Download Contemporary Marketing

Contemporary Marketing
Chapter One- Part 1
Part 1 - Vocabulary
Advertising is a marketing strategy to promote a product. It’s the action of calling something
to the attention of the public especially by paid announcements.
A Benefit is an advantage or profit gained from something.
Cause marketing or cause-related marketing refers to a type of marketing involving the
cooperative efforts of a for-profit business and a non-profit organization for mutual benefit.
Marketing is the action or business of promoting and selling products or services, including
market research and promotional strategy.
The Marketing Mix refers to the set of actions, or tactics, that a company uses to promote its
brand or product in the market. The 4Ps make up a typical marketing mix - Price, Product,
Promotion and Place.
Customer relationship management (CRM) is a term that refers to practices, strategies and
technologies that companies use to manage and analyze customer interactions and data
throughout the customer lifecycle, with the goal of improving business relationships with
customers.
The Marketing concept is the philosophy that firms should analyze the needs of their
customers and then make decisions to satisfy those needs, better than the competition.
Personal Selling is where businesses use people (the "sales force") to sell the product after
meeting face-to-face with the customer. The sellers promote the product through their
attitude, appearance and specialist product knowledge.
Pricing Strategy is one of the four main elements of the marketing mix. The price can be set to
maximize profitability for each unit sold or from the market overall.
A company that follows a production orientation chooses to ignore their customer's needs and
focus only on efficiently building a quality product.
Sales promotions are the set of marketing activities undertaken to boost sales of the product or
service.
Selling orientation. As opposed to production orientation, a firm using a sales orientation
focuses primarily on the selling and promotion of a particular product.
Target Market. A specific group of consumers at which a company aims its products and
services.
Undercover marketing. A type of advertisement using actors in real-life settings to make them
appear to be average people.
Part 2- Review Questions
1. Marketing is “the process of planning and executing the conception, pricing, promotion and
distribution of ideas, goods and services to create exchanges that satisfy individual and
organizational objective.”
2. The first Part of Marketing is known as the production era at the time of the industrial
revolution. Mass production increased the availability of product options in the
marketplace. The sales era followed the production era. No longer could business easily sell
everything they produced. Competition for market share increased. After WW II the
marketing era began, when companies realized that the sales orientation of the past was
not resonating with consumers. The marketing era emerged once the premise of the
marketing concept widely accepted. The marketing concept contends that business exist to
address customer needs.
3. Product
Price
Marketing communication (Promotion)
Distribution
4. Product Strategy
Many points have to coincide in the development of the Product. The quality, features,
brand name and guarantees has to be managed that it appears interesting for the
consumer.
Price Strategy
Establishing a fair and equitable price for consumers while being profitable for the
organization. The company has to take care of the cost of manufacturing, desired profit
level, location of customer and the degree of competition.
Distribution Strategy
The main part of distribution is the planning of getting the product to the customer.
Essential distribution decisions include mode of transportation, degree of coverage in a
market, use of direct channels and/or indirect channels and relationship-building programs
with channel members.