Vocabulary
UNIT 1.1
-Product/Service management: very important because it involves obtaining, developing, maintaining,
and improving a product or service mix in response to market opportunities.
-Marketing-information management: This function involves gathering, accessing, synthesizing, evaluating, and disseminating information.
-Pricing: Involves determining and adjusting prices to maximize return and meet customers’ perceptions of value.
-Channel management: responsible for identifying, selecting, monitoring, and evaluating sales
channels, also known as channels of distribution.
-Promotion: The purpose of the promotion function is to communicate information about goods, services, images,
and/or ideas to achieve a desired outcome.
-Selling: involves determining client needs and wants and responding through planned, personalized communication
that influences purchase decisions and enhances future business opportunities.
UNIT 1.2
-Market is a group of potential customers
-Mass Market is when the group is considered as a whole with all the marketing activities; using a single marketing plan. For example, chewing gum would be marketed as a mass market.
-Market segment is a subgroup of a larger market that share one or more characteristics.
-Market Segmentation is the process of dividing a larger market into smaller parts.
-Demographics Segmentation is statistics that describe a population by personal characteristics such as age, gender, income, marital status, ethnicity, education, & occupation.
-Geographics Segmentation is markets divided by where the customer lives.
-Psychographic Segmentation is markets divided by social and psychological characteristics. (Lifestyles, morals, values, & interests)
-Behavioral Segmentation is segmenting a market base on the way customers use a product or behave toward a product. (product benefits)
-Marketing mix includes four basic strategies called the 4 P’s or elements of marketing. For each strategy, decisions have to be made for each product the business offers to best reach their target market.
-Product decisions include what to make or obtain as the business’s product mix. Level of quality, features, branding, packaging, service, and warranty are items to decide and develop for each product.
-Place decisions include where the customer can obtain the products. Many businesses utilize multiple channels of distribution. For example, store locations, website, and catalogs are the standard for most retailers today. Decisions of direct distribution or indirect distribution (intermediaries/middlemen) must be made.
-Price decisions include determining what a customer is willing to pay, what competition is charging, determining seasonal discounts and allowances, and credit terms.
-Promotion decisions include the promotional mix (advertising, sales promotion, selling, and publicity). These decisions are based on the budget a business sets for the promotional mix.
-Goals are objectives set to achieve a specified purpose that should have measurability and a deadline established. (Stated achievements
-Strategies are plans of action used to achieve the goals. (What to do)
-Tactics are specific actions for carrying out strategies and ultimately the goal. (How to do it)
-Target Markets are identified segments of the market that a business wants to have as their customers. For example, teenagers, mothers-to-be, single mothers, American Family, men .vs. women, or college freshman. Each example has wants and needs that can be targeted and utilized to develop effective strategies to reach existing and/or potential customers.
-Direct distribution is when a product/service goes from the manufacturer directly to the consumer. For example, doctors, hair stylist, nail stylist, massage therapist, fresh produce stand on the farmland.
-Indirect distribution is when a product/service goes through an intermediary or middlemen.
-Intermediary/middlemen are wholesalers, agents, or retailers
-Wholesalers buy products from the manufacturer taking ownership and then reselling to other wholesalers or retailers.
-Agents do not take ownership but instead represent a business and assist in the sales transaction. For example, real estate agents or insurance agents represent the company.
-Retailers buy their products from manufacturers or wholesalers and sell directly to the consumer. For example, Target, Belks, Macys, or Kohls are retailers.
-Facts: Facts are data that can be verified
-Estimates are approximations or “educated guesses”
-Product/Service management: very important because it involves obtaining, developing, maintaining,
and improving a product or service mix in response to market opportunities.
-Marketing-information management: This function involves gathering, accessing, synthesizing, evaluating, and disseminating information.
-Pricing: Involves determining and adjusting prices to maximize return and meet customers’ perceptions of value.
-Channel management: responsible for identifying, selecting, monitoring, and evaluating sales
channels, also known as channels of distribution.
-Promotion: The purpose of the promotion function is to communicate information about goods, services, images,
and/or ideas to achieve a desired outcome.
-Selling: involves determining client needs and wants and responding through planned, personalized communication
that influences purchase decisions and enhances future business opportunities.
UNIT 1.2
-Market is a group of potential customers
-Mass Market is when the group is considered as a whole with all the marketing activities; using a single marketing plan. For example, chewing gum would be marketed as a mass market.
-Market segment is a subgroup of a larger market that share one or more characteristics.
-Market Segmentation is the process of dividing a larger market into smaller parts.
-Demographics Segmentation is statistics that describe a population by personal characteristics such as age, gender, income, marital status, ethnicity, education, & occupation.
-Geographics Segmentation is markets divided by where the customer lives.
-Psychographic Segmentation is markets divided by social and psychological characteristics. (Lifestyles, morals, values, & interests)
-Behavioral Segmentation is segmenting a market base on the way customers use a product or behave toward a product. (product benefits)
-Marketing mix includes four basic strategies called the 4 P’s or elements of marketing. For each strategy, decisions have to be made for each product the business offers to best reach their target market.
-Product decisions include what to make or obtain as the business’s product mix. Level of quality, features, branding, packaging, service, and warranty are items to decide and develop for each product.
-Place decisions include where the customer can obtain the products. Many businesses utilize multiple channels of distribution. For example, store locations, website, and catalogs are the standard for most retailers today. Decisions of direct distribution or indirect distribution (intermediaries/middlemen) must be made.
-Price decisions include determining what a customer is willing to pay, what competition is charging, determining seasonal discounts and allowances, and credit terms.
-Promotion decisions include the promotional mix (advertising, sales promotion, selling, and publicity). These decisions are based on the budget a business sets for the promotional mix.
-Goals are objectives set to achieve a specified purpose that should have measurability and a deadline established. (Stated achievements
-Strategies are plans of action used to achieve the goals. (What to do)
-Tactics are specific actions for carrying out strategies and ultimately the goal. (How to do it)
-Target Markets are identified segments of the market that a business wants to have as their customers. For example, teenagers, mothers-to-be, single mothers, American Family, men .vs. women, or college freshman. Each example has wants and needs that can be targeted and utilized to develop effective strategies to reach existing and/or potential customers.
-Direct distribution is when a product/service goes from the manufacturer directly to the consumer. For example, doctors, hair stylist, nail stylist, massage therapist, fresh produce stand on the farmland.
-Indirect distribution is when a product/service goes through an intermediary or middlemen.
-Intermediary/middlemen are wholesalers, agents, or retailers
-Wholesalers buy products from the manufacturer taking ownership and then reselling to other wholesalers or retailers.
-Agents do not take ownership but instead represent a business and assist in the sales transaction. For example, real estate agents or insurance agents represent the company.
-Retailers buy their products from manufacturers or wholesalers and sell directly to the consumer. For example, Target, Belks, Macys, or Kohls are retailers.
-Facts: Facts are data that can be verified
-Estimates are approximations or “educated guesses”
PowerPoint Information
General Purpose of conducting Marketing Research:
• To explain something. An organization may wonder
why its sales are declining or why a certain product is not
meeting customer expectations. Marketing research can
help uncover explanations for these types of questions.
• To predict something. Marketers might want to know
how much demand there will be for a new product or
what will happen if the company opens a new retail store
in a certain location. Marketing research can help them
to make accurate predictions about these and other
marketing issues.
• To monitor something. Perhaps a company wants to
track product performance among geographic regions
or specific market segments. Marketing research can
help keep track of these statistics.
Exploratory research
Marketing research that collects information to help the business define its issue, situation, or concern and decide the direction in
which to go to address it is called exploratory research. In other words, marketers often use exploratory research when they “don’t
have much to go on.” Exploratory research is appropriate for:
• Seeking to gain insight or ideas into the general nature of a marketing problem. Perhaps you have an entrepreneurial
spirit. You’d like to open a new business in your town, but you’re not sure what customer needs there are to fill. You
might conduct exploratory research to learn what types of businesses are likely to be successful in the market.
• Clarifying concepts. Let’s say marketers for a retail chain know that customer satisfaction is generally low. They need to
make marketing decisions that will boost customer satisfaction, but they must first clarify the term “customer.” Does it include
every person who enters the store to shop or look around, just those who make purchases, or just those who purchase certain
products? Exploratory research can help marketers to clarify this idea before the bulk of the research begins.
• Generating hypotheses. Marketers may not always be able to clearly define the reasons for their research. Exploratory research
can aid them in their efforts to generate hypotheses surrounding a particular problem or issue. For example, marketers
for a wholesaler are “kicking around” ideas for increasing sales, but they don’t have any specific ideas yet. Exploratory research
might assist them in identifying two different options for increasing sales, which in turn would help them in developing two
possible hypotheses. One is, “If we offer retailers a bigger discount on large orders, sales will increase.” The other is, “If we
introduce a greater variety of products for retailers to choose from, sales will increase.” The marketers can then conduct further
research to test one or both of these hypotheses.
• Establishing priorities among research questions or hypotheses. Sometimes, a marketing problem has several possible
solutions. Organizations can’t spend the amount of time and money it might take to thoroughly research all these solutions,
so they must decide where to begin. Exploratory research can give them clues as to which research questions or hypotheses
should be looked into first
• To explain something. An organization may wonder
why its sales are declining or why a certain product is not
meeting customer expectations. Marketing research can
help uncover explanations for these types of questions.
• To predict something. Marketers might want to know
how much demand there will be for a new product or
what will happen if the company opens a new retail store
in a certain location. Marketing research can help them
to make accurate predictions about these and other
marketing issues.
• To monitor something. Perhaps a company wants to
track product performance among geographic regions
or specific market segments. Marketing research can
help keep track of these statistics.
Exploratory research
Marketing research that collects information to help the business define its issue, situation, or concern and decide the direction in
which to go to address it is called exploratory research. In other words, marketers often use exploratory research when they “don’t
have much to go on.” Exploratory research is appropriate for:
• Seeking to gain insight or ideas into the general nature of a marketing problem. Perhaps you have an entrepreneurial
spirit. You’d like to open a new business in your town, but you’re not sure what customer needs there are to fill. You
might conduct exploratory research to learn what types of businesses are likely to be successful in the market.
• Clarifying concepts. Let’s say marketers for a retail chain know that customer satisfaction is generally low. They need to
make marketing decisions that will boost customer satisfaction, but they must first clarify the term “customer.” Does it include
every person who enters the store to shop or look around, just those who make purchases, or just those who purchase certain
products? Exploratory research can help marketers to clarify this idea before the bulk of the research begins.
• Generating hypotheses. Marketers may not always be able to clearly define the reasons for their research. Exploratory research
can aid them in their efforts to generate hypotheses surrounding a particular problem or issue. For example, marketers
for a wholesaler are “kicking around” ideas for increasing sales, but they don’t have any specific ideas yet. Exploratory research
might assist them in identifying two different options for increasing sales, which in turn would help them in developing two
possible hypotheses. One is, “If we offer retailers a bigger discount on large orders, sales will increase.” The other is, “If we
introduce a greater variety of products for retailers to choose from, sales will increase.” The marketers can then conduct further
research to test one or both of these hypotheses.
• Establishing priorities among research questions or hypotheses. Sometimes, a marketing problem has several possible
solutions. Organizations can’t spend the amount of time and money it might take to thoroughly research all these solutions,
so they must decide where to begin. Exploratory research can give them clues as to which research questions or hypotheses
should be looked into first
Essential Questions
1. What are facts? Facts are data that can be verified
2. What are estimates? Estimates are approximations or “educated guesses”
3. What are predictions?Predictions are forecasts about the future
4. What useful data can marketers gather from salespeople?
What products are selling and how sales stack up to budgets and goals
5. What useful data can marketers gather from customers?Marketers can gather who a customer is, what they want/ need, and how much they spend
6. What useful data can marketers gather from competitors?Useful data marketers can gather from competitions is public financial records, current product offerings, andpromotional campaigns
7. What useful data can marketers gather from suppliers and distributors?
Useful data marketers can gather from suppliers and distributors is they know what items are being sold to thebusinesses and they can all tell the amount of data throughout the distribution channel.
8. What useful data can marketers gather from news and trade journals?
Useful data marketers gather from news and trade journals are current events and industry news
9. How do marketers use data to identify goals?
Marketers use data for sales, market share, and budgets
10. How do marketers use data to develop product strategies?
The marketers use data to develop product strategies to see what products are offered, what new products can be developed, and what level of customer service to provide.
11. How do marketers use data to develop pricing strategies?The see what to charge and when to raise or lower prices
12. How do marketers use data to develop promotional strategies?
They learn what to say, how often to say it, and in what ways to say it
13. How do marketers use data to develop “place” strategies?
To see how much of the product to buy or create, and what channels of distribution to use
14. How do marketers use data to make budgeting decisions?
By estimating costs for each product and allocation funds accordingly
15. How do marketers use data to identify problems or issues?
Marketers use data to identify problems or issues with products, customer services, vendors/suppliers, andsalespeople
16. How do marketers use data to evaluate results?
Marketers use data to evaluate positive and negative outcomes to know what not to do and what to keep doing
17. What is the overall impact of data on marketers and their companies?The overall impact of data on marketers and their companies is helping marketers to create competitive products, satisfy customers, and make cost-effective decisions.
2. What are estimates? Estimates are approximations or “educated guesses”
3. What are predictions?Predictions are forecasts about the future
4. What useful data can marketers gather from salespeople?
What products are selling and how sales stack up to budgets and goals
5. What useful data can marketers gather from customers?Marketers can gather who a customer is, what they want/ need, and how much they spend
6. What useful data can marketers gather from competitors?Useful data marketers can gather from competitions is public financial records, current product offerings, andpromotional campaigns
7. What useful data can marketers gather from suppliers and distributors?
Useful data marketers can gather from suppliers and distributors is they know what items are being sold to thebusinesses and they can all tell the amount of data throughout the distribution channel.
8. What useful data can marketers gather from news and trade journals?
Useful data marketers gather from news and trade journals are current events and industry news
9. How do marketers use data to identify goals?
Marketers use data for sales, market share, and budgets
10. How do marketers use data to develop product strategies?
The marketers use data to develop product strategies to see what products are offered, what new products can be developed, and what level of customer service to provide.
11. How do marketers use data to develop pricing strategies?The see what to charge and when to raise or lower prices
12. How do marketers use data to develop promotional strategies?
They learn what to say, how often to say it, and in what ways to say it
13. How do marketers use data to develop “place” strategies?
To see how much of the product to buy or create, and what channels of distribution to use
14. How do marketers use data to make budgeting decisions?
By estimating costs for each product and allocation funds accordingly
15. How do marketers use data to identify problems or issues?
Marketers use data to identify problems or issues with products, customer services, vendors/suppliers, andsalespeople
16. How do marketers use data to evaluate results?
Marketers use data to evaluate positive and negative outcomes to know what not to do and what to keep doing
17. What is the overall impact of data on marketers and their companies?The overall impact of data on marketers and their companies is helping marketers to create competitive products, satisfy customers, and make cost-effective decisions.