Marketing Flashcards
strategy
long-term, broad aims affecting all key business areas; that is, the strategic role of each key business function involves the managers of each function contributing to the strategic direction or strategic plan of the business
marketing
the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives
profit maximisation
occurs when there is maximum difference between the total revenue coming into the business and total costs being paid out
marketing plan
a document that lists activities aimed at achieving particular marketing outcomes in relation to goods or services. The plan provides a template for future action aimed at reaching business goals, such as profit maximisation.
interdependence
the mutual dependence that the key business functions have on one another
marketing concept
a business philosophy that states that all sections of the business are involved in satisfying a customer’s needs and wants while achieving the business’s goals
production approach
a marketing approach that focuses on the production of goods and services
sales approach
a marketing approach that emphasises selling because of increased competition
marketing approach
focuses on finding out what customers want — through market research — and then satisfying that need
customer orientation
the process of collecting information from customers and basing marketing decisions and practices on customers’ wants and interests
customer satisfaction
measures how goods and services supplied by a business meet or exceed customer expectation
relationship marketing
the development of long-term and cost-effective relationships with individual customers
societal marketing approach
a marketing approach that emphasises social responsibilities, as well as the importance of maintaining and improving the wellbeing of customers and society
market
a group of individuals, organisations or both that: need or want products (goods or services), have the money (purchasing power) to purchase the product, are willing to spend their money to obtain the product, are socially and legally authorised to purchase the product
resource market
consists of those individuals or groups that are engaged in all forms of primary production, including mining, agriculture, forestry and fishing
industrial market
includes industries and businesses that purchase products to use in the production of other products or in their daily operations
intermediate market
consists of wholesalers and retailers who purchase finished products and resell them to make a profit
consumer market
a market that consists of individuals — that is, members of a household who plan to use or consume the products they buy
mass markets
in mass markets, the seller mass-produces, mass-distributes and mass-promotes one product to all buyers
niche market
a narrowly selected target market segment (also known as a concentrated or micro market)
customer choice (buying
behaviour)
the decisions and actions of customers when they search for, evaluate, select and purchase goods and services
psychological factors
influences within an individual that affect his or her buying behaviour
perception
the process through which people select, organise and interpret information to create meaning
motive
an individual’s reason for doing something
attitude
a person’s overall feeling about an object or activity
personality
the collection of all the behaviours and characteristics that make up an individual
self-image
how a person views himself or herself
learning
changes in an individual’s behaviour caused by information and experiences
brand loyalty
when a favourable attitude towards a single brand results in repeat sales over time
sociocultural influences
forces exerted by other people and groups that affect an individual’s buying behaviour
social class or socioeconomic
status
a person’s relative rank in society, based on his or her education, income or occupation
reference or peer group
a group of people with whom a person closely identifies, adopting their attitudes, values and beliefs
unconscionable conduct
any practice by a business that is not reasonable and often illegal
price discrimination
the setting of different prices for a product in separate markets
implied conditions
the unspoken and unwritten terms of a contract
consumer guarantees
provide consumers with rights to certain remedies from retailers and manufacturers where goods purchased fail to comply with the consumer guarantee provisions in the ACL
acceptable quality
products that are safe, lasting and with no faults, look acceptable and do all the things someone would normally expect them to do
warranty
a promise made by a business that they will correct any defects in the goods they produce or services they deliver
materialism
an individual’s desire to constantly acquire possessions
product placement
the inclusion of advertising in entertainment
advertising
a paid, non-personal message communicated through a mass medium
puffery
exaggerated claims used for promotional purposes, that no reasonable person would take as factual
sugging
‘selling under the guise of a survey’; a sales technique disguised as market research
self-regulation
a system by which a business or industry controls its own activities rather than being publicly regulated by an outside organisation such as the government
SWOT analysis
involves the identification and analysis of the internal strengths and weaknesses of the business, and the opportunities in, and threats from, the external environment
product life cycle
the stages a product passes through: introduction, growth, maturity and decline
market research
the process of systematically collecting, recording and analysing information concerning a specific marketing problem
marketing data
the information relevant to the defined marketing problem
primary data
the facts and figures collected from original sources for the purpose of the specific research problem
survey
the gathering of data by asking or interviewing people
secondary data
information that has already been collected by some other person or organisation
statistical interpretation
analysis the process of focusing on the data that represents average, typical or deviations from typical patterns
marketing objectives
the realistic and measurable goals to be achieved through the marketing plan
market share
the business’s share of the total industry sales for a particular product
product mix
the total range of products offered by a business
customer service
how well a business meets and exceeds the expectations of customers in all aspects of its operations
target market
a group of present and potential customers to which a business intends to sell its product
primary target market
the market segment at which most of the marketing resources are directed
secondary target market
a smaller and less important market segment than the primary target market
mass marketing approach
a marketing approach that seeks a large range of customers
market segmentation
occurs when the total market is subdivided into groups of people who share one or more common characteristics
marketing strategies
actions undertaken to achieve the business’s marketing objectives through the marketing mix
marketing mix
refers to the combination of the four elements of marketing, the four Ps — product, price, promotion and place — that make up the marketing strategy
implementation
process of putting marketing strategies into operation
monitoring
the process of measuring actual performance against planned performance
controlling
involves the comparison of planned performance against actual performance and taking corrective action to make sure the objectives are attained
financial forecast
the business’s predictions about the future
sales analysis
the comparing of actual sales with forecast sales to determine the effectiveness of the marketing strategy
marketing ROI
measures how much revenue a marketing campaign is generating compared to the cost of running that campaign
product deletion
the elimination of some lines of products
extended marketing mix
the combination of people, processes and physical evidence with the four main elements of the marketing mix
market segmentation
occurs when the total market is subdivided into groups of people who share one or more common characteristics
segmentation variable
a characteristic of an individual or group that is used by marketing managers to divide a total market into segments
demographic segmentation
the process of dividing the total market according to particular features of a population, including the size of the population, age, sex, income, cultural background and family size
psychographic segmentation
the process of dividing the total
market according to personality characteristics, motives, opinions, socioeconomic group and lifestyles
behavioural segmentation
the process of dividing the total market according to the customers’ relationship to the product
product/service differentiation
the process of developing and promoting differences between the business’s products or services and those of its competitors
value for money
the desire to obtain the best quality, features and performance for a given price of a product
ethical consumerism
involves buying products that are not harmful to the environment, animals and society
Fair Trade movement
an alternative method of international trade that promotes environmentalism, fair wages, alleviation of global poverty and a fair price for farmers and work
product/service positioning
the technique in which marketers try to create an image or identity for a product compared with the image of competing products
products
goods or services that can be offered in an exchange for the purpose of satisfying a need or want
total product concept
the tangible and intangible benefits (attributes) a product possesses
brand
a name, term, symbol, design or any combination of these that identifies a specific product and distinguishes it from its competition
brand name
that part of the brand that can be spoken
trademark
signifies that the brand name or symbol is registered and the business has exclusive right of use
brand symbol or logo
a graphic representation that identifies a business or product
manufacturer’s brand or national
brand
a brand owned by a manufacturer
private or house brand
a brand that is owned by a retailer or wholesaler
generic brands
products with no brand name at all
packaging
the development of a container and the graphic design for a product
labelling
the presentation of information on a product or its package
label
that part of the package that contains information
price
the amount of money a customer is prepared to offer in exchange for a product
cost-based pricing
a pricing method derived from the cost
of producing or purchasing a product and then adding a mark-up
mark-up
a predetermined amount (usually expressed as a percentage) that a business adds to the cost of a product to determine its basic price
supply
the quantity of a product businesses are willing to offer for sale at a particular price
demand
the quantity of a product consumers are willing to purchase at a particular price
market-based pricing
a method of setting prices according to the interaction between the levels of supply and demand — whatever the market is prepared to pay
competition-based pricing
where the price covers costs (cost of raw materials and the cost of operating the business) and is comparable to the competitor’s price
price leader
a major business in an industry whose pricing decisions heavily influence the pricing decisions of its competitors
bundle pricing
where customers gain a ‘package’ of goods and services in addition to the tangible good they purchased
price skimming
when a business charges the highest possible price for the product during the introduction stage of its life cycle
price penetration
when a business charges the lowest price possible for a product or service so as to achieve a large market share
loss leader
a product sold at or below cost price
price points (or price lining)
selling products only at certain predetermined prices
prestige or premium pricing
a pricing strategy where a high price is charged to give the product an aura of quality and status
promotion
the methods used by a business to inform, persuade and remind a target market about its products
promotion mix
the various promotion methods a business uses in its promotional campaign. Methods include:
* advertising
* personal selling and relationship marketing
* sales promotions
* publicity and public relations
advertising media
refers to the many forms of communication used to reach an audience
personal selling
the activities of a sales representative directed to a customer in an attempt to make a sale
relationship marketing
the development of long-term and cost-effective relationships with individual customers
loyalty program
a rewards-based program offered by a business to customers who frequently make purchases
sales promotion
the use of activities or materials as direct inducements to customers
publicity
any free news story about a business’s products
public relations (PR)
those activities aimed at creating and maintaining favourable relations between a business and its customers
channel
any method used for
carrying a message
noise
any interference or distraction that affects any or all stages in the communication process
opinion leader
a person who influences others
word-of-mouth communication
when people influence each other during conversations
place or distribution
activities that make the products available to customers when and where they want to purchase them
distribution channels or marketing channels
the routes taken to get the product from the factory to the customer
non-store retailing
retailing activity conducted away from the traditional store
market coverage
refers to the number of outlets a firm chooses for its product
physical distribution
all those activities concerned with the efficient movement of the products from the producer to the customer
inventory control
a system that maintains quantities and varieties of products appropriate for the target market
people
the people element refers to the quality of interaction between the customer and those within the business who will deliver the service
processes
refers to the flow of activities that a business will follow in its delivery of a service
physical evidence
everything that the customer sees when interacting with a business
e-marketing
(electronic marketing) the practice of using the internet to perform marketing activities
podcasting
the distribution of digital audio or video files over the internet
blog
an online journal that can be added to by readers
social media advertising (SMA)
a form of online advertising using social media platforms such as Facebook, YouTube and Twitter to deliver targeted commercial messages to potential customers
reach
the number of people exposed to the message of an advertisement
frequency
the average number of times someone is exposed to the message of an advertisement
transnational corporations (TNCs)
any businesses that have production facilities in two or more countries and that operate on a worldwide scale
global branding
the worldwide use of a name, term, symbol or logo to identify the seller’s products
standardised approach
a global marketing strategy that assumes the way the product is used and the needs it satisfies are the same the world over
customised approach or local
approach
a global marketing strategy that assumes the way the product is used and the needs it satisfies are different between countries
global pricing
how businesses coordinate their pricing policy across different countries
customised pricing
occurs whenever consumers in different countries are charged different prices for the same product
tariff
a tax on an imported product
market-customised pricing
prices that are set according to local market conditions
standardised pricing
the practice of charging customers the same price for a product anywhere in the world
competitive positioning
relates to how a business will differentiate its products
