Module 3: Marketing Flashcards
What is marketing?
Marketing can be defined as “satisfying customers’ needds profitably”; in other words, the major task of marketing is to help a company provide goods or services which can satisfy customers’ needs.
What are the 4P’s in marketing?
Product, price, place, promotion
What is “product” in marketing?
“Product” is an item that satisfies consumer needs or wants. It can be a tangible good that has an independent physical existence (eg. motor cars, toys). It can also be an intangible service (eg. tourism service, financial service). Product decisions include aspects like function, appearance, packaging, warranty etc.
What are “price” and “place” in marketing?
“Price” is the amount a customer pays for the product. It is very important as it determines the company’s profit and survival. When setting a price, the marketer must be aware of the customer’s perceived value.
“Place” refers to distributing the product or service to the place which is convenient for consumers to access. It can be a physical location; products can also be sold through mobile devices like placing orders via internet or phone call.
What is “promotion” in marketing?
“Promotion” refers to using various means to inform customers about their products and to encourage potential customers to buy these products. The most common forms of advertising are TV commercials, print advertisements and billboards. Public relations is another type of promotion; it is not directly paid and includes press releases, sponsorship deals or trade fairs.
What is market segmentation?
Market segmentation is about the identification of target market and the division of the target market into smaller groups with distinct needs, characteristics and consumption patterns. A target market refers to a group of customers that a company decides to satisfy. This group of customers should share similar needs and wants.
What are the common segmentation variables and ways to segment a market?
Segmentation variables are used to divide a market into market segments. There are four common types of segmentation variables: geographic, demographic, psychographic, and behavioural.
What are geographic and demographic segmentation?
Geographic: dividing the market by location. The idea is that people living in th same area may share similar needs, eg. by country, by city, by town etc.
Demographic: dividing the market by major demographic variables such as age, gender, income, occupation, religion etc. It is the most popular segmentation method.
What are psychographic and behavioural segmentation?
Psychographic: dividing the market based on consumers’ lifestyle characters, eg. activites (how they spend their time), interest (what they like), opinions (how they think) etc.
Behavioural: dividing the market based on consumers’ behavioural responses to a product, eg. by occasion, benefits they seek etc.
What are major promotion strategies?
Advertising, personal selling, sales promotion, public relations, direct marketing
What are advertising and sales promotion?
Advertising: the most common form of promotion. It refers to any forma of non-personal communication to promote the product through the mass media, with examples being TV commercials, signboards/billboards, magazine advertisements, leaflets, and newspaper advertisements.
Sales promotion: it refers to short-term incentives to encourage consumers to purchase or try the product or service. It has examples like coupons, premium, samples/free trial, and point-of-purchase displays (PoP).
What are personal selling and direct marketing?
Personal selling: it refers to salespeople’s personal or face-to-face presentation of a product to consumers. It can be in the form of sales presentations, trade shows, incentive programmes etc. It is most ffective in promoting complicated and new products or services, like insurance, travel packages, education etc.
Direct marketing: it refers to direct connections with target consumers by telephone, mail, fax, e-mail or the Internet etc. It is aimed at generating immediate responses from comsumers.
What is public relations?
It refers to company activities aimed at obtaining favourable publicity or buildings up a good corporate image.
What are the functions of advertising?
To increase sales, to introduce new product, to create brand loyalty, to promote a firm’s image, to educate the public
What are advertising appeals and their classification?
The approaches advertisement uses to attract customers or to influence their feelings toward the product or service are called advertising appeals. There are two major types of appeals and they are rational/informational appeal and emotional appeal.
