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2.
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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:

Identify an opportunity in a specific consumer or industrial market.
Ensure the opportunity has not been met
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 separatelymost 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

3 concerns of the product and development

team:
Make a product that meets needs
Can be delivered effectively
Competitively priced

Includes a products:
name
logo
slogan
Package design
Trademark

A company tries to have:

Enough to satisfy demand
Not more than they can sell

advertising
publicity

Product Development

Packaging
Pricing
Branding

Sale
Physical distribution
Inventory management

Storage
Promotion

1.5 Consumer and Competitive Markets

Complete as you read 19-20
A consumer market is

All of those consumers who are or may become interested

in a product 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

All ages, affordable, wide

variety

Fast food

McDonalds

All ages, people who are

looking for a quick meal

Recording artist

Jay-Z

Teenagers, young adults (1725)

Non-profit organization

Sally Ann

Helping people who cannot

afford much clothes

Industry of your choice 1

Under armor

Young, athletic people

Industry of your choice 2

Apple

Teenagers and young adults

(14+)

1.6 Marketing Mix

4 Elements of the Marketing Mix

1.
1.
2.
3.

Product
develop
package
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)

Promotion
What kind?

Pizza Pizza
vs.

Poor, the
pizza is not
fresh and
very generic

Niagara
street,
welland

Lower, the
product used
is cheaper

Advertise,
they advertise
on tv and new
paper

Local pizza
place

Excellent, the
pizza is
made to
order and
has its own
taste

Mossimos,
Hwy 20
fonthill

Higher,
ingredents
used are
much more
quality, and
take more
time to make

Advertise,
they advertise
through
facebook,
newspapers

McCains
Frozen Pizza

Good, you
can add what
ever you
want and its
healthier

Soybes,
South
Pelham
welland

Medium,
cheap to make
but transport
to the stores
are more

Sales

YMCA vs.

Good, has
everything
you need but
not many
benefits

Woodlawn,
Welland

Higher, they
know people
will come so
the price is
higher

sales

local gym

Excellent,

World gym,

Lower, you

sales

everything
you need
plus many
benefits
(massages,
tanning)

Ontario
street, st
Catherines

pay 10$
compared to
40$ for more

Local Sports
store vs.

Good,
everything
you need,
still
expansive

Buckners,
Niagara
street

Higher, costs
a lot to make

Advertise

Sportcheck

Good,
everything
you need,
still
expansive

Niagara
street

Higher, costs
a lot to make

Advertise

Used car lot

vs.

Good, you
can get good
value but not
everything
you want

Vip motors,
federal road

Lower, thee car

loses value
after the first
owner, so its
cheaper

Advertise

Excellent,
you can have
exactly what
you want and
a brand new
car

Niagara
street

Higher, the car

was just built
so it will cost
more

Advertise

Magic Cuts vs

Needs
improvement,
inexperience
d hair
dressers

St.
Catherines

Lower, the hair

cuts dont
have the
quality

Sales

Local

Good, the

Welland,

Higher, the

Advertise/sale

Chevrolet
dealership

Hairstylist

hair dresser
have been
doing it their
whole lives,
they know
what theyre
doing

Niagara
street

hair dresser
takes more
time

GNC vs.

Excellent,
focuses on
people who
are regularly
working out

Niagara falls

Higher, higher
quality product

Advertise

Local health
store

Good, for
those looking
to just being
healthy and
not fit

Niagara
street

Lower, made
of mostly
organic
materials so
cheaper

Sales

Best Buy vs.

Good, has
everything

Niagara falls

Higher,
electronics are
expensive

Advertise

Future Shop
vs.

Good, has
everything

Niagara falls

Higher,
electronics are
expenisve

Advertise

The Source

Poor, doesnt
have
everything,
just very
specific
things

Niagara
street

Higher,
electronics are
expenisve

Advertise

7 UP vs.
Mountain Dew
Coke vs.

Red Bull vs.

Gatorade
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, Combo

Explain

New packaging

push

The new package will make

you impulsively buy it thinking
its a whole new thing

Point of purchase materials

pull

Trys to pull you to go to their

location through advertising

Billboard Advertising

Pull

Trys to get people to know

where to buy your product

Taking a client golfing

Both

You are making a

realationship with them and
makes them feel like they
need to buy it

Coupons

Push

Makes you buy more items

(9.99 for 2 big macs)

In Store-Discounts

Push

It makes you wanna buy the

product that is on sale event
though you might not need it

Moving the product closer to

the cash register