AOS2 unit 2 - marketing Flashcards
Marketing
the process of implementing strategies to price, promote and distribute products to current and potential customers.
Customer base
- is a group of consumers who continuously purchase goods and services from a business.
Customer profile
- is a specific description about the type of person a business is selling to, including their demographic, psychographic and geographic characteristics.
The relationship between marketing, establishing a customer base and business objectives
define marketing and customer base
if the business have an effective marketing strategy that meet the needs of their established customer base the business can achieve business objectives.
eg.
Increasing sales: Targeting a business’s customer base can increase the number of customers who will make repeat purchases, helping to increase the number of sales.
Brand identity
the unique set of values a business seeks to portray to its customers
Operating factors (some control)
CUSTOMERS
Effect of customer base:
Products that are designed to continuously satisfy customer needs can help a business establish and expand its customer base.
Effect on brand identity:
Marketing strategies that are customer focused will reach the target market and improve their perception of the products the business offers.
Macro factors (no control)
ECONOMIC FACTORS
Effect on brand identity:
A business may choose to implement marketing strategies during periods of strong economic growth, as current and potential customers have more disposable income.
Effect of customer base:
In periods where disposable income is high, customers are more inclined to purchase goods or services offered by a business, providing an opportunity for businesses to expand their customer base.
Internal environment (full control)
EMPLOYEES
Effect of customer base and brand identity:
How employees present themselves can directly affect how customers perceive the business. Employees should aim to be polite, efficient, respectful and responsive to deliver excellent customer service.
Good customer service can enhance a business’s brand identity and expand its customer base while poor customer service can negatively affect how customers perceive the business.
Market research
is the process of investigating and analysing the activities and behaviours of customers and competitors in a specific industry.
- The market research process
- Market research is conducted through a series of steps where business is can gather a range of information which can help owners develop and implement relevant and effective marketing strategies.
- Business owners use market research to help ensure their goods and services satisfy customer needs and attract new customers.
- Data collection techniques
- When conducting market research businesses must consider what kind of information they want to collect.
Primary data
is information which is collected for the first time by the business of their research purpose.
Eg. Survey: involves a set of questions which enable people to select a predetermined answer to express their opinions.
Secondary data
is information which has already been collected for another process.
Eg. Internet search: Businesses can use a legitimate search engine to gather information related to the specific industry, market and competitors.
- Data analysis and interpretation
- After collecting the required data businesses need to analyse and interpret their findings to draw meaning from the data.
To do so, the collected data needs to be edited to include quality data and is usually transformed into graphs, so it is easy to interpret.
Market dimensions
- Market dimensions relate to the size of a market for a particular good or service.
- Market dimensions allow a business to understand how big the market is for a particular product.
Market segmentation
is the process of dividing a market into different groups of consumers that share similar characteristics. (demographic, psychographic, geographic and behavioural.)
Selecting a target market
is a specific group of customers which a business aims its marketing efforts towards.
A business’s target market should only contain market statements that are likely to be receptive to the product and therefore enables a business to be profitable.
Customer behaviour
is the actions of those who purchase goods and services for consumption.
Businesses should be aware of customer behaviour in order to assess how customers may respond to marketing strategies.
Businesses should consider the factors that influence the purchasing decisions of customers. (personal, cultural, social, psychological factors.)
Customer trends
are developed patterns in customers’ behaviours, attitudes and beliefs.
- Businesses can identify customer trends by analysing patterns in consumer behaviour.
- By recognising current trends, businesses can adapt and improve their marketing strategies to better target customers.
eg. online shopping
Quantitative data
- is information which can be measured in numbers and figures.
Qualitative data
- is information which is descriptive and non - numerical.
The 7Ps of the marketing mix
Product
is a good or service that is offered to customers to satisfy a need or want.
Branding: involves a business creating a name, design, or logo that is recognisable and memorable so that customers can identify it easily.
Packaging: designing what the product will be presented in.
Price
is the amount that a customer pays for a good or service.
- Price must be considered during the marketing process as it can have a direct impact on a business’s sales revenue and profit.
penetration pricing - A business sets a lower price than competitors when entering a market.
Can allow a business to gain market share quickly as products are priced lower than competition.
Place
relates to how a business distributes its product to customers.
Producer to consumer:
- Products are sold directly from the business to consumers.
Promotion
is the marketing communications used by a business to inform, promote and remind its target market about its product.
Advertising -
is creating a message to publicly promote a business’s products.
- Can reach a broad audience to attract new customers.
- Can successfully be used to promote products to the business’s target market.
Sales production -
is providing customers with short term incentives to promote a trial or use of a product
- Can effectively increase sales in the short term.
People: owners, managers, employees and customers
the individuals that influence a customer’s perception of a business and its products.
- Owners and managers significantly influence the business’s culture, decisions and the products it offers, which can determine levels of customer satisfaction.
- Employees play a vital role in determining a business’s reputation, as the quality of customer service they provide can impact how customers perceive and feel about a business.
Physical evidence
the environment in which the business and customer interact.
Facilities: the items a business uses to conduct everyday activities.
Interior design: the design of a businesses physical location/website.
Process
relates to the procedures set in place throughout an entire customer purchase.
Information: Customers should be informed about the product they are interested in and its features.
Purchasing options: Customers should be provided with a variety of ways to purchase products, such as cash or eftpos.
The product life cycle
is a series of stages that a product will pass through from the moment it is introduced to the market until the product becomes obsolete or replaced.
Introduction:
- This is where the product is first introduced to the market, and sales and market share are low.
- Business will adapt its marketing strategies to increase customer awareness.
Growth:
Customers have accepted the product, and the product will experience its fastest sales growth and start to attract competition.
Maturity:
Business will face high levels of competition and product sales will start to plateau.
Decline or Extension:
- Business will experience a firm decrease in sales as its product becomes obsolete or outdated.
- Instead of going through the decline stage, a business can implement strategies to lengthen the product life cycle.
Extension strategy:
Creating a new version of the product.
Customer relations strategies -
Quality customer service
Customer loyalty programs
- Business consistently going above and beyond expected performance to ensure customers are satisfied with their experience. (dealing with customer complaints)
- Marketing initiatives which enable customers to gain benefits for frequently purchasing from a business.
(rewards offered eg. discounts and free shipping.)
Public Relations and Strategies
communicating an intended message to the public to create and sustain a positive business reputation.
The relationship between PR and business objectives
Define public relations
The relationship between public relations and achieving business objectives is that an effective PR can lead customers to associate a business with positive characteristics such as reliability which can improve reputation.
This helps the business achieve its overall objectives as a positive reputation can increase an individuals likelihood of purchasing a good or service, which can increase sales and market share.
Planned public relations
is a business proactively communicating intended messages to various publics.
(social media: enables businesses to respond quickly to issues.)
Crisis public relations
is a business communicating to various publics in response to an issue which can negatively affect its reputation.
- Businesses can prepare for crises through crisis management and creating a crisis communication plan, that all staff must follow.
CSR in marketing
CSR is when a business goes above and beyond their legal obligations of a business taking into account the environment, society/community and employees.
CSR issue:
Materialism - A business may use certain marketing strategies that persuade people into unnecessarily believing that they need to buy a product. These strategies aim to create needs amongst customers, resulting in materialism.
Green marketing
is advertising a good or service by highlighting its environmental benefits.
- It can influence customers to be conscious of their consumption and effects on the environment.
- Businesses should have genuinely eco-friendly products and processes.
