T9. Marketing and PR Flashcards
What is marketing?
Marketing is the intermediary between the customer and the business, aiming to deeply understand the customer to develop products or services that meet their needs.
What are the fundamental concepts of marketing?
The fundamental principle of marketing is that humans instinctually seek to satisfy their intrinsic needs, which can be physical, social, or individual.
What are the two aims of marketing?
The two aims of marketing are to attract new customers by highlighting a product’s value and to retain customers by exceeding their satisfaction.
What is marketing segmentation?
Market segmentation is the process of dividing a population into groups based on shared characteristics, identified through market research. This segmentation allows companies to tailor their marketing strategies to specific groups with similar preferences, buying habits, attitudes, likes, and needs. Market research is crucial in identifying these shared characteristics within segments.
What is the target market?
The segment(s) that a firm decides to target with its marketing efforts is called the target market. This target market is exposed to a variety of carefully calibrated marketing strategies known as the marketing mix, which includes product, place, price, promotion, and people strategies.
Define Negative Demand
Negative demand refers to a situation where the demand for a product or service is less than the available supply. This means that the market is flooded with the product, and there are no willing buyers. Negative demand can be a significant challenge for businesses as it can lead to inventory accumulation, storage costs, and potential losses.
Define No Demand
No demand refers to a situation where there is no interest or need for a particular product or service. This can occur when a product is not relevant to the market or when the market is not ready for it. No demand is often characterized by a lack of consumer awareness or understanding of the product’s benefits.
Define Latent Demand
Latent demand refers to a situation where there is a need for a product or service that is not currently being met. This can occur due to various reasons such as the product not being economically feasible, the technology not being available, or the producer misunderstanding the customer’s needs. Latent demand is attractive to producers as there are willing buyers, and the market is waiting for the right product to satisfy their needs.
Define Declining Demand
Declining demand occurs when customers lose interest in a product or service due to changing attitudes, tastes, or cultural trends. This can be a significant challenge for businesses as it requires them to adapt their marketing strategies to meet the evolving needs of their target market. Declining demand can be identified by various warning signs, such as a decrease in sales, changes in consumer preferences, or shifts in market trends.
Define Irregular Demand
Irregular demand refers to a situation where the demand for a product or service is not consistent. This can occur due to various factors such as seasonal fluctuations, time of day, or the whims of shoppers. Irregular demand requires businesses to develop strategies to encourage consumers to buy during low-peak times. For example, movie theaters now offer cheaper tickets on Tuesday nights to fill seats during slower periods.
Define Full Demand
Full demand occurs when the company is selling as much as they expected the market could bear. In this situation, the demand is met, and the company does not need to make significant changes to their marketing mix. The goal is to maintain the current level of demand by ensuring the product remains competitive and relevant to the target market.
Define Overfull Demand
Overfull demand arises when the market demand exceeds the supply. This is initially beneficial for sellers as they can sell their entire inventory, and the shortage pushes prices higher. However, if left unchecked, competition will enter the market, and the company may lose its competitive edge.
Define Unwholesome Demand
Unwholesome demand refers to a situation where a product or service is harmful to society but is still demanded by consumers. Marketers in such situations aim to deter users by highlighting the negative aspects of the product, such as through shock advertising, price increases, restricted supply, government regulation, or awareness programs. Examples of unwholesome demand include tobacco, illegal drugs, and excessive consumption of alcohol.
What is Marketing myopia?
Marketing myopia is a phenomenon where marketers lose sight of what is driving the consumer’s purchasing decision: satisfying their needs. It occurs when the firm starts to market a product, not a solution to a need. In other words, they pay more attention to the product as a stand-alone object instead of highlighting the benefits and experiences a product offers a customer.
List the tasks of a marketing manager.
The tasks of a marketing manager can be divided into five main categories:
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Becoming a market expert
- Understanding the market forces that drive their respective market
- Knowing how to stimulate demand using various tools and strategies -
Acting as a communicator
- Interacting with customers to inform them about the benefits a product offers
- Listening to customers to understand which needs are not being satisfied -
Serving as a brand steward
- Overseeing the program that strengthens and enhances the image of the brand -
Functioning as a negotiator
- Learning how to negotiate deals with intermediaries that are beneficial to both parties -
Managing projects and people
- Having face-to-face contact with other members of the organization
- Overseeing projects and relying on personal values to handle ethically difficult situations
In summary, a marketing manager needs to wear many hats, from being a market expert to a communicator, brand steward, negotiator, and manager, in order to effectively perform their duties.
Define Production Concept
The production concept is a marketing philosophy that emphasizes the importance of affordability and availability of a product. It focuses on maximizing the available economies of scale by improving the efficiency of production and distribution lines. This approach is successful when the manufacturer is not the distributor and market demand exceeds supply, causing prices to rise at the retail level and incentivizing the manufacturer to increase operational efficiencies or expand operations.
Define Product Concept
The product concept is a philosophy that prioritizes the quality and performance of a product. Companies adopting this concept believe that consumers favor products that offer the most value, leading them to continually improve their products. However, this approach can lead to marketing myopia if the product becomes over-engineered, neglecting the real objective of satisfying customer needs.
Define Selling Concept
The selling concept is a marketing philosophy that emphasizes aggressive promotion to sell a product. This approach is typically used by companies that want to sell products that most people would not consider buying under normal circumstances. Companies that offer products on infomercials are a good example of businesses that employ the selling concept. This approach can lead to the misconception that consumers are easily manipulated by advertising and can result in short-term gains but ultimately harm the long-term health of the company.
Define Marketing Concept
The marketing concept is a philosophy that holds that companies must determine the needs of their consumers and offer the product in a more efficient and superior manner than the competition. This approach involves directing all operations of the business to creating and delivering the desired product. It creates a symbiotic relationship between consumers and suppliers, where businesses tie their survival to their customers, and their customers are bound to the company to satisfy their needs. Loyalty and trust form the basis of this relationship.
Define Societal Marketing Concept
The Societal Marketing Concept (SMC) is the newest marketing philosophy. It emerged from a realization that the marketing concept introduces conflicts between a consumer’s short-term wants and their long-term welfare. The SMC aims to balance the needs of the consumer with the needs of society and the environment. It recognizes that the marketing concept can drive companies to create long-term relationships with their customers but also incentivizes them to maximize short-term value, which can undermine long-term health and cause harm to society and the consumer. The SMC encourages companies to consider the broader social and environmental implications of their actions.
