FINAL-marketing

Goods and Services
Goods- tangible items that have monetary value and satisfy your needs and wants such as cars, toys, furniture, TV, clothing, and candy.
SERVICES- intangible items (cannot physically touch) that have monetary value and satisfy your needs and wants such as banks cooking a hamburger, dry cleaners or movie theaters.
Functions
DISTRIBUTION- how to get goods to customers.
FINANCING- how to get $ to keep company set up.
MARKETING INFORMATION MANAGEMENT- gathering info about other products and analyzing it.
PRICING- how much 4 to charge for goods/services in order to make a profit.
PRODUCTS/SERVICES MANAGEMENT- obtaining, developing, improving a product.
PROMOTION- how to inform or persuade or remind customers about a good/service.
SELLING- providing customers w/ goods/services.
Utilities
UTILITIES- the attributes of a product or service that make it capable of satisfying consumers’ wants and needs.
FORM- what is made out of.
PLACE- where to sell the product.
TIME- having a product available during a certain time, year or day.
POSSESSION- The exchange of a product for money i.e. credit cards, cash, checks.
INFORMATION- communicating with the consumer
Consumer v. Customer
Marketing Segmentation
MARKETING SEGMENTATION- the process of classifying people who form a given market into even smaller groups.
DEMOGRAPHICS- refer to statistics that describe a population in terms of personal characteristics such as age, gender, income, marital status, ethnic background, education, and occupation
GEOGRAPHICS- refers to segmentation of the market based on where people live. Local, regional, or global markets.
PSYCHOGRAPHICS- involves grouping people with similar lifestyles, as well as shared attitudes, values, and opinions.
Market-Oriented
Target Market
the group that is identified for a specific marketing program.
Marketing Mix
PRODUCT- choose what products to make and sell, product design, features.
PLACE- getting the product into the consumer’s hands, where to sell product to save $.
PRICE- what is exchanged for the product, how much product will cost, make profit.
PROMOTION- refers to decisions about advertising, personal selling, sales promotion, and publicity.
Positioning
Primary vs. Secondary
PRIMARY DATA- data obtained for the first time and used specifically for the particular problem or issue under study.
SECONDARY DATA-have already been collected for some purpose other than the current study.
Research process
1. DEFINING THE PROBLEM- the problem or research issue is identified and goals are set to solve the problem.
2. OBTAINING DATA- researchers obtain data from primary and secondary sources.
3. ANALYZING DATA- researchers compile, analyze and interpret the data.
4. RECOMMENDING SOLUTIONS- researchers come up with potential solutions to the problem and present them in a report.
5. APPLYING THE RESULTS- the research results are put into action.
How to obtain primary data
SURVEY METHOD- a research technique in which information is gathered from people through the use of surveys or questionnaires.
use a… SAMPLE- part of the target (market) population that represents it accurately. … while conducting a survey.
INTERVIEWS- face-to-face questioning to obtain data.
FOCUS GROUP- 8-12 people who are brought together evaluate advertising, a particular product, package design, or a specific marketing strategy.
OBSERVATION- research technique in which the actions of people are watched and recorded either by cameras or by observers.
POINT-OF-SALER RESEARCH- a powerful form of research that combines natural observation with personal interviews to get people to explain buying behavior.
EXPERIMENTAL METHOD- a research technique in which a researcher observes the results of changing one or more marketing variables while keeping other variables constant under controlled conditions.
Questionnaire/Survey creating
OPEN-ENDED QUESTIONS- ask respondents to construct their own response to a question.
FORCED-CHOICE QUESTIONS- ask respondents to choose answers from possibilities given on a questionnaire.
YES/NO QUESTIONS- two choice questions give the respondent a yes or no choice.
MULTIPLE CHOICE QUESTIONS- give the respondent several choices (make answers exclusive and comprehensive.)
RATING SCALE QUESTIONS- type of forced-choice question rated on a scale
LEVEL OF AGREEMENT QUESTIONS- when assessing attitudes or opinions, ask respondents their level of opinion.
Product mix
it includes all different products that a company makes or sells.
STEPS FOR PRODUCT DEVELOPMENT:
1. generating ideas
2. screening ideas
3. developing a business proposal
4. developing the product
5. testing product w/ consumers
6. introducing the product (commercialization)
7. evaluating customer acceptance
Product Line
A group of closely related products manufactured or sold by a business
Product Width
A number of different product lines a business manufactures or sells.
Product Depth
number of items offered within each product line.
Product LIfe Cycle
represents the stages that a product goes through during its life. Marketers must adjust their product mix and their marketing strategies to ensure continued sales.
STEPS:
1. Intro – production & promotion (least profitable)
2. Growth – success product (increased sales & profits, advertising focuses on customer satisfaction)
3. Maturity – sales slow down & level-off ($ spent on fighting competition)
4. Managing During Decline – sales/profits fall.
– (a) sale or license product;
– (b) recommit to product line;
– (c) discount product;
– (d) regionalize product where there is strong customer loyalty
– (e) modernize or alter product
Product Positioning
the image a product projects setting it apart from the competition.
PRICE & QUALITY – stresses high price as a symbol of quality OR lower price as indication of value
FEATURES & BENEFITS – products associated with a feature, attribute or customer benefit
RELATION TO COMPETITION – competes directly with products of other companies
RELATION TO OTHER PRODUCTS IN A LINE
Brand Name
is a word(s), letters or #s that represent a product or service. E.g., General Mills, Coca-Cola
Brand Mark
a unique symbol, coloring, letter or other design element. E.g., Nike Swoosh, the “G” in General Mills
Tradename
Corporate brand identifies and promotes a company or a division of a particular corporation, e.g., iPad. E.g., Cinnamon Toast Crunch
Trade character
a specific type of brand mark. one with human form or characteristics. E.g., Trix Bunny, Michelon Marshallow Man, Hey Kool-Aid guy
Slogan
a catchy phrase or words that identify a product or company
Trademark
word, name, symbol, device or a combination of these elements that is given protection under Federal Law. E.g., Arches at McD’s
Brands
NATIONAL BRANDS – owned and initiated by national manufacturers or by companies that provide services, e.g., Hershey Foods, Hilton Hotels.
PRIVATE DISTRIBUTOR BRANDS – developed and owned by wholesalers and retailers, e.g., RadioShack, T.J. Max.
GENERIC BRAND – products that do not carry a company identity, e.g, pancake mix at Jewel.
Strategies
PRICE LINING = sets a limited # prices for specific groups or lines of merchandise.
OPTIONAL PRODUCT = setting prices for accessories or options sold with the main product, e.g., apps for iPad.
CAPTIVE PRODUCT = sets the price for one product low, but compensates for the low product by pricing the necessary supplies high, e.g., a printer are low in price, but ink cartridges are high in price.
BY-PRODUCT = helps businesses get ride of excess materials in use in making a product by using low prices.
BUNDLE PRICING = a company offers several complementary products in a package that is sold at a single price.
GEOGRAPHICAL PRICING = refers to price adjustments required b/c of the location of the customer for delivery of products.
INTERNATIONAL PRICING = marketers need to set prices that take into consideration costs, consumers, economic conditions, and the monetary exchange rate.
Supply and Demand
DEMAND ELASTICITY- the degree to which demand for a product is affected by its price.
ELASTIC DEMAND- refers to situations in which a change in price creates a change in demand.
INELASTIC DEMAND- refers to situations, in which a change in price has very little effect on demand for a product.
LAW OF DIMINISHING MARGINAL UTILITY- consumers will only buy so much of a product
Marketing Factors Affecting Price
COST AND EXPENSES
SUPPLY AND DEMAND
CONSUMER PERCEPTIONS
COMPETITION
Price Fixing
competitors agree on certain price rages for their product, this illegal b/c it eliminates competition- monopolizes market
Loss-Leader Pricing
an item priced at or below cost to draw customers into a store.
Psychological Discount Pricing
Labeling Laws
THE FAIR PACKAGING AND LABELING ACT OF 1966- established mandator labeling requirements and authorized the U.S. FDA and FTC to establish packaging regulations.
THE NUTRITION LABELING AND EDUCATION 1990- protects consumers from deceptive labeling, labels give nutritional info of product and warning labels.
THE CARE LABELING RULE 1972- requires that care labels be placed in textile clothing. Ensure that specific info about the care of garments.
ENVIRONMENTAL GUIDELINES 1992- when using environmental there must be support for the use of those terms.
THE COUNTRY OF ORIGIN LABELING (COOL) ACT- required country of origin label be placed on everything.
Channels of Distribution
CHANNEL A- manufacturer/producer directly to consumer.
CHANNEL B- manufacturer/producer to retailer to consumer.
CHANNEL C- manufacturer/producer to wholesaler to retailer to consumer.
CHANNEL D- manufacturer/producer to agents to wholesaler to retailer to consumer.
CHANNEL E- manufacturer/producer to agents to retailer to consumer
agents
act as intermediaries by bringing buyers and sellers together.
two different types: BROKER AND MANUFACTURERS’ REPRESENTATIVES.
direct sales
when producer sells goods or services directly to the customer with no intermediaries.
indirect sales
involves one or more intermediaries.
brick-and-mortar retailers
sell goods to the customer from their own physical stores. Retail stores buy their products from manufacturers or wholesalers.
wholesalers v. retailers
WHOLESALERS- Businesses that buy large quantities of goods from manufactures, store the goods, and then resell them to other businesses.
RETAILERS- sell goods to the final consumer for personal use.
Specialized wholesalers
RACK JOBBERS- are wholesalers that manage inventory and merchandising for retailers by counting stock, filling it in when needed, and maintaining store displays.
DROP SHIPPERS- own the goods they sell but do not physically handle the actual products. Sell the goods to other businesses and have the producer ship the merchandise directly to the buyers.
advertising
a form of non-personal promotion. companies pay to promote ideas, goods, or services in a variety of media outlets.
PRO: serves many, low cost PER customer, select appropriate media, control content, pre-sell product
CON: not focused on individuals, pricey, sometimes wasteful.
EXAMPLE: print, radio, TV, internet
Publicity
involves bringing news or newsworthy information about an organization to the public’s attention.
PRO: free, placed by company as news
CON: lose control of content, not guaranteed
EXAMPLE:
sales promotion
represents all marketing activities-other than promotion- that are used to stimulate purchasing and sales
PRO: increase sales, inform customers, create positive image.
CON:
EXAMPLE: coupons
personal selling
requires that a company employ sales representatives who generate and maintain direct contact with prospects and customers.
PRO: direct contact = 🙂
CON: costly
EXAMPLE:
Print ad
HEADLINES: attract readers, arouse interest, and get them to read the copy.
COPY: represents the selling message in the ad.
ILLUSTRATIONS: help expand on the copy by showing how the product works or how it is used.
SIGNATURE: or logo, the identification symbol for a business.
SLOGAN: a catch phrase or small group of words that are combined in a special way to identify a product or company.
Press release
an announcement that is sent to the appropriate media outlets. announces newsworthy developments about the company.
1. first paragraph- answer the who, what, when, where, why questions
2. paragraphs 2&3- important facts.
3. News release should be 1-2 pages long.
4. news release should include name, address, phone # of person sending out the release, all pages should be numbered except the first.
Public relations
activities enable an organization to influence a target audience. create favorable image for company/product.
Endorsers