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Business Marketing - marketing strategies Flashcards

1
Q

what is market segmentation

A

dividing the market into groups of customers with common characteristics (demographic, psychological attributes, geological locations, behavioural)

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2
Q

what is the impact of market segmentation

A
  • marketing strategies are used more effectively
    –> more cost effective + gains higher returns
    however, excessive segments may be counter-productive as a wider variety of products + marketing strategy are needed to satisfy a various group
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3
Q

what is product/service differentiation

A

creating characteristics unique to the product to persuade customers to purchase. common ones involve;

  • price
  • quality
  • ethical positioning
  • rewards for loyal customers
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4
Q

what is positioning

A

refers to development of products image as compared to competitors

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5
Q

apple case study of demographic segmentation (market segmentation)

A
  • low cost models such as iPhone SE aims to target developing countries and high cost ones in developed countries
  • religion in India led apple to customise advertisements focusing on the ritual of Hindu wedding
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6
Q

apple case study of geographic segmentation (market segmentation)

A
  • changes to appearance of iPhone (such as larger screen size) is preferred by Asian users
  • iPhone SE largely designed to target high growth markets in India + China
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7
Q

apple case study of behavioural segmentation (market segmentation)

A

cheaper plan will offer less phone and date usage than expensive one

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8
Q

product strategies

A
  • branding

- packaging

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9
Q

what is branding (product strategies)

A

aims to create a positive association with the brand name

- can have long-term beneficial effect

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10
Q

what is packaging (product strategies)

A

involves designing and producing a container or wrapper for a product

  • protects product
  • give positive expression and encourage first time customers
  • preserve + inform + promote
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11
Q

what are pricing methods

A
  • cost-based pricing
  • market-based pricing
  • competition-based pricing
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12
Q

what is cost-based pricing (pricing methods)

A

business adds an amount of profit (margin or mark up) to cost of producing the product
- does not take into account the state of market

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13
Q

what is market based pricing (pricing methods)

A

price at which supply of product equals the demand of the product

  • if prices too high –> demand will be lower and leave left-over stock
  • if prices are too high –> demand will exceed supply and goods selling out, resulting in loss of profit
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14
Q

what is competition based pricing (pricing methods)

A

charging similar or same price as other businesses

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15
Q

what are pricing strategies

A
  • price skimming
  • price penetration
  • loss leader
  • price points
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16
Q

what is price skimming (pricing strategies)

A

involves charging high prices to maximise profit and recover high costs involved in establishing a product
used in;
- the introductory stage of product
- early adopters –> consumers who are eager to be the. first to own

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17
Q

what is the risk of price skimming (pricing strategies)

A

if prices are too high, people may be unwilling to buy it

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18
Q

what is price penetration (pricing strategies)

A

charging a lower price than competitors in an effort to enter a market + gain market shares, with intentions of raising price later
- aims to undercut competitors and encourage consumers to switch

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19
Q

what is the risk of price penetration (pricing strategies)

A

business may not be able to afford to charge relatively low prices and customers may abandon product when prices rise

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20
Q

what is loss leader (pricing strategies)

A

goods that are set below cost price to attract customers to the business in hopes they will be enticed by other full-priced items

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21
Q

what is the risk of loss leader (pricing strategies)

A

customers may not buy other products

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22
Q

what is price points (pricing strategies)

A

certain prices at which people are more likely to buy for psychological reasons
E.g. $8.99 rather than $9

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23
Q

what is price and quality interactions

A

price of a product conveys information about the quality which is often associated by the consumers
E.g. goods + services more expensive are perceived to be higher quality
- price contributes to the image of the product

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24
Q

what are promotions strategies

A
  • advertising
  • personal selling
  • relationship marketing
  • sales promotion
  • publicity and public relations
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25
what is advertising (promotion strategies)
is the public face of the business. creation of new and interesting ways to exhibit products traditionally been in the media, billboards, electronic methods and anywhere that consumers can see
26
what is personal selling (promotion strategies)
involves taking the product directly to the consumer E.g. door-to-door sales + party plans + telemarketing + influences on social media promoting a product aims to convince the consumer to buy a product through informing them of the benefits directly
27
what is relationship marketing (promotion strategies)
process of the building and maintaining relationship with a customer encourages an initial sale + generate future sales, relying on creating high level of customer satisfaction , service and value - creates loyalty + regular customer base E.g. rewards programs + good customer service
28
what is sales promotions (promotion strategies)
designed to create interest in and awareness of a product | E.g. competitions, discounts, samples, emails
29
what is the disadvantage of sales promotions (promotion strategies)
customers may quickly become accustomed to paying the sale price making them less inclined to buy products at full price
30
what is publicity and public relations (promotion strategies)
process of creating an event for a business to generate awareness of a product or brand E.g. hiring celebrity to promote the launch of a new product
31
what is the communication process (promotion)
looks at how promotion message is communicated to consumers - opinion leaders - word of mouth
32
what are opinion leaders (communication process)
involves using a celebrity, sportsperson or expert to promote the benefits of the product
33
what is word of mouth (communication process)
involves the exchange of opinion from one person to another about their impression of a product - cost efficient
34
McDonalds case study on advertising (promotion strategies)
McDonald's in Australia was ranked 9th largest spender on advertising, spending approx. $4billion USD per year they use; - TV - radio - billboards - social media - sports sponsors + leagues and competitions there is different regional approach to advertising (as they operate in over 119 countries)
35
McDonalds case study on relationship marketing (promotion strategies)
McDonald's. rewards frequent coffee purchases with free beverage via a loyalty card
36
McDonalds case study on sales promotion (promotion strategies)
annual monopoly promotions to give consumers chances to win prices such as; cash, car, holidays etc. in 2020, McDonald's had over $125million AUD worth of food prizes to be won
37
what is place / distribution
- distributional choices - channel choice - physical distribution issues
38
what is distributional channels (place/distribution)
- producer to consumer - producer to retailer to customer - producer to wholesaler to retailer to customer - producer to agent to wholesaler to retailer to customer
39
what is producer to customer (distributional channel)
- simplest channel - involves no intermediaries - mostly all services such as tax advice + car repairs
40
what is producer to retailer to customer (distributional channel)
used for bulky or perishable products such as furniture or fruit
41
what is producer to wholesaler to retailer to customer (distributional channel)
- most common method used | - wholesaler is an intermediary who buys in bulk from producer , then resells in smaller quantities to retailers
42
what is producer to agent to wholesaler to retailer to customer
- agent distributes products to wholesaler but never owns the product - they are paid a commission by the producer - usually used for inexpensive and frequently used products - used when no sales representatives
43
what is channel choice (place/distribution)
- intensive distribution - selective distribution - exclusive distribution
44
what is intensive distribution (channel choice)
occurs when the product is readily available to a wide selection of stores or locations - easily accessible to consumers + can be found at several different stores E.g. milk , soft drinks, confectionary , newspapers
45
what is selective distribution (channel choice)
involves the use of limited numbers of stores/locations to sell or distribute a product - allows business to have control of where its product is sold --> image
46
what is exclusive distribution (channel choice)
restriction on the number of products and/or availability of products in venues - maintain control of production, distribution, sales and marketing elements of the product E.g. Tiffany & Co is only available in 2 stores in Australia
47
what are physical distribution issues
logistical considerations that affect consumers willingness to buy a product (E.g. shipment date + shipping fee) - transport - warehousing - inventory
48
what is transport (physical distribution issues)
process of moving goods from one location to another - length of time for goods + inputs to be distributed can be significant to distribution process E.g. perishable goods must be transported in refrigerated containers
49
what is warehousing (physical distribution issues)
process of storing product before they are distributed to consumer business can manufacture more of its products before shipping to consumer which can save shipping costs
50
what is the limitations of warehousing (physical distribution issues)
takes up space and goods are generally not delivered to consumers quickly E.g. lounges would commonly be shipped periodically
51
what is inventory (physical distribution issues)
stock held on premises ready to sold - too little inventory can risk running out on stock + missing sales - too much inventory can risk excess funds tied in stock --> risk it becoming redundant
52
what are people within marketing
having the right people to support the company's products and/or services - need excellent customer service
53
what are processes within marketing
consumers total experience of buying the product from a simple stage of searching for information to the final stage of experiencing benefits
54
what are physical evidence within marketing
physical appearance of product across every aspect of its presentation to consumer - size + shape + colour + material + label of packaging
55
what is e-marketing
online services : the use of email + social media which is the fastest growing sales medium in Australia to reach global audiences E.g. facebook, instagram
56
what is global marketing
process of marketing a product that is sold around the world - need to be modified to suit different needs of overseas markets includes; - global branding - standardisation - customisation - global pricing - competitive positioning
57
what is global branding (global marketing)
worldwide use of a name, term, symbol or logo to identify products to sellers - must decide between using a uniform global brand or giving products different brands in other countries E.g. nike, coca-cola and apple are international known brands
58
what is standardisation (global marketing)
this refers to manufacturing same product in all global markets, meaning using the same marketing mix for product around the world - saves money - maximise economies of scale
59
what is customisation (global marketing)
customising marketing plan to fit the economic, political and sociocultural characteristics of the target country
60
what is global pricing (global marketing)
using one standard price across all markets has simplicity benefits + helps develop consistent global brand image - need to be updated often to reflect exchange rate fluctuation
61
what is competitive positioning (global marketing)
relates to how a business will differentiate its products in the global market

Business (12 decks)

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