1
Q
Strategic planning
A
- Vision
- Mission
- Formulating marketing strategy
2
Q
Marketing strategy: Brand Image
A
- Identify overall market scope(environmental planning)
- Determine the USP
- Determine the marketing budget
3
Q
Implementing marketing strategy
A
- Market the product/service using marketing mix
- Evaluate the strategy and implementation
4
Q
Marketing strategic importance
A
- Marekting helps retain customers because it reminds them about the business’s product/services
- Marketing helps build the brand image so the business can continue to use this brand to remind the customers of the business
- Creates a marketing buzz
- Marketing allows business to communicate with customers and listen to feedack
5
Q
Factors to consider during Marketing
A
- Social
- Political
- Economical
- Technological
- Cultural
- Legal
6
Q
Three approaches to marketing
A
- Spending more energy marketing the brand than the individual products
- Spenidng more time marketing the individual products than the brand as a whole
- Spending equal efforts on the brand and the individual products
7
Q
Five step approach to marketing strategy
A
- Environmental scanning
- Define the target market and USP
- Define the marketing budget
- Implement the strategy
- Evaluate and correct
8
Q
Step 1
Step 1: Identify the market scope via environmental scan
A
- External factors: Industry, customers, competitors
- Internal factors: SWOT, Resource based analysis, Value chain analysis, USP(eight business functions)
9
Q
Step 1
Industry Analysis
A
The assessment of the market/sector that the business operates in using PESTLE
10
Q
Step 1
Competitor Analysis
A
- The business must assess the competitor’s strengths and weaknesses in order to know the effect they have on the business
- Porter’s Six forces
11
Q
Step 1: Competitor analysis
Market Mapping
A
The position that the competitors are in in the market are plotted on a map tto help the business determine their position in relation to the competitors
12
Q
Step 1
Customer Analysis
A
- Business must keep in mind power of the buyer
- Must look at current and potential buyers to know where needs are not met
- Analysis will help business identify market segmentations
- LSM groupings
13
Q
Step 1
Purpose of LSM groupings
A
- Understand the different market segmentations
- To understand how different groups spend their money to satisfy wants and needs
- Group customers with similar spending habits
14
Q
Step 2: USP
A
- Identifying what the customer needs are and why the customer would buy the business’s product/service over a competitor’s, identifying the USP:
- Cost
- Brand indentity
- Quality
- Incorporation of technology in use of product/service
15
Q
Step 3
Step 3: Determining the marketing budget
A
- The business should view marketing as an investment that wil reap long-term rewards
- The type of marketing/advertisement used will vary in cost
16
Q
Step 4
Step 4: Fully implement marketing strategy
A
- Ensure 7 Ps of marketing are aimed at the consumer
17
Q
A
18
Q
7 Ps of marketing
A
- Product
- Place
- Promotion
- Price
- People
- Physical Evidence
- Process
19
Q
Product
Types of products
A
- Convinience goods: Customers have very little loyalty and make purchase as quickly and easily as possible
- Speciality goods: Customers will spend a lot of time deciding which brand to buy from as these products are expensive and technical
- Select goods: Customer only makes purchase after considering price, quality and brand of different competitors
20
Q
Product
Product life cycle
A
Where a product is in the lifecycle will influence how it is marketed
* Development
* Introduction
* Growth
* Maturity
* Decline/withdrawal
21
Q
Product
Packaging
A
- Packaging may help with storage and protecting the item
- Helps identify manufacturer by displaying trade and brand
- Provides consumer with valuable information on ingredients and contents of the product
- Helps target different market segments through varying size or design
22
Q
Price
Factors to consider when determining price
A
- The price’s of competitors
- The willingness of the buyer to pay that price
- The sensitivity of the consumer to price changes based of the type of product
- The avaliability, price and quality of substitute products
23
Q
Price.
Pricing strategies
A
- Market penetration pricing: Business prices the product really low to attract buyers then increases it once there’s loyalty
- Leader pricing: Business’s reduce the price of one product to attract the purchase of more products
- Promotional pricing: Discounts or price increases that are related to a specific event
- Bulk discounts: Discounts offered to a customer who buys large quantities of the product
- Prestige pricing: Business charges more for a product to create certain expectation or status with the product
- Cost plus pricing: How much is costs to make product is considered n markup is added to price
- Price skimming: product enters market at high price and later reduces
24
Q
Place
Ways manufacturer can get product to consumer
A
- Sell directly to consumer
- Sell to retailer who sells to consumer
- Sell to wholesaler who sells to retailer to break the bulk, who then sells to consumer
- Use intermediaries
25
# Place
Types of retail distribution
* Intensively distributed: When a manufacturer sells to as many retailers as possible, usually convinience goods
* Selectively distributed: When certain products are only available at certain stores
* Exclusively distributed: When expensive or technical products are only sold in specific stores that specialise in the selling of these products
26
# Promotion
Factors to consider when developing promotion strategy
| or marketing communication strategy
* The business should only advertise products as good quality if they actually are like that, otherwise customers won't trust them
* An in-depth knowledge of products must be had before promotion and no incorrect information must be published
* A unique and memorable design must be kept through the marketing campaign so consumers remember the business
* It is illegal to mention or criticise competitors
* Money must be spent effectively and within the budget. Marketing must be seen as an investment rather than an expense
* The advertising medium should be appropriate to the target audience
* The business must be mindful of the impact of social media
27
# Promotion
The impact of social media on Marketing
* Gives consumers a platform to voice concerns and opinions
* Business's must have a social media presence in order to interact with consumers and gain insight into their needs, respond, and share important information
* Could help promote the business's online sales
* Competitions may entice the consumer to engage with the business and offer personal information that could help in geo targeting
* Information spreads quickly on social media so the business must be weary of opinions
28
# Promotion
Advertising
* An impersonal message aimed at the general audience
* The business pays for it so they have total control over the way every detail looks
* Advertisements have to be repeated to be remembered
29
# Promotion
Factors used to evaluate good advertisement
* Engaging: Can the ad stop the consumer from what theyre doing and pay attention
* Credible: Is the information in the ad believable and provable
* Impressionable: Can the ad be remembered in future
* Action: Does the ad prompt the consumer to act
* Relevance: Does the ad promote features that relate to consumer
* Integration: Is the ad part of a series of other messages that add value to brand
* Branding: How well does the ad promote the key brand attributes
30
# Promotion
Personal Sales
* There is interaction between the buyer and the sales person, the buyer will feel more compelled to spend when the sales person shows an interest in them
31
# Promotion
Sales Promotion
* Sampling products, buy-one-get-one-free, and discount coupons are examples
* The instant appeal persuades buyers to make implusive buying decisions
* If overdone, the buyer may see it as desperation and question the quality of the product
32
# Promotion
Publicity
* It is trusted more by consumers because there is a higher degree of credibility since the business did not pay for it
* Business has no control over it
* Internal Publicity: The appearance of the business, the way producuts are displayed and the way in which staff addresses customers creates a certain image and publicity
33
# People
People: service delivery
* The attitude, behaviour, skills, morale, and motivation of employees influence the customer's experience
* The customer's perception of the business's quality will influence their future with the business
* Business must ensure there is sufficient discipline so that employees properly represent business
34
Physical Evidence
* Appearance of stores, appearance of staff, the website, brochures, letterheads, and business cards
* The use of physical evidence will depend in the type of business and their brand
35
Process
* The operating systems and procedures that must be designed and implemennted to ensure the service offered is of good quality
* How quickly and well customers are helped, how customers are greeted, how long they have to wait in queues, or whether the business follows up after services have been rendered
36
# Step 5
Step 5: Evaluation
* After implementing, the business must evaluate for any performance gaps
* This step is used to achieve improved performance
* Helps business set operational targets
37
Influences on Marketing
* CPA
* Ethics in marketing
* Branding
* Buying-decision-model
* Franchising as a form of marketing
38
# Influences on Marketing
CPA
* Right against discriminatory marketing practices
* Right to privacy
* Consumer has the right to choose
* Right to disclosure of information
* Right to fair and responsible marketing
* Right to fair and honest dealings
* Right to fair value, good quality, and safety
39
# Influences on Marketing
CPA: Right against discriminatory marketing practices
Suppliers may not give any preferential treatment to a group of people when setting prices, selling, or marketing
40
# Influences on Marketing
CPA: Right to privacy
Consumers have the right to refuse unwanted direct marketing, the business must stop once the consumer has indicated it is unwanted
41
# Influences on marketing
CPA: The consumer has the right to choose
* A five day cooling off period to cancel a transaction is given to consumers on transactions that were not initiated by them
* No consumer is obliged to buy any additional items linked to their purchase(bundling)
* Consumers have the right to request for authorisation before any repairs or maintenance is carried out
* Suppliers may not charge consumers for quotations or cost estimations
* Consumers have the right to return defective goods and request full refund for these goods within a reasonable time frame
42
# Influences on marketing
CPA: Right to disclosure of information
* The language that contracts are written in must be appropriate for the audience that they are for
* Suppliers must display prices in clear view of the consumer, if two prices are shown for the same thing, the consumer has the right to pay the lower one
43
# Influences on marketing
CPA: Right to fair and responsible marketing
* The supplier may not advertise something to lure the consumer to come to the store but not have the advertised item(bait-marketing)
44
# Influences on marketing
CPA: Right to fair and honest dealings
* Suppliers may not deceive consumers
* Physical force or harrassment may not be used to market, collect payments or recovering goods from consumers
* Suppliers may not overbook or oversell where they accept payment for something they cannot reasonably attain
45
# Influence of marketing
CPA: Right to fair value, good quality, and safety
* Consumer has the right to return an unsafe or defective item within six months and must receive a refund, repair, or replacement
* There is an implied warranty on the quality of goods, the supplier/retailer/producer is committed to the quality of the goods and are to be held liable should the quality be compromised
46
# Influence on Marketing
Ethical vs unethical marketing
| Unethical
* Materialism: Creating a false need
* Giving products deceptive names
* Selling second-hand goods as new
* Competitive advertising
* Discrimination and inappropriate language
* Marketing to children
47
# Ethical vs Unethical
Factors that influence buying decisions
| Stimulus-response model of Buyer behaviour
1. Buyer receives stimulus/influenced by external factors
2. Buyer processes stimuli. They recognise there's an unfulfilled need, Searching for more information: consult with different people, and Evaluate different alternatives and consider a number of different factors personal to them. They eventually make a purchase
3. Consumer's post-purchase behaviour will depend on the experience they had with the brand/product, can either be negative or positive and will influence future purchases
48
What is a brand
* Is what sets a business apart from competitors
* The impression made by employees when interacting with customers
* Reputation of the business
* How stakeholders perceive the values and beliefs of the business
* The appearance and personality of the business
* A combination of the business name and its trade mark
49
Value statement
What the business represents and its core beliefs and philosophies
50
# Branding
Forms of trademark
* Manufacturer's trademark: All products are under the same trademark
* Individual trademark: There is one manufacturer but the different products have different trademarks
* Retailer's trademark: "No name brands" from retail stores
51
# Branding
Brand extension vs Brand stretching
* Brand extension: A business widens their product range with a new product in the same/related market
* Brand stretching: A businesses uses their pre existing brand to launch a new product in a new market
52
# Branding
Advantages of a strong brand
| Consumer perspective
* Consumer can identify business quickly
* They feel assured and familiar buying a popular brand they recognise
* Some brands imply prestige and status
53
# Branding
Advantages of a strong brand
| Marketing perspective
* A strong brand name reduces marketing costs as the products are already well known
* Businesses can charge more for a strong brand than an unknown one
* It is easier to add more products to their range
* Brand preference can help the business dominate a certain share or the market
* Strong trademarks are identifiable to people who are iliterate
* Business is protected from imitation as no one else may use a business's trademark
* Adds credibility to brand
* Creates loyalty
* Retailers want to stock up on the best brands to attract customers
54
# Branding
Critical factors to building a brand
* Innovation
* Clear identity
* Trust
* Distinct voice
* Rekationship with customers
55
# Critical factors to building a brand
Innovation
* Business should reinforce what makes them stand out from competitors
Could be
* Functionality of the product
* Packaging
* Delivery/distribution of product
* Pricing
* Design of website
* Marketing strategies
56
# Critical factors to building a brand
Clear identity
* The customer should have a clear understanding of what the brand represents
* The message used to communicate the identity of the brand should be aimed at the SEM that it's targeted to
57
# Critical factors to building a brand
Trust
* The business must deliver what it represents in a consistent manner because the customer builds trust from past experiences
58
# Critical factors to building a brand
Distinctive voice
* The brand must have strong values and communicate clearly what it stands for
* The internal message is just as important as the external message
* Brand must be memorable
* Brand must have two-way communication
59
# Critical factors to building a brand
Relationship with customers
* Customer must feel a connection between them and the business because they can associate with the brand
60
What is a franchise
A contract between a franchise and a franchisee where the franchisee agrees to distribute the products in line with predetermined terms and conditions set by the franchisor
61
Franchising from marketing perspective
* Helps increase the market awareness of the product as every franchise markets the overall business
* Franchisor must train franchisee thoroughly on procedures and systems and continue the training overtime
* One franchise's behaviour affects all franchises and franchisor
* Franchise must create and maintain competitive advantage through well-defined marketing strategy
*
62
# Franchising
Advantages and disadvantages of franchising
| Franchisor perspective
* Advantage: Franchisor can expand business concept without large amounts of capital and they receieve capital at every sold franchise
* Disadvantages: Continuous training of franchisee may be too demanding, franchisor does not have direct control over franchisee
63
# Franchising
Advantages and disadvantages of franchising
| Franchisee perspective
* Advantages: There is a high chance of success because the franchisor's advice is proven,they can attain capital easier from the bank if the bank knows its for a franchise
* Disadvantages: May feel limited because they are bound by franchise agreement, franchise will fail is franchisee doesnt provide enough support
64
Franchise agreement
* Fanchise fee must be paid lump sum to franchisee, contract is valid for ten years
* Royalties between 5%-10% must be paid to franchisee
* Monthly advertising fee that franchisor uses to do marketing on behalf of all franchisees
* Turnkey operation: When the franchisor helps with setting up, franchisor will charge management fee for their help
Business Studies Grade 12
flashcards
Decks in class (9)
# Cards
-
Chapter 1: Business Environments21
-
Chapter 2 :Overall Organizational Performance9
-
Chapter 4: Human Capital72
-
Chapter 3: Conflict Management10
-
Chapter 5: General Management56
-
Chapter 6: Ethics, Professionalism and Social Responsibility24
-
Chapter 7: Marketing Function64
-
Chapter 8: Investment67
-
Chapter 9: Insurance36
