Marketing Concepts and Developments Flashcards
What does Product refer to in the Marketing Mix?
A good or service that can be offered to a market for attention, acquisition, use or consumption. It will satisfy a particular want or need.
How can Product be broken down into three key areas?
Core Product - overall benefit of the product
Actual Product - brand and quality of product being purchased
Augmented Product - anything over and above the purchase such as delivery
What does Price refer to in the Marketing Mix?
In order to make a profit businesses must sell their product at a higher price than cost
What different approaches to price can a business take?
Cost Plus - a percentage is added to cost
Going Rate - prices at market rate
Price Skimming - charging a higher price; skimming off the customer
Penetration Pricing - charging a lower price to gain market strength
Discrimination - charging different prices to different customers (seasonal demand)
What does Place refer to in the Marketing Mix?
Mechanism which goods/services are transferred from manufacturer or producer, to the consumer. Also known as Channel or Distribution.
What does Promotion refer to in the Marketing Mix?
Personal Selling, Advertising (paid), Sponsorship and Direct Marketing
What are the three P’s of the Services Marketing Mix?
People - perception of a service can be based on the staff who are interacted with
Process - system used to assist the staff in delivering the service
Physical Evidence - buildings, uniform, vehicles
What is the aim of Relationship Marketing?
The aim of Relationship Marketing is to maximise customer retention and satisfaction through two-way communication, recognising the long-term value of building customer relationships through dialogue.
What are the five stages of Lancaster and Withey’s Consumer Decision Making Model?
- Problem recognition
- Information search
- Evaluation of alternatives
- Purchase decision
- Post-purchase evaluation
What is Post-Modern Marketing?
Focus on giving the customer a customised and personalised experience to ensure they receive marketing messages in a form they prefer.
What are the three categories of Consumer Buyer Behaviour?
Cognitive Paradigm - purchase is an outcome of rational decision making.
Learned Behaviour - emphasises the importance of past purchases
Habitual Decision Making - habit and brand loyalty
What is Social Marketing?
The application of marketing techniques to achieve non-commercial goals
What are the Four I’s of Social Media?
- Individualise - that customer’s interests and preferences into account
- Involve - engaging the customer
- Initiate - encourage customer-generated content
- Integrate - activities should be integrated into the customer’s life
What are the three approaches to targeting a market?
Undifferentiated Marketing - aiming a single message at the entire market
Concentrated Marketing - aiming a single, ideal message at a segment of the market
Differentiated Marketing - different messages, each aimed at a particular segment of the market
Who are the people involved in the purchasing decision?
Initiators - start the buying process
Influencers - influence the process with technical expertise
Buyers - raise orders and approve payments
Users - use the purchased items
