Marketing Part 1 and 2

Question 1

What is Marketing?

Answer 1

Process of creating or directing an organization to be successful in selling a product or service that people not only desire, but are willing to buy. This includes the planning and executing of the product, price, place and promotions* to create exchange between individuals and organizations

Question 2

What are examples of promotions?

Answer 2

Promotions include advertising, distribution and selling

Question 3

What does marketing do?

Answer 3

Anticipates customers’ future needs and wants, which are often discovered through market research

Question 4

What is the market strategy process?

Answer 4

Consumer analysis
Market analysis
Review of competition
Distribution channel analysis
Marketing mix
Economics of plan
Revision

Question 5

what is consumer analysis?

Answer 5

Examines buyer needs
Identifies groups (segments) of population with similar needs to be targeted

Question 6

What questions are asked in consumer analysis?

Answer 6

• What is need?
  
  • Who is buying; who is using?
  • How is purchase made?
  • High or low involvement?
  • How can market be segmented?

Question 7

What is need?

Answer 7

Examines (potential) product and determines why people would buy it?
Understanding of need helps figure out everything else

Question 8

Who is buying; who is using?

Answer 8

Determines who buys product AND who uses product

Question 9

How is purchase made?

Answer 9

Market Research
Observation
Intuition
Determine best routes to buyer:
	-  Stores
	-  Internet
	-  Catalogue

Question 10

What are the steps to making a purchase?

Answer 10

Awareness 
Information Sources
Evaluate 
Purchase 
Post-Purchase Assessment

Question 11

Awareness

Answer 11

Desired response is i need that

provoked through advertisement

Question 12

Information Sources

Answer 12

Desired response is how can i learn about this

provoked through articles, displays, and demonstrations

Question 13

Evaluate

Answer 13

Desired response which is best for me

provoked through sales person/ experts

Question 14

Purchase

Answer 14

desired response is i want that one

provoked through availability, trial and warranty

Question 15

Post purchase assessment

Answer 15

Consumer reaction to avoid did i make a mistake

positive reinforcement though advertisement

Question 16

Risk Vs. Ease of involvement

Answer 16

is it low or high involvement

Question 17

high involvement product

Answer 17

Higher risk
Higher price
Higher psychological reward (status, love)
Difficult to compare
Reliability
Planned purchase

Question 18

Examples of a high involvement product

Answer 18

Automobile

- New technology equipment
- Professional services (attorney)
- Fine jewelry

Question 19

Low involvement product

Answer 19

Lower/no risk
Lower price
Little/no need for comparison
No psychological component
Minimum level of performance required
Impulsive purchase

Question 20

What to high involvement products require?

Answer 20

Consumer information
Guarantees, rebates, warranties
Experts, demos, hand-holding
Dedicated, trained salespeople

Question 21

Who is your customer?

Answer 21

Everyone? (mass market)
Vs.
Specific segment:
homogeneous groups of similar consumers with similar needs

Marketing varies based on segment

Question 22

Why segment market?

Answer 22

Identifies specific groups to serve profitably
Efficiently reach buyers
Develop targeted marketing programs

To yield the most sales and profit

Question 23

What are some types of Segmentation?

Answer 23

Geographic
Demographic (age, gender, income, education, occupation, family status, etc.)
Psychographic (lifestyle, personality)
Behavioral (amount of use, brand loyalty, purchase use, etc.)

Question 24

What is the difference between market analysis and consumer analysis?

Answer 24

Consumer analysis focuses on consumers as individuals

Market analysis focuses on markets and trends, competition and regulatory environment.

Question 25

What questions are asked for market analysis?

Answer 25

What is the relevant market? Where is the product in its life cycle? What are the key competitive factors?

Question 26

Relevant market

Answer 26

Determines if identified market segment is: - large enough - accessible enough Done through research or test markets

Question 27

What are the stages of the Product Life cycle ?

Answer 27

Stage 1 – introduction Stage 2 – Growth Stage 3 – Maturity Stage 4 - Decline

Question 28

Stage 1 - Introduction

Answer 28

Product awareness and education Trials, samples are important High advertising costs “Innovators,” “Early Adopters,” risk-takers tend to buy Pricing decisions are difficult Exclusive distributors are sometimes a strategy

Question 29

Stage 2 - Growth

Answer 29

``` Education still important Competition intensifies “Early majority” become buyers Copy cat products introduced Selective distribution becomes a strategy Reduce costs to boost market share ```

Question 30

Stage 3 - Maturity

Answer 30

People become accustomed to the product “Late majority” of the mass market buys Differences are fewer - standardized “Brand loyalty” becomes a marketing technique Price competition becomes very intensified Broader advertising Product variations introduced to capture market segments

Question 31

Stage 4 - Decline

Answer 31

``` “Laggards” become buyers Considered “safe to buy” Consumers view all products the same Price reduction, sales are marketing strategies Decline is not end of product ```

Question 32

What are competitive factors when analyzing the competition?

Answer 32

``` Quality Price Advertising Research and Development Service ```

Question 33

What is marketing mix?

Answer 33

Action plan to sell product focusing on 4 elements to create a workable plan

Question 34

What are the 4 P's of marketing?

Answer 34

Product Place Promotion Price

Question 35

what is Product in marketing mix?

Answer 35

- Does the product blend with our other products (synergy) and image of our products? - How can we distinguish our product from others – through new features, style, reliability, package design, size variety, level of service, labeling (brand naming)? - How does the product life cycle (PLC) affect marketing the product?

Question 36

What is Place in marketing mix?

Answer 36

- Choice of where to sell the product (distribution channel - Is it Selective, exclusive or mass market - Choice of place affects perception/image of product

Question 37

What are the factors impacting place of market?

Answer 37

level of attention need for control profit margins

Question 38

What is promotion in marketing mix?

Answer 38

Promotion = Choice of advertising and sales efforts | pull and push strategies

Question 39

What is a pull strategy?

Answer 39

gets people to place of sale

Question 40

What is a push strategy?

Answer 40

convince place of sale to stock product

Question 41

What are types of promotion?

Answer 41

Advertising – television, radio, print media, billboards, internet, keyword pop-ups, direct mail Personal selling - dedicated sales force, telemarketing (declining), retail sales force Sales promotion to complement advertising – coupons, discounts sales (10% off), rebates, tie-ins, point-of-purchase displays, in-store demos Publicity (Tiger Woods wearing Nike logo), products in movies/TV Public relations – press releases

Question 42

What is Price in the marketing mix?

Answer 42

Helps differentiate products from competitors and influences profit margins.

Question 43

What are strategies to determine price?

Answer 43

skimming Penetration price/quality relationship meet competition's price

Question 44

What is price skimming?

Answer 44

taking low profit to reduce cost of promotion (Introduction

Question 45

What is price penetration?

Answer 45

– low price to gain more customers (Introduction and Growth)

Question 46

What is price/quality relationship?

Answer 46

pricing based on perceived value

Question 47

What is Break even?

Answer 47

point at which fixed costs and advertising/promotion are recovered without profit

Question 48

What is the difference between variable cost and fixed costs?

Answer 48

Variable costs – change with volume of sales - - Labor - materials Fixed costs – generally remain the same regardless of sales volume - Rent - Management costs - Advertising/promotion (sunk costs, not retrievable)