Key Terms Flashcards
Marketing
About meeting the needs and wants of customers so marketing’s primary aim of increased sales can be met
Marketing mix: Promotion
The collection of techniques used to inform and persuade consumers to buy a product or service
Above the line promotion
Promotion which uses media where there’s no direct contact with the potential customer
Below the line promotion
Promotion where the business can directly contact the potential customer
Service marketing (extended marketing mix)
The marketing of a service. How a business meets consumer wants and needs of an activity that a business does for you (service). It’s a stand alone topic as marketing will differ due to its intangible nature
Marketing mix: place
How the product is distributed
Marketing mix: product
Good or service exchanged for money
Marketing mix: price
The amount of money that a customer has to give up to obtain a product or service
Service marketing: people
People who make contact with the customer in delivering the product eg customer service
Service marketing: process
The systems and processes that deliver a product to a customer eg transaction process, website layout
Service marketing: physical
The element of the physical environment the customer experiences eg cleanliness, staff uniform
What are the 3 p’s in the service marketing (extended marketing mix)
People
Process
Physical evidence
What are the 4 p’s in the marketing mix
Price
Product
Place
Promotion
Viral marketing
Uses social media networks to promote a product, it name refers to how consumers share information about a product with other people in their social media networks, much in the Same way a virus spreads from one person to another.
Viral marketing can supply its audience with something of value for free, or contain amusing/ unique content. Whatever the viral content is, it must encourage people to share with others so as many people as possible receive the message.
Drip marketing
Email marketing strategy composed of multiple emails sent out a specific times and dates. Upon sending to an email list, the customer will receive multiple emails, these could take the form of welcome emails, as well as communicate that new stock has arrived, remind customers that they have abandoned their basked and /or contain birthday offers.
Benefit of drip marketing
Constantly making people aware and eventually draw them to the website
Drawback of drip marketing
After time, may become annoying- so people may unsubscribe
Benefit of Viral marketing
Costs nothing- customers do all the work
Less invasive than drip
Drawback of viral marketing
Might no go viral or customers may not share images
Advertising elasticity of demand
The extent to which spending on advertising will affect sales
Formula for advertising elasticity of demand
% change in demand divided by % change in advertising spend
Viral marketing
Uses social media networks to promote a product, it name refers to how consumers share information about a product with other people in their social media networks, much in the Same way a virus spreads from one person to another.
Viral marketing can supply its audience with something of value for free, or contain amusing/ unique content. Whatever the viral content is, it must encourage people to share with others so as many people as possible receive the message.
Drip marketing
Email marketing strategy composed of multiple emails sent out a specific times and dates. Upon sending to an email list, the customer will receive multiple emails, these could take the form of welcome emails, as well as communicate that new stock has arrived, remind customers that they have abandoned their basked and /or contain birthday offers.
Benefit of drip marketing
Constantly making people aware and eventually draw them to the website
Drawback of drip marketing
After time, may become annoying- so people may unsubscribe
Benefit of Viral marketing
Costs nothing- customers do all the work
Less invasive than drip
Drawback of viral marketing
Might no go viral or customers may not share images
Advertising elasticity of demand
The extent to which spending on advertising will affect sales
Formula for advertising elasticity of demand
% change in demand divided by % change in advertising spend
AED is useful because
It can help to justify spending on advertising (worthwhile expense). Can compare to target AED figures.
AED usefulness limited because
No guarantee that the demand increased because of the advertising spend. Change in demand may only be predicted. The % change may only be small, but value of demand large. Sometimes money spent for brand awareness/reputation which isn’t measured in AED.
SWOT analysis
A framework for a business to asses its current position in order to make the best decisions for its future strategy.
Which of SWOT are internal
Strengths- eg location, reputation
Weaknesses- eg product differentiation
Which of SWOT are external
Opportunities- eg tourism, new housing
Threats- eg competitors,
Advantages of SWOT analysis
Logical and easy to understand
Encourages analysis of external environment
A forward looking tool- encouraged proactive rather than reactive
Useful in beginning to discuss and plan starting point
Disadvantages of SWOT
Too often lacks focus- too many points made
Can quickly become out of date
People who make the decisions/ in charge do the SWOT analysis- won’t notice their own problems
4 marketing resources
Marketing budget
Marketing department
Knowledge of the market in which the business operates
Set of objectives to be achieved through marketing
