BMI Marketing Exam

By Daniel Hicken

UNIT 1 - Marketing Fundamentals

What is Marketing?

When people attempt to promote or sell their product or service. Generally Business people that are trying to earn a reputation or profit. Marketing can be found almost everywhere you look. Everything that is popular or has high profit, the company responsible had to plan a lot of marketing to promote and sell to get where they are at.


Goods vs. Services

Goods are objects that people pay for. An example would be a video game, or a car. People would buy goods if they needed entertainment, transportation, or other similar needs. Services are actions that people pay for. An example of a service could be a car wash, or an oil change. People could buy services if they need a repair, upgrade, something done with one of their goods they purchased before, or other similar reasons.


Industrial goods are



Marketing Activities

1. Research

This would help a company learn about the market, and learn how to make a better product for their next version.


2. Product Development

Where the manufacturer or company making the product, perform beta test. This would be where they make sure the product that they are developing meets the Consumers needs and wants, so that they can make a product people want or need to buy.


3. Packaging

The package must provide protection to the product being sold, so they can arrive at stores still in one piece. (unless its a puzzle haha.) The packaging also acts as a way of promoting the product. If your product and your competitors product are side by side in a store, chances are the better packaging will attract their attention more and possibly lead to the final sale.


4. Pricing

You want to decide whether you are going to put a lower price than your competition to try and steal their customers. Or if you are going to make your pricing more expensive but offer a more premium product.


5. Branding

Some key components of Branding would be, your companies logo, slogan, and package design. You want to create a simple, creative logo that people will remember, and that matches your company name or products that it sells. You want to have a slogan that is preferably seven words or less, and is catchy, such as "Im Loving it." (McDonalds)


6. Distribution

This step is very important as you want to keep the price of distributing your product very low, so that you can have a higher profit, or keep your prices low.


7. Inventory Management

Retailers must make sure that they have enough products in store, to meet the customer demand, but not too much where they over spend on the getting the product in store that they sacrifice profit because of it.


8. Storage

Products need to be maintained and stored until they are needed, ordered and shipped by a customer or retailer. This may be done my a manufacturer, distributor, or retailer.


9. Promotion

You need to be able to promote your product, to make customers and consumers aware that your product or service exist. This is a very important step, because without it, customers would not even purchase your product as they would not know that it is out there.


10. Sales

You need to be able to convince potential customers that that purchasing your product/service is a good idea, and that it will help them.


The Marketing Mix 4P's/2C's

4P's (Product, Place, Price, Promotion).

1. Product

The Object or service that is being sold. (Ex; Beats by Dre.)


2. Place

Where the object or service is being sold, or found. (Ex; Best Buy.)


3. Price

The price range. (Ex; $219.99 - $449.99.)


4. Promotion

The Form of advertising being used, or sponsorship. (Ex; "Sound really Matters.")


2C's (Consumer, Competition).

1. Consumer

Who the Typical Customer or consumer is. (Ex; People who like music and above average income.)


2. Competition

a) Direct Competition; is a company that is selling the same product or something similar. (Ex; Bose Headphones)

b) In-Direct Competition; is a company that is selling a product that is not the same or un-similar, how ever is still competing with it. (Ex; iPod.)


Marketing Strategies

This is the selected method by the company that will attempt to carry out their plans to achieve their goal.

Satifaction - Cost = Brand Value


Distribution Strategies

a) Push; When the company does little advertising, and sticks the product in your face at the store, your thought of buying that product is almost instant on the spot, while you were looking to buy something else.


b) Pull; When the company wants you to know your buying it before you actually do. often lots of advertising, and you decide you want to buy it, then you go hunting for that product.


Product Flops

Products flop for different reasons. There are several reasons why some products flop and some excel. One reason that your product could have flopped is because you didnt promote it right, or the customers didn't want it. You could have priced your product too high, or too little quality.

UNIT 2 - The Consumer

Consumer Needs and Wants

- Consumer compared to Customer. A Consumer is the person who uses the object or service, and a Customer is the person in whom pays for the object or service.



- Gatekeeper. When the consumer is too young to purchase the product, such as a child or baby. Their parent or guardian/whomever buys for them, is known as their gatekeeper


- Consumer Buying Behaviour. Consumer behaviour is based around how the market interacts with the psychology of the person buying the product. This psychology includes their attitude, culture, previous learning and personal perceptions.

Product life cycle

1. Introduction

The product is newly launched into the market. Very expensive at this stage, as you could need to set up new machines. Customers or consumers in this stage are known as trendsetters.


2. Growth

The Product is more visible to the media and public. This is the stage that the product will succeed or fail. The company that enters this will have to pay the most expenses, however get the advantage of no competition for a bit.


3. Maturity

During this stage, sales increase more slowly. The expenses in this stage is a lot lower, therefore the profits are high.


4. Decline

Generally where new customers are harder to find, and sales decrease. This can be turned around and make a big increase if the company decides to release a new version.


5. Decision

The company decides whether to drop the product or try to keep it alive. Most often this would mean new promoting and new pricing.

Customer Profiles

A group of people that are most likely to purchase a specific type of product.



a) Cohort; This is a group that shares common characteristics, and buying habits.

b) Primary/Target Market; The most likely consumers.

c) Secondary Market; Other consumers.

d) Demographics; The study of obvious characteristics that can then categorize people.

e) Psychographics; People being grouped by beliefs, fitness, and other similar items.

f) Geographics; A group based on where the customers live.

Consumer Motivation

Consumer Motivation can be biological, emotional, rational or social force.



Three examples of Consumer Motivation theories are;


1. Thorndike's Law of Effect

Several responses that are made to the same situation.


2. Malsow's Hierarchy of Needs

A pyramid which levels what is needed more to live. To have everything on the top level, you need everything on the level below it first, and so forth.


3. Alderfer's ERG Theory

Similar to Maslow's theory, however this is categorized into three sections. Existence, Relatedness, and growth.


UNIT 3 - Product

Invention vs Innovation

Product Development; Addressing the customers/consumers wants and needs. In this step the Marketing team and the production team often team up.



Feasibility; The company needs to ask themselves two important questions, "Can we produce it?" this is something that the production team needs to answer. The second question would be "Can we sell it?" The Marketers would need to answer this, what price is it going to be sold at? and so forth similar questions.


Product Development Stages

1. Idea Generation

This is an idea that is currently not available on the market.


2. Idea Screening

Not all ideas are good ideas. Ask others, see what other people think, and judge if its a good idea or not.



3. Concept Development

If you have received positive feedback, make a prototype. This will let you see if the product works.


4. Market Strategy

Determine what strategy to use, and decide on your 4P's.


5. Feasibility Analysis

Decide if you sell this product, can you make it, and will you be making money doing so?


6. Product Design

Thinking what the product will look like.


7. Test Market

You need to test the acceptance of the product in public. Offer the product to a random sample of people to get their feedback.


8. Market Entry

This is where the product officially enters the market and is sold to everyone.

5

Product Utility

1. Form

This is the product look, and what it does decides on how it will look.


2. Information

Need to let the consumers how to use the product. This can be done with a manual or a online website. Inform the customers info about the product.


3. Place

Where the product is available.


4. Time

You need to have the product available when the customer wants it. Nowadays some stores are open 24/7 because of this.


5. Possession

This is how easy it is to purchase product.

Product Development and the Marketing Concept

You must be able to consider the consumer and competition.



a) Product Mapping; You need to group products in a category. You can create an two way axis X and Y. In this axis you label each one like a chart, and place items on it.



b) Market Opportunity Analysis; you can start by identifying the category that the product is found in. Followed by, adding other products that fall in the same category. you then need to do this for indirect competition as well. Then compare your product with your direct competition.


c) Benefit Analysis; Identify what features the consumers value the most, and how much they are willing to pay for it.

Product Positioning

1. Benefit; Trying to convince the customers that your product will benefit more than the competitors.



2. Target; Need to focus on the consumer that is likely to buy it.


3. Price; you can use a high price to position your product as Luxury. Low pricing can be used to position it as the more affordable product.


4. Distribution; You can position your product by the way it is distributed, for example if it is only sold in specific stores or locations.


5. Service; You can position your product with a luxury service, such as your store is open 24/7, 7 days a week, or that it has a money back guaranteed.

Branding Strategies

1. Successful Brands; These brands keep their promise, your brand needs to stand out and portray a positive image. Short, simple and easy to remember.


2. Logo/Slogans; Small colour palette, Easy to read font, original, and needs to show your companies personality.


3. Brand Strategy; You need to have new packaging, a new target market.

Product Packaging

1. Consolidate; This is the main reason for packaging, it makes it easier to ship, store and display.



2. Protect; Protects products from breaking, so that they are still in one piece when the consumer gets it.


3. Inform; Need to put information on the packaging that is required by the law. Such as the Nutrition facts on food and drinks.


4. Brand Identification; The packaging needs to be able to identify the product, that is original and stands out.


5. Promotion; The packaging needs to be able to promote itself. You can state that it is environmentally friendly.

UNIT 4 - Competition

Introduction to Competition

Competition makes the products better as each party is always trying to beat, and outsmart their competition. Companies will add in services and lower prices. Theirs always someone out their that think they can do it better, so they try to join in. This in return makes the original party improve their product to stay on top.


Canada encourages competition because it makes the products better.


Some types of competition are;

1. Perfect

2. Monopolistic

3. Oligopoly

4. Monopoly


Sustainable Competitive Advantages

1. Direct vs. Indirect competition

2. Sustainable Advantages

a) Unique Selling Proposition

b) Lowering Costs

c) Servicing a Niche

d) Creating Customer Loyalty


Non-sustainable Competitive advantages

1. Promotion

2. Placement

3. Quality

4. Benefits of Use

5. Price

6. Design Features


Service Competition

1. Convenience

2. Degree of Service

3. Selection

4. Reputation

5. Price


Market Share

1. What is a market (broad vs. Narrow)

2. Market Share

3. Increasing Market Share

4. Market Leaders

5. Market Challenges

Unit 5 - Promotion/Advertising

Importance of Promotion – influence

1. Brand Awareness and positioning

2. Brand Trial

3. Brand Preference

4. Brand Reminder

5. Brand Repositioning

Message Appeals

1. Promotional Process

2. Message

3. Marketing Appeals

a) Biological

b) Emotional

c) Raional

d) Social

Media Factors

1. Promotional Process

a) Intent/Message/Media/Reception/Action

2. Advertising

3. Determining Which Media to use / Media Analysis

4. Factors used to Determine Media

a) Reach

b) Frequency

c) Selectivity

d) Durability

e) Lead Time

f) Mechanical Requirements

g) Clutter

h) Costs

If you are reading this, i did not get to finish the entire exam on time for the scheduled due time. OR it is currently before the deadline and i am still working on it.