Module 9: Products and Markets Flashcards
What is the definition of marketing?
Management process responsible for identifying, anticipating and satisfying customer requirements profitably
Focus of marketing?
Customers, centre of all business planning and decision-making
‘Market-orientated’
What is product orientated?
Belief that should focus on enhancing efficiency and effectiveness of the manufacturing process
Demand is ‘given’
Major goal as being the cost effective supply to the market
What is selling orientated?
Hard selling should be focus of attention
Sell the company rather than making what the market wants
What is product orientated?
Innovative nature and quality of the product are sufficient to ensure it sells
What is the market process?
Market Analysis
Planning
Implementation
Control
In setting out marketing strategy a company must make decisions dealing with each of what?
Segmentation Product Price Place Promotion
What should we consider in Product?
Positioning strategy for new products
Product mix management for existing products
How may companies design products/services?
Competitive
Improved
Breakthrough or innovative
Product mix is described in terms of what?
Breadth
Depth
Boston Matrix?
Stars - High Growth, High market share
Cash Cows- Low growth, high share
?- High growth, low share
Dogs- low growth, low share
What are stars?
High growth and market share
Can increase share
Threat from competitors who are attracted to growth
Invest in promotion and development to support
Worthwhile as valuable revenue
What are cash cows?
High market share Low growth market Milk it Generate cash to fund stars Economies of scale Brand recognition Barriers to entry Easy to generate cash from Avoid investing in Little long term growth
What are question marks?
Low market share High growth market Performing badly but has potential Large investment Abandon or improve 'Double or quit'
What are dogs?
Low market share Low growth market Not contributing profits Little future growth Discontinue
Elements of the promotion mix?
Personal selling
Publicity and PR
Sales Promotion
Advertising
Advantages of Advertising?
Long term brand image
Dramatic impact
Disadvantages of Advertising?
Difficulty in evaluating effectiveness
High cost incurrence- expensive tool
Advantages of Personal selling?
Long term relationships
Flexibility
Disadvantages of personal selling?
Potentially high cost per customer contact
Higher exposure to people issues
What is publicity?
Any types of new item about an organisation conveyed through mass media at no immediate cost
What is PR?
Steps to create an understanding and goodwill
What are the advantages of sponsorship?
Promote whole company
Accepted as less bias
What are the disadvantages of sponsorship?
Impossible to control media comment and reactions
Difficult to assess on sales and profits
