Marketing - Influences Flashcards
what are the three influences on marketing
- factors influencing consumer choice
- consumer laws
- ethical influences
define consumer choice
the decisions and actions of customers when they search for, evaluate, select and purchase goods and services
what are the 4 factors influencing consumer choice
PEGS - psychological, economic, government, sociocultural
define psychological factors influencing consumer choice
factors within an individual that affect their buying behaviour
what are the 5 psychological factors influencing consumer choice
perception, motives, attitudes, personality and self image, learning
define sociocultural influences on consumer choice
forces exerted by other/ groups that affect customer behaviour
what are the 4 sociocultural influences on consumer choice
social class, culture and subculture, family and roles, reference groups
define economic influences
characteristics of a boom and how it influences mktg managers
a boom is a period of low unemployment and rising incomes - business and customers are optimistic about the future
- businesses increase their production lines and attempt to increase market share by intensifying their promotional efforts
- customers are willing to spend because they feel secure about their jobs and source of income
characteristics of a recession and how it influences mktg managers
a period of high unemployment and income falls
- businesses and customer lack confidence in the economy
- low spending levels and customers become more price conscious
- marketing plans during a recession should address the value and usefulness of a product as well as concentrate on maintaining existing market share
how do economic influences impact consumer choice
customers are more likely to spend during booms ______
identify 4 stages of a the business cycle
expansion, peak, recession, trough
define government influences
economic policy measures to influence the level of economic activity - depending on the prevailing economic conditions, the government will put in place policies that expand or contract the level of economic activity. These policies directly or indirectly influence business activity and customers’ spending habits, and therefore will influence the marketing plan.
how do government influences impact consumer choice - and in turn, the mktg plan of a business?
The influence of government regulations has a more direct and immediate impact on the marketing plans of a business. Regulatory forces consist of laws (statutes) and regulatory bodies that can influence business behaviour. Such regulatory forces exert a significant influence over the marketing activities of businesses because the breaking of these laws or regulations may result in financial penalties
define consumer laws
(in regards to australia)
what is the australian consumer law
a single national consumer law introduced in 2011 that applies in the same way to all australian consumers and businesses regardless of where the business operates or where consumers shop
what is the competition and consumer act (2010) and what are its major purposes?
a piece of legislation established under ACL to
- protect consumers against undesirable practises eg. misinterpretation of the contents of the products or their place of production and misleading and deceptive advertising
what are the 4 main thingys under the consumer laws dot point
- deceptive and misleading advertising
- price discrimination
- implied conditions
- warranties
what is deceptive and misleading advertising and provide and example
general rule = when businesses make any representation (direct or implied) the business must ensure that the representation is not untrue or false and is not likely to mislead the type of consumers at which the advertisement is targeted
- even though it is illegal, a number of methods are still used by some businesses
- eg. bait and switch advertising, fine print and qualifications, comparative advertising, country of origin, prize giveaways and competitions
what is price discrimination and provide and example
= the setting of different prices for a product in seperate markets
- used based on the sellers belief that customers in certain groups can be asked to pay more or less based on certain demographics or on how they value the product or service in question eg. uber
what are implied conditions and provide an example
= the unspoken and unwritten terms of a contract - assumed to exist regardless of where they were especially mentioned or written into a contract
- consumer guarantees introduced under the CCA 2010 which provides consumers with rights to certain remedies from retailers and manufacturers where goods purchased fail to comply with the consumer provisions in the ACL
- consumers can claim a remedy from the retailer if the products/ services do meet any one or more of the consumer guarantees
what are warranties and provide an example
= promises made by the business that they will correct any defaults in the goods they produce or the services they deliver
- assures customers that the business has confidence in the quality of its products and will repair or replace any faulty items
- in recent years, govt legislation has made it necessary for businesses to state clearly and simply, the terms and conditions of the warranty
define ethical influences
what are some ethical criticisms of marketing?
- creation of needs (materialism)
- use of stereotyping - prevalent in adversing and doesn’t fully represent realty
- product placement - the inclusion of advertising in entertainment eg. an actor in a tv show or movie driving in a show or a movie driving a mercedes benz or talking on an iphone
