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35 Cards in this Set
- Front
- Back
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Why is it necessary to use different marketing methods for distributing goods and consumer goods? |
- It’s necessary because they are two different target markets and would be buying different types of goods and services. - For example industrial goods are products used in a business that either assist in the business or make other products, such as raw materials, or processed goods, rather than consumer goods are for personal use |
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Use an example to explain how a raw material is processed so that it becomes a finished good. |
- Raw material could be wood cut down by logging corporations - item is processed to alter the nature of the good - for example turning the wood into wood pulp - wood can be turned into a finished good by making the wood into paper. |
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What 3 steps should businesses follow when applying the marketing concept |
1. Identify opportunity in specific consumer or industrial market 2. Ensure that opportunity is not met in competitive market 3. Use marketing strategies to organize marketing plans + sell product/service successfully |
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Example where business should use advertising + promo techniques in dealing with consumer demand |
When supply is ⬆ + demand is ⬇ Ex, that way people can know of the product |
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Example where business should not use advertising + promo techniques. |
- when supply is ⬇ + demand is ⬆ - if nothing is available consumers will be mad that there were ads for something not available - Hospital does not need to use advertising as usually people go there when they need to. |
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How has competition in the marketplace changed the marketing philosophy of business from “whatever we make you’ll buy” to “whatever you want we’ll make” |
- The philosophy changed as people started comparing prices + quality to competing goods and demanded quality people stopped buying as much as people made. - So the philosophy had to change in order to meet the consumers demand. |
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Two methods that businesses have used in recent years to keep abreast of consumer demand |
K |
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What are the 4 ways that companies choose to organize their marketing divisions |
1. Regional org. 2. International org. 3. Brand management 4. Distributor management |
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What is region org. |
- City (South Oakville has a lake and Northern have highways), - region (Northern Ontario is more rural + less dense) - province, allows company to respond to regional differences, ex, in McDonalds for the provinces near the Atlantic ocean they had crab sold and in Western they had beef, Mc rib. |
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What is international org. |
- McDonald's, Gillette, etc - Marketing + distribution in foreign markets (SA, NA, Europe, etc) |
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What is brand management |
- Assigning major brands to a marketing manager (develops marketing plan for the brand) - ex, Proctor + Gamble (tide, pringles, crest) - Assign a brand manager for each one, different flavours of pringles |
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Distribution management |
- organizes marketing activities around ways product will be given to consumer - ex, soft drinks dividing into supermarket, vending machines, etc (these would all have different marketing plans |
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What is the function of marketing research |
- To take things like pricing, packaging, storage, etc. into consideration when developing products so they can meet consumer demand |
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What is the function of branding |
To communicate the value of the product/service to the consumer |
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Identify similarity between not for profit and nonprofit organizations |
They don’t seek profit as their primary motive |
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Difference |
- Not for profit raises funds for a specific goal for the community - charities + charitable organizations (canadian breast cancer foundation advances research, education, treatment, etc through donations + fundraisers, CIBC run for the cure), so these only exist until there is a cure. - Nonprofit take surplus funds and improve services offered to members (they do not distribute profits to members), so their purpose is to meet specific needs of members Ex, YMCA charge membership + they take this money to put back into service to make things better |
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What are the two types of markets |
Consumer + Competitive |
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Consumer market |
- Consumers who are or may become interested in a particular product/service + have money to buy it Ex, Alcan (tin foil) markets to high school students using info for them |
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What is target market |
- Marketing to a specific group they are trying to attract |
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What is aggregate market |
- Target market is everybody, need (food, toothpaste, etc) |
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Competitive market |
- Comprises all products/services that compete with 1 or another for consumer’s money within a specific category - Can be narrow (flavoured water), - very broad (Drinks) - unrelated (entertainment) |
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B2B |
- Business to Business (manufacturer to a distributor, company selling to schools) |
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B2C |
- Business to Consumer (Home Depot selling items to the customer) |
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Match ps to cs |
Product (research, development, branding, packaging of product) - Customer value Promotion (ads, publicity, promo) - Communication Pricing (choosing right price (supply + demand, competitive pricing)- Cost to customer Place (storage, inventory (track of product), channel selection (how you’ll do it, vending machine) - Convenience for buyer |
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what does a marketing strategy do |
Helps carry out devised plan or action in order to achieve a specific goal |
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What's a marketing plan |
- states market goals for business |
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What does a value equation do |
- Adds together all benefits of product + subtracts cost involved in obtaining product |
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Whats the push strategy |
- sells product to retailers, importers, or wholesalers + not to end consumers, manufacturer relies on retailer to sell it * If consumer sees it probability of buying Ex, red coca cola fridge in store |
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Whats the pull strategy |
- ⬆ consumer demand directly, rather than rely on retailers to sell product - ads get consumer to look for specific brand - expensive to do this method |
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Why would a marketer use push and pull strategy |
- In order to sell the product they want to use both so the consumer knows of the product |
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Why do people not want to shop online |
1. Might not get what they wanted 2. Don't want to deal with returning process |
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Difference of industrial and consumer good |
Industrial - Products used in businesses - car parts Consumer - Intended for personal use by public (retail sells it), clothing |
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How did marketing concept evolve |
- People realized that mass production wasn't working as people wanted choice and so businesses needed to work to the consumers needs |
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What is promotion used for |
- Making ads to grab the consumer's attention |
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Difference of marketing plan + strategy |
- Marketing plan is the goals and how they will reach it but strategy is carrying out the plan and reaching the goal, they are both needed as in order to reach the goal you need to know how you will do it |
