Influences On Marketing Flashcards
What are the sociocultural influences on marketing?
Social class
Culture and aubculture
Family and res
Reference (peer groups)
What are the psychological influences on marketing?
Perceptions Motives Attitudes Personality and self image Learning
What are the economical influences on marketing?
Booms
Reccession
What are the government influences on marketing?
Laws
Regulations
Define psychological factors
- Influences which affect his or her buying behaviour
* including perception, motives, attitudes, personality and self image and learning
Explain perception in psychological influences
Perception is the process which people select organize and interpret information to create meaning
Everyone has different interpretations for example buying an expensive car may be a sign of achivement for one person but seen as ostenatious for the other
Explain motives in psychological factors
- motive is the reason that makes an individual do something
- main motives which i fluence customers choice include comfort, health, safety and the approval of others
- business use effective marketing approaches to delineate the product satisfying customers needs and wants
Explain attitudes in psychological factors
Attitude is a persons overall feeling about an object or activity.
Negative customer attitude = change in business strategies
Explain personality and self image in psychological factors
An individuals personality is the collection of all the behaviours and characteristics that make up that person. Personality influences what customer will buy.
Self image relates to how a person views himself or herself. Marketers express buyers identity by highlightinf the image value of their products
Explain learning in psycholgocial factors
Learning refers to changes in an individuals behaviour caused by information and experiences
Business assists customers to learn about then to encourage brand loyalty and purchases
Define sociocultural influences
Sociocultural influences are internal forces exerted by other people and groups that affect customer behaviour
4 main factors include
- social class
- culture and sub culture
- family and roles
- reference peer groups
Explain socio class in socio cultural influences
Socio class influences the type, quality and quantity of products a customer buys. People from high socioeconomic background may purchase products to be prestogious. Refers to a persons relaive rank in society based on education, income or occupation.
Explain culture in socio cultural influences
Culture is all the learned values, beliefs, behaviours and traditions shared by a society.
Explain family and roles in sociocultural influences
Family members influence products purchased
Research shows that women make buying decisions related to health care products, food etc.
Explain reference peer groups in sociocultural factors
A reference or peer group is a group of people with whom a person closely identifies, adipting their attitudes values and beliefs.
Customer buying behaviour may change to natch rest of their prrr groups attitudes.
Define economic influences
Economic influences are forces within the economy which may alter customer behaviour two mains factors include boom and reccession
Define boom in economic influences
A boom is a period of low unemployment and rising incomes. Customers are optimistic about the future and are willing to spend because they feel secure of their jobs and income.
Define reccession in economic influences
Recessions refers to rising employment and decreasing income. Customers lack confidence to spend due to inssecurity of their jobs and lack of confidence in the economy
Define government influences
Government have laws and legislation which may affect buying behaviour for example plain packaging of cigarettes has decreased amount of smokers and anti smoking ads
What are consumer laws?
Consumer laws are laws introduced by the government to improve protection and right of customers
What is the ACL?
ACL stands for australian consumer law which is a single national consumer law introduced in 2011 to replace 17 existing laws
What are the purposes of the conpetition and consumer act 2010?
- Protect consumers against undesirable practices such as misrepresenting product, place of production and deceptive advertising
- To regulate certain trade practices that restrict competition. Government ensures that number of businesses are operating at any one time in the same market to encourage competition
What is classified as deceptive advertising?
Fine print - small font
Before and after ads - before images worsened and after images enhanced
Tests and surveys - invalid information
Packaging - size and shape is misleading chips with air
Country of origin - claims to be made in australia when not
Special offer - implication that it is a special offer when always avaliable
Bait and switch advertising is..
Advertising few products with reduced price to attract customers, when products run out customers are directed to high priced items
What is green washing?
Greenwashing is the practice of makinf a misleading or deceptive claim about the environmental benefits of a product to represent a positive image
What is price discrimination?
Price discrimination is the settibg of different prices for a product in seperate markets. Difference in price is possible due to location and product differentiation
Define consumer guarantee
Comprehensive set of rights and remedies for defective goods and services
What is an implied condition and Give one example of an implied condition
Implied conditions are the unspoken and unwritten terms of the contract
Acceptable quality is an implied condition where product mudt be fit for purpose, acceptable in appeareance, free from defects and safe and durable
Define warranty
A warranty is a promise by the business to repair replace faulty products
When is it required for a business to offer a refund?
If the products provided are faulty
Do not match description
Fail to do the job
What are he 4 main ethical criticisms of marketing?
Creation of needs - materialism is an indiciduals desire to constantly acquire possessions. Businesses use powerful promotional strategies to manipulate customers to buy whatever firm wants to sell
Stereotypicl inages of males and females - sexist in ads
Use of sex to sell products
Product placement - inserting the use of products in entertainment
Define advertising
Advertising is a paid non personal message communicated through a mass medium
What are the three sub points under truth and accuracy in advertising?
Untruths due to concealed facts - hidden information such as 99% fat free when it is high content in sugar
Exaggerated claims - claims that a toothpaste will get rid of bacteria but no proof
Vague statements - statements or words which are vague such as the use of weasel words including ‘helps’
Invasion of privacy- online advertisements can track your location
Define dishonest advertising
Dishonest advertising is when an advertisement uses words that are deceptive or claims a product has specific quality when it does not
Explain why a business needs to engage in fair competition when marketing
A business that conpetes successfully will usually increase sales revenue and profit. When a business engages in unfair marketing strategies this will lead to consumer exploitation and decline in sales.
Businesses should develop an ethical marketing policy to maintain existing customers and increase new customers.
Define sugging
Sugging: selling under the guise of a survey, is a sales technique disguised as market research.
