Marketing I - 1.04

MARKETING STRATEGIES

The overall reason that marketing strategies are designed and implemented is to achieve goals. The goals and strategies may change frequently.

A business may be trying to increase their marketing share among competitors.

ACHIEVING PLANNED GOALS

The business’s goals and strategies for achieving those goals may change frequently.

Changing the business’s image, increasing its profits, or improving management techniques might be specific goals at any point in time.

NEW PRODUCTS

Before a company introduces a new product, it should determine if there is a market for the product.

After product is considered, the investors would have to think about how to price the new product, where and how it should be promoted, how to ship the product, and where it should be sold.

TACTICS

Because e-mailing a coupon is a specific action to increase short-term sales, it is a marketing tactic.

Marketing tactics are used to carry out the business’s marketing strategies, which are broader in scope and serve as “road maps” to achieve the business’s marketing goals. Pizza coupons are a marketing tactic.

TRENDSA trend is the general direction in which

people/events are moving. Businesses evaluate trends when

setting marketing objectives, determining marketing strategies, and executing marketing tactics.

“Is the current clothing trend more casual or more formal?”

UNFILLED DESIRE/FINANCIAL RESOURCES

To be part of a market, the customer must have an unfulfilled desire & be financially able and willing to satisfy that desire.

“Cannot afford a BMW, drive a KIA”

DEMOGRAPHIC SEGMENTATION

Gender, age, income, housing type, and education level are common variables. Some brands are targeted only to women, others only to men. Music downloads tend to be targeted to the young, while hearing aids are targeted to the elderly.

Education levels often define market segments. For instance, private elementary schools might define their target market as highly educated households containing women of childbearing age.

GEOGRAPHIC SEGMENTATION

Perhaps the most common form of market segmentation, wherein companies segment by attacking a restricted geographic area.

Regional differences in consumer preferences exist, and often provide a basis for geographic specialization.

For example, a picante sauce might concentrate its distribution and advertising in the southwest.

PSYCHOGRAPHIC & BEHAVIORAL SEGMENTATION

Psychographic segmentation groups people by lifestyles and personalities.

“Gerald is an NFL enthusiast.”

Behavioral segmentation groups people by their response to a product.

“Men send roses at Valentines”

REVIEW

45. What is the overall reason that marketing strategies are designed and implemented?

A. Improving management techniquesB. Achieving planned goalsC. Changing the image of the businessD. Increasing business profits immediately

45. Overall reason that marketing strategies are designed and implemented?

B. Achieving planned goals

46. Dennis has a great idea for a new type of tennis ball he feels would be better than any ball currently on the market. He pitches his idea to a few investors. Which of the four P’s should these investors consider first?

A. ProductB. PriceC. PromotionD. Place

46. Which of the four P’s should these investors consider first?

A. Product

47. Manny has an idea for a cleanser that would decrease the time in cleaning tiled floors. He thinks this product would be better than any cleanser on the market. Which of the four P’s should these investors consider first?

A. ProductB. PriceC. PromotionD. Place

47. Which of the four P’s should these investors consider first?

A. Product

48. To promote its summer menu, Danielle’s Café plans to e-mail a $5.00-off coupon to its regular customers next Tuesday. The coupon will be valid from June 1st through June 15th. What does use of the coupon represent?

A. TacticB. StrategyC. GoalD. Trend

48. What does use of the coupon represent?

A. Tactic

49. Highway 1 Restaurant allows customers the opportunity to enter drawings in order to win a birthday cake. Customers register by providing their contact information on a card. What does entering the drawing represent?

A. TacticB. StrategyC. GoalD. Trend

49. What does entering the drawing represent?

A. Tactic

A tactic is short-term. The drawing to win birthday cake is short-term.

50. Sue is a 12th grade student who loves the new Ferrari convertible which retails for approx. $300,000. She works part-time at the local movie theater and has approximately $150 in her savings & checking account. Is Sue a part of the market for the Ferrari?

A. No, she is not financially willing to purchase the Ferrari.

B. Yes, she has an unfulfilled desire for the Ferrari.C. No, she is not financially able to purchase the

Ferrari.D. Yes, she has an unfulfilled desire and is financially

able and willing to satisfy that desire.

50. Is Sue a part of the market for the Ferrari?

C. No, she is not financially able to purchase the Ferrari.

51. Which market do customers in cold climates who need snow shovels and snow blowers represent?

A. GeographicB. PsychographicC. BehavioralD. Occupational

51. Which market do customers in cold climates who need snow shovels and snow blowers represent?

A. Geographic

52. Which market segment do customers that prefer reasonably-priced recreational activities that include a variety represent?

A. GeographicB. PsychographicC. BehavioralD. Occupational

52. Which market segment do customers that prefer reasonably-priced recreational activities that include a variety represent?

B. Psychographic

Psychographic relates to the mind.

53. A business determines that it can increase its market share 12 % by promoting its goods and services to Hispanic females who are 18- to 34-years old. How is the business segmenting the market?

A. By geographicsB. By psychographicsC. By demographicsD. By behavior

53. How is the business segmenting the market?

C. By demographics