Marketing - Strategies Flashcards
Market Segmentation
Market Segmentation
total market is subdivided into groups of people who share one or more common characteristics
* demographic
* geographic
* psychographic
* behavioural
Market Segmentation
Product Differentiation
process of developing + promoting differences between the business’s products/services + those of its competitors.
Market Segmentation
Product Positioning
the technique where marketers try to create an image/identity for a product compared w/ the image of competing products.
Products
Products
Branding
Packaging
Labelling
Price
Price
Methods
* cost-based
* market-based
* comp-based
Strategies
* price skimming
* price penetration
* loss leader
* price points
Price
Methods
Cost-Based
* Cost+(Cost × Markup percentage)=Price
Market-Based
* price set according to level of supply and demand
Comp-Based
* price covers costs and is comparable to competitors
* below, equal to, or above competitors
Price
Stratgies
Price Skimming
* highest price is charged during introduction stage
* objective = recover start-up costs
Price Penetration
* lowest price is charged
* objective = sell large quantity + discourage competitors entering market
Loss Leader
* product is sold at or below cost price
* psych = customer will buy cheap product and be enticed to buy more
Price Points
* selling products only at certain predetermined prices
Promotion Mix
Promotion Mix
Promotion methods businesses use in promotional campaigns
* advertising
* advertising media
* personal selling
* relationship marketing
* sales promotion
* publicity and public relations
Promotion Mix
Methods
Advertising
* paid, non-personal message communicated through a mass medium
* advantage = flexible + can reach large audience
Advertising Media
* term for forms of electronic + print comm to reach an audience. e.g. TV, mail, window display, etc
Personal Selling
* activities of sales consultant directed to a customer in an attempt to make a sale
* increases customer satisfaction
Promotion Mix
Methods
cont’d
Relationship Marketing
* aim = customer loyalty by meeting their needs
* E.g. loyalty programs
Sales Promotion
* inducement to customers in an attempt to sell mor products
* used primarily to increase effectiveness of other promotion activities
* E.g. limited time offers, samples, contests + giveaways
Publicity + Public Relations
* any free news story about business’s products
* aims = enhance product image, raise awareness
Communication Process
Communication Process
A channel is any method used for carrying a message
* Opinion Leader - someone who influences others
* Word of Mouth - when people speak about a brand/product during convo
Place
Place
Distribution Channels
* how the product gets to the customer
Channel Choice
* market coverage = no. of outlets a firm chooses for product
* Intensive, Selective, and Exclusive
Physical Distribution Issues
* all the activities concerned with the movement of the products from the producer to the consumer
* Transport, Warehousing, Inventory
E-Marketing
E-Marketing
The use of the internet to perform marketing activities
* Social-Media Marketing - form on online advertising using social media platforms to deliver target commercial messages to potential customers
People, Processes, and Physical Evidence
People, Processes, and Physical Evidence
People
* the quality of interaction between cutsomer and those w/in the business who will deliver the service
Processes
* the flow of activities that a business follows in the delivery of its service
Physical Evidence
* the environment the service will be delivered
Global Marketing
Global Marketing
- Global Branding
- Standardisation
- Customisation
- Global Pricing
- Competitive Positioning
Global Marketing
Global Branding
The worldwide use of a name, term, symbol, or logo to identify a seller
Global Marketing
Standardisation
A global marketign approach that assumes the way the product is used and the needs it satisfies are the same all over the world
Global Marketing
Customisation
Assumes the way the product is used and the needs it satisfies are different between countries
Global Marketing
Global Pricing
How businesses coordinate their pricing policies across different countries
* Customised pricing
* Standrd Worldwide price
* Market Customised pricing
Global Marketing
Competitive Positioning
Relates to how a business will differentiate its products to global competitors
