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Key Terms: What is Marketing?
1.1
Term
Text Definition
marketing
Planning, distributing, pricing, promoting and selling of goods and services
to satisfy needs and wants.
Consumer
market
Everyone who might buy a product
Raw materials
Unfinished goods, usually marketed to businesses that process them or use
them in manufacturing.
Processed
goods
Sold as finished goods or semi-finished goods.
Target market
Any group of consumers to whom marketers want to sell to
Who markets? 5
Manufacturers
Politicians
Service business
Non-profit
Individuals
Types of Products-2
Goods
Services
Types of Goods or services-2
Industrial
Consumer
Raw Materials are:
Unfinished goods, usually marketed to businesses that
process them or use them in manufacturing
Processed Goods are:
Sold as finished goods or semi-finished goods.
Finished Goods are:
Products that no longer require processing
The difference between industrial
and consumer goods and services:
Consumer goods are non-industrial products intended
for personal use by the public.
A target Market is:
Any group of consumers to whom marketers want to
sell to
1.2
3 major steps of the Marketing Concept:
o Identify an opportunity in a specific consumer or industrial market.
o Ensure the opportunity has not been met
o Use marketing to sell it
The importance of marketing activities changes with supply and demand. When the demand
is greater then the supply of goods, excessive marketing is redundant because the product
sells itself.
When there is more supply than demand, marketing becomes a major factor in success.
The industrial revolution (mass production)changed the balance of supply and demand
because before mass production, demand was usually greater than supply!!!
The internet has connected buyers and sellers globally.
1.3
Regional
organization
Definition: can be within a city, province or area
Example & Website:
Crest, Colgate in Quebec
International
organization
Definition: sets up marketing and distribution centers in foreign
markets.
Example & Website: golf retailers, Nike
Brand management
Definition: assigns their specific brands to different managers to be
treated separately-most popular
Example & Website: Proctor & Gamble
Distribution
management
Definition: organizes marketing around the way product or service is
delivered.
Example & Website: Coke & Pepsi-Stores, schools, vending machines
Marketing divisions can be organized by:
region
country
brand
distribution
Combination
Research
Conducting surveys gathers:
Preferences
habits
lifestyle
competition
Product Development
3 concerns of the product and development team:
Make a product that meets needs
Can be delivered effectively
Competitively priced
Packaging
Pricing
Branding
Includes a products:
name
logo
slogan
Package design
Trademark
Sale
Physical distribution
Inventory management A company tries to have:
Enough to satisfy demand
Not more than they can sell
advertising
publicity
Storage
Promotion
1.5 Consumer and Competitive Markets
Complete as you read 19-20
A consumer market All of those consumers who are or may become interested in a product
is
or service and who have the means of buying it
A competitive
market is
All of the products or services that compete for customers within a
specific category
An aggregate
market is
A market that includes everybody
A differentiated
market is
One which targets consumers by some type of demographic profile
Provide a specific example of the organization on the left and their target market
Org.
Example
Target
Clothing
Le Chateau
Young, fashion conscious, aged 14-25. Early adopters,
leading edge image
Shoe retailer
Payless
Any gender or age looking for footwear
Fast food
Arbys
Appeals to any age, anyone who enjoys good beef
Recording artist
Luke Bryan
Appeals to ages 10-25 of any gender, country music enthusiast
Non-profit
organization
United Way
Any gender or age look for financial aid
Industry of your
choice 1
Auto manufacturers Companies looking for cars to sell on their car lot
Industry of your
choice 2
Paper Mills
1.6 Marketing Mix
Appeals to companies that need paper products to produce their
product
4 Elements of the Marketing Mix
1. Product
1. develop
2. package
3. Brand
2.Promotion
1. advertise
2. Sales promotion
3. publicity
3.Price
4.Place
1. distribution
2. storage
3. channel
Use the following table to compare the marketing mix of the following companies. Explain your
answer in as much detail as possible. Use a Google search if possible to obtain more information.
Product
Quality
Place or places
Location
Price
(higher/lower)
Higher
Promotion
What kind?
Pizza Pizza
vs.
Satisfactory
Many locations in a
region.
Local pizza
place
Good/Excellent
Usually only one location Low to medium
because it isnt a chain
restaurant.
Menu sent out in the
paper or sponsorships on
house league sports
McCains
Frozen
Pizza
Poor
Can find at most grocery
stores
Ads on T.V
(commercials)
YMCA vs.
Good
Many locations, most
Medium-High
cities have one, some have
multiples depending on
size of city
Ads in the newspaper or
on local T.V/Radio
local gym
Good
Usually only one location Low-Medium
No ads
Local
Sports
store vs.
Good
Usually only one store
Low
Medium
Ads on T.V/Radio
Little-to-no ads
Sportchek
Excellent
2-3 stores in a region
High
Commercially advertised
(radio, newspaper, T.V)
Used car lot
vs.
Satisfactory
Usually one or two
locations
Low to Medium
Advertised in flyers
Excellent
1-2 locations per region
High
Social media, commercial
ads
Magic Cuts
vs
Medium
One in each city
Medium-High
Commercials on T.V
Local
Hairstylist
Excellent
One in a city
Medium-High
Advertise in local
newspaper
GNC vs.
Excellent
One-two in a region
High
Radio or Social media
Local
health store
Good to Excellent One in a city/town
Medium-High
Local newspaper
Best Buy
vs.
Excellent
One-two in major city
Medium-High
Flyers, Commercials on
the radio and T.V
Future
Shop vs.
Excellent
One-two in major city
Medium-High
Flyers, Commercials on
the radio and T.V
The Source
Good to excellent In the local mall, one for
city
Medium
Flyers
7 UP vs.
Excellent
Found at most stores with Medium
beverages on display
Commercials, flyers
Mountain
Dew
Excellent
Found at most stores with Medium
beverages on display
Commercials, flyers
Coke vs.
Excellent
Found at most stores with Medium
beverages on display
Commercials, flyers
Chevrolet
dealership
Red Bull vs.
Gatorade
Excellent
Found at select stores
High
Social media, sporting
events
Excellent
Found at select stores
Medium
Social media, sporting
events
Marketing Plan=Goals+target market+4ps
Brand Strategy To communicate the value of a product or service to the consumer
Value
Difference between perceived cost and perceived satisfaction
Value Equation Total Benefits Total costs
A rule of
marketing
In your words, explain what Perception is reality means. (Not in Book)
Once a person believes something to be true it is very difficult to change
their minds, regardless of the facts or truth.
Distribution
Strategies
1. Push
2. Pull
3. Combo
Push Strategy
Products purchased as bargain, gift or impulse. Sell, market to retailers,
importers or wholesalers, not to end user. If they see it, theyll buy it. In
your face!
Pull Strategy
Attempts to increase consumer demand directly rather than rely on
retailers. Requires major advertising and promotion. Create need or want
by talking about benefits. Softer approach.
Combination
Pull strategy needs to combine with push, but push does not need pull!
1. Classify the following marketing as being a push, pull or combination strategy.
2. Explain your answer.
Activity
Push, Pull, Explain
Combo
New packaging
Pull
New packaging is appealing to the consumers, so its more likely theyll buy
the product on instinct. The new packaging will cause consumers to talk about
it, so word of the product will get around. The advertising is not very in your
face. New packaging could include new information on benefits of the
product as well.
Point of purchase Combo
materials
It is a strong approach towards buyers; however they give you information on
the product and how it can benefit you. Major advertising is used.
Billboard
Advertising
Push
Billboard advertising is there for all consumers to see. They often have a
stronger approach on selling to consumers.
Taking a client
golfing
Push
Taking a client golfing is altering how the client is making decisions because
of flattery. It is a very in your face marketing strategy.
Coupons
Pull
Coupons promote the product by presenting deals and benefits on the product
itself to make consumers want to buy that product even more. It isnt an in
your face strategy.
In StoreDiscounts
Pull
Softer approach to marketing; a discount can be promoted but it isnt a bold
advertisement. Discounts make the consumer want to spend money on that
product because its cheaper, not because the product is advertised boldly.
Moving the
product closer to
the cash register
Push
This is a stronger approach to marketing because it is almost guaranteed that
the customer at the store will look in that area since the cash register is where
everyone goes to buy their products. Its more likely for that product to bought
since its right where its in the most plain view.
