Chapter 11: Marketing Flashcards
What is a Product-Orientated approach to Marketing?
A Product-oriented approach focuses on the skills, knowledge, and systems needed to produce a specific product, with research concentrated on the product and its characteristics.
What is a Market-Orientated approach to Marketing?
A market-orientated approach focuses on satisfying the needs and wants of customers, emphasizing ongoing market research to identify changes in consumer preferences.
What are the key components of the Marketing process?
Sales, Market research and development, Logistics/Distribution, Promotion.
What is the purpose of Market research and development?
To understand consumer behavior patterns.
What does Promotion entail in marketing?
Informing the target market about the product/service or brand offered by the business.
What is Logistics/Distribution in marketing?
The movement of product/service to ensure timely delivery to the desired market.
What are Sales in the context of marketing?
The process of transferring ownership of the product from the business to the customer.
What are the aims of the marketing function?
Creating and maintaining a competitive advantage, developing new products/services, and identifying new markets for growth and profitability.
What is Market Segmentation?
Dividing the overall market into different groups to focus marketing resources on customers with similar characteristics.
What are examples of Market segments?
Cultural, income groups, similar ages, geographical regions, lifestyle, gender, product use.
What is the Marketing Mix?
The combination of elements to effectively market a business’s product/service.
What are the elements of the marketing mix?
Price, Place, Product, Promotion/marketing communication.
What are Consumer goods?
Goods bought by consumers, such as food, clothing, furniture, and computers.
What are Consumer services?
Services purchased by consumers for personal use, such as education, hairdressing, and banking.
What are Producer goods?
Goods sold to other businesses for day-to-day operations or further manufacturing.
What are Producer services?
Services that assist businesses with daily operations, such as insurance, banking, and accounting.
What is a brand?
The combination of product features and the business image.
What makes a product successful?
It satisfies needs/wants, has a competitive advantage, good design, and appropriate cost.
What are the steps in Developing a product?
- Generate ideas
- Research/filter ideas
- Perform feasibility and viability studies
- Build a prototype
- Test the product in the market
- Launch the product.
What are Feasibility and viability studies?
Feasibility determines if an idea is workable; viability assesses if it can generate sustainable profits.
What is Market testing?
Manufacturing the product or testing the service after building a prototype.
What are the stages of the Product Life Cycle?
Development, Introduction, Growth, Maturity, Decline/withdrawal.
What happens during the Maturity phase of the Product Life Cycle?
The business usually starts to make a profit as development costs are recovered.
How can the Life Cycle of a product/service be extended?
Through price adjustments, promotion, new variations, distribution channels, and new markets.
