Principles of Marketing FINAL - Clay Johnston (in progress)

Direct Distribution

directly from the manufacturer to the consumer

Indirect Distribution

from the manufacturer to the wholesaler to the retailer to the consumer

Universal functions of Distribution:

Buying and selling

Transporting

Storing

Transportation

- Water Transportation:

Slowest shipping mode. Low cost and can handle a wide variety of goods. Often, the only practical approach to international distribution.

- Airfreight is expensive but fast

Storing

- Needed When Production Doesn't Match

Consumption

- Keeps Prices Steady

- Builds Channel Flexibility

Vertical integration: definition

when a company expands into different stages of its supply chain to gain more control and improve efficiency. cut out middle man cant cut out middle mans job

Intensive Distribution (matching question)

stocking the product in as many outlets as possible like coke, if theres no coke, you can buy something else

Selective Distribution (matching question)

not as many places to access these products like iPhone. based off target market

Exclusive Distribution (matching question)

a form of distribution that establishes one or a few dealers within a given area like BMWs

Channel Conflict

occurs when different distribution channels of a company compete or clash, negatively impacting overall sales or relationships.

Push-Pull Strategy

every low store to get it (push down to every store)

Promotional tools:

Personal selling

Mass selling

Advertising (paid for)

Publicity (prayed for)

Sales Promotion

Direct Marketing

How Promotion changes over the life cycle of a product offering

building awareness in the introduction phase to emphasizing differentiation in growth, maintaining loyalty in maturity, and reducing efforts in decline.

Reach and Frequency

total people who see your add and how often

CPM

cost per thousand

Paid, Owned and Earned Media (matching question)

Paid- pay for all advertising

Owned- shareholders control media

Earned- Adapted from owned, consumer generated, uncontrollable.

Continuity

maintaining consistent branding and communication to build long-term customer relationships.

Flighting

where advertising is scheduled in alternating periods of intense activity and inactivity to maximize impact and manage costs.

Pulsing Media Scheduling

a marketing strategy that combines continuous, lighter advertising with heavier bursts during peak times, like holidays or product launches, maintaining year-round presence but increasing intensity strategically.

Guerrilla Marketing: Definition

Unconventional marketing intended to get maximum results from minimal resources.

Best applied for new brands to generate awareness, brand personality, and publicity

Derived Demand

when the demand for one product is driven by the demand for another related product.

The buying center roles of the Decision Making Unit:

Decider

User

Influencer

Buyer

Gatekeeper

Initiator

(satisfy all of these)

Purchase situations:

Straight rebuy

Modified rebuy

New buy

Definitions, pros/cons of Digital Marketing Tactics:

Display network

Organic SEO

Paid Search

Organic Social

Social Paid

PPC

Pay per Click

Keywords

- Relevant

- Popular

- Efficient

- "Winnable"

- Affordable

Product Life Cycle

introduction, growth, maturity, decline

Price

what a customer gives in exchange for what they get; the quantity of payment or compensation given by one party to another in return for one unit of goods or services

Promotion

communication via advertising, public relations, sales promotions, direct marketing, online marketing and/or professional selling that is used to inform, persuade or remind the target market of the benefits and value of a product

Distribution (place)

or the route, through which goods move from the manufacturer to the final user; the ultimate location where the product is made available to the customer for purchase and/or consumption

Positioning: Definition, and how positioning strategy may be used

Making a positive association for itself in the mind of the consumer

Skimming

setting a high initial price for a new product to maximize early profits before gradually lowering it to reach more customers.

penetration

a pricing strategy where a company sets a low initial price to attract customers quickly and gain market share.

Brand definition

Mental construct. The customers experience with a product. The logo, color scheme, and slogan is the visual representation of the brand. It brings the brand to mind

Brand Awareness

the extent to which consumers are familiar with the distinctive qualities or image of a particular brand of goods or services.

Brand preference

a consumer prefers a particular brand over others but might consider other options

Family branding

A product assortment, A product line. An individual product Individual Branding. nike

individual branding

P&G- several brands under one house.

Brand equity definition

A brand's power derived from the goodwill and name recognition that it has earned over time, which translates into higher sales volume and higher profit margins against competing brands.

Market segmentation (matching question)

Demographics

Psychographics

Behaviors

all costumers are different

Demographics

statistical data relating to the population and particular groups within it.

Psychographics

lifestyel

Behaviors

statistical data relating to the population and particular groups within it.

Targeting

Single (niche)

Multiple (differentiated)

Combined (non-differentiated)

Niche

Concentrating all marketing efforts on a small but specific and well-defined segment of the population.

Differentiated

Approach under which a firm aims to develop and market unique products for different customer segments.

Non-differentiated

a marketing strategy that aims to reach as large an audience as possible

Universal functions of distribution

Buying and selling

transporting

storing

SMART objective

Specific

Specific, Measurable, Agreed-upon, Realistic, Time-sensitive

CMP

cost per thousand.