Marketing Basics
What is marketing?
Activities/processes businesses use to understand customers and create, communicate, deliver, and exchange value.
Name the 4 Ps.
Product, Price, Place, Promotion.
What is a target market?
The specific group of customers a business chooses to focus its marketing efforts on.
What is market segmentation?
Dividing a larger market into smaller groups with similar characteristics.
What is a need?
Something necessary/basic that a consumer requires.
What is the difference between a need and a want?
What is a need is necessary for living, and a want is something someone would like to satisfy a need.
A company lowers the price of a product from $20 to $15. Which P?
What is Price?
Why do businesses identify a target market?
So businesses can better understand customers and make marketing decisions that appeal to them.
Targeting customers based on age is what type of segmentation?
Demographic
What is customer value?
The benefits customers believe they receive compared with what they give up to obtain a product/service.
What is the marketing concept?
What is focusing business decisions on understanding and satisfying customer needs/wants while accomplishing business goals.
A company begins selling its products at Walmart. Which P?
What is Place?
Name TWO characteristics marketers could use to describe a target customer.
characteristics such as age, location, interests, income, lifestyle, buying behavior, etc.
Targeting people who live in Kansas is what type?
Geographic
Why should marketers study competitors?
Competitors affect customers' alternatives, expectations, prices, products, and marketing decisions.
Why is the customer at the center of the marketing concept?
What is marketing decisions should begin with understanding and satisfying the customer.
A company launches TikTok ads for its new shoes. Which P?
What is promotion?
What is consumer behavior?
How consumers make purchasing decisions and how needs, preferences, attitudes, trends, and other factors influence their behavior.
Targeting people who value fitness and an active lifestyle is what type?
Psychographic.
Why is brand consistency important?
Consistency helps customers recognize the brand and understand what experience/value they can expect.
Give an example of a business using the marketing concept.
What is (this is at the discretion of Mr. Richter)
A restaurant creates a new student meal, prices it at $7, sells it near a high school, and advertises it on Instagram. Identify all 4 Ps.
What is Product = student meal; Price = $7; Place = location near high school; Promotion = Instagram advertising?
Explain how understanding consumer behavior can improve a company's marketing decisions.
It helps marketers make better product, price, place, and promotional decisions based on what customers actually value.
Explain the difference between demographic, geographic, psychographic, and behavioral segmentation.
Demographic = personal/population characteristics; Geographic = location; Psychographic = lifestyle/interests/values; Behavioral = purchasing behavior, usage, loyalty, or benefits sought.
A competitor lowers its price. Why might automatically lowering your own price be a bad marketing decision?
Lowering price could reduce profit or hurt brand positioning; marketers should first understand why the competitor lowered its price and what their own customers value.