Marketing Exam goodness gracious Flashcards
What is Marketing?
activities companies do to promote the buying or selling of a product or service
Involves all the actions a company undertakes to draw in customers and maintain relationships with them
Seeks to match a company’s products and services to customers who want access to those products → ultimately ensures profitability
Relationships in Marketing
Marketing is based on the relationship between the buyer and the seller
Research shows that it is less costly to keep an existing customers than to get a new one
Successful marketing involves:
“Putting the right product in the right place, at the right price, at the right time.”
If you are able to do this, you should have a winning marketing strategy
Competitive Market
All the sellers of a specific product
Market Share
% of the market that a company or a brand has
Target Market
The specific group of customers whose needs and wants you will try to meet with a specific strategy
Market Segmentation
Dividing a broad consumer or market group, into sub-groups of consumer based on shared characteristics
Skills of a Good Marketer
Creativity
Communicator
Analytical/Critical Thinker
Technological Proficiency
Economic Systems
The way government and business work together to provide goods and services to the country’s people
Centrally Planned Economy
The government controls all elements of the economy including prices, wages, and production
The government decides what products are needed, how goods and services will be produced, and who receives the products that are produced
Examples: North Korea, Cuba
Market Economy
Businesses, consumers, and government act independently of one another
The government has little to no direct involvement in business
The consumers decide what should be produced, how it is produced, and who buys
Mixed Economy
Combining government intervention and private enterprise
Part of the entire economy is being controlled and run by a certain country’s government while the other half is left to the free market
Examples: Canada, France, Sweden
Supply and Demand
Supply = amount of a specific good or service that’s available in the market
Demand = amount of the good or service that customers want to buy
Supply and demand are both influenced by the price of goods and services
Price Level Effect on Supply Effect on Demand
High Falls Rises
Low Rises Falls
Marketing Strategy
Marketing Strategy
Once you find an opportunity, you must develop a marketing strategy
Consists of: A business plan and a marketing plan
Marketing Strategy = Target Market + Marketing Mix
Mass Marketing - the development of only one marketing mix (4 P’s) for a product
Assumed everyone has the same wants and needs of the product
Market Segmentation
Each market segment is made of customers with similar wants and needs for a specific product
A customer characteristic that is used to segment the market is called a: segmentation variable
Geographics
Segmenting a market based on where customers live
Location, community size
Psychographics
= Breaks down your customer groups into segments that influence buying behaviours
Beliefs, values, interests
Demographics
= The statistical characteristics of human populations used especially to identify markets
Age, income, gender
Consumer Influences
The three categories of influences on consumers:
Psychological
Social
Situational
Psychological Needs
Psychological influences are the influences that come from within a person
Psychologists say a “need: is a lack within a person that must be fulfilled
Marketing is about satisfying needs
Social Needs
Social influences are the influences that come from the society in which you live
Three categories of social influences:
Culture
Family
Friends and Co-workers
Situational Needs
Situational influences are influences that come from the environment
Including: the weather, the physical location of the store, the time of day, the visibility of the advertising, other promotions
Price Competition
Competing on the basis of price
Focus is on making the most profit by offering the lowest prices enabling more sales
Example: Walmart and No Frills
Non-Price Competition
Competition that is based on something other than price
The focus will be on the other 3 P’s in the Marketing Mix
Examples:
Product: Quality, features, benefits, colour, etc
Place: Location, hours of operation, online presence
Promotion
Four Levels of Purchasing Decisions
Impulse = Purchase made with no planning or research
Routine = Made quickly and without much thought
Limited = Made with some research and planning
Extensive = Involves a great deal of research and planning
Non Profit vs For Profit Marketing
For profit - tangible, for consumer sue, emotions
Non profit - intangible, for a cause, materialism
Characteristics of a Non-Profit Organisation
- Have a Mission =Describes what the organisation will do to improve quality of life
- Raise Funds=Collecting money in order to achieve their mission
3.Governed by their members
Four P’s for NPO’s
Product
Usually an intangible item
For a cause
Price
Should be low enough for people to feel like they can donate
Place
Make it easy to donate
Make it highly visible
Promotion
Display the image you want
Create emotions
Difference Between Corporate and NPO Marketing
Tangible vs. Intangible
“For consumer use” vs. “for a cause”
Image: emotions vs. materialism
Market Research
The gathering of information to make
Purpose of marketing research = to learn as much as you can about your:
Customers
Competition
Opportunities
You will then have the information you need to develop your:
Marketing plans
Marketing decisions
Primary Research
Collected first hand by a researcher for a specific purpose
Pros: Targeted, specific, designed by you
Cons: Time consuming, hard to find willing participants
Ways to collect: observations, interviews, survey, experiments, secret shoppers, questionnaires
Secondary Research
Research that has been collected and published by others
Pros: Quicker to conduct, easier to access
Cons: Not confidential, less targeted, lack of relevance
Ways to collect: Internet, libraries, databases, rewards
