Business Studies Chap 10 Flashcards
The marketing Function
Define the meaning of Marketing
-Marketing refers to activities a company undertakes to promote the buying or selling of a product or service
-Includes advertising, selling, and delivering products to consumers or other businesses.
Explain the role of the marketing function
-Identify the needs of customers and determine the value they place on getting those needs satisfied
-Shape the experience customers have after the products/services are delivered to them.
Outline the Marketing activities
Standardisation and grading
-Refers to the process of ensuring that goods are produced to the same standards in terms of size/weight/color.
Storage
-Refers to the act of keeping the products at a facility for safekeeping/preservation after the manufacturing thereof
Transport
-Refers to the movement of products from one place to another
Financing
-Refers to the act of obtaining funds to ensure that businesses can operate effectively in pursuit of the org. objectives
Risk bearing
-Provides bus. with the opportunity to reduce losses incurred should a bus. venture not succeed by sharing the risk with another party
Buying and selling
-Refers to the process of exchanging goods/services for money
Discuss categories of consumer goods
-Convenience Goods
-Shopping goods
-Specialty goods
-Services
-Unsought goods
Define the meaning of product policy
-Deals with the features, appearance and the benefits of the products
-The first component of the marketing function
Mention the importance of product development
-Product design is a process used to design goods that suit the needs of customers
-If the product design doesn’t suit the target market, there will be very little demand for the product
Outline the steps of product design
-Business analysis
-Market testing
-Technical implementation
-Commercialization
-Product review and price adjustment
-Generate a new idea
-Evaluate the idea
-Test and develop the concept
Explain the purpose of packaging
-Physically protect the product from any harm
-Promote the marketing of a product
-Prevent tampering or theft of a product
Describe the kinds of packaging
For Immediate use
-Needs to be cheap
For double use
-Re-used for purposes
For re-sale
-Buy products in bulk
Kaleidoscopic/ Frequently changing
-Advertising
Speciality
-Suit the product
Combination
-Packaged and purchased together
Elaborate on the meaning of trademarks
-A trademark is the name/logo/symbol used by a manufacturer/business to differentiate its products/business from competitors
Explain the importance of trademarks to businesses and consumers
Businesses
-Establishes an identity/reputation for products
-A well-known trademark helps to make a brand instantly recognizable
Customers
-Creates a sense of security and consistency for customers
-Represents a certain standard of quality and price to the consumer
Mention the requirements of a good trademark
-Must be attractive to the consumer
-It is important that it suits the product
Elaborate the meaning of price
-Pricing is the easiest of all marketing variables to influence but it is amongst the most complex decisions to make
Explain the importance of pricing
-The price of a product must make provision for transport
-The price of a product should take the VAT into account
Outline the pricing techniques
Promotional pricing
-Is a sales strategy in which a business temporarily reduces the price of a product or service to attract more customers
Penetration pricing
-Happens when products are sold at a very low price to attract consumers to products that are being introduced into the market
Psychological pricing
-Use the emotional response to encourage sale
Bait pricing
-Usually set lower than the item’s cost price to attract customers
Skimming prices
-Prices attached to a new innovative product that is considered unique and prestigious
