Marketing Flashcards
Advertising
advertising is a paid, non-personal message communicated through a mass medium
Promotion
describes the methods used by a business to inform, persuade and remind a target market about its products
Promotion mix
is the various promotion methods a business uses
in its promotional campaign.
mass marketing
television, radio, newspapers and magazines
direct marketing catalogues
catalogues mailed to individual households
telemarketing
the use of the telephone to personally contact a customer
e-marketing
the use of the internet to deliver advertising messages
social media advertising
online advertising using social media platforms such as Facebook and Twitter
billboards
large signs placed at strategic locations
6 marketing media
mass marketing direct marketing catalogues telemarketing e marketing social media advertising billboards
Personal selling
the activities of a sales representative directed to a customer in an attempt to make a sale.
Relationship marketing
the development of long-term, cost- effective and strong relationships with individual customers.
Sales promotion
the use of activities or materials as direct inducements to customers.
Publicity
any free news story about a business’s products.
Public relations (PR)
those activities aimed at creating and maintaining favourable relations between a business and its customers.
An opinion leader
a person who infuences others
Word of mouth
when people influence each other during conversations
Marketing
a total system of interacting activities designed to plan, price, promote and distribute products to present and potential customers
Profit maximisation
when there is maximum difference between the total revenue coming into the business and total costs being paid out
Marketing plan
a document that lists activities aimed at achieving particular marketing outcomes in relation to goods or services.
The marketing concept
a business philosophy that states that all sections of the business are involved in satisfying a customer’s needs and wants while achieving the business’s goals.
The production approach
1820s to 1920s
focused businesses on the production of goods and services.
The sales approach
1920s to 1960s
emphasised selling because of increased competition.
The marketing approach
1960s to 1980s
focuses on finding out what customers want — through market research — and then satisfying that need.
Discretionary income
refers to disposable income that is available for spending and saving after an individual has purchased the basic necessities of food, clothing and shelter.
Customer orientation
refers to the process of collecting information from customers and basing marketing decisions and practices on customers’ wants and interests.
Customer satisfaction
measures how goods and services supplied by a business meet or exceed customer expectation.
Interdependence
mutual dependence that the key business functions have on one another.
finance- marketing need money
HR - right staffs are hired to create goods and services for desirable to customers
operations- sales analysis to forecast
The resource market
consists of those individuals or groups that are engaged in all forms of primary production, including mining, agriculture, forestry and fishing
The industrial market
includes industries and businesses that purchase products to use in the production of other products or in their daily operations.
An intermediate market
consists of wholesalers and retailers who purchase finished products and resell them to make a pro t.
Consumer markets
consist of individuals — that is, members of a household who plan to use or consume the products they buy.
In mass markets…
the seller mass- produces, mass-distributes and mass- promotes one product to all buyers.
A niche market
also known as a concentrated or micro market, is a narrowly selected target market segment.
Customer choice
(buying behaviour) refers to the decisions and actions of customers when they search for, evaluate, select and purchase goods and services.
Psychological factors (6)
are influences within an individual that affect his or her buying behaviour.
These are perception, motives, attitudes, personality and self-image, and learning.
Perception
is the process through which people select, organise and interpret information to create meaning.
A motive
is the reason that makes an individual do something.
An attitude
is a person’s overall feeling about an object or activity.
An individual’s personality
is the collection of all the behaviours and characteristics that make up that person.
An individual’s self-image
relates to how a person views himself or herself.
Sociocultural influences (4)
are forces exerted by other people and groups that affect an individual’s buying behaviour.
They are social class, culture and subculture, family and roles, and reference (peer) group.
Social class/socioeconomic status
refers to a person’s relative rank in society, based on his or her education, income or occupation.
A reference/peer group
is a group of people with whom a person closely identi es, adopting their attitudes, values and beliefs.
Learning
refers to changes in an individual’s behaviour caused by information and experiences.
Brand loyalty
occurs when a favourable attitude towards a single brand results in repeat sales over time.
Economic influences
economic forces influence a business’s capacity to compete, and a customer’s
willingness and ability to spend
the level of economic activity fluctuates from boom to recession.
Government influences
policies directly or indirectly influence business activity and customers’
spending habits
laws such as the Competition and Consumer Act 2010 (Cwlth), Sale of Goods
Act 1923 (NSW) and the Fair Trading Act 1987 (NSW) influence marketing decisions.
Unconscionable conduct
is any practice by a business that is just not reasonable and often illegal.
Bait and switch advertising
involves advertising a few products at reduced and, therefore, enticing prices to attract customers.
Dishonest advertising
is when an advertisement uses words that are deceptive or claims that a product has some specific quality when it does not.
Price discrimination
is the setting of different prices for a product in separate markets.
Consumer guarantees
are a comprehensive set of rights and remedies for defective goods and services.
Implied conditions
are the unspoken and unwritten terms of a contract.
Acceptable quality
means that the product is fit for the purpose for which it is being sold, acceptable
in appearance and finish, free from defects, safe and durable.
A warranty
is a promise made by
a business that they will correct any defects in the goods that they produce or in the services that they deliver.
The main restrictive trade practices are:
deceptive and misleading advertising — creating a false impression in an attempt to influence customers
pricediscrimination—thesettingofdifferentpricesforaproductinseparate
markets.
A business is required by law to offer a refund if the products provided: (3)
– are faulty
– do not match the description or a sample
– fail to do the job they were supposed to do.
Materialism
is an individual’s desire to constantly acquire possessions.
Product placement
is the inclusion of advertising in entertainment.
Sugging
selling under the guise of a survey, is a sales technique disguised as market research
Self-regulation
is a system by which a business or industry controls its own activities rather than being publicly regulated by an outside organisation such as the government
5 main ethical criticisms include:
– creation of needs — materialism – stereotypical images of males and females – use of sex to sell products – product placement – invasion of privacy.
False or misleading advertising is illegal T or F
T
3 unethical marketing practices relating to truth and accuracy in advertising can
range from:
– untruths due to concealed facts
– exaggerated claims
— puffery
– vague statements.
SWOT analysis
involves the identification and analysis of the internal strengths and weaknesses of the business, and the opportunities in, and threats from, the external environment.
The product life cycle consists of the stages a product passes through:
introduction
growth
maturity
decline
Market research
is the process of systematically collecting, recording and analysing information concerning a specific marketing problem.
Marketing data
the information relevant to the de ned marketing problem.
Primary data
facts and figures collected from original sources for the purpose of the specific research problem.
Secondary data
information that has already been collected by some other person or organisation.
Internal data
information that has already been collected from inside the business.
External data
published data from outside the business.
Statistical interpretation analysis
the process of focusing on the data that represents average, typical or deviations from typical patterns.
To obtain reliable and accurate information, marketers follow a three-step approach:
Step 1: Determining information needs. The problem is clearly stated to determine what needs to be measured and the issues involved.
Step2:Collectingdatafromprimaryandsecondarysources.Dataarecollected by mail, telephone and personal surveys, personal observation or from private data sources.
Primary data: interviews and surveys.
Secondary data: industry reports and Australian Bureau of Statistics.
Step 3: Data analysis and interpretation. Determine what the data means.
Statistics are processed to determine if responses show trends or patterns that can be used in the business.
Marketing objectives + examples
realistic and measurable goals to be achieved through the marketing plan.
ex. increase market share, expand product range, maximising customer service
Market share
the business’s share of the total industry sales for a particular product.
Product mix
the total range of products offered by a business.
Customer service
responding to the needs and problems of the customer.
Target market
a group of present and potential customers to which a business intends to sell its product.
Primary target market
the market segment at which most of the marketing resources are directed.
Secondary target market
usually a smaller and less important market segment.
Mass marketing approach
seeks a large range of customers
the seller mass-produces, mass-distributes and
mass-promotes one product to all buyers
Market segmentation Approach
when the total market is subdivided into groups of people who share one or more common characteristics.
Niche market approach
a narrowly selected target market segment
Marketing strategies
actions undertaken to achieve the business’s marketing objectives through the marketing mix.
Marketing mix
refers to the combination of the four elements of marketing, the four Ps — product, price, promotion and place — that make up the marketing strategy.
Quick descriptions of 4 ps
A product is a good or service that can be exchanged for money.
The price is the amount of money a customer is prepared to offer in exchange for a product. It refers to the method or strategy the business uses to decide their
prices.
Promotion describes the methods used to inform, persuade and remind
customers about a business’s products.
Place is the element of the marketing mix that deals with the channels of
distribution: the ways of getting the product to the customer.
Implementation
the process of putting the marketing strategies into operation.
Monitoring
checking and observing the actual progress of the marketing plan.
Controlling
the comparison of planned performance against actual performance and taking corrective action to make sure the objectives are attained.
Sales analysis
the comparing of actual sales with forecast sales to determine the effectiveness of the marketing strategy.
Marketing profitability analysis
a method in which the business breaks down the total marketing costs into specific marketing activities.
Product deletion
the elimination of some lines of products.
when evaluating alternative marketing strategies, a business must..
develop a financial forecast that details the costs and revenues for each strategy
Three key performance indicators used to measure the success of the marketing
plan are:
– sales analysis
– market share analysis
– marketing profitability analysis.
The marketing plan can be revised by: (3)
– changes in the marketing mix
– new product development
– product deletion.
Developing a financial forecast requires two steps:
– Step 1: Estimate the cost of the marketing plan.
– Step 2: Estimate the revenue (sales) the marketing plan is expected to
generate.
The extended marketing mix
the combination of people, processes and physical evidence with the four main elements of the marketing mix.
A segmentation variable + 4
the characteristics of individuals or groups that are used by marketing managers to divide a total market into segments. demographic geographic psychologic behaviour
Demographic segmentation + ex
process of dividing the total market according to particular features of a population Age Gender Education Occupation Income Social Class Religion Ethnicity
Geographic segmentation
process of dividing the total market according to geographic locations. Region Urban Suburban Rural Climate
Psychographic segmentation
process of dividing the total market according to personality characteristics. motives opinions socioeconomic group lifestyles
Behavioural segmentation
process of dividing the total market according to the customers’ relationship to the product. Purchase occasion Benefit sought Loyalty Usage Rate
Product/service differentiation
process of developing and promoting differences between the business’s products or services and those of its competitors.
Value for money
the desire to obtain the best quality, features and performance for a given price of a product.
Ethical consumerism
involves buying products that are not harmful to the environment, animals and society.
Fair Trade movement
an alternative method of international trade that promotes environmentalism, fair wages, alleviation of global poverty and a fair price for farmers and workers.
Product positioning
refers to the technique in which marketers try to create an image or identity for a product/service compared with the image of competing products/services.
The total product concept
refers to the tangible and intangible benefits (attributes) a product possesses.
A brand
is a name, term, symbol, design or any combination of these that identities a specific product and distinguishes it from its competition.
A brand name is that part of the brand that can be spoken.
A trademark
signifies that the brand name or symbol is registered and the business has exclusive right of use.
A brand symbol or logo
a graphic representation that identifies a business or product.
Manufacturer’s brand or national brands
are those owned by a manufacturer.
A private or house brand
is one that is owned by a retailer or wholesaler.
Generic brands
are products with no brand name at all.
Packaging involves
the development of a container and the graphic design for a product.
Labelling
is the presentation of information on a product or its package.
Price
the amount of money a customer is prepared to offer in exchange for a product
Cost-based pricing
a pricing method derived from the cost of producing or purchasing a product and then adding a mark-up.
Mark-up
a predetermined amount (usually expressed as a percentage) that a business adds to the cost of a product to determine its basic price.
Market-based pricing
a method of setting prices according to the interaction between the levels of supply and demand — whatever the market is prepared to pay.
Competition-based pricing
where the price covers costs (cost of raw materials and the cost of operating the business) and is comparable to the competitor’s price.
A price leader
a major business in an industry whose pricing decisions heavily influence the pricing decisions of its competitors.
Bundle pricing
where customers gain a ‘package’ of goods and services in addition to the tangible good they purchased.
Price Skimming
when a business charges the highest possible price for the product during the introduction stage of its life cycle.
Price penetration
when a business charges the lowest price possible for a product or service so as to achieve a large market share.
A loss leader
a product sold at or below cost price.
Price points (or price lining)
selling products only at certain predetermined prices.
Prestige or premium pricing
a pricing strategy where a high price is charged to give the product an aura of quality and status.
Three main pricing methods:
– Cost-based (mark-up) pricing
– Market-based pricing
– Competition-based pricing i
Four main pricing strategies
Price Skimming
Price Penetration
Loss Leader
Price Points
There are four main ways in which public relations activities can assist a business in achieving its objective of increased sales:
- Promoting a positive image
- Effective communication of message
- Issues monitoring
- Crisis management
Noise
any interference or distraction that affects any or all stages in the communication process.
Place or distribution
activities that make the products available to customers when and where they want to purchase them.
Traditional distribution channels (4)
- Producer to customer.
- Producer to retailer to customer.
- Producer to wholesaler to retailer to customer.
- Producer to agent to wholesaler to retailer to customer.
Non-store retailing (2)
retailing activity conducted away from the traditional store.
Telemarketing
Internet marketing
Channel choice Market coverage (3)
the number of outlets a firm chooses for its product.
Intensive distribution
Selective distribution
Exclusive distribution
Physical distribution
all those activities concerned with the efficient movement of the products from the producer to the customer.
People
the quality of interaction between the customer and those within the business who will deliver the service.
Processes
the flow of activities that a business will follow in its delivery of a service.
Physical evidence
the environment in which the service will be delivered.
It also 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
E-marketing (electronic marketing)
the practice of using the internet to perform marketing activities.
E-marketing technologies
Web pages
-floating ads, wallpaper ad, display advertising (cookies + browzers to determine), trick banner (error/message), pop up
annoying
Podcasts
SMS
Blogs
Web 2.0
search engine marketing - increasing visibility
Web page
a display of information accessible on the web through a web browser.
Podcasting
involves the distribution of digital audio or videos files over the internet.
Short message service (SMS)
the means by which text messages can be sent between mobile phones.
Blog
an online journal that can be added to by readers.
Web 2.0
transformation of the www into a more creative and interactive platform for information sharing
Social media advertising (SMA)
a form of online advertising using social media platforms to deliver targeted commercial messages to potential customers.
Hard to measure:
reach-the number of people exposed to the message
frequency-the average number of times someone is exposed
A transnational corporation (TNC)
any business that has production facilities in two or more countries and that operates on a worldwide scale.
Global branding
the worldwide use of a name, term, symbol or logo to identify the seller’s products.
Standardised approach
a global marketing strategy that assumes the way the product is used and the needs it satisfies are the same the world over.
Customised or local approach
a global marketing strategy that assumes the way the product is used and the needs it satisfies are different between countries.
Global pricing
how businesses coordinate their pricing policy across different countries.
Customized
Market customed
Standard worldwide
Customised pricing
whenever consumers in different countries are charged different prices for the same product.
Market-customised pricing
sets prices according to local market conditions.
Standardised pricing
the practice of charging customers the same price for a product anywhere in the world.
Competitive positioning
relates to how a business will differentiate its products.
Ethical- engaging in fair competition (5)
Cartel conduct: cartels exist when businesses agree to act together instead of competing, designed to
increase the profits of cartel members & put other companies out of business… e.g. illegal to fix prices
Anti-competitive agreements: contracts/arrangements containing provisions which have the effect of
substantially lessening competition in a market… PROHIBITED
Misuse of market power: prohibits corporations who have substantial degree of market power from
taking advantage for the purpose of damaging a competitor
Exclusive dealing: when one person or business trades w another and then imposes restrictions on them
e.g. business only buys g/s if the purchaser agrees to buy g/s from a particular third party
Resale price maintenance: suppliers can recommend that resellers charge certain price, but businesses
can charge below… illegal for suppliers to pressure other businesses to charge RRP
Mergers: most are legal, but they are prohibited if it can be demonstrated that they have the effect of
substantially lessening competition in the market
