Marketing: Influences on Marketing & Marketing Process Flashcards
what are the 5 different psychological influences
- perception
- motives
- attitudes
- personality and self-image
- learning
define perception
the process which people select, organise and interpret information to create meaning
define motives
the reason an individual does something
eg. comfort, health, safety, ambition, pleasure etc
define attitudes
a persons overall feeling about an object or activity
define personality and self image
the behaviours/characteristics of a person and how a person views themselves
define learning
a change in customers behaviour caused by information and experiences- may encourage brand loyalty
why is understanding psychological influences important for the business
they can predict trends and customer awareness
what is the effect of understanding psychological influences
allows marketers to create more effective and profitable strategies to appeal directly to the customers motives and behaviours
what are the four sociocultural influnces
- socioeconomic status/social class
- culture/subculture
- family and roles
- reference/peer groups
define socioeconomic status/social class
occupation, incomes and education level of an individual
what will a high socioeconomic status/social class purchase
buy prestigious products and wants eg. prada bag
what will low socioeconomic status/social class purchase
cheap products, and more necessities
eg. kmart bag
what is the effect of socioeconomic status/social class on a business’ marketing
a business must align their products (type, quality and quantity,price) to their target market
define culture
the learned values, beliefs, behaviours and traditions shared by a society
define subculture
group of individuals with similar qualities that may distinguish them from the broader societal culture
what effect does culture and subculture have on a business
adapt to changes in cultural values to appeal to their target markets
eg. cafes and restaurants often have vegetarian/vegan alternatives on their menu
define family and roles
everyone occupies different family roles, influencing their buying behaviour.
it refers to who is responsible for making certain purchasing decisions in the family
define reference or peer groups
group of people with whom a person closely identifies, adopting their attidues, values and beliefts
one person influences their peers choices
how does reference/peer groups affect businesses
marketing managers should aim to be able to create trends through reference groups, leading to higher brand awareness and sales
what is the effect of economic influences on a business
number of competitors
cost of inputs
sales volume
what is the effect of economic influences on customers
their willingness and ability to spend money
what do businesses do during a boom
maximise production and promotions to increase market share as customers are more willing to purchase
how should a business ensure the survive a recession
create good quality, well priced products
what are the two ways government influnces affect customer spending habits
- indirectly=economic policies
- directly=laws and regulations
what is are two examples of economic policy
higher taxes when there is too much spending (creating a recession)
or lowering interest rates so people spend more (creating a boom)
what are the three major regulatory laws and bodies
- Competition and Consumer Act 2010 (commonwealth)
- Sale of Goods Act 1923 (NSW)
- The Fair-Trading Act 1987 (NSW)
what is the purpose of Australian Consumer Laws
protecting the rights of consumers and identify the responsibilities of businesses. they restrict how businesses sell products by preventing them from acting dishonestly
what is the Australian Consumer Law (ACL) 2011
national law ensuring customers have the same rights, and businesses are subject to the same regulations
what is the ACL governed by
- Australian Competition and Consumer Commission (ACCC)
- Australian Securities and Investment Commission (ASIC)
what is the role of Competition and Consumer Act (CCA) 2010
protects customers against unfair practices eg. misleading customers through advertising
it also encourages competition between business, providing choice and stimulating economic growth
what happens if a business breaches consumer law
refund/replace customers items, may be fined, reputation is damaged
what is deceptive advertising
a false impression of a product and what it can do, causing customers to be mislead
what is an example of deceptive and misleading advertising
a business lying about how environmentally friendly they are, or using green/brown packaging to make it appear more eco-friendly
known as greenwashing
what is dishonest advertising
ads including misleading words or claim a product can do something it cant
what is bait and switch advertising
a product being advertised at a lower price, but are sold higher-priced products when in the store
what is price discrimination
setting a different price for products in different markets.
when is price discrimination legal
when transport or production costs are higher in different markets
what are implied conditions
unspoken/unwritten terms of a contract. these conditions are assumed to exist regardless whether they were specifically mentioned.
eg. a cellphone being able to text/make calls
what are consumer guarantees
a comprehensive set of rights and remedies for defective goods and services
what is a warranty
a businesses promise to fix any defects in the goods or services they offer
does a business legally have to provide a warranty
no, but if they do they must uphold it
can a warranty provide a competitive advantage for a business
yes
how can ethical influences impact marketing
society has changed its focus to be more ethical, so a business being ethical is a good competitive advantage over others, which marekting would obviously market
what is ethical behaviour
behaviour exceeding legal requirements.
legal behaviour can be unethical
what are some ideas that may be considered unethical
materialism
stereotypes
invasion of privacy
what is the Austrlaina Association of National Advertisers Code of Ethics 2012
a code of ethics that businesses must follow, and if they dont customers complain to the Advertising Standards Burea (ASB)
what are benefits of ethical behaviour
positive publicity
customer loyalty
higher sales/profits as it attracts customers
is good taste in advertising subjective or objective
subjective
how should marketers make sure that they have good taste in advertising
by ensuring advertising is sensitive to the beliefs and values of all people
why is it important to be truthful and accurate in advertising
to avoid being socially responsible for deceiving customers
what are some ways a business may be untruth/inaccurate in advertising
concealing facts
vague statements
exaggerated claims
what is a concealed fact
information purposely excluded from an advert
what are vague statements
words or promises so unclear that most people wont understand what is being said
what is exaggerated claims
claims that most people wouldnt perceive as factual, but are still considered misleading
why is marketing products that may damage health a negative thing for a business
there are government regulations and societal outlooks related to advertising harmful products
eg. fast food adverts arent allowed to be played during childrens television programs
why is engaging in fair competition a positive thing
it provides customers choice when it comes to price and quality of goods and services.
if fair competition was restricted, it may lead to businesses pushing up their prices and reduce quality of products
to maintain competition, the Competition and Consumer Act 2010 deters anti-competive behaviours such as…?
cartel conduct
misusing market power
predatory pricing
what is cartel conduct
businesses working together rather than competing
what is misusing market power
large corporations taking advantage of their position
what is predatory pricing
setting extremely low prices to force weaker competitions out of the market
what is sugging
selling under the guise of a survey
is sugging legal
yes
why is sugging unethical
intentionally misrepresents the purpose of an activity (surveying) to generate sales
what is the marketing plan
document listing activites aimed at achieving marketing objectives
what does the marketing plan provide
a template for future action aimed at reaching business goals. must be realistic and achievable
what are the steps of the marketing process
- situational analysis
- market research
- establishing market objectives
- identifying target market
- developing marketing strategies
- implementtation, monitoring and controlling
what are the two methods of situational analysis
- SWOT
- product life cycle
what does swot stand for, and are they internal or external
S= strengths (internal)
W=weaknesses(internal
O=opportunities (external)
T=threats(external)
what are the four stages of a product life cycle
- introduction
- growth
- maturity
- decline/post maturity
does the stage of its life cycle a product is in affect the type of marketing strategies used
yes, greatly
define market research
process of gathering, recording and analysing data to solve a specific marketing problem
what does the insight gained from marketing research provide marketers to make informed decisions about
which prices to change
what forms of promotion to use
what is the purpose of market resarch
how in demand a product is
competition
target market
market opportunities
how does knowing demand for a product effect a business
it provides insight into how much a business can charge for a product before customers will stop buying it
how does knowing a business’ competitors effect a business
by knowing what marketing strategies competitors are using, they can differentiate themselves and gain an advantage
what effect does having a defined target market have on a business
it leads to the business understanding its customers needs and wants,
leading to effective promotional campaigns and price points, along with products its customers will want to buy
what effect does knowing market oppurtunities have on a business
if a business meets the needs before competitors do, theyll gain an advantagw
what are marketing objectives
realistic and measurable goals for a business to achieve through their marketing plan
what are the three main marketing objectives
increasing market share
expanding product mix
maximsing customer service
what are SMART goals
s=specific
m=measurable
a=achievable
r=realistic
t=time/timeframe
how do you increase market share
develop a large range of products to satisfy a large range of customers
what is the product mix
the set of products a business makes available to its customers
how do you expand the product mix
make a wider range of products
what is the effect of good customer service
customers thinking positively about the business, creating a growing customer base and repeat purchases
how do you maximise customer service
ensure quality customer service takes place before, during and after a sale
ensuring every employee has good customer service, from finance to marketing
what are the three marketing approaches
mass marketing approach
market segmentation approach
niche marketing approach
what is a target market
group of customers at which a business aims to sell its products
what are the three reasons selecting a target market is beneficial
- marketing resources are used more efficiently; leading to cost effective and efficient strategies
- market research data is collected more efficiently; allowing the business to make comparisons and monitor trends
- to better understand consumer buying behaviour
what is the primary target market
the market segment that marketers target MOST of their resources towards
what is the secondary target market
a smaller and less important market segment that the business sellsto
what is mass marketing
a business targeting a large range of customers that have similar needs and wants (basically everyone)
what is market segmentation
when the total market is divided into subgroups who share one or more similarites
what is a niche market
a very small/narrow target market
what are marketing strategies
plans of action that are developed to achieve marketing objectives using the marketing mix
what is the marketing mix (four Ps)
Product
Price
Promotion
Place
if one of the “Ps” changed, would it change the other Ps
ye
what are the main factors that determine the marketing mix
product life cycle
business environment eg. environmentally friendly products
define implementation
the process of putting marketing strategies into operation
(how, where and when things can be achieved)
define monitoring
the process of measuring ACTUAL performance against PLANNED performance
define controlling, and say what is a key step in comparing this
comparing planned performance against actual performance, and taking CORRECTIVE ACTION to ensure objectives are achieved.
allocating KPIs (key performance indicators) in which actual performance can be compared agianst
what are the two steps in a financial forecast
- cost estimate- how much a business will spend eg. payroll, rent
- revenue estimate- how much a business expects to profit
is a cost or revenue estimate harder to accurately predict
revenue, due to changes in external environment eg. economy, pandemics
