20. Marketing Flashcards
How did Kotler define marketing?
- The science and art of exploring, creating and delivering value to satisfy the needs of a target market at a profit.
- It identifies unfulfilled needs and desires.
- It defines, measures and quantifies the size of the identified market and the profit potential.
What is the product-led approach?
Assuming you will get customers because of the quality of your product
- It may be too expensive
- Maybe nobody is interested in the product, regardless of quality
What is the sales-led approach?
- Emphasizes selling what you have even if customers don’t want it
- Need skill in persuasion
- Might make people sign contracts they later regret
What is the marketing-led approach?
Looks to find what customers:
- Want
- Appreciate
- Are willing to pay
What is a maxim of the marketing-led approach?
The customer knows best
What is market segmentation?
Looking at how a market can be split up into segments or sections
What are some common sections to split a market into?
- Age
- Sex
- Lifestyle
- Wealth
- Geography
What is the point of market segmentation?
Can design products specifically for each segment of the market
What is product positioning?
Targeting a section or sections of the market
Who proposed the original marketing mix (with only Four P’s)
McCarthy
What are the Seven P’s of the marketing mix?
- Product
- Price
- Promotion
- Place
- People
- Process
- Physical evidence
How do carry out product positioning?
By adjusting the marketing mix
Describe product in relation to the marketing mix.
What are the features of the product?
Includes:
- Quality
- Design
- Brand
- Packaging
Describe pricing in relation to the marketing mix.
- The price of the product (price level/price point)
- Discounts for bulk buying
- Terms of payment (how much time customers have to pay)
- Take into account price of competition.
Describe promotion in relation to the marketing mix.
Four main types:
- Advertising
- Sales promotion
- Personal selling
- Public relations
Categorized into:
- Push promotion (pushing product to customers eg personal selling)
- Pull promotion (encouraging public demand eg advertising)
Describe place in relation to the marketing mix.
- The place you buy the product
Consider: - Length of distribution chain
- Suitability of outlet
Describe people in relation to the marketing mix.
Providing services requires having the right people with the right attitude.
In manufacturing, customers may never meet employee
Describe process in relation to the marketing mix.
The process by which product is aquired
Describe physical evidence in relation to the marketing mix.
Shows that the service is going to be provided. Eg via email
