10. Finance function and marketing Flashcards
Marketing
Process of planning and executing the concepts of pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational needs
What is the difference between strategic and tactical marketing
Strategic: corporate strategy, long term, identify products and markets
Tacticial: focused on short-term, particular elements of the marketing mix
What is B2C and B2B
Business-to-consumer marketing - mass audience
Business-to-business marketing - professional buyers
What are the different forms of organisation orientation
Marketing orientation- organisation activities centred around customer needs
Production orientation: activities centred around producing goods at optimum quality cost-efficiently
Sales orientation: sales is key
Product orientation: focuses on product development
What is the push or pull methods of marketing
Push: pushing goods out to cutomers
Pull aproach: generating demand through adertising to pull customers in
What are the two types of digital marketing
Pull digital marketing: using media to pull viewers in eg.streaming
Push digital marketing: direct marketing eg. online adverts
What are the three levels of the marketing environment
- Macro: PESTEL ( political, economic, social, technology, ecological, legal)
- Micro: customers, suppliers
- Internal factors: assets, employees, fianance
How can macro factors affact marketing
Political: changes in government policy
Economic: Inflation, interest rates affect consumers propensity to save
Social/Cultural: demography , values
Technology: new products, processes
Ecological: climate change, consumers attitudes
Legal: customer rights
What is SWOT analysis
Strengths: areas of organisation that should be exploited by strategies
Weaknesses: areas for improvement
Opportunities: what profit making potential is there
Threats: what are the risks and how will it affect
Define marketing mix
Consist of the 7Ps
- Product, price, place, promotion, people, processes, physcial evidence
- Activities that form a part of marketing strategy
What is the meant by product of marketing mix
Whether product meets customer needs
How are products broken into
Consumer goods: Sold directly to person using
Industrial: goods used in production of other goods
What are the aspects of price in marketing mix
price setting is based on 3CS:
- Cost
- Competition
- Customers
What are the disadvatages and advantages of using cost to price set
Advantages: reliable, price stability
Disadvantages: does not consider demand, reative rather than proactive strategy
How is competition used to price set
- competition can be price or non price based
- Goin rate pricing - prices are based on average market price
- Price based competition: agreements between companies
- Competition is based on product rather than pricing
How are customers can be used in pricesetting
- Price determinent: elasticity of demand
- Strong demand: higher price
What is price differentiation or differential pricing
Pricing strategy where the company charges different prices for the same product to different customers
What are other pricing strategies
- Perceived quality pricing: customers judge quality by price
- New product pricing: new products have no pricing reference point so based on the recommended price to the reseller
- Multiple products: focuses on profit as a whole from range rather than a single product
- Market penetration: low price for a product to stimulate the growth of market
- Market skimming: the high initial price for a new product which is gradually reduced
- Early cash recovery: The organisation aims to recover investment quickly when the business is at high risk
- Dynamic pricing: prices change in line with demand
- Target pricing: The organisation selects a price that gives a specific return
- Price leadership/predatory pricing: price leader has a large market share and dominates price levels
- Captive product pricing: customers buy two products one cheap and one higher when they are captive
- Psychological pricing: eg. 99p, not £1
When is market penetration relevant
- When unit costs fall with increased output: economies of scale and experience curve
- The market price is sensitive and relatively low prices will attract new sales
- Low prices discourage new competitors
What is meant by place in the marketing mix
- Channel: where will products be solf
- Logistics: to support where product will. be sold
What is meant by promotion in the marketing mix
- Communication and marketing to make customers aware of products
- AIDA
A: arouse attention
I: generate Interest
D: inspire desire
A: initiate Action
What is meant by processes in the marketing mix
- Service industry - efficiency in processes increases customer satisfaction
- Eg. automation of processes, queuing and waiting times, accessibility
What is meant by people in the marketing mix
- Role of people is important due to the inseparability of employees from the service provided
- Front line staff should be trained in customer satisfaction
What is meant by physical evidence in the marketing mix
- Services are intangible: the customer has no evidence of ownership
- By making customers have psychical symbols of the service - symbolic of service
What are features of the service industry’s which require special attention of marketing
- Intangible outputs
- No storage: services cannot be stored so demand is important ‘under sell and over-perform’
- Heterogeneity: maintaining consistent service
- Inseparability: importance of employees
- No transfer of property
What is meant by promotion mix
Consist of the blend of promotional tools that are considered appropriate for a specific marketing campaign:
- Mass media
- Personal and interactive
- Personal and direct
What is meant by market research
Process of gathering, recording, analysing and reporting information relating to company’s market, customers and competitors
