8. Marketing Flashcards
Define “marketing” as given by ..
CIM (Chartered Institute of Marketing)
The management process which is responsible for identifying, anticipating and satisfying consumer requirements profitably
Give examples on how marketing does not only regard the product itself
The experience:
- Confirmation of social status
- Ownership of something valuable
- Return on capital investment
What is the ultimate aim of marketing, and how is this achieved
Creating profits:
- Volume of sales (new customers + encourage existing ones)
- Value of sales (convincing that higher price is justified)
Define “succesful marketing campaign”
One that achieves an adequate level of profit within a specified timetable
Name the stages of the marketing strategy
- Indentify the product/brand
- Indentify the target market
- Understand their wants and needs
- Set the objective
- Use SWOT
- Devise (marketing mix)
- Implement and monitor
Define “SWOT”
Strengths, Weaknesses, Opportunities, Threats
Used to provide analytical insight into achievement of any objective
Helpful/Unhelpful
Internal/external
Explain how to use SWOT to analyse a marketing objective
- Identify objective
- Identify strengths and weaknesses (internal, can be modified)
- Identify opportunities and threats (external, can not be controlled)
- Create an action plan (or an alternative SWOT analysis if objective is not attainable)
Explain what insights can be gained from SWOT analysis
How achievable is the objective and what investments will maximise the chance of succes?
Strategic fit
- What changes can be made (e.g. expertise to make a certain style of wine)
- What threats can be managed (e.g. insurance)
Name some possible origins for an objective
- Intuition that a particular business oportunity exists
- Individual’s personal bussines dream
- Other business tools (e.g. value-curve analysis to show unmet gaps)
Explain value-curve analysis
An analyst evaluates clusters of consumer demand (e.g. price, convenience, packaging) and determines whether any cluster is under-supplied
Give an example of value-curve analysis
Premium red wine is always dry and complex, analysis might confirm under-supply for premium sweet red wine with simple fruit flavours
SWOT can be used to show best way to succes
Define a “resource”
A thing that the organisation has access to, that it can exploit as a tool
Give examples of resources
- Established reputation
- Reliable supply chain relationships
- Reliable support industries (e.g. logistics, bottling)
- Vineyards in optimal locations
- Optimal wine production facilities
- Financial investment
- Expertise and experience
How do we determine strengths and weaknesses
Determine whether resources and capabilities provide competetive advantage (better, faster, cheaper?)
Define a “capability”
Something an organisation is able to do
Give examples of capabilities
- Build a strong brand
- Respond to changing demand (e.g. change volumes, change product)
- Experiment to develop new products
- Lobby for favourable political outcome (e.g. subsidies, regulations)
What are subjects to determine opportunities and threats
PESTEL
- Political
- Economic
- Social
- Technological
- Environmental
- Legal
Give examples of political factors, when determining opportunities and threats
+ Subsidies
- Taxes
+ Promotional support
- Prohibition
Give examples of economic factors, when determining opportunities and threats
Weak local currency
+ Improves price competitiveness of big volume export
- Threats to prestige in luxury sector export
- Expensive import of equipment
Currency exchange instabilities
+ opportunity for those who can respond quickly
- hard to plan ahead
Recession
+ Lead consumers away from more expensive products
- Reduce purchasing power
Give examples of social factors, when determining opportunities and threats
Generational preference e.g. creates new opportunity first, becomes a threat when this generation gets older
Affect production e.g. losing labour in rural areas
Cultural attitude e.g. friendship/animosity between nations
Give examples of technological factors, when determining opportunities and threats
+ new techniques/equipment/analysis can increase quality or decrease cost
- When shared globally, uniqueness is difficult to maintain
Give examples of environmental factors, when determining opportunities and threats
Climate change
+ Cool limit of production
- Hot limit of production
- Established style with restrictions
Pressure for alternative land use
Logistics
Waste management
Use of energy
Synthetic chemicals
Give examples of legal factors, when determining opportunities and threats
Product regulation:
Strict
+ Give an advantage to organisation that hass the skill, resources and patience to navigate regulations
+ Product integrity
- Difficult trade
- Limited choices
Relaxed
+ New possibilities
- Undermine advantage of producers that optimised production