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AFM 132 > AFM 132 - Chp 8 marketing > Flashcards

AFM 132 - Chp 8 marketing Flashcards

1
Q

define marketing

A

process of creating, communicating and delivering offerings that have value for customers

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2
Q

define a market

A

as customer with wants + needs that have both an interest and resources to make a purchase

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3
Q

what are some trends in the market today?

A
  1. data collection and the importance of data
  2. emphasis on customer relationship management
  3. rise in cause marketing
  4. prevalence of social media marketing
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4
Q

why is the collection + importance of customer data a market trend

A

to best understand their current needs + anticipate future ones to have an edge on competition

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5
Q

why is there an emphasis on customer relationship management

A

building long-term customer relationships - retain loyal customer is a cost-effective way

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6
Q

why is there a rise in cause marketing

A

being more socially responsible to customers

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7
Q

why is there a trend in the prevalence of social media marketing

A

social media has provided additional avenues for companies to connect with customers

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8
Q

what facts would help push companies to integrate social media into their marketing strategies?

A

social media = relationships
ROI of social media is that your business will still exist in 5 years
93% of buying decisions are influences by social media

social media nurtures long-term relationships, set companies up for long-term success, and use mediums that are influential in customer decision-making

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9
Q

define market research

A

process of collecting info to understand customers in order to make informed decisions on how to satisfy their needs with product offerings

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10
Q

what are the benefits of market research for a company?

A

understand who their customers are + their preferences
assess the business environment - state of economy + competition
identify opportunities to pursue

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11
Q

what’s a con of market research?

A

expensive process

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12
Q

what are the 2 types of market research

A
  1. primary
  2. secondary
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13
Q

define secondary research

A

examines info + statistics that are already available

collects info on demographic, trends that may influence how a product is offered, current economic conditions that may influence demand for a product

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14
Q

secondary research can be helpful to perform a _______ scan

A

PEST scan

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15
Q

define primary research

A

gathering your own info directly - survey - more specific info

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16
Q

after gathering primary research, what can I do with it?

A
  1. info can be analyzed to find trends + opportunities
  2. how to further evolve an idea or product offering
  3. how to design the appropriate marketing mix + promotion mix
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17
Q

what are the 2 major market in business which a company can decide to serve

A
  1. business to customer - company directly sells to consumers (end users)
  2. business to business - company selling to other companies who may not be the end-users
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18
Q

what are the characteristics of a business to customer market? (B2C)

A
  1. customer want product for personal consumption
  2. decision-making process for consumer is short - less people involved + more emotional
  3. larger pool of prospective purchase who make smaller purchases
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19
Q

what are the characteristics of a Business to business market

A
  1. longer decision-making process - more people are in volved to cultivate a longer-term relationship
  2. purchases are less emotional, based on logic, more rational in decision-making, more negotiation to occur
  3. smaller pool of purchases but likely to make larger ongoing transactions
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20
Q

define mass marketing

A

a strategy where a company attempts to reach a wider audience with single product offering

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21
Q

define market segmentation

A

process of dividing a total market into customer segments that have similar characteristics or needs

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22
Q

what are some ways to segment a market

A
  1. geographic
  2. demographic
  3. psychographic
  4. behavioural
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23
Q

define a target market

A

a segment that is sizable, reachable, and potentially profitable

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24
Q

what are the steps in the consumer decision-making process

A
  1. initial consideration - what do they need?
  2. active evaluation - what info is available to evaluate the alternatives
  3. purchase decision - deciding on a product that best meets their needs
  4. post-purchase experience - customer assessment on whether the product has met their needs + how they may continue to engage/interact with the brand
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25
Q

what are the 3 types of influence on consumer decision making?

A
  1. social influences - 2/3 of touch points are consumer-driven activities
  2. psychological influences - attitudes or perceptions
  3. situational influences - situation environment my impact where a purchase is made
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26
Q

what are the components in the marketing mix

A
  1. Product
  2. price
  3. place
  4. promotion
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27
Q

define product

A

good or service offered to targeted customers

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28
Q

what are the approaches to design + development of a product

A
  1. concept testing
  2. test marketing
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29
Q

define concept testing

A

process of sharing an idea with potential customers to obtain feedback

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30
Q

what’s a benefit of concept testing

A

avoid investing time + money in ideas that won’t be successful and obtaining additional data to better meet customer needs

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31
Q

what is test marketing

A

provides an opportunity to launch + test a new product on a small scale to get customer feedback - sell in a limited geographical area

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32
Q

what’s a benefit of test marketing

A

ability to gauge consumer perception + consider any adjustment before launching it on a larger scale.

33
Q

risks of test marketing?

A

revealing new product ideas to competitors or risk to the overall brand should there be issues with the product

34
Q

define crowdsourcing

A

mobilize the ideas + perspectives of individual customer to help design a product

35
Q

what are some questions to consider in the packaging of the product

A
  1. does it stand out? - draw shoppers attention
  2. is it simple to use? - easy to open
  3. does it provide the info customers need? - listed benefits/warnings
36
Q

define product differentiation

A

promotes benefits of a product that make it unique compared to similar offerings from competitors

37
Q

define product line

A

a group of similar products sold by a company

38
Q

define product mix

A

combination of all the product lines sold by a company

39
Q

benefits of product diversification

A

reduces risk, generate more revenue streams, expands potential reach to customers

40
Q

define price

A

money exchanged to buy or use a product or service

41
Q

how to determine optimal price

A

company consider the overall costs to develop + market a product, the price of competing product + what customer are willing to pay

42
Q

provide some pricing strategies

A
  1. cost plus - ensures costs are covered by using the cost as the base then adding a mark-up to make a profit
  2. competitive pricing - assessing + basing price on what the competition is doing
  3. value-based pricing - considers what a customer is willing to pay for the perceived value of the benefits of the product
  4. price skimming - setting a high initial price
  5. penetration pricing - setting a low initial price
43
Q

benefits of price skimming

A

optimizes profit when there’s little competition + help set an image for the product offering

44
Q

what is a benefit of penetration pricing

A

help enter a competitive market or build up a customer base

45
Q

define the break-even point

A

point at which sales cover expenses + any units sold above that point is when you start making a profit

46
Q

what’s the formula to finding the break-even point?

A

fixed cost/(price per unit - variable cost per unit)

47
Q

what’s the role of place in the marketing mix?

A

considers where + how people can buy a product - means of distribution that can maximize the opportunity for customers to find + buy a product

48
Q

define the distribution channel

A

considers how products move from a producer to the consumer

49
Q

define intermediaries

A

individuals or organizations in the middle of a distribution channel that help move products from producers to consumers

50
Q

what are the different types of intermediaries and define them

A
  1. retailers - company that typically sell to customers
  2. wholesalers - companies that buy products in bulk to sell to other organizations
  3. agents/brokers - people that help negotiate the exchange between buyers + sellers but don’t take title to the goods
51
Q

what are the benefits to using an intermediary

A
  1. transportation efficiencies - intermediaries have efficient system tot move produce between location to reach many customers
  2. promotion efficiencies - an intermediary can be a partner to help promote + sell a product
  3. customer support efficiencies - intermediaries can provide convenient access to products + provide timely service/support if customers have issues
52
Q

what are the types of product distribution with a retailer?

A
  1. intensive distribution
  2. selective distribution
  3. exclusive distribution
53
Q

define intensive distribution

A

puts products in as many retail outlets as possible

54
Q

define selective distribution

A

selecting specific outlets to sell a product - done to cater to target markets at a specific stores or to guarantee service levels

55
Q

define exclusive distribution

A

selecting very few outlets to sell products - provides exclusivity to a retailer to sell a product

56
Q

define promotion

A

looks at all techniques used to motivate customer to take action + buy

57
Q

what conditions do promotion techniques + strategies face?

A

techniques aim to inform, increase interest + encourage interaction

strategies should reach target market in a cost-effective market

58
Q

define a promotion mix

A

various activities a company can use to motivate customer to take action + buy

59
Q

what’s included in a promotion mix

A
  1. advertising -
  2. public relations
  3. sales promotions
  4. direct marketing
  5. personal selling
60
Q

define buzz marketing

A

encourages customers to try products + then publicly share their review + opinion on them

61
Q

define advertising

A

media communication used to promote a brand or sell a product

62
Q

define public relations

A

activities that drive a positive image + generate publicity for a company + its products

63
Q

define sales promotions

A

techniques that can motivate a customer to buy, includes incentives (coupons, rebates, free samples)

64
Q

define direct marketing

A

promotional activities that link a producer directly with customers - requires comprehensive + up-to-date databases with customer info - expensive + must be aware of laws + regulations

65
Q

define personal selling

A

face-to-face promotional interaction between a seller + buyer - involves salespeople

66
Q

what’s the role of relationship marketing

A

aims to develop long-term relationships with specific customer to foster customer loyalty + interaction

67
Q

define customer relationship management (CRM)

A

captures data to support interaction + engagement with customers to build long-term relationships

68
Q

what are the benefits to CRM?

A
  1. being able to identify the best customers
  2. ability to customize communications knowing the preferences + past purchases of a customer
  3. assessing the effectiveness of marketing campaigns

overall, info collected through CRM can inform marketing strategies to retain customers + develop relationships with them over time, encouraging loyalty + driving satisfaction

69
Q

define a brand

A

a name, symbol, or design that distinguishes a company + its products from their competition

70
Q

good brands support the following

A
  1. clearly delivered message
  2. credibility for the company in the marketplace
  3. emotional connection between customers + product
  4. motivation for the buyer to buy
  5. customer loyalty
71
Q

define brand equity

A

overall value for a brand

72
Q

what are core to brand equity

A

brand awareness + loyalty

73
Q

what do valuations take into account?

A

current + future financial performance + customer perceptions

financial analysis - ROI
role of the brand - influence
brand strength - loyalty creation

74
Q

how should marketing strategies happen in the introduction of the product life cycle?

A

sales will start off slow, company will be in the process of spreading awareness through various promotion mix activities - distributions may be selective and price may be high or low depending on pricing objectives to encourage sales

75
Q

what are the stages to the product life cycle

A
  1. introduction
  2. growth
  3. maturity
  4. decline
76
Q

how should marketing strategies happen in the growth stage of the product life cycle?

A

sales will pick up + profits
competitors may release competitive products for consumer to consider

promotion + distribution may be increased to encourage sales + fight off competition = pricing may be relative to the competitors

77
Q

how should marketing strategies happen in the maturity stage of the product life cycle?

A

company will reach peak sales + aim to maintain profitability in an environment with fierce competition

incremental changes to the product to reinvigorate interest in the product, promotional efforts may continue to encourage loyalty, distribution may be intensive to reach out to new customer, prices may be reduced to encourage customers to buy who do not already have the product

78
Q

how should marketing strategies happen in the decline stage of the product life cycle?

A

sales + profits begin to fall

decision may be around price to still encourage sales from loyal customers, but less efforts will be placed on promotion + distribution

AFM 132 (12 decks)

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