Marketing Flashcards
Describe the Role of Marketing
Marketing is the process of planning + executing the activities designed to plan, price + promote and distribute products to customers
Define the Strategic role of marketing
How marketing contributes to the overall strategic direction
List some ways effective planning can lead to
- Increased Market Share
- Increased brand awareness
- Facilitating Growth
- Profitability
Outline how the other business functions rely on the interdependence of marketing
Operations -> manufacture products to sell
Marketing -> Tell operations what to make (details/market research)
HR-> Provide marketing with skilled/trained staff to fulfil tasks
Marketing -> Promote requirements and advertise employment
Finance -> Provide financial info/finances for sufficient decision making (budgeting)
Marketing -> Tell HR how much finances required / total costs
Name the 3 Marketing Approaches over time
- Production
- Sales
- Marketing
Outline the features of the Production Approach
- Production Focused
- “If we make it, they will buy it”
- Efficient, Cheap, Quick
- Specialised
- Quality
Explain a Disadvantage of the Production Approach
No product Variety:
One disadvantage of the Production approach is that the business would only manufacture what they could make. This was a huge risk as they would rely on customers to buy the product purely on the basis of its quality and meant that some customers would look passed the product as it did not suit their needs.
Outline the features of the Sales Approach
- Increasing Competition
- Sales people employed to CREATE DEMAND
- Emergence of Advertising and Branding
- Persuading people to believe that the product will benefit their lives
Explain an Advantage of the Sales Approach
Introduction of Promotion and Branding:
An advantage of the Sales Approach was the introduction of Promotion and Branding. This meant that businesses were able to stand out from the rest of their competitors thanks to sales people creating a brand for their products. This resulted in customer / brand loyalty and higher profits as customers were convinced that the product would benefit their lives and therefore would purchases goods.
Outline the Features of the Marketing Approach
- Customer Orientated
- Market research + RELATIONSHIP BUILDING with customers
- “find out what the customer wants then we make it”
Differentiate between Customer orientation and Customer Satisfaction
Customer orientation is the basing of decisions on customer’s wants and needs, this however would result in slower production of goods,
Customer satisfaction was how the goods or services meet customer expectations.
List the Different Types of Markets
- Resource
- Industrial
- Intermediate
- Consumer
- Mass
- Niche
Briefly Outline what each of these Markets Involved
Resource - Production and Sale of Raw Materials
Industrial - Supplies used in production process are traded
Intermediate - Wholesalers sell FINISHED PRODUCTS to RETAILERS
Consumer - Products sold directly to Customers
Mass- Products aimed at all customers e.g. Petrol, Water, Electricity (utilities)
Niche - Product appeals to small target market. E.g. Luxury Cars
List the Different Influences on Marketing
Factors influencing customer choice:
- Psychological
- Socio-Cultural
- Government
- Economic
Consumer Laws
Ethical Influences
What are Psychological Influences?
These are influence within an individual that affect buying behaviour
Describe the Psychological Influences
- Perceptions - About value,quality,etc determine our buying behaviour. Our values and attitudes are reflected in our perceptions
- Motives- Such as fear, comfort, safety, health + ambition are used to sell products
- Learning - Refers to brand/product exposure, information + experiences to sell products
- Personality -Determines what products you are interested in
What are Socio-Cultural Influences?
These are the forces exerted by others or groups that effect individual buying behaviour
Describe the Socio-Cultural Influences
- Our social class or Socio economic status influence the quality, type + quality of a product a customer buys
- Culture- Influences what we buy - Determines what we wear, eat, how we live E.g. Social Trends
- Family + Roles - How you were brought up influences buying decisions. E.g. Mothers, Fathers, Children all have different decisions
- Peer Groups- Groups with whom a person identifies with -> buying decisions change to match value + attitudes of our peer group
Describe Economic Influences
Economic cycle consists of Booms + Recessions. During Booms, unemployment rate falls + income rises
This creates higher disposable incomes + spending levels rise. This also creates consumer confidence
The opposite happens during a recessions - Job security issues + minimal spending
Describe Government Influences
Governments influence consumer choice through management of economy (economic policies) + consumer laws + regulations
-Fiscal Policy
-Monetary Policy
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Describe the Fiscal Policy
If a government wishes to expand economic activity, they will increase expenditure levels
- This is know as the Fiscal Policy
This encourages consumer spending + Business Production and creates Jobs
Describe the Monetary Policy
Refers to the setting of interest rates in the economy
During slow economic growth, interests rates are set low. This reduces the cost of credit and therefore promotes individuals + businesses to spend more money
List the Conumer Laws that influence marketing
- Deceptive and misleading advertising
- Price discrimination
- Implied conditions
- Warranties
What is the ‘Australian consumer law”
Competition + Consumer Act (2010)
- Administered by the Australian Competition + Consumer Comission
- Sets outs rights + responsibilities of businesses + how they interact with customers to encourge a fair + competitive behaviour in the market place.
