Marketing Flashcards
Factors influencing consumer choice… 4
Psychological, Sociocultural, Economic, Governmental.
Eg of physcological influence
Person buys a bike because they like the outdoors.
Eg of Sociocultural influence
You group goes to maccas so you buy something to fit in
Eg of economic influence
Uncertainty in 2008 reduced luxury spending.
Eg of govt influence
Put subsidy on watertanks.
Time frame of production approach…
1820-1920
Time of selling approach…
1920-1960
Time of Marketing approach…
1960 - now
Resource market definition
Consists of groups engaged in primary production. Mining, fishing, ag
Industrial Market
Industries and businesses that purchase produces to use in the production of other products or in their daily production. Eg Sony buys plastic. Bakers del buys flour.
Intermediate market d
consists of wholesales and retailers who purchase finished products to make a profit
Consumer markets
consists of individual, people who buy products they plan to consume.
2 types of consumer markets…
- Mass
2. Niche
In a mass market, the seller…
mass produces, promotes and distrributes one product
A niche market
narroly segmented target market segment
Factors influencing consumer choice 3
- Psycological
- Socio cultural
- Government
- Economic
Psychological influences…
influences within an individual that affect his or her buying behaviour.
Aspects of psy influences 6
- Perception - how we interpret info
- Motive - reason behind a purchase
- Attitude - overall feeling about a product
- Personality - collective of behaviours that make up a person
- Self image - how someone view themself.
- Learning - changes in behaviour caused from experiences
Sociocultural influences d
are forces exerted by other people and groups that affect buying behaviour
Examples of sociocultural groups…4
Social class, culture, family, peer groups (colleges, friends)
Economic influence d
how the state of the economic cycle influences buying habits.
Govt influence d
policies that directly or infirectly influence business and consumer activity
Law that influences consumer and business examples
CACA 2010, Fair trading act 1987
Unconscionable conduct -
Unreasonal conduct that is often illegal.
Law introduced in 2011
ACL. Protects customers nation wide.
The CACA 2010 does 2 things
- Protects consumer against undesirable business acts
2. Prohibits restrictive/unfair business practices
2 Main types of restrictive trade practices
Deceptive and misleading advertising.
Price Discrimination
A warranty…d
Promise to repair or replace faulty products
Implied conditions…d
Unspoken or unwritten terms of a contract. Imply terms - most important - product is of acceptable quality.
Main ethical critisicms of marketing…4
1 Creation of needs - materialism
2 Stereotypical images of male and female
3 Use of sex to sell products
4 Product placement.
Why is creation of needs unethical
People buy what they dont need
why is stereotypical images of male and female unethical
Perpetuate gender roles.
Why is use of sex to sell products unethical
Creates unrealistic images - use sex appeal to imply that customers will increase attractiviness.
Ethical issue surrounding product placement
Blurrs the line between entertainment and advertising.
Unethical examples of marketing.. (under truth and accuracy of marketing dp) 4
- Untruths due to concealed facts - eg coke doesnt rot teeth (IF YOU BRUSH ST8 AFTER)
- Exaggerated claims - puffery
- vague statements - ambiguous language - “helps fight against”
- Invasion of privacy
Eg of unethical marketing that may damage health
Junk food on kids games sites.
To ensure ethical marketing, firms should establish…
A corporate ethical marketing policy.
Sugging d
Selling under guise of research/survey. Violates privacy and deception
Regulation of marketing in Aus?
Self regulated. Thru the Advertising standards bureau.
Marketing process 7
- Situational analysis
- Market research
- Establish market objectives
- Identify target markets
- Develop marketing strategies
- Implementation, monitoring and controlling
2 ways of situational analysis…
SWOT. Product Life Cycle
What does a SWOT do?
Assess business situation compared with its competitors.
Steps for market research…3
- Determine information needs.
- Collect data
- Data analysis and interpretation
Primary data…d
information from original sources. eg interviews, surveys
Secondary data…d
Info collected by other organisations. eg ABS and industry reports
Marketing objectives…
Realistic and measurable goals to be achieved through the marketing plan.
Marketing objectives could include…
Increase market share, Expand product range. Maximise customer service.
Target market d
a group of present and potential customers a business intends to sell to
Primary target market vs Secondary Market
Mainly aimed at vs smaller and less important
Why identify a target market?
- Use marketing resources more efficiently - use the right forms of promotions at the right people.
- Refine marketing strategies to influence choice more effectively.
Marketing strategies d
actions that are taken to achieve objectives thru marketing mix
Monitoring…d
Checking the actual process of a marketing plan.
Emphasis on each of the 4 Ps is most influenced by…
Positioning and Product lifecycle
Implementation…d
Putting marketing strats into operation
Controlling process marketing… two steps
- Establish KPI
2. Compare or evaluate the result.
Two aspects of a financial forecast…
Marketing cost estimate and revenue estimate
3 (KPIs) ways to compare actual and planned results and measure success…
- Sales analysis (cost and revenue).
- Market Share
- Marketing profitability analysis (breaks down costs of each marketing action to determine profitability of each).
Ways to revise a market strategy…4
Changes in the marketing mix.
Dev new products.
Product Deletion.
Reallocate marketing resources.
4 ways to segment the market…
Demographic
Geographic
Psychographic
Behavioural
Psychogaphic segmentation…d
Dividing the market according to personality, characteristics, motives, lifestyle, opinions, socioeconomic group etc.
Demographic segmentation…d
Dividing by features of a population eg. age, gender education, income,
Behavioural segmentation…d
Dividing market according to customers relationship with the product. Ie knowledge of the product, attitude towards or benefits sought from the product.
Methods of differentiation…5
- Value for money
- Customer service
- Environmental concerns
- Convienience - eg microwaveable foods
- Social and ethical issues
Businesses that differentiate thru social and ethical issues are taking advantage of…
Ethical consumerism
Product positioning…d
technique in which marketers create an image for a product compared to its competitors.
The ultimate goals of market segmentation…2
Boost profit + market share by better understanding and responding to desires of different target markets.
Total product concept…d
refers to the tangible and intangible benefits a product possesses
Benefits of branding for customers 3
- Identify and reuse products they like
- Evaluate quality
- Gain psychological reward from purchasing prestigious brand
Benefits of branding for Business 3
- Get repeat sales bc customers recognise product. Encourages loyalty and can raise price
- Promo activities indirectly benefit all branded products
- Introduce new products when customer already accustomed to brand
Brand symbol or logo..d
Is a graphic representation that identifies business or product
3 Branding strategies…
- Manufacturers brand or national brand
- Private or house brand
- Generic brands
Examples of manufacturers/national brand…
Billabong, Sunbeam, Masterfoods
Examples of private or house brands…
Myers brands… Reserve, Urbane. Kmart = Home & Co.
who are private or house brands owned by…
wholesaler or retailer.
Pros for national/manu brand 2
Widely recognised and avaliable.
Consistent quality.
Generic products…d
Products with no brand at all
Packaging..d
development of a container and the graphic design for a product
Packaging purposes..5
- Preserves
- Protects
- Attracts customers
- Displays
- Makes storage easier
Packaging is important because it is a form of…
Gives first time impression and Communication
Examples of packaging as communication 4
- Soft drink pack red = cola
- Dishwashing liquid in yellow container = lemon scented
- Black or gold packaging = premium/luxury
- green packaging = enviro friendly
Labelling….d
Presentation of information on a product/package
Uses of labelling…3
- Show information + allow comparison
- Promote other products
- Show how to use - greater C satisfaction
Price..d
amount of money a customer is prepared to offer in exchange for a product
Cost-based pricing (mark up)
= Cost + (Cost * mark up %)
Market-based pricing
Setting prices according to S and D
Competition based pricing
Covers costs and is similar to competitors prices
Reasons for competition based pricing to set below/same/above price…
Below = break into market same = Already know what consumers will pay (match price leader) Above = give perception of superior product (appeals to status-conscious)
Pricing strategies…4
- Price Skimming
- Price penetration
- Loss Leader
- Price points
Process definition…
the consumer’s total experience of buying the product, from a simple stage of searching for information to the finnal stage of experiencing the benefits of the purchase.
Physical Evidence
Physical appearance of product across every presentation. All visual aspects of a business
Extended 3Ps
People
Process
Physical Evidence
Physical distribution issues..3
Transport.
Warehousing.
Inventory.
3 channels of distribution
Intensive
Selective
Exclusive
2 Aspects of the communication process…
Word of mouth.
Opinion Leaders.
Forms of promtion
- Advertising
- Personal Selling
- PR and Publicity
- Relationship Marketing
- Sales Promos
Dot points under Global marketing 5
- Global Branding
- Standardisation
- Customisation
- Global Pricing
- Competitive positioning
