BUSMAN 5 2 Flashcards
MARKET SEGMENTATION
total market is subdevided into groups who share one or more common characterisistcs
market dimension
those broad elements that allow potential market segmens to be identfied
target market
groups of customers with sim haracteristics who currently purchase goods or may do so in future
target market selection is easier or the bus t increase sales and profits bc
-cost effective, time-efficient, better understanding of buying behaviours
primary targe market
segmant at which most of marketing resources are directed
sec target market
usually maller n less imp market segmants
niche market
a narrowly selected target market segmant
consumer bying behaviour
decisions and actions of consumers when they purchase gns, and what motivates the purchase
factors influencin consumer behaviour - psychological influences
1.perception: customers wont purchase product if percieved as poor
- motives: reason fo buying (amusement,health, safety,fear)
3.attitude: overall feeling
4. personality: behaviours and personalities that make up that person
factors influencin consumer behaviour - psychological influences
1.family: roles influence buying behaviour
2.peer groups: buying behav may cange to be inline with others
3.social class: influencesthe type,quaity,and quanitity of products that customer buys
4: culture: wear,eat,live
7PS - product
development,positionng,branding, packaging
marketing mix
combonation of 7 elements, product,price,place,promotion,people,physical evidence, process
product
good, services, experiences that can be offered in return of satisfying needs
product development
creation of a product with new or diff characteristics that offer beenfits to customers
product positioning
dveleopemnt of product image
7Ps - price strategies
1.recommended retail price
2.percentage markups
3.price leadership and comp
4.what the market will bear
5.quotes
6.price skimming
7.penetration pricing
8.premium pricing
9.bundle pricing
10.psychological pricing
7Ps - price strategies - rec retail price (RRP)
price rec by either wholesaler or manufacturer of good being sold by retail bus
7Ps - price strategies - percentage mark up
increases cost price by a fixed % to give the selling price
7Ps - price strategies - leadership and comp
dom company sets price for product and other companies follow suit
7Ps - price strategies- what the market will bear
bidding auction
7Ps - price strategies - qoutes
estimate of costs involved with indiv job
7Ps - price strategies - price skimming
placing high price on new product, knwoing that customers will be willing to pay, then is lowered to attract more cust
7Ps - price strategies - penetration
when new item introd, a low price might be offered to attarct new cust
7Ps - price strategies - premium pricing
product is priced higher than competitors to convey sense of higher quality
7Ps - price strategies - bundle prcing
sells package of goods for lower total price than the indiv price of each component of the bundle
7Ps - price strategies - psychological pricing
making the price look less then it is
7Ps - plce n prmotion - place
making the product available to the cust,wherever the cust chooses to purchase it
7Ps - price strategies - distribution channels
routes taken to get the product from factory to customer
distribution channels
1.producer to customer:direct
2.producer to retailer to customer: intermediary who buys from producer and resells to customer
- producer to wholesaler to retailer to cust:wholesaler buys bulk from producer, then resells in smaller quantities to retailers
4.producer to agent to wholesaler to retailer to cust:agent distributes products to wholesalers but never owns the product, agents are paid commision from producer
non store retailing
retailing activity conducted away from traditional store
market coverage
number of outlets a bus can choose for its product
types of makret coverage
1.intensive distribution:when bus wishes to saturate the market with its product
- selective:usin only a moderate proportion of all possible outlets
3.exclusive:one retail outlet for product
promotion
methods used by bus to persuade and remind target market about its products
promotion mix
methods a bus uses in its promotional campaign
methods of promotion mix
1.personal selling:activities of a sales representitive directed to a customer in an attempt to make sale
- opinion leader:person who influences others
- publicity and public relations: free news or story abt the bus product
4.advertising:paid, non personal message communicated through mass medium
7PS - people
everone involved in products of a bus
7PS - physical evidencc
everything that the customer sees when interacting with a bus
7PS - process
activities taken place when there is any interaction between cstomer n bus like delivery
product life cycle
all stages that a product passes through. intro, growth, maturity,decline, extention
product life cycle - intro
when new product is launched
brand est,price lower then compeitiors, stff trained
product life cycle: growth stage
product begins to increase sales to customers
quality maintained, increased distribution channels
product life cycle - maturity
product fully accepted into market n sales reach peak
products differentiate from competitiors, price adjusted to maintain market share
product life cycle - decline stage
no longer appeals to customers
product discontinued, price reduced,special deals for pple
product life cycle - extention
products can b revived back to maturity
exports
gods or service sold by one country to indiv
diversification
when businesses vary their range of product of their field
diversification:
1. product
2.geographic
- expand range of products
- operate in diff locations
why do products decline
- new tech
-market change - new products reduce demnad for old products
customer loyalty program
offered by a bus to customers whho frequent;y make purchases
adv of customer relations strategy
dis
- repeat sales loyal customers, increased revenue
- time, money, data from programs may not be accurate
search engine optimisation (seo)
improving a bus web to increase visibility when people search for products via search engine
AI
intelligence demon by machines, collects data, insights,anticipates customer moves
public relations
planned effort to est n maintain mutual understanding between bus and its publics
publics
groups that bus interacts with that has impact on bus objectives involing developing good relations with many griups, generating publicity, positive public perception
elements that make up bus image
name,logo,behaviour of employees, service,ads
publics are stakeholders - types of publics
1.internal: employees managers - good morality,safe env,fair pay
2.general:expects fair n honest bus practices
3.local community: represents local residents
4. citizen action publics: action groups advocates
public relation campaign
series of public relations activities undertaken to achieve objectives
stages in developing PR campaign
- est PR camp obj
2.identify intended public - develop PR strategies
4.implement
5.eveluate results
risks maagement
identofying risks to wich a bus is liekly to be exposed to and determing how to solve them
crises public relations
strategies implemented when unfavourable publicity threaten image
crisis comm plan
how to handle unfavourable publicity
