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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

All ages, any gender, looking for casual foot wear

Fast food

Arbys

Appeals to all ages, people who like beef

Recording artist

Luke Bryan

Ages 10-25, any gender, Country music enthusiast

Non-profit
organization

United Way

Any age, any gender, people seeking financial help

Industry of your
choice 1

Auto manufacturers Companies seeking cars to sell on their car lots

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)

Many locations in a region. Higher

Promotion
What kind?
Adds on T.V

Pizza Pizza
vs.

Satisfactory

Local pizza
place

Good-Excellent Usually one location, not a Low-medium

chain restaurant

Menu sent out in local

paper

McCains
Frozen Pizza

Poor

Can find at most grocery

stores

Ads on T.V

YMCA vs.

Good

Many locations, most cities Medium-High

have one, some have
multiples depending on size
of city

Ads in the newspaper or

on local television or
radio

local gym

Good

Usually one location

Low-Medium

No ads

Local Sports
store vs.

Good

One store

Medium

Little to no ads

Sportcheck

Excellent

2-3 stores in a region

High

Commercially
advertised

Low

Satisfactory

Usually one or two

locations

Low to Medium

Advertised in flyers

Excellent

One-Two per region

High

Social media,
commercial ads

Magic Cuts
vs

Medium

One in each city

Medium-High

Commercials

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-Excellent One in a city

Medium-High

Newspaper

Best Buy vs.

Excellent

One-two in major city

Medium-High

Flyers, Commercials

Future Shop
vs.

Excellent

One-two in major city

Medium-High

Flyers, Commercials

The Source

Good-Excellent In the local mall, one for

city

Medium

Flyers

7 UP vs.

Excellent

Found at most stores with

beverages on display

Medium

Commercials, flyers

Mountain
Dew

Excellent

Found at most stores with

beverages on display

Medium

Commercials, flyers

Coke vs.

Excellent

Found at most stores with

beverages on display

Medium

Commercials, flyers

Used car lot

vs.
Chevrolet
dealership

Red Bull vs.

Excellent

Found at select stores

High

Social media, sporting

events

Gatorade

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, Combo Explain

New packaging

Pull

Point of purchase materials

Combo

Billboard Advertising

Push

Taking a client golfing

Push

Coupons

Pull

In Store-Discounts

Pull

Moving the product closer to the cash register