Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Consumer Studies > Topic 2 Marketing > Flashcards

Topic 2 Marketing Flashcards

1
Q

Aim of marketing
(4)

A

The aim of marketing is:

  1. to find out what customers want and need (market research),
  2. make products or services that satisfy them,
  3. attract customers
  4. to increase **sales and profitability. **
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Marketing vs. Sales

A

**MARKETING **
* Focus on need of client
*Offers right product at right price
*Satisfy needs
*Deals with numbers, research, statistics and
*How, when, what and why consumers buy.

**SALES **
* Focus on sellling of product
* Part of marketing process
* Salesperson convinces buyer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Why do we need
Marketing strategies

A

Helps to develop long term plan for competitive
advantage.

*Influences whole organisation, thus:

  • Type of products made and sold
  • Sales prices
  • How to inform the consumer, and
  • Where it will be sold.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

MASS MARKETING

A

Mass marketing is a strategy where a business
1) tries to reach large, general audience
2) with everyday products

  • Example - chocolates, washing powder
  • Identify who will buy the product
  • What are the needs of this group of consumers?
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

AIM TARGET MARKETING

A

Aim: Identify target market

TARGET MARKET?

Specific group of people which have a need or
want for a specific product or service.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Target Marketing

MARKET RESEARCH

A
  • Determine specific target market who needs the product.
  • Divide into different segments.
  • Adapt to serve more than one segment.
  • Marketing strategy:
  • Analyse target market and different segments
  • Marketing mix (discussed later on*)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

MARKET
SEGMENTATION

A

Group of consumers divided into smaller groups with
the **same needs and wants ** for products and services.

**Aim: **To understand the specific needs of a group of
consumers.

Find specific groups who’s needs can be satisfied.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

5 Types of market segmentation

A

1. Geographical segmentation
* Where does consumer live
* How many people live in this area?
* Approximate amount of products that need to be
bought.
* Climate and weather
*Enough clients?

2. Demographycal segmentation
* Actual consumer E.g. age, sex, income, culture, beliefs.

3. Psychographic segmentation
* How people think and act
* Lifestyle, social class, interests and status.
* Advertisements more efficient
E.g.: Someone concerned about status, might be
influences by exotic and luxury advertising.

4. Behaviour segmentation
* How often is it used?
* Loyalty regarding product
* Price sensitivity
* Will consumer buy product?

5. Benefit segmentation
* Needs and wants of potential consumers.
* E.g.: health conscious, keeps an eye on weight,
active, social butterfly, etc.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Marketing Mix

A
  • Mix according to consumer’s needs
  • Composed of 5 P’s = 5 Elements working together to sell the:
  1. Right product
  2. To the right person
  3. At the right price
  4. In the right place
  5. With the right promotion.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

5 P’s = 5 Elements of Marketing Mix

What is the aim of the Product policy

A
  • Determine core business: product or service focussed
    upon.
  • Can make / sell a variety of products

Examples: Unilevers, Tigerbrands

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

5 P’s = 5 Elements of Marketing Mix

Two Important factors in product policy

A

1. Suitability
* Suitable for purpose
* Satisfies needs
* Suitable name, size, colour and cost

2. Quality
* Quality suitable for purpose
* Long term/short term quality
* Brand name

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

5 P’s = 5 Elements of Marketing Mix

4 Ways in which Product Quality can be determined

A

Determined by:

1. SABS mark ofapproval (South African Bureau of Standards)
Tests products and gives approval if adhering to standards.

2. Labels
Sell-by-date, ingredients and fibre content of textiles

3. Specifications
What can product do?

4. Product samples
Gives idea of quality / usefulness
E.g. Washing powder sample in magazines

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

5 P’s = 5 Elements of Marketing Mix

Place
What does the distribution policy refer to?

A
  • Refers to distribution policy of business.
  • Flow of products from manufacturer or farmer to the
    consumer.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

5 P’s = 5 Elements of Marketing Mix

  1. Important factors in Distribution Policy
A

How are you distributing to your conumer

1. Shops (formal sector)
* Manufacturers
* Whole salers
* Smaller retailers

2. Mail orders (formal sector)
* Advertising
* Includes order form and contact details
* Product delivered after payment is received

3. Electronic marketing (formal sector)
* Television & internet marketing
* See products
* Very competitive
* Some supermarkets offer internet shopping

4. Informal sector
* Small, unregistered businesses
*Examples: *
- Shebeens
- Hawkers
- Market stalls
- Home industry like sewing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

5 P’s = 5 Elements of Marketing Mix

Price policy
Calucting price depends on 4 factors.

A

Calculating price depends on:

  • Quality
  • Amount that target market can afford
  • Competitor’s prices
  • Discount
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

5 P’s = 5 Elements of Marketing Mix

2 Important factors in
Price Policy

A

1. Retail price
* Covers cost of product
* Covers overhead costs (e.g. rent, salaries and insurance)
* Makes a profit
* Competitive price
* Some prices are fixed, such as bread

2. Discount
* Offers product at lower price

17
Q

4 Types of discount:

A

Quantity discount
When buying large amounts.

Seasonal discount
Left-over stock at end of season.

Trade discount
Special customers – good relationship.

Cash discount
To encourage earlier payment of accounts.

18
Q

5 P’s = 5 Elements of Marketing Mix

What is a Promotion policy

A

Refers to communication with customers

19
Q

5 P’s = 5 Elements of Marketing Mix

3 Types of promotions

A

1. Advertisements
* Involves many people
* Cost determined by chosen medium

2. Personal sales
* Sales personnel or sales representatives
* Very convincing
* Examples
- Staff member introducing new product at entrance of shop
- Sales representative announcing promotion regarding
product or service over intercom.

3. Sales promotions
* Short term incentives encouraging people to buy product or service.
* Examples
- Samples
- Displays
- Demonstrations
- Competitions
- Discount coupons

20
Q

5 P’s = 5 Elements of Marketing Mix

People policy

A
  • Handle target group correctly
  • Happy clients spread the word – good marketing
  • Always be concious of image portrayed
  • Poor client service leads to poor publicity
  • Handling complaints effectively & solving them:
  • staff
  • suppliers
  • clients
21
Q

4 things that make advertisements effective.

A
  • Advertisements have a positive or negative influence on consumers
  • Carries a message
  • Important that message is interpreted correctly
  • AIDA-principle
22
Q

AIDA - model

A

Attention
Interest
Desire
Action

23
Q

AIDA

AIDA - Attention

A

**A = Attention
**
- Catches the eye
- Draws attention
- Use colour, illustrations, catch-phrases, music, humor, text to draw attention

24
Q

AIDA

AIDA - Interest

A

I = Interest
- Interest created – draws in consumer
- E.g. stressing advantages or new qualities of product

25
Q

AIDA

AIDA - Desire

A

D = Desire
- Desiring product
- Convince consumer the product will satisfy need or want
- E.g. using images or text to emphasise status

26
Q

AIDA

AIDA - Action

A

A = Action
- Consumer acts – buys product or service
- Use action words like: “Buy NOW” or “Do not wait” .
- Advertisement must inform consumer where product / service can be bought.

Consumer Studies (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions