Marketing I Review Guide

St 1 - Marketing Overview

● Marketing Definition -
the activity or business of promoting and selling products or services, including market research and
advertising.
● What are the Seven Functions of Marketing and their definitions–

1. Promotion is an activity that provides encouragement for the furtherance

of a cause

2. Selling giving something for money in return.

3. Product management defying what the customer wants

4. Pricing is the amount for which a product is sold.

5. Market information management is a person that keeps up on the trends

and what to do to help the product sell.

6. Financing providing funding.

7. Distribution getting the product to the consumers or stores.

● Marketing Mix – The four basic marketing strategies (4 P’s) describe each one:

.Product the thing that you are selling

. Promotion activity that supports or provides active encouragement for the furtherance of
a cause, venture, or aim.

.Price the amount of money that you are selling your product for.s

.place the location of somewhere that you are selling your product at.

St 2 - Marketing Planning:
 ● Marketing Plan:a strategic roadmap that businesses use to organize, execute,
and track their marketing strategy over a given period

● Target Market Definition:a particular group of consumers at which a product or

service is aimed.

● Niche Market Definition: a segment of a larger market that can be defined by its
own unique needs, preferences, or identity that makes it different from the
market at large.

● Market Share Definition: the portion of a market controlled by a particular

company or product.

● B2B – “Business to Business” business that _make products for other companies
_________________________
○ Businesses should talk directly to the decision-makers!!!

● B2C – “Business to Consumer” A business that _sells directly to the consumer

_________________________

● SWOT analysis
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

● Market Segmentation – Customers can be segmented into 4 subsets—

○ Demographic
○ Phycograph
○ Geographic
○ Segmentation

St 3 - Marketing Information Management:

● What is Market Research?

the action or activity of gathering information about consumers' needs and preferences.
 ● Name 4 examples of primary research:

● Interviews (telephone or face-to-face)

● Surveys (online or mail)
● Questionnaires (online or mail)
● Focus groups.
● Visits to competitors' locations.

● Name 4 examples of secondary research:

textbooks, encyclopedias, news articles, review articles, and meta-analyses.
● What is the difference between Primary and Secondary Research?
Primary research usually costs more and often takes longer to conduct than secondary
research, but it gives conclusive results.
St 4 - Pricing

● Price -
the amount of money expected, required, or given in payment for something

● Law of Supply and Demand

if the supply of goods or services outstrips demand, prices will fall.

● Break-even point -

reach a point in a business venture when the profits are equal to the costs.

● Explain Rivalry among businesses -

a measure of the extent of competition among existing firms.

● Pricing strategies - How do businesses use these to attract customers? What

are some examples? Cost-based or cost-plus pricing.
● Market-based pricing.
● Value-based pricing.

Companies sell things on how much their worth this is called value based pricing.
St 5 - Product/Service Management

● Product Mix - the total number of product lines and individual products or
services offered by a company

● Product lines - product lining refers to the offering of several related products for
individual sale.
○ Product width - the number of product lines offered by a company.
○ Product depth - the variation in products that a company offers within one
product line.

● Product life cycle – What are the stages and what decisions need to be made in
each?

The product life cycle is the progression of a product through 5 distinct

stages—development you need to choose which choices are best for growing your
company, introduction make a good impression, growth try making people more
interested in your product. , maturity try to stay at the top for a long time and switch
things up., and decline try not to decline for a long time.

● Idea generation methods –

○ Brainstorming: group discussion to produce ideas or solve problems.
○ Screening: the process of evaluating new product ideas early on in the
development process to ensure that they meet business objectives and
customer expectations
○ Crowdsourcing: the practice of obtaining information or input into a task or
project by enlisting the services of a large number of people, either paid or
unpaid, typically via the internet.
○ Mind mapping: writing down a central theme and thinking of new and
related ideas which radiate out from the center

● Benefit vs. Feature

○ The differences between the two when it comes to a car.
Features are what the product or service does, describing which attributes set it apart
from the competition
Std 6 - Promotion

● Definition of Promotion:
an activity that supports or provides active encouragement for the furtherance of a cause,
venture, or aim.
● Elements of the Promotional Mix –

○ Advertising – the activity or profession of producing advertisements for

commercial products or services.

○ Public Relations –“a strategic communication process that builds mutually

beneficial relationships between organizations and their publics.”

○ Personal Selling – face-to-face selling in which one person who is the

salesman tries to convince the customer in buying a product.

○ Sales Promotion – a marketing strategy in which a business uses a

temporary campaign or offer to increase interest or demand in its product
or service.

○ Loyalty Program - reward customers who repeatedly interact with a brand.

● Advertising media examples-

○ Print Media - books, business cards, brochures, coupons, ads
○ Digital - youtube ads
○ Broadcast - tv commercials
○ Social Media - instagram ads

● Sales promotion examples -

○ Coupons calendar coupons.
○ Loyalty programs amazon prime
○ Rebates a volume incentive, where a customer could receive a rebate for
buying a certain volume of a certain product over the life of the deal
○ Samples Cosco sample
○ Premiums Spotify premium
○ Sponsorship Xbox sponsored Doritos
○ Product placement eggos in stranger things.
Std 7 - Channel Management

● Channel of Distribution –
the path used to get a product from the manufacturer or creator to the end user.
● Intermediaries (what are their roles?) –
○ Manufacturer -a person or company that makes goods for sale.
○ Agent -a person who acts on behalf of another person or group.
○ Wholesaler/industrial distributor - a sales organization that typically helps
move these products through the supply chain, providing a valuable
service to both suppliers and business customers
○ Retailer - a person or business that sells goods to the public in relatively small
quantities for use or consumption rather than for resale.
○ Consumer/industrial user -an entity that purchases products with the
intent of using those products in the course of operating a business.

● Methods of transportation for products -

○ Trucks - products on a semi-truck
○ Air - planes bringing products places
○ Ship - products on a boat
○ Rail - products on a train

Std 8 - Selling

● Sales - the exchange of a commodity for money; the action of selling something.

● Explain the concept of Customer Service and how it builds selling relationships.
The customers will like you more and want to shop at your store.
● Give two sales activities that help build long-term relationships as opposed to
closing the sale
A discount, giving extra
● 7 Steps of the Sales Process (give a mnemonic)–
1. Prospecting.
2. Preparation.
3. Approach.
4. Presentation.
5. Handling objections.
6. Closing.
 7. Follow-up.

● Sale Close – Most important step of the sales process.

when the seller and buyer agree to the conditions of the sale and the buyer makes a
firm commitment to the transaction.
Buying Motives:
● Emotional – influence a person to purchase certain goods or services not
because of its rationality, but because of his emotion.
● Rational – having reason or understanding
● Patronage –the support given by a patron.