marketing a business Flashcards
marketing
marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, good and services to create exchanges that satisfy individual and organisational objectives.
marketing is the process that provides a link between produces of goods and services and potential consumers. it is a total system of interacting activities designed to plan, price, promote and distribute products to pressent and potential customers
customer base/profile
the customer base is the basic description who the ideal customer might be. to determine this you will need to consider;
. customer behaviour and needs that the business can satisfy
. customer location and environment
. customers interests, favourite activities, lifestyles, opinions and values
. customer demographics such as age gender and education level
80-20 principle- 80% of sales come from 20% of customers meaning that 20% are loyal to that brand
business objectives
. financial goal is to make a profit, this can be achieved by increasing sales, increasing market share and expanding the size f the business
. non financial goal is the levels of customer satisfaction, this can be achieved by maximising customer service
. increasing market share
. expanding the size of the business, can ether be moving to larger premises or opening additional branch offices. businesses are also usually keep to increase product mis to appeal to different target markets and adapt with the changing Tates and preferences.
. maximising customer service is crucial to a successful business and result in improved customer satisfaction and a positive customer reaction to the products purchased. good customer service includes asking customers what they want, training and rewarding staff for good customer strive and doing market research on trends. on dissatisfied customer tells 11 others and in turn they each tell 5
evaluating effectiveness of a business
- what do we want to achieve
- what is actually happening
- is what os happening good or bad? and why Isi happening
- what should be done about it
performance indicators
- sales analyst
- market share analysis
- marketing probability analysis
the internal environments affect in customer base and brand identity
> owners and managers
. in charge of hiring a marketing manager if needed
. skills to be able to develop a customer profile
. need to have an idea of the objectives of a business
. ensure that marketing strategy is consistent with objectives
. need to organise the need for changes and to implement them
> employees
. details of marketing strategy need to be instilled in empower to ensure friendly, polite and effective service
> culture and policies
. forms the structure to how the business operates
. the business reputation and values become part of brand identity
the external operating environment
> customers
. most important stakeholders
. need to meet the needs and preferences of customers
. need to be customer focused or business is doomed to failure
suppliers
. suppliers depend on the success of those businesses to which they sell their products
strategy of supplier will also influence the way the retailer markets those products eg cokes marketing affects the marketing of those business which sell coke
competitors
. need to be aware of marketing strategies used by competitors in orgs to be unique and have a point of difference
. marketing strategy must be more effective than competitors to stand out
the external macro environment
> economic forces
. periods of strong economic growth can be favourable times to establish a business or expand customer base because employment levels re high and potential customer levels are increased
. in more difficult economic conditions a marketing strategy that emphasises value for money and lower prices than competitors is like to have greater success
legal forces
. ensure hat marketing practises are ethiacally and socially responsible and does not include practises that are illegal
social foces
. tappino Ito social trends and fashions can be powerful in a marketing plan
market research practises
working to help minimise risk is the man propose of market research
. by collecting and assessing info aboe needs and wants of csuomers a more accurate and responsive marketing plan can be designed and therefore the risk of market failure can be reduced
> determining info needs
. 90%info 10%inspo
. info is useful if it achieves market objectives, increases sales and profits or meets needs of target market.
> collecting data - primary
. primary data refers to the info collected from original sources for the purpose of the specific research problem
. methods include;
survey- personal interviews, focus groups,electronic methods of connection and questionnaires
observation- recording the behaviour of people by personal observation or mechanical observation experiemntation- experiments involve gathering data by altering factors under tightly controlled conditions to evaluate cause and effect.
secondary
. refers ti the info that some other person or business has already collected
> analysis and interpretation
maket segmentation
market segmentation is when the total matt is subdivided into groups who share one or more common characterisrics such as;
demographic- age , gender, occupation, education, religion, family size and ethnicity
geographic- urban, suburban, rural, regional, cameo, landform
psychographic- lifestyle, personality, socioeconomic group consumer trends
behavioural- regular user, first time user, brand loyalty
target market
a target market is a group of people with similar characteristics who currently put=rchase the product or may do so in the future
niche market
a niche marjet is a narrowly selected target market segment
consumer buying behaviour
consumer buying behaviour refers to the decionsland actions of consumers when they purchase good and services for personal or household use.
factors affecting consumer behaviour
psychological influences . perception . motives- comfort, health, safety, ambition, taste, pleasure, fear, amusement . attitude . personality
sociocultural influences . family and roles eg women more laundry related products . peer groups . social class . culture
economic influences
govenrment influences
product
a product is a good or service that can be offered. in n exchange for the purpose of satisfying need for wants, these are tangible and intangible meaning that you get is not just the product itself but the feeling and experience of getting the product.
