l7 Flashcards
what is marketing?
mgt process that identifies, anticipates & supplies customer needs efficiently and profitability
what are the two purposes of market analysis?
- identify gaps in market where consumer needs not satisfied
- look for opps. to benefit from (sales, development of new p+s)
state and explain the three methods of market research.
desk research (makes use of pre-existing info. gov stats, org stats. secondary data)
field research (asks random people their views on different products)
test marketing (campaign to test product in small, typical, stable population)
state and explain the three elements used for customer analysis.
segmentation (trad & value-based. can market be segmented into groups requiring unique business strat?)
motivation (why do customers buy what they buy? elements they value most? customer objectives? selection & use of fav brands)
unmet needs (why some customers dissatisfied? looks at needs not being met)
state and explain the two types of markets.
consumer markets B2C
industrial markets B2B
what are fast moving consumer goods?
low value, high volume
what are consumer durables?
high value, high volume
what is market segmentation?
division of market into homogenous groups of potential customers who treated similarly for marketing purposes
what is the marketing mix?
set of controllable marketing variables that firms blends to produce its wants in the target market
state the four Ps of the marketing mix.
Product
Promotion
Place
Price (4 Cs)
explain the product element of the marketing mix.
- brand
- quality
- usp
explain the promotion element of the marketing mix.
- advertising
- sales promotions
- public relations
- personal selling
explain the place element of the marketing mix.
direct :
retailer, mail order, online sales
indirect :
wholesaler, distributor, agent
explain the price element of the marketing mix.
Costs (how much of markup on cost?)
Competitors (discount, parity, premium)
Corporate objectives (set low price to achieve market penetration)
Customers
what is price and quality like in a cowboy brand?
high price
low quality
what is price and quality like in a premium brand?
high price
high quality
what is price and quality like in an economy brand?
low price
low quality
what is price and quality like in a bargain brand?
low price
high quality
what is price elasticity of demand?
measures how far demand for a product will change in response to a change in price
what is price discrimination as a pricing strategy?
setting different prices for similar product in different parts of the market
what is penetration pricing as a pricing strategy?
low prices in short term to gain market share
what is price skimming as a price strategy?
charging a high price when product first launched
what is going rate strategy as a pricing strategy?
taking existing market price as a guide (in established market)
what is product line pricing as a pricing strategy?
setting different price points for various products in same product line. based on features or levels of quality
what is dynamic pricing as a pricing strategy?
changing the price according to demand
what are the extra 3Ps in the marketing mix?
People (relates to both staff & need to understand customer needs)
Processes (systems through which the service is delivered)
Physical evidence (testimonials regarding proposed service)
state and explain the AIDA sequence.
Awareness
Interest
Desire
Action
primary aim to encourage customers to buy products by moving them along sequence
