3.1 Role of Marketing Flashcards
What is the role of marketing?
Ensures bus’ products meet customer needs with management to build customer loyalty and by organising bus’ resources
What is market orientation
Developing product/service by focusing on customer needs by identifying them through market research (4Ps)
What is product orientation
Firm designs product independently of known customer needs; uses marketing to convince customers to buy product (more product quality concerned)
What is customer loyalty
When customers make repeated purchases even when price rises; don’t turn to competitors
What does customer loyalty aim to do (2)
- build relationship w customers
- communicate regularly to encourage repeat purchases
e.g promo emails, deals/offers, rewards, positive brand image
Successful marketing involves? (3)
- seek 1st-mover adv
- adding value
- create USP
Facts about 1st mover adv
- being 1st w new product —> achieve much greater success (gain customers first)
- 1st to meet new/previously unrealised customer need
- anticipate future market trends
Market changes helps you do what? (3)
- be aware of consumer spending habits
- understand current spending patterns to predict new ones —> comp adv
- fail to spot sales fall —> bus fail
Market changes factors? (3)
1) economy (recession=cheaper/better-value products; growth= luxury items)
2) technology (patterns reflect current tech eg phone)
3) fashion (trends)
Individual consumer market changes factors? (3)
1) age
2) life stage (DINKIES- luxury)
3) income
How to respond to changing patterns? (4)
- adapt new products
- launch new products
- sell current products to new markets
- close unprofitable products/locations
Why is it important to respond to changing patterns?
To remain competitive & gain comp adv- can lead to failure if not spotted :. Vital for long-term success
Mass market definition
Bus Seles same product to all customers in same way; customer numbers= huge, bus produces large quantity but lots of comp exists
5 factors of mass marketing?
- aims for high sales volume @ low price
- attempts to appeal to entire market w/ 1 basic marketing strategy
- similar customer needs across market
- wide sales outlet range/ wide availability
- extensive promo
Adv of mass marketing?
Econ of scale (average production, marketing, distribution cost= low when products sold in large volumes
2 disadvantages of mass markets?
1) products may not be suitable for sale in all counties (prefer product specific to needs)
2) mistakes w/ product= high costs (production volume)
What is niche marketing?
Selling goods to small, clearly identifiable market segments, products= highly differentiated
5 factories of niche marketing?
- premium prices
- small sales volume
- high skill base (expertise/skills shown clearly)(hard for large comp to find skilled labour)
- specific promo to attract target
- outlets clearly reflect image
6 advs of niche marketing?
- less comp (small market)
- clear focus on small target group (marketing= cheap & accurate)
- firm becomes expert in segment
- usually attract premium prices
- high customer loyalty
- high profit margins (often)
4 niche marketing disadvantages
- few econ of scale
- over-dependence on 1 product/market risk
- threat of comp (due to small market size)
- vulnerability to market changes (limited resources/product, smaller)
Differences b/w niche & mass marketing (5)
- sales volume
- selling price
- promo style
- econ of scale
- similar/ diff customer needs
Check notebook for comp markets
Exits when there’s a wide range of products/supplies for customers
Purpose of market segmentation?
Develop products/market strategies appealing directly to specific M.S.
What does market segmentation aim to do
- differentiate products/ market them effectively
- discover potential customer info through market research
5 factors effective marketing consists of?
- uses market budgets effectively
- target market campaigns accurately
- identify market & new opp gaps
- differentiate products from comp (allow charging high prices)
- know/understand segments—> more likely to succeed
3 types of market segmentation?
geographical, demographic, socio-demographic
What’s geographical segmentation?
Segmentation according to area they live in (broad/specific eg cities/high crime rates)
What’s demographic segmentation
Age, gender, ethnic group, fam characteristics, edu, occupation
*broadest method, wide range of diff criteria
What’s socio-demographic
A- upper middle class B- middle class C1- lower middle C2- skilled working class D-working E- poorest in society
