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HSC - Business Studies > Marketing > Flashcards

Marketing Flashcards

0
Q

What are the 3 approaches to marketing?

A
  • Production Approach (1820s - 1920s)
  • Selling Approach (1920s - 1960s)
  • Marketing Approach (1960s - Present)
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1
Q

What is the strategic role of marketing?

A

To achieve profit maximisation - Marketing is the only business function that GENERATES an income

This is done through both satisfying and letting customers know of the products/services available to them

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2
Q

What are the types of markets?

A
  • Resource
  • Industrial
  • Mass
  • Niche
  • Intermediate
  • Consumer

Acronym: RIMNIC

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3
Q

What are the factors influencing consumer choice?

A
  • Psychological
  • Economic
  • Government
  • Sociocultural

Acronym: PEGS

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4
Q

What goes under the ‘consumer laws’ syllabus dot point?

A
  • Warranties
  • Implied Conditions
  • Price Discrimination
  • Deceptive and Misleading Advertising

Acronym: WIPD

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5
Q

What are the ethical influences on marketing?

A
  • Truth
  • Accuracy and Good Taste in Advertising
  • Products that may damage health
  • Engaging in fair competition
  • Sugging

Acronym: TAPES

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6
Q

What are the 6 steps in the Marketing Process?

A
  • Situational Analysis
  • Market Research
  • Establishing Marketing Objectives
  • Identifying Target Markets
  • Developing Market Strategies
  • Implementation, Monitoring and Controlling

Acronym: SMEIDI

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7
Q

What are the stages in the product life cycle?

A
  • Introduction
  • Growth
  • Maturity
  • Decline
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8
Q

What does the SMART principle of goal setting stand for?

A
  • Specific
  • Measurable
  • Achievable
  • Realistic
  • Timed
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9
Q

Provide characteristics and features of the production approach

A
  • Focuses on producing a product with no concern for what customers want/need

Ford: ‘customers can have any colour they want as long as its black!’

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10
Q

Provide characteristics and features of the selling approach

A
  • Focuses on the skill of selling (this is achieved successfully through training staff on how to make a sale)
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11
Q

Provide the characteristics and features of the marketing approach

A
  • Customer-focused (meeting and satisfying customer needs and wants)
  • Market Research becomes vital as the customer becomes the centre of the business’ activities
  • Focuses on being socially (environmentally) responsible
  • Focus on relationship marketing
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12
Q

Provide characteristics and features of the resource market

A
  • Involves primary production
  • Includes mining, agriculture, forestry and fishing I.e. Farmers
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13
Q

Provide characteristics and features of the industrial market

A
  • Involves industries and businesses that buy products to use in the production of other products or in their daily operations.

I.e. Tip Top bakery buys flour to make bread that they sell

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14
Q

Provide characteristics and features of the mass market

A
  • Involves everybody!
  • Products are mass-produced, mass distributed and mass promoted

Note: Mass meaning ‘in bulk’, aimed at everyone!

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15
Q

Provide characteristics and features of the niche market

A
  • A tiny concentrated segment of the market

I.e. Lamborghini and Men’s Health Magazine (only for men who are into health/fitness)

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16
Q

Provide characteristics and features of the intermediate market

A
  • Involves wholesales and retailers who purchase finished products and resell them to make a profit.

I.e. Subway buying goods (tomato, bread, etc) to make salads and sandwiches (their products) and then sell them

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17
Q

Provide characteristics and features of the consumer market

A
  • Members of a household who plan to use or consume products they buy

I.e. You are part of the consumer market as you purchase products that you intend to use (e.g. clothes)

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18
Q

What is the updated legislation of the ‘Trade Practices Act 1974’?

A

Competition and Consumer Act 2010

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19
Q

How many laws did the ‘Australian Consumer Law’ replace?

A

17

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20
Q

Why must marketers be aware of any changes to laws?

A

These changes could affect their:

  • promotional/advertising activities
  • credit policies
  • packaging of products
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21
Q

What are the two major purposes of the ‘Competition and Consumer Act 2010’?

A
  1. Protect consumers against undesirable practices E.g. Deceptive and Misleading Advertising
  2. Regulate certain trade practices that restrict competition - Competition MUST be encouraged
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22
Q

What are the two types of deceptive and misleading advertising?

A
  • Bait and switch advertising
  • Dishonest advertising
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23
Q

What are the psychological factors that influence consumer choice?

A
  • Perception
  • Attitudes
  • Learning
  • Motive
  • Personality and self image

Acronym: PALMPS

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24
Q

What are the economic factors influencing consumer choice?

A

The stage the economy that economy is in:

  • Boom
  • Bust/Recession
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25
Q

What are the Government factors influencing consumer choice?

A

Government legislations that influence marketing:

  • Competition and Consumer Act 2010
  • Sale of Goods Act 1923
  • Fair Trading Act 1987
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26
Q

What are the sociocultural factors influencing consumer choice?

A
  • Social class
  • Culture and subculture
  • Family and roles
  • Reference (peer groups)
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27
Q

What are the 3 common marketing objectives that businesses establish?

A
  • Increase market share
  • Expand product range (product mix)
  • Maximise customer service
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28
Q

What are the three ways of identifying a target market?

A
  1. Mass market approach
  2. Market segmentation approach
  3. Niche market approach
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29
Q

What are the market segmentation variables? (aka - approaches to segmenting a market)

A
  • Psychographic segmentation
  • Demographic segmentation
  • Behavioural segmentation
  • Geographic segmentation
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30
Q

What are the 4Ps of marketing?

A
  • Product
  • Price
  • Promotion
  • Place (distribution)
31
Q

What are the extended Ps of the marketing mix?

A
  • People
  • Processes
  • Physical Evidence
32
Q

What is product/service differentiation?

A

Process of developing and promoting differences between business’s products or services and those of its’ competitors

33
Q

What are the four points of differentiation?

A
  • Environmental concerns
  • Convenience
  • Customer service
  • Social and ethical issues

Acronym: ECCS

34
Q

What goes under the ‘product’ syllabus dot point?

A
  • Branding
  • Packaging

Acronym: BP

35
Q

Define the term ‘product’

A

Goods/services offered in exchange for the purpose of satisfying a need or a want

36
Q

What are the strategies for branding?

A
  • Private (house brand)
  • Manufacturer’s brand (national brand)
  • Generic brands
37
Q

What are the strategies for packaging?

A
  • Packaging
  • Labelling
38
Q

How is marketing interdependent with finance?

A
  • Marketing depends on finance to fund for marketing activities e.g. promotions
  • Finance depends on marketing to generate funds. These funds are then distributed to other areas of the business
39
Q

How is marketing interdependent with operations?

A
  • Marketing has a significant influence on operations because it essentially sets the goals and tasks of the transformation process

  • Marketing determines the design of the product, how much differentiation is required, the pricing of the product.
  • Operations relies on marketing to tell them what products to produce (usually as a result of research)
40
Q

How is marketing interdependent with human resources?

A
  • Marketing relies on Human Resources to provide them with quality staff so that effective promotional activities can be devised to sell their products.

- Marketing affects Human Resources by influencing them to cut down jobs as employees are the biggest expense to the business.

41
Q

What is the meaning of perception as a psychological factor that influences consumer choice?

A

- The process through which people select, organise and interpret information to create meaning.

  • Marketers need to create a positive/favourable perception about their product in the minds consumers
42
Q

What is the meaning of motive as a psychological factor influencing consumer choice?

A
  • The reasons that make individuals do something (Why the customer buys the product)
  • Advertising needs to attempt to motivate the customer to buy the product
43
Q

What the meaning of attitude as a psychological factor influencing consumer choice?

A

- A person’s overall feeling about an object or activity

  • Negative attitudes to a business or product may mean that they need to change their marketing strategies
44
Q

Provide characteristics and features of personality and self image as a psychological factor influencing consumer choice

A
  • Products are purchased to suit a person’s personality
  • Sometimes the product helps the person with their own self image
    e. g. sports cars make people feel good about themselves as they contain high levels or prestige
45
Q

Provide characteristics and features of learning as a psychological factor influencing consumer choice

A
  • Customers need to ‘learn about the product before they buy it

e. g. Apple iPad ad that we saw in class!
- Good marketing strategies will encourage learning and establish brand loyalty

46
Q

What effect does the boom economic period have on marketing and consumer choice?

A
  • More promotional efforts
  • Customers willing to spend
  • Increase production
  • Bright future
  • Rising incomes
  • Low unemployment
47
Q

What effect does the bust/recession economic period have on marketing and consumer choice?

A
  • Higher unemployment
  • Falling incomes
  • Lack of business and consumer confidence
  • Less spending
  • Less production
  • Aim to maintain market share through marketing = SURVIVAL!
48
Q

What is the meaning of social class as a sociocultural factor the influences consumer choice?

A

- This refers to a person’s relative rank in society based on education, occupation and income.

  • These will influence type, quantity and quality of products purchased.
    e. g. Buying a Mercedes vs a Toyota
49
Q

What is the meaning of culture and subculture as a sociocultural factor influencing consumer choice?

A

- Values, beliefs, behaviours and traditions that determine what we wear, eat, etc.

e.g. Push for nutritious foods (McDonalds have jumped on this!)

50
Q

What is the meaning of family and roles as a sociocultural factor influencing consumer choice?

A

E.g. Women tend to make the household buying decisions.

  • Marketers need to be aware of this and make sure they target this group!
51
Q

What is the meaning of reference (peer) groups as a socialcultural factor the influences consumer choice?

A

**- A customer’s buying behaviour that may change to match the rest of the groups’ beliefs and attitudes. **

  • A bad experience can lead to a customer telling their mates about it which will then influence their purchases
52
Q

Provide characteristics and features of the Government as a factor influencing consumer choice

A
  • Has an impact on the marketing plans of the businsess through set down legislations
  • These legislations govern the business’ marketing behaviour
53
Q

What is a warranty?

A

A promise by the business to repair or replace faulty products

54
Q

Provide characteristics and features of warranties as part of consumer laws and specific marketing practices

A
  • Terms and conditions of the warranty must be clearly stated or it would be void
  • Accurate signs regarding refunds and exchanges MUST be displayed

Refunds must be offered if:

    • the product is faulty​
    • does not match the description or a sample
    • fails to do the job it was supposed to do
55
Q

What points go under implied conditions?

A
  • Implied conditions
  • Consumer guarantees
  • Acceptable quality
56
Q

What is the meaning of implied conditions?

A
  • Unwritten & unspoken terms of a contract
  • Something that consumers would expect to occur
  • It a product is ‘guaranteed’ to do something, it MUST carry out that function
57
Q

What are consumer guarantees in terms of implied conditions?

A

Comprehensive set of rights & remedies for defective goods and services

58
Q

What is the meaning of acceptable quality in terms of implied conditions?

A

The product is fit for the purpose for which it is being sold, acceptable in appearance and finish, free from defects, safe and durable.

59
Q

What is price discrimination?

A

This is the setting of different prices for a product in seperate markets

  • Difference in price can be a result of:
  • Geographic location of markets e.g. city and country prices
  • Product differentiation e.g. electricity prices for businesses are different than those for consumers
60
Q

Under what extent would the Australian Competition and Consumer Commission prohibit price discrimination?

A

If it reduces competition

  • It also clearly states that businesses can not give favoured treatment to customers whilst denying it to others e.g. giving discounts
61
Q

What are examples of deceptive and misleading advertising that are found under the Competition and Consumer Act 2010?

A
  • Fine Print
  • Before and after advertisements
  • Test and surveys
  • Country of origin
  • Packaging
  • Special offer
62
Q

What does bait and switch advertising involve?

A

Advertising a few products at a reduced price to attract customerrs

  • When the advertised products quickly run out, the business tries to switch the customer’s attention to a higher priced item e.g. Peter Wynns Score
63
Q

Provide characteristics and features of dishonest advertising

A
  • Words used in ads can not be deceptive or claim a product has a specific quality when it doesn’t
  • Examples of the following MUST be genuine:
  • Price reductions
  • Free gifts
  • Special offers
64
Q

What is the essential requirement of marketing practices in terms of ethics?

A

Marketing practices need to be socially responsible, morally right, honourable and fair.

65
Q

Provide characteristics and features of truth as an ethical influence to marketing

A
  • Advertisements must not be false of misleading (despite set down legislations based on this, markets can always find unethical ways of surpassing them)
  • Marketers need to be aware of the interpretations on advertisements e.g. the use of the word ‘special’
  • Approriate sized pictures that actually represent the true size of the product should be displayed
66
Q

Provide characteristics and features of accuracy and good tase in advertising as an ethical influence to marketing

A
  • Advertisements need to be accurate and try not to offend customers (good taste in advertising)

i.e. Swearing, offensive language, sex, explicit content

Unethical marketing practices tend to surround:

  • Untruths due to concealed facts
  • Exaggerated claims
  • Vague statements
  • Invasion of privacy
67
Q

What does the Advertising Standards Bureau (ASB) ensure?

A

Ensures that acceptable advertising standards are followed through a system of self-regulation

68
Q

Provide characteristics and features of products that may damage health as an ethical influence to marketing

A
  • Marketers need to be careful to not promote products that can damage health, especially regarding young children
  • Digital advertising is now proving to be a contentious area for marketers
69
Q

Provide characteristics and features of engaging in fair competition as an ethical influence to marketing

A
  • It is unethical and illegal to make false promises or use high-pressure selling tactics to get consumers to buy the business’ products
  • To engage in fair competition, a business should develop an ethical marketing policy
70
Q

What is sugging?

A

- This is selling under the guise of a survey

  • It is not illegal but it does invade privacy and is quite deceptive.
71
Q

What is a method that can be utilised to prevent the confusion between the types of market segmentation?

A

Miss Dalla’s saying - Break up the market according to:

  • How people think **(P) **
  • Behave **(B) **
  • Live **(G) **
  • General characteristics (A)
72
Q

What is behavioural segmentation?

A
  • Dividing the total market according to the customers’ relationship to the product

Includes:

  • loyalty to brand
  • usage rate
  • sensitivity
  • price
  • benefits sought
  • purchase occasion
  • E.g. Lean Cuisine developed frozen meals to appeal to those who need low fat convernience foods
73
Q

What is geographic segmentation?

A
  • Dividing the total market according to geographical locations e.g.
  • Surburban
  • Rural
  • City
  • Climate
  • Landscape
  • E.g. Perisha needs snow gear (1) whereas consumers in Port Macquarie will need light weight clothing due to heat (2)
74
Q

What is demographic segmentation?

A
  • Dividing the total market according to particular features of a population including:
  • Family size
  • Age
  • Sex
  • Income
  • Cultural background
  • E.g. Coca cola targets 15 - 35 males for their ‘mother’ drink (1). Fanta is targeted at 13 - 16 year olds (2). Powerade is targeted at atheltic 15 - 24 year old males (3).
75
Q

What is Psychographic Segmentation?

A
  • Dividing the total market according to

HSC - Business Studies (8 decks)

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