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Business Grade 11 @ Cedar House > Marketing > Flashcards

Marketing Flashcards

1
Q

Define marketing.

A

The on-going activities of a business to reach the target market (Living standard measurement/LSM - connects to P6F of buyer) and the methods the business utilises to connect and engage with its target market.

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2
Q

What is the purpose of marketing?

A

To convince the market of the value of the products and/or services, with the aim of selling these products or services and making a profit.

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3
Q

What is the strategic role of marketing?

A
  • drives overall performance of the business
  • involves:
    -> formulating a vision for the business
    -> translating this vision into a mission statement
  • creating and supporting a strong and positive brand identity in the market through well planned and well implemented marketing strategy.
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4
Q

What is a mission statement?

A

Describes what needs to be done today, to achieve the vision of the future. The vision describes the expectations of what the business may become.

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5
Q

The brand is the _____ of the business.

A

Perception.
Everything the business does will impact on the perception of the business and thus the brand.

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6
Q

After strategic planning, one must _____ and then move on to ____.

A

Strategic planning -> marketing strategy: Brand image -> implementing marketing strategy

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7
Q

What falls under marketing strategy/brand image?

A
  • identify the overall market scope (environmental scan)
  • determine the unique selling point
  • determine the marketing budget
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8
Q

What falls under marketing: implementing marketing strategy?

A
  • evaluate the effectiveness of both the strategy and its implementation
  • marketing of the product / service offering (marketing mix –> 7P’s of marketing)
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9
Q

Discuss the strategic importance of marketing.

A
  • Enables the business to build the brand (affects reputation)
  • use the brand to remind customers about the business and the products / services offered by the business (gain and retain customers)
  • create a marketing buzz:
    –> business wants consumers to talk about the product/service
    –> stronger awareness of the brand, more likely it will be used for future reference = increase in sales
  • Provides opportunity for feedback e.g. through surveys), thus helps build a stronger brand
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10
Q

Discuss the formulation of the marketing strategy.

A

THere are three approaches:
–> focusing energy on marketing overall brand (spending little time/effort on marketing individual products/services)
–> focusing on marketing the product or service being offered (spending little time on the overall brand of the business)
–> emphasis on both the business and the individual product/services being offered.

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11
Q

What is the five step process for marketing strategies?

A

1: Market scope is investigated by performing an environmental scan
2: Define the target market and USP
3: Determine the marketing budget
4: Implement the marketing mix (7P’s) to achieve their aims
5:Evaluate and review

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12
Q

What is step one of the marketing strategy?

A

Market scope is investigated by performing an environmental scan.

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13
Q

What is step two of the marketing strategy?

A

Define the target market and unique selling proposition.

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14
Q

What is step three of the marketing strategy?

A

Determine the marketing budget.

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15
Q

What is step four of the marketing strategy?

A

Implement the marketing mix to achieve the aims.

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16
Q

What is step five of the marketing strategy?

A

Evaluate and review.

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17
Q

Go into detail on step one of the marketing strategy.

A

Composed of an environmental scan:
- External analysis (industry/competitors/customers analysis)
- Internal analysis
- Market mapping

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18
Q

Go into detail on the external analysis in step one of the marketing strategy.

A
  • Focuses on the external elements that may affect the performance of the business/brand
  • Important to identify possible opportunities and threats.
  • External analysis consists of an industry, competitor and customer analysis. Use these to identify possible threats and opportunities.
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19
Q

Go into detail on the industry analysis in step one of the marketing strategy.

A
  • Consists of scanning the sector that the business operates in.
  • Purpose: identify opportunities and threats using PESTLE-elements.
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20
Q

Go into detail on the competitor analysis in step one of the marketing strategy.

A
  • Refers to all competitors in the market
  • Critical to evaluate competitors strengths and weaknesses to determine effect on business performance and adapt marketing efforts accordingly.
  • Apply P6F, competitors may include level of rivalry, threat of new entrants, and substitute products in the market.
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21
Q

Go into detail on market mapping in step one of the marketing strategy.

A

A visual representation of market conditions/trends. The position competitors hold are plotted and help the business identify its own position within the market, relative to the competitors. Once position is known the implementation of the 7P’s of the marketing mix will be strategically geared towards maintaining and gaining a competitive edge.

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22
Q

How do you create a market map for SA’s clothing industry?

A
  1. Industry reports
  2. Govt sources
  3. Trade publications
  4. Local news outlets
  5. Industry conferences and events
  6. Networking
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23
Q

Go into detail on the customer analysis in step one of the marketing strategy.

A
  • Business needs to keep in mind the power of the buyer (P6F)
  • Both current and potential customers must be analysed
  • Analysing the customer base will help identify potential market segmentations (LSM groupings).
  • Gain understanding of different market segments (culture, beliefs, age etc)
  • Assess how these groups spend their money
  • To group customers with similar spending patterns
  • Lower LSM group have lower level of disposable income and lower standard of living
  • As the customer moves up the LSM index, higher levels of disposable income are available for luxuries = higher standard of living.
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24
Q

Go into detail on the internal analysis in step one of the marketing strategy.

A
  • Applies to elements which are internal to the business.
  • The business is able to control these factors, which comprise of the eight business functions.
  • The following tools can be used in the internal marketing environment
    –> SWOT analysis
    –> value chain analysis
    –> resource based analysis
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25
Q

Go into detail on step two of the marketing strategy.

A

Once internal and external environments have been analysed:
Consider WHAT the target market (customers) need, and WHY they would buy OUR product/service instead of supporting the competitors.
- Factors that will differentiate the business’ product/service is the USP
- USP based on factors such as costs, brand identity/reputation, utilisation of tech (e.g. ordering online, more convenient), quality.

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26
Q

Go into detail on step three of the marketing strategy.

A
  • Marketing shouldn’t be seen as an expense to be minimised, and should be seen as an investment in the business with long term benefits.
  • Amount of money spent on marketing will determine the marketing communication methods used - TV is more expensive than Internet; should not only consider costs but also effectiveness.
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27
Q

Discuss step 4 of the marketing strategy. (Implementation using..?)

A

Uses the 7 P’s to achieve aims:
- Product policy
- People
- Physical evidence
- Processes
- Promotion policy
- Place (distribution)
- Price policy

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28
Q

Discuss ‘product’ under the 7 P’s. What type of goods/services are being sold?

A

Types of products/services being sold:
- Convenience goods
- Select goods
- Specialty goods
- Services

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29
Q

Discuss convenience goods.

A
  • Easy to market (essential products)
  • Customers are not usually brand loyal
  • Make the purchase speedy and easy
  • Different factors will influence the consumer’s decisions to buy
  • Therefore implement different marketing strategies
  • E.g. underwear/panties
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30
Q

Discuss select goods.

A
  • Usually only purchased after the consumer has considered the price, quality and brand name versus the competitors’s
  • E.g. clothing, shoes, jewellery items
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31
Q

Discuss speciality goods.

A
  • Want to be certain that the item is precisely what the consumer wants.
  • Usually very expensive
  • Consumers spend a lot of time making a decision
  • Tend to be brand conscious
  • E.g. cellphones (iStore in WW), wedding dress, M.D dress etc)
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32
Q

Discuss service goods.

A
  • Intangible
  • Could be an individual service or the service could form part of the overall product.
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33
Q

What does the product life cycle look like?

A

There are 4 stages: Introduction –> Growth –> Maturity –> Decline.
Fad: Starts and ends swiftly, within the introduction phase (stage 1).
Fashion: Peaks in stage 2, matures and declines in stage 3.
Basic/essential products: Peaks in stage 3, declines in stage 4, but doesn’t end.

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34
Q

Discuss packaging under the topic of ‘product’ (in the 7P’s).

A
  • Protects the product
  • Makes it easier to stack items on shelves
  • Identifies the manufacturer (e.g. tags on clothing), displays the name, trade mark, and brand like Levi’s/Adidas/MRP etc
  • Displays information about the fabric, how to wash, where it was originally manufactured etc
  • Helps to target different segments of the target market.
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35
Q

What should a business consider when deciding on a price?

A
  • Willingness to pay rpices charged
  • Will have “snob attitude” if the price is too low,
  • Consumer’s price sensitivity: Demand for necessities won’t decrease if price increases, while demand for luxury goods will decrease if price increases.
  • Availability, quality and price of substitute products?
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36
Q

Discuss leader pricing as a pricing strategy.

A
  • The business reduces the price of some products to get customers to come to a shop.
  • They will then buy other products that will go with it.
  • E.g. PnP Clothing T-shirts
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36
Q

Discuss market penetration/low cost strategy as a pricing strategy.

A
  • Sell the product at a low price
  • Attract new customers to try the product
  • May not make a profit initially
  • Price will increase as soon as consumers are familiar or loyal to the new product
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36
Q

Discuss pricing as one of the 7P’s. (Pricing strategies)

A
  • Market penetration/low cost strategy
  • Leader pricing
  • Promotional pricing
  • Bulk discount
  • Prestige pricing
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37
Q

Discuss promotional pricing as a pricing strategy.

A
  • Discounts offered for a special event e.g. summer/winter sales, Black Friday, fathers day etc.
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38
Q

Discuss bulk discounts as a pricing strategy.

A
  • Offered to a consumer that buys large quantities of a certain product
  • Lower cost per unit
  • Purchasing economies of scale
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39
Q

Discuss prestige pricing as a pricing strategy.

A
  • Expectation of paying more for a product e.g. Birkenstocks, Supergo etc
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40
Q

Discuss place/distribution as one of the 7P’s.

A

There are different types of distribution methods that are used by different businesses.
For example:
- At Shein/Temu: Producer –> Consumer
- At PnP Clothing: Producer –> Retailer –> Consumer
- At Nike/Adidas: Producer –> Agent –> Wholesale -> Retailer –> Consumer.

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41
Q

(NB!)
What options are available to the manufacturer when deciding how many retail shops will distribute products?

A

INTENSIVELY DISTRIBUTED:
- Option to sell to as many retailers as possible (e.g. PnPC, MRP)

SELECTIVELY DISTRIBUTED:
- Available at selected number of retailers such as, for example, PnP Major Food Retailer stocking clothing vs PnP Clothing (stand-alone shops)

EXCLUSIVELY DISTRIBUTED:
- Only available at shops that specialise in selling the type of product e.g. make up (WW having Bobby Brown; Zara having Raybands). Higher LSM –> more expensive

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42
Q

Discuss promotion as one of the 7P’s.

A
  • Must be attention grabbing
  • Only quality products/should be advertised
  • marketing campaign have unique and memorable designs, can be made using slogans/catchy phrases/jingles etc
  • Medium of advertising is important - determined by target market (e.g. teens -> instagram adverts)
  • Illegal in SA to criticise or mention competitors
  • Promotional expenses must be budgeted
  • Social media has a big impact
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43
Q

Discuss social media within the promotional aspect of the 7P’s.

A
  • Gives power to consumers to voice opinions
  • Gives insight into needs and allows for response to complaint
  • Info can be shared
  • Help promote sales online
  • Competitions entice customers to interact with brand
  • Business can gain demographic details of their customers.
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44
Q

What are the elements of the marketing communication mix?

A
  • Advertising
  • Personal selling (e.g. friendly sales assistant; impacts rep.)
  • Sales promotion (flash sales/loyalty programs etc)
  • Publicity (positive buzz + media coverage; free advertising; seen as more credible)
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45
Q

Discuss advertising as one of the elements of the marketing communication mix.

A
  • Impersonal messaging aimed at mass audience
  • Message easily ignored
  • Designed by (message/colour/sound etc) and paid for by business
  • Often hard to get customer’s attention
  • Advert overload
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46
Q

What is advert overload?

A

When an advert is seen as background noise and the customer doesn’t engage.
(Publicity doesn’t do this).

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47
Q

Why is positive publicity more effective than advertising?

A
  • Consumer trusts publicity more than targeted advertising
  • Increased credibility and authenticity
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48
Q

How does one evaluate an advert?

A
  • Is it engaging?
    Must divert customer’s attention and stir interest.
  • Is it credible?
  • Does it create a lasting impression/ is it memorable?
  • Does consumer take action?
  • Is it relevant?
  • Is it part of a series?
  • Is there integration with other messages and does it add value?
  • Are key brand attributes promoted?
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49
Q

Discuss personal selling as one of the elements of the marketing communication mix.

A
  • Interaction between buyer and sales person
  • Buyer feels compelled to listen and respond when the sales person shows a personal interest.
50
Q

Discuss sales promotion as one of the elements of the marketing communication mix.

A
  • Examples:
    -> Sampling products
    -> Discount coupons
    -> Buy 1 get 1 free
  • Instant appeal = impulsive purchases
  • Too many sales promotions = perceived as desperate, causes customer to question quality of product/service
51
Q

Discuss publicity as one of the elements of the marketing communication mix.

A
  • Publicity trusted more than advertising - higher credibility and not paid for by business
  • Business does not have control over publicity, messages can be + or -
  • Internal publicity: Impressions of buildings, product displays etc
52
Q

Discuss people as one of the 7P’s.

A
  • People are always part of the business, both internally and externally
  • Hybrid: product and service
  • A business that sells a service sells it from the service delivery POV
  • Attitude, behaviour, skill, morale and motivation levels employees may be a noticeable effect on the service experienced
  • Customer’s perception of the quality of the service may influence satisfaction
  • Employees are face of business - brand ambassadors
  • Quality of after service is vital to secure customer loyalty
53
Q

Discuss physical evidence as one of the 7P’s.

A
  • Overall presentation (must be be visually appealing)
  • Store presentation
  • Appearance of staff members
  • Tangible elements (business cards/brochures/letterheads/signage etc)
  • Used to market the business
  • Can vary between businesses (e.g. WW = formal, MRP = informal)
54
Q

Discuss process as one of the 7P’s.

A
  • In terms of service delivery = operating systems and procedures that must be deisgned and managed to make the service experience as pleasant as possible for customer
  • The part of the service offering that the customer experiences:
    –> how quickly the customer is greeted
    –> time spent in queues
    –> helpfulness of staff
    –> follow-up to evaluate customer satisfaction (surveys etc)
55
Q

How can a business ensure a positive customer experience? (Under Process (7P’s)).

A

Employees must know what to do, when to do it and how to do it. Can be achieved through training, Code of Conduct, code of ethics, effective management.

56
Q

Discuss step 5 of the marketing strategy

A

Evaluate and Review
- Done after the marketing strategy has been implemented
- Identify performance gaps (estimation minus actual performance)
- Assist the business to achieve operational targets ; if not Total Quality Management (TQM) implemented
- Marketing is ultimately geared towards improving overall business performance

57
Q

Discuss the link between the marketing function and others.

A
  • No function is independent
  • Synergy created when functions collaborate
58
Q

Discuss the link between the financial and marketing functions.

A

Financial function makes funds available to:
- Employ staff (graphic designers, social media gurus etc)
- Buy inventory
- Run marketing campaign

59
Q

Discuss the link between the production and marketing functions.

A

Production function manufactures products that will be advertised by the marketing function. Generates profit

60
Q

Discuss the link between the HR and marketing functions.

A

HR function employs and trains staff to ensure the correct skills are in the business to perform all the tasks and pays them fair salaries.

61
Q

Discuss the link between the purchasing and marketing functions.

A

Buy inventory, ensures the availability of the correct quantity at the time that the production dept needs materials and the marketing campaign is committed to deliver.

62
Q

What are some factors that influence marketing?

A
  • Consumer Protection Act (CPA)
  • Ethical vs Unethical marketing
  • Factors influencing buying decisions
  • Branding
  • Franchising
63
Q

What is the CPA?

A

Consumer Protection Act

64
Q

What is the purpose of the CPA?

A

To put legislation in place that will protect the rights of consumers by ensuring the seller acts in a fair manner.

65
Q

What consumers rights are protected in the CPA?

A
  • Right against discriminatory marketing practises
  • Right to privacy
  • Right to choose
  • Right to disclosure of info
  • Right to fair and responsible marketing
  • Right to fair and honest dealings
  • Right to fair value, good quality and safety
66
Q

Give detail on the CPA’s customer’s right against discriminatory business practises.

A
  • Suppliers aren’t allowed to preferential treatment to anyone when:
    –> marketing
    –> selling their goods/service
    –> setting prices based on elements such geographic location, socio-economic status, gender or race/
67
Q

Give detail on the CPA’s customer’s right to privacy.

A

Known as the POPI act (Protection Of Private Information).
- Consumers have the right to refuse unwanted direct marketing such as SMS, telephone, email or letters.
- Business may not continue to market goods/services to consumer if they indicate it is unwanted.

68
Q

Give detail on the CPA’s customer’s right to choose.

A
  • Cooling off period of 5 days allows customer to cancel transactions if not initiated by them
  • may not be auto renewal of fixed term contracts
  • Right to shop around for best deals - not obligated to buy additional/bundled goods/services
  • Consumers can request authorisation before maintenance carried out, not liable to pay for unauthorised work
  • Cannot be charged for quotes or cost estimates
  • Right to return defective goods and request a full refund.
69
Q

Give detail on the CPA’s customer’s right to disclosure of information.

A
  • Language of contracts must be appropriate and easily understood
  • Prices of goods/services must be in full view. If there are two prices for same product, customer has the right to demand paying the lower price.
70
Q

Give detail on the CPA’s customer’s right to fair and responsible marketing.

A
  • Suppliers may not use bait-marketing (e.g. a corset that will make your waist permanently thinner). This damages reputation
  • May not advertise a product/service in order to attract customer and then not have the advertised product at the price/quantity advertised.
71
Q

Give detail on the CPA’s customer’s right to fair and honest dealing.

A
  • Suppliers may not attempt to deceive or mislead customer when advertising
  • No supplier may use physical force, harassment or unfair tactics when marketing goods/services, collecting payment or recovering goods from consumers
  • Overbooking or overselling is not allowed
72
Q

Give detail on the CPA’s customer’s right to fair value, good quality and safety.

A
  • Consumers may return goods to suppliers within 6 months if they are:
    –> of inferior quality
    –> unsafe
    –> defective
  • Supplier has to refund/repair/replace product
  • Producer, distributor and retailer must be committed to the quality requirements and standards outlined in the CPA and can be held liable for damages or injuries if they supply unsafe/defective goods.
73
Q

The ARB are capable of..?

A

The Advertising Regulatory Board are essentially the advertising police. They are capable of:
- issuing fines
- can order brands to withdraw misleading ads
- can publicly shame business

74
Q

The ARB ensures that..?

A

Businesses act in a legal and ethical manner when they advertise.

75
Q

What does the Independent Broadcasting Authority Act do?

A
  • Gives legal recognition
  • Has the right to develop and implement a Code of Advertising Practise in which all advertisers have to comply
  • Ensures ethical advertising in SA
76
Q

Honesty generates _____ and ____ relationships with the public.

A

trust ; positive

77
Q

What things are considered unethical in marketing?

A
  • Materialism and creating false needs
  • Giving products deceptive names
  • Deceiving consumers - selling second hand goods as new
  • Competitive advertising is illegal in SA
  • Using unacceptable language/discriminating
78
Q

Describe the stimulus response model.

A

Step 1: Buyer received a stimulus
Step 2: Buyer processes stimuli
Step 3: Post purchase

79
Q

Give detail on step one of the stimulus response model.

A
  • Buyer received a stimulus or is influenced by ecternal factors when making buying decision.
  • External stimuli may be coming from marketing messages (7Ps), political, technological and economic conditions.
80
Q

How can economic conditions influence the buyer’s decision to purchase a product?

A

Poor economic conditions result in lower disposable incomes, and vice versa.

81
Q

Give detail on step two of the stimulus response model.

A

Buyer processes stimuli.
- Buyer searches for info - consults friends family etc
- Evaluates options
- Consumer may consciously or sub-unconsciously use different criteria to consider alternatives

82
Q

What criteria of the product may a consumer consider when making a decision whether to purchase it?

A
  • Product features
  • Product benefits
  • Emotional considerations (how green is the product?)
  • Associated status with the product
83
Q

What factors influence consumers while making a choice whether to buy a product?

A
  • Personal characteristics (age, marital status, economic situation etc). For example, a teen is more likely to buy into trends than a middle aged person.
  • Psychological factors (beliefs, attitudes, perceptions, previous experience with product, personal motivation etc)
  • Social factors (culture, family, friends, aspirational groups etc)
  • Economic factors (disposable income, inflation rate, exchange rate etc)
84
Q

How do the levels of disposable income impact the sales of essential and luxury goods?

A

Sales of essential goods will increase, while sales of luxury goods will decrease.

85
Q

Give detail on step three of the stimulus response model.

A
  • Post purchase behaviour is based on consumer’s experience when the product is used
  • Expectations not satisfied = negative experience/dissatisfaction
  • Expectations are met or exceeded = future purchases
86
Q

What is branding?

A

The brand is the impression employees make when interacting with customers and the reputation of the business.
The brand:
- sets the business apart from competitors
- tells people what is special about the business
- values and beliefs of the business
- developing a srong brand is part of strategic management
- strong brand = more loyal customers
- brand is combo of name and trademark

87
Q

A value statement describes…?

A

…what the business represents and its core beliefs and philosophy.

88
Q

Can businesses have multiple trademarks?

A

Yes. There are 3 forms of trademarks.

89
Q

What are the forms of trademarks?

A

Manufacturers: the same trade mark is used to market all products under this trademark (e.g. UNILEVER)
Individual: one company manufactures a variety of products but the products are marketed as individual trademarks and not as part of the brand… eg Markham (part of Truworths).
Retailers: the trademark belonging to a retailer e.g. No Name Brand (PnP)

90
Q

What is brand extension?

A

An existing brand is used as a platform to launch a new product in the SAME OR RELATED MARKET.

91
Q

What is brand stretching?

A

An existing brand is used as a platform to launch a product into an UNRELATED MARKET.

92
Q

What are the advantages of brand extension and stretching?

A
  • less risk to distributors with a new product because brand is already an established name
  • products likely to gain loyalty more easily and quickly
  • products attract customer awareness
  • promotional launch costs likely to be substantially lower
93
Q

What are the advantages of a strong brand from the consumers perspective?

A

Links to P6F - power of the buyer.
- helps consumer identify good/service
- consumers may feel safer when buying popular brand
- familiar with features of well-known product
- some brands have the attraction of prestige/status for consumers.

94
Q

What are the advantages of a strong brand from the marketing perspective?

A
  • becomes a guarentee of quality
  • helps the business advertise / reduces marketing costs
  • business can charge more for a well-known brand
  • easier to add new products to range
  • brand preference can help business to dominate certain share of the market
  • if trademark is registered, no other manufacturer may use it (protection from imitation products)
95
Q

Discuss creating and building a brand.

A
  • brand name associated with certain impressions, (+) or (-)
  • perception of brand is reinforced/altered by hearing people discuss it, visiting the website, walking into a branch, meeting an employee, etc.
  • To build a brand, all interactions must have the same positive message.
96
Q

What are the factors for building a brand or creating a brand value? (NB!)

A
  • Clear identity
  • Trust
  • consistency
  • distinctive voice
  • intimacy with customers
  • quality
  • positioning
  • repositioning
  • communication
  • long term perspective
  • internal marketing
  • credibility
  • innovation

CRILD QITIP
(four C’s)

97
Q

Discuss clear identity as a factor for building a brand or creating brand value.

A

Brand represents something unique (USP) to the customer.

98
Q

Discuss trust as a factor for building a brand or creating brand value.

A
  • Customer trusts what the business is saying based on past experience
  • brand must deliver what it represents
99
Q

Discuss consistency as a factor for building a brand or creating brand value.

A
  • consumer experience with brand must remain consistent over long time
  • can be done through face to face, in stores, ads, interaction with employees, etc.
  • brand must project CSR and remind consumers what the business represents.
100
Q

Discuss distinctive voice as a factor for building a brand or creating brand value.

A
  • brand must have strong values
  • strong opinion/attitude/persona (e.g. WW bags no longer plastic, made out of recycled material)
  • external message informs consumers what the brand stands for
  • internal marketing message projects employees in the same brand image
  • important for employees to believe in the brand and live the brand
101
Q

Discuss intimacy with customers as a factor for building a brand or creating brand value.

A

Customer must feel there is a strong relationship between them and the brand..

102
Q

Discuss quality as a factor for building a brand or creating brand value.

A
  • represents the costs benefits
  • what the customers expect from the brand
103
Q

Discuss positioning as a factor for building a brand or creating brand value.

A
  • describes position in the market space that the brand occupies in the mind of the consumer
  • strong brands have clear and unique positions in the target market e.g. WW clothing vs PnP clothing
104
Q

Discuss repositioning as a factor for building a brand or creating brand value.

A
  • occurs when brand tries to change market position to reflect customer tastes (e.g. green clothing)
  • brand may no longer appeal to market group
  • therefore new approach needs to be taken to create a new position in a current/new market
105
Q

Discuss communication as a factor for building a brand or creating brand value.

A
  • Critical for brand development
  • Ensures that all elements of the marketing mix have been clearly thought through and developed
  • With customer’s perceptions in mind e.g. successfully done through online Apps.
106
Q

Discuss long term perspective as a factor for building a brand or creating brand value.

A
  • Speaks to developing and investing in a brand over time
  • Looking at how customer loyalty is to be created and maintained
107
Q

Discuss internal marketing as a factor for building a brand or creating brand value.

A
  • Looking at how the brand is developed internally and externally
  • Focus on the whole business understanding of the brand values and position with the relation to the business mission and vision
  • Get employees to live the brand and become brand ambassadors
108
Q

Discuss credibility as a factor for building a brand or creating brand value.

A
  • The business’ promise to deliver what it has said it would
  • Deliver at the right time, quality, price and place
  • Build a positive reputation with the customers
109
Q

Discuss innovation as a factor for building a brand or creating brand value.

A

Everything the business does should be aimed at reminding the target market about the factors that distinguish the business from its competitors. Includes:
- Functionality of the product
- Packaging of the product
- Delivery and distribution of the product
- Pricing structure
- Design of the website and marketing communication

110
Q

Discuss social media’s key aspects in marketing for the clothing retail industry.

A
  1. Brand Awareness
  2. Influencer marketing
  3. Customer engagement
  4. Visual content and storytelling
  5. E-commerce integration
  6. User-generated content
  7. Advertising opportunities
  8. Analytics and insights
111
Q

What is brand awareness in the context of social media?

A

Social media platforms like Instagram, Facebook, Twitter, and Pinterest are popular for showcasing clothing items through visually appealing content. Clothing retailers leverage these platforms to create brand awareness and establish a strong online presence.

112
Q

What is influencer marketing in the context of social media?

A

Many clothing brands collaborated with influencers to promote their products. Influencers, often with large and engaged followings, can effectively showcase clothing items, provide reviews, and drive their audience to make purchases.

113
Q

What is customer engagement in the context of social media?

A

Social media facilitates direct interaction with customers. Clothing retailers can engage with their audience through comments, direct messages, and interactive content like polls and quizzes. This engagement helps build a community around the brand and fosters customer loyalty.

114
Q

What is visual content and storytelling in the context of social media?

A

Clothing is a visual and personal product. Social media allows retailers to tell a story through visually appealing content such as images and videos. This helps in conveying the brand’s identity and creating an emotional connection with the audience.

115
Q

What is e-commerce integration in the context of social media?

A

Many social media platforms offer e-commerce features, allowing users to shop directly through the platform. This integration streamlines the customer journey, making it easier for them to discover, engage, and purchase clothing items without leaving the social media app.

116
Q

What is user-generated content in the context of social media?

A

Encouraging customers to share their experiences and photos wearing the
brand’s clothing creates user-generated content. This not only provides authentic testimonials but also serves as free marketing when customers share their posts with their social circles.

117
Q

What are advertising opportunities in the context of social media?

A

Social media platforms provide targeted advertising options. Clothing retailers can run ads to specific demographics, increasing the likelihood of reaching potential customers who are interested in their products.

118
Q

What are analytics and insights in the context of social media?

A

Social media analytics tools help clothing retailers track the performance of their marketing efforts. This data includes metrics like engagement, reach, and conversions, enabling businesses to refine their strategies based on what works best for their audience.

119
Q

What is franchising?

A
  • A contract or agreement between the Franchise (supplier / parent company) and the franchise (distributor /individually owned business
  • Franchisee agrees to distribute the product or service in line with certain pre-determined terms and
    conditions set out by the franchisor
120
Q

Discuss franchising from a marketing point of view.

A
  • Franchisor sells a business package which is already successful
  • Franchisee sells the product/service to consumers in a particular area
  • Franchisor decides to sell franchises
  • Initial training
  • On-going training
  • Success or failure of a business is determined by the success or failure of all individual franchisees
  • Franchisor must have a well-defined marketing strategy and ensure consistency across franchise locations.
121
Q

What is a franchise agreement?

A
  • Formal business agreement between the franchiser and franchisor
  • Allows the payment of
    original purchasing price of the franchise to the franchisor
    -> Royalties (5-10% of profit) paid to franchisor
    -> Monthly advertising fee to franchisor for the marketing / advertising on behalf of all franchisees
122
Q

What are the advantages of franchising from a franchisor’s point of view?

A
  • Expands the original business concept
  • Don’t have to spend large amounts of capital
  • Franchisor gains capital when franchises are sold
  • Franchisees usually invest own capital which could motivate them to make a success of the business
123
Q

What are the disadvantages of franchising from the franchisor’s point of view

A
  • Continuous training might be difficult and demanding
  • Franchisors do not have direct control over franchisees
  • Success of the franchise depends on individual franchisees
124
Q

What are the advantages of franchising from the franchisee’s point of view?

A
  • A good chance of success
  • Benefit from proven success and advice from the franchisor
  • Easier to borrow capital
  • Bank knows the money will be invested in the franchise
  • Already proven and successful concept
125
Q

What are the disadvantages of franchising from the franchisee’s point of view?

A
  • Frustrating and limiting to be bound to strict criteria stipulated in the franchise agreement
  • No opportunity to design a unique marketing campaign
  • Marketing campaign is controlled by the franchisor
  • May not provide on-going support promised to the franchisee
  • May have a negative impact on the success of the new franchisee and the overall franchise concept

Business Grade 11 @ Cedar House (10 decks)

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