7.2-7.3 Flashcards
What is product differentiation?
When products ( goods or services ) that are the same or similar are made to appear different from and/or better than those of their competitors,
Factors which differentiate products?
1) Customer Service
2) Convenience
3) Value for money
4) Quailty
What is corporate social responsibility?
It involves the managers or owners of a business taking steps to ensure that the broader social welfare, including employees, customers, suppliers, and the environment, is taken into consideration when conducting business dealings.
What are other factors that differentiate businesses?
1) Social considerations
2) Environmental considerations
3) Ethical considerations
What is a social consideration for businesses?
Businesses that aim to make a profit in a dishonourable way is likely to be counterproductive, as customers will eventually find out which businesses are acting responsibly and which aren’t and react accordingly. This would mean customers could refuse to purchase a business’s product if they learn that the business is exploiting employees or engaging in animal cruelty.
What is an environmental consideration for businesses?
Businesses that create pollution may risk losing customers, whereas businesses that adopt ‘green’ philosophy and produce environmentally friendly products may see their sales increase.
What is an ethical consideration for businesses?
A growing number of consumers are becoming more morally minded and will actively purchase products or brands they believe do not exploit workers , products, or the environment.
What is a promotion?
The publicising of a product, organisation, or venture so as to increase sales or public awareness.
What is the role of a promotion?
The role of promotion is to inform, presuade and remind consumers about a buiness products with the aim of:
- attracting new customers
- increasing the brands loyalty
- encourage existing customers to buy more of the product
- encourage new and existing customers to buy their new products
What is advertising?
Advertising is a paid, non-personal message communicated through a mass media.
What can a successful advertisement result in?
Increased sales and profit for the business
The main advantage of an advertisement?
Provides businesses with the flexibility to reach an extremely large audience or to focus on a small, distinct segment of the population.
What are the different forms of advertising?
1) Mass marketing - tv, radio, newspapers and magazines
2) Direct marketing catalogues - catalouges mailed to individual households
3) Telemarketing - the use of the telephone to personally contact a customer
4) E-marketing - the use of the internet to deliver advertising messages
5) Social marketing advertising - online advertising using social media such as Facebook and Twitter
6) Billboards - Large signs in strategic locations
What is personal selling?
A face-to-face selling technique by which a salesperson uses his or her interpersonal skills to persuade a customer to buy a particular product.
What is relationship marketing?
Developing a long term relationship with an individual customer by meeting their needs on an individual basis as well as providing good after-sales service,, thereby keeping them coming back and developing a seller and customer relationship.
