Download BBI120 Marketing Concepts

BBI120
Marketing Concepts
4 Ps of Marketing

Product

Price

Place

Promotion

These are referred to as the marketing _______, and they must be properly combined for an
effective marketing campaign
1. Product/Service Mix

Mixing of product and service
o e.g. retail stores such as Sears add _______ to the products they sell such as
delivery, installation and extended product _______________

Can also have a service business, such as a movie theatre, that also sells products, e.g.
popcorn
2. Price

How much is ____________ for the product or service

Can determine the success or failure of a product

Consumers are very aware of _________ and compare brands and stores

Marketers need to know if consumers are price ______________

How much sales will go up or down based on changes in price
3. Place

Also known as channels of _________________

Paths of ownership or control that goods follow as they pass from producer to consumer

Methods that a business uses to sell and distribute its products
Types of Place

Direct

Indirect

Specialty
Direct Channel

Connects _____________ to businesses that are selling the goods or providing services

No _________________ (middle person) to increase the cost

Known as maker-user relationship
Indirect Channel

Have one or more intermediaries

Could be an_____________, wholesaler or retailer
Importer

Someone who searches for foreign businesses that want to sell their product to Canadian
consumers

Can have ______________ rights to distribute the product in a certain region/country
Wholesalers

Individuals or companies that buy goods from producers or importers and __________ the
products to retailers
Why use a wholesaler?

Can buy in smaller ______________ vs. buying directly from manufacturer

Usually located closer to the wholesaler
Specialty Channels

An _____________ channel of distribution that does not involve a retail store

Examples:
o Vending machines
o Telemarketing
o Catalogue sales
o _____________
o Door-to-door sales
4. Promotion

Any attempt to _________ a product or service

Sales promotions encourage consumers to buy products using:
o Coupons
o Contests
o ____________
o Samples
o Special events
Coupons

Offering consumers money ______ of the price of a product

They are treated like cash

Most coupons end up in the ____________
Redemption Rate

Measures the __________________ of a coupon program

The larger the coupon, the higher the redemption rate

Average is about 5%
Contests

A way to increase brand ________________ and sales

Law requires people to demonstrate a __________ or answer a skill-testing question

e.g. Tim Hortons Roll up the Rim contest
Premium

Giveaways

Sometimes the consumer gets something for ________ when purchasing a product

e.g. a toy in cereal box

Customer ____________ cards are another method

Stamped each time the consumer makes a purchase
Samples

Encourage consumers to ________ a product

Often small “trial” sizes of the product

Sometimes distributed door-to-door or at the ______________

An effective way to increase sales but ______________
Special Events

Organizing special events to attract _______________ and increase product sales

e.g. book signing, celebrities that promote shoes, perfume
Two Cs of Marketing

Consumer

Competition

Must consider these when developing the marketing mix
Consumer Market

Companies study the ____________ of consumers that buy their products

Can be identified by:
o Demographics
o ____________
Demographics

The study of obvious _________________ that categorize people, such as:
o Age
o Gender
o Family life cycle
o Household ___________
o Ethnicity and culture
o Lifestyle
Competition

Competitive market
o Consists of all the _____________ of a specific product
o Often expressed in terms of _____________ spending on a specific product


Market share
o The _______ of the market that a company or brand has
Market Segment
o Part of the overall market that has _____________ characteristics
o e.g. soft drink market would have a diet segment, flavoured segment
Direct Competition

Competition between products that are very _____________
o e.g. Ritz Crackers vs. Premium Plus crackers
Indirect Competition

Competition between products or services that are _______ directly related to each other

e.g. movie and pizza
Discretionary Income

The portion of disposable income that is not already committed to paying for ____________
and can be used to buy items for comfort and pleasure
Disposable Income

The amount of income that is left after _________ have been paid

Could be used for basic necessities such as _______, shelter and clothing