Marketing [11] *G11 Flashcards
Marketing
Activities that have impact on the business and customers decision to buy or not
What’s must be considered when setting
price
Products demand and competition
What is sensitivity
How willing people are to pay for something
High sensitivity means that the market finds price high and will purchase elsewhere
Loading
Linked to output required to full orders and prevent overloading of employees and machines
Elements in marketing mix *4
Product
Price
Place
Promotion
Elements in promotion marketing communication mix *4
Advertising
Sales promotion
Personal selling
Publicity
What is the market *2
*Any place where goods and services are bought and sold
*Goods are bought by the target market
What is product orientated marketing *2
*concentration on the skills, knowledge and systems needed to produce a specific output
*when research is done, focus is on product’s characteristics
What is market oriented marketing *2
*concentration on satisfying needs and wants of customers
*when research is done, focus is ensuring changes in customer needs and wants are timeously identified
Why will a successful business combine product and market orientated marketing *2
- Business will continue to develop the product/service in accordance to the customer’s needs and once. This will help extend the life cycle of product and service
*Businesses that adapt to satisfy customer needs through top quality.
More sustainable and successful
What should a business do to build?And protect a competitive advantage *2
*understand the needs and wants of the target market
* Business should be able to predict future trends
What are the steps in the marketing process *4
Market research and development
Promotion
Logistics/distribution
Sales
Explain market research
Research done to understand consumer behaviour and delivery expectations
How does market research help better understand expectations of of consumers *4
*product/service and packaging demands
*price people are prepared to pay
*place where target market wants to access
*preferred channels of communication
Explain promotion
Informing target market about product/service offered
Logistics/distribution *2
Movement of product/service* to ensure it reaches desired market on time*
Sales
Transferring product ownership from business to customer
What are the aims or the marketing function *3x2
*creating and maintaining competitive advantage > increase market share
*improving current product/service > broaden target market
*identifying new markets to grow in > ensures opportunity to grow
Market segments *7
*income groups
*similar ages
*geographical regions
*gender
*lifestyle
*product use
*cultural
What does marketing mix ensure
Businesses product is marketed affectively
Keeping segment in time
What are the elements of the marketing mix *4
*product
*price
*place
*promotion/marketing communication
Product
Characteristics of product- logo, packaging, trademark
Name and explain different types of products/services *4x2
*consumer goods - goods bought by consumers
*consumer services- purchased for personal use
*producer goods - goods used in the day to day running of the business- machines
*producer services- assist the business with daily operations- banking
Characteristics of branding *4
*unique product features + bs image
*distinguishes > persuades customer
*loyalty form creating status
*guarantee product represents a particular quality
What is a brand
Name, logo, slogan added to a product to assist the customer to recognise them
What makes a product successful *4
Brief elaboration
*satisfies needs/wants (must still monitor)
*design - consumer must desire by looking
*competitive advantage - unique product builds it
*cost - bs wants to recover costs+make profit
What does design refer to *4+1
Quality, consistency, performance, appearance, and overall brand image
What is opportunity cost
The fact that a customer has to sacrifice another item if the product is purchased
Steps to developing a product *6 x 2
*generate ideas - input from variety sources e.g employees, competitors, customers
*research - resources needed e.g capital, skills, raw material
*feasibility and viability - assess potential market share and look at break even points
*prototype- tests to identify and fix problem
*market testing - small group, feedback to adjust
*product launch - approval of final product or service, introduced to market on larger scale
Steps in the product life cycle *5
*development
*introduction
*growth
*maturity
*decline/withdrawal
Explain introduction (Steps in the product life cycle) *3
*product is introduced
*sales increase slowly
*little profit - business has to recover research and development costs
Explain growth (Steps in the product life cycle) *4
*sales increase as promotion strategies attract customers
*business must be aware of competitors reaction to introduction to adapt
*starts to make profit
*frequently communicating generates loyalty
Explain maturity (Steps in the product life cycle)
Sales volume are maintained or start decreasing
Explain decline/withdrawal *2
*customers lose interest as there is a new product
*business usually puts products on sale to get rid of old stock
How can the life cycle of a product/ service be extended *6
*variation
*new markets - geographical area/ new market
*development - redesign to modernise or improve
*distribution channels - make more accessible
*promotion
*price
What does packaging refer to
The way a product is presented to the customer