marketing Flashcards
Define marketing
Marketing is a essential way in which a business engages its customers and the wider community with its products and services. Without some forms of marketing customers may not be aware that the product exists.
why is marketing so important to a bussiness?
Marketing is very important to a business as it makes the customers aware of your products or services, engages them and then helps them in the buying decision.
What are 3 elements (essential characteristics) of marketing?
The 4p’s-market mix-price, product, place and promotion
Corporate social responsibility-refers to how the performance is doing not just on profit but other factors such as environment-keeping it environmentally friendly
Target market attributes-such as market dimensions, market segmentation, consumer trends and behaviour
what is the relationship between marketing and the following business objectives:
Increasing profit – through generating more sales and revenue for the business through the marketing of goods/services.
Increasing market share – obtain a higher proportion of sales in the marketplace compared to competition.
Expanding the size of the business – offer new products in complimentary or even different categories. Example – Coca-Cola and Diet Coke, similar products but different target market.
What is marketing segmentation?
Market segmentation is the division of a market into different groups of customers with distinctly similar needs and product/service requirements
Geographic and demographic segmentation
geographic: This can include a suburbs or regions, cities, countries, rural or urban regions.
demographic: This can include age, religion, gender, family size, ethnicity, income, education.
psychographic and behavioral segmentation
psychographic: Is the process of grouping people based on lifestyles and personalities. social class, personalities
Behavioural segmentation: divides consumers according to behaviour patterns as they interact with a company, product or service. It studies the behavioural traits of consumers — their knowledge of, attitude towards, use of, likes/dislikes of, or response to a product, service, promotion, or brand.
The 4p’s the marketing mix
product, price, promotion, place
define product:
define intangible and tangible:
A product is a good or service that can be offered in an exchange for the purpose of satisfying a need or want.
Tangible product – the physical item that is purchased. This can include food, cars, phones etc.
Intangible product – the part of the product that does not have a physical aspect to it. For example customer service in a restaurant and the prestige associated with owning a luxury car
define price and pricing strategies
price is the cost to buy a product or receive a service.
Pricing strategies:
psychologic pricing: making the product look less than it is eg. 99 cents
price skimming-placing a high price on a new product as people are willing to pay extra to get the product early
premium pricing-setting a artificially high price to increase the prestige associated with the product.
define promotion
Attract new customers by raising awareness of a particular product
Increase brand loyalty
Encourage existing customers to purchase more of a product
Provide information so customers can make an informed decision
Encourage new customers to purchase new products
Change individuals’ behaviour through information persuasion
3 types of promotion
personal selling: selling directly to the customer or potential customer eg. real estate, cars, expensive products
publicity and public relations: doing things to get your brand recognized in the market place eg. sponsorship, community partnerships
advertising: using forms of media to convey your message eg. TV ads, radio, billboards
