MARKETING Flashcards
Define marketing
On going activities to connect the business with the target market to convince them to purchase the product or service
What does strategic planning involve
Formulating the vision
Translating that vision into the mission statement and then formulating the marketing strategy(in this you do enviro scanning - determining USP - and determining marketing budget)
What is the strategic role of marketing
Creating and supporting a strong and positive brand identity in the market through a well planned and well implemented marketing strategry
What is the process to formulate a marketing strategy
- Preform an environmental scan
- Define the target market and Unique Selling Proposition (USP)
- Determine the marketing budget
- Implement the marketing mix to achieve the aims of the marketing strategy
- Evaluate the effectiveness of the process and take corrective measures where necessary
What is environmental scanning
External and internal analysis (industry,competitor,consumer, swot, value chain, resource based, usp)
What is market mapping
Visual representation of market conditions and trends, different competitors are plotted on the map and then when the business knows their own position relative to these competitors- the marketing efforts will be geared to creating, maintaining or gaining competitive advantage
What is LSM groups
It is a tool that divided individuals based on avaliable disposable income and socio economic status. 1 being low income and 10 being high income with high disposable income.
This is used to then create a target market however other factors should be considered like culture and lifestyle, often marketing departments use cookies and analyse loyalty cards to specially market to different groups
What is the USP based on
Costs
Brand identity
Utilisation/ incorporating technology
Quality
What is the main aim of all marketing
To ensure that the 7 ps of marketing are directed at the consumer. This means that the marketing stratergy is fully implemented
What is the marketing mix
Product, price, place, promotion
What is the communication mix
Advertising, sales, personal selling, publicity
What is the service marketing
People, physical evidence and processes
What is market penetration pricing
Sell product at low price to get new customers- then increase the price after customer loyalty is built
What is leader pricing
Business reduces the price of some products to get customers to the shop in hopes they will spend more money
What is promotional pricing
Discounts offered at special events
What is bulk discount pricing
Large quantities at lower cost
What is Prestige pricing
Charging based on brand and image - paying more for the product bc of brand name
What is the distribution channel
Manufacture - wholesaler - retailer - consumer
What is the last step in the marketing strategy
To evaluate and review the process to identify preformance gaps - often done by TQM
What is the aim of the CPA
Purpose is to put legislation in place that will protect the rights of the consumer by ensuring the seller acts in a fair manner when goods/seller are supplied to consumers - it stipulates certain behaviour required by the business in the marketing of goods and services
Name 3 rights outlined by the CPA
The right to fair and responsible marketing [no bait marketing]
The right to privacy
The right to disclosure of information
What is the ARB
Advertising regulatory board - ensure businesses act in a legal + ethical manner
The IBA (independent broadcasting authority act) gives the ARB legal recognition + right to implement the code of advertising practice in which all advertisers have to comply
Give 3 examples of unethical advertising
- materialism where false needs are created
- deceptive names (pizza slimming meal)
- competitive advertising is illegal and unethical
What are the steps to Philip kotler buying decision model
- Buyer receives stimulus (external factors like 7 ps, economic, political or technological)
- Buyer processes stimuli (different steps | recognise problem | search for info | evaluate different alternatives | make purchase decision) - this step is influenced by personal, physiological, social and economic factors
- Post purchase behaviour
What is brand extension
An existing brand is used to launch a new product into the same or related market
What is brand stretching
An existing brand is used to launch a product into an unrelated market
