FBLA Marketing Ultimate Study Guide

Unit 1 Basic Marketing Functions

1. Types of Companies:

   • Production-oriented: Focuses on making as many products as possible.

   • Sales-oriented: Focuses on aggressive sales tactics to sell what’s produced.

   • Marketing-oriented: Focuses on understanding customer needs and creating products to meet them.

2. Marketing Concept: Meeting customer needs while achieving company goals; benefits include customer satisfaction, better sales, and stronger relationships.

3. Marketing Functions: Involves tasks like product development, promotion, distribution, and pricing.

4. Business Ownership Types:

   • Sole proprietorship: One owner, simple to start.

   • Partnership: Shared ownership, shared profits.

   • Corporation: Owned by shareholders, limited liability.

   • Franchise: Buying the right to use an established brand.

   • Licensing: Selling the rights to a product/brand.

5. Marketing Mix (4 P’s): Product, Price, Place, Promotion — crucial for creating successful strategies.

6. Product Mix Strategies: Offering a variety of products or adjusting product lines to meet market demands.

7. New Product Development: Steps include brainstorming, creating prototypes, and testing with consumers.

8. Product Line Expansion: Adding new variations of a product can boost sales but may risk spreading resources too thin.

9. Legal Aspects: Patents (inventions), copyrights (creative works), and trademarks (logos/names) protect businesses.

10. Packaging Functions: Protects products, informs customers, and attracts buyers.

11. Branding & Labeling: Build trust, improve recognition, and provide key product details.

12. Product Positioning: Marketers highlight features, benefits, and price points to stand out from competitors.

13. Pricing Factors: Costs, product quality, competition, and customer loyalty impact pricing decisions.

14. Consumer Practices: Issues like shoplifting or false returns increase costs, which may raise prices.

15. Government Regulations: Laws prevent unfair pricing tactics like discrimination or price fixing.

16. Supply & Demand: Prices go up when demand is high or supply is low, and vice versa.

Unit 2 Channels of Distribution

1. Concept of Distribution and Channels:

   • Distribution is the process of moving products from the manufacturer to the consumers.

   • Channels of Distribution can be:

     • Direct: Manufacturer → Consumer

     • Indirect: Manufacturer → Intermediaries (e.g., wholesalers, retailers) → Consumer

2. Direct vs. Indirect Channels:

   • Direct Channels: Best for expensive, custom, or perishable goods that require direct customer interaction (e.g., online stores, farmers markets).

   • Indirect Channels: Useful for mass-market goods. Includes:

     • Wholesalers: Buy in bulk and sell to retailers.

     • Agents/Brokers: Connect buyers and sellers without owning the product

3. Efficient Distribution Methods:

   • Using cost-benefit analysis helps determine the best distribution method:

     • High-end products may need direct sales to maintain quality control.

     • Everyday products may rely on wholesalers to reduce costs.

4. Shipping & Receiving Processes:

   • Includes steps like packing, labeling, loading, tracking shipments, and verifying received items.

5. Transportation Systems:

   • Motor (Trucks): Flexible, ideal for local or regional deliveries.

   • Rail: Cost-effective for heavy, bulk items over long distances.

   • Water (Ships): Best for international shipping and large cargo.

   • Air: Fastest method, ideal for urgent or high-value deliveries.

6. Storage & Warehousing:

   • Cold Storage: For perishable items like food or pharmaceuticals.

   • Commodity Storage: For bulk items like grains or raw materials.

   • Distribution Centers: Used by retailers for fast product distribution.

   • Public Warehousing: Shared storage for multiple businesses.

   • Private Warehousing: Owned by businesses for their exclusive use.

7. Merchandise Handling & Inventory Control:

   • Methods include barcoding, RFID tags, and automated systems to track inventory levels, reduce theft, and improve restocking efficiency.

Unit 3 Legal, Ethical, and Social Aspects of Marketing

1. Impact of Marketing Regulations/Laws:

   • Domestic Regulations: Laws ensure fair competition, protect consumers, and prevent false advertising (e.g., FTC guidelines).

   • International Regulations: Companies must comply with trade laws, product standards, and advertising rules in different countries.

2. Ethical Issues in Marketing:

   • Examples include false advertising, deceptive pricing, and invasion of consumer privacy.

   • Unethical practices can harm brand reputation and lead to legal consequences.

3. Influence of Special Interest Groups & Cultural Changes:

   • Special Interest Groups: Pressure from consumer rights organizations, labor unions, or environmental groups can impact product development, pricing, or advertising strategies.

   • Cultural Changes: Trends like aging populations, smaller households, and increased mobility influence consumer needs and marketing strategies.

4. Social Responsibility in Marketing:

   • Companies are expected to make ethical choices, reduce environmental harm, and engage in community support (e.g., eco-friendly packaging, charitable donations).

5. Federal Regulatory Agencies:

   • FDA (Food and Drug Administration): Ensures food, drugs, and cosmetics are safe and properly labeled.

   • CPSC (Consumer Product Safety Commission): Protects the public from unsafe products.

   • EPA (Environmental Protection Agency): Regulates environmental policies to reduce pollution and promote sustainability.

Unit 4 Promotion and Advertising Media

1. Role of Promotion in Marketing:

   • Promotion informs, persuades, and reminds consumers about products or services.

   • The main purpose of advertising is to build brand awareness, increase sales, and influence consumer behavior.

2. Major Promotional Activities & Benefits:

   • Advertising: Reaches a large audience, builds brand recognition.

   • Sales Promotion: Encourages immediate purchases with discounts or deals.

   • Public Relations (PR): Builds a positive public image through media coverage.

   • Personal Selling: Provides one-on-one interaction to address customer needs.

   • Direct Marketing: Targets specific audiences for personalized engagement.

3. Ethical Issues in Marketing:

   • False Advertising: Misleading claims about a product’s features.

   • Copyright Infringement: Using protected content without permission.

   • Age Group Discrimination: Unfairly targeting or excluding specific demographics.

4. Forms of Sales Promotion:

   • Sweepstakes & Contests: Encourage engagement with chances to win prizes.

   • Coupons: Offer discounts to encourage purchases.

   • Specialty Products: Free branded items (e.g., pens, mugs) to boost visibility.

5. Promotional Mix Elements:

   • Advertising: Paid media to promote products.

   • Publicity: Unpaid media exposure that shapes public perception.

   • Sales Promotion: Short-term incentives to boost sales.

   • Personal Selling: Direct interaction to persuade potential buyers.

7. Visual Merchandising, Displays & Trade Shows:

   • Visual Merchandising: Creating appealing in-store displays to attract customers.

   • Displays: Highlight key products to encourage impulse buying.

   • Trade Shows: Industry events where businesses showcase products to potential buyers and partners.

Unit 5 Marketing Information, Research, and Planning

1. Reasons for Conducting Market Research:

   • To understand customer needs and preferences.

   • To identify trends, market gaps, and competition.

   • To reduce risks by making informed business decisions.

   • To improve products, services, and marketing strategies.

2. Marketing Research Methods & Procedures:

   • Qualitative Research: Focuses on insights and opinions through interviews or focus groups.

   • Quantitative Research: Involves numerical data from surveys, polls, or sales reports.

   • Steps typically include defining the problem, collecting data, analyzing results, and applying findings.

3. Primary vs. Secondary Data:

   • Primary Data: First-hand data collected directly through methods like surveys, interviews, and focus groups.

   • Secondary Data: Existing data from sources like reports, articles, and government statistics.

4. Ways to Obtain Market Data:

   • Surveys: Gather opinions and preferences from a large audience.

   • Interviews: Provide detailed insights through one-on-one conversations.

   • Observations: Track consumer behavior in real-world settings.

5. Target Markets & Market Segmentation:

   • Target Market: A specific group of consumers a business aims to serve.

   • Market Segmentation: Divides the market into smaller groups based on:

     • Demographics: Age, gender, income, etc.

     • Psychographics: Interests, values, and lifestyles.

     • Geography: Location-based targeting.

6. Importance & Components of a Marketing Plan:

   • Why Important: Guides business strategies, aligns goals, and ensures efficient resource use.

   • Key Components:

     • Executive Summary: Overview of the plan.

     • Market Analysis: Research insights on competitors and trends.

     • Target Market Identification: Defining the ideal customer base.

     • Marketing Strategies: Details on pricing, promotion, and product placement.

     • Budget and Timeline: Outlines costs and deadlines.

8. Using Marketing Information in Business Decisions:

   • Helps businesses develop better products, identify sales opportunities, and tailor marketing strategies.

   • Ensures decisions are data-driven, improving success rates and customer satisfaction.

Unit 6 E-Commerce

1. Ways Technology (Including the Internet) Impacts Marketing:

   • Targeted Advertising: Businesses use data analytics and tracking tools to deliver personalized ads.

   • Social Media Marketing: Platforms like Instagram and TikTok allow direct engagement with consumers.

   • Automation Tools: Email campaigns, chatbots, and CRM systems improve customer communication.

2. Impact of the Internet on Marketing:

   • Expands global reach, allowing businesses to sell worldwide.

   • Enables 24/7 accessibility, giving consumers the ability to shop anytime.

   • Facilitates data collection, helping businesses better understand customer preferences.

3. Online Shopping Techniques for Sales & Purchasing:

   • Search Engine Optimization (SEO): Improves website visibility in search results.

   • Product Recommendations: Uses AI to suggest items based on browsing behavior.

   • Online Reviews & Ratings: Influence buyer decisions and build trust.

   • Live Chat Support: Provides instant customer assistance, improving conversion rates.

4. Role of E-Commerce in Marketing Goods & Services:

   • Reduces overhead costs compared to physical stores.

   • Allows for highly targeted marketing strategies.

   • Provides detailed data on customer behavior to improve marketing campaigns.

5. Considerations in Website Pricing:

   • Competitive Pricing: Ensuring prices align with market trends.

   • Dynamic Pricing: Adjusting prices based on demand, competition, or customer behavior.

   • Shipping Costs: Clear and competitive shipping options influence customer decisions.

   • Discount Strategies: Offering online-exclusive deals to encourage purchases.

1. Using a Website to Promote a Business or Product:

   • Homepage Design: An eye-catching and informative homepage grabs attention.

   • Content Marketing: Blogs, videos, and articles help engage visitors.

   • Email Sign-ups & Promotions: Encourage repeat visits and customer loyalty.

   • Customer Reviews & Testimonials: Showcase positive experiences to build trust.

Unit 7 Economics

1. Impact of Changing Economic Conditions on Marketing Strategies:

   • During economic growth, businesses may focus on premium products and aggressive advertising.

   • During recession, marketers may shift to discounts, budget-friendly options, and value-based messaging.

2. Concept of Competition & Its Effect on Marketing Decisions:

   • Direct Competition: Similar products competing for the same customers (e.g., Coke vs. Pepsi).

   • Indirect Competition: Different products that satisfy the same need (e.g., coffee vs. energy drinks).

   • Competition affects pricing, product features, promotional tactics, and customer service strategies.

3. Consumer vs. Capital Goods and Services:

   • Consumer Goods/Services: Products directly used by consumers (e.g., clothing, food, haircuts).

   • Capital Goods/Services: Products used to produce other goods (e.g., machinery, tools, business software).

4. Concept & Characteristics of Private/Free Enterprise:

   • In a private enterprise system:

     • Businesses operate with minimal government control.

     • Consumers have freedom of choice.

     • Competition encourages innovation and fair pricing.

5. Concept of Profit in Private Enterprise:

   • Profit is the financial gain after subtracting expenses from revenue.

   • Influenced by factors like:

     • Economic Factors: Market demand, inflation, etc.

     • Human Factors: Employee productivity, skills, and motivation.

     • Natural Factors: Weather, natural disasters, etc.

6. Concept of Economic Resources:

   • Land: Natural resources like minerals, forests, and water.

   • Labor: Workforce providing skills and services.

   • Capital: Equipment, tools, and technology used in production.

   • Entrepreneurship: Individuals who combine resources to create and manage businesses.

7. Principles of Supply & Demand:

   • Supply: The quantity of a product available for sale.

   • Demand: The desire and ability of consumers to buy a product.

   • Prices typically rise when demand exceeds supply and fall when supply exceeds demand.

8. Types of Economic Systems:

   • Capitalism: Private ownership with minimal government intervention.

   • Socialism: Greater government control with shared ownership of key industries.

   • Communism: Full government control over production and distribution.

9. Economic Indicators & Business Cycles:

   • GDP (Gross Domestic Product): Total value of goods/services produced in a country.

   • GNP (Gross National Product): Total value of goods/services produced by a country’s citizens.

   • CPI (Consumer Price Index): Measures changes in the prices of everyday consumer goods.

   • Business Cycles: Includes periods of expansion, peak, recession, and recovery.

10. Concepts of Scarcity & Elasticity of Demand:

    • Scarcity: Limited resources that require businesses to prioritize needs.

    • Elasticity of Demand: How demand changes in response to price changes:

      • Elastic Demand: Demand significantly changes with price fluctuations.

      • Inelastic Demand: Demand remains steady despite price changes.

11. Balance of Trade, Trade Barriers & Tariffs:

    • Balance of Trade: The difference between a country’s exports and imports.

    • Trade Barriers: Restrictions like quotas or bans that limit trade.

    • Tariffs: Taxes on imported goods designed to protect local industries.

12. Importance of Marketing in a Global Economy:

    • Helps businesses expand into international markets.

    • Increases product awareness and cultural adaptability.

    • Allows companies to target diverse customer needs across regions.

Unit 8 Selling and Merchandising

1. Purpose and Importance of Selling:

   • Purpose: Selling connects customer needs with the right products or services.

   • Importance: Drives revenue, builds customer relationships, and helps businesses meet goals.

2. Concepts & Techniques in Selling (Steps in the Selling Process):

   • Approach: Greet the customer and create a positive first impression.

   • Needs Analysis: Ask questions to understand the customer’s needs.

   • Product Presentation: Showcase features and benefits tailored to the customer.

   • Overcoming Objections: Address customer concerns confidently.

   • Closing the Sale: Finalize the purchase by confirming the customer’s decision.

   • Follow-Up: Ensure customer satisfaction and encourage repeat business.

3. Translating Product Knowledge into Customer Benefits:

   • Emphasize how product features improve the customer’s life.

     • Example: “This phone’s long battery life means you can go all day without charging.”

   • Use demonstrations, examples, or stories to connect product value to customer needs.

4. Factors Influencing Customer Buying Motives & Decisions:

   • Emotional Factors: Desires, status, or lifestyle goals.

   • Rational Factors: Price, quality, and product durability.

   • Social Influences: Trends, peer pressure, or family opinions.

5. Ethical Issues in Selling:

   • High-Pressure Sales: Aggressive tactics that push customers into unwanted purchases.

   • Misrepresenting Product Information: Providing false or misleading claims about a product’s features.

6. Role of Salespersons in Building Customer Relationships:

   • Active Listening: Understand customer needs and preferences.

   • Trust & Rapport: Build confidence through honesty and reliability.

   • Personalized Service: Follow up and recommend tailored solutions.

7. Completing the Sales Transaction:

   • Payment Methods: Accept cash, cards, or digital payments efficiently.

   • Counting Change: Accurately return change while confirming the amount.

   • Merchandise Handling: Properly fold, wrap, or bag items for presentation and protection.

   • Customer Courtesy: Thank customers warmly and invite them to return.

8. Handling Customer Inquiries, Complaints, or Difficult Situations:

   • Stay calm and empathetic.

   • Listen carefully, acknowledge concerns, and offer clear solutions.

   • Follow company guidelines for issue resolution.

9. Consumer Protection Agencies & Their Services:

   • FTC (Federal Trade Commission): Prevents deceptive business practices.

   • Better Business Bureau (BBB): Provides business ratings and dispute resolution.

   • Consumer Product Safety Commission (CPSC): Ensures product safety and recalls hazardous items.

10. Examples of Service Extensions:

    • Product Warranty: Ensures repairs or replacements for defective items.

    • Technical Support: Offers guidance for product setup or troubleshooting.

    • Service Contracts: Provides extended maintenance or protection plans.

Goodluck Future National Winner for FBLA Marketing (;