Markets & Segmentation
What is a market?
A person or group who is willing and able to spend money to meet unsatisfied wants or needs.
What is promotion?
Informing potential customers about a product, service, or idea.
What are the 4Ps of marketing?
Product, Price, Place, Promotion
What is competition?
Rivalry between companies selling similar products or services
Why is integrity important in marketing?
Customers trust honest brands and avoid those that are misleading
What is the difference between mass marketing and market segmentation?
Mass marketing targets everyone, while segmentation focuses on specific groups.
Name three forms of promotion in the promotional mix.
Advertising, personal selling, sales promotions, public relations, direct marketing
Which "P" is responsible for getting the product into customers' hands?
Place (also called Channel Management).
Why is competition important in marketing?
It drives businesses to improve their products, pricing, and customer service
What happened with Kellogg’s Mini-Wheats promotion?
They falsely claimed their cereal improved kids' attention spans
Name the four types of market segmentation.
Geographic, demographic, psychographic, behavioral.
What is an example of institutional promotion?
Google promoting itself as one of the best companies to work for.
Which marketing function determines how much customers should pay for a product?
Price
Give an example of a company that uses market segmentation to compete.
PepsiCo with different soft drink varieties like Diet Pepsi, Gatorade, and Aquafina water
Why is misleading promotion risky?
It can damage a company’s reputation and result in legal consequences
Give an example of behavioral segmentation.
Marketing to sports fans based on their loyalty to a team.
What’s the difference between product promotion and institutional promotion?
Product promotion focuses on selling a product; institutional promotion promotes a business’s reputation
What does marketing-information management involve?
Collecting and analyzing data about customers and competitors
What is the advantage of mass marketing?
You can focus on producing one core product and appeal to a broad audience
Give an example of an ethical marketing practice.
A company being transparent about product ingredients or sustainability efforts
Why is market segmentation important?
It helps businesses target the right audience, reducing wasted marketing efforts and increasing sales.
What’s the difference between primary and secondary product promotion?
Primary promotes an entire industry (e.g., "Got Milk?"), while secondary promotes a specific brand (e.g., Hershey vs. Godiva).
Which P is the most recognized part of the marketing mix?
Promotion
What’s a disadvantage of mass marketing?
Competitors may target specific customer groups better, making their marketing more effective
What’s the risk of bad publicity in public relations?
Even though PR is “free,” negative publicity can be costly to a brand’s image