Marketing #1 Flashcards
profit maximisation
when there is maximum difference between the total revenue coming into the business and total costs being paid out
marketing approach stage one and two
one: more discretionary income
two: CSR due to changing economic and social conditions with high customer satisfaction
relationship marketing
the development of long-term and cost-effective relationships with individual customers
- high basis on customer loyalty through reward programs, customer care
types of market
industrial market - purchase product to use in the production of other products in their daily operations
intermediate market - consists of wholesalers and retailers who purchase finished products and resell them to make profit
resource market - individuals or groups that are engaged in all forms of primary production, including mining, agriculture, forestry and fishing
consumer market - members of a household who plan to use or consume the products they buy
mass market - the seller mass-produces, mass-distributes and mass-promotes one product to all buyers
niche market - also known as a concentrated or micro market, is a narrowly selected target market segment
psychological influences
- within an individual that affect his or her buying behaviour
perception, motive, attitudes, personality and self-image, learning
brand loyalty - occurs when a favourable attitude towards a single brand results in repeat sales over time
sociocultural influences
social class or socioeconomic class - a person’s relative rank in society, based on his or her education, income or occupation
culture and subculture - learned values, beliefs, behaviours and traditions shared by society
family and roles - buying standards in the household
economic influences
boom - period of low unemployment and rising incomes
- customers are willing to spend because they feel secure about their jobs and source of income
- businesses intensify promotional efforts in an attempt to increase their market share
recession - unemployment reaches high levels and incomes fall dramatically
- customers and businesses lack confidence in the economy and if this phase lasts for a long time, a mood of deep pessimism persists
- customer and business spending reach very low levels
government influences
uses a number of economic policy measures to influence the level of economic activity
consumer laws
Australian Consumer Law - Competition and Consumer Act 2010
- protects consumers against undesirable trade practices that restrict competition
- regulates certain trade practices that restrict competition
- breaches of the act - penalties
deceptive and misleading advertising -
- fine print - important conditions, difficulty to read
- before and after advertisements - consumers may be misled by before and after advertisements, where the comparison is distorted
- tests and surveys - make unsubstantiated claims
- country of origin - accuracy in labelling is important
- packaging - size and shape of the package may give a misleading impression of the contents
- special offer - advertisements may be misleading or deceptive if they imply that a special offer is available for only a limited period
bait and switch advertising
involves advertising a few products at reduced and, therefore, enticing prices to attract customers. When the advertised products quickly run out, customers are directed to higher priced items.
dishonest advertising
when an advertisement uses words that are deceptive or claims that a product has some specific quality when it does not
price discrimination
the setting of different prices for a product in separate markets
implied conditions
unspoken and unwritten terms of a contract
consumer guarantees
consumers with rights to certain remedies from retailers and manufacturers where goods purchased fail to comply with the consumer guarantee provisions in the ACL
warranty
promise made by a business that they will correct any defects in the goods they produce or services they deliver
ethical influences
creation of needs - materialism that persuades and manipulates consumers to buy whatever the firm wants to sell
stereotypical images of males and females -
use of sex to sell products - unrealistic nature
product placement - in entertainment
invasion of privacy - online pop ups
truth and accuracy in advertising
sugging - selling under the guise of a survey
situational analysis - SWOT analysis and product life cycle
SWOT - strength, weaknesses, opportunities, threats
- internal (strength and weakness)
- external (opportunities and threats)
product life cycle - consists of the stages a product passes through: introduction, growth, maturity and decline.
market research - process of systematically collecting, recording and analysing information concerning a specific marketing problem
marketing objectives
the realistic and measurable goals to be achieved through the marketing plan
increasing market share - the business’s share of the total industry sales for a particular product
expanding the product mix - the total range of products offered by a business
maximising customer service - refers to how well a business meets and exceeds the expectations of customers in all aspects of its operations
identifying target markets
target market - group of present and potential customers to which a business intends to sell its product
primary market - market segment at which most of the marketing resources are directed
secondary market - usually a smaller and less important market segment
mass market approach
seeks a large range of customers
market segmentation approach
occurs when the total market is subdivided into groups of people who share one or more common characteristics
niche market approach
narrow selected target market segment
marketing mix - four P’s
product, price, promotion, place/distribution
implementation, monitoring and controlling
implementation - process of putting the marketing strategies into operation
monitoring - process of measure actual performance against planned performance
controlling - comparison of planned performance against actual performance and taking corrective action to make sure the objectives are attained
financial forecast - business’s predictions about the future
comparing actual and planned results
- sales analysis - comparing actual sales with forecast sales to determine the effectiveness of the strategy
