Chapter 14: Marketing Flashcards
A marketing strategy consists of:
- The selection and analysis of a target market
- The creation and maintenance of an appropriate marketing mix.
3 Common Marketing mix approaches
- Undifferentiated Approach
- Concentrated Market Segmentation Approach
- Differentiated Market Segmentation approach
Concentrated market segmentation
A single marketing mix is directed at a single market segment.
Differentiated market segmentation
Multiple marketing mixes are focused on multiple market segments.
Four important elements of marketing to reach a target market:
- Product
- Price
- Distribution
- Promotion
The product marketing element
Decisions about the product’s design, brand name, packaging, warranties and the like.
The pricing marketing element
Concerned with base prices and discounts.
Pricing decisions are intended to achieve particular goals, such as maximising profit or to make room for new models.
The distribution marketing element
Involves transportation and storage as well as the selection of intermediaries.
The promotion marketing element
Focussed on providing information to target markets.
Major forms of promotion are advertising, personal selling, sales promotion and public relations.
Forces that make up the external marketing environment:
- Economic forces
- Sociocultural forces
- Political forces
- Competitive forces
- Legal and regulatory forces
- Technological forces
Economic force of the marketing environment
The effects of economic conditions on customers’ ability and willingness to buy.
Sociocultural force of the marketing environment
Influences in a society and its culture that result in changes in attitudes, beliefs, norms, customs and lifestyles.
Political force of the marketing environment
Influences that arise through the actions of elected and appointed officials.
Competitive force of the marketing environment
The actions of competitors, who are in the process of implementing their own marketing plans.
Legal and regulatory force of the marketing environment
Laws that protect consumers and competition and government regulations that affect marketing.
