Chapter 16 Flashcards
The link between marketing objectives and corporate objectives
L
Marketing objectives
These are the goals set for the marketing department to help the business achieve its overall objectives
Factors influencing the supply and demand for the products/services of a business
L
How markets may differ: consumer/ producer markets
G
How markets may differ: regional/ international markets
Local: supply product to consumers in the area
Regional: cover a larger geographical area than local and have expanded from this to regional
National: expanded from regional to the whole country
International: expanded from their country to several countries
Implications of changes in market share
D
Implications of changes in market growth
S
Classifications of products
Ff
How marketing might differ for different types of goods and services
Aa
Different types of market segmentation
- Geographic
- Demographic
- Psychographic
Demographic market segemtations?
Separating the population based off of things like:
Their age
Their ethnicity
Their social class
Their income level
Psychographic market segmentation?
This is separating people based off of things like:
Their beliefs
Their likes/ tastes
What are some management functions related to marketing?
- Market research
- Packaging
- Product design
- Pricing
- Advertising
- Distribution
- Customer Service
What re some examples of marketing objectives?
Market share increase
Increase percentage of returning customers
Increase total sales in volume or in value
Increase brand identity
What is marketing used to do?
Turn customer wants into customer needs
By identifying the target’s and satisfying their needs better than competitors do
What are some things that are very relevant to marketing decisions?
Competition Niche or mass market Brand image Packaging Pricing Place Promotion Segmentation
What is a market?
A market is a place or mechanism where buyers and sellers meet to engage in exchange
A group of customers interested in a product and have the resources to purchase it as well as it being permitted by the law
What are human needs?
They are basic living requirements for us humans
Food, water , shelter
What are wants?
These are things we do not have a true need for and can live without
What is satisfaction?
It is whether you are or aren’t happy with the product you bought
What is value?
This is more about whether your expectations of the product, for the money spent, have been fulfilled or not
what are some marketing objective examples?
- increasing market share
- increasing total sales
- increasing customer satisfaction
- increasing brand identity
- increasing number of returning customers
What is market orientation?
This is an outward looking approach that involves basing product decisions on consumers’ demand, as established by market research
What are some benefits of market orientation?
- less chance of a product failing
- more sustainable business
- constant customer feedback to help adapt to demand changes
Factors influencing the demand of product
- promotion by a celebrity
- advertising
- change in weather
- wants becoming needs
- economic crisis
- technology
- pricing
Factors influencing the supply of a product
-popularity
-availability of materials
-shortages
-overproduction
-economic crisis
-price
-
Interactions between price supply and demand
A
Consumer/ producer markets
A
National markets
A
Regional markets
A
What is product orientation?
It is an inward looking approach that focuses on making products that can be made by the business and then sold (releasing own product)
Why are product orientated business still a thing?
- Invention and development of new products creates niches
2. They focus on high quality product and offer constant choice and range for consumers
What is asset led marketing?
an approach to marketing that bases strategy on the firms existing strength and assets instead of purely on what the customer wants
Why is market size important?
- Managers assessing whether entering is a good decision
- Calculation of market share
- Roth and decline of market can be identified
What is non-price competition?
This is when business compete in ways except the pricing of their products.
E.g. consumer service
What is a direct competitor?
A business that provide the same or very similar foods or services
What are important marketing concepts?
- creating and added value
- product differentiation
- niche marketing vs mass marketing
- market segmentation
Why is added and creating value important to marketing?
If businesses are able to create more and attain more added value, their is greater potential profit for the business
Marketing strategies can incorporate this
E.g. makeup unique packaging added value
Why is mass and niche marketing an important marketing concept?
Their marketing should be personalised to the market they’re facing so they can target them in the most successful possible way
Advantages of niche marketing:
- survival and thriving of smaller firms
- filling gap of an unexploited niche market
Advantages of mass marketing/ disadvantages of niche marketing:
- niche dont allow for economies of scale
- mass marketing strategies are less risky as consumer changes affect niche more
What are the 3 types of market segmentation?
- geographical
- demographic
- physchographic
Advantages of market segmentation:
- define targets and personalise it to them
- price discrimination can be used
- helps in identifying market gaps
Limitations of market segmentation:
- high promotional costs for different products and their different segments
- lots of market research needed
- research and development costs
