SCP Flashcards
what is a segment
a group of consumer (people)
why would we segment a market
there might be different needs
what is marketing about
fulfilling needs and wants
why did segmentation come into existence
every buyer is different, its easier to produce your products for a group instead of for the individual.
if you don’t segment, your competitor will do it for you
What is the nature of marketing
The very nature of marketing is often misinterpreted. Some think that marketing is a modern form of selling, or that it is simply another word for advertising. Selling and advertising are indeed important marketing functions, but marketing involves much more. It includes a great number of other activities that enhance an organisation’s ability to satisfy the needs and wants of its customers effectively, thereby strengthening its position within the market. These other activities include market research and product development. Market research is conducted to identify the desires of (potential) customers, for example, or to size up the competition. Product development is the process of developing and launching attractive products based on an accurate insight into the market.
What is the difference between selling and marketing
The difference between marketing and selling is the difference between a society in which consumers can choose from products and services designed to meet their specific needs and wants, and a society in which people have very little if any choice.
what is the main purpose of marketing oriented companies
The main purpose of marketing-oriented companies is to anticipate and satisfy the needs and wants of the customer. Rather than focusing first and foremost on the product, managers of these companies constantly seek to identify with their customers. They have become accustomed to thinking from the point of view of the consumer.
Selling vs Marketing in short
In short, selling is ‘trying to get rid of what you have on the shelves’, while marketing is ‘making sure that what you have on the shelves is what the customer wants’.
what is the objective of marketing
Essentially the objective of marketing is to make selling — in the sense of putting pressure on others — unnecessary
what is the purpose of marketing
The purpose of marketing is to get to know and understand the customer so well that the product is precisely what the customer wants. Then the product will sell itself. In fact, the need to be familiar with the desires of customers and to establish an ongoing relationship with them is part of our definition of marketing.
what makes up the marketing mix
So marketing requires not only an appropriate product, but also the right type of distribution, the right price and the right kind of promotion. Together these factors make up the so-called marketing mix
what is the process of marketing
Marketing is the process of developing, pricing, promoting and distributing products, services or ideas that are tailored to the market; it includes all other activities that create value and systematically lead to increased sales or another desired response, establish a good reputation and ongoing relationships with customers, so that all stakeholders achieve their objectives
a different name for marketing mix
the 4 p’s
what is product strategy concerned with
product strategy is concerned with, among other things, the development of new products and services, the refinement of existing products, and the decision to take products off the market when they no longer satisfy a need.
what is the price
Price: the amount of money exchanged for a product or service.
How do companies develop a price strategy
When developing a price strategy a company will consider not only the product’s manufacturing cost, but also the prices being charged by its competitors and how an increase or reduction in the selling price is likely to affect demand. If the price is too high it will deter customers, but if the price is too low, revenues will suffer
What is the place (distribution)
Place (‘Distribution’): how the company gets its product into the buyers’ hands
what is distribution stratergy concerned with
Distribution strategy is concerned with decisions about which distribution channels and intermediaries (the wholesale and retail trade) should be used, the number of sales outlets, the necessary stock levels and best forms of transportation (physical distribution). An efficient distribution system ensures that the right products are on sale in the right place at the right time.
what is promotion
Promotion: the supplier’s activities to communicate with the market and to promote sales.
Very few products sell themselves. Potential buyers first have to be made aware of the product and its benefits. Effective communication is needed to inform, persuade or — in the case of established brands — remind them of a product
what are the four c’s
- Customer solution: the solution for the customer
- Cost to the customer: value for money
- Convenience: ease for the customer
- Communication: mutual communication between the organisation and the customer
what is the purpose of a well thought out marketing mix
A well thought-out marketing mix increases the chance of success. However, because it is impossible to devise and implement a marketing strategy satisfying the needs of all consumers, companies must concentrate on the desires of a specific group of potential buyers
what is this group of consumers called
This group of consumers is known as the target market, the part of the market that an organisation concentrates on and wants to turn into customers. Customers, after all, are loyal consumers who will make repeat purchases.
wat is macro marketing
If, rather than looking at marketing from the point of view of the individual company, we see it — at a broader level — as a process that must function effectively for a society as a whole to realise its economic objectives, we are talking about macromarketing
wat is meso marketing
So far we have distinguished two different approaches to the study of marketing: macromarketing and — what is commonly referred to as — micromarketing. Mesomarketing occurs at a level that lies between the two. This form of marketing is best analysed within the framework of the supply chain.
what is a supply chain
supply chain: the series of persons and organisations — from the original manufacturer to the consumer — involved in the production, distribution and consumption of products and services. If these individuals and organisations in the supply chain organise marketing activities, they do so at the level of mesomarketing.
Define mesomarketing
We can now define mesomarketing as all activities developed by several collaborating organisations within a supply chain or sector to match supply and demand and meet a certain need, in order to realise their shared marketing objectives.
whats the difference between macro meso and micro marketing
While macromarketing refers to society as a whole and meso marketing refers to collaborating organisations in the supply chain, the focus of micromarketing is the individual firm.
Explain the development of the marketing mindset
Focusing on the customer when developing a strategy seems so logical that we might wonder why companies ever did anything else. Until shortly after the Second World War, however, most products were so scarce that there was no major competition. So there was no real incentive to adapt products to the wants of the consumer. Most manufacturers sold everything they were able to make and put forth no effort to offer products that the consumer might prefer.
Whats the difference between product orientation and market orientation
The difference between the two is that marketing entails an integrated plan. Selling is but a component of this overall marketing plan. Other elements of the marketing plan encompass the product, distribution, communication and pricing strategy. Finally, a firm practicing the marketing concept continually monitors the market and seeks feedback, to determine not only how well the product is selling in different market segments, but also to learn the degree to which it satisfies the needs and wants of the customers. This allows the firm to quickly develop new or improved products that are in line with new trends and customer preferences. Also, this approach helps the marketer establish and maintain an ongoing relationship with his customers, and thus to engage in relationship marketing
explain relationship marketing
Companies have been driven to take customer-orientation one step further and actively cultivate good relationships with customers, as they need to retain value. Similarly, companies are working to strengthen long-term relationships with suppliers.
Relationship marketing involves a strategy completely different from simply creating an exchange process between the supplier and the buyer. The emphasis is on developing long-term relationships with customers and suppliers who add value to the collaboration for all parties involved. Therefore we are also seeing more and more strategic alliances and other forms of cooperation within the market.
What does customer affairs involve beyond a ‘money back’ guarantee or a polite letter in response to a complaint?
It is everything an organisation does to maintain good relations with its customers. The customer affairs or customer service department should:
- Anticipate the wants and needs of customers.
- Provide useful information about the products and services.
- Assure that the product or service is easy for customers to use.
- Determine how satisfied customers are with their purchases.
- Maintain contact and develop relationships with buyers.
- Deal with complaints and solve customer problems in the best possible way.
explain needs
Before there can be demand for a product or service, the consumer first has to be aware of his needs. Needs have to do with a shortage of something and with a person’s strong — almost instinctive — inclination to relieve this shortage. There is little, if anything, a company can do to influence such fundamental behavioural stimuli. In other words, marketers do not create needs! This is true of physical (innate) needs (such as thirst) as well as psychological needs (such as the need for recognition). Psychological needs are greatly influenced by culture. For instance, affluent Western societies devote more attention to needs relating to physical health and mental wellbeing than other cultures.
explain wants
Needs can be satisfied by more than one product. Once a consumer becomes aware of a need and considers the available alternatives, he will usually develop a preference for a certain product. This is the product he wants.
In choosing between similar products, the consumer will consider factors such as time, place and money. He has to decide when and where he will buy the product and how much he is willing to spend on it. In this stage, advertising and other marketing efforts can influence his wants. Wants are also referred to as desires or preferences
what is a company reputation
An organisation develops a certain reputation — the image that buyers have of the organisation and its products or brands — through what it does in comparison with competitors. To make a positive impression on the consumer, a company has to do more than simply sell quality products. It also has to offer buyers excellent service in the long run. Once customers are not only satisfied, but also enthusiastic, will they most likely favour the organisation. That is how a company creates a great reputation.
Just as a doctor is valued by a patient when he gives him a prescription and then calls two days later to see how the patient is doing, the company has to do everything it can — through sponsorships, publicity, campaigns or personal contact — to reassure the customer that his confidence in the company is well placed. Appreciation is the basis of a good reputation and creates the climate for a good relationship between the two parties.
relationship with the consumers
To create a bond with their customers, firms try to expand and deepen their communication with the customer. This increases loyalty. If you are able, for instance, to discuss many different topics with your hair dresser, it is far more difficult to break off your relationship with him
what is Customer equity
Customer equity is the financial value of the relationships the company maintains with its customers. This includes both the profits from first-time customers and the expected profits from future sales to these new and to existing customers. Customer equity can be increased by:
- Reducing the cost of getting new customers
- Retaining more customers longer
- Increasing profits from retained customers by selling them more products at higher margins and with lower marketing costs.
A company’s customer equity is the total lifetime value of all customers.
