Marketing Flashcards
Production Approach
Focus on production process, invents/develops products, high quality
Selling approach
Focus on selling, competitive through sales, advertising a product as better than competitors
Marketing approach
Focus on consumer needs/wants, customer put first
Types of Markets (6)
Resource, industrial, intermediate, consumer, mass, niche
(Type of Mark.) Resource
Producers of raw materials E.g. minerals, energy
(Type of Mark.) Industrial
industries and businesses that purchase products to use in the production of other products or in their daily operations.
(Type of Mark.) Intermediate
Businesses that purchase finished goods and resell to make a profit E.g. Coles, wholesalers
(Type of Mark.) consumer
Businesses and individuals who purchase the finished product
(Type of Mark.) mass
Total unsegmented market, every single consumer
(Type of Mark.) niche
Small & unique sections of the market
Factors influencing customer choice (4)
Psychological, sociocultural, economic, government
Psychological (5)
perception, motivation, attitudes, personality/self image, learning
(Psy.) Perception
meanings an individual has towards a good/service. Customers will not purchase a product that they perceive as inferior.
(Psy.) Motivation
The reason an individual does something – comes from motives such as comfort, health, safety, ambition, taste, pleasure, fear, amusement, cleanliness and approval of others.
(Psy.) Attitudes
Individuals overall feeling about good/serviced. Negative attitudes towards a business may force the business to change marketing strategies.
(Psy.) Personality/self-image
Personality is the behaviours and characteristics of an individual, which influences the types and brands of goods/services that a consumer purchases.
Self-image is the way an individual views themselves, which is a major determinant of what products they purchase as you are able to express yourself through possessions – “you are what you buy”
(Psy.) Learning
The changes in an individuals behaviour from the gathering of information and experiences, which a business is able to provide if they have the thorough knowledge of the product itself, and is often expressed through marketing
Sociocultural (4)
Social class, culture and subculture, family and roles, reference (peer) groups
(Soc.) social class
Also defined by socioeconomic status, by education, occupation and income which defines the lifestyles and availabilities to specific goods and services in relations to type, quality and quantity for the individual. High-income earners are more likely to purchase high quality products.
(soc.) culture and subculture
All the learned values, beliefs, behaviours and traditions of a society, which determines what we wear, diet and where and how they live.
(soc.) family and roles
Typical women’s stereotypes of making purchases for the family, may mean that marketing is aimed more often at women than it is at men.
(soc.) reference(peer)groups
A person may closely identify and obtain attributes, attitudes, values and beliefs from the people they spend time around meaning that. Also peers share opinions of products, services and stores both negatively and positively which will influence the individual’s decision of purchase.
Economic (2)
Boom, recession
(Eco.) Time of Boom
High employment, rising incomes, customers optimistic about future, increase consumer spending
(Eco.) Time of recession
Unemployment levels rise, income fall, customers pessimistic about the future, decrease in consumer spending
Governement
Policies directly or indirectly influence business activity with customers willingness and ability to spend
Laws influencing marketing decisions
Deceptive and misleading advertising (8)
Fine print, before/after advertising, tests and surveys, country of origin, packaging, special offer, bait and switch advertising, dishonest advertising
(Dec/mis adv.) Fine print
important conditions displayed in small print
(Dec/mis adv.) before/after advertising
Photographs are enhanced for the result or the before photo to be more drastic to mislead the customer
(Dec/mis adv.) tests and surveys
Using false statistics and info from surveys that have not actually been conducted
(Dec/mis adv.) country of origin
“Made in Australia” and “Product of Australia” have two different meanings, but may fools consumers as they may desire to stay loyal to Australian Manufacturers
(Dec/mis adv.) packaging
Size and shape of the package may be deceiving to the actual product within the package. E.g. a bag of chips/air
(Dec/mis adv.) special offer
Advertisements stating that a special offer is offered for a limited time, when in fact the offer is continuously offered, or not offered at all
(Dec/mis adv.) bait and switch
Advertising a few product at sale prices and therefore enticing prices to attract customers
(Dec/mis adv.) dishonest advertising
An advertisement using words that are deceptive or claims that a product has some specific quality when it does not.
Price Discrimination
- The setting of different prices for a product in separate markets
- Difference in price:
- Markets are geographically separated
- Product differentiation within one market E.g. difference between electricity for domestic and business users
- Competition and consumer act prohibits price discrimination if it could substantially reduce competition
Implied Conditions – consumer guarantees:
- Comprehensive set of rights and remedies for defective goods and services
- Purchased goods/services must be of acceptable quality, meaning that it is fit for the purpose, acceptable appearance, safe, durable and has no defects at purchase
Warranties:
- Promise made by a business that they will correct any defects in the goods that they produce or in the services that they deliver
- Can be used as a marketing tool, E.g. if a business provides a longer warranty than the competitors, then this will give customers the impression that the product is of superior quality
- Refunds and Exchanges:
- If the products provided are faulty
- Do not match the description or a sample
- Fail to do the job they were supposed to do
- No obligation to refund if the customer has changed their mind
Consumer laws (4)
Deceptive/misleading advertising, price discrimination, implied conditions, warranties
Ethical influences (5)
truth, accuracy and good taste in advertising, products that may damage health, engaging in fair competition, sugging
(eth.) truth/accuracy (3)
Untruths Due to Concealed Factsàhiding the truth in advertisements to mislead the consumers and only view the positives of the products
Exaggerated Claimsàsuperior value of other competing products cannot be proved or confirmed by consumers
Vague Statementsà Using vague language to mislead consumers as to what exactly the product is useful for
Ethical criticisms (5)
creation of needs, stereotypical images of male and female, use of sex to sell products, product placement, invasion of privacy
(eth.) good taste
‘Good Taste’ is highly subjective as some consumers may regard an advertisement as offensive, whilst others might find it entertaining or inoffensive
(eth.) products that may damage health
- As obesity rates are increasing, the advertising of junks foods is becoming more and more unethical.
- Advertising of junk food aimed at children
(eth.) engaging in fair competition (6)
cartel conduct, anti-competitiveness agreement, misuse of market power, exclusive dealing, resale price maintenance, mergers
(eth.) sugging
• Selling under the appearance of a survey. It is illegal, but difficult to detect
Marketing Process (6)
SMEIDI Situational Analysis, Market Research, Establish Market Objectives, Identifying Target Markets, Developing Marketing Strategies, Implementing/Monitoring/Controllng
(Mark.Pro.) Situational Analysis
SWOT, Product Life Cycle
(Mark.Pro.) Market Research
Process of collecting, analysing and presenting information about a given product and market
- Determine Information Needs
- Collect Data from Primary and/or Secondary Resources
- Data Analysis and Interpretation
(Mark.Pro.) Establishing market objectives
Increasing market share, expanding product mix, maximising customer service
(Mark.Pro.) identifying target market
Mass market approach, market segmentation approach, niche marketing approach
(Mark.Pro.) Developing marketing strategies
PPPP
(Mark.Pro.) Implementing, monitoring, controlling
developing a financial forecast; comparing actual and planned results, revising the marketing strategy
Marketing Strategies (8)
Market segmentation/differentiation/positioning, Products, price, promotion, place, people, e-marketing, global marketing
(Mark.Strat.) Market segmentation, product/service differentiation and positioning
Segmentation:
Demographic, geographic, psychographic, behavioural
Differentiation points: Customer service Environmental Convenience Social and ethical issues
Positioning:
Refers to the technique marketers use to try to create an image or identify for a product
(Mark.Strat.) Products
Branding, packaging
attracts attention, preserves product, damage, transport, display
(Mark.Strat.) [Price1/3] Pricing Methods
Cost:
Cost of production, adding mark-up
Competition:
Compare to competition
Market-led:
prices according to supply and demand
(Mark.Strat.) [Price2/3] Pricing Strategies
Skimming:
Business charges the highest possible price for the product during the introduction of its life cycle
Penetration:
When a business charges the lowest price possible for a product/service to achieve a large market share
Loss leaders:
Priced less than cost, attracts customers to location
Price points:
Selling products only at certain predetermined prices
(Mark.Strat.) [Price3/3] Price and Quality Interaction
Higher price, higher quality
(Mark.Strat.) [Promotion1/2] Elements of the Promotion Mix
Advertising:
paid-promotion
Personal selling/relationship marketing:
Consumer direction, door-to-door
Sales promotions:
coupons, premiums, discounts, samples
Publicity and public relations:
Activities aimed at creating a favourable relation between a business and its customers e.g. MLC newsletter
Publicity is any free news story about a business’ products. Its timing is not controlled by the business
(Mark.Strat.) [Promotion2/2] The Communication Process
Opinion leaders:
• A person who influences others whose opinion is respected (celebs)
Word of mouth:
^^^^^
(Mark.Strat.) [place1/3] Distribution Channels
Traditional:
Producer to customer
Producer to retailer to customer
Producer to wholesaler to retailer to customer
Producer to Agent to Wholesaler to Retailer to Customer
Innovative:
telemarketing
internet marketing
(Mark.Strat.) [place2/3] Channel Choice
Intensive:
Occurs when the business wishes to saturate the market with its product. Customers can shop at local outlets and be able to purchase the product.
(available at most stores)
Selective:
Involves using only a moderate proportion of all possible outlets.
(at certain places)
Exclusive:
Only one retail outlet
(Mark.Strat.) [place3/3] Physical Distribution Issues
Transport:
largely depends on type of product
Warehousing:
set of activities involved in receiving, storing & dispatching goods.
Inventory:
• System to maintain quantities & varieties of products appropriate for target market.
(Mark.Strat.) People, Processes, Physical Evidence
People:
• Refers to the quality of interaction between the customer and those within the business that will deliver the service
Processes:
Refers to the flow of activities that a business will follow in its delivery of a service
Physical Evidence:
Refers to the environment in which the service will be delivered
Includes the location of where the service is being provided and the materials needed to carry out the service such as signage, brochures, business cards, business logo and website
(Mark.Strat.) e-marketing
Practice of using the internet to perform marketing activities
(Mark.Strat.) Global Marketing
Global Branding:
Worldwide use of a name, term, symbol or logo to identify the sellers products
Standardisation:
A standardised approach is a global marketing strategy that assumes the way the product is used and the needs it satisfies are the same all over the world
Customisation:
the way the product is used and the needs it satisfies are different between countries.
Global Pricing:
Global Pricing is how businesses coordinate their pricing policy across different countries
(customised pricing, market-customised pricing, standardised pricing)
