markerting test Flashcards
what is marketing
the management process responsible for identifying, anticipating and satisfying customer requirements profitably. (finding out customer needs and fulfilling those needs)
what are the 3 different meanings of market
-place where buyers and sellers come together or interact
- a location
- a type of product
what are the 4 ps for physical goods
price, product, place, promotion
what are the 3 ps for services
people, physical evidence, process
Explain “price” of the marketing mix
attract customers whilst earning profits for the business.
explain “place” of the marketing mix
the location needs to be convenient for customers and fit within the firm’s budget.
explain “product” of the marketing mix
having a broad and appealing product range
explain “promotion” of the marketing mix
Inform and persuade the customer to purchase with different types of promotion
what is above the line promotion
ex; advertising in newspapers
what is below the line promotion
ex; free testers
what is through the line promotion
ex; social media marketing
explain “people” of the marketing mix
the importance of employee-customer relationships in marketing a service.
explain “processes” of the marketing mix
refers to the way in which a service id provided or delivered. It is important as it can influence whether the customer will make future purchases
explain the “physical evidence” of the marketing mix
refers to the tangible aspect of a service. Creating a memorable experience for the customer
what is product orientation
a company is product oriented if it prioritizes research and development over market research. (new and innovative products)
what is market orientation
a company is market oriented if the needs of the customers are put above everything else. Extensive and ongoing market research will be at the center of all decision making; therefore new products are more likely to be accepted by the target market
what is the BCG matrix
it is a growth-share matrix that measures the market growth rate and relative market share.
what is market growth rate
it shows how attractive a product is in the market
what is relative market share
it looks at how much of the market a product has captured (its strength in the market)
what are the components of the big matrix
stars, question marks, cash cows, dogs
explain the “stars” of the big matrix
products with high market growth and high market share. They are successful products in the market and generate high amounts of income. ( they are the future cash cows)
explain the “cash cows” of the bcg matrix
products with low market growth and high market share. they are well-established products in a mature market.
explain “question marks” of the bcg matrix
products with high market growth and low market share. they are a concern because of the large amount of money needed to increase their share in the market.
explain “dogs” in the bcg matrix
products with low market share and low market growth. they offer low future prospects and need to be replaced. Many of these problems may lead to cash-flow problems it the business continue sustaining them.
what is the ansoff matrix
the matrix looks at potential in terms of the market and product, and considers both the existing markets and products and new market and products.
4 quartiles of ansoff
market development
diversification
market penetration
product development
what is market penetration
when a business grows by increasing its market share, selling more of its existing products in the same market. Market penetration is considered as one of the safest options, but opportunities for increasing market share may be limited by competitors in the market.
3 key factors to increase the chance of success in market penetration
- the growth potential of the market
- the strength of customer loyalty
- the power and ability of competitors
what is market development
it consists of expanding the market by looking for new markets or for new market segments in the existing market. it is riskier than market penetration as the business may not understand the new market.
3 key factors to reduce the risk of market development
- effective market research
- having local knowledge on the ground
- having an effective distribution channel
what is product development
it is the development of new products for the existing market. sometimes it may be wholly new products, but most of the time, they are upgrades of already existent products or a variation on an existing product. it is also riskier than market penetration, with much depending on how loyal the customer is to the original product.
3 key factors to reduce the risks of product development
- effective market research
- having a strong research and development system
- having first mover advantage
what is diversification
it is the riskiest growth strategy a business can pursue; introducing a new product to a new market.
2 elements of risk of diversification
- lack of familiarity and experience in the new market
- the untestedness of any new product
what is market segmentation
it is the process of splitting a population into groups of people with similar needs or characteristics
what is a target market
the consumer segment at which a company aims its marketing messages
what are the 6 methods of segmentation
-geographic segmentation
- socio-economic segmentation
- residential neighbourhoods
-psychographic segmentation
-demographic segmentation
-technological adaptation segmentation
what is geographic segmentation
it divides consumers according to their location.
what is socio-economic segmentation
it divides the population using the factors of occupation, income, and level of education. It is useful in predicting spending patterns.
what is residential neighbourhoods segmentation
combines both geographic and demographic information to classify postcode regions.
what is psychographic segmentation
it divides the population according to their lifestyles and different personal interests.
what is demographic segmentation
it studies the structure of a population based on factors such as age, gender, religion, race, occupations, education…
what is technological adaptation segmentation
different consumer groups will be attracted to new tech at different times.
the product life circle from left to right
-development
-introduction
-growth
-maturity
-decline
if a product does not go through life circle, it goes through;
style
fads
fashion
what is style
it is distinctive and it lasts long. it is a mode of expression that shows several periods of renewed interest. products that qualify into the category of style might turn into a necessity.
what is fashion
it is extremely popular. it tends to grow and remain popular for a while, before declining slowly. it is considered trendy and is a talking point for quite some time.
what are fads
they are temporary periods of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity. a lot of times, when brands see their products failing, they try to keep it alive by marketing or price reduction.
what is an extension strategy
it is the name given to the actions a business takes when it identifies a product is close to entering the decline stage of the product lifestyle. these actions aim to extend the life of a product, by keeping the product within maturity stage and should improve sales.
what is a usp
a unique selling point is the real or perceived benefit of a good or service that differentiates itself from the competing brands and gives its buyers a logical reason to prefer it over other brands.
what are the 3 types of e-commerce
- consumer to consumer (C2C)
- business to business (B2B)
- Business to consumer (B2C)
what is C2C
consumer to consumer e-commerce businesses allow members of the public to sell to each other. these platforms do not sell anything themselves, they provide a place for others to trade. they make money by. charging a commission on every item that is sold.
what is B2B
business to business e-commerce involves supplying other companies the goods and services they need. These companies have different priorities than the ones who sell directly to the end-consumer. “suppliers have to be able to deliver an agreed quantity at an agreed time” Long term relationships and customer loyalty are much more common than in consumer markets (groceries)
what is B2C
business to consumer e-commerce can be thought of using a traditional business model. A company makes or purchases some goods and then attempts to sell them to the end consumer. the majority of e-commerce companies operate using this model so there may be more competition. the most successful work hard to develop strong brand loyalty.
business etiquette
mannerism and customs by which business in conducted in different parts of the world
cultural exports
the extensive availability and consumption of traditionally domestic products in overseas markets.
demographics
the study of population trends in relation to its impacts on international marketing
direct investment
involves business setting up operations in other countries, such as production facilities or distribution services.
e-commerce
this refers to buying and selling goods and services via electronic means, most notably the internet
exporting
this method of entering international markets involves a business selling its products to overseas customers without having to physically establish production or distribution facilities abroad.
franchising
this involves international marketers seeking a third party organization (the franchise) tu supply the goods and services of another business (franchisor)
globalisation
the process of integration and interdependence of the world’s economies, in terms of social, political and economic convergence
joint venture
international marketers use this technique to sell their products in overseas markets by two or more parent companies forming a new business entity in its own legal right
international marketing
refers to the marketing of an organization’s goods and services in overseas markets
legal constraints
these rules and regulations of a country set the permissive parameters that international marketers can operate within, such as consumer protection Laws
strategic allience
this method is used by international marketers to sell their products in overseas market by using partner firms in other countries, working in collaboration on a specific project
strategic implications
this refers to the longer-term operations of a business ex; the formation of a strategic business alliance or joint venture as part of an international marketing strategy.
