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CIM > Applied Marketing > Flashcards

Applied Marketing Flashcards

1
Q

The 7 Ps

A

1) Product
2) Price
3) Place
4) Promotion
5) People
6) Process
7) Physical Evidence

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2
Q

The Traditional P’s

A

1) Product
2) Price
3) Place
4) Promotion

For Products

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3
Q

The Extended P’s

A

1) People
2) Process
3) Physical Evidence

For Services

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4
Q

Product

A

The features of the product for sale

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5
Q

Price

A

What pricing strategy is being employed?

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6
Q

Place

A

What distribution channels are being utilised?

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7
Q

Promotion

A

How are potential customers being informed about the product?

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8
Q

People

A

How are people being employed in customer-facing roles

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9
Q

Process

A

What does the customer journey look like?

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10
Q

Physical Evidence

A

What tangible assets are part of the customer experience with the organisation?

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11
Q

Price Skimming

A

A “pioneer” pricing strategy that involves pricing high in order to maximise per u it profit whilst competition in the market is still low

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12
Q

Price Penetration

A

A “pioneer” pricing strategy employed to maximise volumes of units sold by setting the price low in order to grow market share and adoption rates rapidly

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13
Q

A Pioneer Pricing Strategy

A

A pricing strategy employed by an organisation bringing a radically new product to market.

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14
Q

Production Orientation

A
  • 1800s+
  • Cheap Production
  • Low Prices
  • Very Large Quantities Produced
  • Economies of Scale are the Aim
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15
Q

Product Orientation

A
  • Products Full of Features
  • “Something for Everyone” Mindset
  • Profit from Boosted Sales as People Who may Not Otherwise Buy, Will Do
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16
Q

Sales Orientation

A
  • 1920s to 1950s
  • Very Aggressive Sales
  • Often Creates Artificial Demand
  • “Sell what We Have, Not What They Want” Mindset
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17
Q

Marketing Orientation

A
  • Customer Needs Identified
  • Build a Relationship with a Customer to Understand their Needs / Wants / Expectations
  • “Give the Customer What They Want” Mindset
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18
Q

Relationship Marketing Orientation

A
  • Lifetime Customer Value > Transaction Value
  • Relationship Building is Core to the Organisation
  • Focus on Customer / Supplier Retention
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19
Q

Market Orientation

A
  • Customer Centric
  • Decisions led by the Market

Never and Slater (1994):

  • Long Term Profits
  • Cross Functional Teams
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20
Q

Marketing’s Contribution to Organisations

A
  • Create Customer Value

- Provide Competitive Advantage

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21
Q

Brand Value

A

The extra amount a customer is willing to pay for a branded product over a non-branded product.

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22
Q

Ladder of Loyalty

A

1) Suspect
2) Prospect
3) Customer
4) Client
5) Advocate
6) Partner

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23
Q

Mission Statement

A

A statement that define:

  • Role of Profit / Service / Opportunity
  • Business Definition
  • Distinctive Competencies
  • Indications of the Future
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24
Q

Objectives

A
  • Statement of specific aims to be achieved
  • Help Achieve Larger Strategies
  • Good Objectives are SMART
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25
Q

SMART

A

Definition of requirements for a good overdrive:

  • Specific
  • Measurable
  • Achievable
  • Relevant / Realistic
  • Timebound
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26
Q

APIC

A

A planning process framework:

  • Analysis
  • Planning
  • Implementation
  • Control
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27
Q

Influences on Objectives

A

Internal:

  • Culture
  • Resources
  • Staff Aspirations
  • Company Strategy
  • Departmental Objectives

External:

  • Competitor Actions
  • Customer Behaviour
  • Government
  • Technological Development
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28
Q

SOSTAC

A

A planning process framework developed by P. R. Smith:

  • Situation Analysis
  • Objectives
  • Strategy
  • Tactics
  • Action
  • Control
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29
Q

Customer Buyer Process

A

1) Needs Recognition
2) Information Search
3) Evaluation of Alternatives
4) Purchase Decision
5) Post-Purchase Evaluation

Speed of the Process is Affected by the Risk Associated with the Purchase and the Level of Personal Involvement a Customer has.

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30
Q

Stages of a Typical Customer Journey

A

1) Awareness
- Become aware of a product

2) Interest
- Become interested by the concept

3) Consideration
- Consider costs / benefits / alternatives

4) Purchase
- Buy the product

5) Retention
- Encouragement to repeat purchases

6) Advocacy
- Spread recommendations of a brand

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31
Q

Diffusion of Innovation

A
  • Innovators (2.5%)
  • Early Adopters (13.5%)
  • Early Majority (34%)
  • Late Majority (34%)
  • Laggards (16%)
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32
Q

B2C Buying Influences (Pyschological)

A
  • Motivations
  • Perceptions
  • Learned Knowledge
  • Beliefs
  • Attitudes
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33
Q

3 Types of Perception Biases

A

1) Selective Attention
2) Selective Distortion
3) Selective Retention

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34
Q

Selective Attention

A

A psychological perception bias.

Self-Selection of what information we deem necessary to pay attention to.

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35
Q

Selective Distortion

A

A psychological perception bias.

Self-Distortion of facts and figures that allow us to better fit them to fit our own perceptions.

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36
Q

Selective Retention

A

A psychological perception bias.

When we only remember information that we believe to be important.

Fundamental for the formation of other biases.

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37
Q

B2C Buying Influences (Social)

A

Culture:

  • Influences values / beliefs / attitudes / behaviour
  • History and Tradition

Reference Groups:
- Groups that we refer to for additional information

Family:

  • Often the strongest and widest- preaching reference group
  • Unconsciously guiding in many ways

Social Class:

  • Often very vague
  • Can be extremely influential
  • Social mobility has blurred many traditional classes
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38
Q

U.K. Buyer Social Class Model

A

A - High Management, Leadership (Upper Middle Class)

B - Middle Management, Supervisory (Middle Class)

C1 - Junior Management, Administrative (Lower Middle Class)

C2 - Skilled Manual, Traditional Trades (Skilled Working Class)

D - Semi-Skilled Manual, Trade Apprentices (Working Class)

E - Unskilled or Casual Workers, Labourers (Lowest Subsistence)

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39
Q

B2C Buying Influences (Personal)

A

Ascribed status:

  • Age
  • Sex
  • Race

Lifestyle:

  • Interests
  • Physical Behaviour
  • Values
  • Opinions
  • Tends to be the most influential Personal Factor

Personality:

  • Confidence
  • Sociability
  • Charisma
  • Ambition
  • Curiosity
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40
Q

B2B Organisational Buying Process

A

1) Problem Recognition
* 2) General Need Description
3) Product Specification
4) Supplier Search
5) Proposal Solicitation
6) Supplier Selection
* 7) Order-Routine Specification
8) Performance Review
* If necessary

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41
Q

B2B Buying Influences (Macro)

A

Environmental:

  • Economic
  • Technological
  • Political
  • Competitive
  • Cultural
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42
Q

B2B Buying Influences (Micro)

A

Organisational:

  • Objectives
  • Policies
  • Procedures
  • Structure
  • Systems
  • Organisation Culture
43
Q

B2B Buying Influences (Groups)

A

Influences on Groups of People:

  • Authority
  • Status
  • Empathy
  • Persuasiveness
  • Culture
44
Q

B2B Buying Influences (Individuals)

A

Influences on Individual People:

  • Age
  • Education
  • Job Role
  • Personality
  • Risk Attitude
45
Q

Types of Buyers

A

1) Customer - Those who purchase a product or service
2) Consumer - Those who use a product or service
3) Organisational Buyer - Those in charge of buying on behalf of an organisation

46
Q

Importance of Customer Buying Behaviour

A
  • Helps design marketing activities
  • Develops a better understanding of customer needs and wants
  • Boost customer satisfaction by better marching marketing activities with customer behaviour
  • Better delivery of marketing can encourage repeat business
  • May eventually be able to understand every single customer’s behaviour
47
Q

Types of Business Models

A

1) Business to Business (B2B)
2) Business to Consumer (B2C)
3) Consumer to Consumer (C2C)
4) Government to Citizen (Public)
5) Not-For-Profit (NFPs / NGOs)

48
Q

Differences between B2B and B2C

A
  • Number and nature of Decision-Makers
  • Balance of Promotional Mix elements
  • Message Content
  • Lead time for decisions
  • Use of segmentation and research
  • Complexity of budget allocation
49
Q

Consumer Purchasing Behaviour

A

1) Routine Response - Toilet Paper
2) Limited Decision Making - Restaurant Choice
3) Extensive Decision Making - House Purchase
4) Impulse Buying - Chocolate Bar

50
Q

B2B Purchasing Behaviour

A

1) Straight Rebuy
- Monthly Orders
- Often automatic

2) Modified Rebuy
- Adjustments to a Straight Rebuy
- Small number for approvals needed

3) New Task
- Full buying process necessary

51
Q

Decision Making Unit

A

1) Initiator - Recognises Problem
2) Influencer - Provides Expertise
3) Decision Maker - Selects Choice
4) User - “Consumer”
5) Gatekeeper- Filters Information

52
Q

Segmentation

A

The division of a market into different groups of customers with distinct needs and requirements for a product or service.

53
Q

Segmentation Benefits

A
  • Ensure Marketing mix elements are used appropriately for each target segment
  • Leverage resources to maximise customer satisfaction more efficient
54
Q

Segmentation Criteria

A
  • Measurable
  • Accessible
  • Substantial
  • Mutually Exclusive
  • Homogenous in Response to Marketing Variables
55
Q

Typical Consumer Segments

A

Geographic:
- Physical Location

Demographic:
- Ascribed Status

Psychographic:
- Personality

Behavioural:
- Lifestyle

56
Q

Typical B2B Segments

A
  • Industry Types
  • Benefit Sought from a Product
  • Purchase Potential
  • Company Demographics
  • Purchasing Process
  • Situational Factors
  • Operational Factors
  • Personal Characteristics
57
Q

Targeting

A

Targeting is the selection of the most attractive segments of a target market to become customers.

58
Q

Targeting Attractiveness Factors

A
  • Market Growth
  • Segment Profitability
  • Segment Size
  • Competitive Intensity within Segment
  • Cyclical Nature of the Industry
59
Q

Positioning

A

The designing of an organisation’s offering and image so that they occupy a meaningful and distinct competitive position in a target customer’s mind.

60
Q

PESTEL

A

The Macro Environment Factors:

Political
Economic
Social
Technological
Environmental
Legal
61
Q

Micro Environment Factors

A
  • Customers
  • Competitors
  • Intermediaries
  • Suppliers
  • Interest Groups
62
Q

Porter’s Five Forces Model

A

Used to understand the intensity of competition in an environment:

1) Threat of New Entrants
2) Threat of Substitutes
3) Bargaining Power of Buyers
4) Bargaining Power of Suppliers
5) Rivalry Amongst Existing Competitors

63
Q

Internal Environment Factors

A
  • Resources
  • Competencies
  • Goals and Objectives
  • Corporate Governance
  • Risk Management
  • Strengths and Weaknesses
64
Q

Use of Internal Information Sources

A

Best when…

  • Large organisation
  • Data is available to in-house staff
  • In-house staff understand the problem and audience
  • Budget is very limited
  • Confidentiality is critical
65
Q

Use of External Information Sources

A
  • Agencies have highly trained / experienced staff
  • Objectivity to a problem
  • Plausible deniability of research when dine through an agency
  • Cost effective
66
Q

Primary Data

A

Information that was previously unknown and which has been obtained directly by the researcher for a particular purpose.

67
Q

Secondary Data

A

Information gathered for some previous purpose, different to the current research project.

68
Q

Qualitative Data

A
  • Unstructured Research Approach
    • Interview / Focus Group
  • Small Number of Carefully Selected Candidates
    • Appropriate Sample is Essential
  • Non-Quantifiable Insights
    • Behaviour
    • Motivation
    • Insights
69
Q

Quantitative Data

A
  • Produces Information that can be Statistically Analysed
    • Expressed Numerically
  • Easier to Analyse than Qualitative Data
70
Q

Primary Data Sources

A

2 Key types:

1) Observation
2) Surveys

71
Q

Focus Group

A
  • A group interview led by someone guiding discussion

- Roughly 6 to 8 People

72
Q

Panels

A
  • Similar to a Focus Group but with repeated updates over a certain period of time
  • Members don’t interact with each other
  • Used for assessing change over time
    • e.g. attitude changes towards something
73
Q

Delphi Method

A

1) Individuals are interviewed
2) Resultsmtalked about in a group
3) Repeat

Helps mitigate “Group Think” phenomena

74
Q

Real Time Data

A
  • Very recent technological development
  • Information displayed immediately after collection
  • Allows insights and conclusions to be drawn very soon after data collection
  • Must be careful not to be too reactive and keep in mind larger trends
75
Q

Big Data

A

Refers to the mass volume, variety and complexity of information collection

76
Q

Secondary Data Sources

A

Internal:

  • Accounting Records
  • Existing Research
  • Marketing Database

External:

  • Periodicals
  • Government Publications
  • Internet Publications
  • Census Reports
77
Q

Jury Technique

A

A “Focus a Group” of experts

78
Q

Consumer Products

A

Durable Product:
- Any re-usable goods

Non-Durable Product:

  • Any good that needs to be repurchased repeatedly.
  • Fast Moving Consumer Goods (FMCGs)
79
Q

Industrial Products

A

Raw Materials:
- An ingredient purchased to be turned into something else

Components:
- An existing product that is used as part of a final product

Supplies:

  • Non-Durables
  • Things an organisation needs to operate
    • Stationary
    • Software

Capital Equipment:

  • Durables
    • Buildings
    • Machinery
80
Q

Total Product Concept

A

The idea that a product is more than simply an object that satisfies a need

81
Q

Product Classes

A

Core Product:

  • The fundamental need fulfilment
  • A transportation machine to get from point A to point B

Actual Product:

  • An identifiably differentiated product
  • Includes the design, packaging and specific features of the product
  • A Ford Car

Extended / Augmented Product:

  • The total provision of a product and the services that go along with it that exceeds the regular expectations for a product
  • Includes after-sales service, guarantee, delivery, training, brand, returns policy, repairs
  • Elements of an Extended / Actuated Product can become part of the Actual Product over time as consumer expectations change
  • A Ford Car with a guarantee, extended warranty, delivery from the factory, free first MOT
82
Q

Product Lifecycle

A

1) Development
2) Introduction
3) Growth
4) Maturity
5) Saturation
6) Decline

83
Q

Product Breadth

A

The number of product lines a company offers

84
Q

Product Depth

A

The number of variations available for a n individual product line

85
Q

Boston Matrix

A

Matrix used to classify products based on market share and market growth:

1) 🌟 - High Share / High Growth
2) 🐄 - High Share / Low Growth
3) 🐶 - Low Share / Low Growth
4) ❓ - Low Share / High Growth

86
Q

Pricing Influences (External)

A

Buyers Perceptions:
- Value for money

Competition:

  • Intensity of competition
  • Substitute availability

Sales Channels Expectations:
- Intermediaries payments

Environment Issues:

  • Legal responsibilities
  • Regulatory pressures

Elasticity if Demand:
- How elastic is demand?

87
Q

Pricing Influences (Internal)

A

Organisational Objectives:
- What is the position being targeted?

Costs:
- Fundamentally affects the price regardless of objectives and strategy

Marketing Mix Variables:
- Direct Distribution Channel Costs

Pricing Objectives:
- Growth vs Profit

88
Q

Standard Pricing Policies

A

General use pricing strategies for when an organisation is not a first entrant to a new market.

89
Q

Psychological Pricing

A

A Standard Pricing Strategy.

  • Placing the price just below a certain figure to make it feel like less than it is
  • £9.99
90
Q

Loss Leader

A

A Standard Pricing Strategy.

  • Placing price very low, often losing money
  • Used for rapidly growing a market or for attracting customers to other, more profitable, products
91
Q

Promotional Pricing

A

A Standard Pricing Strategy.

  • Making heavy and repetitive use of promotions in order to make prices seem artificially low when that is what the organisation expects to sell them for anyway
  • DFS Summer Sale
92
Q

Pricing Method

A
  • Cost Oriented Pricing
    • Mark Up / Cost Plus Pricing
    • Absorption Costing (covers FC + VC)
    • Cost Base / Marginal Costing (covers MC)
  • Demand Oriented Pricing
  • Competition Oriented Pricing
    • Compete directly with competitor offerings
  • Market Oriented Pricing
    • Tends to be with Luxury Goods
93
Q

Distribution Channels

A

A group of individuals and organisations that direct the flow of products from producers to customers

94
Q

Marketing Intermediary

A

A middleman who links producers to other middlemen or to customers.

2 Types:

1) Merchants
- Buying / Selling agents

2) Functional Middlemen
- Add value by changing an input to an output

95
Q

Functions of Intermediaries

A

1) Sorting Out
- Classifying different products into homogenous groups

2) Accumulation
- Developing a bank of stock to provide aggregate industry

3) Allocation
- Breaking down homogenous stock into smaller units

4) Assorting
- Combining products into collections that buyers want

96
Q

Consumer Goods Distribution Channels

A

1) Manufacturer —> Customer
2) Manufacturer —> Retailer —> Customer
3) Manufacturer —> Wholesaler —> Retailer —> Customer
4) Manufacturer —> Agent / Broker —> Wholesaler —> Retailer —> Customer

97
Q

Industrial Goods Distribution Channels

A

1) Manufacturer —> Customer
2) Manufacturer —> Distributor —> Customer
3) Manufacturer —> Agent —> Customer
4) Manufacturer —> Agent —> Distributor —> Customee

98
Q

Promotional Cycle Model

A

⚡️Noise⚡️ ⚡️Noise⚡️
🏢 —Encoding—> Message —Decoding—> 👤 —> 🔁

Encoding:
How best to convey a message using a particular medium

Decoding:
How a receiver understands a particular message

Noise:
External influences that can confuse the encoding and decoding of a message’s meaning

99
Q

DRIP Model

A

Promotional model developed by C. Fill

  • Differentiate
  • Remind
  • Inform
  • Persuade
100
Q

Promotional Mix

A
  • Sales Promotion
  • Advertising
  • Public Relations
  • Direct Selling
  • Personal Selling
  • Sponsorship
  • Digital Media
  • Direct Response Advertising
101
Q

5 Promotional Variables

A

1) Communicator if Message
2) Message Content
3) Audience of Message
4) Medium of Message
5) Audience Response

102
Q

Features of Services

A

1) Intangible
- Not a physical object

2) Perishable
- Can’t be stored in advance of use

3) Inseparable
- Customers involved in production
- Centralised mass production very difficult

4) Heterogenous
- Lack of standardisation
- Difficult to control quality

103
Q

Customer Value

A

The assessment of the product’s overall capacity to satisfy customer needs

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