Marketing Flashcards
revise and practise
What is the marketing mix
A process of developing a product that meets consumer needs and implementing strategies to encourage an increase in purchases.
The 8 P’s
Product, price, promotion, place, people, process, physical presence and performance
Product
A product should meet consumer needs.
Tangible aspects (product)
size, shape, packaging, colour, features and design
Intangible aspects (product)
Services, warranties, brand image and reputation.
Product positioning
The method used to create a unique impression of a product to consumers.
Brand
The name term, symbol or design that identifies a brand
Trademark
A symbol or name forming part of a business’s intellectual property.
Price
Pricing determines product cost. The price will change to ensure there is a sales income and also to meet profit objectives
What happens if a price is too high
Consumers most likely wont see enough value in the product to justify the price.
What happens if the price is too low
Consumers may think the product is low quality.
Skimming (pricing)
High price at launch, then gradually lowered
Premium (pricing)
High price to maintain a perception of exclusivity.
Penetration (pricing)
Low price initially to attract customers before switching strategies.
Psychological (pricing)
Price is set based on customer perception of quality and value.
Pricing methods
How the cost of a product is determined.
Pricing strategies
How the price is positioned in the market.
Promotion
Promotion communicates product information to the target market to influence consumer behavior.
What are some common promotional strategies?
Sales promotion, advertising, direct selling, publicity, product placement, push and pull promotion.
Push promotion
Spreads product information through wholesalers and retailers.
Pull promotion
Uses extensive advertising before launch to create customer demand.
Place
Refers to how a product is distributed to consumers.
Distribution channels
The path in which goods take from the manufacturer to the consumer.
Direct distribution
Goes from the manufacturer straight to the consumer.
Indirect distribution
Goes from the manufacturer then the wholesales, retailer and finally to the consumer.
People
Includes employees and staff who interact consumers and provide services.
What is personal selling?
Is a two way communication between a buyer and seller and is aimed at influencing a purchase.
Process
It ensures businesses follow proper procedures for customer service and inquiries.
Physical presence
Includes All elements of a business’s identity visible to the customer, including shopfronts, websites, branding, and packaging.
Performance
Measures how well a business is achieving its marketing goals.
Factors of performance
Customer satisfaction, sales revenue and profit margins, market share growth and brand reputation.
What is marketing
The process of promoting a product to potential customers to try and gain the largest possible market share.
Roles of marketing
Satisfies consume needs and wants at a profitable price and encourages consumers to pay for the same product. It also will build up a brand’s awareness.
Why is marketing important?
Connects businesses to customers and drives business activity. Develops products that align with customer preferences.
What is a customer
Someone who purchases a product or service with an intention to use or gift it.
What is a consumer
Anyone who uses a product or service with a motivation to not resell it.
Market research
A key feature of effective marketing that identifies what customers desire in a product that helps businesses to develop the most appealing product the can in order to maximise sales.
What is a market segment?
A distinct group of customers with similar characteristics. It helps to target particular customers.
Ways to segment the market
Age, Religion, income, gender, occupation, family, social status and cultural backgrounds.
Target marketing
Identifying and catering to a specific customer segment.
Mass marketing
A marketing approach where one product will fit all customers, reaching a larger audience.
Demographic segmentation
Income, sex, age, education, occupation, nationality. etc.
Geographic segmentation
Country, state, rural/suburban/urban, climate, population
Lifestyle segmentation
Opinions, personality, attitude, interests, beliefs, leisure activities.
Behavioral segmentation
Product usage, loyalty, status and benefits wanted.
Primary data
Is collected directly from the consumer.
Secondary data
Is collected from another source.
Qualitative research
Is based on opinions and perceptions of research participants.
Quantitative research
Based on numerical data and figures for market research purposes.
