Marketing Exam

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Marketing

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Marketing

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

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Marketing Mix

4 P’s and 2 C’s

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4 P’s

Product, Price, Promotion and Place

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2 C’s

Customer and Competition

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Industrial Product/Service

Goes directly to a business to be used for industrial purposes. Ex. raw materials, machinery, cleaning services, etc.

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Consumer Product/Service

Goes directly to a consumer for recreational use. Ex. a book, a broom, hiring a maid, etc.

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Regional marketing

can be within a city, region, or group of provinces

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International marketing

sets up marketing and distribution centers in foreign markets-E.g. Honda USA, Honda Canada

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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

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Product Lifecycle

describe the changes in consumer demand over time.

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PLC Stages

Intro, Growth, Maturity, Decline, Decision Point

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Fad

  1. a product, service, or idea that is popular for a very short period of time. E.g. Silly bands

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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

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Seasonal

predictable sales during certain times of the year. E.g. Winter tires

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Niche Market

small section of the market that has little competition. E.g. Pet Hotel

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Demographics

study of distinct characteristics of people (age, gender, family life cycle, income level, culture, and ethnicity)

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Psychographics

measuring people’s beliefs, opinions, and interests

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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

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Direct Competition

Products that compete in the same category. E.g. Colgate, Crest

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Indirect Competition

Products that are not in the same category but still compete for the same consumers’ income. E.g. Colgate toothpaste, Listerine mouthwash

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Sustainable Competitive Advantage

are long-term methods by which a business holds onto its customers, in spite of the competition

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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

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Lowering product costs

using cost-efficient manufacturing processes to reduce the costs of making the product

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Serving a niche market

recognizing an opportunity and taking advantage of it in producing a product

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Customer Loyalty

the customer develops a strong relationship with the product/retailer and will not consider another brand or store

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Non-sustainable competitive advantages

are those that can be used by competitors to shift sales in their direction (short-term)

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Promotion (non-sustainable)

advertising to achieve ‘top of mind’ awareness

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Placement (non-sustainable)

the more places the product is available, the more competitive it is. E.g. Big Box stores

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Quality

A product can compete with others in its category by being the best

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Benefits of Use

A product that can do more or perform better than another product will have a competitive advantage

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Price (non-sustainable)

is only a competitive advantage if it is less expensive than a competitor’s product or service

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Design features

A design that consumers prefer provides a product with a competitive advantage

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SWOT Analysis

Strengths, Weaknesses, Opportunities, and Threats

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Primary Data

unanalyzed, current information collected by a researcher for a specific purpose

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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

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Test marketing

marketers produce a limited quantity of a product and introduce it into test markets (stores)

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Focus group Interview

a small group of people brought together to discuss a particular product

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observation

collect information by recording the actions of the person without interacting or communicating with them

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Internal Information sources

sales, inventory, advertising, and production records

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Secondary Data

marketing research collected and published by others- E.g. Stats Canada.  Less expensive than primary data

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Types of Secondary Data

  1. The Internet

  2. Books

  3. Periodicals-magazines & newspapers

  4. Consultants

  5. Databases

  6. Marketing Research Professionals

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Inventions

a new product that has never been done before-Eg. Black and White TV

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Innovations

a change (eg. technology) to an invention E.g. Colour TV

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Stages of Product Development

  1. Idea Generation

  2. Idea Screening

  3. Concept development

  4. Market Strategy

  5. Feasibility Study

  6. Product Design

  7. Test Marketing

  8. Market entry

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Idea Generation

brainstorming whether an invention or innovation is to be done

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Idea Screening

need to look at each idea to see if it is worthwhile and choose one.

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Concept Development

designing of a prototype

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Market Strategy

conduct market research

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Feasibility Study

looks at the features and design of the product the consumers want, determine costs and a price

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Product Design

takes into consideration consumers preferences.

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Test marketing

If positive, launch product, if not, make necessary changes.

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Market Entry

product enters the product life cycle.

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Utility

what is added to a product to make it valuable to the market

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Types of utility

  1. Form utility

  2. Time utility

  3. Place utility

  4. Information utility

  5. Possession utility

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Form utility

relationship between a product’s form and its function-scent, flavor, colour, design, packaging

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Time Utility

when the product or service is available when the consumer wants it (bathing suits in summer)

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Place Utility

makes it possible to purchase the product, the easier the product is to find, the more place utility it has

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Information utility

provides consumers with instructions, directions, user manuals

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Possession Utility

easy to purchase (eg. payment by credit card, payments, etc)

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Logo

generic term for all the symbolic ways to create a brand

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Monogrammatic logo

stylized writing of a company’s or product’s initials. E.g. CCM

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Visual-line logo

drawings of people, animals, or objects. E.g. Roots uses a beaver

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Abstract-shape logo

aren’t representative of identifiable objects. E.g. Nike’s swoosh.

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slogan

short, catchy phrase that is attached to the company’s name and logo

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Branding

A brand is the visual image that marketers create to allow consumers to identify their particular product or service

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Corporate-Dominant Branding

include the name of the company in the brand name or as the name of the product. E.g. Roots

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Product-Dominant Branding

connects a product with its positive attributes. E.g. Fancy Feast cat food-associates with gourmet cat food

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Marketing Skimming

setting an initial high price for a product/service

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Penetration Pricing

setting an initial low price for a product/service

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Competitive Pricing

matching prices with competitors

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Benchmark Pricing

standard price

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Leader Pricing

pricing of a popular product at a low price to attract customers to the store

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Everyday Low Pricing

where retailers guarantee to meet the lowest price in the market on certain staple goods

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Negotiated Pricing

when a good/service is purchased for less than the published price- E.g. used products

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Combo Pricing

customers get a special price on one item when they buy other items at the regular price

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Return on investment

overall revenue and profit that the sales produce

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Price Lining

selling various brands in a product line at different prices to appeal to different target markets

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Supersizing

adding volume to a low cost product to increase its selling price and profits

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Interest Free Pricing

selling products today that the customer pays for at a later date without paying an interest charge

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Psychological Pricing

selling a product for $1.99 instead of $2

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Purchase Discount

receiving a price reduction by buying in bulk

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Channels of Distribution

  1. Direct

  2. Indirect

  3. Specialty

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Direct Distribution

product is sold directly from producer to consumer

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Indirect Distribution

use of intermediaries (importers, wholesalers, retailers-‘middle man’) which sell to consumers

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