Advertising & Marketing Flashcards
What is marketing?
Marketing is about managing key aspects of an organisation’s environment and includes a wide variety of strategic and manager activities
Management of exchange relationships. Marketing is the business process of creating relationships with and satisfying customers.
What does the American marketing Association say marketing is
The activity set of instructions and processes for creating, communicating, delivering and exchanging offerings that have value for customers clients partners and so
What is the two fold goal of marketing
To attract new customers by promising superior value
To keep and grow current customers by delivering value and satisfaction and exchanges that result in relationships
What determines If marketing has been successful
Whether marketing has been successful or not depends on whether the purchaser has acquired a meaningful advantage from the seller
What is the target market
Customers on whom and organisation focuses its marketing affects
What is a customer
Someone who purchases products from the seller
What are needs
States of felt deprivation
Individual needs: knowledge and expression
Basic physical needs: food, clothing, safety
Social needs: belonging and affection
What are wants
The form human needs take as they are shaped by culture and personality
For example a person needs food but wants takeaway
What are demands
The human wants that are backed up by buying power
What is the marketing process
(Create value for customers and build relationships)
Understand the marketplace and customer needs and wants
Design a customer value-driven marketing strategy
Construct an integrated marketing program that delivers superior value
Engage customers build profitable relationships and create customer delight
(Last stage - capture value from customers in return)
Create profits and customer equity
What is the marketing mix?
More than just advertising and selling a product - involves a range of factors
Product
Price
Distribution
Promotion
What are the 8P’s?
- Place
- Product
- Partnerships
- Processes
- Physical evidence
- People
- Promotion
- Price
What is the place variable?
To satisfy customers products must be available at the right time and in convenient location
What is the price variable?
Relates to the decisions and actions associated with establishing pricing objectives and policies and determining product prices
What is the promotion variable?
Activities used to inform individuals or groups about the organisation and its products
What is the people variable?
Refers to and includes the people involved with preparing, producing and presenting the product
What is the physical evidence variable?
The elements associated with the product used to demonstrate the product and what it is.
E.g. decor lighting and other elements
What is the processes variable?
Involves things such as automation or use of self service technology
What is the partnership variable?
Establishing, maintaining and nurturing partnerships throughout the supply chain
What is advertising
A paid nonpersonal communication about an organisation and its products transmitted to a target audience through mass media
What are the key advertising decisions
Four major decisions need to be considered when developing an advertising plan
- objectives setting
- budget decisions
- message and media decisions
- advertising evaluation
What is the advertising decision of objectives
A specific communication task to be accomplished with a specific target audience during a specific time period
Is typically the first step and should be based on past decisions about the target market position and the marketing mix
Can be used to inform persuade or remind customers
What is the product variable?
A good, service, idea or a combination
What is informative advertising
Mostly used when introducing a new product it is to build primary demand
For example telling the market about a new product explaining how the product works or describing available services and support
What is persuasive advertising
Important when competition is high the goal is to build selective demand
Comparative or attack advertising: company directly or indirectly compares its brand to one or more other brands that already exists
For example encouraging switching to a brand or changing customer perceptions of product value
What is reminder advertising
Important for mature products as it helps to maintain customer relationships and keeps them thinking about the products
For example Reminding them where they can buy the product
What is the advertising decision of a budget
It’s the total amount of money allocated for advertising over a specific time period
Budgets differ depending on how new the product is if it is new are a larger advertising budget is needed to build awareness and gain consumer trial also brands that have many competitors must be advertise more heavily to be noticed
What are the key factors to take into account when making a budget decision
Geographical size of the market and distribution of buyers
Type of product
Industry norms regarding advertising frequency
The desired position of a company
What is the percent of sales approach?
Benefits? Issues?
Adjust past sales according to expected increase or decrease. The budget will be determined by the proportion of this adjustment
This is a very common method as it is easy to implement
It could lead to a vicious cycle when reduction in expected sales leads to a reduced budget thus further diminishing sales
What is the objective and task approach?
Benefits? Issues?
Determines campaign objectives and lists tasks that will achieve this objective the total budget is determined by the total cost of these tasks
It is the most logical approach and it is useful for setting the budget of a new product
It is hard to estimate which tasks will achieve the campaign objective
What is the competition matching approach?
Benefits? Issues?
The aim is to match the major competitors budgets or to allocate the same percentage of sales for advertising that competitors do
Good to be aware of competitors actions.
This method is not enough as the only determinant for a budget since competitors might have different promotional objectives and resources. Also misses the opportunity to stand out and develop a unique selling proposition
