Marketing #2 Flashcards
market segmentation
when the total market is subdivided into groups of people who share one or more common characteristics
segmented by demographic, geographic, psychographic, behavioural
product/service differentiation
the process of developing and promoting differences between the business’s products or services and those of its competitors
value for money - desire to obtain the best quality, features and performance for a given price of a product
differentiated by customer service, environmental concerns, convenience, social and ethical issues, product/service positioning
product/service positioning - the technique in which marketers try to create an image or identity for a product compared with the image of competing products
- achieved through name, price, packaging, styling, promotion and channels of distribution
products - goods and/or services
total product concept - the tangible and intangible benefits a product possesses
branding - combination of differing qualities that distinguish it from its competition
- helps specify consumer selection
- gain repeat sales
generic brand - products with no brand name at all
private or house brand - one that is owned by a retailer or wholesaler
packaging - the development of a container and the graphic design for a product
- preserves the product
- protects the product from damaging or tampering
labelling - the presentation of information on a product or its package
price and pricing methods
pricing methods -
cost-based pricing - derived from the cost of producing or purchasing a product and then adding a mark-up
market-based pricing - setting prices according to the interaction between the levels of supply and demand - whatever the market is prepared to pay
competition-based pricing - where the price covers costs and is comparable to the competitor’s price
- price leader: major business in an industry whose pricing decisions heavily influence the pricing decisions of its competitors
price skimming - when a business charges the highest possible price for the product during the introduction stage of its life cycle
price penetration - when a business charges the lost price for a possible product so as to achieve a large market share
loss leader - product sold at or below cost price
- used to sell overstock
- increase the traffic flow
price points - selling products only at certain predetermined prices
price and quality interaction
prestige/previous pricing - where a high price is charged to give the product an aura of quality and status
promotion
methods used by a business to inform, persuade and remind a target market about its products
advertising - paid non-personal message communicated through mass medium
personal selling - the activities of a sales representative directed to a customer in an attempt to make a sale
- message can be modified to suit the individual customers circumstances
- individualised assistance can create a long-term relationship resulting in repeat sales
relationship marketing - the development of long-term and cost-effective relationships with individual customers
- loyalty program: a rewards-based program offered by a business to customers who frequently make purchases
sales promotion - the use of activities or materials as direct inducements to customers
publicity and public relations - any free news story about a business’s products
- those activities aimed at creating and maintaining favourable relations between a business and its customers
opinion leader - a person who influences others
word of mouth
place/distribution
distribution channels - routs taken to get the product from the factory to the customer
producer to customer - no intermediaries
producer to retailer to customer - intermediary who buys from producers and resells to consumers
producer to wholesaler to retailer to customer - most common
non-store retailing - activity conducted away from the traditional store
place/distribution - channel choice
intensive, selective and exclusive
intensive distribution - business wishes to saturate the market with its product
selective distribution - using only a moderate proportion of all possible outlets
exclusive distribution - only one retail outlet for a product in a large geographic area
physical distribution issues
- transport
- warehousing
- inventory
people
the quality of interaction between the customer and those within the business who will deliver the service
- perception of business is based on this strategy
processes
the flow of activities that a business will follow in its delivery of a service
physical evidence
the environment in which the service will be delivered. It also includes the location of where the service is being provided and the materials needed to carry out the service such as signage, brochures, business cards, business logo and website
e-marketing
the practice of using the internet to perform marketing activities
- podcasting
- SMS
- blogs
- web pages
global marketing
transnational corporation - any business that has production facilities in two or more countries and that operates on a worldwide scale
global branding - the worldwide use of a name, term, symbol or logo to identify the seller’s products
standardisation - a global marketing strategy that assumes the way the product is used and the needs it satisfies are the same the world over
customisation - assumes the way the product is used and the needs it satisfies are different between countries
global pricing - how businesses coordinate their pricing policy across different countries
