MANAGEMENT PROCESS: marketing Flashcards
4 P’s of marketing (marketing mix)
Product, place, price, promotion
- actions undertaken to achieve business’s marketing goals through marketing mix
what is marketing?
planning and implementing strategies (4 P’s) to understand customer wants / needs, and generate sales in order to satisfy those wants / needs
how do business’s keep on trend - process
Situational Analysis
Market Research
Identifying tagert markets
Developing marketing strategies
Internal SWOT analysis
strengths: what is business good at?
loyal? popular?
Weaknesses
Internal: CAN CONTROL
Exteranl SWOT analysis
opportunities: what will new tech bring? are interst rates low? economy strong?
threats: trends evident in markets? new competitors?
CANNOT CONTROL
two types of market research
primary: collected from original sources e.g surveys, feedback
secondary: collected by another source for general purpose e.g news reports, consumer taste surveys
why is identification of target market important ?
- 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
types of target market
Mass marketing approach: TOTAL
Market Segmentation approach: divided based on demographic, geographic, psychographic, behavioural characteristics
Niche Market : narrowly selcted target segment (micro-market)
What are examples of each market segment divide factors
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
what is product in marketing mix
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
pricing methods in marketing mix
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
what are the pricing strategies
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
what is promotion
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
promotion mix/strategies
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
what is place/distribution
- 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
distribution channels types
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
place
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
