MArt112 Flashcards
What is marketing?
Activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large
Must have parts of storytelling include:
A beginning, a middle and an ending
Why is the beginning important?
Sets up story, introduces topic, signposts where story will go, engages audience
Why is the middle important?
Story develops, complications introduced, show something is at stake, make audience care
Why is the ending important?
Complications resolved, conclusions reached, point of story made clear, provide resolution for audience, satisfying audience
What are the different segments?
Demographic, geographic, psychographic, behavioural
What is market segments?
The relatively homogenous groups of prospective buyers that result from the market segmentation process
What does STP (segmenting, targeting and positioning) do?
It links consumer needs to marketing actions such as identifying market needs, link needs to actions and execute marketing program actions
How does STP benefit a product?
Benefits in terms of:
Product features
Expense
Quality
Savings in time and convience
How does STP execute marketing program actions
Through a marketing mix of
Product
Price
Promotion
Place (distribution)
What is the marketing mix?
Product, Price, Promotion, Place (distribution)
What are the 4Ps
Product
Price
Place (distribution)
Promotion
What is PESTLE?
Political
Economic
Social
Technologoical
Legal
Environment
What are the regulatory forces
All of PESTLE except environment
What are the categories of marketing innovation?
Continuous innovation, dynamic continuous innovation, discontinuos innovation
What is continuous innovation?
Requires no new learning by consumers
What is the marketing strategy for continuous strategy?
Gain consumer awareness and wide distribution
What is dynamically continuous innovation?
Disrupts consumers normal routine but does not require totally new learning
What is the marketing strategy for dynamically continuous innovation?
Advertise points of difference and benefits to consumers
What is discontinuous innovation?
Requires new learning and consumption patterns by consumers
What is the marketing strategy for discontinuous innovation?
Educate consumers through product trial and personal selling
What is the five step marketing research process (5 steps)?
- Define the problem
- Develop the research plan
- Collect relevant information
- Develop findings
- Take marketing actions
What is the first step of the marketing research process?
Define the problem:
Set research objectives
Identify possible marketing actions
What is the second step of the marketing research process?
Develop the research plan:
Specify constraints
Identify data needed for marketing actions
Determine how to collect data
What is the third step of the marketing research process?
Collect relevant information:
Obtain secondary and primary data
What is the fourth step of the marketing research process?
Develop findings: analyse data + present findings
What is the fourth step of the marketing research process?
Develop findings:
Analyse the data
Present the findings
What is the last step of the marketing research process?
Take marketing actions:
Make action recommendations
Implement action recommendations
Evaluate results
What is secondary data?
Already existing data
What is primary data?
Data collected for this study
What is customer value?
The unique combination of benefits received by targeted buyers
What is customer lifetime value?
How much money a customer will bring your brand throughout their entire time as a paying customer
What are the four marketing utilities?
Form
Possession
Time
Place
What is consumer behaviour?
The study of processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs and desires
What is the consumer decision making process? (5)
- Problem recognition: Perceiving a need
- Information search: Seeking value
- Alternative evaluation: Assessing value
- Purchase decision: Buying value
- Post-purchase behaviour: Realising value
What is extended problem solving?
It occurs during a purchase decision that calls for a lot of effort and time. It involves HIGH involvement
What is extended problem solving?
It occurs during a purchase decision that calls for a lot of effort and time. It involves HIGH involvement
What is routine/limited problem solving?
It occurs during a purchase decision that calls for a low amount of effort and time. It occurs with LOW involvement
What are the types of marketing channels?
Direct and Indirect
What is a direct marketing channel?
It means the producer and the ultimate consumers deal directly with each other.
What are the indirect marketing channels? (3)
Produce -> Retailer -> Consumer
Produce -> Wholesaler -> Retailer -> Consumer
Produce -> Agent -> Wholesaler -> Retailer -> Consumer
What is B2B marketing?
Business to business
Marketing to companies, govt, or not for profit organisations for use in the creation of products and services that they can produce and market to others
What are the types of buying decisions
New buy, Modified buy, straight buy
What is a new buy?
A first time buyer of a product or service who has greater potential risks and the buying centre is larger
What is a modified buy?
A modification from a previous order which has high compeition amongst suppliers and a moderate level of information is required
What is a straight buy?
A reordering of an existing product which has familiar suppliers and little information is required
What are the different organisational markets?
industrial markets, reseller markets, government markets and non-profit organisations
What is retailing?
A key aspect of marketing is “exchange” and it is through retailing that exchange occurs
What does retailing include?
All activities involved in selling, renting and providing products and services to ultimate consumers for personal, family or household use
What are the four utilities?
Time, Place, Possession, Form
What is breadth?
The variety of different items a store carries such as appliances and books (horizontal)
What is depth?
The store carries a large assortment of each item such as a shoe store that offers running shoes, dress shoes, etc (vertical)
What are atmospherics? (definition)
The total sum of all store stimuli, interior and exterior physical characteristics which appeal to our emotions and how it effects our shopping
What are the types of atmospherics? (8)
Sound
Taste
Temperature
Visuals and lighting
Touch
Smell
Crowding
Staff
What is a service?
The intangible activities or benefits that an organisation provides to satisfy consumers needs in exchange for money or something else of value
What are the 4 I’s of Services
Intangibility, inconsistency, inseparability, inventory
What are the seven Ps of services marketing
Product (service)
Price
Place (distribution)
Promotion
Physical environment
People
Process
What are the 4Ps in product marketing mix?
Product
Price
Place (distirbution)
Promotion
Why is the physical environment important?
The appearance of the environment can influence the customers perception of the service
What defines a service?
People
What is process in services marketing?
The actual procedures, mechanisms, and flow of activities by which the service is created and delivered.
What types of processes are involved in service marketing? (3)
Service design, standardisation, customisation
What is the source in the communication process?
The sender of the message
What is the communication process?
What is the AIDA model of communication?
Attention, Interest, Desire and Action
What is the A in AIDA model of communication mean?
Attention: usually grabbed by the use of image
What is the first A in AIDA model of communication mean?
Attention: usually grabbed by the use of image, colour, layout, typography, size, celebrity, model etc
What is the I in AIDA model of communication mean?
Interest: Once attention is grabbed, it’s necessary to create interest in the viewer’s mind so that they will read/find out more about the brand being advertised Interest can be invoked by the use of an attractive sub heading
What is the D in AIDA model of communication?
Desire: the element of desire is usually created by the use of body copy where you describe in detail the necessity of buying the brand - explaining the features of the brand, including facts and figures
What is the last A in AIDA model of communication?
Action: Finally, some help is provided to enable the reader to take action, e.g make an order/ask for a trial
What is the PLC?
Product life cycle
What are the stages of the product life cycle?
Introduction, growth, maturity, decline
What is the promotional objective in order?
To inform, to persuade, to remind, to phase out
What is the introduction promotional activity?
To inform:
- Publicity in magazines
- Advertising
- Saleforce calling on intermediaries
- Sales promotion in form of free samples
What is the growth promotional activity?
To persuade:
- Personal selling to intermediaries
- Advertising to differentiate a product from competing brands
What is the maturity promotional activity?
To remind:
- Reminder advertising
- Sales promotion in form of discount, coupons and events
- Limited personal selling
- Direct-mail reminders
What is the decline promotional activity?
To phase out:
Little money spent on promotion
What is the strategic marketing process?
Planning phase -> implementation phase -> evaluation phase
What is the evaluation phase?
- Compare results with plans to identify deviations
- Exploit positive deviations, correct negative ones
- Tracking reports to measure reports
- Action memos to correct problems, exploit opportunities
What is price?
Statement of value for products or services
OR
the money or tore considerations exchanged for the ownership or use of a product
What is value in terms of price?
The amount of money people are prepared to pay for a product
Price is a measurement of value
What is the value equation?
Values = Percieved benefits of Product/service/Price of product/service
What are the six steps in setting the price?
- Identify pricing objectives and constraints
- Estimate demand and revenue
- Determine cost, volume, and profit relationships
- Select an approximate price level
- Set list or quoted price
- Make special adjustments to list or quoted price
What are the four common approaches to selecting an approximate price level?
Demand-orientated approaches
Cost-Oriented approaches
Profit oriented approaches
Competition oriented approaches
What are the types of demand oriented approaches?
Skimming, penetration, prestige, price lining, odd-even, target, bundle, yield management
What is a skimming pricing?
Setting a higher price to maximise profit margins
What is penetration pricing?
setting a relatively low price initially to increase market share or maximise sales volume
What is prestige pricing?
Setting a high price to attract quality-or status-conscious consumers
What is price lining?
Setting different price points among products offered
What is show rooming?
Browse in stores and buy online
What is web rooming?
Browse online and buy in a store
What is the consumer shopping to consumer buying grid in multiple-channel marketing?
Draw diagram.
What is a marketing channel?
The process to make possible flow of products and services from a produce through intermediaries, to a buyer.
What is a middle man?
Any intermediary between the manufacturers and end-user markets
What are the type of functions in marketing channels?
Transactional, logistical and facillitiating
What is a direct channel?
Produce -> consumer
What is an indirect channel?
When there is other components involved in the channel such as retailer, wholesaler or agent
What is ethics?
Moral principles and values
What is law?
Values enforceable in court
What are the four ways to classify marketing decision in ethical and legal relationships?
Ethical but illegal
Ethical and legal
Unethical and illegal
Unethical but legal
What are the three concepts of social responsibility?
Societal responsibility, stakeholder responsibility and profit responsibility
What is societal responsibility?
Public interest groups - ecological environment - general public
What is stakeholder responsibility?
Suppliers/distributros - employees - consumers
What is profit responsibility?
Owners/stockholders
What is a product?
Anything that can be introduced to the market for awareness, consumption or usage that aims to fulfil customer needs
What is a brand?
It embraces an assurance of quality, and transmits a vast number of tangible and intangible features such as symbol, values, culture, design, perceived customer image and personality
What are the brand components? (5)
Image
Name
Term or slogan
Brand mark (symbols, design, logo, trade mark)
Brand personality
What is brand equity?
Falls inside the customer minds and the equity refers to what extent can a brand impact consumer behaviour and perception
It can be defined as the perceived worth (value) of a brand
What is a multi product branding strategy?
Having a portfolio of products with different brands or names, all owned and managed by the same company.
What is a multibranding strategy?
Businesses use one name for all their products in a product class. This is also called family branding. Example: Toro makes Toro snowblowers, Toro lawn mowers, Toro garden hoses, and Toro sprinkler systems. All of the products have the same brand name.
What is private branding strategy?
It is one that a retailer gets produced by a third-party but sells under its own brand name. The retailer controls everything about the product or products.
What is mixed branding strategy?
Products under company marketed to different segments of customers to help target required customer base
What is globalisation?
The process by which firms operate on a global basis, organising their structure, capabilities, resources and people in such a way as to address the world as one market
What are the types of global companies?
International firm, multinational firm and transnational firm
What is the marketing strategy for international firm?
The extension of home marketing strategy
What is the marketing strategy for a multinational firm?
Different products, brands and advertising
What is the marketing strategy for transnational firm?
Standardised marketing activities when cultures are similar; different activities when cultures differ
What is social media marketing?
The use of social media websites and social networks to make a company’s products and services.
What does social media marketing do?
Provides companies with a way to reach new customers, engage with existing customers and promote its desired culture, mission or tone
Why do we use social media?
Be where the customers are
Promote brand values etc
cost efficiency
immediacy and versatility
two way (customer service + market research)
relationship building
data/analytics
hyper targeted advertising
increased online traffic
What is an example of cost-oriented pricing?
Standard markup
Cost-plus
Experience curve
What is an example of profit-oriented approaches?
Target profit
Target return on sales
Target return on investment
What is competition oriented approaches?
Customary
Above-at-or below market
loss leader
