Part A Flashcards
Marketing
How a business promotes themselves to try and attract customers.
Why is marketing needed?
- Attract customer awareness
- Create brand awareness & improve market share.
- To make customers willingly pay more for similar p/s.
Effective marketing should…
- identify customer needs
- promote product/product portfolio
- show the price of the brand
- show features of p/s.
- promote over a variety of medias.
- target the ‘right’ customers.
- Distribute the p/s in the right place.
- Create p/s that customers want.
Principles of Marketing:
- Anticipate demand.
- Recognise demand.
- Stimulate demand.
- Satisfy demand.
Anticipating demand
Attempting to estimate and anticipate the demand that could be generated by a marketing campaign is a key purpose of marketing.
Problems and methods of anticipating demand:
Problems- difficult to estimate as too much supply could be made with a low demand or too little supply made but demand is high.
Methods- look at the impact of previous marketing campaigns, results of market research, demand for previous p/s, demand for competitors p/s, and impact of competitors marketing campaigns.
Recognising demand
seeing whether demand has increased/ not following the marketing campaign.
Satisfying demand
The business continues to keep the supply needed so the customers are not disappointed.
ways of satisfying demand
- carrying out marketing research.
- compare and contrast the business against others.
- continue to be innovative.
Stimulating demand
Not just attracting customers, trying to influence existing and new customers to want to buy into the business or their p/s.
How to stimulate demand
- reduce products price at launch
- exclusively distribute the product to particular stores or to loyal customers/members.
- Only release a limited quantity of the product.
aims & objectives
aim- a long term goal that a business hopes to achieve.
objective- a short term target that helps a business achieve its overall aims.
Understanding customer needs
- look at the business from the customers pov.
- collect and analyse data on customer buying behaviour within their industry.
- conduct primary research to ask customers directly what they want.
Ways to understand customer needs:
- use a mystery shopper
- collect ad analyse data on buying behaviour using a loyalty scheme.
Conduct primary research.
what should happen when customer needs change?
- more choice available
- product portfolio increases/improves.
feedback sought from customers.
React to competitors regularly.
Stages of developing new products
1.Idea generation
2.Product development
3. Development of marketing strategy
4. Test marketing
5. Product launch
Profit
The positive amount of money a business is left with once all costs have been deducted .
Improving profitability
- selling more
- attract more customers.
- Reduce costs.
- Find cheaper supplies.
- Get brand awareness.
- Maintain customer loyalty.
Market share
The number of customers that a single business is able to attract.
Improving market share
- Attracting more potential customers.
- Keep existing customers happy.
- get customer loyalty.
- Get more power over competitors.
- Increase brand recognition.
Diversification
Entering new markets to spread risk.
Things to consider with diversification
- Lots of research to avoid risk in the future.
- Launching new p/s takes time and costs.
- might cause the businesses budget to be used/might not be enough.
- competitors may have better knowledge to diversify quicker.
Brand
Where a business has specific details, like colours, logo, packaging, so the customers can identify them and stay loyal.
Brand awareness
Customers being able to easily recognise a specific brand.
