Due Friday February 18th.
Chapter 1
Key Terms: What is Marketing?
1.1
Term
Text Definition
marketing
.is the sum of all the activities involved in the planning, pricing, promoting,
distributing,and selling of goods and service to satisfy consumers needs and
wants.
Everyone that might buy a product.
Consumer
market
Raw materials
Processed
goods
Target market
Are usually marketed to businesses that process them or use them in
manufacturing.
.are sold as finished goods or semi finished goods.
The Group of people the manufacturer or service provider want to buy their
product.
Who markets? 5
Manufactures ,politicians, service business, notfor –profit organization
Types of Products-2
Industrial goods
Consumer goods
Finished goods
Unfinished goods
Are usually marketed to businesses that process
them or use them in manufacturing.
Types of Goods or services-2
Raw Materials are:
Processed Goods are:
are sold as finished goods or semi finished goods
Finished Goods are:
Are products that no longer require processing and
are used to make another product or provide a
service
The difference between industrial
and consumer goods and services:
Industrial goods are used in business to make
other products or assist in business operations as
opposed to Consumer goods which are
nonindustrial products intended for personal use
by the general public.
A target Market is:
The group of people the manufacturer or service
provider want to buy their product
1.2
1. 3 major steps of the Marketing Concept:
 Identify an opportunity in a specific consumer or industrial market.
 Ensure that the opportunity has not already been met in the competitive market
 Use appropriate marketing strategies to organize marketing plans and to sell its
product or service successfully
2. 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
3. When there is more supply than demand, marketing…is redundant because the product sells
itself
4. The industrial revolution (mass production)changed the balance of supply and demand
because before mass production, demand was … Usually greater than the supply. Farmers,
craftspeople, and artisans worked with their hands and produced limited output.
5. The internet has .... Connected buyers with sellers directly and globally
1.3
Regional organization
Definition: an organization that is found only
within one area or region of a country
International organization
Definition: an organization found in two or more
countries
Brand management
Definition: a form of organization within a
company with large number of products.
Distribution management
Definition: a way in which the company
organizes the distribution of its products
Marketing divisions can be organized by:
1.
2.
3.
4.
5.
Regional organization
International organization
Brand management
Distribution management
Combination
1.4 Marketing Activities-Complete the following using pages 16-17
1. Research
Conducting surveys gathers:
 preferences
 habits
 lifestyle
 competing products
2. Product Development
3 concerns of the product and development
team:
 consumer
 delivered effectively
 Competitively priced
3. Packaging
4. Pricing
5. Branding
6. Sale
7. Physical distribution
8. Inventory management
9. Storage
10. Promotion
Includes a product’s:
 Products name
 trademark
 logo
 slogan
 Package design
Using effective sales methods can increase
the size of an organization market both
nationally and internationally.
The ability to ship a product to the
consumer efficiently and inexpensively is
essential to the products successe in the
marketplace.
A company tries to have:
 Large format retailers
 Satisfy the needs of their customers


advertising
publicity
1.5 Consumer and Competitive Markets
Complete as you read 19-20
1. A consumer market is
Refers to all those consumers who are or may become
interested in a particular product or service and who have the
means by which to purchase it.
2. A competitive market is
Comprises all the products services that compete with one
another for consumers money within a specific category.
3. An aggregate market is
It the target market is everybody
4. A differentiated market is
Most consumer markets
`
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
footlocker
, male and female 15-35
Fast food
Wendy’s
All ages, male and female
Recording artist
Lil wayne
Ages 16-
Non-profit organization
Industry of your choice 1
Industry of your choice 2
1.6 Marketing Mix
4 Elements of the Marketing Mix
1. product
a. product development
b. packaging
c. branding
2. Price
a. Consumer
b. Profitability
c. Sales volume
3. place
4. Promotion
a. Advertising
b. Sales promotion
c. Publicity
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
Pizza Pizza vs.
Volcanos or Rose
City Pizza vs.
McCain’s Pizza
Boston Pizza vs.
M.T. Bellies
YMCA vs.
Xfitness
Family Sports vs.
Sportcheck
Burkholder Auto
vs.
David Chev
Magic Cuts vs
Golden Razor
GNC vs.
Health Wise
Best Buy vs.
Future Shop vs.
The Source
Leons
MacFrugals
7 UP vs.
Mountain Dew
Place or places
Location
Price
(higher/lower)
Promotion
What kind?
Coke vs.
Red Bull vs.
Gatorade
1. 1.7
Marketing Plan=Goals+target market+4p’s
Brand Strategy
To communicate the value of a product or service to the consumer
Value
The difference between the perceived cost of the product and the
perceived satisfaction derived from the product
Value Equation
Adds together all of the benefits of a product, both real and
imagined and subtracts the costs involved in obtaining the product
In a simplistic way, this phrase means what you see is what you get,
what you visualize is what is happening in reality
In your words, explain what “Perception is reality” means. (Not in
Book)
A rule of
marketing
Distribution
Strategies
1. Push the product or service to the consumer
2. Pull or attract the consumer to the product or service
3. Use a combination push/pull strategy
Push Strategy
(in your face)
Sells the product to retailers, importers, or whole salers and not to
end use consumers. If the product is out there for consumers to see
it, they will buy it
Pull Strategy
(softer)
Attempts to increase consumer demand directly, rather than rely on
retailers to sell the product to the customer
Combination
Requires distribution partners to fulfill the demand created by the
manufacturer, combination of both push and pull strategies.
http://www.youtube.com/watch?v=FRD-NSYD8VQ
1. Classify the following marketing as being a push, pull or combination strategy.
Explain your answer.
Activity
Push, Pull, Combo
Explain
New packaging
Push
Consumers can visibly see the
new packaging therefore they
think about buying it
Point of purchase materials
Push
Product sold to retail stores
first, before they are sold to the
consumer
Billboard Advertising
pull
Consumers will see the ads on
their own and may be
convinced to go buy the
product
Taking a client golfing
combination
Both pulling in the client with
a deal and pushing an offer to
him at once
Coupons
pull
Discounts will pull consumers
to come buy
In Store-Discounts
push
Discounts will pull consumers
to come buy
Moving the product closer to
the cash register
Push
A push strategy used by many
stores, displaying the product
closer to the consumers eye
Project:
Copy and paste the contents of Chapter 1 into a website, using MS FrontPage.
Include the following:
 Theme
 Shared borders
 Link bars
 Page banner
 Clipart or relevant pictures