Marketing Flashcards
What is the role of marketing?
To connect the business with its market.
It determines what customers want and then undertakes activities to translate this market knowledge into sales and profits.
Define marketing
A system of activities to plan, price, promote and distribute want-satisfying goods and services to customers.
What does marketing give the business?
It provides direction and helps to manage the dynamic business environment by providing information on changes and how to respond to them.
How does marketing rely on the other functions?
For resources to plan and implement marketing activities.
How does marketing impact operations?
Impacts what types of products that are produced, the required quality levels, the timing and speed of operations.
How does marketing impact finance?
Impacts the amounts of money requires for various marketing projects.
How does marketing impacted human resources?
Impacts the number of staff required as well as their required skills and training levels.
How has marketing evolved over time?
It has moved through three distinct periods: product orientation, selling orientation and market orientation.
Characterise the production orientation.
Industrial revolution to 1920
Only applicable when demand is greater than supply
No significant role for marketing other than taking orders and shipping goods
Founded on the belief that a good product will sell itself
Characterise the selling orientation.
1920-1960
Increased efficiency led to more businesses producing similar goods i.e increased competition meant the focus moved to selling
Increased importance was placed on advertising and persuading customers that they wanted/needed to buy the business’s products.
Characterise the market orientation.
1960-present
Marketing is now seen as a process to be integrated throughout the business. There has been a move towards customer satisfaction and value.
i.e find out what the customer wants and proving this
Focus on customer orientation and relationship marketing.
Define markets.
Groups of actual and potential customers for the business’s products.
Why do businesses need to identify the type of market in which they operate in?
Different markets have different characteristics and expectations which the business must satisfy if they are to be successful.
What are the six types of markets?
Resource, industrial, intermediate, consumer, mass and niche markets.
Define the resource market.
Market for primary production e.g. mining, agriculture, forestry
Define the industrial market
Market where the entities who buy the business’s products use them as an input in their production process
Define the intermediate market
Market where the entities who buy the business’s products intend to resell them.
Define the consumer market.
Market where the buyer of the business’s products is he end user.
Define a mass market.
Large, undifferentiated market where all consumers are viewed as having the same need are offered a homogenous product.
Define a niche market.
Small specialised markets with products tailored to the specific needs of customers in those markets.
What are the six marketing processes?
Situational analysis, market research, establish objectives, identify target market, develop marketing strategies, and implement, monitor and control.
What is a situational analysis?
It identifies the business’s present position. Steps include the SWOT analysis and product life cycle
What are the four elements of SWOT?
Strengths, weaknesses (internal) and opportunities and threats (external)
What are the four stages of the product life cycle?
Introduction, growth, maturity and decline
What is market research?
The process of gathering information about the market in which the business operates
What are the three steps in the market research process?
Determine the informational needs, collect data (primary and secondary methods) and data analysis and interpretation
Why is establishing objectives important?
Quantifies the purpose of marketing activities, gives direction and acts as a benchmark for future comparison
What are SMART goals?
Specific, measurable, achievable, realistic and timed
Why does the target market need to be identified?
To create marketing strategies to reach out and persuade this market to buy their products
What are three different approaches to identifying the target market?
Undifferentiated, differentiated and concentrated
What are marketing strategies?
Tactics to reach and inform the target market about the business and their products and persuade them to buy from the business
What are the 7ps of the marketing mix?
Product, price, promotion, place (distribution), people, physical evidence and processes
What are the three steps if implemented, monitor and control?
Develop a financial forecast, compare actual to planned results, revision of marketing strategies (if needed)
What are the factors influencing consumer choice?
Psychological, economic, government and sociocultural
What is the legislation protecting consumers?
Australian Consumer Law
What are areas addressed by consumer laws?
Warranties, implied conditions, price discrimination, deceptive and misleading advertising
What are ethical issues?
Truth and accuracy, good taste, products that may damage health, engaging in fair competition and sugging
