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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 are non-industrial products intended for

consumer goods and services:

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
Storage
Promotion

advertising
publicity

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 or
is
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

Everyone, budgeted, aged 10 years of age and up, cheap

brand names.

Fast food

Subway

Young children and young adults aged 5-25 and middle aged
adults 26-35, on the go people.

Recording artist

Eminem

Young adults aged 15-25, people who like rap and fast music,
people who relate to his story.

Non-profit organization Terry Fox

Foundation

Those whove lost people to cancer and want to make a

difference, everyone, mostly Canadians and residents of
Canada

Industry of your choice Suzuki

Motorcycle
1(Sports)

Young children and young adults aged 6-35, who want

extreme riding, also those who want to get around on the
roads(16-65)

Industry of your choice Taris

2(Restaurant)

Middle aged and older adults (35 and up) , fancy night out,
expensive

1.6 Marketing Mix

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)

Promotion
What kind?

Pizza Pizza
vs.

Fast, okay quality

Malls and small

plazas

Middle priced

T.V. advertisements

Local pizza
place

Slightly slower,
great quality

Main streets and

easy to find

Most expensive

Flyers

McCains
Frozen
Pizza

Low Quality, quick Grocery stores

and easy

Cheap ( $5)

T.V. Ads

YMCA vs.

Vast amount of
options to do

More expensive ($50/

month)

Tv ads

local gym

Central options and Smaller streets in Cheaper ($20/month)

small
smaller buildings

Flyers

Local Sports
store vs.

Better quality but

less variety

Plazas and little

shops

Less expensive more

variety

Flyers, small
billboards, posters

Sportcheck

Less quality more

variety

Malls

More expensive and

way better lasting

Posters tv ads

Used car lot

vs.

Low quality, used,

slightly damaged

Small lots on
( near plazas)

Low priced

Posters, in the paper,

bill boards, road signs

Main streets and

close to younger
population

Chevrolet
dealership

Better Quality,
better built cars

Busy streets, Main High priced, (6 times

roads
more expensive)

Tv ads, new paper,

bill boards

Magic Cuts
vs

Fast cuts, low

quality, younger
hair dressers no
experience

Plazas, near other Low priced options

stores

Tv ads bill boards and

window posters

Local
Hairstylist

Experienced hair
Private stores on
dressers longer but busy roads
more quality cuts

Slightly higher priced

but only 2 or 3 dollars
more

Little advertisements
other than window
and small signs

GNC vs.

High quality drugs Main Roads

and more qualified scattered across
workers
town

High quality and more

expensive

Tv ads and bill boards

Local health
store

Lower quality and

less experienced
workers

Small streets on
smaller sides of
town

Cheap priced

Newspaper, local tv
ads, small signs

Best Buy vs.

Higher quality

Large plazas,
malls,

Middle priced goods

Tv ads, bill boards,

flyers

Future Shop
vs.

Higher quality

Large plazas,
malls,

High priced goods

Tv ads, bill boards,

flyers

The Source

Higher quality

Large plazas,
malls,

High priced goods

Tv ads, bill boards,

flyers

7 UP vs.

Lower quality

Grocery stores,
Lower,
convenience stores

Tv ads, bill boards

Mountain
Dew

Higher quality

Grocery stores,
Higher
convenience stores

Tv ads, bill boards

Coke vs.

Higher quality

Grocery stores,
Higher
convenience stores

Tv ads, bill boards

Red Bull vs.

Higher quality

Convenience
stores

Higher

Tv ads, bill boards

Gatorade

Higher quality

Grocery stores Gas Higher

stations

Tv ads, bill boards

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

Theyre pushing their new and slick packaging in your face so you
buy it.

Point of purchase
materials

Push

They use their posters, products etc to draw you in to buying the
product

Billboard Advertising

Pull

It pulls you in and entices you to want to buy the product.

Taking a client golfing Pull

You take them golfing to make them feel welcome and you pull
them in while you are golfing

Coupons

Combo

They pull you in because they make the item youre buying
cheaper and theyre pushed in your face usually through the papers
or flyers

In Store-Discounts

Pull

Since theyre in store, the discounts pull you in to buy the product,

even if you werent going to buy it initially.

Moving the product
closer to the cash
register

Push

This would be a push tactic because they are pushing it close to the
cash register so that you see it on your way out and make you want
to buy the product because theyre usually cheap.