Chapter 11 Flashcards
What are the 4 approaches to marketing
Product orientation - make products that they want for themselves with minimal consultation made of customers eg Apple
Production orientation - product/ service provided to audience where highly likely they will buy regardless of marketing effort eg heinz
Market orientation - conducts exhaustive market research so that it knows the products and services will have ready made customers upon launch eg cars
Sales orientation - customers would not normally seek out to buy and therefore must be sold somewhat aggressively eg life insurance
What are the 5 factors relate to the attractiveness of a market segment
Measurable - ability to forecast sales potential of the segment
Accessible - ability of firm to make and distribute a product to
Stable - likelihood that segment will persist for long enough to enable to return on investment
Substantial - profits available will give an adequate return on capital employed
Defensible - should be barriers to entry to allow firm some measure of dominance
What is desk research
Gathering and analysis of existing or secondary data
What is positioning
Overall location of a product in a buyers mind in relation to other competing products
Customers are likely to see products according to a variety of factors
What are the categories in the brand positioning matrix
Price of products vs quality of product or service
PH QL - cowboy
PH QH - premium
PL QL - economy
PL QH - bargain
What are the 4 Ps for marketing
Which 3Ps can be added on and what do they relate to
4 Ps - product and service
Product
Place
Promotion
Price
3Ps - service only
People
Processes
Physical evidence
What are the three types of advertising
Informative advertising - raising customer awareness of a product
Persuasive advertising - creating a desire for the product and stimulating actual purchase
Reminding advertising - reminding consumers about a product or organization, reinforcing the knowledge held by potential consumers
How do you calculate PED
How can you interpret the results
PED = % change in demand / % change in price
PED less than 1 = inelastic demand
PED more than 1 = elastic demand
PED 1 = no overall effect on total revenue
What is the difference between transactions marketing and relationship marketing
Transactions marketing gets customers to buy a product or service and satisfies their needs without building a long term relationship with them
Relationship marketing attracts, maintains and enhances customer relationships and create long lasting relationships with customers
What are 3 ways to build stronger bonds with customers for relationship marketing
Loyalty schemes
Personalization programmes eg for you pages
Structural ties eg providing Just Eat terminals in takeaways
