Marketing Activities Flashcards
Define marketing
Include all the activities required to get the product from the producer to the consumer
List the auxiliary services of marketing
- market research
-  finance
3 insurance - transports
- Storage
6 collection and distribution
7 grading and standardised
8 selling
name the purpose of market research
•  identify target market – age, income, gender
• investigate size of market
• determine if potential customers need and want/willing to buy
• and basically price is willing to pay
• effective method and pace of distribution
• different methods of communication
Name the method of market research
• telephonic – snake that random and asked questions
• questionnaires – mailed
• personal interviews
• social media – Facebook Twitter Instagram
Define consumerism
The ability of consumers to influence the actions of business when they put pressure on organisations to do what is considered ethical
What do you members of society have the responsibility of?
Reduce our pollution by recycling and put pressure on business
How can individuals put pressure on businesses in consumerism?
Only support businesses that make products or delivery services in an ethical manner
What is considered ethical in consumerism?
Alex inviting nature, people or animals
What can consumers join in consumerism?
Join auto support organisations that act as watchdog over large corporations 
When was the consumer protection act (68 of 2008) sign?
24th of April 2009
List the aims of the consumer protection act (68 of 2008)
• protect consumers from an ethical market
• follow the lead of first world countries and align with the United Nations and European community guidelines – consumer protection
• Promotion advance the social and economical welfare
• assist historically disadvantage persons – fulfilling rights
How can the aims of the consumer protection act be achieved?
• defining consumer and marketing related terminology
• protecting the economic interest of cons
• improving access and quality of information – make informed choices
• protect consumers from hazards
• developed effective means of redress
• promote consumer education
• enter freedom of consumers to form groups – promote common interest
• promote consumer participation – decision-making
Define marketing management
Or decisions regarding marketing activities that are aimed at achieving the goals of the enterprise
Name the variables in the marketing system
- Manageable variables
- Semi-manageable variables
- Non-manageable variables
What are manageable variables?
Direct control of marketing manager
What are semi manageable variables?
Influenced by marketing manager
What are non-manageable variables?
Exist in external environment
Define consumer good
A product market with the aim of satisfying the need of the final consumer
Name the different types of consumer goods
- Convenience goods
- Select good/shopping goods
- Speciality goods
What are convenient good?
Purchase with little difficulty as possible and don’t spend a lot of money and time. It is not very valuable and brand seldom differ in price. Not brand loyal
What are selected/shopping goods?
Purchase after careful consideration of price, quality and brand-name
What are speciality goods?
A lot of time and energy is spent before final decision. Once in a lifetime purchase. Brand loyal. For example cars, iPhones and other technical products
Define industrial goods
Used in manufacturing other goofs
What are services?
Economic activities which are performed for a fee. Skills, knowledge and the use of assets are sold for specific purpose at a certain period of time
How do services differ from products?
Not tangible and difficult to see
What do services often require?
Products
Name the two types of services
- Personal and professional services
- Auxiliary services
What what are personal and professional services?
Aimed at the final consumer
What are auxiliary services?
How business improve the marketing process
What are auxiliary services also known as?
Commercial services
Name the characteristics of services
• intangible service – have consumers find physical evidence of quality
• service provider can’t be separated from service itself – interactive marketing
• a service is perishable. Increase in demand requires increase in supply. Decrease in demand is wasted capacity
• quality of service overtime and between people. Create service plan and train employees to meet requirements
Name the marketing of services
• Work on wording, descriptions and promises of benefits – can’t give visual representation
• Cost of services depends on inputs cost, materials and level of expertise. Important to work out balance between product and service
• Find a way to represent quality – affiliation or endorsement by celebrities
• keep the reception friendly and welcoming. Reception is well informed
• hello peter.com – rate business.
Why is continuous product design essential?
- Succeeded, compete, grow and achieve objective. Keep designing and developing new products – meet requirement of target market
- Better products are available – growth and profit
- Financial and marketing planning begins with product
- First technological development and resulting in increase of living
- Pay attention to design – avoid high risk and cost of product failure
Name the six steps involved in the product design
- Design and development of product ideas
- Sifting and selecting product ideas
- Designing and tasting product concept
- Analyse the profitability of concept
- Designing and tasting of actual product
- Test marketing
What does design and development of product and using include?
• Identify needs not satisfied
• get ideas about new product
What does sifting and selecting product ideas include?
• Consider all ideas and choose most suitable
• fit the objective, infrastructure and abilities – marketable product
• choose best ideas – expensive to launch new
What does designing and tasting the products concept include?
- Idea must be dividend. Find out the consumers concept of ideal product
What does analyse the profitability of the product concept include?
- Keep in mind how much capital invested
- How much profit will be made
- Potential sales, selling price, cost, net profit and use of assets
- Ask help of production manager and financial manager
Define profitability
Ability of a business to make a profit
What does designing and testing the actual product include?
- Marketed profitably – should be transformed into concrete formed
- Packaging, labelling and trademarks
- Produced on limited scale
What does taste marketing include?
- Test the reaction of consumers
- Small scale – problems will be illuminated
- Successful – mass produced and marketed on large scale
What the marketing life-cycle referred to?
The product being introduced onto the market, with low sales and lots of initial advertising
What happens in the beginning of the marketing life cycle during growth?
Rapid sales prices may be reduced
When does a product reach a level of maturity?
Sales increase slowly – stabilise
Why is maturity reached?
Market saturation, alternative products or no longer satisfies ones need
What will happen if the problem is not addressed during maturity?
Sales decline rapidly
What does the difference strategies used by the business depend on?
This stage in the product life cycle
What is the purpose of packaging?
• protect the product
• reused
• inform about ingredients/displays trademark
• different sizes and colours – different market segments
What are the requirements of good packaging?
• catch the eye
• suit the product
• appropriately designed – tiger market in mind
• promote the image of the business
• display purposes
• strong, well-designed and easy to carry
What is speciality packaging? Different forms
Type of product in mind
What is packaging for use? Different forms
It can be used more than once
What is combination packaging? Different forms
Related products back together
What is kaleidoscopic or continually changing packaging? Different forms
Changes to reflect a theme
What is packaging for immediate consumption? Different forms
Unit packaging – small quantities and can use without breaking
What is rearrangement packaging? Different forms
Break the bulk packaging
What is IP?
The product of a persons mind and intellect
What is intellectual property a result of?
Creativity which includes art, music, written words, images, designs and trademarks
How do you protect your property in intellectual property?
The owner has to register it – no one else can use it
What is the intellectual property registered with?
Companies and intellectual properties commission (CIPC)
What is plagiarism?
Stealing of any intellectual property
List the significance of a trademark
• indicates quality – protects consumer (reputation)
• registered with the Registrar of Trade Marks (CIPC) – against imitations
• helps to advertise
• control over definite market share
• easier to add new product to range
Define trademark
Spatial sign on goods that indicates to the public that a specific manufacturer produce the goods
Name the three different trademarks
- Common trade mark
- Individual trade mark
- Dealers trademark
What is a comment trademark question?
Manufacturer uses one trademark markets all products
What is individual trademarks?
Each product has owned trademark. For example Nestle
What is dealers trademarks?
Pick ‘n Pay
We are trademarks registered?
Registrar of Trade Marks at CIPC
How long is the legal protection for a trademark?
10 years – can be extended
What is the importance of branding to a consumer?
- Identify product
- Feel safer – well-known brand
- Consumer status
What is the importance of branding to the market division?
1 easier to sell
2. High price – successful brand
3. Market segmentation
4. Reduces marketing cost – well-known
What is the brand?
Name of the product
Name these stages of brand acceptance
- Brand recognition
- Brand preference
- Brand insistence
What is brand recognition?
Consumer able to identify from trademark
What is brand preference?
Consumer ask for specific brand – not available find another brand
What is brand insistence?
Consumer will not buy another brand
What is the importance of the price policy?
• regulates demand
• establishes target market
• decisive influence on profit
• establishes position in relation to competitors
Define price
The monetary value of a product that a consumer is prepared to pay
What does the manufacturer have to have in mind when determining prices?
• maintain market share
• increase market share
• eliminate competition
• maximise profits
• benefits of mass production
Name the different forms of markets
- Perfect competition
- Monopolistic competition
- Ogliopoly
- Monopoly
What is perfect competition?
Large number of buyers and sellers – price determined by supply and demand. For example Jae SE
What is monopolistic competition?
One child who dominates. Consumer is loyal to brand. For example coke
What is oligopoly?
Few salads and each insist own price. For example ETN and Vodacom
What is the monopoly market?
One solid determines own price. For example Eskom
Why is the demand for necessities elastic?
Have to buy regardless of price
What will the change in price of necessities lead to?
Not a large change in demand
Why is the demand for luxury goods elastic?
Small change in price would have a bigger change in demand
What of a substitute product affect the price?
Availability, quality and price
What happens if there’s no substitute product available?
Business have freedom to increase prices
What happens to business when the substitute product is available?
Not to overprice
Name the discount
- Cash discount
- Seasonal discount
- Bulk discount
- Trade discount
How can a business use a discount in terms of competition?
Get a competitive edge over their competitors
What is an example of fixed prices?
Petrol is controlled by the government
What happens if the price is too high?
Consumer can’t afford product (unlimited needs but limited purchasing power)
What must the manager keep in mind in terms of the behaviour of the consumer?
What is perceived to be good value for money
What is the altitude of distributors?
High price may discourage dealers from selling the product effectively
Why does production and distribution cost have a big influence on prize?
They have to recover from the cost of producing and distributing, as well as add profit
Define distribution channel
Help the manufacturer distribute goods
What is an agent?
Sounds good on behalf of the business
What do method of selling can be adopted by the manufacturer?
- Direct selling methods
- Indirect selling methods
What is direct selling method?
Manufacturer does not use retailers
List why a manufacturer would use direct selling methods
• manufacturers cannot convince retailers to carry their product
• retailers are not promoting product – marketing
• middlemen add too much profit
• middleman cannot transport – do own distribution
Define wholesaler
Buys from the manufacturer and sells to retailers
Define retailer
Last link in distribution channel. Buy some wholesaler and sales to final consumers
What risks do retailers take?
Price changes and bad debts
Define franchising
Marketing system with a franchiser enters into an agreement with the franchisee to distribute a product or service upon agreed terms
Define the informal sector
All economic activities that are not recorded in the national accounts
What are the national accounts?
GDP - Gross Domestic Product
List the ways in which an enterprise is considered part of the informal sector
• operate on small scale – very few paid employees
• no official business premises
• not registered
• does not keep records of business activities
List the characteristics of the informal sector
• create a job and develop on entrepreneurial skills
• unrecorded is 30% of more
• not recorded in GDP
• more people are involved due to a lack of education
• often aimed at survival
• include illegal activities
What are the advantages of the informal sector?
• create jobs – high unemployment rate
• can develop into a formal sector if there is sufficient growth
• develop on entrepreneurial skills, creativity and self-esteem
• competition for formal– lowest prices and better quality
• requirement are small
name the four components of the promotion policy
- Advertising
- Personal selling
- Sales promotion
- Publicity
does the business have to pay for advertising? What does this mean
Have to pay – choose the
What opportunity does Sally repeating the message give the buyer?
Compare different messages from suppliers
why is advertising an expressive form of communication?
Colour, sound, print and movement is used
Why can the audience not respond to the advertising message and ignore it?
Impersonal message
What is personal selling?
Live interaction between people – buyers are confronted by sales person. Buyer feels compiled to respond
What should the sales person keep in mind?
Show personal interest in the buyer and keep their best interest are hot
what does the buyer often feel under personal selling?
Obligated to listen and respond
Is sales promotion temporary open permanent?
Temporary
what does the instant appeal persuade the consumer to do?
Make an instant purchase
What does too many sales promotion tools imply?
Salah is very interesting to sell
what does the consumer think when there are too many promotion tools?
Question the quality
What is publicity?
Free information about your business
why is publicity a higher degree of created ability?
Business does not pay for the message
why can publicity be good or bad?
Business does not have any control over message
If obesity boost the image of the business what impact does it have?
Sales are indirectly promoted – does not cost large amount of money
What is internal publicity?
Impatient people get from the appearance of the buildings, display of goods and appearance of staff members
How does dwarf members impact into publicity?
The way they speak to client and the quality of service
name the functions and advantages of advertising
• demand increase – higher sales
• benefit from large production – lower cost per unit
• increased standard of living – new/cheaper product
• task of salesman easier – buyers no and ask
• recruitment of staff is easier
• improved product – see other manufacturers
• protect and warns about inferior substitute/rip off – trademark
• improve the image/reputation
why must only good quality goods to be advertised?
Customers will lose faith in businesses reputation
What is required before an advertisement can be made?
Good knowledge of the product characteristics
What must be done to make a lasting impression in advertising?
Striking design, feature and slogan
What should be stressed in terms of advertising?
Group relations
What must be avoided when advertised?
Incorrect information – qualities advertised
Why must competitors never be criticised?
Competitive advertising is illegal
How much the correct advertising medium be chosen?
Determined by tall market
What should the advertising expenses look like?
Kit as low as possible and within budget
Define ethics
Behaviour that is generally accepted by society
Why is honesty good?
Bode good customer relations
Name the unethical advertising behaviour
- False advertising
- Deceptive names
- Lying such making false statements about competitors
- Cultural pollution – discriminate against certain groups
- Creating false ones – materialism
What is the code of standard/conduct prescribed by?
Advertising Regulatory Board (ARB)
How can you keep reminding the consumer about your product?
Basing the advertising campaign on the trademark
What does advertising the trademark or brand name get the consumers to do?
Ask for that specific brand
What is digital marketing?
The various strategies of online marketing, aimed at reaching a specific target market or demographic
What can effective use of social media encourage?
Engagement between a brand and the consumers
What is a mated approach of digital marketing?
Search Engine Optimisation - make use of search engines
What is the aim of digital marketing
Drive online traffic from social media, Google and third-party sides to the company website – give information about the brand, product and services, culture and ethos
How is the brand loyalty reinforced in digital marketing?
They connect with the audience to content creation and online presents
Why is online marketing campaigns good?
The potential reach and measurable return on investment (ROI)
What is an advantage of digital marketing?
In valuable qualitative and quantitive feedback received by supporters
What reflects the behaviour of a consumer from online campaigns?
Review, comments or other Matrixx
What does market-research include?
• looking at competitors: number, products, demand
• legislation
What can I do once the objectives are clearly defined?
Possible to measure the success of the campaign
What is the budgeting for the campaign?
Discussions between business and advertising consultants – allocate sufficient funds
What factors should be considered when the choice of media?
• will the medium reach the potential buyers
• nature and content
• availability of times/space
• rate charged – based of reaching 1000 people
What must be design and wording be aimed at?
Achieving AIDA
What happens with coordination?
Make sure you are available at all dealers when advertisement is run
What methods can be used to determine whether the campaign was successful?
• name and address of business given in different format in different media
• different departments handle enquiries from different media
• consumers must return coupons or present a code
• consumers must mention the name of the paper/magazine/website
What does attention stand for?
Design, colour, words – striking
What does interest stand for?
Convince consumer the article is worth value and satisfying needs
What does desire mean?
What position of the article
What does action mean?
Decide to buy article
What does the advertising agent or consultant specialising?
Detailed advertising campaigns that suit the needs
How does consultants receive commission?
From the media the advert are placed in. Business will pay the media bill
List the duties of advertising practitioners
- Thorough knowledge of target market and product
- Planned around above findings
- Approach the media and negotiate space, time and rates
Ask competition increases what is more money spent on an advertising cost?
Better quality advertisement
What is the effect of advertising on the price of the product if the advertising leads to a high turnover?
The manufacturer can buy in bulk which gets discount and lowers the production cost per unit. Product sold at lower price – increase competition
What is the effect of advertising on the price of the product if it is not successful?
Not an increase in turnover. The cost of advertising will increase the price of the product
Name the characteristics of services
• Intangibility
• perishability
Define intangibility
A product can be touched and seen but a service can only be experienced once bought
Define perishability
Service is not used the opportunity is gone.
Name the additional three p’s
- Physical evidence
- People
- Process
What are the processes that the business has to go through?
Important how they market the products and services
Why does process need to be worked out?
Worked out in total employees into excellent service delivery
How does processes form a part of marketing?
Strengths that can play into how a brand or business market itself
What are people?
Happy staff members Leigh better business result
Why is it essential to train your staff?
To have skills and develop a culture of friendliness, efficiency and service delivery
Why is it important to have good physical evidence?
Services are in tangible
What is physical evidence?
Anything that is tangible and say something about your business
What enables customers to say enquiries in real time?
Emails and websites
What does online chopping allow for?
To shop day or night without the help of store assistance
What was the first attempts of advertising?
Email and pop-ups
Why does digital marketing often border on spam?
It compromises unsolicited, both messages sent out indiscriminately often by companies
How do companies get hold of peoples email addresses?
They have bought data bases
What is email marketing?
Targeted to current customers or potential customers that have requested information or subscribed
What do businesses use digital versions of the catalogues to show?
Showcase their products and services
What can the digital versions of the catalogues look like?
Interactive with audio or Vizio, static which is just images and information
What are subtle options of digital marketing?
Apps for phones and interactive games – learn about the products in virtual world
What is mobile marketing?
Marketing on phones
Why is mobile marketing a huge part of digital marketing?
The token market is practically always online
Are there a lot of restrictions in digital marketing?
No you don’t have time limits and marketing stays online for
How does digital marketing help with PR and react to bad publicity?
Companies can respond to complaints in minute or hours
Why does companies responding online give consumers comfort?
They feel as if they are speaking to people
What is viral marketing
The use of social networks to spread the word about a specific company, product or service
What does viral marketing depend on?
The public to pass on the word by resending the message or liking and cheering
What is forwarded in viral marketing?
Not a formal advert but a poster comic cartoon or video
What app is a vehicle for viral marketing?
YouTube
Why is via marketing not easily achieved?
It is unpredictable and depends on the mood of the audience, as well as the quality
What is digital branding?
Take brand into the world of electronic media
What does digital branding allow?
Customers to interact with it and make it accessible online
What tools are part of digital branding?
Interactive tools and animations as well as incorporate it in experiences of clients – apps, games media
What is social buying?
Enables business to access customers through their inboxes by collective buying power
What site allows customers to register access specials?
Dealzone.co.za
What is the process of social buying based on?
The retailer giving large discounts if a certain predecided number of people take up the offer
How often do these offers expire?
Within 24 hours
How long does a coupon last?
3 to 6 months
