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
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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
Importance of packaging *6
*protects against breakage
*makes it easier to handle product
*assists with transportation
*used as part as advertisement by looking appealing
*ensures brand image is reinforced
*contains important information like ingredients and warnings
Factors to consider with price determination *5
*set price sufficient enough to recover costs
*conduct research to determine what target market is prepared to pay
*set price as an indicator of the quality
*keep competitors price in mind
*strong brand = higher price
Pricing objectives *5
*break even - recover costs
*enter new markets
*increase business market share
*increase profit
*steer consumers away from competitors
Name pricing strategies *6
*cost-plus pricing
*price skimming
*penetration pricing
*competitive pricing
*promotional pricing
*psychological pricing
Explain cost-plus pricing
Mark up is added to cost price
Explain price skimming *2
*Usually when new product is introduced to the market
*Offering goods at a high price and justifying it by uniqueness
Explain penetration pricing *2
*putting price lower than competitors
*after loyalty is gained, price with be raised higher
Explain competitive pricing
Looking at what competitors prices are and setting it at a similar level
Explain promotional pricing
Offering promotions so customers can save
Usually to sell unwanted stock
Explain psychological pricing *2
Aka prestige pricing
*Making it seem that people are paying less
*Setting status symbol
Name possible distribution channels *4
*business > customer
*business > retailer > customer
*business > wholesaler > retailer > customer
*business > agent > wholesaler > retailer > customer
What to keep in mind when deciding on distribution channel *4
*type of product - perishable, tech person
*location of customers - intermediaries + availability
*purchase timing - see how often and when people buy to decide on best DC to ensure they can buy whenever
*competitors - distribute better than competitors
Promotion/marketing communication mix *4
*advertising
*sales promotion
*personal selling
*publicity
Planning the advertising campaign *5x2
*setting advertising objectives - purpose + what to achieve
*advertising budget - decide on money amount allocated
*designing advertising campaigns- looking @ TM, objectives and duration
*media selection - best value for money: correct media used
*evaluate process - see if it was successful + gain feedback, was it cost effective
Examples of purpose and what to achieve from advertising (ad campaign) *4
*capturing new market
*product awareness
*improving business brand
*increasing market share by increasing sales
Examples of promotion techniques *4
*price - refer to price a.p.o marketing mix
*free samples - encourages to try and buy
*competitions - encourages to use product
*point of sale displays - displays (that provide demonisation) viable from point of sale - encourages to buy
After sales service *4
*cheaper to retain current customers
*business engages with customers to assess satisfaction and feedback is given
*follow ups to address demands and concerns
*customer feels important and will buy again
Additional elements of personal sales *4
*providing advice
*delivering goods to customers
*arranging/assisting with credit facilities
*exchanging goods
What is E marketing
Use of the internet and social networks as part of the business marketing campaign
Benefits of e marketing *2
*possible to purchase goods 24h
*less expensive than traditional marketing
Explain internet and social media as a method of e marketing *2x2
*internet > quicker feedback
WEBSITE - direct access to product service
APPS - push new info and specials
*social media > inexpensive interactions
>short promotional messages
Delete this
*inexpensive ways to interact with customers
*easier to interact with customers
What is the pro and con of international marketing *2
*Access to bigger market, better material and cheaper labour
*greater competition
Why do governments place restrictions on international trade *2
To: protect the rights of local people and businesses
control competition
Restrictions and regulations *4
*trade agreements
*import duties
*export subsidies
*import quotas
What is the aim of Consumer protection Act (24 April 2009) *3
*protect consumers from unethical marketing
*assist previously disadvantaged individuals of their right to be respected as customers
*align SA with international practices of protecting consumer acts
What rights does the consumer protection act give *8
*terms and conditions
*fair value, quality and safety
*fair and honest dealings
*fair and responsible marketing
*disclosure of information
*to choose
*privacy
*equality of the market
What does intellectual property refer to
Protection of a persons work
How can a persons work be protected
By the law through patents, copyright and trademarks
Where is intellectual property registered in SA
CIPC
Companies and Intellectual Properties Commission
Types of IP *4
*trade marks
*collective marks
*industrial design
*patents
Trade mark *2 (face of the business)
*symbol/words legally registered to be used
*helps customers distinguish the business
Collective mark *2
*sign that distinguishes by geographic origin, materials used or a particular way of manufacturing
*businesses must meet and maintain a standard to use these marks
Industrial designs
when it’s trademarked - aesthetic appeal is protected
E.g colour, shape, pattern
Patents *2
*sole right to a particular product or manufacturing process for a certain period of time
*use it advantageously to attract loyal customers ASAP
Market segmentation *3
*dividing overall market to focus resources on customers with similar needs and wants
*research is done to gain understanding
*ideal to create a market big enough to reach ROI
Feasibility vs viability
Feasibility- workable, practically implemented
Viability- generate sustainable profit
Price
Amount target market is prepared to exchange for product or service
Place
Different channels used to ensure product reaches desired market segment
Looks at different structures (places) product will pass through first
Promotion/marketing communication
Informing target market about product or service through different types of advertising media
Aim of promotion
Formulate message in a way that convinces customer that they won’t do without the product
Advertising (as part of promotion communication) is used to…
Reach and persuade audience into buying product/service
Examples of correct media (ad campaign) *min 4 max 7
*vehicles
*television
*radio
*newspaper
*magazine
*billboards
*directcmail
Sales promotion is used as… *2
a support mechanism for advertising* with the aim of persuading consumers to buy product*
Personal sales or tailor made customer service *2
*product/service variations available
*sales assistant helps by discussing specifications
Branding *2
*Uniqueness of product that portrays certain values (image)
*Name, logo, slogan added to help customers recognise brand
Trade agreements *3
*entered with the aim of increasing trade between countries
*countries gain access to goods that aren’t found locally
*helps increase market
Export subsidies *3
*government support to sectors that export
*keeps exported prices low to compete with international markets
*in tax rebates OR refunding part of import tax used to produce exports
Import duties *3
*tax paid to SARS when goods are imported
*import duty can by Ad volarem or specific
*purpose is to make imports more expensive (buy local)
Ad volarem and specific import duties
Ad volarem - duty is a % based on good’s value
Specific - levied according to product weight
Import quotas *2
*SA gov laws to protect sustainability and growth of local economy
*restrict volume of imports
Intellectual property ensures the correct people…
Receive benefits
*financial gain
*recognition
LSM
a marketing tool used to segment the population into 10 groups based on their living standards. The groups are ranked from 1 to 10, with 1 being the lowest and 10 being the highest.
What does LSM stand for
Learning Management Style
