Unit 4 Review: Marketing and Logistics

Power Point 1:

 What is marketing?

All activities involved in planning, pricing, distributing and selling of a product or service.

 What are the 5 major marketing activities?

The 5 major marketing activities of business are Promotion, Advertising, Market Research, Sales and
Distribution.

 What are the goals of marketing?

Attract new customers by promising superior value. Keep and grow current customers by delivering
satisfaction.

 What are consumer Needs and Wants?

Need: State of felt deprivation including physical, social, and individual needs. Physical needs: Food,
clothing, shelter, safety social needs: Belonging, affection Individual needs: Learning, knowledge, self-
expression

Want: Form that a human need takes, as shaped by culture and individual personality. Wants + Buying
Power = Demand

 What is the marketing process?

Identify customer needs, Satisfy customer needs, Maintain customer loyalty, Gain information about
customers, and Anticipate changes in customer needs.

 Companies must consider…

Companies must consider Employees, Stakeholders and Society

 What is a market?

A MARKET IS: A PLACE OR MECHANISM WHERE BUYERS AND SELLERS WOULD MEET TO ENGAGE IN AN
EXCHANGE

 Two types of markets

Consumer Market: Markets for goods and services bought by the final user of the item

Industrial Market: Markets for goods and services bought by businesses to be used in the production
process of other products

 Understanding the consumer market

For any business, having information about who your customers are, their behavior, location, habits and
so on is important in planning and marketing. There are 2 types of consumer markets: Niche and Mass
Markets.
  What is a mass market?

Appeals to a large part of the market. There markets are for items and companies that have no
restrictions. For example, Coca-Cola is a mass market because they can sell Coca to a 90-year-old person
and a 5-year-old there are no restrictions on their product.

 What is a niche market?

A niche market is the subset of the market on which a specific product is focused. The niche Market
defines the product features aimed at satisfying specific market needs, as well as the price range,
production quality and the demographics that it is intended to target.

 Market segmentation
o Demographics

Basic statistical information about a person: This includes age, race, gender, and other very basic
information about a person.

o Geographics

Location: This can include targeting certain cities, climates, regions, etc.

o Psychographics

Attitudes, lifestyles, and other psychological information: Examples include exercising often, being very
outspoken, enjoying the outdoors, etc.

o Buying behaviors

Any pattern of purchases for an individual. Examples can include shopping at the same store, buying
items online, shopping on the same days or times each week, etc.

 Marketing Management

Marketing managers must consider the following:

to ensure a successful marketing strategy: 1) What customers will we serve? — What is our target
market? (Who to advertise to? Mass? Niche?)

2) How can we best serve these customers? - What is our value proposition? (The set of benefits or
values a company promises to deliver to consumers to satisfy their needs)

Power Point 2:

 Need/Want Fulfillment: The idea of fulfilling customers’ wants and needs through the marketing
process of your company. This is one of the fundamental principles of marketing.
 What are the 4P’s: Product, price, place, promotion.
 What does product mean: It refers to what you are selling. This is what the customer would
want and need.
 Product design: Should be up to date with new technologies and should appeal to customer
needs. It should attract the customers quickly and persuades them into buying the product.
  Product differentiation: giving a product an exclusive feature or difference that sets it apart
from other similar products. Whenever a product offers something unique it means it has a
unique selling point.
 What does price refer to? Price quite simply refers to the price of the product you are selling. It
has to make people think they are buying the right quality for their money.
 Law of demand, law of supply: Law of demand means the more you lower the price of a
product, the more people are going to buy it. Law of supply means that the more you charge
you charge for a product, the more profit you can make which in turn increases the amount of
the product you can manufacture and then sell.
 Pricing strategies: Competitive pricing. This refers to pricing your products similarly to other
companies. Penetrative pricing is when you set the price very low to get into the market for the
first time. Cost plus pricing. Promotional pricing. This is a short term pricind method to gain sails
very quickly. Lower pricing.
 What does place refer to? Both the place where the customer locates and buys the product.
This is important if he product is very far from your customer base. It also refers to the channel
of distribution, the way the product gets there.
 Channels of distribution direct channel. Retail channel. Wholesale channel. Agent channel.
 Methods of distribution vs channels of distribution: Methods = where to get the product.
Channels of distribution = how does it get there.
 Distribution choices
 What does promotion involve: persuasion and information.
 Above vs below the line methods: Above: TV newspapers, ads, internet, PR public relations.
Below: price reduction, special offers, free samples, point of sale,

Power point 3:

 What is a brand

Name, term, sign, symbol or design or a combination intended to identify the goods or services

 What is the target market

Target Market: All marketing efforts directed at a specific group of consumers that the marketer
wants to attract (and ultimately sell their product or service to)

 3 major marketing strategies

o Centralized vs decentralized

In a centralized marketing structure there is a single marketing team whereas in a decentralized

structure there are separate marketing teams that report into different business units.

o Push vs pull

Simply put, a push strategy is to push a product at a customer, while a pull strategy pulls a customer
towards a product. Push strategy is a quick way to move a customer from awareness to purchase,
while pull strategy is about creating an ongoing relationship with the brand.

o Brand acquisition vs development

Brand development is a strategic process of creating and distinguishing your company's image,
products and services from your competitors whereas Brand acquisition involves a firm's acquisition
of an existing brand offered in the market by another firm.

 Factors to consider

Economic Factors, Consumer data, and Consumer motivation

 Global consideration

The country/market must have an economy that provides an income to its people. Marketers must
consider wages and prices. These are a few of many global considerations buisnesses have to make

 Market research

Purpose is to gain valuable information about your customers: How much they would pay for
products, What type of product they need/want, How to make your product more desirable, etc.

 Problems of market research

Before the marketer begins to organize the marketing mix, they should ensure the data is valid. This
also happen as a result of the type of data it is based on Secondary Data – (collected by other), and
Primary Data – collected directly from the marketplace.

 Product vs market oriented

Product oriented: creates a product first then does market research to figure out who will buy it.
(shark tank)

Market oriented: Does their market research first to find out what customers need in terms of a
product, then create a product.

 Consumer profiles

A consumer profile is another method of understanding the consumer and can help us understand
things like:

Demographic: Age, Gender, Family Lifestyle,

Purchasing Profile: who purchase, when where & how

Motivational Profile: Thorndyke’s Pleasure/Plain Theory, Maslow’s Hierarchy of Needs,

Rational/Emotional Theory.

 Consumer motivation

Physiological: hunger, thirst, shelter, warmth.

Safety/Security: freedom from danger, adequate financial support.

Relationships / Affiliation: belonging to teams and clubs; having friends, love relationships, family
ties.
Esteem: celebrating personal achievement; being successful and admired by others

 International marketing plan

Is a plan put in place by a marketer about an attempt to market their product outside their own
country and into a different market.

Power point 5: logistics

 Logistics

The management of the flow of goods and services both into and out of an organization, from the point
of origin to the point of consumption. It consists of transportation, inventory management, warehousing
and storage, and packaging.

o Production logistics

Production Logistic: Logistic processes within a company, usually a manufacturing business, that ensure
that each machine and workstation in a plant has the right material in the right quantity and quality at
the right point in time.

o Business logistics

Business Logistics: A process that ensures a steady flow of needed materials and information to all
parts of a business through a network of computer terminals, transportation links, and storage
facilities.

 What is the supply chain

Supply chain: The sum total of all activities involved in moving raw materials, processed goods, and
finished products into an organization, and moving the semi-processed or finished goods out of the
organization toward the end-consumer.

 Vertical integration

Vertical integration: A form of business organization in which a company owns the whole supply
chain, or significant portions of it, from acquisition of raw materials to retailing.

 Horizontal integration

Horizontal integration: A method of expanding a company by acquiring its competitors.

 Main links in the supply chain

o Inventory management

For retailers, this requires a system that records sales. Usually a point-of-sale terminal, a system that
tracks retail sales by recording the code or stock number of each stock-keeping unit (SKU).

o Storage

Four possible locations for the storage of goods: Place where the goods are made, Warehouse,
Distribution centre, and Place that receives the goods
 o Cash flow

Cash-flow management Involves negotiating payment terms, setting up the method of payment, and
arranging exchange of funds across the supply chain.

o Supplier management

Often referred to as sourcing or procurement, the practice of finding reliable sources for the products
and services that a business needs.

 Sourcing

Outsourcing: The strategic use of outside resources to perform activities that were previously handled
internally by the company itself.

Nearsourcing Sourcing: particular business functions or services, such as telemarketing, to a company in

a foreign country that is relatively close in distance.

Insourcing: A company’s establishment of a specific division within the business, such as an advertising
department or customer call centre, to handle a function that is normally outsourced.

 Off vs on shoring

Offshoring: The transfer of certain business functions by a company to a branch of the company that is
located in another country, usually to save on labour costs.

Onshoring: A company’s contracting out of a function to other businesses within its own country, for
example to another state or province where labour is cheaper, or facilities are better.

 Information management

Each member of the supply chain requires instant access information, and all members need to be
networked to the same information source. This requires information management.

 Physical distribution

Inbound distribution : The process of receiving goods that are sent to a company.

Receiving process: The established system that a receiving manager uses to monitor and track goods
arriving at a business. This process normally includes: inspecting containers for obvious physical damage,
making sure that all of the containers have arrived, assigning stock numbers (SKUs) to new items, and
recording the location of each item (for example, warehouse, selling floor).

 Outbound distribution vs Ex Works

Outbound distribution: The process of arranging the shipment of goods from a company to its
customers. Normally, the seller is responsible for for arranging the shipment of goods to the buyer.

Ex Works (EXW): Term of sale that indicates that the buyer is responsible for carrier selection, customs
documents, and all charges.

 Methods of physical distribution

Methods are Motorized carriers—trucks, vans, motorcycles, Rail, Ocean freight, air freight,
containerization etc.