2.3 Marketing Flashcards
What is marketing?
The strategic process of promoting and selling products or services by understanding customer needs, creating value, and effectively communicating with the target audience
What is market research?
The process of collecting and analysing customer information
What is the target market?
A specific group of potential customers that the business aims to reach and serve with its products or services
What are the factors of a target market?
- Demographic
- Psychographic
- Behavioural
- Geographic
What is a demographic (in terms of target market)?
Characteristics such as age, gender, income level, education, marital status
What is a psychographic (in terms of target market)?
What motivates customers?
These factors include attitudes, values, interests and lifestyles
What is a behavioural factor (in terms of target market)?
Includes the purchasing behaviours, brand loyalty, usage rate and buying frequency of customers.
For example, will customers always buy from the same brands regardless of price? Will they buy weekly or monthly? Will they consume a product frequently or occasionally?
What is a geographical factor (in terms of target market)?
These factors involve the physical locations and regions where the target market resides.
Is it a rural area or urban area? Is it a hot climate or cold climate?
What is market segmentation?
The dividing up of the market into different groups of customers that share similar characteristics.
By doing this a business is able to determine which customers’ needs and preferences are likely to be satisfied by the product
What are the 4 P’s of marketing?
-Product
-Price
-Place
-Promotion
Why is finding the target market important?
It helps the business focus its efforts and resources on the people who are most likely to become customers
What are market segmentation dimensions?
Demographic
- Age, gender, income, education, nationality, occupation
Geographic
- Size of city, rural or urban, climate
Psychographic
- Lifestyle, personality traits, hobbies, attitudes, socioeconomic status
Behavioural
- Regular or first time user, purchasing frequency, usage rate
What is a product?
The physical product or service being offered to customers. It involves decisions about features, quality, design, branding, and differentiation. Businesses must ensure their product meets customer needs and stands out in the market
What are the product considerations?
- Branding
- Design
- Quality
- Packaging
What is branding and its aim?
Involves creating a name, design or logo that are recognisable and memorable. Stand out from competitors with distinctive brand name and logo
What is design and its aim?
Creating and developing a product that has the features need to fulfil its purpose. Features are able to fulfil the needs of customers
What is quality and its aim?
Degree to which the product fulfils its purpose without defects. Achieves customer’s desired quality and is reliable
What is packaging and its aim?
Designing what the product will be presented in – how customers will see it. Improve customer perception and stand out from competition
What is price?
The amount of money customers are expected to pay for the product or service. (Must consider: production, competition, perceived value of the good or service, and pricing strategies)
What are the price adjustment strategies?
Involves altering the price of a good or service to respond to changing market conditions, customer behaviours, or promotional objectives
What is a price adjustment strategy?
- Promotional pricing
- Psychological pricing
- Price matching
What are the 4 p’s of marketing?
- Product
- Price
- Place
- Promotion
What is promotional pricing?
Offering special deals or limited-time offers to create urgency and attract customers
What is psychological pricing?
Using pricing tactics that leverage consumer psychology, like setting prices just below a round number
What is price matching?
Matching competitors’ price to prevent customers from shopping elsewhere
What is place?
The distribution channels and locations through which customers can access the product or service. Ensuring that customers can conveniently access and purchase the products where and when they want.
What is direct distribution?
Involves selling products directly to customers without intermediaries
What is indirect distribution?
Involves using intermediaries like retailers or distributors to reach customers
What is promotion?
The various activities used to communicate and promote the product to the target audience. Effective promotion creates awareness, interest, and desire among customers, driving them to make a purchase
What are the types of promotion?
- Advertising
- Personal selling
- Direct Marketing
- Social Media Marketing
- Influencer Marketing
What is advertising?
Paid messages (typically broadcast through mass media) that aim to reach a wide audience and create brand awareness. Advertising can be in the form of TV commercials, radio commercials, print ads, banner ads & billboards.
What is personal selling?
Direct interactions between salespeople and potential customers. This approach allows for personalised communication and tailored product recommendations. Personal selling is often used for higher-priced products or complex solutions where detailed information is required such as cars and technological products
What is direct marketing?
Sending personalised messages directly to individuals through channels like email, direct mail, SMS, and telemarketing. It allows for one-to-one communication and can be highly targeted based on customer preferences and behaviour
What is social media marketing?
Leverages social platforms like TikTok, Facebook, Snapchat and Instagram to connect with the target audience. Businesses can share content, engage in conversations, and run targeted ad campaigns to reach users based on a business’s target market
What is influencer marketing?
An extension of social media marketing and advertising, influencer marketing involves collaborating with individuals who have a substantial following and influence in a specific niche. Influencers promote products or services to their audience, leveraging their credibility and reach
What is the psychology of advertising?
Using the science of psychology to understand how people think, feel, and behave to then create advertisements that capture their attention, persuade them to like a product or service, and ultimately encourage them to buy it
How can psychological advertising be used?
- Nostalgia
- Emotional appeal
- Creating a sense of urgency
- Humor
What is creating a sense of urgency in advertising?
Creating a sense of scarcity (limited availability) and urgency (limited time) in advertisements can trigger the fear of missing out (FOMO), driving consumers to take action quickly
What is using nostalgia in advertising?
Ads that tap into nostalgia (positive feelings of the past) can trigger positive emotions and help consumers connect with the past, often resulting in a more favourable view of the brand
What is emotional appeal in advertising?
Advertisements that evoke strong emotions—such as happiness, fear, or empathy—tend to be more memorable and can lead to a deeper connection with the brand
What is humour in advertising?
Humorous advertisements can create positive associations and make the brand more memorable, improving the likelihood of consumers engaging with the content
