Marketing 1 Flashcards
(42 cards)
What are the three elements of marketing strategy?
- Target market
- 4 P’s (price, place, product, promotion)
- Competitive advantage
The scope of marketing
It’s everywhere
> people marketing, place marketing, event marketing, idea marketing
Marketing and the 4 Ps: more than advertising
Product > creating value > place > communicating value > promotion > delivering value price
Marketing a business is about how …
+ the objective
How you position it to satisfy your market’s needs
The objective is to provide the right product to satisfy the needs of your target customer at the right price available in the right place to be bought by customers and to then promote this by informing potential customers of the availability of the product, its price and its place.
Consumer markets vs. business markets
How will the buyer use the product
Consumer markets: products for personal consumption (B2C = business to customer)
> standard
Business markets: products used directly or indirectly to produce other products (B2B = business to business)
> more specialized
Market segmentation
Selecting a target market begins with dividing your market into segments.
Marketers may select multiple segments to target
- demographic
- geographic
- psychographic/behavioral
Consumer market segmentation: demographic
Demographic – gender, ethnicity, age, family life cycle, religion, occupation, average income, etc.
Consumer market segmentation: geographic
Geographic – city, province, country, climate (snowfall, temperature, rain, etc.)
Consumer market segmentation: psychographic/behavioral
Psychographic/Behavioral – lifestyle, attitudes, values
Consumer buying process
- Problem recognition: I realize I have a problem to resolve
- Information search: I’ve got to find a solution to my problem
- Evaluation alternatives: I’ll with the pros and cons of the products available
- Purchase decision: I’ll choose this one or not choose at all
- Post purchase evaluation: I’m happy/unhappy with my purchase, and will/will not buy a similar one in the future
Factors influencing buying behaviour
- Culture and subculture: nationality, gender, religion, etc
- Social class: income, profession, political status, etc
- Reference groups: family, friends, fellow students, etc
- Personal image: physical look, profession, etc
- Situational matters: timing, coincidence, mood, etc
Developing a marketing strategy
a plan for
1. identifying the target market among market segments
2. creating the right marketing mix to reach that target market
3. dealing with important forces in the external marketing environment.
Value definition
Value is defined as a customer’s perception that a certain product offers a better relationship between costs and benefits than competitors’ products do
Product
A Good or Service That Can Satisfy Buyers’ Needs
Product line
A Group of Products Designed for a Similar Market
(PepsiCo, Apple)
Product mix
The Combination of All Product Lines
The total value offer and its three layers
The total product offer, also known as the value package, is all the factors that potential buyers evaluate in a product when considering whether to buy it.
• There are three layers:
1. Actual product or service (product characteristics & features)
2. Core benefit (image, what it accomplishes)
3. Augmented product (warranties, manual, after sales service)
Product features vs benefits
Features: specific characteristics of a product
Benefits: the advantages that a customers gains from a specific feature (more effective)
Ex:
Height definition TV
- feature: 46 in screen
- benefit : the party at your house
Subway sandwiches
- features: lower fat
- benefits: looser pants
Products can be goods or services or a combination
Pure goods (bottle of shampoo)
Pure services (math tutoring)
Combinaison (restaurant)
Product life cycle (4 stages)
Stage 1: introduction > electric cars
Stage 2: growth > hybrid cars
Stage 3: maturity > PCs
Stage 4: decline > cigarettes
Peak of profits on sales
Profits on sales: usually peak in growth stage, as prices are lowered to appeal to more buyers
Peak of sales of product
Sales of product: usually peak in maturity stage, under pressure from competition
Developing a new product
+ its 6 stages
- Product differentiation is designing a product different enough from competitors to attract consumers.
- An important part of it is establishing a brand, whether brand name, brand mark, or trademark.
- Packaging also is important for protecting and promoting a product
Stages:
1. Idea generation
2. Product screening
3. Product analysis
4. Product development
5. Test Marketing
6. Commercialisation
Branding
- Brand names, brand marks and trademarks
A brand is a unique name, symbol, or design that identifies an organization and its product or service. Brands fall into three general classes:
1. Brand names are those parts of a brand that can be expressed verbally, such as by words, letters, or numbers.
2. Brand marks are those parts of a brand that cannot be expressed verbally, such as graphics and symbols.
3. Trademarks are brand names and brand marks, and even slogans, which have been given exclusive legal protection.
