Section A - Principles And Purposes Of Marketing Flashcards
What is BOGOF
Buy one get one free
What is market share
The percentage of a given market that a business holds. It leads to meaning more customers.
What is brand personality
Human characteristics to which a customer can relate, especially if similar to their own
Define marketing
Marketing involves understanding the customers needs and ensuring they hate are the most important thing to the business. Marketing is NOT just selling or advertising.
What is the role of Marketing in a business?
(Marketing helps business to…..)
- build their image reputation
- develop customer loyalty
- gain/increase market share
- launch a new product
- develop brand recognition
- develop/sell the right products to meet customer needs
principles and purposes of marketing
What is anticipating demand
Predicting the amount of sales in the business
principles and purposes of marketing
What is recognising demand
Acknowledging the existence and legality of the business/product and keeping up to date with what competitors are selling
principles and purposes of marketing
What is stimulating demand
Creating or enhancing demand, businesses find ways of promoting their brand through advertising.
principles and purposes of marketing
What is satisfying demand
To fulfil the requirements for something, ensuring stocks and capacity are sufficiently available to meet any demands
marketing aims and objectives
Why is understanding customer wants and needs important
Wants = luxury
Needs = food and water
Understanding = getting to know the customer
————
It is important because they can anticipate their customers needs and exceed their expectations. The marketer needs to differentiate between needs and wants to promote products effectively and identify the key features they should be marketing
marketing aims and objectives
Why is developing new products so important
It can provide businesses with customers ideas to help them expand their range. Once a business has developed a new product to sell to existing customers, the business will increase their sales.
marketing aims and objectives
How can the marketing department help improve profitability
By reducing/increasing cost - a business can improve profitability, a brand name makes it possible to sell at an expensive price - which marketing helps establish
marketing aims and objectives
How could marketing improve market share?
They could create new products, promote their existing products, recuse their prices, or find new channels of selling. This will increase the market share.
marketing aims and objectives
Why is increasing market share so important
You get an increase in customers which means more sales for a business = more profit
marketing aims and objectives
What is diversification
Where a business markets new products which differ from its usual products.
Overall it is making and selling more than one thing in different industries
marketing aims and objectives
Why would business diversify
To attract more customers
marketing aims and objectives
Why is diversification so important
More people are pulled into the products and more sales are made. This increases your market share.
More money is made in certain industries which covers the ones not making any money - overall covering the companies risk.
marketing aims and objectives
Why is increased brand awareness and loyalty so important
Customers want to buy from a brand with loyalty and confidence. Overall it creates repeat purchases and word of mouth recommendation
types of market
Define mass market
A mass market is the largest market possible for a product. This concerns products that are aimed at the general population
Eg. Cars
types of market
Define niche market
A niche market is a small market that aims to meet specific user needs. Eg. Polish food
types of market
What is market segmentation
Market segmentation is the process of dividing an entire market up into different customer segments based on age, income, gender, ethnicity, etc.
Why would a business offer a range of products
To satisfy the different needs of customers to gain more sales
Why is branding important
Branding is important because it makes a business distinctive and memorable. This enables it to stand out from it’s competitors
Define brand dimensions
Include components
These are the components that make the brand distinctive and give it identity. They make it instantly recognisable and reinforce its image in the mind of consumers.
- Logo
- celebrity endorsement
- symbol
- colours
- images
What are the steps to creating a distinctive brand
- Choose an appropriate name
- Choose a symbol/use a logo type (distinctive lettering) for the name
- Decide on brand colours for packaging, posters and stationary
- Have images or endorsements to reinforce the brand identity
What are the 4P’s and 7P’s
4P’s:
- product
- price
- promotion
- place
7P’s:
The above and;
- process
- physical environment
- people
The target to achieve aims; objectives must be…..
(SMART)
Specific
Measured
Achievable
Realistic
Timed
What is brand personality
Brand personality is having human characteristics that a person can relate to.
It can help achieve marketing objectives such as gaining market leadership and raiding customer awareness
Successful marketing can be achieved by….
- understanding customers wants and needs
- developing new products (diversification)
- improving profitability by reducing costs
- increasing market share
- increased brand awareness and loyalty
What is USP
Unique selling point
A brand can portray a USP to gain market share over their competitors and stand out from the crowd
What are the implications of business size on marketing activity
There are many implications for marketing that are influenced by the size of the business:
- the possibility of product development to meet customer needs and whether this is profitable will depend on having enough employees. The business also needs to have the capacity and resources to develop
- the elimination of products or services which no longer meet requirements and are not financially viable
- marketing methods for promoting branding need to be cost effective
- changes to branding can make excessive demands on a limited workforce
What are budgetary constraints
All marketing plans should be based on a budget to ensure the business does not overspend and justify its expenditure
What can a business do if they do not have the availability of specialist staff
- Hire external support specialists
- Change their intentions and their ways of marketing to adapt to their own resources available
Define strapline
A caption of heading often providing a brief and snappy overview of a product, service, or news story
Define disposable income
The amount of extra money left over after paying for essential items/expenses
Geographic (Location) is a type of market segmentation. Explain the segments key characteristics
- Splitting up the market by the location of potential customers
- businesses can choose to alter their product offering according to location
Demographics is a type of market segmentation. Explain the segments key characteristics
- based in characteristics of the target market; age, gender, race, religion, sexual orientation
Behaviour and lifestyle is a type of market segmentation. Explain the segments key characteristics
BEHAVIOUR
- relates to consumer buying behaviour and how it varies between industries and specific segments of the market
- how often people purchase
LIFESTYLE
- focused on hobbies and interests of people
Income is a type of market segmentation. Explain the segments key characteristics
Focused on how much the average income is and how much is disposable
What are the internal influences in a business (things within the business that can influence the marketing of the business)
Hint: ACES
- availability of finance
- cost of campaign
- expertise of staff
- size and culture of the business
= ACES
What are the external influences in a business marketing (the less controllable ones)
Hint: PESTLE
Political eg. Brexit, new laws and PMs
Economical eg. Inflation, taxes, cost of living
Social eg. Baby boom, aging population, health, war, immigration
Technology eg. AI, social media, advances like robots
Legal eg. Brexit, employment and shipping laws
Environmental/Ethical eg. Natural disasters, war, ethical = laws
