L3; Understanding The Market Flashcards
i-rate nyo nalang ng 5 agad kung gus2 nyong i-skip, sobrang dami kasi😭
Marketing startegy is how a business intends to?
It is how a business intends to present a product to the public,
Marketing startegy takes into account the?
- target audience,
- product benefits and
- marketing methods.
refers to activities a company undertake to promote the buying or selling of a product or service.
Marketing
is a long term plan on what to do to achieve a certain goal
Strategy
specific group of people with shared characteristics you want to reach with your marketing efforts
Target Market
is the activity of dividing a broad consumer or business market into sub-groups of consumers (known as segments) based on some type of shared characteristics
Market Segmentation
enumerate the Bases of Market Segmentation
- Geographic
- Demographic
- Behavioral
- Psychographic
Geographic
enumerate what are under Geographic (5)
- Location
- Country
- City
- Language
- Population
Demographic
enumerate what are under Demographic (7)
- Age
- Sex
- Income
- Education
- Social Status
- Family
- Occupation
Behavioral
enumerate what are under Behavioral (4)
- Readiness to purchase
- Life cycle stage
- User status
- Intent
Psychographic
enumerate what are under Psychographic (5)
- Lifestyle
- Interest
- Personality
- Values
- Attitudes
is the set of controllable, tactical marketing tools that a company uses to produce a desired response from its target market.
marketing mix
It consists of everything that a company can do to influence demand for its product.
marketing mix
What are the 7Ps of Marketing Mix
(enumerate)
- Product
- Price
- Promotion
- Place
- People
- Packaging
- Positioning
____________________ is defined as “anything that can be offered to a market for ______________, _______________, ________ or _________________ that might satisfy a ________ or ________. It includes ________________, ____________, ____________, ___________, __________________ and ________.”
Product is defined as “anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. It includes physical objects, services, persons, places, organizations and ideas.”
(i-memo nalang ng buo😭)
bags, shoes, clothes, foods, cars, tables, pencil, notebooks, etc. are?
Tangible products
Intangible products are?
services
These are activities, benefits or gratification offered for sale that is essentially intangible and does not result in ownership of anything.
Intangible products
enumerate the Product Levels
and give 1 example each level
* Level 1: Core Benefit/Core Product — Ex: telephone calls or text
* Level 2: Actual Product — Ex: features of the phone, including: color, screen size, camera, other specifications
* Level 3: Augmented Product — Ex: 1 year warranty, free power bank, free case,
Why review the product at different levels?
an entrepreneur can have a better understanding of the product’s competition, and gives a snapshot of the reasons why a customer decides to buy the product or avail the services.
is the fundamental need that the customer satisfies when they buy the product.
Level 1 – Core Need/Core Benefit
It is the product features and its design. Products typically have lots of features but very few actual benefits (core benefits) to the customer.
Level 2- Actual Product
The word augment means?
“to add to” or “to make greater”
This last level in the product level mode is increasing and adding value \These are referred to as ―add-ons.
Level 3 – Augmented Product
Price answers the question?
how much?
This is also the amount of money that the customer must pay to get the products or services that he wants.
Price
This is also defined as the value that the entrepreneur assigns to a product or service after computing its costs.
Price
is the method of pricing that an entrepreneur use to determine how much to sell their products or services.
pricing strategy
enumerate the pricing strategies (9)
- Market Penetration Pricing
- Market Skimming Pricing
- Competitive Pricing
- Premium Pricing
- Cost Based Pricing
- Psychological Pricing
- Bundling
- Value based pricing
- Product line pricing
This is the setting up of a low price to new products or services in order to attract more customers and increase in market share.
Market Penetration Pricing
Example: Newly opened cellphone shop offering 5% off for their smartphones as introductory price.
Market Penetration Pricing
This is the opposite of market penetration
pricing
Market Skimming Pricing
with this pricing strategy/method, the entrepreneur sets a higher price for a new product to gain maximum revenues for customers who are willing to pay for a higher price.
Market Skimming Pricing
Ex: iPhone uses what type of pricing strategy/method?
Market Skimming Pricing
This pricing strategy/method is a common practice among entrepreneurs
Competitive Pricing
Entrepreneurs check and refer to the product price of their competitors.
Competitive Pricing
Entrepreneurs in the same industry set prices relatively low or relatively high with competitors.
Competitive Pricing
This is a method where the entrepreneur sets a very high price for their products and services to reflect an impression of higher quality and superiority.
Premium Pricing
this pricing strategy/method is common for luxury products
Premium Pricing
This is a pricing method wherein a mark-up is added over costs or all expenses to come-up with the agreed price of the product or service.
Cost Based Pricing
what is the formula for Cost Based Pricing
mark-up is added over costs or all expenses to come-up with the price
(mark-up + cost or all expenses = price)
Ex: Anna’s polvorons expenses from the ingredients and other costs amounted to 50 pesos for 5 pieces; she then sets the price at 80 pesos for 5 pieces to cover all her expenses in making polvoron.
Cost Based Pricing
It is the practice of setting prices of products that is slightly lower than a whole number.
Psychological Pricing
Ex: In a clothing store, a shirt is priced at 99 pesos.
Psychological Pricing
This is when entrepreneurs combine two or more of their products and offers the ―bundle at a lesser price.
Bundling
Example: Detergent powders are bundled with fabric detergents at a lesser price.
Bundling
This is a pricing strategy wherein the entrepreneur determines the willingness to pay of a target customer for a particular product or service.
Value based pricing
It refers to the practice of setting prices for multiple products in coordination with one another.
Product line pricing
It refers to a location where the business is situated.
Place
An entrepreneur would choose a prime location for his business where the customers could easily visit his store to buy their goods or services.
(which marketing mix is stated above)
Place
would also refer to the channels of distribution.
Place
In this marketing mix, the entrepreneur seeks to answer, “how can we deliver our products and services to our target customers?”
Place
what question does “Place” seeks to answer?
“how can we deliver our products and services to our target customers?”
enumerate the Types of Distribution Channel
- Direct Distribution
- Indirect Distribution
It is organized and managed by a company that sells directly to consumers.
Direct Distribution
It involves intermediaries that perform a company’s distribution functions
Indirect Distribution
describe how a product gets to the customer in direct distribution
Manufacturer ➨Customer
describe how a product gets to the customer in indirect distribution
Manufacturer ➨ Wholesaler ➨ Retailer ➨ Customer
what is the main purpose of promotion?
to get the attention of customers, which will then lead to their purchase of the product that is being promoted.
The main purpose of this marketing mix is to get the attention of customers which will then lead to their purchase of the product that is being promoted.
Promotion
This marketing mix may also create interest and curiosity in the minds of buyers and can also generate loyal customers.
Promotion
enumerate the Promotional Strategies (6)
- Advertising
- Sales Promotion
- Personal selling
- Public relations
- Direct marketing
- Social Media marketing (SMM)
(ASPPDS)
It is any paid form of public presentation or announcements of products or services by an identified sponsor through a medium.
Advertising
Ex: TV commercials, billboards
Advertising
what are the main purpose of advertisements ?
- Create awareness of your product or service
- Persuade the customers that your company’s product or service is suitable for their needs or wants
- Improve the image of your company
- Publicize new products or services.
This is a short term incentive given to customers to encourage the purchase of a product or service
Sales Promotion
This is one of the most sought after strategies in promotion.
Personal selling
Customers find that ____________________ is that the priority of the entrepreneur is on the interactions, relationship and trust built between sales and the customers or buyers.
Personal selling
Public Relations is also known as?
PR
is the process of creating good relations with the general public and building a good image.
Public relations
This also includes proper management of unfavorable feedbacks from customers.
Public relations
Give example/s of Public relations
Ex: media/press conference, journals or blogs, partnership events, sponsors, paying vloggers to promote, etc.
This is the strategy where the entrepreneur makes direct connections with carefully targeted customers to get fast response and make a lasting relationship thus making them your loyal customers.
Direct marketing
Give example/s of Direct marketing
Ex: e-mail marketing, direct mail, online selling
This strategy uses social networking websites such as Facebook, Instagram and Twitter as a promotional tool.
Social Media Marketing (SMM)
This is an additional element in the basic 4P’s of marketing. Includes your employees and how they handle and take care of your customers’ needs.
People
“The most successful entrepreneurs put the right people in the right job at the right time.”
It how the product is presented to the customers. It is the way your product or service looks from the outside.
Packaging
________________ will set you apart from your competitors. It is also part of your over-all brand identity.
Packaging
Packaging is also considered as the what of your products or services?
”silent salesman”
This is the process of communicating the image of a brand into the minds of your customers. This is also the marketing mix where companies create their Unique Selling Proposition or USP.
Positioning
is one of the most vital features of any enterprise.
Branding
is an identifying symbol, mark, logo, name, word, and/or sentence that businesses use to differentiate their product from others.
Brand
enumerate the Characteristics of a Brand Name
- Catchy
- Visually appealing
- Positive meaning
- Clear and concise
- Unique
use a word or phrase that is easy to recall. Avoid words that have foreign sounding pronunciation.
1.Catchy
your brand which includes your brand logo must be carefully planned out. It must use a good combination of graphics and colors.
2.Visually appealing
your chosen brand name or brand logo should be carefully checked for possible negative meanings.
3.Positive meaning
the brand name should clearly identify your product and its salient features.
4.Clear and concise
As an entrepreneur, you should choose a name that has no similarity with other brand names. It always a must to check the availability of your chosen brand name before starting your business.
5.Unique
place would also refer to the?
channels of distribution
Promotion may also create what in the minds of buyers?
interest & curiosity
Promotion can also generate what type of customers?
loyal customers
other term for marketing strategy?
marketing efforts
what are the advantages and disadvantages of direct distribution
pros:
- easily reach customers
- more profits
- faster feedback
cons:
- matagal
- medjo hassle
what are the advantages and disadvantages of indirect distribution.
pros:
- easier for customers to find your product
- more time to focus on/develop your products
- the retailer will already be the one to market your products
cons:
- higher markups (dues to shipping & longer process(?))
give examples of sales promotions
- Coupons
- Starbucks points
- Cash rebates
- 3 day sale
