Marketing Flashcards
1
Q
Factors influencing consumer choice - economic
A
Impacts from changing cycles of money, influencing a customer’s willingness and ability to spend
2
Q
Implementation
A
Marketing action is put into place
3
Q
Monitoring
A
Checking and observing the process
4
Q
Controlling
A
Comparing planned and actual performance and taking corrective action
5
Q
The communication process - opinion leaders
A
Anyone who influences others
6
Q
The communication process - word of mouth
A
People influencing others during conversation
7
Q
e-marketing
A
The use of the internet to perform marketing activities, allowing the business to interact with consumers more efficiently
8
Q
Engaging in fair competition
A
Competition and Consumer Act 2010 restricts:
- Cartel Conduct
- Mergers
- Sugging
9
Q
Market Research
A
Systematically collecting, recording and analysing information concerning a marketing problem
10
Q
Market Research Process
A
- Determining information needs
- Collecting primary and secondary data
- Analysing and interpreting data
11
Q
People
A
Staff and salespeople who work for the business
12
Q
Processes
A
Flow of activities a business will follow to get products to consumers
13
Q
Physical evidence
A
Environment the service will be delivered and materials needed to carry out the service
14
Q
Price including pricing methods - cost based
A
Derived from the cost of producing/purchasing a product and then adding a markup
15
Q
Price including pricing methods - Market based
A
Prices set accordingly to supply and demand
16
Q
Price including pricing methods - competition based
A
Prices set accordingly to prices of competitors
17
Q
Products - goods and/or services (packaging)
A
Development of a container and the graphic design of a product
18
Q
Ethical Marketing
A
Conduct that goes beyond the legal requirements
19
Q
Truth and accuracy
A
- Concealed facts
- Vague words
- Puffery
- Good taste in advertising
20
Q
Truth and accuracy - concealed facts
A
Consumer isn’t given all the information
21
Q
Truth and accuracy - Vague words
A
exaggerated words lacking true meaning
22
Q
Truth and accuracy - puffery
A
exaggerated praise used for marketing purposes
23
Q
Truth and accuracy - good taste in advertising
A
subjective to how it’s interpreted
24
Q
Products that may damage health - alcohol
A
- Broadcasting Services Standards 2020
- Responsible Alcohol Marketing Code
- Commercial Television Industry Code of Practice
25
Products that may damage health - junk food marketing to children
- Broadcasting Services 2020
- Food and Beverages Advertising Code
26
Factors influencing customer choice - sociocultural (culture)
Learned values, beliefs shared by society
27
Factors influencing customer choice - sociocultural (sub-culture)
Cultural group within a larger cultural group
28
Factors influencing customer choice - sociocultural (family+roles)
Influence of family dynamics on buying
29
Factors influencing customer choice - sociocultural (social class)
How people are classified in society
30
Factors influencing customer choice - sociocultural (reference + peer group)
Groups with whom a person identifies with influencing buying behaviours
31
Global Marketing - global pricing
The coordination of pricing policies across different markets
32
Global pricing strategies - standard worldwide pricing
Charging customers the same price for the product anywhere in the world
33
Global pricing strategies - customised pricing
customers in different countries charged different prices for the same product
34
Global pricing strategies - customised pricing
prices set accordingly to local market conditions
35
Global marketing - market-customised pricing
How a business differentiates its products
36
Market segmentation
1. Demographic: age, gender, education
2. Geographic: region, urban, rural
3. Psychographic: lifestyle, personality, motives
4. Behavioural: benefits, loyalty, usage rate
37
Product/service positioning
How products appear different than competitors
38
Product/service differentiation
Products that are the same/similar appear different
39
Ways of controlling - sales analysis
comparing actual sales vs forecasted sales
40
Ways of controlling - market share analysis
Comparing sales revenue and market share to competitors
41
Ways of controlling - marketing profitability analysis
Business breaks down marketing costs into specific marketing activities
42
Place distribution
Most effective way to get the product to the final customer
43
Place distribution - distribution channels
- Routes taken to get product from business to consumer
Product --> Wholesaler --> Retailer --> consumer
44
Place distribution - channel choice
- Number of outlets a business chooses to use
Exclusive, moderate, intensive
45
Place distribution - physical distribution issues
* Activities concerned with the efficient movement of products from producer -> consumer
* Transport, warehousing, inventory
46
Promotional mix
Methods used by a business to inform, persuade and remind a target market about its products
47
Promotional mix - advertising
Paid, non-personal message communicated through a mass medium
48
Promotional mix - personal selling
Activities of sales consultant directed to a customer to make a sale
49
Promotional mix - relationship marketing
Create customer loyalty and competitive advantage
50
Promotional mix - Sales promotion
Aims to get customers to try new products, entice new customers and increase sales
51
Promotional mix - public relations
Activities aimed at creating favourable relations between business and consumers
52
Promotional mix - publicity
Free news story about a business's products
53
What do consumer laws protect against?
Deceptive and misleading advertising, price discrimination, implied conditions, warranty
54
What do consumer laws protect against? - deceptive and misleading advertising
- False impressions regarding price, value or quality
1. Bait and Switch advertising: advertising low and then pushing up
2. Dishonest advertisement: misleading descriptions of product quality
55
What do consumer laws protect against? - Price discrimination
Different prices in different markets
56
What do consumer laws protect against? - implied conditions
Unspoken + unwritten terms of a contract
1. Minor fault: business chooses remedy
2. Major fault: consumer chooses remedy
57
What do consumer laws protect against? - warranty
promise made by manufacturer to correct defects
58
Pricing strategies
- Strategies used to achieve specific business objectives
59
Pricing strategies - skimming
Business sets highest price during introduction phase of product life cycle
60
Pricing strategies - penetration
Business charges lowest price possible to attract new customers
61
Pricing strategies - Loss leaders
Business sells at/or below cost and is a short term measure
62
Pricing strategies - price points
Appeal to a range of customers with different budgets
63
Identifying target markets - primary
Most resources directed here
64
Identifying target markets - secondary
Smaller and less important market segment
65
Identifying target markets - mass marketing
1 type of product is produced and sold to all consumers
66
Identifying target markets - market segmentation
total market subdivided into groups that share 1+ characteristics
67
Identifying target markets - niche marketing
small specialised market
68
Situational analysis - SWOT
Identification and analysis of internal strengths/weaknesses and external threats/opportunities
69
Situational analysis - product lifecycle (introduction)
Price is lower than competitors to enter market, distribution is limited
70
Situational analysis - product lifecycle (growth)
Prices increase, distribution channels increase, wider promotional activities
71
Situational analysis - product lifecycle (maturity)
promotion may shift, distributors reduced
72
Situational analysis - product lifecycle (decline)
Product may change, distribution channels decreased, price decreased
73
Situational analysis - product lifecycle (extension strategies)
modify products, decrease price, adding a feature
74
Production approach
- Focus is on production of goods and services
- Demand based on mass production
75
Selling approach
- Emphasis on selling
- increase marketplace competition
- neglect customer needs
76
Marketing approach
- Increased customer spending
- focus on customer
- CSR, customer orientation, relationship marketing
77
Market definition
Group of people in which a business intends to sell its products to
78
Factors influencing consumer choice - government
Policies that directly/indirectly affect business activity and consumer's spending habits
79
global marketing - global branding
Worldwide use of a name, term, symbol or logo to identify a seller
80
Global marketing - standardisation
Assumes the way the product is used and the needs it satisfies is the same globally
81
Global marketing - customisation
Assumes the way the product is used and the needs it satisfies are different between countries
82
Products - goods and/or services (branding)
- Name, term, symbol, logo or any combination that identifies a specific product and distinguishes it from its competitors
83
3 types of branding - Manufacturers/national brands
Brand name owned by the manufacturer
84
3 types of branding - Private/house brands
brand name owned by the retailer/wholesaler
85
3 types of branding - Generic brands
products with no brand name and plain packaging
86
Developing marketing strategies
- Actions done to reach target market and business objectives
7 p's: price, place, promotion, process, product, people, physical evidence
87
Factors influencing customer choice - psychological
Influences within an individual that affects buying behaviour
88
Factors influencing customer choice - psychological (perception)
Value something has to someone and differs due to age, culture etc
89
Factors influencing customer choice - psychological (motives)
reasons which individuals act upon
90
Factors influencing customer choice - psychological (attitudes)
feeling towards something and shaped by belief and emotion
91
Factors influencing customer choice - psychological (personality and self image)
behaviours and characteristics that make up a person
92
Factors influencing customer choice - psychological (learning)
Changes in an individual's behaviour caused by information and experiences
93
Strategic role of marketing
- Satisfy needs and wants
- Delivering good quality products to consumers
- Profit maximisation
- Increase market share
94
Interdependence with other key business functions - operations
Products are of right standard and readily available
95
Interdependence with other key business functions - finance
Providing marketing with funds to undertake activities e.g. promotion
96
Interdependence with other key business functions - human resources
Staff confidence and qualifications
97
Consumer laws (ACL)
National law providing consumer rights from unlawful practices
98
Consumer laws (ACCC)
Protects consumers and regulates trade practices
- Enforced by ASIC, ACCC and Department of Fair Trading
99
types of markets - resource
Groups involved in primary market
100
types of markets - industrial
secondary/tertiary, semi-finished products
101
types of markets - intermediate
wholesaler/retailer, finished product
102
types of markets - consumer
goods and services bought by individuals for own/family use
103
types of markets - mass
mass production, distributes and promotes, doesn't target a specific market
104
types of markets - niche
narrow target market where consumers have different needs
