the

target consumer and to cause the target consumer to purchase the product or go find out

more information about the product

Product Life Cycle:

1. ___Development___________: The company tries to determine the best product, pricing, promotion and place. This product or service is not open to the public. Ex. Apple ring. 

2. ___Introduction_____________:

A product or service that does pass the company’s tests is introduced to the marketplace.

When the new product or service is released, it is likely to be supported by a lot of advertising. Example: Kylie hybrid blush 

 3. _____Growth____________:

Advertising continues and the product or service is available in more.Once early adopters find and use a product, others begin to try it and sales start to increase rapidly. Marketers must be careful here, competitors begin to enter the market . Ex. Stanley cups. 

4. ____Maturity_____________:

Sales level off and supply equals demand. Every consumer who wants one can buy one. Ex. Lululemon defines jackets. 

5. _____Decline_______________:

As a product gets older, it enters the decline stage. • Sales decrease, and supply is greater than demand. Products become obsolete. Examples: fidget spinners 

Fads:

A product or service, or idea that is extremely popular for a very brief period of time.  Examples: Fidget Spinners, Shopkins. 

Trends

Has a more lasting effect on the marketplace. It is a mass movement toward a particular style or value, and can result in a number of products that take on a traditional product life cycle. Current trend today towards organic food products, home automation, voice control gadgets.

Niche markets:

: A small section of the market that the product dominates.The market is so small there is little competition.

Seasonal Markets:

Periods of high and low demand depending on the nature of business and season. Examples: summer resorts are ghost towns in winter, ski resorts quiet in the summer

Sales of snow blowers will peak in the winter and decline through the summer months

Product Modification

Involves altering a product’s characteristics such as quality, performance, appearance, features or packaging

Market Modification

Company tries to find new customers, increases a products use among existing customers or create new-use situations 

Repositioning the Product

Companies reposition a product or brand in order to increase sales. A firm can reposition a product by changing one or more of the 4 Marketing Mix elements. (Product, Price, Promotion, Place), Reacting to a Competitors Position, Reaching a New Market, Catching a Rising Trend, Changing the Value Offered

Branding Personality:

a set of human characteristics associated with a brand name. Coca- Cola is “real” and “cool” Pepsi is “young”, “exciting”, and “hip

Packaging

is important to marketers because packing is the first thing a customer sees when looking at a product. It has to be eye-catching to get the person's attention and keep them interested in the product. The package is a physical container or wrapping for a product and it represents: the size and shape and the final appearance of the product at the time of sale

Labelling

is important because it includes: Who made it, Where and when it was made, How it is to be used and the package content and ingredients. The customer's first exposure to a product is the package and label, and both are an expensive and important part of the marketing strategy. The information on label plays a major role in

helping consumers decide if the product is right for them

Multi-product Branding

- A company uses one name for all its products

Multi-branding -

A manufacturer’s branding strategy giving each product a distinct name

Private Branding

Mixed Branding - A firm markets products under its own name and that of a reseller because the segment attracted by the reseller is different from its own market

A company manufacturers products but sells them under the brand name of a wholesaler or retailer 

Mixed Branding - A firm markets products under its own name and that of a reseller because the segment attracted by the reseller is different from its own market

Cohort Brand Management

The bundling of one company’s multiple brands into a single marketing effort aimed at a common consumer

Mixed Branding

A firm markets products under its own name and that of a reseller because the segment attracted by the reseller is different from its own market