Marketing Terms

Marketing Plan Product MixMarketing Objectives Channel of DistributionMarketing Mix IntermediariesBrand PackageLabel Product Positioning Marketing Tactics Private Brand

Marketing Concept DiversificationFeatures Benefits

The Marketing Concept

States that business must satisfy customer needs and wants to make a profit.

A Market is

The potential customers who share common needs and wants and have the ability and willingness to buy a product.

The Target Market is

A group of potential customers. These customers are always described in Geographic, Demographic and Psychographic terms

Geographics are

Where customers live, usually as a zip code.

Psychographics are

A customer’s life-style

Demographics are

Characteristics of a population that “show a picture”. Examples of demographics are: Age, Marital Status, Race, Religion, Income, Profession or Gender.

Segmenting a market

Is describing customers in Geo, Demo & Psycho – graphic terms, who are likely to buy a particular product.

In a business plan

There is a section called:

The Marketing Plan

The Marketing plan contains Marketing objectives (goals) that the business would like to obtain.

All objectives (goals)

Must be S.M.A.R.T.• Specific• Measurable• Attainable• Realistic• Timely

Each marketing objective

Is related to a portion of the Marketing Mix

The Marketing Mix

The Marketing Mix is the four Ps:

1. Product

2. Place

3. Promotion

4. Price

Product Positioning

is: packaging, product features, product benefits, labels and branding for all the products that the company sells (AKA) Product Mix.

A package is a physical container for a good.

A label is part of the packaging and is used to present product information

A product feature is an attribute regarding a product.

A product benefit is the good the customer derives from using the product

Positioning is how customers see a product. An example of this is Cadillac and is positioned as prestigious.

Place / Channel of Distribution

This refers to the path a product takes from the producer to the customer. (Trains, Planes, Trucks or Ships) And what businesses take ownership of the product. Each step of ownership in the product path is known as an intermediary.

Place also refers to the

Location on the shelf inside the retailer’s layout and design, so that the product can be found and compete with the products in its category.

Promotion refers to

Advertising, Types of Personal Selling Techniques, Service Policies, Contests, Couponing and Public Relations

Price Strategy

Price is how much should a business charge its customers.

All of the marketing mix strategies and objectives are created in

conjunction and relevance to the other objectives and are related to

the business plan objectives.

In other words, none of this is created in a vacuum.

Each part of Marketing Mix

Will always need review. Examples like this could be: Change of vendors, suppliers or location (Place)Change is advertising style, (Promotion)Change in Pricing Change packaging. (Product) Smart entrepreneurs must stay on top of changes

if a business is to survive. These are Marketing Tactics

Diversification is

The change in product lines to meet Target Market Segments.

Private Brand is:

A named product owned by a wholesaler or retailer.