Business Exploration Marketing Study Guide What is Marketing? The process of creating, promoting and presenting a product or service. What is a Target Market? The group of consumers most likely to buy a product. What do Marketers do? 1) Develop Products – From idea to shelf 2) Gather Information – Competitors, Consumers and Trends 3) Pricing – How much to charge for a product 4) Selling – Relationship Marketing (Business card in China) 5) Distribution – How the product gets to the store (Plane, Truck, Train) 6) Promotion – Advertising the product 7) Product Management – Updating what is available at stores What is the Marketing Mix? Basic strategy of Marketing Product – Design, color, size, name, packaging Place – Where the product is sold Price – How much does the product cost Promotion – How will you advertise the product? What are the 2 Main Types of Market Research? 1) Survey – Activity Night results analyzed with charts 2) Focus Group – Talking to the potential target market about a new product Results are analyzed by demographics (age, gender, income, location) What are the 7 Steps of Product Development? 1) Generate Ideas - Brainstorming 2) Pick Idea – Product Extension (New version of an existing product) 3) Business Plan – Overall strategy for the product 4) Make Product – Prototype (sample of product to check quality, size, color, etc) 5) Test Market – Sell product in a limited market for a limited time (food) 6) Introduce Product 7) Evaluate – Check to see if results match target market What are the 8 Main Forms of Media Used to Advertise? Newspapers (P – Target by location, C – Not read much) Magazines (P – Best to reach target market, C – People skip ads) TV (P – Most popular, C – Most Expensive) Yellow Pages (P – Good for small businesses, C – Most people don’t use) Direct Mail (P – Target by location, C – People throw out) Radio (P – Target by station, C – Can’t see the product) Online (P – Target by website, C – Ads getting annoying) Outdoor (P – Target by location, C – Can’t explain technical products) What is Brand Awareness? The ability to recognize a brand without knowing the company’s name Why do Logos, Slogans and Mascots not change much over time? So consumers do not get confused Which one does change and why? Slogans, to tell people something new about a company .