Chapter 6 Flashcards
Marketing
Definition
The management process responsible for identifying, anticipating and satisfying customer requirements, profitably,
Producing profitable sales, and driving revenue growth
Steps in implementing a strategic marketing plan
Step one – identify the organisations, corporate objectives and the role of marketing and playing achieving them
Step two – carry out an audit of the external environment – PESTEL
STEP, THREE, - CARRY OUT AN AUDIT OF THE INTERNAL STRENGTHS AND WEAKNESSES OF THE ORGANISATION
SET FOur – SET OUT THE MARKETING OBJECTIVES – SMART
STEP FIVE, - IMPLEMENT THE PLAN AND COMMUNICATE IT TO THE WORKFORCE
STEP SIX – REVIEW REGULARLY
The three levels of the environment in which an organisation operates 
macro environment – can affect the organisation that is outside of the Control
Micro environment – can affect the organisation for the organisation can influence it
Internal environment – all internal factors that are potentially controllable
PESTEL
6 factors that enable an organisation to examine factors that influence it
Political
Economic
Social
Technological
Environmental
Legal
The marketing mix
Definition

A company’s marketing mix is the combination of products, pricing, places and promotions it uses to differentiate itself from the competition.
The four peas of the marketing mix
Product
Place
Price
Promotion
How to service organisations differ from product delivery?
Intangibility – there is no physical products.
Immediate consumption – the service must be consumed there, and then
Inventory management – do not have the same inventory requirements as manufacturing
Involvement of the consumer – the consumer is a part of the service.
The three peas relevant for companies in the service industry
People – standardisation is difficult making hard to achieve heterogeneity 
Process dash and efficient, user-friendly process will ensure repeat business
Physical evidence – the feel of the place in terms of ambience, atmosphere and quality – looking for something tangible to the service will be what is expected
Formulating the marketing mix
Different considerations
Seasonal products.
The potential difference between the end consumer and the customer.
The mix may change is the marketing environment changes over time e.g. changes in technology.
The aims of market research
Total market potential
Area market potential
Total industry sales
Relative market shares
Market research
Primary data
Data collected for the specific purposes of the research in question
Market research
Secondary data
The data is already generally available, e.g. government data, trade journals, et cetera
Market segmentation
Kotler
Segments must be
Measurable
Accessible
Substantial
Undifferentiated, marketing
The delivery of a single product in the market place with very little concern for segment analysis
Differentiated, marketing
Where a company makes several products each aimed at a separate segment
Concentrated marketing
Where the company focuses on a single segment for each product, hoping to meet the needs of that group better than any other organisation
Post modern marketing
Creating customers messages for customers it aims to identify the way individual customers prefer to receive marketing messages.
Reject mess, marketing
Focuses on customising a message to individuals.
Flexible and interactive.
Boston consulting group matrix
To help companies analyse their business units or product lines, a.k.a. the product portfolio
Zero level distribution channel
Where is the manufacturer deals directly with a customer?
One level channel
The distribution channel consist of the manufacture retail and consumer, i.e. only one intermediate tree
Penetration pricing
Setting prices, low enough to stimulate rapid growth in market share
Price skimming
The setting of a high price for a new product in order to benefit from early adopters
Selective pricing
Setting prices to reflect demand, e.g. off-peak rail fares
Predatory pricing
Pricing deliberately to damaged competition
Dynamic pricing
Pricing that fluctuates with up-to-the-minute supply and demand information for customer activity 
Pull marketing
To establish a loyal following and draw customers to the product, for example, mass media, promotions and referrals through word-of-mouth online and off-line
Push marketing
To promote products by pushing them onto people, for example, sales promotions within supermarkets
More concerned with short-term sales
Perceived quality pricing
 An increase in price due to the perception of quality 
Steps involved in identify different market segments
Market research
Position products,
Identify targets
Promotional activity
Social marketing
A process that applies marketing principles and techniques to create communicate and deliver value in order to influence targets, audience behaviours, that benefit society (public health, safety, the environment, and communities)
