Module 2/ Marketing Flashcards
What is Marketing?
Marketing is the process of planning and executing the development, pricing, distribution, and promotion of products and services to meet customer needs.
What is ‘Value added’?
Value-added is the additional features or economic value that a company adds to its products and services before offering them to customers. It will allow them to Charge a higher price if necessary, Gain a competitive edge over other players in the market, Benefit from customer loyalty.
What is exchange transactions?
It involves the transfer of something, whether tangible or intangible, between two or more people to receive something in return
What are the MARKETING CONCEPTS?
Production concept
This marketing concept is probably the oldest to be practised.
It is based on the notion that the business should produce products it produces best.
Product concept
it was believed that consumers will demand products that are of high quality, give excellent performance and contain innovative features.
Sales (selling) concept
The main focus is not on whether the firm could mass-produce the product, but on how well it could convince customers to buy
Marketing Concept
The marketing concept therefore holds that, in order to achieve its organisational goals, the firm should ascertain the needs and wants of its potential customers and fulfil their desired satisfaction more effectively than competitors.
Societal marketing concept
Companies were therefore encouraged to promote social and ethical considerations in the production and the marketing of their products
What is the Micro Environment?
The micro-environment of a firm refers to the factors
within its immediate environment that impact its
performance, decision-making process and ability to serve
its customers. These include:
Suppilers
Competitors
What is the MACRO Environment?
The macro-environment of the firm refers to the external
and uncontrollable factors which impact on its performance,
decision-making process and ability to serve its customers.
These are larger societal factors that the firm cannot control
What are Marketing Intermediaries?
Marketing intermediaries assist the firm in promoting, selling and
distributing its products to the final customers. They play
a vital role in the distribution process and so should be of
utmost importance to the Marketing Manager
4 types of MARKETING INTERMEDIARIES?
Resellers
These are firms that purchase the manufacturer’s products
with the intention of reselling them. They include wholesalers and retailers
Physical distribution firms
These firms help to stock and transport goods from one location to the designated destinations.
Marketing services agencies
These agencies or firms offer their services to other firms and act on their behalf. They include marketing research agencies and advertising agencies, among others.
Financial intermediaries
These firms focus on offering finance to buy the firm’s products or insuring the products that are purchased. Financial intermediaries would include banks, insurance companies, credit unions and other financial institutions.
What are some other factors that affect MARKETING?
Economic factors
Economic factors may be defined as those influencing
consumer spending patterns and purchasing power. These
would include economic growth rates, inflation rates,
distribution of income and exchange rates
Natural factors
Natural factors refers to the natural resources that
are used as inputs into production. This includes all the
different variations of the factors of production – that is,
land, labour, capital and entrepreneurship.
Political factors
Political factors would include the laws and regulations
that influence the operations of a firm in an industry.
The political environment can be extended to include
the different pressure groups
Cultural factors
Cultural factors become even more important when
the firm is operating within different countries. While
most Caribbean countries would have similarities in their
culture because of their heritage, there is still some amount
of diversity
What are the steps in Marketing Research?
Stage 1: Management problem identification- If the problem cannot be identified or if it is not clearly defined, it could result in valuable time and resources being wasted
Stage 2: Research objectives
The research objectives outline what is to be achieved by
the research. They give a clear guide to the way forward.
Both management and the researcher have to ensure that
these objectives correlate with the problem statement.
Stage 3: Data collection
This stage can have a serious impact on the result of the
marketing research. The researcher has to ensure that
sufficient and credible information is collected, upon which
a decision can be taken or a generalisation made
Stage 4: Sampling
Conducting research on an entire area can pose a number
of challenges for the researcher
Stage 5: Research techniques
Stage 6: Analysis and presentation of data
Limitations in Marketing Research?
Market research is time consuming and so the final
result might be out of date by the time it is published
If the sample is not properly chosen, the result can be
biased
A proper marketing research campaign can be very
costly for the firm and it may be inconclusive in the end
The final decision is based on value judgements and
probabilities and so is not 100 per cent accurate
What is Market Segmentation
Market segmentation is the division of the market into subsets
or segments of potential customers who have similar buying
behaviour and characteristics.
Advantages and Disadvantages of Marketing Segmentation?
The firm can make better use of its limited resources
and in the process reduce waste
A firm may choose to cater for one segment rather than
the entire market
Knowing the needs of each segment can save money
that would otherwise be spent on promotion campaigns
dis-
Researching information about each segment can result
in very high administrative costs
The firm may forgo revenues by focusing on just one or
two segments
Producing products for each segment can rapidly
increase the number of products, some of which may
be costly to produce. This could also lead to market
saturation.
What is Mass Marketing?
Mass marketing is also referred to as ‘undifferentiated
market’. It is where the firm does not practise segmentation
but rather markets the same product to the entire customer
base
What is Niche Marketing?
Niche marketing is also known as ‘concentrated
marketing’. This strategy is one where the firm identifies a
small segment of the market and creates a marketing plan
to satisfy that segment
What is Target Marketing?
Target marketing involves the division of the market into
different segments for the firm to target. The firm may cater
for one or more of these segments with the use of different
strategies to reach them
