Marketing Flashcards
What are the 3 criteria for the traditional view of marketing?
Marketing:
-Place the product before potential customers
Selling:
-Persuading potential customers to buy a particular product
Advertising:
-Be persuasive
-Generate awareness
What is the definition of the modern view of marketing?
Management process responsible for identifying, anticipating and satisfying customer requirements profitably (does product meet expectation?)
What do customers want (requirements) from a product or service?
-Customer state of deprivation which needs to be satisfied (Physical, material, social, emotional needs)
-Product shaped by customer personality (if individual person)
-Customer demands backed by a willingness to pay
What is service-dominant logic?
Organisations, business, markets and society is based on the exchange of services (2 way exchange)
-Marketing should create value with the customers
What is the objective of Customer Relationship Management (CRM)?
-Acquire as many new customers as possible
-Maximise sales to the existing customer base
Define Customer Lifetime Value (CLV)
The total net value a customer/group of customers brings to a business over their relationship span
What are the 3 channels for digital marketing?
Paid media:
-Paid adverts to reach market (TV or print adverts)
Owned media:
-Through channels owned (website, emails, brochures)
Earned media:
-Exposure through interaction with customers (social media, reviews)
What is the objective of customer engagement?
-Repeated interaction between a customer and a business (online or offline)
-Strengthen relationship between a customer and business
What are the 4 dimensions of customer engagement?
Involvement:
-Measurable relationship aspects between a business and its customers
Interaction:
-Actions the customers contribute to the business (payment, reviews)
Intimacy:
-Sentiment customers hold for the product/service offered by the business
Influence:
-Likelihood customers will recommend product/service to others
What are the tools for Customer Relationship Management (CRM)?
Cost effective targeting:
-Collect data on customers to target specific marketing
Permission marketing (inbound marketing):
-Identify relevant groups from signup (mailing lists, visiting certain websites)
Tailored marketing communications:
-Tailor to meet specific needs of small groups of customers or individuals
Sense-and-respond communications:
-Monitor customer behaviour/engagement to personalise required relationship (feedback forms)
Automated communications:
-Targeted communications (email) sent to customers automatically
Loyalty programs:
-Loyalty schemes identifying individual patterns
Why is segmenting the market important?
-Create market offers to meet the needs of customers
-Identify the needs of customers (may be diverse)
-Split overall market into smaller groups to customise for each group
What factors are used to segment the market?
Demographic factors: [business to consumer]
-separate by statistical means (age, gender, family status, education, nationality, religion, ethnicity)
Geographic factors: [business to consumer/business]
-Location of customers
Behavioural and psychological factors: [business to consumer/business]
-Separate by attitude towards a specific product
What are the 7 p’s of marketing mix used to maximise demand?
-Product (or service)
-Price
-Promotion
-Place
-People
-Process
-Physical evidence
Give an overview of ‘Product’ in the marketing mix model
The products or services provided to the customer:
-Variety
-Design
-Features
-Certification
Branding: (customer perceived distinguishing features to rivals)
-Quality
-Consistency
-How the brand makes the customer feel
Give an overview of ‘Pricing’ in the marketing mix model
-Set appropriate price to maximise profit (market determined)
-High price indicates high value to customers (high sales)
Vary short term price to:
-Promote sales
-Capture market share
-Signal high value product
