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ES194 - EBM > Marketing > Flashcards

Marketing Flashcards

1
Q

Who are consumers?

A
  • User of the article
  • Opposite of producer
  • ‘Consumer goods’ are used directly, domestically and NOT in manufacturing
  • Create ‘consumer markets’ for goods and services
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2
Q

Who are customers?

A
  • Purchaser of the article
  • ‘Industrial goods’ are used by commerce, industry and manufacturing. Industrial goods are described as being sold to ‘customers’, not ‘consumers’
  • Industrial customers create ‘industrial markets’ for goods and services
  • Customers who will never use the article can create ‘consumer markets’
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3
Q

What are the 5 P’s of the Marketing Mix?

A

Product, Price, Packaging, Promotion, Place

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4
Q

Marketing Mix - Product

A
  • May be a physical entity or a service
  • Should provide some benefit to the customer
  • Judged on criteria such as: quality, durability, brand
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5
Q

Marketing Mix - Price

A
  • Price is usually set by the market (market clearing price).
  • Ability or willingness of consumer to pay
  • Strategic Costing
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6
Q

What is cost plus pricing?

A
  • Design product then set price

- Product cost + profit margin = selling price

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7
Q

What is target pricing and costing?

A
  • Target market price minus profit margin = target cost

- Product designed accordingly

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8
Q

Marketing Mix - Packaging

A

Often considered a part of Promotion. Performs two principal functions:

  • Catches the customer’s attention or conveys an impression of the product.
  • Ensures that the product is delivered in good condition
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9
Q

Marketing Mix - Promotion

A
  • Any type of ‘persuasive communication’
  • Aimed at increasing purchases
  • Broader target than the current customer base
  • May be: short term (e.g. linked to sales) or longer term (e.g. public relations; press conferences, press releases, publicity events)
  • Internal Promotion
  • Advertising
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10
Q

Marketing Mix - Place

A

How the product reaches the customer. There are various ‘Distribution Channels’:

  • “Selling” outlets
  • Home Sales (e.g. Tupperware) to “Direct from Factory”
  • Web-based
  • Also important is the ‘customer experience’ (merchandise assortment, store location, store layout)
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11
Q

Order Qualifying Criteria

A
  • Features which get the product into market place, and

- ensure it stays there and remains successful

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12
Q

Order Winning Criteria

A
  • Features which collectively provide an important edge over the competition.
  • Similar to Unique Selling Points (USP) in marketing
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13
Q

What constitutes a Unique Selling Point (USP) in a Product?

A

When a product offers the customer benefits that the competitor’s products are unable to match

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14
Q

Narrowcast advertising

A

Targeting specific people, also known as niche marketing

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15
Q

Broadcast advertising

A

Targeting a wide range of people, not specific

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16
Q

What are the 5 P’s of the Marketing Mix used to identify?

A

All the customer’s needs

17
Q

What are the advantages of being a market pioneer/first mover/first to market?

A
  • Creating a Temporary Monopoly giving ‘Super-Normal’ profits
  • The existence of Network Effects where the more users there are, the more people want the product.
  • Higher brand loyalty, reducing promotion costs
  • Higher ‘Switching Costs’ for customers, also reduces promotion costs
  • Broader product ranges that pre-empt competition
  • Reduced costs through the Experience Curve and Economies of Scale
18
Q

What is the difference between risk and uncertainty?

A

Risk is quantifiable, uncertainty is not. This means risks can be managed, uncertainties can’t be

19
Q

What is the benefit of being a market lagger/follower?

A

They can learn quickly from mistakes made by market pioneers, as a result of market uncertainties, technological uncertainties or legal uncertanities

20
Q

What market uncertainties are reduced by being a market follower?

A
  • Able to witness what the customers like/dislike about pioneer’s product
  • Customers more accepting of new design/technology
21
Q

What technological uncertainties are reduced by being a market follower?

A
  • Able to reverse engineer from pioneer’s product, reducing R&D costs
  • Able to improve design by learning from pioneer’s mistakes
  • Able to exploit pioneer’s bad reputation for any design/safety problems
22
Q

What legal uncertainties are reduced by being a market follower?

A
  • Authorities may attack the pioneer only
  • Legislation more established, based on experience with pioneer
  • Followers may be encouraged to avoid a monopoly
23
Q

What is next bench syndrome?

A

Designing for other engineers, not for the real customer

24
Q

What is a market leader?

A
  • The dominant firm in the market, with the largest market share
  • Every business aspires to become a market leader, this can be achieved by being a pioneer or a follower
25
Q

What is simultaneous/concurrent engineering?

A

An approach to product design in which companies attempt to reduce the elapsed time to market by integrating design engineering, manufacturing engineering and other functions in the company

26
Q

What are the benefits of simultaneous/concurrent engineering?

A
  • Improve the product design to avoid any need for changes (materials, workforce, equipment) and eliminate inevitable dangers
  • Reduce the time to produce for market consumption
  • Make available and tap ‘downstream’ expertise to resolve problems
  • Bring the market closer to the production process
  • Reduce product life cycle costs
27
Q

What are some internal design trade-offs between product characteristics?

A
  • Cost: includes all investment costs, production costs, marketing and selling costs, support costs
  • Quality: performance to specification
  • Functionality (multidimensional specification)
28
Q

What are some external design trade-offs between product characteristics?

A
  • Selling price
  • Perceived quality
  • Perceived functionality
29
Q

Why is simultaneous engineering vitally important?

A

By the time a product enters into production the design choices have determined up to 95% of the final product cost. Once in production savings of only around 5% of the product cost can be found by improving production methods. Major product cost savings normally require changes to the product design

ES194 - EBM (4 decks)

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