Marketing Flashcards
What is the marketing concept?
The identification of target markets and the satisfaction of those markets
What is a market orientated business?
One in which devotes resources to understanding the needs and buying behaviour of its customers
Define marketing
Activities that facilitate and expedite exchange relationships in a dynamic environment
Define a marketing environment
External changing forces (PESTLE)
What are the 3 stages in the marketing process?
Analysing, Strategy and Programme (ASP)
What is the marketing mix commonly known as?
The 5 Ps. Price, product, promotion, people, place/distribution
What is analysed in the ‘Analysis’ stage of the marketing process?
Customers, trends, competition
What is undertaken in the ‘strategy’ stage of the marketing process?
Opportunity identification, brand position, marketing objectives
What controls must be put in place in the marketing process?
Budgetary, timescales, skills, benchmarking
What 3 types of exchange sector are there?
C2C, B2C and B2B
What does the Ansoff Matrix show?
The four different types of growth strategy. Market Penetration, Market Development, Product Development and diversification.
What internal organisational factors can affect the marketing strategy
It’s strengths (capabilities and assets) and weaknesses. These are controllable
What uncontrollable external factors can affect a business
Opportunities, threats, PESTLE, market drivers
What is a strategic marketing plan?
Outline of methods and resources required to achieve an organisational goal within a specific target market.
What is an SBU?
Strategic business unit - a devision, product line or other profit centre
What is a marketing plan?
Written document specifying, implementing and controlling an organisation’s marketing activities and marketing mixes.
Define marketing opportunities
Circumstances and timing that allow an organisation to take action towards reaching a target market
Define strategic window
A period of optimum fit between key requirement of a market and the capabilities of an organisation
What is environmental scanning?
Process of collecting info on the market environment to help managers identify opportunities and threats and to assist in planning. It can be used in forecasting, the reformulate strategies and to identify new developments.
What’s the different between a capability and an asset?
Capabilities are competencies to do something well. Assets are capabilities tat manager and the marketplace view as beneficially strong.
What are the different types of growth?
Intense Growth
Diversified Growth
Integrated Growth
What types of intense growth are there?
Market penetration, market development and product development
What types of diversified growth/diversification are there?
Horizontal (new products not related technologically)
Concentric (new products that are related)
Conglometric (new product not related whatsoever)
What types of integrated growth are there?
Forwards - buying customers
Backwards - buying suppliers
Horizontal - buying competition
Define brand positioning.
Creation of desirable, distinctive and plausible image for a brand in the minds of target customers
What is a target market strategy?
Its the choice of which segments an organisation decides to develop marketing programmes for
Define competitive advantage.
Achievement of superior performance vis-a-vis through differentiation to create distinctive PRODUCT APPEAL or BRAND IDENTITY; perceived CUSTOMER VALUE or by focussing on a narrow scope to become SPECIALIST
What are the 5 competitive forces identified by Porter?
New entrants to the market, Relative power of customers, Variable pressure from suppliers, Substitute products, and ongoing rivalry between major players
What 5 competitive positions are there?
1) Market Leader
2) Market Challenger
3) Fast Mover
4) Market Follower
5) Market Nicher
Define differential advantage.
Attribute of a brand, product or service or marketing mix that is desired by target market.
What are the two categories external forces can be grouped into depending on their influence?
Macro and Micro
What is a macro external force?
PESTLE
What are micro forces?
Organisation, public, competitors, buyers and suppliers
How would a change in the environment create opportunities?
New technology, new markets, new distribution channels, new regulation
What types of buying behaviour are there?
Routine response, limited decision making, extensive decision making, impulse
When is a routine response in the buying process likely?
Low cost, low risk purchases which involve little search. Almost purchased automatically.
What is limited decision making in the buying process likely?
For goods or services purchased occasionally and when some information is needed, for example, reviews.
When is extensive decision making in the buying process likely?
For infrequent, high-risk, high-cost products
Why do impulse purchases happen?
It is the failure of self control. Sometimes caused by sophisticated POS displays.
What are the stages in the consumer buying process?
1) Problem Recognition - difference between a desired state and actual condition
2) Information Search - will a product satisfy my needs (Internal [Memory]/External [WOM, reviews])
3) Evaluation of alternatives
4) Purchase
5) Post purchase analysis
Do all the stages of the buying process need to be completed?
No. Stages can be missed and sometimes purchases aren’t made at all.
What 3 factors can influence the consumer buying process?
Personal, Psychological and Social
What personal factors can influence the buying process?
Demographic, situational and level of involvement
What psychological factors can influence the consumer buying process?
Perception, motives, learning, attitudes and personality
What social factors can influence the consumer buying process?
Roles & family, reference groups, social classes and cultures & sub-cultures.
What types of business market are there?
Producer, reseller, government/public sector, institutional
Give 3 differences of characteristics between business transactions when compared to consumer transactions
- Larger quantity
- More frequent
- Buyers are more informed
What concerns to business buyers generally have?
Range of options, convenience, quality, delivery and support
4 methods of business buying
Description (Standardised), inspection (unique products), sampling (to ensure consistent quality) and negotiation (contracts)
What are the 3 types of business purchase?
New tasks (initial purchase of a new product for a new problem); modified re-purchase (new task thats changed when reordered), straight re-but (routine repurchase of same product)
What 4 influences are there an the business buying process?
Environmental (PESTLE), Organisational (policies, objectives, resources), Interpersonal (relationships with suppliers) and Individual (education, income, age)
Define a market.
An aggregate of people who have a need for certain products and the ability, willingness and authority to purchase such products
What 4 requirements does a market need?
Need/want for a product, the ability to purchase it, the willingness to purchase it and the authority to do so
What three types of segmentation are there?
Undifferentiated (assumes all customers have similar needs and wants), Heterogenous (all customers have different requirements), market segmentation (process of grouping heterogenous groups into homeogenous segments)
Benefits of market segmentation?
Better customer analysis, better competitor analysis, more effective resource allocation, strategic marketing planning
Which variables can be used in consumer segmentation?
Demographic, geographic (geodemographic), Psychographic and behaviouristic
Which variables can be used in business segmentation?
Company demographic, operating, purchasing approach, situational factors, personal characteristics
What features must a segment be?
Measurable, substantial, accessible, stable and useful
What 3 types of segmentation strategy are there?
Undifferentiated (1 marketing mix for 1 market), concentrated (1 marketing mix for 1 segment in a market), differentiated (2 or more marketing mixes for different segments in a market)
What is positioning?
Process of creating an image or product in the minds of customers
