Marketing - Marketing strategies Flashcards
Describe the main marketing strategies that make GEM 7Ps
Global marketing: global branding, standardisation, customisation, global pricing, competitive positioning
E-marketing: online marketing
Market segmentation: the market is subdivided into groups
Products: goods/ services
Price: pricing methods/ strategies
Promotion: promotion mix
Place: distribution channels
People: employees, customer interaction
Process: systems and procedures
Physical evidence: tangible aspects of a business
Describe market segmentation.
The total market is subdivided into smaller market segments of groups who share similar characteristics. It aims to increase sales, market share and profits by concentrating promotion efforts on a particular segment to better understand and respond to the specific desires of a market segment.
What are the segmentation variables of market segmentation?
The characteristics of a group that is used to divide a total market into segments.
Demographic: according to population characteristics e.g. age, gender, income
Geographic: according to location e.g. urban, rural
Psychographic: according to personality and lifestyle
Behavioural: according to the customer’s relationship in relation to the product e.g. loyalty, usage, purchase occasion
What is product/ service differentiation and positioning and what are its four key points of differentiation?
The process of distinguishing products to those of its competitors to increase competitive advantage for increased sales and market share. This includes customer service, environmental concern, convenience and social and ethical issues.
Describe customer service as a point of differentiation.
Customers expect a high level of service which the business must exceed. This includes personalised service tailored for individual needs and wants and pre and after sale services for high cost items.
Describe environmental concerns as a point of differentiation.
Consumers have greater concern of how the manufacturing of products impact the physical environment. Companies must be environmentally friendly and show concern for the environment to maintain a good reputation with customers.
Describe convenience as a point of differentiation.
Customers place high value on convenience in a product if they are busy, as they will often select products that are convenient for use. E.g. pre prepared meals, home delivery, easy to cook
Describe social and ethical issues as a point of differentiation.
More consumers are becoming conscious of business ethics, with a rise of ethical consumerism. Customers will purchase products that they believe do not exploit workers, producers or the environment.
What is product/ service positioning?
The technique in which marketers try to create an image or identity for a product to be compared against competitors. The image created gives the product its position within the market. Positioning depends on level of competition, brand characteristics and product quality.
Describe products and the total product concept.
Products are goods or services that can be offered in an exchange for the purpose of satisfying a need or want. The total product concept refers to the tangible and intangible benefits a product possesses.
What is branding?
A brand is a name, term, symbol, design or a combination of these that identifies a specific product and distinguishes it from its competition. Businesses seek to protect their brand by using a registered trademark for the exclusive right to use a brand name, represented by TM or R, provides protection from infringement.
What are the benefits of branding for consumers?
- identification of specific products
- evaluation of quality
- reassurance and reduces perceived risk
- psychological reward of status/ prestige
What are the benefits of branding for businesses?
- repeated sales
- easier to introduce new products
- helps promotional activities
- promotes customer loyalty and higher prices
Identify the components of a brand name and brand symbol or logo
Brand name: part of the brand that can be spoken e.g. letters, numbers
Brand symbol: a graphic representation that identifies a business.
- brandmark: picture only e.g. Nike, Apple
- wordmark: words only, relies on typography e.g. Google, Subway
- lettermark: few letters, initials e.g. Pinterest, H&M
- combination mark: mix of pictures and words e.g. Burger King
- emblem: similar to combination but within a frame e.g. Starbucks
What are the three main brandings when classifying brands?
- manufacturer’s brand: aka national brand, owned by the manufacturer, often widely recognised and reliable e.g. Kraft foods
- private brand: aka house brand, owned by a retailer or wholesaler, often cheaper from bulk-buy e.g. Myer - Miss Shop
- generic brand: products with no brand name e.g. Essentials - Woolworths
What are the features of effective branding?
- well known, memorable
- cuts down on marketing as the brand becomes synonymous with a product characteristic e.g. BMW
- helps with new products
- sales leader (profits)
- innovative
How does packaging and labelling affect marketing strategies?
Plays the role of communication in marketing. Involves the development of the container and graphic design for a product. Choice of colours and design can attract attention and labelling can be used to promote other products and encourage proper use
Describe the role of packaging in marketing (ICAPS)
- Identification: brand and product, colour, linking the package to the product e.g. Toblerone –> prism packaging
- Containment: housing the product, seals, spills, leakage, waste prevention/ reducing excess packaging, stacking, storage
- Attractiveness: colour, slogans, designs
- Protection: damage during transit, rodents/insects, dust, temperature changes
- Safety: tampering, child access, hazardous materials
What is the role of labelling and what must it include?
Presentation of product information on packaging. The role of labelling is
to inform, appeal. Product labels must include ingredients, country of origin, shelf life, package size.
Define price as a marketing strategy
- the amount of money the consumer is prepared to offer in exchange for a product
- businesses use a combination of pricing methods and pricing strategies to determine an appropriate price
Identify the three pricing methods in marketing strategies
- pricing methods: the different ways a business can set initial product prices
cost-based pricing - market-based pricing
- competition-based pricing
