Marketing Flashcards
Define marketing
The activities of a company associated with buying, advertising, distributing or selling a product or service
OR
CIM Definition: “Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably.
Define customer requirements
Are what motivates consumers to purchase a product or service
What are the customer requirements
Goods: Are physical entities that can be touched
Services: The action of paying someone to do something for you
Ideas: Concepts, philosophies, images or issues.
Give an example of customer requirements for each category
Goods: Phone; toothpaste; shoes etc.
Services: Dry cleaning, banking, hairdressing etc.
Ideas: Charity; religion; political parties etc.
What are the main categories of marketing?
Business to business (B2B) or industrial marketing: satisfying the needs of other business (e.g. Alibaba, Amazon)
Business to customer (B2C) or consumer marketing: creating and delivering products to satisfy consumers (e.g. Tesco, Asda etc.)
Customer to customer (C2C): Customers can trade with each other usually online (e.g. eBay, Gumtree etc.)
Define market orientation
An approach that prioritises identifying the needs and desires of consumers and creating products & services that satisfy them.
What are the types of other business/market orientation?
Product
Production
Sales
Marketing
What is the focus of the other business orientations?
Product: Is an approach to business where activities are taken to improve or manufactured products
Production: Transforming resources into finished products in the form of G & S - improving efficiency
Sales: Efforts put into increasing turnover by selling more G & S
Marketing: Focus is continually on consumers and consumer demands
What is the market research process?
Identify and define the research problem
Develop hypotheses
Collect data
Analyse and interpret
Report research findings
What are the sources of marketing research?
Internal records
Marketing intelligence
Give examples of the sources of marketing information
Internal records: Customer data, sales and order data, cost info, financial performance, quality statistics
Marketing intelligence: Micro & micro environ analysis, industry reports & analysis, market research, competitor analysis
Define buyer behaviour
Refers to the decisions or acts people undertake to buy G or S for indiv or group use
What are the 5 step decision making process of buyer behaviour?
Need recognition Search for information Compare/evaluate alternatives Purchase decision Post purchase evaluation
What are one of the fundamental concepts of marketing?
To understand and address the needs, wants and demands of the target market
Define needs, wants and demands
Needs: Are things that satisfy the basic requirement
Wants: Requests directed to specific types of items
Demands: Requests for specific product that the buyer is willing to and able to pay for
Give examples of the need, wants and demands
Needs: Thirst, washing m/c, transportation/automobile etc.
Wants: better performance with their mobiles, convenience/control/comfort etc.
Demands: Concept of quality and quantity, cars in certain colours/specific safety ratings etc.
What are the main types of marketing decisions?
Segmentation
Targeting
Positioning: the 4 P’s - price, product, place, promotion
What are the focus points of the marketing decision types?
Segmentation: Who are the groups of customers who have the similar needs & demand for similar products
Targeting: Which segment will be targeted, matching & prioritising market segments
What are the characteristics used for segmentation, targeting and marketing mix?
Segmentation: Gender, location, religion, price, age, interest etc.
Targeting: Segmented market size, growth potential, competitive dynamics of that sector
Positioning:
- Product (quality, variety, design, brand name, packaging etc.)
- Price (discounts, payment period, list price etc.)
- Promotion (advertising, personal selling, public tec.)
- Place (Locations, inventory, transport, coverage etc.)
What are the additional P’s? (not really being focused on)
People Process Physical Evidence Philosophy Passion
Define product lifecycle
Refers to the length of time a product is introduced to consumers into the market until it is removed from the shelves
What are the four stages of product lifecycle?
Introduction
Growth
Maturity
Decline
what happens in each stage of the product lifecycle
Intro: Substantial investment in advertising & marketing campaign - making consumers aware of the product and its benefits
Growth: Successful - characterised by growing demand, an increase in production, and expansion in its availability
Maturity: The most profitable stage while the costs of producing and marketing decline
Decline: Product takes on increased competition - other companies - enhancing or lowering prices - may lose its market share and begin to decline
What is meant by product positioning?
the process of deciding and communicating how you want your market to think and feel about your product.
i.e. how your product can solve your customers problems, why it is a better solution than its competitors etc.
