KK2 Flashcards
marketing
process of implementing strategies to price, promote and distribute products to potential customers
market research
collecting info relating to cust needs and expectations
target market
specific group bus products aimed at
customer base
cust who purch g + s from bus
what does a business need to recognise when trying to building a cust base
need to recognise types of cust likely to purch products thru market research or cust profile eg.age,hobbies,income
building cust base
benefits
- ▼ cost bc won spend unnecessary $$
- ▲ profitability, efficiency and sales
marketing / customer base / business objective
- successful marketing more likely to achieve bus objective
- marketing that targets a bus cust base ☞ ▲ cust repeats ☞ ▲ sale and profits
- meeting needs of cust base = ▲ cust satisfaction ☞ achieving bus goals
market orientation
strategic focus on identifying cust needs to define new products to develop
cust profile
specific description of cust to help recognise their interests eg.age, income, hobbies
operating factors (little control)
bus have little control over but can effect how bus can maintain its cust base
eG cust, competitors, suppliers
operating factors little control
cust
cust needs = essential marketing Strat must be focused around them
operating factors little control
suppliers
provider of raw material, eg. qual, CSR,timeliness
operating factors little control
competitors
owner need to be aware of marketing Strat used by comp to create a P.O.D.
macro factors no control
beyond control of bus but still have impact on how bus deals w cust base
eg. legal factors, tech factors, economic fact, social fact
operating factors little control
legal factors
must be complaint to laws = seem more ethical ☞▲reputation ☞▲ cust base and sales
operating factors little control
tech factors
improvements to enhance marketing to reach target market and promote bus ☞▲cust base and sales
external factors no control
economic factors
strong economic growth can expand cust base due to ▲ consumer confidence
external factors no control
social factors
social trends and fashions is important in market plan as can ▲ cust satisfaction. ▲ sales and profits
summary of external macro and operating factors
many factors can affixer yr brand image and ability to form a cust base
Branding
a marketing concept to id a comp
macro factors economic factors
eg, unemployment or inflation rates (gen level of prices) or i.r.
macro suppler factors
eg. qual or CSR
quality = ▲cust loyalty + sat ☞▲cust repeats t/f ▲ cust base
CSR= in rep, bc adhering to Societal values t/f in cust loyalty and sat t/f in cust base
internal factors
- owners and managers
- employees
- corporate culture
corporate culture
internal factors
values and beliefs if people un org
Pos culture = ▲ productivity = ▲ success = ▲ cust base
types of corporate culture
CS/I/Q
cust service - better cust exp ☞▲loyalty + sat = ▲cb
innovation - resp cust needs and expectations ☞▲ cust sat t/f repeats = ▲cb
quality - good qual ☞▲cust sat +repeat = ▲cb
primary research
info collected 1st hand
+ up to date
+ more trustworthy
- room for bias
- time conusming
secondary research
info already collected
+ instantly available / cheaper
+ convenient
- may not be up To date
may not be reliable
market segmentation
splitting the market into 4 diff cat to id diff types of consumers and their needs.
eg.
- geographic
- demographic
3.income
4.behavioural
4 types of market segmentation
- geographic eg. location
- demographic eg. age/gender/$$/occupation/RE/nationality
3.income eg. socio economic group
4.behavioural eg. when they buy/ how much they buy
niche marketing
- product targeting a small target market eg. bus targets gluten free bread consumers in broader bread market
mass marketing
selling goods To promote all types of cust
market positioning
after targeting a specific segment, bus must consider how their prods are perceived relative to their comp
marketing mix
elements of bus apporach to marketing enabling them to satisfy their cust = max profits and sales inc. cust loyalty and creating a USP (unique selling point)
marketing mix
product
physical features of prod eg look, reliabilty, qual
bus needs to consider intended cust when designing products to meet cust needs
marketing mix
price
way product is priced
marketing mix
price
PRICE SKIMMING
highest initial $$$ then lower over time
marketing mix
price
PENETRATION PRICING
lower price during initial offering (help to penetrate market and attract cust away from comp)
marketing mix
price
COST PLUS
taking unit cost and adding % markup to determine its selling price
marketing mix
place
where prod sold must consider where will ppl be looking for prod ect
marketing mix
promo
how the prod is advertised.this is what pub notices hence bus must choose most appropriate method of promo for target aud
marketing mix
aim of promo
- inform consumer eg. price, location
- create awareness
- build a brand image
- create cust loyalty
- persuade cust to purchase more reg
marketing mix
TYPES OF PRMO
advertising
paying fr a message thru media eg tv, social media, radio (can be $$$)
marketing mix
TYPES OF PRMO
sponsorship
prov financial assist in return for exposure + advertising
marketing mix
TYPES OF PRMO
sales promos
short term free sales initiaves to boost sales eg. buy one get one free
marketing mix
TYPES OF PRMO
direct marketing
sending messages directly to consumer eg. emails letters
marketing mix
merchandising
prod w branding on it
marketing mix
FIAD
physical evidence
non human elements bus that cust interact with
eg. facilities - (furniture, equipment)
- interior design - design of bus
- ambience - atmosphere of enviro (scent, temp, mood)
- digital world - ▲ rep in dig world reviews + feedback from cut (Pos review = entice other cust)
marketing mix
process
how comp deal w cust ie process of prov cust w g+s
marketing mix
OEC
ppl
all pppl that contrib to bus rep
- owners - influence bus culture determining level of cust sat
- employees- qual of customers serv determine $$$$
- cust - pos attitude towards bus = likely to reccomened bus to other
Product life cycle
time from when prod is first released into market until its removed
eg. r+D, intro, growth, maturity, (Saturation), decline
Product life cycle
R+D
market research to id heat the cust wants. expensive period bc no sales and prod X yet available
Product life cycle
intro
sales begin slowly, expenses on pro to convince distributors to stock new products
Product life cycle
growth
sales accelerating (if well advertised) break even on costs and being making prof
Product life cycle
maturity
sales slow down. product start to ▼ pop. bus should Q’n intro diff versions to keep sales ▲
Product life cycle
decline
sales fall bc ▼ pop. Bus should Q’n spending more on marketing or withdraw from the market
Product life cycle
extension strategies
- withdraw product
- let it ▼ until X longer gen prof
- extend prod life by EG. adv campaign, foreign market, new brand image
customer relation strategies
managing interactions w cust = ▲rep, attract new cust, ▲loyalty
customer relation strategies
quality cust service
cust - bus no 1 priority ☞▲ comp adv
- great prod knowledge
- prompt service
- listening to cust needs
customer relation strategies
being PROACTIVE to qual service
- invest in training staff
- friendly
- clear staff guidelines
= build loyalty + strong r/ship w cust
customer relation strategies\
loyalty programs
earnings benefit/gain eg. points based on amount of $$ spend in shop
☞ keeps cust coming bc more tailored experience = ▲ cust loyalty
public relations (PR)
bus want to PROACTIVELY build a pos image thru planned comms + Strat = fav image , ▲ sale and prof
eg. open days/tours, sponsorship
planned PR
transmit a message to pub to build r/ship = ▲ CB
eg. open days/tours, sponsorship
crisis PR
issues that threaten the existence of a bus - req immediate attention
eg. plane crash (trigger)
crisis comm plan
id how a bus should handle a crisi especially under intense scrutiny from media
- ensure facts = correct
- get info out quick
- prepare to answer Q from media
- give reg updates
x4 functions of PR
- PROMO POS IMAGE - reinforce fav attitudes to inc. rep
- EFFECTIVE COMM- eg. advertising to convey info
- ISSUES MONITORING - early warning of things that could affect bus sales + prof
- CRISIS MANAGEMENT - protect bus rep bc of unfair rumours = ▼ sales
PR VS CRM
MAIN POD = aud
CRM = strong r/ship w CUST
PR = (+) perecption of GEN PUB
CSR in marketing
- bus demonstrates socially responisble behaviours (concerning the enviro, society, employees)
criticism of marketing
lacks strong code of professional conduct
eg. marketing which creates artifical needs ☞ materialism
marketing to benefit of the com
1. comm sponsor ships
supporting local orgs eg.sport team thru donations of $ or equip in return for promo of bus
marketing to benefit of the com
2. green marketing ☞
selling g+s by highlighting their enviro benefits of aiming to ▼ impacts + be sustainable
