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Business for me🌼 > Marketing activities > Flashcards

Marketing activities Flashcards

Targeting and segmenting the market, 4p's of the marketing mix, factors influencing the choice of marketing methods, trust reputation and loyalty

1
Q

What is marketing?

A

It is a way of creating brand awareness and attracting potential customers

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2
Q

Define what a customer is

A

A customer is a person who buys something however, they may buy it to sell it on, not to use it themselves

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3
Q

Define what a consumer is

A

A consumer is a person who buys the product to use it themselves

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4
Q

What are the 2 types of market a business can fall into?

A
  • B2B vs. B2C
  • Niche vs. Mass
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5
Q

Define what a niche market is.

A

Products that appeal to a smaller number of customers. Number of sales tend to be lower but prices are often higher. (e.g. Lamborghini )

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6
Q

Define what a mass market is.

A

Products that appeal to a large amount of customers. Number of sales is higher, prices are often lower.

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7
Q

Define Business to Business (B2B)

A

Business to Business is where a product is made by one business and then sold to another business, not directly to the consumer.

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8
Q

Define what a Business to Consumer is (B2C).

A

Business to Consumer is where the business sells its products directly to the people who will be using it.

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9
Q

What is market segmentation?

A

This is where the customers available to the business (the market) are divided into different sections (segments).
The business then decides which segment to target with their promotional activities.

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10
Q

What are the four main marketing segments?

A

-Demographic
-Behavioural
-Psychographic
-Geographical

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11
Q

What is Demographic segmentation?

A

Demographic segmentation involves grouping people by their key characteristics.

It’s the easiest type of segmentation as it is led by data so easy to identify the characteristics.

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12
Q

Give the sub-segments of Demographic segmentation. (9)

A
  • Age
  • Race
  • Religion
  • Gender
  • Family size
  • Ethnicity
  • Income
  • Education level
  • Socio-economic groups
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13
Q

What is Psychographic segmentation?

A

Psychographic segmentation involves grouping customers according to certain lifestyle factors such as their social class and personality.

This can be very difficult for a business to do if they don’t know their potential customers well.

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14
Q

What does Psychographic segmentation include? (4)

A
  • Social class e.g. based on family background,
    wealth and upbringing
  • Attitudes e.g. willingness to take risks, tendency
    to spend or save, importance of status, fashion or opinions of others
  • Lifestyle e.g. hobbies, family, eating preferences
    (for example vegan), holidays
  • Personality characteristics e.g. outgoing, enjoys
    socialising, adventurous, impulsive, cautious
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15
Q

What is Geographic segmentation?

A

This divides customers based on where they live.

It can consider the needs of the customer (e.g. people living in cities will have some different needs to people in the countryside.)

Or a business may consider whether they should only target customers local to them (e.g. a small fish and chip shop).

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16
Q

How does location impact promotional activity?

A
  • Use of local media
  • Whether or not there are competitors nearby
  • Quality of internet
  • Pace of life
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17
Q

What is behavioural segmentation?

A

Behavioural segmentation involves splitting the market based on how customers relate to a product.

This could be how often they buy/use it, their loyalty, what they are looking for from the product.

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18
Q

What are the benefits of market segmentation?

A
  • Advertising can be targeted at specific market
    segments so that advertising spend is more
    effective
  • The most profitable and least profitable
    customers can be identified
  • Least profitable markets can be avoided
  • It becomes easier to identify new products
  • It helps the business improve existing products
    and customer service
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19
Q

What are the 4p’s?

A
  • Product
  • Price
  • Place
  • Promotion
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20
Q

Define what a product is.

A

What the business sells to its customers.

A product is a combination of features (what the product does/is made of) and benefits (what is good for the customer, why they want the product).

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21
Q

Why is it important to get the Price right?

A

Price too low = the business not making much of a profit

Price too high = customers won’t want to buy the product

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22
Q

What methods might be used for promotion?

A
  • TV adverts
  • Billboards
  • Radio adverts
  • Posters
  • Print media (magazines/newspapers)
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23
Q

What is a Product Portfolio?

A

A product portfolio is all the different products a company sells.

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24
Q

What does a product need to be successful?

A
  • Meet customer needs
  • Do what it promises
  • Have appropriate and competitive
    specifications
  • Be visually appealing
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25
Q

What is the product life cycle?

A

The product life cycle describes the stages a product goes through from introduction to withdrawal from the market. These stages typically include introduction, growth, maturity, and decline.

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26
Q

Describe the stages of the product life cycle.

A
  • Development – the product is researched and
    developed. Market research undertaken
  • Introduction – product launched to the market
  • Growth – after promotion and loyalty, sales
    grow (this stage can last for
    weeks/months/years)
  • Maturity – sales still high but start to level out,
    usually due to competition or newer models
  • Decline – sales drop and eventually businesses
    will stop production of that item
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27
Q

What are three strategies for expanding product portfolios?

A
  1. Adding products
  2. Increasing offerings
  3. Diversifying
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28
Q

How can a company expand its product range?

A

Adding products to an existing range by developing new products based on their current ones

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29
Q

How can a company enhance its product range?

A

Increasing their range of products by developing products that are different from their current ones

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30
Q

How does a company diversify its product portfolio?

A

Diversifying involves design and producing brand new products to sell in different markets.

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31
Q

What is penetration pricing?

A

Charging a low price initially to appeal to more customers (‘penetrating the market), before raising the price over time.

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32
Q

What is price skimming?

A

Charging a high price initially to ‘skim off’ profits, before dropping the price later.

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33
Q

What is competitive pricing?

A

Looking at what competitors charge for the same sort of product or service and charging a similar price.

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34
Q

What is cost-plus pricing?

A

Calculating the cost of creating the product or service, then adding on a percentage.

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35
Q

What is premium pricing?

A

Charging a high price to reflect the quality of a product.

36
Q

What are the two types of distribution?

A
  • Physical distribution
  • Online distribution
37
Q

What does physical distribution involve?

A

Involves selling to customers via a traditional ‘bricks and mortar’ store, shop or outlet.

38
Q

What are the advantages of Physical distribution?

A
  • Helps promote products and services through
    personal selling
  • Physical stores are often trusted more than
    online retailers
  • Allows customers to browse, try and
    experience a product
39
Q

What are the disadvantages of Physical distribution?

A
  • Physical stores have significantly higher
    overheads
  • Fewer customers are visiting physical retailers
    in recent times, preferring the convenience of
    online shopping
40
Q

What’s a direct distribution channel?

A

where businesses can sell their products directly to consumers

41
Q

What’s an indirect distribution channel?

A

where businesses sell their products to wholesalers, who then sell their products to retailers who then sell them to consumers.

42
Q

what is a wholesaler?

A

Businesses who buy in bulk from the producer and sells in smaller quantities to the retailer.

43
Q

Why do enterprises use promotion?

A

Enterprises use promotion to communicate with their current and potential customers. This is an important part of how they attract customers.

44
Q

What are the main aims of any promotion?

A
  • Build positive associations with the enterprise
  • Encourage customers to purchase
    products/services
45
Q

What’s the Promotional mix?

A

The methods and mediums an enterprise might use to promote.

46
Q

Name the elements of the promotional mix (6)

A
  • Public relations
  • Advertising
  • Sales promotions
  • Personal selling
  • Social media marketing
  • Direct marketing
47
Q

Define advertising.

A

Advertising is communication used to inform potential customers about products and persuade them to buy the products.

48
Q

Name the forms advertising can take.

A
  • Moving images and videos
  • Print
  • Ambient
  • Digital
  • Audio
49
Q

How can increased advertising investment benefit growing enterprises?

A

Increased advertising investment can benefit growing enterprises by allowing them to reach a wider market, leading to an expansion of their potential customer base and higher sales revenue.

50
Q

What types of products or services are most suitable for moving images and video advertisements?

A

Products or services that might require some sort of demonstration of their features.

51
Q

what are the advantages of Moving images and video advertising?

A
  • High engagement potential
  • Ability to convey emotions and storytelling
  • Wide reach
52
Q

what are the disadvantages of Moving picture and video advertising?

A
  • Costly production
  • Limited targeting capabilities
  • Short lifespan of content
53
Q

What are the advantages of Print advertising?

A
  • Tangible and long-lasting presence
  • Targeted audience based on publication
    demographics
  • Flexibility in design and layout
54
Q

What are the disadvantages of Print advertising?

A
  • Declining readership of print media
  • Limited space for content
  • Inability to convey motion and dynamic content
55
Q

What are the advantages of Ambient advertising?

A
  • High visibility in public spaces
  • Creativity in placement and design
56
Q

What are the disadvantages of Ambient advertising?

A
  • Limited audience reach
  • Lack of audience engagement compared to
    other mediums
57
Q

What are the advantages of Digital advertising?

A
  • Highly targeted advertising with precise
    audience segmentation
  • Measurable results and analytics
  • Cost-effective compared to traditional
    methods
58
Q

What are the disadvantages of Digital advertising?

A
  • Ad blockers and banner blindness can reduce
    effectiveness
  • Potential for ad fatigue and oversaturation
  • Technical issues such as slow loading times
    and compatibility across devices
59
Q

What are the advantages of Audio advertising?

A
  • Ability to reach audience during daily activities
    like driving or working
  • Cost-effective production compared to video
  • Access to captive audience in specific environments like radio or music streaming platforms
60
Q

What are the disadvantages of Audio advertising?

A
  • Lack of visual component may limit impact
  • Limited targeting compared to digital
    advertising
  • Inability to convey visual information
61
Q

What does Public Relations (PR) involve?

A

Involves promoting an enterprise, brand or product/service by placing information about it in the media.

It is different to advertising in that the media is not paid for directly.

PR is all about brand image.

62
Q

Name methods of PR.

A
  • Press releases – an article written by the
    enterprise to share interesting
    news/information
  • Exhibitions – a large event where businesses
    display their goods/services
  • Sponsorship – paying to have brands displayed
    at an event
  • Online PR – using social media to communicate
    the above.
63
Q

What does social media marketing involve?

A
  • Involves websites and apps that allow users to
    share digital content around the world
  • This is increasingly becoming the main way
    businesses of all sizes interact with their
    customers
  • The goal is usually to drive more visitors
    (referred to as ‘traffic’) to their website
64
Q

What is Personal selling?

A
  • This is where a representative of an enterprise
    contacts potential customers directly, and use
    their communication skills/knowledge of the
    product to try to persuade them to make a
    purchase
  • This is a two way process meaning that
    potential customers can ask questions and
    receive more personalised information
  • The sales person would usually be an expert in
    the product they are selling
65
Q

Name 4 methods of personal selling.

A
  • Face to Face
  • Telephone
  • Email
  • Video or web conference
66
Q

What is the salesperson able to do during face to face personal selling?

A

The salesperson is able to:
- listen to the customer
- watch the customers’ body language
- Adjust the message to demonstrate how the
product solves a problem

67
Q

How does the Telephone method of personal selling work?

A
  • Some enterprises use sales teams who make
    phone calls from a call centre to potential
    customers
  • Customers might also phone a call centre with
    an enquiry
  • This method does not allow the salesperson to
    ‘read’ the customer’s body language, however,
    they can identify their tone of voice
68
Q

How does Email personal selling method work?

A
  • Customers receive emails trying to sell them
    products
  • This type of personal selling may take longer than
    face to face methods, but customer can get
    greater detail
  • The salesperson can send potential customers
    attachments with the email, such as guides and
    brochures
  • The salesperson can also include links to other
    websites
69
Q

How does video or web conference personal selling work?

A
  • The salesperson can see the customer, wherever
    they are
  • The salesperson can demonstrate goods via
    camera
  • The salesperson can also send files and links to
    the customer
70
Q

Why do businesses use Direct marketing?

A

Businesses use this to develop repeat custom

71
Q

Name Direct marketing methods.
(5)

A
  • Direct mail – sending letters, leaflets, brochures
    (often referred to as ‘junk mail’)
  • Mail order catalogues – more common in B2B,
    involves sending booklets of their products with
    pictures/information in
  • Magazines – some businesses produce these
    and send out to their customers to let them know
    of new products/offers etc
  • Telemarketing – people that call you and try to sell you things
  • Digital mail – receiving emails/texts with news
    and offers
72
Q

What is sales promotions?

A

Offering discounts/money off products to encourage an increase in sales

73
Q

What can sales promotion be used to do?

A
  • Attract new customers
  • Get customers to buy more products per sale
    (e.g. 3 for 2)
  • Quickly sell out of season stock
74
Q

Name sales promotion methods.(5)

A
  • Coupons – small card offering a discount or free
    gift. Tries to encourage repeat business
  • Competitions – the chance of winning something
    when you buy a product. Could be an ‘instant win’
    prize or being entered into a prize draw
  • Money off/discount – selling items for a reduced
    price e.g. 50% off
  • Loyalty schemes/incentives – building up towards
    a free item the more you visit a business
  • Free samples – giving customers a chance to try
    a product without having to buy it first
  • Buy one, get one free – essentially giving away a
    free product
75
Q

Why would businesses use Multichannel marketing?

A

Businesses will often use more than one method of promotion to achieve maximum impact

76
Q

What is Above the line promotion (ATL)?

A

Any form of promotion that is paid for which will often target a wide audience of potential customers

77
Q

What are the main benefits of Above the line promotion (ATL)?

A
  • Brand awareness
  • Attention grabbing
  • Reach (how many people see it)
78
Q

What is Below the line promotion(BTL)?

A

Usually targeted at smaller groups of customers and the business can have direct control over it

Includes interacting with customers through social media, direct marketing and personal selling

79
Q

What are the main benefits of Below the line promotion (BTL)?

A
  • Focuses on segments or niche markets
  • Can measure impact easily
  • Helps to build relationships
80
Q

What are the factors influencing the choice of promotional methods?
(5)

A
  • Cost
  • Appropriateness for product or service
  • Speed, accessibility of information and ease of
    reaching the market
  • Activities of competitors
  • Experience of the entrepreneur
81
Q

What is a promotional budget?

A

A promotional budget is a set amount of money an enterprise allocates to spend on promotional activities in a given time period

82
Q

What are the two things businesses are largely concerned with?

A
  • Brand image
  • Reputation
83
Q

What does brand image include?

A
  • Customer perception of quality, value, variety and
    customer service
  • How the business is seen by their customers in
    terms of behaviour
84
Q

Define Reputation.

A

Concerned with the actions of the business and how this can affect public opinion.

85
Q

What does reputation include?

A
  • Whether they are environmentally friendly
  • Ensuring their marketing strategies are ethical
    and avoiding anything controversial
  • Responding to customer service issues quickly
    and effectively
  • Getting involved in the local community through
    help/donations/prizes

Business for me🌼 (4 decks)

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