Chapter #9 - Marketing Flashcards
Marketing
Anticipating, identiying and satisfying customer needs
Marketing involves:
- Identifying
- Anticipating
- Satisfying
Why will an enterprise use marketing to help it achieve its aims?
- To raise customer awarenss of the enterprise and/or products and services
- To increase or maintain brand loyalty
- To improve company image
- To increase or maintain sales, market share, or profit
- To help the enterprise compete
- To reach its target market
How does marketing help customers?
- Provides customers with knowledge about the products so they can make informed decisions. This helps customers save time, so they don’t have to search for info. needed.
- Can save the customer, as they don’t buy the wrong product since they are able to make informed decisions.
- Raises awarness of products customers did not know were available to buy.
Customer retention
Measuring how loyal customers are to an enterprise (and likelihood of them buying its products or services again).
Why is it important for an enterprise to retain customers?
It is important to keep existingcustomers because it is more cost-effective than attracting knew ones.
How can retaining customers reduce marketing expenses?
Building customer relationships makes it easier to meet their needs, but attracting them may require costly, widespread marketing.
What is the advantage of maintaining brand loyalty?
Increase the chance of repeat business and defending sales against new competitors.
Customer satisfaction
The extent to which customers are pleased with the products and services provides by an enterprise.
Why is it important to know what customers want?
Because it allows the enterprise to adapt to please its customers and to know the opinions of lost and potential customers to find out what it could or should do to attract/reattract their custom. However, measuring customers satisfaction can be difficult.
What are the methods of measuring customer satisfaction
- Number of sales
- Number of complaints and returned products
- Customer questionnaires and survey
- Suggestion boxes and comment cards
- Mystery shopper programmes
- Focuse groups
What are ways of retainig customers?
- Good/improved quality products
- New/wider range of products + desighns
- Good customer service by giving persosonal attention to the needs of customers by trainig employees to be helpful + knowledgeable
- Proviodign after-sales services (credit facilities, delivery, product guarentess)
- Resolving complaints fast and effectivley wit refunds/exchange
- Detailed info. about products
- Rewarding loyalty
- Asking fro feedback
How can enterprises reward loyalty?
By offering loyalty cards, discounts, special offers and reward schemes.
What are two categories that merketing methods can fall into?
- Informative
- Persuasive
What does informative marketing achieve?
It gives customers info. about products and services.
What does persuasive marketing achieve?
Desighned to attract attention and connvince customers that they need its products.
What are the different methods of marketing?
- Leaflets and flyers
- Posters and billboards
- Online communication and soial media
- Sponsorship
- Newspapers
- Television
- Radio
- Cinema
- Magazines
- Newsletters
- Word of mouth
- Announcements
Advantages and disadvantages of using leaflets and flyers as a method of market research
ADVANTAGES:
* Simple, easy and cheap to produce
* Can be kept for future reference by customers
DISADVANTAGES:
* Often seen as junk mail
* Ignored or thrown away
* Pollustion issue caused by litter
Advantages and disadvantages of using posters and billboards as a method of market research
ADVANTAGES:
* Good visual impact
* Seen numerous times
* Can target people in a certain location
DISADVANTAGES:
* Easy to miss as only for a few secs as people pass by
* No detailed info.
* Easily damaged (graphitie)
Advantages and disadvantages of using online communication and social media as a method of market research
ADVANTAGES:
* Can have 2 way communication w/customers
* Larger potential audience (can be accessed in most countries)
* Easy to update and mainatin sites
DISADVANTAGES:
* People must have internet access to use
* Easy to ignore/block out adverts
* Can be easy to miss (large number of sites + platforms exist)
Advantages and disadvantages of using sponsorship as a method of market research
ADVANTAGES:
* Association with another party can increase awarness amongst target market
DISADVANTAGES:
* Negative publicity affects both parties
* Cost of sponsorship can be high
Advantages and disadvantages of using newspapers as a method of market research
ADVANTAGES:
* Can reach a large number of people at same time
* Can be kept for future reference
DISADVANTAGES:
* Can be expensive depending on size and position of advert and weather its coloured or black abd white
* Not everyone reads newspapers
Advantages and disadvantages of using television as a method of market research
ADVANTAGES:
* Can reach large numbers of people
* By selecting certain times + programmes can target audiences
* Color, sound, and motion helps attract attention
DISADVANTAGES:
* Expensive to produce advert and pay TV company to show
* Cannot change message easily
* Realtively easy to ignore or skip adverts by changing channel
Advantages and disadvantages of using radio as a method of market research
ADVANTAGES:
* Can be used to target particular audiences or areas
* Cheaper than television
DISADVANTAGES:
* Only have sound to attracte attention
* Advert has to be remembered as no doc. to refer to.
Advantages and disadvantages of using cinema as a method of market research
ADVANTAGES:
* Uses sound, color, and motion to create impact
* Potential customers can be targeted by film shown
DISADVANTAGES:
* Target market likely to be small
* People may only see advert once
* High cost to produce show advert
Advantages and disadvantages of using magazines as a method of market research
ADVANTAGES:
* Can be used to target a local or national specific audience
DISADVENTAGES:
* Can be expensive based on choice of magazine, size of advert and if color is used
Advantages and disadvantages of using nwsletters as a method of market research
ADVANATGES:
* Can provide customers regular updates on products
* Can posted to individuals, deliverd to a whole area, or placed for people to collect
DISADVANTAGES:
* Customers may be unwilling to provide contact details
* Target market may not read newsletters
* Time and cost tp produce on a regular basis
Advantages and disadvantages of using word of mouth as a method of market research
ADVANTAGES:
* Free, personal, and honest feedback
DIADVANTAGES:
* No control over what customesr say
Advantages and disadvantages of using announcemements as a method of market research
ADVANTAGES:
* Relatively simple to arrange
* Can target people in a given location
DISADVANTAGES:
* Target market likely to be small
* Not everyone listens
What does identifying customer needs involve?
Finding out what customers want + need through market research
What does anticipating custumer needs involve?
Customers demand can change, so its important to look ahead at the next “big thing”. This allows an enterprise to respond more quickly to changing tastes and fashions.
What does satisfying customer needs involve?
Providing products where and when they are wnted, and for a prce customers are willing to pay
Sponsorship
An enterprise paying or offering something in return for having its name linked with an event, person or group.
What factors should you consider when choosing a method of marketing?
- Cost of method
- How much money is available to spend
- Number of potential customers which can be reached
- Ease of distribution
- Who target market is
- Type of product
- Actions of competition
What are challenges in measuring customer satisfaction?
- Measuring customer satisfaction can be tricky because it’s based on people’s feelings and opinions, which can be subjective.
- Some customers may not express their dissatisfaction, so it’s essential to encourage feedback.
- People may not always tell the truth or provide feedback, making it difficult to get accurate information.
How is keeping existing customers more cost effective?
- Returning customers provide a stable income, making cash flow planning easier.
- Helps etablish and maintain brand loyalty.
- Loyal customers tend to spend more per visit.
- Good word-of-mouth advertising, which can lead to an increase in sales and potentially your market share.
