Marketing
all of the activities involved in the planning, pricing, promoting, distributing, and selling of goods and services to satisfy consumers’ needs and wants
Marketing Mix
4 P’s and 2 C’s
4 P’s
Product, Price, Promotion and Place
2 C’s
Customer and Competition
Industrial Product/Service
Goes directly to a business to be used for industrial purposes. Ex. raw materials, machinery, cleaning services, etc.
Consumer Product/Service
Goes directly to a consumer for recreational use. Ex. a book, a broom, hiring a maid, etc.
Regional marketing
can be within a city, region, or group of provinces
International marketing
sets up marketing and distribution centers in foreign markets-E.g. Honda USA, Honda Canada
Distribution Organization
organizes marketing activities around the ways that the product or service will be delivered to the customer. E.g. Coke-Vending machines, fast food chains
Product Lifecycle
describe the changes in consumer demand over time.
PLC Stages
Intro, Growth, Maturity, Decline, Decision Point
Fad
a product, service, or idea that is popular for a very short period of time. E.g. Silly bands
Trends
A product that is more lasting, and is a mass movement toward a particular style or value. E.g. Organic products, Environmentally-friendly products
Seasonal
predictable sales during certain times of the year. E.g. Winter tires
Niche Market
small section of the market that has little competition. E.g. Pet Hotel
Demographics
study of distinct characteristics of people (age, gender, family life cycle, income level, culture, and ethnicity)
Psychographics
measuring people’s beliefs, opinions, and interests
Maslow’s Hierarchy of needs
Arranged in a pyramid shape-the most basic need is at the bottom.
Needs-Physical, Safety, Social, Esteem, Self-Actualization
Direct Competition
Products that compete in the same category. E.g. Colgate, Crest
Indirect Competition
Products that are not in the same category but still compete for the same consumers’ income. E.g. Colgate toothpaste, Listerine mouthwash
Sustainable Competitive Advantage
are long-term methods by which a business holds onto its customers, in spite of the competition
Unique Selling Proposition (USP)
is the one thing that a company’s product has that competing companies do not have and are not likely to develop. E.g. Patent, License
Lowering product costs
using cost-efficient manufacturing processes to reduce the costs of making the product
Serving a niche market
recognizing an opportunity and taking advantage of it in producing a product
Customer Loyalty
the customer develops a strong relationship with the product/retailer and will not consider another brand or store
Non-sustainable competitive advantages
are those that can be used by competitors to shift sales in their direction (short-term)
Promotion (non-sustainable)
advertising to achieve ‘top of mind’ awareness
Placement (non-sustainable)
the more places the product is available, the more competitive it is. E.g. Big Box stores
Quality
A product can compete with others in its category by being the best
Benefits of Use
A product that can do more or perform better than another product will have a competitive advantage
Price (non-sustainable)
is only a competitive advantage if it is less expensive than a competitor’s product or service
Design features
A design that consumers prefer provides a product with a competitive advantage
SWOT Analysis
Strengths, Weaknesses, Opportunities, and Threats
Primary Data
unanalyzed, current information collected by a researcher for a specific purpose
Survey
a set of carefully planned questions that are used to gather data. Close ended questions-multiple choice, open ended questions-respondents give own answers
Test marketing
marketers produce a limited quantity of a product and introduce it into test markets (stores)
Focus group Interview
a small group of people brought together to discuss a particular product
observation
collect information by recording the actions of the person without interacting or communicating with them
Internal Information sources
sales, inventory, advertising, and production records
Secondary Data
marketing research collected and published by others- E.g. Stats Canada. Less expensive than primary data
Types of Secondary Data
The Internet
Books
Periodicals-magazines & newspapers
Consultants
Databases
Marketing Research Professionals
Inventions
a new product that has never been done before-Eg. Black and White TV
Innovations
a change (eg. technology) to an invention E.g. Colour TV
Stages of Product Development
Idea Generation
Idea Screening
Concept development
Market Strategy
Feasibility Study
Product Design
Test Marketing
Market entry
Idea Generation
brainstorming whether an invention or innovation is to be done
Idea Screening
need to look at each idea to see if it is worthwhile and choose one.
Concept Development
designing of a prototype
Market Strategy
conduct market research
Feasibility Study
looks at the features and design of the product the consumers want, determine costs and a price
Product Design
takes into consideration consumers preferences.
Test marketing
If positive, launch product, if not, make necessary changes.
Market Entry
product enters the product life cycle.
Utility
what is added to a product to make it valuable to the market
Types of utility
Form utility
Time utility
Place utility
Information utility
Possession utility
Form utility
relationship between a product’s form and its function-scent, flavor, colour, design, packaging
Time Utility
when the product or service is available when the consumer wants it (bathing suits in summer)
Place Utility
makes it possible to purchase the product, the easier the product is to find, the more place utility it has
Information utility
provides consumers with instructions, directions, user manuals
Possession Utility
easy to purchase (eg. payment by credit card, payments, etc)
Logo
generic term for all the symbolic ways to create a brand
Monogrammatic logo
stylized writing of a company’s or product’s initials. E.g. CCM
Visual-line logo
drawings of people, animals, or objects. E.g. Roots uses a beaver
Abstract-shape logo
aren’t representative of identifiable objects. E.g. Nike’s swoosh.
slogan
short, catchy phrase that is attached to the company’s name and logo
Branding
A brand is the visual image that marketers create to allow consumers to identify their particular product or service
Corporate-Dominant Branding
include the name of the company in the brand name or as the name of the product. E.g. Roots
Product-Dominant Branding
connects a product with its positive attributes. E.g. Fancy Feast cat food-associates with gourmet cat food
Marketing Skimming
setting an initial high price for a product/service
Penetration Pricing
setting an initial low price for a product/service
Competitive Pricing
matching prices with competitors
Benchmark Pricing
standard price
Leader Pricing
pricing of a popular product at a low price to attract customers to the store
Everyday Low Pricing
where retailers guarantee to meet the lowest price in the market on certain staple goods
Negotiated Pricing
when a good/service is purchased for less than the published price- E.g. used products
Combo Pricing
customers get a special price on one item when they buy other items at the regular price
Return on investment
overall revenue and profit that the sales produce
Price Lining
selling various brands in a product line at different prices to appeal to different target markets
Supersizing
adding volume to a low cost product to increase its selling price and profits
Interest Free Pricing
selling products today that the customer pays for at a later date without paying an interest charge
Psychological Pricing
selling a product for $1.99 instead of $2
Purchase Discount
receiving a price reduction by buying in bulk
Channels of Distribution
Direct
Indirect
Specialty
Direct Distribution
product is sold directly from producer to consumer
Indirect Distribution
use of intermediaries (importers, wholesalers, retailers-‘middle man’) which sell to consumers
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