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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
Q

what is advertising (promotion strategies)

A

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
Q

what is personal selling (promotion strategies)

A

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
Q

what is relationship marketing (promotion strategies)

A

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
Q

what is sales promotions (promotion strategies)

A

designed to create interest in and awareness of a product

E.g. competitions, discounts, samples, emails

29
Q

what is the disadvantage of sales promotions (promotion strategies)

A

customers may quickly become accustomed to paying the sale price making them less inclined to buy products at full price

30
Q

what is publicity and public relations (promotion strategies)

A

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
Q

what is the communication process (promotion)

A

looks at how promotion message is communicated to consumers

  • opinion leaders
  • word of mouth
32
Q

what are opinion leaders (communication process)

A

involves using a celebrity, sportsperson or expert to promote the benefits of the product

33
Q

what is word of mouth (communication process)

A

involves the exchange of opinion from one person to another about their impression of a product
- cost efficient

34
Q

McDonalds case study on advertising (promotion strategies)

A

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
Q

McDonalds case study on relationship marketing (promotion strategies)

A

McDonald’s. rewards frequent coffee purchases with free beverage via a loyalty card

36
Q

McDonalds case study on sales promotion (promotion strategies)

A

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
Q

what is place / distribution

A
  • distributional choices
  • channel choice
  • physical distribution issues
38
Q

what is distributional channels (place/distribution)

A
  • 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
Q

what is producer to customer (distributional channel)

A
  • simplest channel
  • involves no intermediaries
  • mostly all services such as tax advice + car repairs
40
Q

what is producer to retailer to customer (distributional channel)

A

used for bulky or perishable products such as furniture or fruit

41
Q

what is producer to wholesaler to retailer to customer (distributional channel)

A
  • most common method used

- wholesaler is an intermediary who buys in bulk from producer , then resells in smaller quantities to retailers

42
Q

what is producer to agent to wholesaler to retailer to customer

A
  • 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
Q

what is channel choice (place/distribution)

A
  • intensive distribution
  • selective distribution
  • exclusive distribution
44
Q

what is intensive distribution (channel choice)

A

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
Q

what is selective distribution (channel choice)

A

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
Q

what is exclusive distribution (channel choice)

A

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
Q

what are physical distribution issues

A

logistical considerations that affect consumers willingness to buy a product (E.g. shipment date + shipping fee)

  • transport
  • warehousing
  • inventory
48
Q

what is transport (physical distribution issues)

A

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
Q

what is warehousing (physical distribution issues)

A

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
Q

what is the limitations of warehousing (physical distribution issues)

A

takes up space and goods are generally not delivered to consumers quickly
E.g. lounges would commonly be shipped periodically

51
Q

what is inventory (physical distribution issues)

A

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
Q

what are people within marketing

A

having the right people to support the company’s products and/or services
- need excellent customer service

53
Q

what are processes within marketing

A

consumers total experience of buying the product from a simple stage of searching for information to the final stage of experiencing benefits

54
Q

what are physical evidence within marketing

A

physical appearance of product across every aspect of its presentation to consumer
- size + shape + colour + material + label of packaging

55
Q

what is e-marketing

A

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
Q

what is global marketing

A

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
Q

what is global branding (global marketing)

A

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
Q

what is standardisation (global marketing)

A

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
Q

what is customisation (global marketing)

A

customising marketing plan to fit the economic, political and sociocultural characteristics of the target country

60
Q

what is global pricing (global marketing)

A

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
Q

what is competitive positioning (global marketing)

A

relates to how a business will differentiate its products in the global market

Business (12 decks)

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