Marketing Strategies Flashcards
When managers of marketing are developing marketing strategies it is market segmented which includes mainly 4 types what are these?
Demographic
Geographic
Psychographic
Behavioural
List the 7 ps
Product Price Promotion Place People Physical evidence Processes
Define demographic segmentation
Demographic segmentation is process of dividing total market according to features of a population including size, age, sex, income, cultural background and family size
Define geographic segmentation
Geographic segmentation is the segmentation of total market accoridng to geographical locations. For example in blue mountains products offered in food industry may most likely be hot due to consumer demand.
Deine psychographic segmentation
Psychographic segmentation is the process of dividing the total market according to personality, characteristics, motives and lifestyles.
Business may research a group’s brand preferences, personal interests hobbies and values.
Define behavioural segmentation
Behavioural segmentation is the process of dividing the total market according to the customers relationship of the product.
For example lean cuisine has offered a variety of frozen foods which are healthy and nutritious. Consumers who purchase this product have a positive outlook on their product
Another marketing strategy is product/ service differentiation define.
Process of developing and promoting differences between the business’s product or services and those of competitors.
List some differentiation points
Better value for money
Customer service
Environment concerns
Convenience
Define product service positioning
Refers to the tech ique in which marketers try to create an image or identity for a product compared with the image of competing products. Brands such as Rolex and no frills can inmediately evoke an image of the product
Define product
Products are goods or services that can be offered in an exchange for the purpose of satisfying a need or want.
List the strateies used in products
Product branding
Product packaging
Define brand
Brand is a name symbol or logo that identifies a specific product and distinguishes it from its competitors
What are benefits of branding?
Gains repeat sales due to business’s products
Allows consimer to evaluate quality from logo
Allows customer to feel prestigious when purchasing a brand that is high priced
List the branding strategies
Branding strategies include manufacturers brand/ national brand, private/house brand and generic brands
Define private house brand
It is a brand which is owned by the retailer or wholesaler. Often cheaper because retailers buy at a cheaper price. Eg myser sells its own products.
Define generic brand
No name - no frills. Homebrand. Select woolworths
Define packaging
Packaging involves the development of a container and the graphic design for a product.
Packaging preserves the product, attracts customers, differentiates products.
Define labelling
Labelling refers to the presentation of inormation on a product. Providing ingredients, packaging size and production.
List the pricing methods
Cost based mark up pricing
Market based pricing
Competition baed pricing
Explain cost based mark up pricing
A pricing method used from the cost of producing or purchasing the product then adding a markup. Cost + (cost x mark up %) = price.
2 major drawbacks:
- Difficulty in detemrining mark up %
- Product is prices after production no competitors price taken into account
Explain market based pricing
Market baed pricing is a method of setting prices according to levels of supply abd demand.
Explain conpetition based pricing
It is where the price covers cost of raw materials and operation costs and is conpared to competitors price. Below equal or above
List the pricing strategies
Price skimming
Price penetration
Loss leader
Price points
When should pricing strategies be utilized?
When changing marketing objectives, life cycle of product changes, degree of product differentiation and level of economic activity
Define price skimming
Price skimming occurs when a business chargesr the highest posisble price for the product during introduction stage of its life cycle.
Define price penetration
Occurs when a business chargesr lowest to achieve a large market share
Define loss leader
Loss leader is producf sold at a price below cost. It may attract customers to shop to purchase other products.
Promotion is another marketing strategy. Define promotion.
Promotion describes the methods used by a business to inform, persuade and remind a target market abouts its products.
Promotion:
Attracts new customers
Increase brand loyalty
Encourage existing customer sales
What is included in the promotion mix
Advertising
Personal selling and relationship marketing
Sales promotion
Publicity and public relations
Define advertising media
Advertising media refers to many forms of communication to reach an audience.
This includes:
- mass marketing - tv, radio, newspapers
- telemarketing - telephone
- e - marketing - use of internet to deliver advertising messages
- billboards
Define personal selling and when should it be used?
Personal selling involves the activities of a sales consultant directed to a customer in an attempt to make a sale. For example a mercede benz car dealer uses personal selling to sell its product to individuals.
Three unique advantages include:
1. Message modified to suit
2. Individual assitance leads to relationship
3. After sales customer service to create trust
Define relationship marketing
Relationship marketing is the develoment of long term cost effective and strong relationships with customers.
Creates customer loyalty
Increases repeated sales
For example everyday rewards card
Define sales promotion
Sales promotion is the use of activities or materials as dorect inducement to customers.
It can entice new customers, encourage trial purchases
List the examples of sales promotion
Coupons
Premiums - extra gift due to purchase
Refunds
Samples
Point of purchase displaus
Define publicity and public relations
Publicity is any free bews story about a businesses products
Public relations are activities aimed at creating and maintaining favourable relations between a business and its customers.
How can public relations assist in business achieving its goals?
- Promoting a positive image
- Effective communication of messages
- Issues monitoring - early warning to public which could harm business sales
- Crisis management - protecting business reputation as a result of negativity or rumours.
Businesses must use effective and clear communicaton when providing its message. Define a channel in relation to communication process and noise
Channel is any method used for carrying a message. Marketing managers use a variety of channels to communicate. Two includes worth of mouth and opinion leaders.
Noise is any interference or distraction that affects any or all stages in the communication process.
Define place or distribution
Activities that make the products avaliable to customers when and where they want to purchase them.
What are the four main distribution channels?
- Producer to customer - car repairs
- Producer to retailer to customer - sales of fruits
- Producer to wholesaler to retailer to consumer
- Producer to agent to wholesaler to retailer to customer - agents are paid to distribute products but does notown products. Business may use an agent if business does not have any sales representatives.
Explain the channel choices including intensive, selective and exclusive
- Intensive distribution - coke sold in every store
- Selective distribution - moderate proportion f all possible outlets such as billabong. Customer is willing to travel.
- Exclusive distribution - one retail outlet for large geographical area such as ikea and bunnings warehouse
Define physical dostrobution issues and list all three
Physical dostor utiob is all those activities concerned eith the efficient movement of the products from producer to customer.
Transport - network of transportation to deliver products
Warehousing - storing and dispathing goods
Inventory - business carries inventory control to monitor quantities of stock. Too much or too little has a negstive effect on business. Inventory control system is used.
Define the people element in marketing mix
People element refers to quality interwctions between the customer and those within the busibess who will deliver the service. For example mcdonalds service in delivering product is important.
Define processes in marketing mix
Processes refer to the flow of actigities that a business will follow in its delivery of a service. Processes needs to be efficient to satisfy customers for example a resturant should not keep customers waiting in between courses.
Define physical evidence in marketing mix
Physical evidence fefers to the environment which the sevice will be delivered includes website, logo, brochures.
Why is sma an uneffective advertising strategy?
Sma is uneffective as it cant measure the reach (number of people exposed to message) and frequency (average number of times someone is exposed to message)
Why is sma an effective strategy?
Inexpensive
Effective method to gain exposure
Easy to use and monitor
Define global branding and list its advantages
Global branding is the worldwide use of a name, term, symbol to identify the sellers products.
It has advantages including:
Cost effective as one advertisement can be hsed in number of locations
Provides uniform worldwide image (mcdonalds golden arches)
Define a standardnised approach
Global marketing strategy that assumes the way the product is used and the needs it satisfies are the same world over.
Define customised or local approach
Global marketing strategy that assumes the way the product is use dand needs it satisfies are different between countries.
What are three methods of pricing in global marketing?
Customised pricing: occurs whenever consuners in dofferent countries are charged dofferent prices for the same product
Market customised pricing: sets prices according to local market conditions.
Standard worldwide pricing: charging product same price despite location.
Define competitive positioning
Conpetitive positioning relates to how a business will differentiate its products.
