Marketing Function Flashcards
Meaning of marketing
Activities A business undertakes to promote buying of a good or service
Role of marketing
- identifies needs of customers and satisfies them
- shares information from customer with production function to meet expectations of customers
- promote the goods and services to potential customers
- Provide feedback from customer about good and services
Standardization and grading
• Business ensures all products are produce to same standard
• Standard of products shouldn’t be difterent
Storage
Goods are stored at a facility for safekeeping
The bridge between production and consumption
Transport
Moving the product from one place to another
Ensures final product reaches consumer
Financing
Obtaining funds to ensure the business can operate in pursuit of its goals
Acquired from investors
Risk bearing
Investing into a business opportunity is a always a risk
First risk bearers are entrepreneurs and shareholders
Buying & selling
Act of providing goods and services in exchange for money
Integral part of business activity
Convenience Goods
Cheap and customers purchase it with little thought
Bread,milk,drink
Shopping goods
Consumers spend time and effort going to various shops to ensure they’re getting the best value for their money
Cars, TV, clothes
Speciality Goods
Goods with a specific name brand
Jewellery,branded clothes
Services
Non tangible and are rendered by a service provider to a customer
Unsought Good
Goods customers wouldn’t think of unless the need for them came up
Masks, funeral goods, fire extinguishers
Importance of product development
Used to design goods suitable for customer needs
If not suitable for target market , demand will be little
Allows business to remain competitive and stay on the look out for new improvements
Differentiates products from competitors
8 steps in product design process
- Generate ideas- b must identify opportunities the competitors haven’t done yet
- Evaluate ideas- seeing if there’s a need in the market and if it’s profitable for business
- Test concept- market will be tested
- Business analysis- process of metrics to evaluate products success
- Market testing- Sample is given to market and responses are used to make adjustments
- Technical implementation- process are put into production planning and control process
- Commercialisation- product is launched, advertised and marketed
- Products review & price adjustments- development of product’s efficiency is review
Product packaging
Type of packaging depends on the product
Should have information of the product
Can be a marketing tool if packaging is eye catching
Can have trademark of product
Purpose of packaging
Physical protect the product from harm
To identify product
Promote marketing of product
Prevent tampering or theft
Resale packaging
Retailers buy products in bulk from suppliers
Immediate use packaging
Needs to be cheap bc it’s gonna be thrown away once contents are finished
Double use packaging
Packaging is reusable and not only for original contents
Kaleidoscopic
Details change to promote sport events
Kaleidoscopic
Details change to promote sport events
Speciality Packaging
Packaging needs to suit the product
Combination Packaging
Products usually bought together are packaged together
Meaning of trademarks
Name,symbol,logo that differentiate business from competition
Importance of trademarks to business
Establishes identity of product
Registered trademark protects product from competition
Well known trademark makes brand instantly recognisable
Business uses it to market product
Importance of a trademark for customer
Creates a sense of security and consistency for them
Promotes loyalty towards trademark
Represents the standard of quality and price
Customer is likely to purchase new products from a well known brand
Requirements of a good trademark
Must be attractive to consumers
To suit product
Must have business name and contact details of manufacturer
Different from competitors
Meaning of price
Needs to be affordable for customers and still cover costs and contribute to profit
Importance of pricing
If too high , the sales will decrease
If too low , consumers might think the quality is poor
Makes provision for transport cost
Takes VAT into account
