Chapter 3.2 Flashcards
Explain the quantity gap
-Its when manufacturers prefer to sell large quantities yet consumers prefer to buy in small quantities
Elaborate the assortment gap
Its when manufacturers make a limited line of products due to it being cost-effective and efficient however consumers prefer to have a wide variety to choose from
List the marketing activities
-Primary marketing activities
-Auxiliary marketing activities
-Exchange marketing activities
Explain Primary marketing activities
Transport
-The purpose being to deliver the product to the consumer in the quickest and safest way
Elaborate auxiliary marketing activities
-Obtaining and supplying information
The seller must know who and where the potential buyers are – Market Research
Supply information to potential buyers via advertising and personal selling
-Standardisation and grading
Facilitates the buying process, making it easier for the buyer to buy
-Storage
Activity that can close the time gap
-Financing
Costs incurred in the transfer of products and services from sellers to buyers
Costs usually financed by banks
-Risk-taking
Risk of loss or damage - insurance
What is The concept of exchange
People give up something to receive something that they would rather have
What are the exchange marketing activities
Buying and selling
List the variables of the marketing process / The marketing mix
-Product
-Place
-Promotion
-price
What is the main objective of the marketing mix or the variables of the marketing process (offering)
It is the maximisation of profitability in the long term
What is the main objective of the target market
-Total need satisfaction
Why is it important for management to be involved in the interaction of the market offering and its environment
The business product development and its market fall within the domain of marketing which necessitates its involvement in the development of the business mission and strategy and its involvement with the external environment
What are the requirements placed by the marketing concept on management?
The involvement in the interaction between the business and its environment
Top management is then required to determine the needs of the customer and satisfy them
What are the requirements to setting the right price
-Similar products
-Other products in your line
-Profit for your dealers
-Reach set profit
Define market price
price consumer is prepared to pay to be able to utilise the need-satisfying benefits a product or service can offer.
What are the different marketing communication tools
Advertising
Sales promotion
Personal selling
Publicity
List the goals of the marketing communication
Inform
Persuade
Remind
What are the stages in the product life cycle
-Introduction
-Growth
-Maturity
-Decline
Describe Marketing in the introductory
phase
Main objective: to generate awareness of the product in the target segment and to promote trial.
List and describe the main pricing strategies
Rapid “skimming” – high price and aggressive marketing
Low “skimming” – high price and
low marketing expenditure
Rapid penetration – low price and high expenditure on marketing communication
Slow penetration strategy – low price and low expenditure on marketing communication
Describe Marketing in the growth
phase
-Main objective: to build brand preference and loyalty, and increase the number of outlets stocking the product.
-Characterised by strong growth in sales in the target market due to an increase in repurchases and purchases by the early majority of consumers.
Also by an increase in the number of competitors so marketer has to take defensive steps.
Describe Marketing in the maturity phase
-Sales growth and demand slow down
-Improved products that satisfy
the same needs are launched.
-Consider product differentiation and modification or expansion of product range
Describe Marketing in the decline phase
-Rapid decline in sales in the target market.
-Management must decide
whether to:
-Withdraw marketing support
-Eliminate the product
-Initiate a phased withdrawal
-Sell the product
