Chapter 10 Flashcards
What is marketing
Marketing is a total system of interacting activities designed to plan, price, promote and distribute products to present to potential products
Define marketing
Marketing is ‘the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives
How does marketing allow business to meet objectives
To translate the business objective into reality, a marketing plan must be prepared that sets out a series of action or strategies that can be used in order to achieve greater sales.
To achieve objectives, the marketing plan should be the focus of planning because
- it outlines strategies to be used to bring the buyer and seller together
- marketing is used to satisfy existing customer wants, which should lead to repeat sales
- it is the revenue- generating activity of any business
Marketing Plan
Is a document that lists activities aimed at achieving particular marketing outcomes in relation to a good or service. The plan provides a template for a future action aimed at reaching marketing objectives, such as establishing a customer base
Marketing Concept
The marketing concept is that a customers needs and wants are met while achieving the business’s objectives
What are the principles of the marketing concept
The marketing is based on four principles. It must be:
1- a customer-orientated approach
2- supported by integrated marketing strategies
3- aimed at satisfying customers
4- integrated into the business plan so as to achieve the business objectives
Market research
Is the process of systemically collecting, recording and analysing information concerning a specific marketing problem
What are the steps of the market research process
1- determining information needs - problem is clearly and accurately stated to determine what needs to be measured and issues involved
2- collecting data from primary and secondary sources - plans are made to gather missing data. Information may be collected by mail, telephone, and personal surveys, as well as personal observation or from private data sources
3- analysing and interpreting data - facts by themselves do not always provide a solution to the marketing problem. They need to be analysed and interpreted to determine what they mean
Determining information needs
Information must be relevant to the situation or the problem.
Information is useful if it
- results in marketing strategies that meet the needs of the business’s target market
- assists the business to achieve it’s marketing objects
- may be used to increase sales and profit
Marketing Data
Are the information- usually expressed as facts and figures- relevant to the defined marketing problem
Collecting data : What are the two types of data?
Primary Data
Secondary Data
Primary Data
Are the facts and figures collected from original sources
Three main methods used to gather information
- survey - gather information by asking questions or interviewing people
- observation - recording behaviours of customer
- experimentation - gathering data by altering factors under controlled conditions to evaluate cause and effect.
Secondary Data
Refers to information that some other person or organisation has already collected
Two types of secondary information
Internal data - refers to information that has been collected from inside the business
External data - refers to published data from outside the business eg Australian Bureau of Statistics
Market segmentation
When the total market is divided into groups who share on or more common characteristics
Four dimensions are
Demographics - age, gender, occupation etc
Geographic- urban, surburban, regional etc
Psychographic - lifestyle, motives, personality
Behavioural - regular user, first time user, brand loyalty etc
Target market
Is a group of customers with Similiar characteristics who currently purchase the product or may do so in the future
