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MAN 132 > Marketing management > Flashcards

Marketing management Flashcards

1
Q

Definition of marketing

A

Management tasks and decisions directed at successfully meeting opportunities and threats in a dynamic environment

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2
Q

What does the definition of marketing recognize

A
  • Organizations must focus on meeting customer needs
  • The external marketing environment is ever-changing
  • Both the community and society must be considered in marketing objectives
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3
Q

Evolution of market thought

A

Organizations have changed the way they think about marketing over time:

  • Operation-orientated management
    (post Industrial Revolution)
  • Sales-oriented management (1930 – 1950)
  • Marketing-oriented management
  • Consumer-oriented management
  • Strategic approach to marketing
  • Relationship marketing
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4
Q

Operation-orientated management
(post Industrial Revolution)

A

Organizations focused on the capabilities of themselves rather than on the needs of the market

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5
Q

Sales-oriented management (1930 – 1950)

A
  • Mass production of consumer goods
  • Focus was on selling rather than on marketing
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6
Q

Marketing-oriented management

A
  • Need to understand market needs
  • Functional departments working together in an integrated way to meet market needs
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7
Q

Consumer-oriented management

A
  • Firms orientated to changing customer needs
  • Market research becomes more important
  • Involved branding, packaging, product positioning
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8
Q

The strategic approach to marketing

A
  • Monitoring the dynamic external environment
  • Increased competition due to customers being better informed
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9
Q

Relationship marketing

A
  • Establishing long-term relationships with people and institutions
  • Cooperative marketing alliances
  • Customer relationship marketing
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10
Q

Four principles of the marketing concept

A
  • The principle of profitability
  • The principle of consumer orientation
  • The principle of social responsibility
  • The principle of organizational integration
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10
Q

The marketing concept

A

The philosophy by which the marketing task is performed

It directs all marketing decisions about:

  • Products
  • Distribution methods
  • Marketing communication
  • Price determination
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11
Q

The principle of profitability

A

The long-run maximization of profitability rather than sales

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12
Q

The principle of consumer orientation

A

Focus is on the satisfaction of customer needs within the constraints of the resources of the business

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13
Q

The principle of social responsibility

A

Responsibility of the firm to the community within which marketing takes place e.g. job creation projects

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14
Q

The principle of organizational integration

A

Organizational functions need to work together in an integrated way to achieve marketing objectives

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15
Q

Definition of market research

A

Information that is needed to manage a business effectively and to make good strategic marketing decisions

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16
Q

Why is market research important

A

All the activities and decisions of marketing management are focused on the demands of the market

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17
Q

What is the role of market research

A

Information needs to:

  • Increase understanding of relevant market segments
  • Be relevant to planning and controlling
  • Help in decision-making.
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18
Q

Types of markets

A
  • The consumer market
  • The business market
  • The resale market
  • The government market
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19
Q

The consumer market

A
  • B2C marketing
  • Advertising an important marketing tool
  • CRM technologies increasingly used
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20
Q

The business market

A
  • B2B marketing
  • Personal selling an important marketing tool
  • Development of personal relationships with business buyers
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21
Q

The resale market

A
  • Marketing to re-sellers such as retailers
22
Q

The government market

A
  • State Institutions
  • State-Owned-Enterprises (SOEs)
  • Purchasing a tender-based process
23
Q

Steps to follow when segmenting a market

A
  1. Identify the needs
  2. Group needs into homogenous subgroups
  3. Select target markets
  4. Position the product / service for the selected target market
24
Q

Step 1 : Identify the needs

A

What needs does the buying of a product or service meet?

25
Q

Step 2 : Group the needs into homogenous subgroups

A

Identify the needs of specific consumer groups

26
Q

Step 3 : Select target markets

A

Choose which of these homogenous groups will be targeted.

27
Q

Step 4 : Position the product/service for the selected target market

A

Various instruments in the marketing mix are used to position the product or service for the selected target market.

28
Q

Market segmentation requirements

A
  1. Market segment must be identifiable and measurable
  2. Market segment must be substantial and sustainable
  3. Market segment must be reachable
  4. Market segment must be responsive
29
Q
  1. Market segment must be identifiable and measurable
A

Is it possible to identify the segment and measure its size?

30
Q
  1. Market segment must be substantial and sustainable
A

Is the segment large enough to make targeting it profitable?
Will the segment last long enough to justify developing a separate marketing mix to target it?

31
Q
  1. Market segment must be reachable
A

Is it possible to develop marketing communications that reach the segment?

32
Q
  1. Market segment must be responsive
A

Will the segment respond to a separate marketing mix?

33
Q

Marketing mix instruments

A
  • product
  • pricing
  • place
  • promotion
33
Q

Marketing segmentation criteria

A
  • demographic, e.g. age
  • geographic, e.g. region
  • psychographic, e.g. lifestyle
  • behavioral, e.g. benefits sought
34
Q

Product decisions

A

A product is a mix of physical and non-physical benefits that help meet consumer needs,

Consumer products can be categorized based on how people buy them:

  • Convenience products: Products within easy reach of consumer
  • Shopping products: Time for consumer to compare products
  • Specialty products: Products for which special purchasing effort is required
35
Q

Branding

A

A brand is a mark that is unique to the product items and marketed by a particular business to distinguish them from similar products

Branding advantages:

  • Facilitate identification of products by consumers
  • Assure consumers about the quality of products
  • Facilitate consumer decision-making
36
Q

Product differentiation

A

Business distinguishes its product physically or psychologically from identical competing products, so that it can be regarded as different by consumers

37
Q

Different types of differentiation:

A

Differentiation by means of packaging and brand

Differentiation by advertising appeals

Differentiation on the basis of price

Differentiation on the basis of distribution outlet

38
Q

Price decisions

A

Definition of price:

Value of a product or service that is determined by its perceived benefit to the consumer and the sacrifice required to obtain the product.

39
Q

Pricing strategies

A
  • Skimming pricing
  • Market-penetration pricing
  • Leader pricing
40
Q
A
41
Q

Skimming pricing

A
  • High initial price for innovations
  • Recovery of development costs
  • Price comes down with economies of scale
42
Q

Market penetration pricing

A
  • Lower initial price to penetrate the market
  • Achieves economies of scale in production and distribution sooner
  • Less attractive for competitors
43
Q

Leader pricing

A
  • Prices set lower than current market prices for limited period
  • Used by retailers to attract customers
  • Bait-and-switch pricing sometimes used
44
Q

Distributions decisions

A
  • How the will the product/service be delivered to consumers at the right place, at the right time:
    Activities that have to be carried out to direct the flow of products and services from the business to the consumer
  • Choice of distribution channel:
    decision-making about the type of distribution method that will be used
  • Which intermediaries will be used? Or will the products / services be marketed directly to the consumer?
45
Q

Channel leadership / channel captain

A

A business that controls the distribution channel

Manufacturer:
Consumer demand for the product is created by the manufacturer through advertising – “pull strategy”
Or through point-of-sale promotions – “push strategy”
Branding is critical to manufacturer power in the channel

Retailer:
Retailers need to decide whether they will implement centralized vs decentralized distribution system.

A centralized distribution system can increase their power of the retailer in the distribution channel

Effective customer relationship management (CRM) programs can significantly increase the power of the retailer in the distribution channel

46
Q

Advertising

A

Controlled and paid for marketing communication directed by a marketer and aimed at a specific target audience

46
Q

Marketing communications decisions
(promotions)

A

Marketing communication is the process of informing, persuading and reminding the consumer about a product or service

Includes the following elements:
- Advertising
- Personal selling
- Direct marketing
- Publicity
- Sales promotion

47
Q

Personal selling

A

Verbal presentation of a product, service or idea to one or more potential buyers in order to conclude a transaction

Sales representatives are used to inform buyers about products and to persuade buyers to buy the products

Remuneration: Usually a commission incentive offered to sales representatives

48
Q

Direct marketing

A

Uses advertising media to communicate information of a product or service to customers, who can then respond by purchasing the product or service via email, telephone or the internet

Focus of direct marketing is to obtain an immediate response

49
Q
A
50
Q

Publicity

A

Effort to attract attention to a business and its products through newsworthy information by sharing interesting updates or stories with the media to gain positive coverage without having to pay for advertising

MAN 132 (14 decks)

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