MART112 Flashcards
What is marketing?
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
What is needed for marketing to occur?
- We need two or more parties with unsatisfied needs
- Desire and ability to satisfy these needs
- A way for the parties to communicate (usefully the business who builds these communication channels)
- Something to exchange
what is a need?
someone is deprived of basic necessities (food, clothing, shelter etc.)
what is a want?
a need shaped by a person’s knowledge, culture and personality
how do we discover consumer needs?
- consumer needs are diversified and dynamic
- the first objective of marketing is to find the consumer needs
- however, consumers may not always know or be able to describe what they need and want
what are the 4 P’s?
- product (a good or service which will satisfy the customer needs and wants)
- place (the means of getting the product to the consumer)
- price (what is exchanged for the product)
- promotion (the means of communication between the buyer and the seller)
what type of factors are the 4 P’s?
- they are all controllable factors
- can be changed by the marketing manager
- when combined together they create a cohesive marketing programme
what are environmental forces?
- influence the marketing activity
- include social, economic, technological, competitive and regulatory
- competition is an uncontrollable factor
what is customer value?
The unique combination of benefits received by targeted buyers that includes quality, convenience, on time delivery, and both before-sale and after-sale service at a specific price.
What is CLV (customer lifetime value)?
how much money a customer will bring your brand throughout their entire time as a paying customer.
What is relationship marketing?
Links the organisation to it’s individual customers, employees, suppliers, and other partners for their mutual long-term benefit.
what is form utility?
- giving you the product the way you want it
- By transforming raw materials into finished products
what is place utility?
- giving you the product where you want it
- By getting the product to the desired location
what is time utility?
- giving you the product when you want it
- Storing products until they are needed or by opening at convenient times
what is possession utility?
- helping you purchase, use and enjoy the product
- Advice, installation, finance, and other services can make it possible for you to possess the value in the product
what are the four utilities?
- form
- place
- time
- possession
what is the utility sentence?
Marketing creates its utilities by bridging space (place utility) and hours (time utility) to provide products (form utility) for consumers to own and use (possession utility).
what are the three types of organisations?
- for profit
- not for profit
- government agency
what is an organisational strategy?
An organisations long-term course of action designed to deliver a unique customer experience while achieving it’s goals.
how do organisational strategy levels show hierarchy?
the higher the levels are on the hierarchy the broader the strategy would be
what is the strategy in visionary organisations ?
organisational foundation + organisational direction = organisational strategies
what is an organisational foundation?
An organisations core values are the fundamental, passionate, and enduring principles that guide it’s conduct over time.
what is a mission statement ?
a statement of the organisations function in society that often identifies it’s customers, markets, products, and technologies
what is organisational culture?
the set of values, ideas, attitudes, and norms of behaviour that is learned and shared among the members of an organisation
what is organisational direction?
A business describes the clear, broad, and underlying industry or market sector of an organisations offering.
define goals
profit. Sales. Market share. Quality. Customer satisfaction. Employee welfare. Social responsibility. Sometimes you need to sacrifice your short term gain to maintain your long term sustainable.
what is the organisational assessment ?
This categorises the products/ strategic business units (SBU’s) into one of the four different types, stars, cash cows, dogs, question marks
what is the organisational assessment based on?
- Market share – does the product being sold have a high or low market share?
- Market growth – are the number of potential customers in the market growing or not?
what is the flow of cash in the organisational assessment?
- Cash generated from cash cow products are used to develop star products and question mark products and question mark products.
- Cash should be reinvested in cash cow products so that they continue to generate strong cash flows
what is Ansoff’s matrix?
A strategic planning tool to help devise strategies for growth. Four options for growth – based on new or existing products, and new or existing products
what does the SWOT analysis stand for?
strengths, weaknesses, opportunities, and threats
what is the order of the strategic marketing process?
- planning. (1. Swot analysis, 2. market-product focus and goal setting, 3. marketing programme)
- implementation phase
- evaluation phase
what is market-product focus and goal setting?
Determining which products will be directed toward which customers, often based on market segmentation, which involves aggregating prospective buyers into groups or segments that
(1) Have common needs
(2) Will respond similarly to a marketing action
what is a marketing plan ?
a roadmap for the marketing actions of an organisation for a specified future time period, such as one year or five years
what is environmental scanning?
- The process of continually acquiring information on events occurring outside the organisation to identify and interpret potential trends
what is monopolistic competition?
- Marketers attempt to gain differential advantage
- Marketer aims to get the buyer to perceive an attractive difference in their offerings
what is oligopoly?
- A market structure in which only a few large sellers, marketing essentially similar products, account or almost all of an industry’s sales
- E.g. air travel, beer, cigarettes, telecom industry
what is monopoly?
- A market structure where there is only one supplier of a product, for which there are no close substitutes
- Monopolies are becoming rare in New Zealand
- Traditionally utilities such as power, water etc.
what is duopoly?
- Jetstar and air new Zealand
- The warehouse and kmart
- Food stuffs and woolworths
what is pure competition?
A market structure where a large number of sellers sell an undifferentiated product
what are some benefits of technology in marketing?
- Faster cheaper communication
- Ability to sort ,calculate and manipulate data
- Ability to manipulate images, video and artwork
- Increased ability of small organisations to compete
what is the macro - environment ?
- external to organisation
- no control over
what is the micro - environment?
- linked to organisation
- slightly more control over (e.g. creating packages for customers)
what is the internal environment?
- within the organisation
- lots of control over (e.g. brand name and how we communicate and work within the business)
what are the five factors in a micro environment?
- Suppliers
- Organisation
- Competitors
- Marketing intermediaries
- Customers
what are the three factors of the internal environment?
- location of firm
- image of the firm
- non-marketing resources
what are the five steps in segmenting and targeting?
- Group potential buyers into segments
- Group products to be sold into categories (that meet customer needs)
- Develop a market—product grid and estimate market size
- Select target market(s)
- Take marketing actions to reach target market(s)
what is positioning?
Product positioning refers to the place a product occupies in consumers’ minds based on important attributes relative to
what are position strategies?
A key to positioning a product or brand effectively is discovering the perceptions in the minds of potential customers (target market).
list and describe the two positioning approaches
- Head-to-head positioning involves competing directly with competitors on similar product attributes in the same target market.
- Differentiation positioning involves seeking a less-competitive, smaller market niche in which to locate a brand.
what is the consumer decision making process?
- problem recognition
- information search
- alternative evaluation
- purchase decision
- post purchase behaviour
what is problem recognition?
- perceiving the need for something
what is information search?
- seeking value
what is alternative evaluation?
- assessing value and comparing products
- e.g. price, quality, country of origin, availability
what is purchase decision?
- buyer makes final decision:
- what to buy
- where to buy
- when to buy
what is post purchase behaviour?
Consumers compare their consumption experiences with expectations
- Performance < expectation = dissatisfied
- Performance = expectation = satisfied
- Performance > expectation = delighted
what is cognitive dissonance?
consumers doubts after a purchase about wether it was the right choice
what are situational influences?
- purchase task
- social surroundings
- physical surroundings
- temporal effects
- antecedent states
what are psychological influences?
- motivation/ personality
- perception
- learning
- attitude
- lifestyle
what is motivation and personality?
- Maslow’s hierarchy of needs
- personality traits associated with self concept
from bottom to top what is the order of Maslow’s hierarchy of needs?
- basic needs
- safety needs
- relationship needs
- esteem needs
- fulfilment
what is a perceived risk?
Perceived risk represents the anxiety felt because the consumer cant anticipate the outcomes of a purchase but believes there may be negative consequences or concerns of the performance of the product
what are sociocultural influences?
- personal influences
- family
- reference groups
- culture and sub-culture
marketing research is the process of…
- defining a market problem/ opportunity
- collecting and analysing information
- recommending actions
what are the 6 steps in market research?
- define the problem
- develop research plan
- collect relevant information
- develop findings
- take marketing actions
what are the different types of research?
casual research - identify cause and effect relationship
descriptive research - describe a situation and find the frequency of which it occurs
exploratory research - explore a problem to be able to find out why and come up with idea
why do firms create new products?
- Changing customer needs
- Market saturation
- Managing risk through diversity
why do organisations create new products?
- Product line extension
- Jump in innovation/ technology
- Brand extension
what is the new product development process?
New product development (NPD) is a process which is designed to develop, test and consider the viability of products which are new to the market in order to ensure the growth or survival of the organisation.
what are the 7 steps of the NPD?
- New-product strategy development
- idea generation
- screening and evaluation
- business analysis
- development
- market testing
- commercialisation
what are the stages in the product lifestyle?
- introduction
- growth
- maturity
- decline
what are the five different types of product adopters?
- innovators
- early adopters
- early majority
- late majority
- laggards
what are four barriers to adoption?
- Usage
- Value
- Risk
- Psychological
what is heterogeneity?
variability in experience
what is a marketplace?
A physical location which facilitates the exchange of information, goods, services or payments (transactions)
Face to face exchanges occur
what is a market-space?
An internet-enabled digital environment which facilitates the exchange of information, goods, services or payments (transactions)
Face to screen exchanges occur
what is a legacy company?
Can track their origins back to the traditional marketplace
what is an internet company?
These companies have market-space origins
how to create value in the market-space using the utilities?
Time utility – no restrictions
Place utility – anywhere
From utility – makes customisation possible
Possession utility – accelerated
what are the 7 C’s to creating the best customer service online?
- Context
- Content
- Customisation
- Connections
- Communication
- Community
- Commerce
what is a multichannel?
all channels are available to the consumer but are not integrated
what is an omnichannel?
all channels available to consumer and are integrated
what are the components of integrated marketing?
- Advertising
- Sales promotion
- Public relations
- Direct marketing
- Personal selling
- Digital marketing
what is the promotional mix?
- Advertising
- Personal selling
- Public relations
- Sales promotions
- Direct marketing
what is needed for IMC to work?
right form
right place
right time
right people
what is the purpose of the introduction stage
to inform
what is the purpose of the growth stage
to persuade
what is the purpose of the maturity stage
to remind
what is the purpose of the decline stage
to phase out
what is advertising
Advertising is any paid form of non-personal communication about an organisation, a product, a service, or an idea by an identified sponsor
what is advocacy
States the position of a company on an issue or when a company makes a request related to a particular action or behaviour.
what is pioneering institutional
Used to announce what the company is, what is can do and where it is located.
what is competitive institutional
Used to promote the advantages of one product class over another and used in markets where different product classes compete for the same buyers.
what is reminder institutional
Used to bring the company’s name to the attention of the target market
what are the benefits of advertising online
we are able to target segments: demographics/ psychographics/ geographic/ online behaviour targeting/ purchase history
what is push strategy
any tactic that results in a third party stocking your product
what is the pull strategy
any tactic that results in customers demanding your product from the retailers
what are public relations
A form of communication management that seeks to influence feelings, opinions, or beliefs held by customers, prospective customers, stakeholders, suppliers, employees, and other publics, about a company and its products/ services.
what are the three steps to sales promotion?
- Inform prospective buyers about product benefits
- Persuade them to try it
- Remind them later about the benefits they enjoyed
what is direct marketing?
A method of contacting customers and potential customers personally, rather than having an indirect medium between the company and the consumer
what is a barter transaction
when something other than money is exchanged
how do you calculate profit
total revenue - total cost
and
(Unit price x Quantity sold) – (Fixed cost + Variable cost)
what is the decoy effect?
Change in preference between two options when presented with a third one.
what is reference pricing?
Reference pricing refers to how much consumers expect to pay for a good in relation to other competitors and the previously advertised price.
what are the 6 steps in setting the price
- identify pricing objectives ad constraints
- estimate demand and revenue
- determine cost, value and profit relationships
- select an appropriate price level
- set the list or quoted price
- make special adjustments
how do you calculate the break even point
fixed cost/ (unit price - variable cost)
what is a marketing channel ?
A marketing channel consist of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or other users
