marketing Flashcards
what is marketing?
anticipating, identifying, and satisfying customer needs
what does marketing involve?
IDENTIFYING - what customers want and need through market research
ANTICIPATING - what customers demand can change so it is important to look ahead to spot the next big thing. allows an enterprise to respond more quick to changing tastes and fashion
SATISFYING - providing products where and when they are wanted at a price that customers will actually pay
what will an enterprise use marketing to achieve?
- raise customer awareness
- increase/maintain brand loyalty
- improve image of company
- increase or defend sales market share or profit
- help enterprise compete
- help enterprise reach its target market
how does marketing help customers?
- provides customers with knowledge about products so they can make informed decisions and save time searching for info
- being able to make informed decisions can save customers money
- raises awareness of products customers didn’t realise were available so they can purchase it
- enterprises have to keep customers needs and wants in mind. can lead to suitable products being made available
what is customer retention?
measuring how loyal customers are to an enterprise (and the likelihood of them buying products or services again)
why is it important for an enterprise to retain customers?
5% increase in customer retention increases profits 125%
- marketing is expensive, from research to promotions and to attract customers you need to advertise
- returning customers can provide stable income making cash flow planning easier
- helps established maintain brand loyalty to increase chance of repeat custom
- loyal customers spend more per visit
- good word of mouth advertising can increase sales and potentially market share
what is customer satisfaction?
the extent to which customers are pleased with the products and services provided by an enterprise
why is it helpful to know what customers want?
it allows the enterprise to adapt to please its customers and it is also helpful to know opinions of lost and potential customers to find out what it could or should do to re attract/attract customers.
what are things you should measure to measure customer satisfaction?
- number of sales: have they increased/decreased? be careful because this could be due to other factors like changes in income tastes or competition rather than unhappiness
- number of complaints and returned products” are customers unhappy? can lead to bad rep and loss of sales, take action quickly (but products can be returned for many reasons
what are ways to obtain feedback from customers?
- questionnaires and surveys: in person or electronic, a few short questions
- suggestion boxes and comment cards
- mystery shopper programmes: people act as customers to test service offered by an enterprise like in Starbucks, high cost though
- focus groups: to explore the needs thoughts and opinions of customers
what are some methods of retaining customers?
- offering good or improved quality products
- offering a new or wider range of products and designs
- offering good customer service - personal attention to their needs by training employees well
- providing after sales services and support
- resolving complaints quickly
- providing detailed info about products
- communicating regularly with customers
- rewarding loyalty
- asking for feedback to find out what changes need to be made.
what does justify mean?
support a case with evidence/argument
what are the 2 types of adverts?
informative or persuasive
advantages and disadvantages of leaflets
easy simple and cheap, can be kept for future
often seen as junk mail so ignored, pollution issue caused by litter
advantages and disadvantages of posters and billboards
good visual impact, can be seen numerous times, can target people in a location
easy to miss, only seen for a few secs, no detailed info, can be easily damaged
advantages and disadvantages of online communication and SM
can have two way communication with customers, can be accessed in most countries so large audience, sites easy to update
people have to have access to internet, easy to ignore/block out adverts, can be easy to miss
advantages and disadvantages of sponsorship
association with another party can increase awareness amongst target audience
high cost, negative publicity for both parties sometimes
advantages and disadvantages of newspapers
can reach large numbers of people and can be kept for future reference
can be expensive depending on size/position, not everyone reads newspapers.
advantages and disadvantages of television
can reach large number of people, can target audiences, colour sound and motion helps to attract attention
expensive to produce advert and pay tv company to show, cannot change message easily, easy to ignore or skip
advantages and disadvantages of cinema
uses sound colour and motion for impact, potential customers can be targeted by film shown
target market is small, only see it once, high cost to produce and show
advantages and disadvantages of magazines
can be used to target a local or national special audience
can be expensive based on choice of magazine, size of advert and colour used
advantages and disadvantages of newsletters
can provide regular updates to customers and can be posted to individuals, whole area, or placed
customers may not provide contact details, they may not read newsletters, time and cost is high
advantages and disadvantages of word of mouth
free, personal, and honest
no control over what customers say
advantages and disadvantages of announcements
relatively simple to arrange, can target people in a given location
target market likely to be small, not everyone listens
