Term 3 Topic 3.3 - Marketing function Flashcards
Name the 5 ACTIVITIES of marketing
1) Production
2) Pricing Policy
3) Distribution
4) Marketing Communication
5) Foreign Marketing
Name the 6 P’s of MARKETING
P / P / P / P / P / P /
1) Product
2) Promotion
3) Place
4) Price
5) Presentation
6) Personnel
Name the ELEMENTS of marketing
Locating the customer **
Standardising and grading **
Storage **
Transport **
Financing **
Risk bearing **
Buying & Selling **
Explain PRODUCT POLICY
> > Product DEVELOPMENT
>Product DESIGN
»Product PACKAGING
»>Trademark
Explain DISTRIBUTION POLICY
\\ CHANNELS of distribution
\\\ Intermediaries
\\\\ DIRECT distribution
\\\\\ INDIRECT distribution
Explain COMMUNICATION POLICY
Sales promotion
**Advertising
**Publicity
**Personal selling
Explain PRICING POLICY
..IMPORTANCE of pricing
… pricing TECHNIQUES
…. price DETERMINATION
……FACTORS influencing pricing
…….. price ADJUSTMENTS
The PRICING POLICY is divided into 2 sections, namely
1) Pricing techniques
2) Pricing determination
Name 4 TECHNIQUES for pricing
Cost-plus pricing
## Mark-up pricing
### Target pricing
#### Break-even pricing
What DETERMINES pricing?
a) cost price
b) market price
c) target price
d) final price
‘No employment contracts and no taxes paid’ = which sector does this belong to?
Informal sector
‘Formal employment with contracts and taxes paid by earners and business’ = which business sector does this belong to?
Formal sector
Marketing in the BUSINESS SECTORS consists of 2 sectors. Name them
1) Informal sector
2) Formal sector
Explain the TYPES of TECHNOLOGY used in marketing (4 types & mention an example of each)
1) Communication (email, cell phones)
2) Computers (email, e-marketing)
3) Media (TV, Radio’s, Electronic billboards)
4) Virtual images (3D reality imaging)
Foreign marketing consists of TWO sections, name them:
….(a)…. + …(b)…… = Foreign Marketing
a) Imports
b) Exports
What are the ADVANTAGES ++ of foreign marketing?
+ Reaches a larger TARGET market
++ Increase PROFITS
+++ Different TIME ZONES means business
never stops
++++ Benefit from advanced SYSTEMS in
DEVELOPED countries
+++++ Does not rely on LOCAL demand
What are the DISADVANTAGES – of foreign marketing?
- EMBARGOS (ban on trade) from certain
countries could limit imports
– Some imports have higher TAXES
— Import QUOTA (limits how many goods
can be imported)
—- EXCHANGE RATES : could be costly
—– Cost of TRANSPORTATION could be
costly if it must be couriered
——Goods can be DAMAGED (carrying the
costs)
——–INSURANCE on posted goods
(additional cost)
How do you ALIGN the production function with the foreign market?
a) Sell EXISTING products on foreign market
b) ADAPT EXISTING products to suit the
foreign market
c) Produce brand NEW products
What is the production processes which need to be adapted for the foreign market? It all affect PRODUCTION PROCESSES
@ Production SYSTEMS
@ Production PLANNING
@ Meeting a country’s SAFETY
REQUIREMENTS
@ QUALITY of product to compete with
foreign products
@ COSTING of products must be
competitive
List the FOUR stages of a product’s life cycle
Introduction -> growth -> maturity -> decline
Is this statement TRUE or FALSE (If false, provide the correct statement)
Demographics are the measured statistics of a population, e.g. the ages, gender and income levels of a group of people
True
Is this statement TRUE or FALSE (If false, provide the correct statement)
Standardisation is the process of giving a rating or label to a product to show its quality
False - it is called grading
Is this statement TRUE or FALSE (If false, provide the correct statement)
A trademark is a label on a package that states what goods it contains
False - a trademark is a specific logo or symbol that defines a product and that only the owner of that product may use
Is this statement TRUE or FALSE (If false, provide the correct statement)
Direct distribution is done when a manufacturer uses an intermediary to sell goods to consumers
False - this is indirect distribution
Is this statement TRUE or FALSE (If false, provide the correct statement)
Advertising is sending out a message about a product so that consumers will be interested and buy the product, thereby increasing sales.
True
Name 2 advantages of DIRECT DISTRIBUTION
A) Better profits
B) Demonstrates a product to the
consumer
C) Ensures a product’s best qualities are
explained during selling
Name 2 advantages of INDIRECT DISTRIBUTION
A) Larger market base
B) The manufacturer paying for the advertising
C) Enables consumers get a wider range of products to choose from
D) Generates a large customer database
Explain how the AIDA principle should be applied in advertisement
A - ATTENTION of the customer is achieved
I - INTEREST from the customer in the
product is created
D - DESIRE of the customer to want that
product is instilled
A - ACTION occurs when the customer
comes to your store to buy the product
Explain how the 4 different PRICING TECHNIQUES are applied in business
COST-PLUS PRICING:
adding a fixed amount to the cost price to determine the selling price
MARK-UP PRICING: %
adding a percentage % of the cost price to the cost price to determine the selling price
TARGET PRICE :
setting a fixed price so that a required profit value can be made
BREAK-EVEN PRICING : =
setting a price above a calculated break-even point
Give a definition of:
When a product comes on the market a at a high price and is then slowly reduced
Price skimming
Give a definition of:
When a product comes on the market at a very low price so that everyone buys it, and then the prices shoot up
Penetration pricing
Give a definition of:
When goods are advertised at very low prices to get people into the store, often with a very limited number of goods, so that people can buy other more expensive items while shopping
Bait prices
Give a definition of:
When goods are advertised at a special low price even if the seller doesn’t make a profit
Leader pricing
Give a definition of:
When prices are set to match current market prices
Market-level pricing
Give a definition of:
When the price of a unique good is very high because there is no competition
Premium pricing
Give a definition of:
When prices are set just below a higher number, such as R99 or R999, so that it looks cheaper to many consumers
Psychological pricing
Give a definition of:
When prices of goods change according to season, demographics or cultural factors
Variation pricing
