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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:
o Identify an opportunity in a specific consumer or industrial market.
o Ensure the opportunity has not been met
o 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 separately-most 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

Product Development

3 concerns of the product and development team:

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

Packaging
Pricing
Branding

Includes a products:
name
logo
slogan
Package design
Trademark

Sale
Physical distribution
Inventory management A company tries to have:

Enough to satisfy demand

Not more than they can sell

advertising
publicity

Storage
Promotion

1.5 Consumer and Competitive Markets

Complete as you read 19-20
A consumer market All of those consumers who are or may become interested in a product
is
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

Any gender or age looking for footwear

Fast food

Arbys

Appeals to any age, anyone who enjoys good beef

Recording artist

Luke Bryan

Appeals to ages 10-25 of any gender, country music enthusiast

Non-profit
organization

United Way

Any gender or age look for financial aid

Industry of your
choice 1

Auto manufacturers Companies looking for cars to sell on their car lot

Industry of your
choice 2

Paper Mills

1.6 Marketing Mix

Appeals to companies that need paper products to produce their

product

4 Elements of the Marketing Mix

1. Product
1. develop
2. package
3. 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)
Higher

Promotion
What kind?

Pizza Pizza
vs.

Satisfactory

Many locations in a
region.

Local pizza
place

Good/Excellent

Usually only one location Low to medium

because it isnt a chain
restaurant.

Menu sent out in the

paper or sponsorships on
house league sports

McCains
Frozen
Pizza

Poor

Can find at most grocery

stores

Ads on T.V
(commercials)

YMCA vs.

Good

Many locations, most

Medium-High
cities have one, some have
multiples depending on
size of city

Ads in the newspaper or

on local T.V/Radio

local gym

Good

Usually only one location Low-Medium

No ads

Local
Sports
store vs.

Good

Usually only one store

Low

Medium

Ads on T.V/Radio

Little-to-no ads

Sportchek

Excellent

2-3 stores in a region

High

Commercially advertised
(radio, newspaper, T.V)

Used car lot

vs.

Satisfactory

Usually one or two

locations

Low to Medium

Advertised in flyers

Excellent

1-2 locations per region

High

Social media, commercial

ads

Magic Cuts
vs

Medium

One in each city

Medium-High

Commercials on T.V

Local
Hairstylist

Excellent

One in a city

Medium-High

Advertise in local
newspaper

GNC vs.

Excellent

One-two in a region

High

Radio or Social media

Local
health store

Good to Excellent One in a city/town

Medium-High

Local newspaper

Best Buy
vs.

Excellent

One-two in major city

Medium-High

Flyers, Commercials on
the radio and T.V

Future
Shop vs.

Excellent

One-two in major city

Medium-High

Flyers, Commercials on
the radio and T.V

The Source

Good to excellent In the local mall, one for

city

Medium

Flyers

7 UP vs.

Excellent

Found at most stores with Medium

beverages on display

Commercials, flyers

Mountain
Dew

Excellent

Found at most stores with Medium

beverages on display

Commercials, flyers

Coke vs.

Excellent

Found at most stores with Medium

beverages on display

Commercials, flyers

Chevrolet
dealership

Red Bull vs.

Gatorade

Excellent

Found at select stores

High

Social media, sporting

events

Excellent

Found at select stores

Medium

Social media, sporting

events

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, Explain

Combo

New packaging

Pull

New packaging is appealing to the consumers, so its more likely theyll buy
the product on instinct. The new packaging will cause consumers to talk about

it, so word of the product will get around. The advertising is not very in your
face. New packaging could include new information on benefits of the
product as well.

Point of purchase Combo

materials

It is a strong approach towards buyers; however they give you information on

the product and how it can benefit you. Major advertising is used.

Billboard
Advertising

Push

Billboard advertising is there for all consumers to see. They often have a
stronger approach on selling to consumers.

Taking a client
golfing

Push

Taking a client golfing is altering how the client is making decisions because
of flattery. It is a very in your face marketing strategy.

Coupons

Pull

Coupons promote the product by presenting deals and benefits on the product
itself to make consumers want to buy that product even more. It isnt an in
your face strategy.

In StoreDiscounts

Pull

Softer approach to marketing; a discount can be promoted but it isnt a bold

advertisement. Discounts make the consumer want to spend money on that
product because its cheaper, not because the product is advertised boldly.

Moving the
product closer to
the cash register

Push

This is a stronger approach to marketing because it is almost guaranteed that

the customer at the store will look in that area since the cash register is where
everyone goes to buy their products. Its more likely for that product to bought
since its right where its in the most plain view.