MARKETING: strategies Flashcards
Market segmentation
- Closely linked to target market
- Total market is subdivided into groups of people who share one or more common characteristics
aim of market segmentation
increase sales, market share, profits
what is positioning
- provides the fit between customers in a market segment and the business attempts to meet the needs of customers in that segment.
what is differeniation
The process of promoting and developing the differences between a business’s products & their competitors.
total product concept
refers to the ‘core product’ - what we are buying to satisfy our want / need as well as the intangible components; the attributes of it
- buy products based on benefits not tangible qualities
what does branding do
Branding helps consumers:
- identification of products for consumers
- judgement of quality
- reduction of risk
- psychological rewards
Helps business:
- Gain repeat sales
- Introduce new products
- Promote products
- Encourage customer loyalty
brand categories
manufacturer’s brand: owned by manufacturer, well recognised, widely available
Private/house brand: owned by retailer, cheaper but rely on positioning of company
Generics: no real branding, found in supermarkets
interdependence of products in marketing and operations
Operations: best determine how to make the product
Marketing: determines appearance and function + communicating with the public.
= drive sales
price methods
Cost-Plus: cost of providing good PLUS profit margin
Competition-Based: match competitors pricing
Market: Demand-Based - higher demand = higher price
price strategies
- Penetration Pricing: set low price to gain immediate customer group
- Loss Leader: provide some items at below cost to attract into store
- Market Skimming: charge high price to recover high cost
- Price Points: setting different prices for similar products
- Product Deletion Pricing: lower price to clear old stock
- Prestige Pricing: quality, reliability, image justify high price - Psychological pricing: selling at $99.95, not $100
product summary
Positioning: image of product/brand in customers mind
Packaging: physical appearance, protect quality, first impression, communicate
Branding: reputation built over time via name/logo = expectations
what is price
amount of money charged for a product + amount of money a customer is prepared to offer in exchange for a product
promotion mix
Advertising
Personal selling & relationship marketing
Sales promotion
Publicity & PR
advertising
convey message and remind market of product existence
Personal Selling
take business directly to consumer
Relationship Marketing
create satisfaction and value = referrals
Sales Promotion
competitions, samples and discounts to increase sales
publicity
creating events to increase brand awareness
free
opinion leaders
individuals/celebrities to provide hype/reputation/image
word of mouth
consumers referring products to each other – more genuine/reliable & uncontrollable
place
– Distribution Channels:
Ways good is moved from producer to wholesaler to retailer to consumer
– Channel Choice: - link to perception of products
Intensive (readily available) | Selective (limited stores/locations) | Exclusive (narrow distribution)
– Physical Distribution Issues: Transport, Warehousing and Inventory
people
– Hiring right people to support business activities via customer
Service, detailed product knowledge and appropriate manner
processes
– Consumers total experience before (searching) and after (post-sale
service) – provide good, enriching and satisfying behaviours
physical evidence
Appearance of product and presentation to consumer – packaging,
build quality, sales team, support team (e.g. Apple)
