Primer Parcial 4 Semestre Flashcards
Are essential necessities that all humans must have to survive
Needs
Are human desires; things that people would like to have
Wants
Exists to address people’s needs and wants
Marketing
Supply the right products, set the correct price, place products conveniently and effective promotion are…
The four main objectives of marketing
Process involved in identifying, anticipating and satisfying consumer requirements profitably
Marketing
Marketing approach used by businesses that focuses on making products that they can sell, rather than selling products that they can make. It cares about the customer.
Market orientation
Greater flexibility and lower risk are…
Advantages of market orientation
Market research can be very expensive. This is…
A disadvantage of market orientation
Marketing approach adopted by businesses that focuses on selling products that they make instead of making products that they can sell. Hi-tech products belong to this orientation.
Product orientation
Quality can be assured and the firm has more control over its operations are…
Advantages of product orientation
High failure rate and high risk are…
Disadvantages of product orientation
Use of marketing strategies to meet the needs and wants of customers in a profitable way. Provides customers what customers want, when they want it and where they want it.
Commercial marketing
The planning and implementation of programs designed to bring about social change using concepts from commercial marketing. Uses mainstream marketing methods to achieve benefits of social change.
Social marketing
Place or process whereby customers and suppliers trade. It exists where there is demand for a particular product and where there is willingness from businesses to supply this products.
Market
Markets that cater for private individuals (general public)
Consumer markets
Markets that cater for organizations (government and businesses)
Industrial or producer markets
Refers to an organization’s portion of the total value of sale revenue within a specific industry. It is measured by expressing the firm’s sales revenue as a percentage of the total sales revenue of the industry.
Market share
Firms with the largest market are known as…
Market leaders
Measures the degree of competition that exists within a market by calculating the market share of the largest few firms in the industry. The sum of the market shares is known as concentration ratio.
Market concentration
Document outlining a firm’s marketing objectives and the marketing strategies to be used to achieve these objectives.
Marketing plan
Review of the current position of a firm’s marketing mix in terms of its strengths, weaknesses, opportunities and threats
Marketing audit
Systematic process of devising marketing objectives and appropriate marketing strategies to achieve these goals
Marketing planning
Improvement of a firm’s chances of success, clearer idea of the organization’s objectives and allows marketing managers to have better control of the organization are…
Advantages of marketing planning
Small firms don’t have the time, resources or expertise to do it and it might be outdated quickly are…
Limitations of marketing planning
Combination of various elements needed to successfully market a product. Used to review and develop marketing strategies and is at the heart of marketing planning. Is known as the 4Ps
Marketing mix
What are the 4Ps?
Product, price, place and promotion
Refers to the good or service being marketed
Product
Refers to how much customers have to pay to buy the product
Price
Refers to the methods of informing, reminding and persuading customers to buy a product
Promotion
Refers to the distribution channels used to get the product to the customers
Place
Industrial products sold to other businesses to further the production process
Producer products
Products sold to the end user (private individuals)
Consumer products
Targets that the marketing department wishes to achieve
Marketing objectives
Market share, market leadership, product positioning, consumer satisfaction and high market standing are…
Marketing objectives
Refers to a distinct group of customers with similar characteristics and similar wants or needs.
Market segment
Refers to each distinctive market segment having its own specific marketing mix
Targeting
Are the demographic and psychographic characteristics of consumers in different markets (age, gender, occupation, income, religion, status and habits).
Consumer profiles
Better understanding of customers, higher sales, growth opportunities and support for product differentiation are…
Market segmentation advantages
Type of segmentation by characteristics of the human population within a certain area, country or region. This includes age, gender, race and ethnicity, marital status, religion, language and income.
Segmentation by demographics
Type of segmentation that takes in count the location of customers and climate of a certain region.
Segmentation by geographic factors
Type of segmentation that considers emotions and lifestyle of customers. This includes hobbies, interests, values, religion, status and culture.
Segmentation of psychographic factors
Targets a specific and well-defined market segment
Niche marketing
Refers to undifferentiated marketing. Strategy that ignores targeting individual market segments
Mass marketing
Better marketing focus, less competition and highly specialization in meeting the needs and wants are…
Advantages of niche marketing
Small markets, few opportunities to exploit economies of scale and endangered survival of businesses are…
Disadvantages of niche marketing
Gain from huge potential economies of scale, no need to modify marketing strategies, bigger customer base and more profits are…
Advantages of mass marketing
Not suitable for all businesses, fierce competition, lack of focus and wasteful are…
Disadvantages of mass marketing
Visual tool that reveals customer perceptions of a product or brand in relation to others in the market.
Perception map (or product positioning map)
Products of high quality and high price
Premium products
Products of low quality but at appropriate prices
Economy products
High quality products with low products
Bargain products
Low quality products with high prices
Cowboy products
Helps businesses to refine their marketing strategies, simplicity, quick and easy to interpret and inform about opportunities and threats are…
Advantages of perception maps
Is any aspect of a business, product or brand that makes it stand out from those offered by competitors
Unique selling point (USP)
Act of distinguishing a business or its products from rivals in the industry
Differentiation
Price advantages, brand recognition, loyalty and distribution advantages are…
Advantages of differentiation
Expensive, economies of scale and excessive differentiation are…
Disadvantages of differentiation
Form of non-price competition that focuses on the ways in which a product is presented to the customer
Packaging
Refers to the image portrayed by a business regarding its observable and tangible features
Physical evidence
Part of the extended marketing mix which refers to the methods and procedures used to give clients the best possible experience
Process
Marketing strategy that involves changing the market’s perception of a firm’s product or brand in comparison to rival firms
Repositioning
Refers to marketing activities designed to discover the opinions, beliefs and preferences of potential and existing customers
Market research
Takes place on an ‘as and when necessary’ basis. Focuses on specific problems or issues and tends to be on a one-off basis.
Ad hoc research
Research that takes place on a regular and ongoing basis
Continuous research
Market research that involves gathering new data first-hand for a specific purpose
Primary market research
Document that contains a series of questions used to collect data for a specific purpose. Is the most common method of primary research.
Survey (or questionnaire)
Relevance, up to date, confidential and unique are…
Advantages of primary research
Time consuming, costly and misleading results are…
Disadvantages of primary research
Type of primary research that involves one-to-one discussions between an interviewer and interviewees to investigate their personal circumstances and opinions.
Interview
Type of primary research that involves small discussion groups to gain insight into the attitudes and behavior of respondents
Focus groups
Method of primary research that involves watching how people behave and respond in different situations
Observations
Involves the collection of second-hand data and information that already exists
Secondary research (or desk research)
Method of secondary research that reveals the characteristics and the outlook (trends) for a particular product or industry
Market analysis
Method of secondary research that involves publications from educational and research institutions
Academic journals
Type of secondary research in which the government publishes information
Government publications
Type of secondary research that involves newspapers, journals, television documentaries and books
Media articles
Cheaper and faster to collect, provides an insight to changes or trends and huge range of sources are…
Advantages of secondary research
Results might be outdated, inappropriate format, only provide partial information and available to competitors are…
Disadvantages of secondary research
Market research that involves getting non-numerical answers and opinions from respondents. Its main purpose is to understand behavior, attitudes and perceptions of others.
Qualitative market research
Market research that relies on a much larger number of responses to get ‘hard’ answers (measurable information rather than opinions).
Quantitative market research
Information gathered is very rich, inexpensive, respondents are not under pressure and honest answers are…
Advantages of qualitative research
Findings might not be representative, time consuming and validity is questionable are…
Disadvantages of qualitative research
All the potential customers of a particular market make up the…
Population
Refers to selecting a small group of the population for a particular market for primary research purposes
Sampling
Is the most commonly used sampling method in which a certain number of people (known as quota) from different market segments is selected. They share characteristics such as age, gender or occupation
Quota sampling
Reliable findings and relatively representative sample can be obtained are…
Advantages of quota sampling
The number of people interviewed in each segment is not always representative of the population is…
A disadvantage of quota sampling
Involves giving everyone in the population an equal chance of being selected for the sample. The respondents are randomly chosen by a computer using a database
Random sampling
It is quite easy to get a sample. This is…
An advantage of random sampling
It is indiscriminate (it might choose people who aren’t part of the target group due to randomness). This is…
A disadvantage of random sampling
The population is divided into segments (known as stratum). It chooses a number of respondents from each stratum that is proportional to the population and then randomly selects them as the sample.
Stratified sampling
Sample are more representative. This is an…
Advantage of stratified sampling
Difficulty to select relevant strata and expensive are…
Disadvantages of stratified sampling
Used when getting feedback from respondents involves too much time, traveling or money
Cluster sampling
It is quicker, easier and cheaper than other methods of sampling. This is an…
Advantage of cluster sampling
Bias and sampling errors. This a…
Disadvantage of cluster sampling
Refers to market research carried out with individuals who then suggest to other friends, family members or colleagues to increase the sample size
Snowballing
It is cheap and easy to enlarge the sample. This is an…
Advantage of snowballing
Uses subjects that are easy (convenient) to reach
Convenience sampling
Ease of data collection is an…
Advantage of convenience sampling
Market researchers exclude a large proportion of the population is a…
Disadvantage of convenience sampling
