Marketing Content Flashcards
Define marketing
Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services
Define profit maximisation
Profit Maximisation occurs when there is a maximum difference between total revenue coming into the business and total costs being paid out
Outline what a marketing plan is
Marketing Plan is a document that lists activities aimed at achieving particular marketing outcomes in relation to goods or services
Recall the marketing approaches throughout history
Marketing took on more responsibilities as businesses became more complex:
- Production approach
- Sales approach
- (Societal) Marketing approach
Define discretionary income
Discretionary Income is the disposable income that is available after an individual has purchased the basic necessities
Define corporate social responsibility
Corporate Social Responsibility (CSR) is the open and accountable business actions based on respect for people, community/ society and the broader environment –> It involves businesses doing more than just complying with the laws and regulations
Define industrial market
Industrial Market includes industries and businesses that purchase products to use in the production of other products or in their daily operations
Define intermediate market
Intermediate Market consists of wholesalers and retailers who purchase finished products and resell them to make a profit
Define consumer market
Consumer Market is a market that consists of individuals — that is, members of a household who plan to use or consume the products they buy
Define resource market
Resource Market consists of those individuals or groups that are engaged in all forms of primary production
Define mass market
Mass Markets is where the seller mass-produces, mass-distributes and mass-promotes one product to all buyers
Define niche market
Niche Market is a narrowly selected target market segment
Define customer choice
Customer choice is the decisions and actions of customers when they search, evaluate, select, and purchase goods or services
Recall aspects of psychological factors
The aspects of psychological factors are:
- Attitude
- Brand Loyalty
- Motives
- Personality
- Self-Image
Recall aspects of sociocultural factors
The aspects of sociocultural factors are:
- Culture
- Social class
- Relations –> Family and Friends
Recall under which law is deceptive and misleading advertising illegal
Under the Competition and Consumer Act 2010 (Cth), deceptive and misleading advertising is illegal
Recall some forms of deceptive and misleading advertising
Forms of deceptive and misleading advertising:
- Bait advertising
- Comparative advertising
- Environmental ‘green’ claims
- Fine print and qualifications
- Premium claims
- Prize giveaways
Define price discrimination
Price Discrimination is the setting of different prices for a product in separate markets
Recall what price discrimination violates legally and under what circumstances
Price discrimination may violate the Competition and Consumer Act, which prohibits misuse of market power
Define implied conditions
Implied conditions are the unspoken and unwritten terms of a contract
Recall the implied conditions that the ACL provides to consumers
ACL demands all sold products are – Acceptable quality products that are safe, lasting and with no faults, look acceptable and do all the things someone would normally expect them to do
Define warranty
A warranty is a promise made by a business that it will correct any defects in the goods they produce or services they deliver
By law, businesses are required to offer a refund when ___
A business is required by law to offer a refund if the products provided:
- Are faulty
- Do not match the description or a sample
- Fail to do the job they were supposed to do
Define advertising
Advertising is a paid, non-personal message communicated through a mass medium
Define puffery
Puffery are the exaggerated claims used for promotional purposes, that no reasonable person would take as factual
Recall examples of prohibited anti-competitive conduct
Prohibited business decisions:
- Anti-competitive agreements
- Cartel
- Exclusive dealing
- Mergers and acquisitions
- Misuse of market power
- Resale price maintenance
Define cartel
Cartel is when at least two businesses that normally would be in competition with each other agree to act together
Define exclusive dealing
Exclusive dealing is when one person or business trades with another and then imposes restrictions on them
Define anti-competitive agreements
Anti-competitive Agreements are contracts or arrangements containing provisions that substantially lessen competition in a market
Define resale price maintenance
Resale Price Maintenance is when a supplier forcefully sets the price at which retailers will sell the products they supply them
Define sugging
Sugging is the act of ‘selling under the guise of a survey’; a sales technique disguised as market research
True or False. Sugging is not illegal, only unethical
True. Sugging is not illegal but raises ethical issues including invasion of privacy and deception
Define situational analysis
A situational analysis must be undertaken based on the market research to gain a precise understanding of the business’s current position
Define SWOT analysis
A SWOT analysis involves the identification and analysis of the internal strengths and weaknesses and the external opportunities and threats of the business
Recall the product life cycle
Introduction → Growth → Maturity → Decline
Define market research
Market Research is the process of systematically collecting, recording, and analysing information concerning a specific marketing problem
Define primary data
Primary Data is the facts and figures collected from original sources
Define secondary data
Secondary Data is the information that has already been collected by some other person or organisation
Recall the methods to gather primary data
The 3 methods to gather primary data are:
- Survey
- Observation
- Experiment
Recall the role of Ad Standards
The role of Ad Standards is to ensure that the Australian Association of National Advertisers (AANA) Code of Ethics 2012 is followed
Recall the criticism of Ad Standards
Ad Standards is a self-regulation system and is widely considered to lack the authority to manage the complaint resolution process without bias
Define test marketing
Test Marketing is a specific form of experiment method where the experiments are carried out in the field
Recall the types of secondary data
Types of secondary data:
- Internal data
- External data
Define statistical interpretation analysis
Statistical Interpretation Analysis is the process of focusing on the data that represents the average, typical or deviations from typical patterns
Define market objectives
Market Objectives are realistic and measurable goals to be achieved through the marketing plan
Differentiate between business goals and market objectives
The marketing objectives should be closely aligned to the overall business goals, but more customer-oriented than the goals for the entire business
Define market share
Market Share is the business’s share of the total industry sales
Define product mix
Product Mix is the total range of products offered by a business
Define customer service
Customer Service is how well a business meets and exceeds the expectations of customers in all aspects of its operations
Define target market
Target Market is a group of present and potential customers to which a business intends to sell its products
Define mass marketing approach
Mass Marketing Approach is a marketing approach that seeks a large range of customers
Define market segmentation
Market Segmentation occurs when the total market is subdivided into groups of people who share one or more common characteristics
Define marketing mix
Marketing Mix refers to the combination of the four elements of marketing, the four Ps — product, price, promotion and place — that make up the marketing strategy
Define product (marketing mix)
The Product refers to features, such as the product’s quality, packaging/labelling, design, brand name, guarantee and warranty, and exclusive features
Define price (marketing mix)
The Price refers to the price and pricing methods and strategies and the interaction between price and quality
Recall the pricing methods
Pricing Methods are:
- Cost-based
- Market-based
- Competition-based
Define cost-based pricing method
Cost-based pricing method is a pricing method derived from calculating the total cost of producing or purchasing a product and then adding a mark-up for profit
Define market-based pricing method
Market-based pricing method is a pricing method of setting prices according to the interaction between the levels of supply and demand — whatever the market is prepared to pay
Define competition-based pricing method
Competition-based pricing method is a pricing method that is chosen in relation to competitors
Define promotion (marketing mix)
The Promotion refers to the methods to be used by a business to inform, persuade and remind customers about its products
Recall types of promotion
Types of promotion include:
- Advertising
- Personal selling
- Publicity
- Public relations
- Relationship marketing
- Sales promotion
Define place (marketing mix)
The Place, more suitably named distribution but is named place to suit the theme of ‘P’, deals with the channels of distribution, the number of intermediaries, and the geographical spread of the distribution of the product
Define implementation
Implementation is the process of putting marketing strategies into operation
Define monitoring
Monitoring is the process of measuring actual performance against planned performance
Define controlling
Controlling involves the comparison of planned performance against actual performance and taking corrective action to make sure the objectives are attained
Define financial forecast
Financial Forecast is the business’s predictions about the future
Recall the steps to develop a financial forecast
The steps to develop a financial forecast are:
- Revenue estimate
- Cost estimate
Define key performance indicator
Key Performance Indicators are the means by which a business can measure its performance and evaluate the degree to which it is achieving its objectives
Define sales analysis
Sales Analysis is the comparison of actual sales with forecast sales to determine the effectiveness of the marketing strategy
Define market share analysis
Market Share Analysis is the comparison of sales with competitors to determine the effectiveness of the marketing strategy and the uncontrollable external factors
Define market profitability analysis
Marketing Profitability Analysis is when the business breaks down the total marketing costs into specific marketing activities
Define return on investment
Return on investment (ROI) measures how much revenue a marketing campaign is generating compared to the cost of running that campaign
Recall the types of market segmentation
Types of market segmentation include:
- Behavioural
- Demographic
- Geographic
- Psychographic
Define product/service differentiation
Product/service Differentiation is the process of developing and promoting differences between the business’s products or services and those of its competitors
Define product/service positioning
Product/service Positioning is the technique in which marketers try to create an image or identity for a product compared with the image of competing products
Define total product concept
Total Product Concept is the tangible and intangible benefits (attributes) a product possesses
Define brand
Brand is a name, term, symbol, design, or any combination of these that identifies a specific product and distinguishes it from its competition
Define brand name
Brand Name that part of the brand that can be spoken
Define trademark
Trademark signifies that the brand name or symbol is registered and the business has exclusive right of use
Define brand symbol or logo
Brand Symbol or Logo is a graphic representation that identifies a business or product
Recall the types of brands
Types of Brands:
- Manufacturer’s brand
- Private or House Brand
- Generic Brand
Define manufacturer’s brand
Manufacturer’s Brand is a brand owned by a manufacturer
Define private or house brand
Private or House Brand is a brand that is owned by a retailer or wholesaler
Define generic brand
Generic Brands are products with no brand name at all
Define price leader
Price Leader is a major business in an industry whose pricing decisions heavily influence the pricing decisions of its competitors
Define bundle pricing
Bundle Pricing is where customers gain a ‘package’ of goods and services in addition to the tangible good they purchased
Define price skimming
Price Skimming is when a business charges the highest possible price for the product during the introduction stage of its life cycle
Define price penetration
Price Penetration is when a business charges the lowest price possible for a product or service so as to achieve a large market share
Define loss leader
Loss Leader is when the business sells a product at or below cost price
Define price points
Price Points is when products are sold at only certain predetermined prices
Define prestige or premium pricing
Prestige or Premium Pricing is a pricing strategy where a high price is charged to give the product an aura of quality and status
Define advertising media
Advertising Media refers to the many forms of communication used to reach an audience
Define personal selling
Personal Selling are the activities of a sales representative directed to a customer in an attempt to make a sale
Define relationship marketing
Relationship Marketing is the development of long-term and cost effective relationships with individual customers
Define loyalty program
Loyalty Program is a rewards-based program offered by a business to customers who frequently make purchases
Define sales promotion
Sales Promotion is the use of activities or materials as direct inducements to customers
Define publicity
Publicity is any free news story about a business
Define public relations
Public Relations (PR) are activities aimed at creating and maintaining favourable relations between a business and its customers
Define distribution channels
Distribution Channels are the routes taken to get the product from the factory to the customer
Recall the distribution channels
- Producer to consumer
- Producer to retailer to consumer
- Producer to wholesaler to retailer to consumer
- Producer to agent to wholesaler to retailer to consumer
Recall the types of non-store retailing
- Electronic-commerce (E-commerce)
- Mobile-commerce (M-commerce)
Recall the types of channel choice
- Intensive distribution
- Selective distribution
- Exclusive distribution
Define physical distribution
Physical Distribution are all those activities concerned with the efficient movement of the products from the producer to the customer
Recall the extended marketing mix and explain why it is an extension
Intended for services:
- People
- Processes
- Physical Evidence
Define global branding
Global Branding is the worldwide use of a name, term, symbol or logo to identify the seller’s products
Define standardised approach (to global markets)
Standardised Approach is a global marketing strategy that assumes the way the product is used and the needs it satisfies are the same the world over
Define customised approach (to global markets)
Customised Approach is a global marketing strategy that assumes the way the product is used and the needs it satisfies are different between countries
Define global pricing
Global Pricing is how businesses coordinate their pricing policy across different countries
Recall the types of global pricing
Types of global pricing methods:
- Customised
- Market-customised
- Standardised
Define competitive positioning
Competitive Positioning relates to how a business will differentiate its products
Recall the physical distribution issues
Physical Distribution Issues are:
- transport
- warehousing
- inventory
Identify the extended marketing mix
Extended marketing mix:
- People
- Processes
- Physical evidence
Define people (extended marketing mix)
People is the quality of the interactions in the delivery of the service
Define processes (extended marketing mix)
Processes are the flow of activities in the delivery of the service
Define physical evidence (extended marketing mix)
Phsycial evidence is the physical attributes of the delivery of service - location, logo, website, and signage
Identify common marketing objectives
Marketing Objectives:
- Increasing market share
- Expanding product mix
- Customer service
Benefits of branding
Benefits:
- Repeat sales
- Brand loyalty
