Marketing Flashcards
1
Q
Marketing -
A
- provides the link between customer and business; mutually beneficial exchange process for the business and the customers
2
Q
The chain for marketing
A
Business makes profit <- marketing is mutually beneficial -> customers experience good value for money
(Marketing is about building the relationships between sides so that customers come back)
3
Q
Relationship marketing -
A
- approach to marketing in which a company seeks to build long - term relationships with its customers by providing consistent satisfaction; focuses on customer retention rather than one off sales.
4
Q
Market analysis -
A
- involves examining the particular characteristics of a market such as market size and growth
5
Q
Decision making to improve performance in marketing: (5)
A
- Setting marketing objectives
- Understanding what customers want and can afford
- Understanding the conditions in the market
- Understanding what the capabilities and strength of the business are relative to competitors
- Understanding how best to deliver the benefits that customers are willing to pay for and in ways where the business earns suitable returns
6
Q
Marketing process: (5 + conclusion)
A
- Set objectives
- Analyse marketing data
- Make decisions
- Implement decisions
- Review
=> Marketing will help identify the opportunities, develop the right offerings, ensure the benefits are communicated and that customers can access it -> ‘right product, at the right place, at the right place, at the right price and the right time’.
7
Q
Ethics and marketing -
A
- refers to whether the actions of a business decisions are perceived as morally right or wrong
8
Q
Examples of ethics and marketing: (4)
A
- Promotion to children (?)
- Harmful goods
- New drugs and setting prices
- Distribution of chocolate near school given the level of obesity in UK
9
Q
Marketing objectives -
A
- the targets set for the marketing activities of the business
10
Q
Marketing objectives: (5)
A
- Sales volume - measures the level of sales in a given period of time in terms of the units sold
- Sales value - measures the level of sales in a given period of time in terms of the amount spent
- Sales growth - the percentage change is sales volume or value over a given period of time
- Market share - measures the sales of one brand or business as a percentage of total market sales in a given period of time
- Brand loyalty - when customers continue to purchase from the same brand over and over again, despite competitors offering similar products or services
11
Q
Market share formula = (objective)
A
= sales of this product/total market sales x 100
If an objective was set as maintaining market share it means that the sales need to be growing at the same level as competitors
12
Q
High market share (3)
A
- Relatively high sales and possibly profit
- Relatively high outputs; may give the business power over suppliers and other partners - this may enable it to negotiate better deals in terms of lower prices or better quality
- Relatively high prominence in the market; this may raise the profile of the business; strengthen the brand and make launching new products easier
13
Q
Internal influences on market objectives: (6)
A
- Overall strategy of the business
- The ambitions of managers
- Existing position of the business
- The amount that business can produce
- Finance
- Employees of the business
14
Q
External influences: (5)
A
- Political and legal environment
- Economic change (including globalisation)
- Social change
- Technological changes
- Competitive environment
15
Q
Sales value =
A
= price per unit x number of units sold
16
Q
Marketing mix (7)
A
- Price
- Product
- Place
- Promotion
- People
- Physical environment
- Process
17
Q
Promotional mix (5)
A
- Advertising: paid for communications
- Public relations: unpaid for communication
- Sales promotions
- Sponsorship
- Branding
18
Q
Marketing mix -
A
- the combination of marketing decisions that influence a customer’s decision to buy
19
Q
Product -
A
- anything that is capable of satisfying customer needs, needs to exist for other elements of marketing mix to take place
20
Q
Price -
A
- the amount of money that customer pays for the product
21
Q
Promotion -
A
- the main aim of promotion is to ensure that customers are aware of the existence and positioning of products. Promotion is used to persuade customers that the product is better than competing products and to remind customers about why they may want to buy it
22
Q
Place -
A
- place refers to where the product is sold and how a business gets its products to the customers (distribution)
23
Q
People -
A
- people involved in the transaction
24
Q
Physical environment -
A
- physical premises of the business(décor/cleanliness)
25
Q
Processes -
A
- how the product is actually bought (website/car park/payment method)
26
Q
Perceived benefits -
A
- the aspects of a product or service that will appeal to prospects and customers
27
Q
Porters Generic Positioning strategies -
A
- describe how a company pursues competitive advantage across its chosen market scope
28
Q
Cost leadership strategy -
A
- a term used when a company projects itself as the cheapest manufacturer or provider of a particular product or commodity in a competition
29
Q
Differentiation strategy -
A
- how the product can be changed from competitors (design/quality); businesses that aim to compete based on differentiation rather than price
