Marketing Flashcards
What is marketing?
Refers to activities a company undertakes to promote the buying or selling of a product
Involves all the actions a company undertakes to draw in customers and maintain relationships with them
Seeks to match a company’s products and services to customers who want access to those products -> ultimately ensures profitability
Importance of relationships in marketing
Marketing is based on the relationship between the buyer and the seller
Research shows that it is less costly to keep an existing customer than to get a new one
Successful marketing involves:
“Putting the right product in the right place, at the right price at the right time.”
If you’re able to do this, you should have a winning marketing strategy.
Seven functions of marketing - know any 4 of them
Pricing, Selling, Financing, Distribution
Product
research, product development, packaging, and branding
Price
costs to produce, pricing strategies, government policies
Promotion
advertising, sales promotion, publicity, and personal selling
ex. contests, coupons, giveaways
Place
where and how, Channels of distribution, Location, Transportation
Competitive market
All the sellers of a specific product
Market share
% of the market that a company or brand has
Target market
The group of people most likely to purchase a specific product or service
Market segmentation
Dividing a broad consumer or market, into sub-groups of consumers based on shared characteristics
What is a marketing plan?
4 components of a plan
The marketing concept
Three elements of the marketing concept
Customer satisfaction
Customer satisfaction is the positive feeling a customer gets when the product or purchase meets or exceeds the customer’s expectations.
Total company approach
All employees of the business must work together as a team
Focus is on the earning profits through customer satisfaction
Every employee can have an effect on the customer.
Profit
Best way to make a profit is to satisfy customers
THe main goal of most businesses is to make a profit
Skills of a good marketer
- Creativity
- Analytical/ Critical Thinker
- Communicator
- Technological Proficiency
- Adaptability
- Detail Oriented
AIDA
Attract Attention: Successful advertising relies on a brand-centric headline, concise print content, and attention-grabbing strategies in broadcast ads to engage and retain the audience.
Gain Interest:Ads should be straightforward, aiming to captivate and pique the audience’s interest, enticing them to explore the brand further, whether in person or online.
Build Desire: Link your sales message to visuals by presenting a relatable problem solved by your product, as demonstrated in a Sprite commercial with thirst, to evoke consumer desire.
Get action: Concisely convey the motivations to purchase, including your logo, slogan, brand name, and contact details, while guiding customers on how to locate your brand both in the physical and digital realms.
Three types of economic systems: Command Economy
Property ownership is limited, leading to government control of profits, employment of all workers, and centralized authority over pricing, quality, style, and supply of goods and services.
Three types of economic systems: Market Economy
Encouraging private property ownership, where profits are at the discretion of business owners who compete based on quality, services, price, reputation, and warranties.
Three types of economic systems: Mixed Economy
Property ownership varies among individuals, corporations, and government, with profit encouraged but taxed for government projects, and robust corporate competition, sometimes involving government as a competitor.
What is supply?
willingness and ability of sellers to produce and offer to sell different quantities of a good
What is demand?
driving force of our economy
the quantity of goods and services at a given price
Point of equilibrium
market supply and demand balance each other, and as a result prices become stable
Marketing strategy
Once you find an opportunity, you must develop a marketing strategy
A business plan and a marketing plan
Target Market + Marketing Mix = Marketing Strategy
4 qualities of a target market
- Clearly defined wants and needs
- Money to buy (your product)
- Willingness and authority to buy (your product)
- Enough customers in the market
Mass marketing
consists of all of the customers for a specific type of product
What are the four categories of market segmentation
- Geographic
- Demographic
- Psychographic
- Behavioural
The three categories of influences on consumers
- Psychological
- Social
- Situational
Direct vs indirect competition
Two or more businesses offer the same product or service and compete for the same market, to satisfy the same customer need
vs
Two or more businesses compete for the same market to satisfy the same customer need, but offer different products or services.
Competitive edge
the special feature or aspect of a product that makes it different from and better than the others
Price vs non-price competition
1.Competing on the basis of price
Focus is on making the most profit by offering the lowest prices enabling more sales
2.Competition that is based on something other than price
Other 3 Ps in the Marketing Mix
Six stages of the buying decision
- Recognition of a need
- Information Search
- Evaluation of Options
- Decision to Buy
- Purchase
- Post-purchase Evaluation
Four levels of purchasing decisions
Impulse - Purchase made with no planning or research
Routine – Made quickly and without much thought
Limited –Made with some research and planning
Extensive – Involves a great deal of research and planning
