Marketing Flashcards
Explain the term entrepreneurship?
An entrepreneur is someone who takes on the risks of starting a new business in which supplies a new, innovative product or service.
Explain the term intrapreneurship?
Is the act of behaving like an entrepreneur, whilst working within a large company.
How can management foster intrapreneurship within an organisation?
- Be transparent
- Reward proactive behaviour
- Fix problems independently as they arise
- Encourage healthy competition
Explain, “being transparent”?
trusting your employees with important company information
and
including them in company wide decisions,
can make them feel involved in day-to-day business processes, regardless of individual employed roles.
also
ask staff to provide feedback on information distributed to make them feel valued.
Explain, “rewarding proactive behaviour”?
Managers shouldn’t be controlling. Instead, should be more “hands off” and reward employees whom have take charge of finding ways to fix or improve elements of the businesses activities, individually.
Explain, “encouraging employees to fix problems”?
Managers should encourage employees to fix problems as they arise. When an issue occurs in the start up setting, entrepreneurs must take responsibility and address the situation immediately. Otherwise, the problem could escalate and in the long term effect the businesses chances of succeeding. Managers should instil this sense of urgency within their employees as this will ensure they are competent to resolve problems of various scales confidently.
Explain, “encouraging healthy competition”?
Employees should have a healthy sense of competition with one another, to strive to do the best job they can, and get results, using one another as the motivation to strive harder.
What laws are associated with ethics and marketing? Explain each response.
Truth, Accuracy and Good Taste advertising;
- exaggerated claims, vague statements
Products that may damage health;
- anti smoking ads, child self image awareness ads, gambling ads at certain times
Engaging Fair Competition;
Exclusive dealing - where supply is limited to certain customers
Predatory pricing - where business may cut prices and incur losses to undermine a competitor
Sugging;
Selling under the guise of a survey is a sales technique disguised as market research.
- people shop offeres
What classified as “illegal” marketing? Explain each response.
Deceptive and Misleading Advertising
misleads or deceives or is likely to deceive consumers or other business
- fine print and qualifications, comparative advertising, bait and switch advertising, environmental claims, country of origin claims
Price Discrimination
sells the same type of good or service in different markets at different prices
Implied Conditions
- Of an acceptable quality
- Fit for purpose
- Matching the description/ sample demonstrated
- Labelling
- Manufacturing guarantees repairs
- Ensuring the business provides services with an acceptable level of care and quality
Warranties
voluntary promise offered by the person or business
- Against defects, Extended warranties
Examples on UNETHICAL marketing?
Unethical marketing is not necessarily against the law, many companies use unethical advertising to gain a competitive advantage.
Surrogate Advertising
- In certain places there are laws against advertising products like cigarettes or alcohol. Surrogate advertising finds ways to remind consumers of these products without referencing them directly.
Exaggeration
- Some advertisers use false claims about a product’s quality or popularity. A Slogan like “get coverage everywhere on earth” advertises features that cannot be delivered.
Puffery
- When an advertiser relies on subjective rather than objective claims, they are puffing up their products. Statements like “the best tasting coffee” cannot be confirmed objectively.
Unverified Claims
- Many products promise to deliver results without providing any scientific evidence. Shampoo commercials that promise stronger, shinier hair do so without telling consumers why or how.
Stereotyping Women
- Women in advertising have often been portrayed as sex objects or domestic servants. This type of advertising traffics in negative stereotypes and contributes to a sexist culture.
False brand comparisons
- Any time a company makes false or misleading claims about their competitors they are spreading misinformation.
Children in advertising
- Children consume huge amounts of advertising without being able to evaluate it objectively. Exploiting this innocence is one of the most common unethical marketing practices
What is a target market?
A target market is a specific group of people in which a business is trying to sell their product or service to. This group is dictated by certain criteria within the following titles: demographic, geographic, psychographic, and behavioural. A business may have more than one target market.
What is the impact and importance of identifying the correct target market?
Identifying the correct target market is crucial for the long term success of the business. If the business fails to identify their target audience, not only will this effect the new product or services success, but will alternatively effect the entirety of the business.
Describe the different market segmentations?
Demographics
age, gender, occupation, education, religion, family size, ethnicity
Geographics
urban, suburban, rural, regional, international, climate, landform
Psychographics
lifestyle, socio-economic group, motives, personality, consumer opinions and interests
Behavioural
regular user, first time user, brand loyal
Describe each area of the ‘marketing mix’?
PRODUCT
a product is a good, service or idea that creates customer appeal and satisfies customer wants
PRICE
source of revenue for company
PROMOTION
any activity intended to create sales through the dissemination of information to potential buyers
PLACE
The organisational arrangements which an organisation uses to distribute its products.
It refers to the use of intermediaries such as wholesalers and retailers in the distribution chain.
Explain marketing mix objectives and strategies available?
PROMOTION
Communication – inform customer about product existence and/or product features.
Product Positioning – establish image and attributes of a product in the minds of the consumers
Sales control – Boosting of sales to overcome slow periods
PRICING
Cost-Oriented Pricing:
Cost of item (raw materials, labour, distribution etc) + mark-up
Competition-based pricing:
Price is established by reference to competition
Consumer-Oriented: Price is established according to demand (what the consumer is willing to pay for a product)
