Marketing
what are the 4Ps of marketing
promotion, place, product, price
what are the elements of the promotional mix
sales promotion, public relations, direct marketing, personal selling, advertising
define product positioning
Refers to how a product/service is perceived in comparison to its competitors and the specific niche it occupies in the market.
define overhead costs
Overhead Costs: Expenses that a business pays to keep itself running that are not involved in the generating of a product (Ex. Utilities, Rent/Mortgage, Salaries, Insurance, Office Supplies, etc
what does the acronym PESTEL stand for?
political, economic, social, technology, environment, legal
define place as a function of marketing
refers to distribution channels and locations that the product available is to customers
define AIDA
awareness, interest, desire, action
Define unique selling proposition (USP)
Concise statement that defines what sets your business apart and better from competitors and explains why customers should choose your product or service over others.
how does pricing influence perception of value?
Customers tend to pay higher prices for products that they believe are of higher value. Since customers believe that the higher value better suits their individualized needs, they are more willing to accept a higher price.
what are 4 factors affecting profit
Price charged for product/service
Quantity of product sold
Variable costs (labour, materials)
Fixed costs (rent, overhead)
what are four influences or buying behaviour?
cultural (religion, values, traditions)
social (family, friends, peers)
situational (time, mood, enivornment)
individual (age, occupation, lifestyle)
differentiate between personal selling and direct marketing
direct marketing: communicating with the target market directly by eliminating the middleman such as a third party media channel
usually online, automated, standardized (targeted ads, influencer promotions)
personal selling: 1 to 1 communication between a salesperson and a consumer where the salesperson attempts to influence buying behaviour
usually in person/interactive, flexible, adaptive (door-to-door sales, car dealerships)
define corporate branding (3 points)
1) the practice of using a company’s name, logo, and other visual elements to create a recognizable identity for the company
2) Creates brand recognition, familiarity, and trust
3) Corporate branding spreads a unified message across all of the company’s marketing effort -> one marketing campaign can also be used for multiple products
describe 2 challenges in pricing in h&t
Perishability → Unsold hotel rooms/flights can’t be “stored” for later (once they are gone they are gone, ex. You can’t sell tickets for a flight that has already departed), pricing must optimize occupancy
Competition → Price wars can erupt in crowded markets (ex. Budget airlines undercutting rivals)
state 3 internal factors affecting the business environment
(any three)
organizational structure and culture
leadership style
human resources (employee skills, productivity)
financial resources and capital
company mission, vision, and objectives
technological infrastructure
internal operations
list maslow's hierarchy of needs from bottom to top. define or state an example for each level.
physiological (food, shelter), safety (health, employment), love (friendship, family), esteem (respect, feeling of accomplishment), self actualization (achieving one's full potential)
differentiate public relations and publicity
Public relations: the process in which a business manages information to the public to build a positive image and attract more customers
Paid and planned form of promotion controlled by the company
Publicity: any information presented to the general public in the media that has the potential to change public opinion of a brand
Free media coverage not controlled by the company
what are 3 activities included in product service management
1) developing new product
2) monitoring and improving the success of existing products
3) eliminating obsolete products
Define price skimming
Companies initially introduce a product at a high price; when competitors begin entering the market, the prices are drastically reduced.
define the law of supply, the law of demand, shortage, and surplus
Law of supply: as supply increases, price decreases and quantity increases
Law of demand: as demand increases, price increases and quantity decreases
explain maslow's hierarchy of needs and how it is used in marketing (3 points of significance)
1) Human motivation stems from a hierarchy of five fundamental categories
-> unmet needs take precedence
2) Once lower-level needs have been met, people can move on to the next level of needs
3) Marketers use the pyramid to determine which need the product/service provides and how to effectively appeal to those motivational drivers
Define:
1) proof
2) velox proof
3) press proof
Proofs: Preliminary versions of documents/images for review before final production.
Press Proof: Most accurate and expensive, used for final approval.
Velox Proof: Less accurate, black-and-white, used for initial checks.
explain the product mix and why companies use them
Length: refers to the total number of products in a firm’s product mix
Depth: refers to the assortment of products within product lines.
Ex. soup menu → broccoli soup, french onion soup, tomato soup, bowls, spoons
Width: product lines - a category of related products with similar functions, pricing, target markets, and follow similar distribution channels
ex. soup menu, salad menu, sandwich menu, catering, delivery
Companies want to offer at least a few products that suit the multitude of customer preferences, so they’ll return for those loved items. Helps businesses fulfill the demand of their customers by analysing their product offerings
1) define price fixing
2) state 2 acts associated with price fixing
Price Fixing: competitors cannot collude to set prices
- hotels agreeing to charge the same rates
Clayton Antitrust Act
Sherman Antitrust Act
explain monopolistic competition (3 points of significance)
1) definition: market where there are many companies that compete with one another that all offer products that are similar yet have slight differences in order to attract consumers
2) most hospitality businesses fall under monopolistic competition
3) firms that fall under monopolistic competition have low barriers to entry and are price takers (market determines the price) that generally have to follow the current trends of competing business