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mnb > Chapter 13 Marketing Mng > Flashcards

Chapter 13 Marketing Mng Flashcards

1
Q

The marketing process consists of?

A 
Environmental scanning (market research)
Development of market offering
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2
Q

What is the objective with misleading advertisements and unethical sales methods?

A

To sell products at any cost

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3
Q

What is the Marketing Concept?

A

It is the ethical code according to which the marketing task is performed.

It directs all the marketing decisions about products,
distribution methods,
marketing communication
and price determination.

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4
Q

What are the 4 principals of the Marketing Concept?

A

1) Profitability
2) Consumer Orientation
3) Social Responsibility
4) Organisational integration

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5
Q

What is the primary objective of businesses in a freemarket system?

A

Maximise profitability

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6
Q

What is the Principle of Social Responsibility about?

A

Besides a responsibility towards the consumers of its products, marketing management also has a responsibility towards the community in which it operates.

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7
Q

What is the Principle of organisational integration about?

A

Close cooperation between marketing, operational, purchasing and all other functions of the business
in pursuit of the business’
mission + objectives.

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8
Q

Define marketing.

A

Consists of all management tasks and decisions
directed at successfully meeting opportunities and threats
in a dynamic environment,
by effectively developing and transferring
a need-satisfying market offering
to consumers in such a way
that the objectives of the business, the consumer and society will be achieved

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9
Q

Name the 4 variables used for decision making in Marketing Management.

A

The 4 P’s

1) product itself
2) place it is offerred
3) promotion - comm methods used to inform consumers
4) the price

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10
Q

Market research includes 2 broad types of research. Name them.

A

1) Problem Identification research

2) Problem Solving research

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11
Q

What is the information used for in marketing research?

A

To identify and define opportunities and problems that marketing can tackle.

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12
Q

What is the most commonly recognised scientific method of doing market research?

A

Survey method

This can be done through a questionnaire or interview

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13
Q

Name the 12 steps in conducting a survey?

A

1) Define research problem
2) Identify research objective
3) Investigate secondary resources
4) Compile questionnaire
5) pre-test questionnaire
6) Select sample for distribution
7) training of fieldworkers
8) analysis of data collected
9) interpret info
10) report and recommendations
11) management evaluation
12) implementation of mng decision

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14
Q

What is the purpose of pre-testing the questionnaire in Market Research?

A
  • does all ? address issues investigated
  • time taken to complete
  • identify any problems
  • ? clear and understandable
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15
Q

What is the purpose of Market Forecast?

A

To establish the potential profit of an opportunity to be exploited. viability

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16
Q

What can be said about consumer behaviour?

A

Not all consumers are the same but all consumers are unpredictable.

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17
Q

What does Consumer behaviour refer to?

A

The behaviour patterns of decision making units directly involved in the purchase,
decision making preceding the purchase
and determining these patterns.

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18
Q

What is referred to by Overt Acts in consumer behaviour?

A

Acts that can be observed by people

Eg. Enjoying it, looking at it, throwing it away.

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19
Q

What is referred to in Covert behaviour in terms of consumer behaviour?

A

Behaviour that cannot be seen

Eg. Financial position of consumer, weighing merits of brands against each other

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20
Q

Why do Marketers need to know why consumers behave as they do!

A

Because then consumer behaviour can be explained, influenced and predicted

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21
Q

Which 6 individual factors influence consumer decision making?

A 
Motivation
Attitude
Perception
Learning ability
Personality
Lifestyle
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22
Q

Which 4 group factors influence consumer decision making?

A

Family
Reference group
Opinion leaders
Cultural group

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23
Q

What are the 2 determinants of consumer behaviour?

A

Individual factors

Group factors

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24
Q

What is the driving force behind all behaviour patterns in consumers?

A

Needs - also called motives

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25
Q

What does consumers’ perception determine?

A

What they pay attention to and what excites their interest.

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26
Q

Name the 4 markets in terms of market segmentation, in which a country can be subdivided.

A

Consumer market
Industrial market
Resale market
Government market

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27
Q

Name the 3 market-segmentation approaches.

A

1) Total market approach (1 market strategy for whole of market)
2) Single-segmented approach (1 market strategy for more than one target market)
3) Multi-segmented approach ( many market strategies for many diff target markets)

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28
Q

Name the 4 criteria for market segmentation.

A

Geographic criteria (place, density, climate)

Demographic criteria (age, gender)

Psychographic (lifestyle, personality, social class)

Behavioural criteria (occation, usage rate, loyalty status, attitude to product)

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29
Q

What is meant with”Reverse price sensitivity”?

A

Consumers react negatively when a price is perceived to be too low. It is immediately assumed that if price is low then quality will also be low.

30
Q

What does a consumer product consist of?

A

Core product (tech + physical qualities)

Formal product (in addition to product - smart packaging)

Need satisfying product (free delivery, repair service)

Total product (all abovementioned)

31
Q

Consumer products can be divided into:

A

Durable and

Non - durable products

32
Q

After durable and non-durable products, what other 3 classifications can be given to consumer goods?

A

Convenience products - snacks, magazines
Shopping products - clothing, jewellery
Speciality products - Mercedes

33
Q

What are the 5 advantages offered by the use of brands?

A

1) facilitate identification
2) assurance of quality
3) offer degree of protection
4) facilitate decision making
5) serve as warning against other products

34
Q

Brands are registered under which Act?

A

Trademarks Act no 194 of 1993

35
Q

What are the 6 advantages of using brands for the marketer?

A

1) foundation of comm strategy
2) promote loyalty
3) make price comparisons difficult
4) inseparable part of product image
5) make product differentiation possible
6) facilitate expansion of product ranges

36
Q

What are the 3 phases of brand loyalty?

A

Brand recognition
Brand preference
Brand insistence

37
Q

What is Individual / Family brands?

A

This is where marketers have individual brands for each of their products.
Eg. Lux, Dove

Family brands is where a brand is allocated to a whole range of specific products
Eg Heinz Soup, Heinz Tomato sauce

38
Q

In terms of the characteristics of a Manufacturing brand, who does it see as its target market?

A

Quality conscious buyer

Brand loyal

39
Q

In terms of the characteristics of a Dealer brand, who does it see as its target market?

A

The price conscious , loyal buyer

40
Q

In terms of the characteristics of a Generic brand, who does it see as its target market?

A

The price conscious
Discriminating buyer
Large family
Accepts lower quality

41
Q

In terms of the characteristics of a Manufacturing brand, how is its products viewed?

A

Well-known product
Strict quality control
Clearly distinguishable brands
Wide range of products

42
Q

In terms of the characteristics of a Dealer brand, how is its products viewed?

A

Mostly same as manufacturing brand except less known

Limited number of products in range

43
Q

In terms of the characteristics of a Generic brand, how is its products viewed?

A

Poorer quality
Less emphasis on packaging and labelling
Few product items

44
Q

In terms of the characteristics of a Manufacturing brand, how is its prices perceived?

A

Hi price

Controlled by manufacturer

45
Q

In terms of the characteristics of a Dealer brand, how is its prices perceived?

A

Price controlled by retailer

46
Q

In terms of the characteristics of a Generic brand, how is its prices perceived?

A

Lower price

Controlled by retailer

47
Q

In terms of the characteristics of a Manufacturing brand, how is its distribution perceived?

A

Generally available at all large retail shops

48
Q

In terms of the characteristics of a Dealer brand, how is its distribution perceived?

A

Generally only available at branches of a specific retailer

49
Q

In terms of the characteristics of a Generic brand, how is its distribution perceived?

A

Generally only available at branches of a specific retailer

50
Q

In terms of the characteristics of a Manufacturing brand, how is its Marketing communication perceived?

A

Campaigns launched by manufacturer

51
Q

In terms of the characteristics of a Dealer brand, how is its Marketing communication perceived?

A

Campaigns launched by relevant retailer

Most favourable shelf arrangement

52
Q

In terms of the characteristics of a Generic brand, how is its Marketing communication perceived?

A

Sales promotion at point of sale

53
Q

Name some of the qualities Packaging should have.

A
  • should be able to handle product without damaging product inside
  • packaging should promote sales
  • should be distinguishable between other products
  • bright colours + striking design attract consumer attention
54
Q

Name the 3 types of different packaging .

A

Family packaging - all products in range look more or less identical

Speciality packaging - gives image of exclusivity
Popular as gifts - perfume, fancy chocolates

Reusable Packaging - gives the impression of a free container. Can be used later again - ice cream

55
Q

What is understood with Product Obsolescence?

A

A product may intentionally be made technically difficult / psychologically obsolete or have a short lifespan to compel the consumer to make repeat purchases.

Eg batteries (short lifespan)
      Introduction of New model (psychological obsolete)
56
Q

Name the 7 phases in New Product Design.

A

Phase 1 - Idea developed

Phase 2 - ideas screened to financial criteria

Phase 3 - nor viable ideas eliminated

Phase 4 - prototype

Phase 5 - marketing strategy (position in market, package design, price, distribution)

Phase 6 - test marketing on small segment of market

Phase 7 - product introduced to market

57
Q

What is meant with a products life cycle?

A 
In respect of sales / profits a product goes through 4 phases from the 
Introduction phase
Growth phase
Maturity phase
Declining phase

Not all products have the same life cycle

58
Q

What is the meaning of price?

A

It is regarded as the exchange value of a product or service
and is closely linked to concepts such as benefit and value

The value of a product is determined by its benefit to the consumer.

59
Q

Name the 3 phases in the Price determination process.

A

Phase 1 - determination of cost price

Phase 2 - determination of market price (price consumer is prepared to pay)

Phase 3 - determination of target price (price that will realise the target rate of return)

60
Q

Name the 6 adaptations of the final price.

A 
Skimming prices
Market-penetration prices
Market-price level
Leader prices
Odd prices
Bait prices
61
Q

What is meant with Skimming Prices?

A

If the product is a new innovation and therefore a unique product consumers will be prepared to pay higher prices.

As a new product, higher prices will also allow the development costs of the product to be recovered quicker.

62
Q

What is meant with Market-penetration

Prices?

A

Here the initial price is lower in the hope to penetrate the market more rapidly.

63
Q

What is meant with Market-price level?

A

This strategy is followed where the is numerous similar products and competition.

64
Q

What is meant with Leader Prices?

A

These are special offers.

Used by retailers to lure consumers to their shops.

65
Q

What is meant with odd prices?

A

The final price of products have an odd number. Even prices are avoided as consumers are more likely to accept odd prices.
The odd price looks smaller.

66
Q

What is meant with Bait prices?

A

These are unethical
Avoided by honest retailers
Widely advertised but not intend to sell at bait price. Normally there is no stock and consumer is forced to buy another product at higher price.

67
Q

Which activities does the Physical Distribution of products entail?

A 
Transportation
Storage
Inventory Holding
Receipt and dispatch
Packaging
Administration
Ordering
68
Q

What is understood under the Marketing Communication process?

A

The process of:
Informing
Persuading
Reminding

the consumer

69
Q

What is the 6 combination elements marketers use to communicate with consumers?

A 
Advertising
Personal selling (like Tupperware)
Direct marketing (verimark)
Sales promotions
Publicity
Public relations
70
Q

What are the 3 main components of an advertisement?

A

Heading (attract attention + deliver main message)

Illustration (photo or drawing of product)

Copy (info about product + need satisfaction it can provide.

71
Q

Crisis management forms part of “special events” under Public Relations. What must be in place to limit damage for a company?

A

A Crisis plan

72
Q

Market research is divided in 2 broad types.

Name them.

A

Problem identification

  • Market-potential research
  • Market-share research
  • image research
  • market-characteristic research
  • sales-analysis research
  • forecasting research
  • business-trends research

Problem-solving Research:

  • segmentation Research
  • product research
  • pricing research
  • Promotion research
  • distribution- research

mnb (6 decks)

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