Marketing Notes 2.0 Flashcards
Define marketing
According to the American Marketing Association, marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives
Define profit maximsation
Profit Maximisation occurs when there is maximum difference between total revenue coming into the business and total costs being paid out
Define marketing plan
Marketing Plan is a document that lists activities aimed at achieving particular marketing outcomes in relation to goods or services
Define scent marketing
Scent Marketing is a type of sensory marketing targeting a consumer’s olfactory sense
Define customer orientation
Customer Orientation is the action of placing customer satisfaction at the core of the business decisions to ensure the business meets their needs and wants
Recall the roles of marketing throughout history
Marketing took on more responsibilities as businesses became more complex:
- Production approach
- Sales approach
- Marketing approach
- Societal marketing approach
Define discretionary income
Discretionary Income is the disposable income that is available for spending and saving after an individual has purchased the basic necessities of food, clothing and shelter
Define relationship marketing
Relationship Marketing is the development of long-term and cost-effective relationships with individual customers
Define corporate social responsbility
Corporate Social Responsibility (CSR) is the open and accountable business actions based on respect for people, community/ society and the broader environment. It involves businesses doing more than just complying with the laws and regulations
Recall the types of markets
Types of markets:
- Resource
- Industrial
- Intermediate
- Consumer
- Mass
- Niche
Define resource market
Resource Market consists of those individuals or groups that are engaged in all forms of primary production, including mining, agriculture, forestry and fishing
Define industrial market
Industrial Market includes industries and businesses that purchase products to use in the production of other products or in their daily operations
Define intermediate market
Intermediate Market consists of wholesalers and retailers who purchase finished products and resell them to make a profit
Define consumer market
Consumer Market is a market that consists of individuals — that is, members of a household who plan to use or consume the products they buy
Define mass market
Mass Markets is where the seller mass-produces, mass-distributes and mass-promotes one product to all buyers
Define niche market
Niche Market is a narrowly selected target market segment
Recall the broad factors influencing customer choice
The broad factors are:
- Psychological
- Sociocultural
- Economic
- Government
Define customer choice
Customer choice is the decisions and actions of customers when they search, evaluate, select, and purchase goods or services
Recall the aspects of psychological factors
The aspects of psychological factors are:
- Perception
- Motives
- Attitude
- Personality
- Self-image
- Learning
- Brand Loyalty
Recall the aspects of sociocultural factors
The aspects of sociocultural factors are:
- Social Class
- (Sub)culture
- Family and roles
- Reference/ peer group
Recall consumer laws that influence businesses
The Australian Consumer Law (ACL) and the Competition and Consumer Act 2010 (Cth)
Recall under which law is deceptive and misleading advertising illegal
Under the Competition and Consumer Act 2010 (Cth), deceptive and misleading advertising is illegal
Recall some forms of deceptive and misleading advertising
Forms of deceptive and misleading advertising:
- Bait advertising
- Fine print and qualifications
- Comparative advertising
- Environmental ‘green’ claims
- Country of origin
- Premium (or credence) claims
- Prize giveaway and competitions
- Dishonest advertising
Define price discrimination
Price Discrimination is the setting of different prices for a product in separate markets
Price discrimination may violate ___
Price discrimination may violate section 46 of the Competition and Consumer Act, which prohibits misuse of market power
Define implied conditions
Implied conditions are the unspoken and unwritten terms of a contract
Recall the implied conditions that the ACL provides to consumers
ACL demands all sold products are:
- Acceptable quality products that are safe, lasting and with no faults, look acceptable and do all the things someone would normally expect them to do
Define warranty
A warranty is a promise made by a business that it will correct any defects in the goods they produce or services they deliver
By law, businesses are required to offer a refund when ___
A business is required by law to offer a refund if the products provided:
- Are faulty
- Do not match the description or a sample
- Fail to do the job they were supposed to do
Define advertising
Advertising is a paid, non-personal message communicated through a mass medium
Define puffery
Puffery are the exaggerated claims used for promotional purposes, that no reasonable person would take as factual
Define good taste
Puffery are the exaggerated claims used for promotional purposes, that no reasonable person would take as factual
Recall what anti-competitive conduct are prohibited
- Cartel conduct
- Anti-competitive agreements are prohibited
- Misuse of market power
- Exclusive dealing
- Resale price maintenance
- Mergers and acquisitions
Define cartel
Cartel is when at least two businesses that normally would be in competition with each other agree to act together
Define exclusive dealing
Exclusive dealing is when one person or business trades with another and then imposes restrictions on them
Define anti-competitive agreements
Anti-competitive Agreements are contracts or arrangements containing provisions that substantially lessen competition in a market
Define resale price maintenance
Resale Price Maintenance is when a supplier forcefully sets the price at which retailers will sell the products they supply them
Define sugging
Sugging is the act of ‘selling under the guise of a survey’; a sales technique disguised as market research
True or False. Sugging is not illegal, only unethical
True. Sugging is not illegal but raises ethical issues including invasion of privacy and deception
Define situational analysis
A situational analysis must be undertaken based on the market research to gain a precise understanding of the business’s current position
Define SWOT analysis
A SWOT analysis involves the identification and analysis of the internal strengths and weaknesses and the external opportunities and threats of the business
Recall the product life cycle
Introduction → Growth → Maturity → Decline
Define market research
Market Research is the process of systematically collecting, recording, and analysing information concerning a specific marketing problem
Define marketing data
Marketing Data is the information relevant to the defined marketing problem
Define primary data
Primary Data is the facts and figures collected from original sources for the purpose of the specific research problem
Define secondary data
Secondary Data is the information that has already been collected by some other person or organisation
Recall the methods to gather primary data
The 3 methods to gather primary data are:
- Survey
- Observation
- Experiment
In 2012 a code of ethics was developed for marketers in relation to advertising. Name this code of ethics
the Australian Association of National Advertisers (AANA) Code of Ethics 2012
Recall the role of Ad Standards
The role of Ad Standards is to ensure that the Australian Association of National Advertisers (AANA) Code of Ethics 2012 is followed
Recall the criticism of Ad Standards
Ad Standards is a self-regulation system and is widely considered to lack the authority to manage the complaint resolution process without bias
Define the survey method
The survey method is the conduct of a survey in order to gather information.
This method can be done through personal interviews, focus groups, electronic methods, and questionnaires
Define observation method
The observation method is the record of the behaviour of consumers.
The approach limits direct contact and instead, the actions of consumers are systematically observed
Define experimental method
The experiment method is the gathering of information through the alteration of factors under tightly controlled conditions in order to evaluate the relationship and correlation between the factors
Define test marketing
Test Marketing is a specific form of experiment method where the experiments are carried out in the field
Recall the types of secondary data
Types of secondary data:
- External data
- Internal data
Define statistical interpetation analysis
Statistical Interpretation Analysis is the process of focusing on the data that represents the average, typical or deviations from typical patterns
Define market objectives
Market Objectives are realistic and measurable goals to be achieved through the marketing plan
Differentiate between business goals and market objectives
The marketing objectives should be closely aligned to the overall business goals, but more customer-oriented than the goals for the entire business
Define market share
Market Share is the business’s share of the total industry sales for a particular product
Define product mix
Product Mix is the total range of products offered by a business
Define customer service
Customer Service is how well a business meets and exceeds the expectations of customers in all aspects of its operations
Define target market
Target Market is a group of present and potential customers to which a business intends to sell its products
Define mass marketing approach
Mass Marketing Approach is a marketing approach that seeks a large range of customers
Define market segmentation
Market Segmentation occurs when the total market is subdivided into groups of people who share one or more common characteristics
Define marketing strategies
Marketing Strategies are actions undertaken to achieve the business’s marketing objective through the marketing mix
Define marketing mix
Marketing Mix refers to the combination of the four elements of marketing, the four Ps — product, price, promotion and place — that make up the marketing strategy
Define product (marketing mix)
The Product refers to features, such as the product’s quality, packaging/labelling, design, brand name, guarantee and warranty, and exclusive features
Define price (marketing mix)
The Price refers to the price and pricing methods and strategies and the interaction between price and quality
Recall the pricing methods
Pricing Methods are:
- Cost-based
- Market-based
- Competition-based
Define cost-based pricing method
A Cost-based pricing method is a pricing method derived from calculating the total cost of producing or purchasing a product and then adding a mark-up for profit
Define market-based pricing method
A Market-based pricing method is a pricing method of setting prices according to the interaction between the levels of supply and demand — whatever the market is prepared to pay
Define competition-based pricing method
A Competition-based pricing method is a pricing method that is chosen in relation to competitors
Define promotion (marketing mix)
The Promotion refers to the methods to be used by a business to inform, persuade and remind customers about its products
Recall types of promotion
Types of promotion include:
- Personal selling
- Relationship marketing
- Sales promotion
- Publicity
- Public relations
- Advertising
Define place (marketing mix)
The Place, more suitably named distribution but is named place to suit the theme of ‘P’, deals with the channels of distribution, the number of intermediaries, and the geographical spread of the distribution of the product
Define implementation
Implementation is the process of putting marketing strategies into operation
Define monitoring
Monitoring is the process of measuring actual performance against planned performance
Define controlling
Controlling involves the comparison of planned performance against actual performance and taking corrective action to make sure the objectives are attained
Define financial forecast
Financial Forecast is the business’s predictions about the future
Recall the steps to develop a financial forecast
The steps to develop a financial forecast are:
- Cost estimate
- Revenue estimate
Define key performance indicator
Key Performance Indicators are the means by which a business can measure its performance and evaluate the degree to which it is achieving its objectives
Define sales analysis
Sales Analysis is the comparison of actual sales with forecast sales to determine the effectiveness of the marketing strategy
Define market share analysis
Market Share Analysis is the comparison of sales with competitors to determine the effectiveness of the marketing strategy and the uncontrollable external factors
Define market profitability analysis
Marketing Profitability Analysis is when the business breaks down the total marketing costs into specific marketing activities
Define marketing return on investment
Marketing return on investment (ROI) measures how much revenue a marketing campaign is generating compared to the cost of running that campaign
Define market segmentation
Market Segmentation occurs when the total market is subdivided into groups of people who share one or more common characteristics
Define segmentation variable
Segmentation Variable is a characteristic of an individual or group that is used by marketing managers to divide a total market into segments
Recall the types of market segmentation
Types of market segmentation include:
- Demographic
- Geographic
- Psychographic
- Behavioural
Define product/service differentiation
Product/service Differentiation is the process of developing and promoting differences between the business’s products or services and those of its competitors
Define product/service positioning
Product/service Positioning is the technique in which marketers try to create an image or identity for a product compared with the image of competing products
Define total product concept
Total Product Concept is the tangible and intangible benefits (attributes) a product possesses
Define brand
Brand is a name, term, symbol, design, or any combination of these that identifies a specific product and distinguishes it from its competition
Define brand name
Brand Name that part of the brand that can be spoken
Define trademark
Trademark signifies that the brand name or symbol is registered and the business has exclusive right of use
Define brand symbol or logo
Brand Symbol or Logo is a graphic representation that identifies a business or product
Recall the types of logos
Types of Logos include:
- Brandmark Logo
- Wordmark Logo
- Lettermark Logo
Define brandmark logo
Brandmark Logo is a solitary graphic that is not expressed in words. In other words, it is a pictorial mark with no text
Define wordmark logo
Wordmark Logo is where the logo is literally the name of the business
Define lettermark logo
Lettermark Logo is a typography-based logo that’s comprised of a few letters, usually a company’s initials, to represent the brand
Define manufacturer’s brand or national brand
Manufacturer’s Brand or National Brand is a brand owned by a manufacturer
Define private or house brand
Private or House Brand is a brand that is owned by a retailer or wholesaler
Define generic brand
Generic Brands are products with no brand name at all
Define price leader
Price Leader is a major business in an industry whose pricing decisions heavily influence the pricing decisions of its competitors
Define bundle pricing
Bundle Pricing is where customers gain a ‘package’ of goods and services in addition to the tangible good they purchased
Define price skimming
Price Skimming is when a business charges the highest possible price for the product during the introduction stage of its life cycle
Define price penetration
Price Penetration is when a business charges the lowest price possible for a product or service so as to achieve a large market share
Define loss leader
Loss Leader is when the business sells a product at or below cost price
Define price points or price lining
Price Points (or price lining) is when products are sold at only certain predetermined prices
Define prestige or premium pricing
Prestige or Premium Pricing is a pricing strategy where a high price is charged to give the product an aura of quality and status
Define advertising media
Advertising Media refers to the many forms of communication used to reach an audience
Define personal selling
Personal Selling are the activities of a sales representative directed to a customer in an attempt to make a sale
Define relationship marketing
Relationship Marketing is the development of long-term and cost effective relationships with individual customers
Define loyalty program
Loyalty Program is a rewards-based program offered by a business to customers who frequently make purchases
Define sales promotion
Sales Promotion is the use of activities or materials as direct inducements to customers
Define publicity
Publicity is any free news story about a business’s products
Define public relations
Public Relations (PR) are activities aimed at creating and maintaining favourable relations between a business and its customers
Define distribution or marketing channels
Distribution or Marketing Channels are the routes taken to get the product from the factory to the customer
Recall the distribution channels
Producer to consumer
Producer to retailer to consumer
Producer to wholesaler to retailer to consumer
Producer to agent to wholesaler to retailer to consumer
Define non-store retailing
Non-store Retailing is a form of retailing where activity is conducted away from the traditional store
Recall the types of non-store retailing
- Electronic-commerce (E-commerce)
- Mobile-commerce (M-commerce)
Recall the types of market coverage
- Intensive distribution
- Selective distribution
- Exclusive distribution
Define physical distribution
Physical Distribution are all those activities concerned with the efficient movement of the products from the producer to the customer
Recall the extended marketing mix and explain why it is an extension
Intended for services:
- People
- Processes
- Physical Evidence
Define transnational corporation
Transnational Corporations (TNCs) are any businesses that have production facilities in at least two countries and that operate on a worldwide scale
Define global branding
Global Branding is the worldwide use of a name, term, symbol or logo to identify the seller’s products
Define standardised approach (to global markets)
Standardised Approach is a global marketing strategy that assumes the way the product is used and the needs it satisfies are the same the world over
Define customised approach (to global markets)
Customised Approach is a global marketing strategy that assumes the way the product is used and the needs it satisfies are different between countries
Define global pricing
Global Pricing is how businesses coordinate their pricing policy across different countries
Recall the types of global pricing
Types of global pricing methods:
- Customised
- Market-customised
- Standardised
Define competitive positioning
Competitive Positioning relates to how a business will differentiate its products
Recall the pricing strategies
The pricing strategies are:
- skimming
- penetration
- loss leaders
- price points
Recall the physical distribution issues
Physical Distribution Issues are:
- transport
- warehousing
- inventory
