MANAGEMENT PROCESS: marketing

Question 1

4 P’s of marketing (marketing mix)

Answer 1

Product, place, price, promotion

• actions undertaken to achieve business’s marketing goals through marketing mix

Question 2

what is marketing?

Answer 2

planning and implementing strategies (4 P’s) to understand customer wants / needs, and generate sales in order to satisfy those wants / needs

Question 3

how do business’s keep on trend - process

Answer 3

Situational Analysis
Market Research
Identifying tagert markets
Developing marketing strategies

Question 4

Internal SWOT analysis

Answer 4

strengths: what is business good at?
loyal? popular?
Weaknesses

Internal: CAN CONTROL

Question 5

Exteranl SWOT analysis

Answer 5

opportunities: what will new tech bring? are interst rates low? economy strong?
threats: trends evident in markets? new competitors?

CANNOT CONTROL

Question 6

two types of market research

Answer 6

primary: collected from original sources e.g surveys, feedback
secondary: collected by another source for general purpose e.g news reports, consumer taste surveys

Question 7

why is identification of target market important ?

Answer 7

• allows more efficient use of resources, promotes cost effectiveness
• more relevant to consumers - strategies designed for them
• better understand behaviours
• can better follow trends within your market and adapt with them

Question 8

types of target market

Answer 8

Mass marketing approach: TOTAL

Market Segmentation approach: divided based on demographic, geographic, psychographic, behavioural characteristics

Niche Market : narrowly selcted target segment (micro-market)

Question 9

What are examples of each market segment divide factors

Answer 9

Demographic: population characteristics: age, gender, education income etc

Geographic: where people live : urban, rural, city size, climate

Lifestyle: people’s attitudes and values e.g lifestyle, personality, motives, interests

Behavioural : loyalty to a product
e.g purchase occasion

Question 10

what is product in marketing mix

Answer 10

tangible/intangible?
determines products quality, design, name, warranty, guarantee

Packaging: assists sales, helps preserve, inform, protect and promote producct

Branding: logo, phrase, name - identifies product and distinguishes it
Trademark: part of business intellectual property - registered trademark gives owner legal right to be only user

Positioning: perception of a product in the min of the consumer compared with alternative products offered by competitors e.g luxury, consumer, budget

Question 11

pricing methods in marketing mix

Answer 11

amount of money charged for a product

cost based pricing: simplest, work out cost of production + adds margin
cost + markup% = price

market based pricing: set accordance to supply and demand - can fluctuate with people’s tastes/trends

Competition based pricing: below equal or above prices of competitors

Question 12

what are the pricing strategies

Answer 12

loss leader pricing: sold for less than cost to make or supply - increases sales of other products

price skimming: introduced with highest possible price - maximise revenue early, overtime lowered

Penetration pricing: introduced with lowest price in market - steal market share from competitors

Price points: range of products at different price points to cater variety of needs, encourage up-selling to customers

Question 13

what is promotion

Answer 13

refers to the methods used by a business to inform, persuade and remind customers about its products
- attracting new customers - raise awareness
- increase brand loyalty - reinforcing image of product
- encourage exisiting customers to purchase more

Question 14

promotion mix/strategies

Answer 14

personal selling + relationship marketing: activities of sales representative direct to a customer - make sale
relationship marketing: long term relationships

Sales promotion: offer discounts, free samples, coupons, point of purchase displays 2 for 1 etc

Loyalty cards

Publicity and public relations: any FREE news story about products
- aims to create and maintain favourable relations between business and customers

Advertising: mass media used to communicate message
attract potential customers, create demand for product and communicate essential info

Question 15

what is place/distribution

Answer 15

• how a product is distributed to its market through different channels and levels of distribution. activities that make products available to customers when + where they want to purchase them

Question 16

distribution channels types

Answer 16

channels by which a product is moved from operations to consumer

types:
- producer to customer: simplest-all
- producer o retailer to customer - retailer buys from producer and resells to customers - for bulky/perishable products such as furniture or fruit
- producer to wholesaler to retailer to customer - most common method
wholesaler buys in bulk from producer, sells smaller quantities to retailers
use this method when producer finds it difficult to deal with them all

Question 17

place

Answer 17

distribution levels
Intensive distribution: readily available - maximises firm’s sales

selective distribution: limited availability e.g only department stores or chemists

exclusive distribution: only one retailer or wholesaler permitted to sell supplier’s product - luxury items