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business y12 > topic 2 marketing > Flashcards

topic 2 marketing Flashcards

1
Q

intro to marketing

A
  • undertaken by bus regardless of size to generate sales by satsifying customer needs & wants
  • w/o customers unaware of product’s existence regardless of revolutionary qualities
  • if dont market products successfully, fail and many insignificant items can becoming best selling essentials from marketing plan
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2
Q

role of marketing (Define)

A

system of interacting activities to plan, price, promote and distribute products to present potential customers
* wide range of goods, services, ideas
* place customer at centre of marketing activities, socially responsible, build LT cost effective relationships
however selling activities salespeople assist customer buying decisions, small part of marketing process
* advertising only 1 part of promotion strat

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3
Q

strategic

A

LT, broad aims affecting OMFH, managers each function contribute to strategic plan of bus

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4
Q

strategic role of marketing g&s

A

develop combo of strats to maximise sales, increase brand awareness and improve customer satisfaction for profit maximisation
* develop marketing plan –> marketing campaign to develop custoemr awareness & demand, form customer base

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5
Q

3 reasons why marketing plan should be ST and LT focus to achieve profit maximisation

A
  1. outlines strats to bring buyer & seller together. identify:
    * where market is
    * who will buy product
    * why they’ll buy product
    * how often they’ll buy product
  2. satisfy existing customer wants –> repeat sales
  3. marketing is revenue-generating activity for every bus, achieve until sale made
  • based on careful research & design, customer always central focus to create and maintain customer base
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6
Q

interdependence of marketing with other key bus functions

A
  • embraced by all employees
  • ensure success of markeitng plan by working with other managers
    eg. marketing costs money and finances need to be available for expensive marketing campaign
  • work with HR manager to ensure right staff employed to create desirable g/s to customers
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7
Q

marketing concept

A

all sections of bus to satisfy customer needs & wants while achieving bus goals
* direct plans for customer satisfaction
* integrate in all aspects of bus

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8
Q

production appraoch 1820s to 1920s

A

bus focus on producing g&s
* industrial rev created surge of industrial output, demand for goods & some services exceeded production capabilities, could sell all output
* prod design based on demands of mass prod than customer needs & wants, production-oriented
* marketing simply take orders and deliver products

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9
Q

selling approach 1920s to 1960s

A

emphasise selling (increased comp), stimulate demand for g&S by spending on advertising, using new developed electronic communication systems eg. radio, film
* prod more efficient, ^ productivity, output slowly caught up with demand
* high wuality, mass produced products on market, comp increased
* basic needs satisfied, need to develop sales-oriented marketing appraoch to beat the comp and gain new customers
* challenge of persuading customers to buy their brand, trained & hired sales representatives
* most bus neglected wants of target market, produced what company could make and get sales representatives to create demand
* assume making superior product at right price & aggressive sales tactics could persuade ppl to buy what they offered instead of competitor

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10
Q

marketing approach 1960s to present

A

marketing appraoch find out what customers want through MARKET RESEARCH and satisfying need
* shifted from focusing on prod/pressuring products to consumers and placed customer at centre of marketing activities
* had discretionary income (disposable income after purchasing necessities) to satisfy wants w/ diff g&S
* developed a marketing concept, satisfying customers PRIOR to production, responsibility of all employees

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11
Q

marketing concept

A
  • customer oriented
  • aimed to satisfy custoemrs
  • integrated in bus plan to achieve goals
  • aim to develop LT relations w/ customers
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12
Q

customer orientation as key in marketing approach

A

collect info from customers and base marketing decisions & practices on customer wants
* key principle of marketing approach
* customer relationship begins with a sale, exceed expectations to maintain high lvls customer satisfaction
* everything done directed towards customer loyalty, positve relationships

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13
Q

relationship marketing in marketing approach

A

develop LT CE relations w/ ind customers
* keep existing customers satisfied
* prioritise customer retention, continual satisfaction
* customer loyalty to generate repeat sales through reward programs, customer care, after sales service

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14
Q

societal marketing approach 1970s to present

A

emphasise social responsibilities, sustain LT success develop marketing strat to maintain & improve wellbeing of customers & society
* balance 1. consumer wants
2. bus profits, 3. society’s long term interests
* unethical practicies of companies publicised
* growing concern for enviro pollution & resource depletion
* CSR and sustainable development to improve public image

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15
Q

market

A

group of individuals, orgs or both that * need/want g/s
* have purchasing power (money) to purchase the product
* willing to spend their money to obtain product
* socially, legally authorised to purchase product

if not, not considered a market, for SPECIFIC PRODUCTS!

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16
Q

6 types of markets

A
  1. industrial
  2. intermediate
  3. resource
  4. niche
  5. consumer
  6. mass
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17
Q

resource market

A

ind/groups engaged in primary production (eg. mining, agriculture, forestry, fishing)

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18
Q

industrial market

A

industries, business that purchase products to use in production of other products/daily operations

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19
Q

intermediate market

A

wholesalers & retailers who purchase finished products & sell again to make profit
* majority of goods sold to consumer markets 1st sold here eg. resellers

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20
Q

consumer market

A

individuals who plan to use/consume product they buy

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21
Q

mass market and benefits

A

seller mass produces, distributes, promotes 1 product to all buyers
* dont target products to specific group of buyers, assume all customers in market have similar needs & wants
* basic food items, electricity, water
* replaced by niche markets due to greater choice, higher incomes and seeking individualised products
*benefits are scope & cost efficiency of doing business on large scale, can achieve ecos of scale and appeal to large audience in single showing, BUT only if product is commodity/beneficial for wide range demographics

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22
Q

niche market

A

narrowly selected target market segment (aka micro market)
* marget segements buyers have specific needs/lifestyles

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23
Q

customer choice/buying behaviour

A

examine behaviour of consumers to understand what motivates them to purchase particular product
* why customer selects one and rejects another
* influence choice by modifying marketing strats to appeal to customer motives
* aware of factors influencing choice, predict customer trends and how they react to marketing strats

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24
Q

psychological factors affecting consumer choice

A

influences within individual that affect buying behaviour
* perception
* motives
* attitudes
* personality
* self-image
* learning
but also affected by sociocultural forces outside individual

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25
Q

perception as a psychological influence on consumer choice

A

process ppl select, organsise, interpret info to create meaning
* act on perceptions than reality
* create favourable perception abt product in customer’s mind, cannot perceive as inferior
* advertise to create image of product (trendy, luxurious), despite not having qualities

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26
Q

motives as a psychological influence

A

one’s reason for doing something
* main motives inf choice: comfort, health, cleanliness, approval of others
* ads attempt to motivate customer to buy product

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27
Q

attitudes as psych infl affecting consumer choice

A

one’s overall feeling abt object/activity
* negative attitudes forces bus to change strategies

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28
Q

personality & self-image as psych infl affecting consumer choice

A

collection of behaviours & charactersitcs that make up person

how one views themself, reinforce through purchases
* make most of one’s desire to express identity through purchases by highlighting image of products, use celebrities to endorse product to be influential, important

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29
Q

learning as psych infl affecting consmr choice

A

changes in ind’s behaviour caused by info and experiences
* encourage brand loyalty
* behaviour resulting in satisfying outcome usually repeated
* learning –> form habits –> brand loyalty

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30
Q

sociocultural influences on consumer choice

A

forces exerted by other ppl affecting customer behaviour (psych is internal)
* social class
* culture & subculture
* family & roles
* reference group

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31
Q

social class influencing consumer choice

A

aka socioeco status
* edu
* occupation
* income
* influence type, quality, quantity products bought

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32
Q

how culture & subculture infl consumer choice

A

learned values, beliefs, behaviours shared by society
* determines what ppl wear, eat, living space

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33
Q

how family & roles affect consumer choice

A
  • most women buy health products, food, laundr supplies
  • teens msot influence on clothes, shoes, books
  • pester power ability children to make parents buy something repetitively
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34
Q

how reference/peer groups affect consumer choice

A

group of ppl one closely identifies, adopt attitudes, values, beliefs

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35
Q

eco influences on consumer choice

A

influence bus capacity to compete & customers willingness & ability to spend
* fluctuating eco activity
boom & recession

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36
Q

how booms economically influence consumer choice

A
  • period low u/e and rising incomes
  • bus & ind optimistic abt future
  • bus ^ prod lines to & market share (intensify promotional efforts)
  • willing to spend bc secure abt jobs & income source
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37
Q

how recessions economically influence customer choice

A
  • high lvl u/e, incomes fall
  • lack confidence, low lvl spending
  • price conscious customers, lookg for value, functional and long lasting products
  • marketing plans need to stress value and usefulness of product, concentrate on MAINTAINING existing market share as survival main goal
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38
Q

gvt influences on consumer cohoice

A

eco poly measures to influence lvl eco activity
* expand/contract depending on eco conditions to in/directly influence spending and bus activity
* direct, immediate impact on marketing plans, breaking regulations result in financial penalties
* C&C Act 2010 (Cwlth) and Fair Trading Act 1987 (NSW)

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39
Q

consumer laws impact

A

since 1960s fed & state gvt introduced laws to improve protection & rights of consumers & clarify rights & responsibilities of businesses
* need to be familiar with laws regulating activities

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40
Q

aus consumer law

A

ACL 2011 introduced applies to all aus consumers & bus
* gives consumers same rights and protections everywhere in AUS
* replaced several national, state & territory laws for consumer rights & bus obligations when selling g&s w/ single national set of rules
* application law, can be enforced as law of each jurisdiction in AUS

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41
Q

comp & consumer act 2010 (cwlth) 2 major purposes

A
  1. protect consumers against undesirable practices
    * misrepresenting product contents
    * misleading/deceptive advertising
  2. regulate trade practices restricting competition

*enforced & administered by ACCC, every state & territory’s consumer agency, ASIC (for financial services)

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42
Q

unconscionable conduct & what ACCC can penalise

A

any bus practice unreasonable/often illegal
* issue infringement notice (fine) for false/misleading conduct, pyramid selling, product safety & info provisions, failure to respond to substantiation notice
* issue public warning notices to warn consumers of suspected illegal activity

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43
Q

deceptive and misleading advertising + examples

A
  • illegal, direct/implied representation unture/false

bait advertising
* advertising products not available/limited quantities at reduced prices to attract customers
* run out quick, switch to higher priced items

comparative advertising
* ad compares g/s to others in market, misleading if comparison inaccurate

premium/credence claims
* impression that product/attributes added benefit compared to similar products

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44
Q

price discrimination under consumer laws

A

charging customeers diff prices for same g/s based on seller thinks of their willingness and ability to pay
* based on demographics
* set diff prices for product in separate markets!!
* only probivited if susbstantially reduces competition, cannot give favoured treatment to some customers and deny others

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45
Q

limitations of price discrimination for sellers

A
  • if seller actually discriminates against identificable group (eg charge more to italian women, breach racial discrimination act)
  • social media backlash, reputational harm
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46
Q

implied conditions under consumer law

A

unspoken, unwritten terms of a contract, assumed to exist regardless mentioned/written
* C&C 2010 introduced new national consumer guarantees providing consumers with rights fro retailers & manufacturers if goods fail to comply with ACL consumer guarantees

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47
Q

consumer guarantees & examples

A

provide consumers rights to certain remedies from retailers and manufacturers where goods purchased fail to comply with consumer guarantee provisions in ACL

products acceptable quality
* safe, long lasting, no faults, meet expectations (cost, type product)
* match descriptions on packaging, labels, ads
* fir for purpose bus claims
* meetpromises abt performance, conditions, quality eg. money back offers
* SERVICES must provide acceptable care & skill/knowledge, avoid loss
* give results you and business agreed to
* delivered w/n reasonable time when no agreed end date

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48
Q

when can consumers claim a remedy from the retailer

A

if products dont meet any, 1/+ consumer guarantees, who cannot refuse to help by sending you to manufacturer or importer

  • if services dont meet any consumer guarantees in relation to services eg cancelling a service & sometimes compensation for damage
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49
Q

warranties under consumer law

A

promise made by bus to correct defects in g/s they deliver (to repair/replace faulty products)
* obligated to offer customer protection if good faulty/service not carried w/ skill or care
* marketing tool, can include superior options to comp product
* laws necessary to state terms & conditions of warranty, assure customer that bus repair/replace faulty items

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50
Q

refunds/exchanges, when must bus offer and when does bus not have to

A

under law must offer refund if products:
* faulty
* dont match description
* fail to do what it’s expected\
‘no redunfs’ meaningless under C&CA unless ‘no refunds unless purchase defective’

none if customer changed mind/found same at cheaper price /damage after purchase

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51
Q

ethical criticisms of marketing

A
  1. creation of needs (materialism)
    * materialism is ind’s desire to constantly acquire possession
    * large bus use promotional strats (ads0 to persuade, manipulate customers to buy whaterver they wanna sell
  2. using stereotyping
    * groups portrayed in ads not always represent reality
    * gender roles, racial stereotypes, children
  3. product placement
    * including ads in entertainment as promotion strat
    * can reach ad-weary consumers, concealed nature blurs entertainment and ads
  4. invasion of privacy
    * online ads growth tracking web users and using info to target with ads
    * eollecting data can breach consumer privacy, unaware, resold by data exchange companies and used by bus to target ads
  5. also using sex to sell products (appeal, convince to be more attractive)
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52
Q

advertising

A

paid, non personal message communicated through a mass medium

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53
Q

truth and accuracy in advertising

A
  • exaggerated claims, concealed facts, vague statements, invasion of privacy
  • ensure truthful, held morally responsible for misleading public eg. ‘special’ interpreted many ways
  • consumers find out feel cheated stop buying, complain to gvt agencies, bad publicity long term damage bus reputation
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54
Q

3 problems of truth & accuracy in ads

A
  1. untruths due to concealed facts
    * consumers aware ads arent believable but unethical practice of concealing facts purposely omitted from ad severly harm trust customers for bus
  2. exaggerated claims
    puffery for promotional purposes no reasonable person take factual
    * not deceptive if audience cant reasonably be misled eg. ‘best coffee’
  3. vague statements
    * consumer assume intended message eg. ‘HELPS fight against’
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55
Q

good taste in advertising

A
  • highly subjective, offend viewers and complaints
  • ads targeting children, mass media sexualisation of children widespread publicity
  • premature sexualisation ^ depression, self esteem, identity disorders, premature sexual activity
  • fast food ads for children creates pester power, undermine efforts parents and schools to encourage healthy habits
  • children vulnmerable consumers, reduced capacity to understand commercial, persuasive intent behind ads
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56
Q

products that can damage health

A
  • consumer products must be safe, meet consumer guarantees under ACL
  • cant sell banned products, comply with standards before offered for sale
  • consumer guarantees give ppl right to refund if product unsafe
  • seek compensation for damages caused by safety defect in products
  • manufacturer liable but other suppliers eg. retailers cant identify manufacture can be liable for damages
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57
Q

2 mandatory notification requirements under ACL

A
  • IF RISK THAT PRoduct may cause injury must be recalled
  • awareness of seriousy injury/illness with product, report w/n 2 days aka mandatory reporting
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58
Q

engaging in fair competition

A
  • bus who compete successfully ^ sales revenue & profit
  • highly comp, bus engage in unfair marketing strats
  • C&CA10 prohibits eh.
    1. cartel conduct
  • cartel 2/+ bus normally in comp agree act together
  • prohibit making agreements w/ comp to fix prices, share markets, restrict outputs
  • increase profits of cartel members while putting other companies out of business
  • price fixing 2 bus comp agree set identical rices for products (illegal)
  1. misuse market power
    * Act prohibit bus w/ high deg market power from lessening comp in market eg. get rid of competitor, prevent competition, prevent comp from entering
  2. exclusive dealing
    * bus trades w/ supplier and imposes restrictions
    * legal if not lessening comp in market for the products
    * must notify ACCC for agreement to approve
  3. resale price maintenance
    * supplier sets price what retailers sell products supplied
    * suppliers rec retail frice to sell goods but illegal to force retailer , must be free to compete on price
    * illegal to set min price/not to discount goods
    * legal for supplier to set max price for products to prevent retailer w/ no comp in location from unfairly overcharging customers
  4. mergers & acquisitions
    * C&CA prohibits likely to reduce comp in certain market ( esp 2/+)
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59
Q

sugging under ethic marketing

A

selling under guise of survey
* sales technique disguised as market research
* legal but invasion of privacy, deception
* LT negative consequences for market research
* supicious of survey as sugging and dont participate in surveys

is it legitimate?
1. are they selling anything
2. will participation end up in being contacted, sold product
3. will name, personal info provided to anyonw who’ll contact and sell something

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60
Q

marketing code of ethics (AANA, complaint process, limitation)

A

Aus Association of National Advertisers (AANA) Code of Ethics 2012
* set standards, ensure market communications legal, truthful, obligation to consumer & society
* fairness, responsibility to competitotrs
* consumers feel breaches code, complaint to Ad Standards (ensure Code of Ethics followed)
* Ad Standards manages complaint resolution process of ad Self-regulation system (bus/industry controls own activities > publicly regulated by outside org eg. gvt), assess for determination
* advertiser notified of complaint, provides written response and Community Panel makes decision by majority
1. dismissed complaints
* if CP sees no breach of code
2. upheld ocmplaints
* CP sees breach of code, advertisier removed/amend offending ad ASAP

some say ineffective bc Ad Standards lack authority to enforce CoE, should be regulated by gvt otherwise marketers tempted to ignore industry guidelines.

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61
Q

why ethical behaviour important in marketing

A
  1. sig marketing & bus opp
    * regular publicity in media, positive bus image
  2. attract customers & increase loyalty
    * reward ethical bus by purchasing more products
    * ^ sales & profits
  3. positive effect on employment relations
    * productivity, staff retention, absenteeism rates improve as employees stay w/ business
    * attract most talented employees
  4. attract more investors

*if not, customers boycott products, negative publicity, less appealing to stakeholders

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62
Q

why is gvt regulation important in markeitng

A
  • protect consumers & businesses
  • ^ consumer confidence, trust in bus –> buy more products –> eco growth
  • promote comp & fair trade –> benefit consumers, bus,
  • encourage bus ethical behaviour
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63
Q

steps in developing marketing plan SMEIDI & 2 common features for all businesses

A

Situational Analysis
Market research
Establishing marketing objectives
Identifying target markets
Developing marketing strats
Implementation, monitoring, controlling

  1. realistic siutational analysis
  2. achievable with bus resources & budgets
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64
Q

situational analysis

A
  • undertake based on market research, management needs precise understanding of bus current position, where heading
    1. SWOT
    2. Product life cycle
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65
Q

SWOT analysis

A

involves identification & analysis of internal strengths & weaknesses of bus & opp in, threats from external enviro
* constantly monitor changes in ext enviro, look for any opp to exploit, threats to avoid
* internal forces from inside org, largely w/n control of bus, unique for each bus - by analysing, assess strengths & weaknesses
* give bus position compared with comp, modify marketing plan to reflect info
* when finished assess profuct’s position on PLC

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66
Q

product life cycle

A

stages product passes (intro, growth, maturity aka saturation stage, decline)
* bus must launch, modify, delete products responding to changes in PLC
* each stage of PLC need diff marketing strat

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67
Q

marketing strats for intro stage of PLC

A

bus tries to increase consumer awareness & build market share for new product
* brand & reliability established
& price noticeably lower than comp’ to gain market foothold
* directed at early buyers
* communication seek to educate potential customers abt merits of new product
* selective distribution, enable consumers to gradually form acceptance of product

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68
Q

marketing strat in growth stage of PLC

A
  • brand acceptance, market share actively pursued by producers of product
  • quality maintained & improved, support services added
  • price per unit of prod maintained, ^ consumer demand, growing market share
  • promotion seeks wider audience
  • increase distribution channels as product becomes more popular
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69
Q

maturity stage marketing strats PLC

A
  • sales plateau as market becomes saturated
  • features & packaging try to differentiate product from competitors
  • price adjusted downards to hold off competitors & maintian market share
  • suggest product is still best
  • incentives offered to encourage preference over rival products
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70
Q

decline stage market strats in PLC

A
  • sales being declining as bus faces several options
  • product maintained w/ some improvements/rejuvenation, but losses by selling to another bus
  • price reduced to sell remaining stock
  • promotion discontinued
  • reduced distribution channels, product offered to loyal segment of market city
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71
Q

shy do some products decline

A
  • changing public perception of trends
  • new tech constantly introduced, replace old ones
  • new products sometimes reduce demand for older ones
  • fluctuations in lvl eco activity constantly results in shifts in customer spending habits
  • consumer behaviour changing eg. reduce carbon emissions to prevent climate change
  • consumers expect products to be enviro friendly, opp to create eco sustainable products
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72
Q

whats the importance of market reserch

A

systematically collecting, recording, analysing info concerning a market problem
* marketing strats perform best when based on accurate, up to date, relevant info
* esp buying behaviour of existing & potential customers stronger bus position
* main purpose minimising risk of market failure by collecting and assessing info abt customer needs & wants for responsive marketing plan\
* identify & outline marketing opps and problems, evaluate implemtation of marketing plan
* whether worht launching/promoting product at all

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73
Q

3 steps of market research (3 steps) process

A
  • info must be relevant to situation/problem
  • identify bus target market objective
    to obtain accurate info
    1. determine info needs
    2. data collection
    3. data analysis & interpretation
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74
Q

determining info needs (1) of market research process

A
  • info collected must be relevant to issue/problem investigated by constantly ask questions
  • results in marketing strats meet needs of bus target market
  • assists bus to achieve marketing obj
  • can increase sales & profits
  • treat info in same way as other resources w/n bus, weight costs collecting info against benefits
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75
Q

step 2 of market research process (data collection from primary & secondary sources)

A

marketing data is info relevant to marketing problem (usually facts & figures)

76
Q

primary data in data collection (2) + 3 main methods

A

facts & figures collected from og sources for market problem
* collected by bus time consuming & expensive, so many outsource
* directed at solving marketing problem, what customer thinking

77
Q

survey method for primary data collection

A
  1. SURVEY METHOD
    * main benefit gathers 1st hand info provides details of customers opinions, but respondent rates declining vercome using electronic methods collecting info abt consumer behaviour, also cheaper, faster, easier for participants & researchers
    gather data by asking/interviewing:
    * personal interviews (face to face, conducted in public places)
    * focus groups (small groups ppl who meet w/ researchers)
    * electronic collection methods (telephone, internet)
    * questionnaires (specific questions require response from person)
78
Q

observation method for primary data collection

A
  1. observation method
    * record behaviour of customers, no interviews, direct contact w/ respondents avoided
    * sometimes ethical issues esp privacy
    * recently popular, develop computerised tech, bus can access loyalty program, customer spending habits & database at once via smart cards & bar coding
    * can be highly accurate but explains only WHAT not WHY happens
    info gathered through
    * personal observation
    * electronic observation
79
Q

experiment method

A

gather data by altering factors under tightly controlled conditions to evaluate cause & effect
* determine if changing ‘cause’ will alter ‘effect’, aka test marketing

80
Q

2ndary data for data collection and 2 types of 2ndary data

A

info already collectd by other person/org for another purpose eg. census data, HH expenditure surveys from gvt

  1. internal data
    * info already collected from internal sources, from inside bus * customer feedback, sales, management reports, research reports
  2. external data
    * published data from sources outside bis
    * internet, private data collection agencies, ABS data on industry, community, eco and social climate
81
Q

step 3. data analysis & interpretation in market research process (define statistical interpretation analysis)

A

focusing on data that represents avg, typical/deviations from patterns
* raw data needs analysis to have value
* analysis & interpretation 1st step, display info in table
* based on manager’s judgement, experience, involve many ppl in participation to gain wider perspective avoid personal bias

82
Q

establishing market objectives + 3 common marketing objectives

A

realistic, measurable goals to be achieved through marketing plan
* most important in marketing planning process,
* need to closely align to bus goals, more customer oriented than goals, products, markets

  1. ^ market share
  2. expanding product range
  3. maximising customer service
    can be measured, should include specific targets ‘^ MS 10% w/n 12 months’
83
Q

& market share (marketing obj)

A

bus share of total industry sales for product
* develop extensive prod range sometimes use diff brand names
* small market gains translate to largep profits

84
Q

expanding product mix (marketing obj)

A

total range of products offered by bus
* expand product mix, increase profits LT
* customer tastes & preferences change over time, demand for product can decrease
* must understand customers needs, develop ideal product range & each item should satisfy needs of diff target markets

85
Q

maximising customer service

A

respond to needs & problems of customer
* improve customer satisfaction, establish sound customer base for repeat purchases
strats:
* ask customers what they want
* train employees & reward for customer service
* anticipate market trends by conducting market research
* finding what competitors offering, reviewing product mix
* establish, maintain LT relationships w/ customers
* encourage employees to focus on customer needs (customer oriented) not sales oriented

86
Q

identifying target markets

A

group of present & potential customers bus wants to sell product
* customers w/n target market share similar characteristics eg. age, income, lifestyle, location, spending patterns

primary: market segment most marketing resources directed
* generate most revenue
* loyal customers making repeat purchases
secondary: smaller, less important market segment

87
Q

why identify and select target market

A

to direct marketing strats to group of customers to better satisfy wants & needs of targeted group, able to:
* use makreting resources more efficiently, marketing campaigns more cost effective & time efficient
* make promotion more relevant to customer’s needs, likely noticed
* understand consumer buying behaviour of target market
* collect data effectively, compare w/ target market over time
* refine marketing strats to influence customer choice

choose 1. mass marketing approach, 2. market segmentation approach, 3. niche marketing approach when selecting target market

88
Q

market segmentation approach

A

total market subdivided into groups of people who share 1/+ common characteristics
* selects segment to become target market & design marketing plan to meet needs of relatively uniform group
* increase sales, market share, profits by understanding & responding to desires of diff target customers

89
Q

niche market appraoch

A

narrowly selected target market segment aka micromarket
* customer in these markets often neglected by large bus, rarely profitable to alter marketing mix to cater for very small groups

90
Q

marketing mix the 4 Ps

A

combo of product, price, promotion, place/distribution
* after situational analysis, conducting market research, est marketing obj, identify & select target market
* use 4 Ps to reach target market, and control other resources (info, finance, emp) to achieve marketing objectives

91
Q

marketing strategies

A

actions to achieve bus marketing obj through marketing mix

92
Q

how will a bus’ emphasis on the 4 Ps be determined

A

where product positioned/stage in PLC

93
Q

product in market strats (marketing mix)

A
  • what product
  • quality
  • packaging, labelling
  • design
  • brand name
  • guarantee
  • intangible benefits for customers to buy (prestige, satisfaction)
94
Q

price (marketing mix)

A

select amt money customer prepared to offer in exchange for product
* set ABOVE BELOW, EQUAL to comp prices
* consider prod costs, lvl consumer demand
* METHOD to decide prices

95
Q

promotion (marketing mix)

A

methods to inform, persuade, remind customers abt products
* advertisements
* personal selling
* relationship marketing
* sales promotion
* publicity
* public relations
tech changes (ICT) deliver msg to target market

96
Q

place/distribution marketing mix

A

ways to get product to customers (channels of distribution)
* no. intermediaries eg. wholesaler, retailer
* no. determien hwo widely product distributed
* keep supply restricted to few specialised outlets (expensive products)
* as wide as possible (retail stores, supermarkets, cafes, fast food outlets)

97
Q

implementation

A

putting marketing strats into operation
* daily, weekly, monthly decision to ensure plan effective
* HOW, WHERE, WHEN done
* difficult as unforeseen situations can arise

98
Q

monitoring

A

checking & observing progress of marketing plan
* gather info & report on important changes, proble,s opp arise
* to monitor which types marketing strats for best results, ask customers how they found out abt business

99
Q

controlling with 2 steps

A

comapring planned against actual performance, taking corrective action to ensure objectives achieved
1. establish KPI, a forecast lvl of perf against actual can be compared eg. ^ monthly sales 5%
2. compare/evaluate actual perf against the KPI using budgets, sales, statistics, costs w/ results –> effectiveness

100
Q

developing a financial forecast with 2 steps

A

bus predictions abt future detailing costs & revenues for each strat and compare with anticipated expenditure (Costs) to allocate marketing resources using cost-benefit analysis
* w/o analysing forecast, gut feelings inappropriate for comp enviro
* analyse projected costs & revenues can forecast profit lvls
1. COST ESTIMATE
* how much marketing plan expected to cost?
( market research, product development, promotion {ads, packaging} distribution) 4 major components
* easier to forecast than revenue bc activities largely controlled by bus
2. REVENUE ESTIMATE
* how many sales marketing plan expected to generate
* 2 major components **how much consumers expected to buy for what price, what sales staff predict they’ll sell)
* diff cause ext enviro changes bus little/no control

101
Q

3 KPIs to measure success of marketing plan ,comparing actual and planned results

A
  1. sales analysis
  2. market share analysis
  3. marketing return on investment
102
Q

sales analysis (+ cost & benefit) & use of computerised sales

A

comparing actual slaes w/ forecast sales to determine effectiveness of marketing strat
* calculate % change: difference /sales quota x 100
* main strength relatively inexpensive to collect & process
* weakness is data for sales rev dont reveal exact profit lvl, need to investigate total expenditure

computerised sales makes collection, storage, retrieval, analysis of sales data easier
* daily, weekly, monthly, quarterly, annual sales reports
* product line sales
* sales reports for ind sales representatives

103
Q

market share analysis (or ratios)

A

evaluate marketing strats compared to competitors
* whether changes in total sales inc/dec from bus marketing strat/uncontronllable ext factor
* if total sales rev decline but market share stable, overall industry sales fallen eg. downturn in eco
* total sales rev and market share declined, market strats need review

104
Q

marketing return on investment (ROI) & how to calculate marketing ROI, good marketing ROI

A

measures how much rev marketing campaign generating compared to cost running campaign
* measure impact of marketing strats on rev growth
* holsitic view, impact on bus, burdget for current & future

calculate marketing ROI: (sales growth - marketing cost) / marketing cost x 100

good marketing ROI is 5:1

105
Q

revising the marketing strat 3 ways

A

based on info from sales, market share, profitability analysis modify marketing plan

  1. changes in the marketing mix
  2. new product development
  3. product deletion
106
Q

changes in the marketing mix to revise marketing plan

A
  • production modifications
    upgrade products to maintain comp adv
  • price modifications
    prices fluctuate often, respond to changes in ext bus enviro
  • promotion modifications (correspond to life cycle of product)
    promotion costs high when new product 1st launched onto market, and later stages PLC stabilise costs and fall during decline stage
  • place modifications
    expand distr channels as product’s success increases to cater growing market
  • electronic comms, new distr channels can be used
107
Q

new product development to revide marketing plan

A

PLC all products lfiespan 5-10 yrs
* for LT growth, must continually intro new products
* R&D to keep products innovative, assists comp adv

108
Q

product deletion when revising the markeitng plan

A

eliminate some lines of products
* outdates products unfavourable image –> other products
* decline stage, delete or redevelop product

109
Q

extended marketing mix

A

combo of ppl, processes, physical evidence w/ 4 main elements of marketing mix
* varies when reachgin diff target markets

110
Q

segmentation variable & how consumer market segmented

A

characteristic of ind/group used by M managers to divide total market to segments
consuemr market segmented
* demographic
* geographic
* psychographic
* behavioural

111
Q

demographic consumer market segmentation

A

divide total market according to feautures of pop (size, age, sex, income, cultural bg, family size)
* age & gender widely used
* easily measure

112
Q

geographic segmentation of consumer markets

A

dividing total market according to geographic locations
* diff tastes, preferences and needs for countries, states, cities, claimte, cultural preferences,population, etc
* marketing mix differ from 1 region to another, althought most common across all locations, modify to suit local culture
*

113
Q

psychographic segmentation of consumer markets

A

dividing total market according to personality characteristics, motives, opinions, socioeco group, lifestlye
* consumer’s brand preferences, fav music, reading habits, personal interests, hobbies, values
* why ppl behave a way
* can use independently to segment market/combine w/ other seg variables
* diff to measure accurately esp personality characteristics & lifestyle

114
Q

behavioural segmentation of consumer markets

A

divide total market according to customers’ relationship to product
* knowledge & attitudes towards, use, benefits sought from product
* encourage light & moderate users to buy more products, may redesign, set special prices/promotion activities
* customer loyalty eg. membership program
* identify benefits customers seek from product

115
Q

product/service differentiation + 4 differentiations

A

developing & promoting differences betw g/s and comp’
* products same/similar made to appear diff from and/or better than competitors
* more price control in marketplace

116
Q

value for money

A

desire to obtain best quality, features, perf for price of product
* quality service, conenience, , enviro friendly persuade consumers to perceive product as superior to similar

117
Q

customer service

A
  • desire personalised service
  • products tailored to ind needs & wants
  • diff before, during, after purchase
  • require ‘caring’ service
  • treat honestly, courteously
    -pre and after sales service esp for expensive items
  • high quality & value
  • est favourable conditions for service by offering fair prices & high quality products
  • also presentation of premises, range of products to capture interest

otherwise lost sales, damage comp position. meeting basic needs < exceeding expectations

118
Q

enviro concerns for differentiation

A

create pollution risk losing customers
* produce enviro friendly products sales ^

119
Q

convenience for differentiation

A

busy, on-the-go lifestyles and choose most convenient to use eg. meal preparation

120
Q

social & ethical issues in differentiation

A

consumers ethically minded actively purchase products/brands believe dont exploit workers, producers, enviro

ethical consumerism provides bus w/ opp to satisfy growing demands e
* label genertically modified foods so producers label GM free
* Fair Trade mvoement international trade alternative promotes enviro, fair wages, alleviate global poverty, fair price for farmers & workers pay more for guaranteed fair labour practices, sustainable, organic products
* non animal alt for animal welfare

121
Q

product/service positioning

A

technique marketers try create image/identity for product compared with image of competing products
* how potential buyers perceive product
* highly comp markets diff to secure sales, create image diff product from others, invest considerable resources
* use other elements of marketing mix to shape and maintain image
* achieve through product name, price, packaging, promotion, channels of distr to create image
* REPOSITIONING strategic decision to change what customers associate with brand and competing ones, declining sales, focus on new target market, new comp, overcome neg customer perceptions of brand

122
Q

products

A

g/s offered in exchange to satisfy need/want
*all are combo of tangible & intangible components eg. restaurant, car (total product concept where product possesses tangible and intangible attributes)

123
Q

brand & brand name

A

name, term, symbol, design or combo identifies product and distinguishes from competitors

part of brand can be spoken (letters, numbers, both, pronounceable symbols)

124
Q

benefits of branding (buyers & sellers)

A

CONSUMERS
* identify products they like
* evaluate quality of products esp if lack expertise to judge product features
* reduce lvl risk of purchase (trusted brand reassure right choice)
* psychological reward from purchasing brand symbolises prestige

BUSINESSES
* gain repeat sales bc consumers recognise their products
* introduce new products onto market bc consumers familiar with bus existing brands
* promotional activities, 1 product indirectly promotes similarly branded products
* encourage customer loyalty, can charge higher price

125
Q

trademark

A

signify brand name/symbol registered and bus has exclusive right of use
* bus spend time, money, effort protecting eg. mcdonald’s

126
Q

branding symbols or logos & 5 types

A

graphic representation identifying bus/product
1. BRANDMARK LOGO
* solitary graphic not expressed in words, pictorial mark w/ no text (apple)
2. WORDMARK LOGO
* logo is bus name, no imagery, rely heavily on typography to stand out (coca cola)
3. LETTERMARK LOGO
* typography based logo of few letters (initials) to represent brand
4. COMBO MARK LOGOS
* brandmark and wordmark (pepsi)
5. EMBLEM
* combine images w/ text
* design features w/n frame/border (starbucks) unlike combo

127
Q

branding strategies
(3 brand classifications)

A

manufacturer’s brand (manuf owns brand name) have high appeal w/ customers bc recognised across country, widely available and offer reliability w/ constant quality

private/house brand owned by retailer/wholesaler
* cheaper bc retail/wholesaler can buy at lower costs

generic brands products no brand name
* name of product in plain packaging

128
Q

packaging

A

development of container and graphci design for product
* assist sales by promoting product, creating image
, well designed gives positive impression of product and attract customers
* preserves, protects (from tampering, damage), attracts,
* display, easier transportation & storage
* communication (consumers see colours and make conclusions nabt product before reading label)
* shape consumers associate unique shape w/ specific product (cola cola)

129
Q

labelling (product packaging)

A

presenting info on product/package
* label part of package contains info (ingredients, shelf life, package size, country of origin)
* labels can promote other products/ encourage proper use –> customer satisfaction
* must be truthful, reduce confusion eg. food labelling clear where produced, grown, packed, % aus ingredients by aus gvt regulations to protect consumer from misleading/deceptive claims & unsafe use
* easier to compare

130
Q

explain why g/s central to marketing & operations

A

operations determine hwo to make/provide product
* produces g&s relies on marketing to carry market research to produce product satisfying customer needs
* also to inform market, distribute products, determine price, persuade to purchase products
* marketing determines appearance of product & functions, communicating w/ market

131
Q

price

A

amt money customer prepared to offer in exchange for product
* too high lose sales unless superior benefits
* too low impression ‘cheap & nasty’ must be inbetween
* control over price by differentiating products

132
Q

pricing methods

A

influenced by int & ext factors
* marketing obj, prod costs
* amt comp market, gvt reg, stage in PLC, lvl eco activity

  1. cost based
  2. market based
  3. comp based
133
Q

cost based pricing

A

most simple method
* total prod costs for 1 unit + costs (overheads eg. interest payments, insurance, transport) & adequate profit margin (mark up, %)
* mark up % can be determined using breakeven analysis
* mainly used by wholesalers & retailers

134
Q

2 disadv of cost based pricing

A
  1. diffcult to accurately determine markup %
    * too high overprices, not sell
    * too low, losing profit could easily obtain
    • priiced after prod, associated costs incurred without accounting other marketing mix/market conditions
135
Q

market based pricing

A

set prices according to interaction betw lvls supply & demand
* demand > supply, SHORTAGE in market force rise in price
* supply > demand SURPLUS in market –> price falls
* price constantly changing relating to fluctuations in lvls supply & demand
* basis for other prcing methods
* diff to apply, bc lvl supply & demand constantly change

136
Q

comp based pricing

A

price covers costs (raw materials, operating bus) comparable to competitors price
* bc consumers compare prices
* when high deg comp w/ similar products
establish base price, then
* below competitors, undercut comp to break into established market
* equal to comp
following price leader (major bus in industry whose pricing decisions heavily influence pricing decisions of competitors) bc avoids undertaking market research to find what consumers pay
avoids risk of comp
* above competitors
favoured by bus who think consumers perceive product as superior and appeals to status-conscious buyer

137
Q

4 pricing strategies + depends on

A

after base price set using pricing method/s
* modify depending on changes w/n ext bus enviro esp tech
* can use several at once for same product

  1. price skimming
  2. price penetration
  3. loss leader
  4. price points

depends on
* marketing obj
* PLC
* market for product
* deg of product differentiation
* lvl eco activity

138
Q

bundle pricing

A

customers gain package of g&s on top of tangible goods they purchased
* telecommunications businesses use eg. mobile phone companies, internet providers

139
Q

price skimming (pricing strat)

A

bus charges highest possible price for product during intro stace of PLC
* customers willing pay high price for product’s novelty features bc of prestigue, status of ownership
* to recover costs of R&D asap before comp enters market
* apple, launch with premium price (Popular with innovative electronic equipment)

high price = higher revenue
* larger profits, faster return on initial investment of new products to further expand w/ more innovative products
* positioning
target market of high end consumers, market position supported by higher prices
primary target not price sensitive, higher prices signal higher quaity
* suppress comp (from entering market)
* branding
develop strong brand reputation

140
Q

price penetration (pricing strat)

A

bus charges lowest price possible for product
* quickly achieve large market share for product (mass market pricing)
* to sell large no products during early stages PLC, discourage comp from entering market/taking market share from existing bus
* main disadv more diff to raise prices significiantly than to lower
* low sales revenue until it substantially modifies product at later stage

141
Q

loss leader (pricing strat) when will a business use it?

A

product sold at/below cost price
* retail stores/supermarkets deliberately sell product at loss to attract customers (heavily discounted items located next to higher priced, appealing products)
* extra customers buy other products too
* once consumers in store, buy other products & spend more than what attracted them into store
* recover loss on low price item from selling other g/s
* if done incorrectly, lose money

used when bus:
* overstocked/product slow to sell
* increase traffic flow, expect gaining new custoemrs
* built reputation of low prices

142
Q

price points (or price lining) as a pricing strat

A

selling products at predetermined prices
* mainly retailers use
* choose limited no. price points for selected product lines
* store wont apply fixed mark up to products
* easier for custoemr to find type product they need
* easier for bus to encourage customer to buy more expensive model
eg. jeweller offer line of watches $55, $75 regardless how much costed at wholesale

143
Q

price & quality interaction as a pricing strat (aka prestige/premium pricing) price & quality interaction

A

higher manufacturing cost producing superior quality, sell at higher prices
* to encourage status conscious consumers to buy, assume expensive products superior quality
* if lowered price dramatically, damage reputation bc inconsistent w/ perception of products
* common for service industries where consumer cant see product in advance, price indicates quality
* doesnt apply to all products
* sometimes believe reflect expensive packaging/market exploitation –> reduce sales
* sometimes premium price set artificially high to imply prestigious image when quality not superior to cheaper alternatives
* image customers have of products/brands
* charging high price so product has status

144
Q

promotion attemps to…

A
  • attract new customers by heightening awareness of product
  • ^ brand loyalty by reifnrocing image of product
  • encourage existing customers to purchase more of product
  • provide info so customers make informed decisions
  • encourage new & existing customers to purchase new products
145
Q

promotion mix

A

promotion methods bus use in promotional campaign
* advertising
* personal selling & relationship marketing
* sales promotion
* publicity & public relations

146
Q

advertising (media) in the promotion mix + types

A
  • provides bus with flexibiltiy to reach extremely large audience/focus on small target market segment
  • video marketing one of fastest growing forms advertising
  • sometimes extensive ad campaign with many ad media to create saturated coverage of wide target market eg. release new movie

many forms of electronic & print communication to reach an audience
types:
* television advertising (extensive reach, caters to large market in large area)
* outdoor advertising (messages printed on billboards, posters, public transport)
* window display (retailers display products in shop windoes to attract customers)
* internet advertising
* telemarketing (personally contact customer), radio, print publications (magazines, newspapers), direct mail (mail to HH)

147
Q

type of advertising media used depends on: (promotion mix)

A
  • type product & positioning
  • size of target market & characteristics
  • marketing budget
  • cost of advertising medium
  • product position on PLC
148
Q

personal selling (promotion mix) + 3 adv

A

activities of sales consultant directed to custoemr to make sale (human aspect of promotion)
* main promotional strat if offer expensive, complex, ind products require personal contact of sales representative to familiarise customer with product
* listen to customer needs & offer informed recommendations –> ^ customer satisfaction –> repeat business –> build good reputation
expensive but offers 3 adv
* message can be modified to suit ind custoemr circumstances
* individualised assistance create LT relationship –> repeat sales
* sales consultant can provide after sales custoemr service (installation, warranties)

149
Q

relationship marketing in promotion mix

A

ways to develop LT, cost effective relationships w/ ind customers
* create customer loyalty by meeting needs on ind basis –> repeat
* comp adv
* LOYALTY PROGRAMS, rewards based program offered by bus to customers who frequently purchase, loyal customers who spend specified amts, repeat purchases

150
Q

sales promotion in promotion mix + sales promotion techniques

A

bus offer direct inducement to customers to sell more of product
aims:
* entice new customers
* encourage trial purchase of new product
* ^ sales to exisitng customers & repeat purchases
* use sales promotion techniques to ^ effectiveess of other promotion activites esp ads
- limited time offers (coupon, discount code incentives on particular items, drive urgency)
- refunds (part of purchase price given back to customers who send voucher with proof of purchase)
- samples (free item of product)
- point of purchase displays (special signs installed by manufacturer in retail outlets for attention
- deals (buy 1 get 1 free enticing to get mroe for less, unload overstocked inventory to still gave profit margin

151
Q

publicity in promotions mix

A

any free news story abt bus products, free and timing not controlled by bus to:
* enhance product image
* raise awareness of product
* highlight bus favourable features
* reduce neg image created
* but cant control whats said abt bus or product, need to ensure what they publicise can withstand public scrutiny
* social media critics can disseminate opinion

activities to create & maintain favourable relations betw business & its custmoers
* exposes bud/idea to audience by using unpaid 3rd parties as outlets by working w/ media, attention seeking gesture eg. giveaway sale
* often more effective than paid advertising, sometimes cheaper
role of public relations personnel to design, implement, manage publicity events
4 ways:
1. promot positive image
* reinforce favourable attitudes & perceptions consumers have regarding bus reputation
2. effective communication of messages
* using ads, sales promotions, publicity, persoal selling to convey info abt business & its products
3. issues monitoring
* protect sales by providing early warning of public trends could affect sales
4. crisis management
* protect bus reputation from unfavourable rumours & adverse publicity if left unchecked lose sales

152
Q

public relations in promotions mix

A
153
Q

the communication process (channel & noise)

A

promotion wasted w/o effective communication
* use channel, any method to carry message, usually promotional communication (print & electronic media ads)
* noise interference affects any/all stages in promotional communication process eg. faulty printing, jargon, ppl conversating during commercial breaks (most common one)
* customers more willing to purchase if message communicated through respected, trusted channel eg. opinion leader/word of mouth

154
Q

opinions leaders in the communications process

A

person who influences others w/ respected opinons, advice
* info outlets for new products/endorse existing one
* actors, athletes, models –> celebrity endorsement
* celebrities powerful when target audience align themselves w/ ambassador bc they have large social media following to gain instant engagement
* if persons reputation tarnished, affect bus reputations

155
Q

word of mouth in the communications process

A

receiver places more trust in someone known than bus advertising products, influence each other during convos
* friend, opinion leader more trusted than bus sponsored commercials

156
Q

assess why a mix of promotional strats is important to market g&S

A
  • must use mix to cater needs of everyone in target market as each element of mix has diff benefits
  • attract as man potantial customers possible, diff elements appeal to diff types
  • somem ore influential than others, better response adopt as many as possible
  • coordinate & complement each other to acheive marketing objectives
157
Q

traditional distribution channels

A
  1. producer to customer
    * simplest, no intermediaries
    * all services
  2. producer –> retailer –> customer
    * retailer intermediary buys from producers & resells to customers
    * bulky, perishable products eg. furniture, fruit
  3. producer –> wholesaler –> retailer –> customer
    * msot COMMON for consumer goods
    * wholesaler intermediary buys in bulk from producer resells smaller quantities to retailers
  4. producer –> agent –> wholesaler –> retailer –> customer
    * agent distributes products to wholesalers, never owns product
    * paid commission by producer
    * for inexpensive, frequently used products
    * for bus who dont have sales representatives
158
Q

non store retailing as an innovative distribution method + 2 most rapidly developing methods

A

retailing activity conducted away from traditional store
* rapid changes in electronic communication, exploit e-marketing
* purchasing products from store/supplier oldest, common form distribution
* modify trad distr channels, some retailers & wholesalers bypassed as customers directly deal with manufacturers

  1. E-commerce
    * buy & sell g&s via internet
    * shop online for convenience
    * select from range, cheapest price
  2. M-commerce (mobile commerce)
    * buy & sell g&s through wireless handheld devices eg. smartphones
    * larger market share (than e-commerce) as retailers ongoing efforts to provide smartphone-friendly checkout solutions to customers
159
Q

3 channel choices (define market coverage)

A

no. outlets firm chooses for product
1. INTENSIVE distribution
* bus wants to saturate market w/ product
* customers can shop at local outlets and purchase product
* many convenience goods (Distributed this way)
2. SELECTIVE
* using only moderate prop of all possible outlets
* customer prepared to seek specific retail outlet stocks certain brand
3. EXCLUSIVE
* only 1 retail outlet for product in large geographic area
* commonly for exclusive, expensive products

difference is INTENSITY of coverage
* clothes, furniture, electrical appliances (2) diff channelsused to get right product in right quantity to right location at right time

160
Q

physical distribution issues 3

A

activities w/ efficient movement of products from producer –> customer
* movement of products themselves through channels of distribution
* combo of several interrelated functions
1. transportation
2. warehousing
3. inventory control

161
Q

transport as a physical distribution issue

A
  • intricate network of transportation to deliver products to customers
  • key supply chain management function for product manufacturer –> customer
  • mode depends on type product & degree service bus wants to provide
  • must meet customer needs, transportation program provides customer satisfaction and bus comp adv
    most common:
    1. rail
    2. road
    3. sea
    4. air
162
Q

warehousing as a physicla distribution issue

A

set of activities involved in receiving, storing, dispatching goods
* central organising point for storing goods to distr later
* small home based bus warehouse prods in spare room/garage whereas large bus own/rent space in building designed for storage
basic warehousing to consider:
* shelving system offering max storage capacity & easy access
* inventory control software to inform bus abt quantities of each product & location in warehouse
* access to transportation to bring products in/move out once orders placed
* climate control system for products require refrigeration
also increased warehouse automation use few key pieces of tech to move products to cut down manual tasks

163
Q

inventory as physical distribution issue

A
  • customers frustrated when product wanna purchase out of stock and if repeats, lose sales & market share
  • avoid using inventory control system
  • if carries too much stock on inventory, experience high storage costs
  • too little stock lost sales
  • should find correct balance
164
Q

3 Ps in marketing mix (extra)

A
  • 4 Ps for tangible products but service sector expanded for intangible products (tourism, entertainment, hospitality) to create extended marketing mix closer to HR and operations
  • goods also have service eg. after sales service
165
Q

people in extended marketing mix

A

quality of interaction betw customer and w/n bus who deliver service
* recruit right workers & train to perform service and leave good impression
* consumers base perceptions and make judgements abt bus on how emp treat them
* speak, deal with enquiries, handle complaints
* est culture of customer focus, maintain reputation, positive attitude towards products selling
* success of marketing campaign frontline/customer service staff and customers

166
Q

processes in extended marketing mix

A

flow of activities bus follows in delivery of service
* delivery or how customer finds out product, selects, make purchase
* ensure processes & procedures customer friendly and satisfy customer needs
* purchasing experience important to achieve customer satisfaction (wait times, long queues, delivery reasonable time)
* access various payment methods (cash, credit cards, deferred payments eg. Afterpay)
* maximise benefit for customer not just convenience of bus/staff

167
Q

physical evidence in extended marketing mix

A

everything customer sees when interacting with bus
* physical enviro, materials to carry out service
* positioning brand, attracting target market
* diff for marketing to provide customers with sample unless free trial offered for services
* customers buy services on trust and make judgements abt bus based on physical evidence
* image of value & excellence using high quality physical evidence

ALSO PHYSICAL STATE of bus premises, website, online presence
* clean, presentable location reassures high standards
* website simple to navigate, clear contact details, secure ordering system

access FEEDBACK from customers can be way providing physical evidence to potential customers
* encouraging satisfied customers to use independent review websites valuable evidence influence potential customers

168
Q

e-marketing

A

using internet to perform marketing activities
* tech –> market products to customers worldwide, access global markets by setting up websites to promote products & dispatch
* exploit due to rapid changes in electronic communication
* retailers slow to e-marketing offering product info but no opp for customers to purchase online (majorit aus bus dont have website)
* trad marketing methods not enough most ppl search & shop online for products
* convenience of online shopping, purchase from overseas retailers and bypass local businesses

169
Q

6 e-marketing tech

A
  • web pages
  • podcasts
  • electronic messages
  • blogs
  • location based marketing
  • social media advertising
170
Q

web pages as e-marketing tech

A

convey info combining text, graphics, animation, video
* many linked together = website
* hoem page w/ basic info abt bus and links to other web pages w/n website for info abt location of bus premises (maps, photos), products, online ordering facilities

majority bus aus dont have website
most feel bus too small, then too expensive, then dont have time to manage/build

171
Q

porcasting as e-marketing tech

A

distributing digital audo/video files over internet
* directed to no. users who subscribe to service and receive regular updates
* marketing & advertising purposes
* aimed at audence as target customers, effective to reach

172
Q

electronic messages as e-marketing tech

A

email, SMS offers, advertises/promotes bus, g/s.
* send newsletter, promote sale, send coupon to loyal customers for discount
* SMS adv over email, delivered automatically to 1/+ recipients w/o logging on
* also alert regular customers of special deals on offer, notify suppliers of arrival of goods shipment

173
Q

blog as e-marketing tech (external blogs & adv for public relations)

A

online journal that can be added to by readers
* ask questions, provide feedback, share opinions

EXTERNAL BLOGS allow communication betw bus & existing + potential customers
* announce new products gather feedback from stakeholders
for PUBLIC RELATIONS:
* owner & employees est reputation for expertise by providing detailed info on products
* new ideas for products for public gain feedback
* informal so build trust w/ customers

174
Q

location based marketing as e-marketing tech

A

mobile devices can track & report one’s location, bus can tailor marketing messages based on location
* brands tap into daily habits & encourage consumers w relevant offers
* customers receive by usign mobile to search for local bus on internet
* eg. geotargeting based off IP addresses bc every connected device has unique IP address

175
Q

social media advertising SMA as e-marketing tech

A
  • inespensive compared to trad ad methods
  • easy to use & monitor
  • effective method to gain exposure
  • marketers can accurately measure reach (no. ppl exposed to message) & frequency (avg no. times someone exposed) of SMA

BUT dont have complete control over what online consumers write abt business w/ freedom to discuss, review, criticise product/bus
* privacy, honesty, consumer trust issues

online customers not just targeted for advertising but contribute to creation & distribution of advertising, constantly build relations with customers (expect expand rapidly next few years)

176
Q

why we need global marketing

A

marketing plan must modify & adapt to suit overseas markets, each foreign market has target markets & marketing enviro diff from domestic - extended marketing mix adapted

177
Q

how globalisation affected marketing management (transnational corporations) what should bus know before it decides to engage in global marketing?

A

any bus with prod facilities in 2/+ countries operating on worldwide scale
* develop marketing strats as if entire globe 1 large market (standardised approach)
* others customise marketing mix to account diff among cultures, religions tastes betw countries
* uncertainty & ^ risk developing global marketing strats
* if market global scale need market research to understand complexities of global marketing enviro before designing marketing mix
* analyse overseas markets > domestic

  1. info to make marketing decisions eg. price, packaging, dist channel, product characteristics to modify
  2. info abt country’s eco, political, social, cultural features
178
Q

global branding (global marketing)

A

worldwide use of name, term, symbol, logo to identify seller’s products
increasingly use bc:
* cost effective (use 1 ad in many locations)
* provides uniform worldwide image
* successful brand name linked to new products introduced into market

global branding = global recognition irrespective of language barrier
* after name, market brand globally keep same across multiple countries but sometimes change (carry logo tho)

179
Q

standardisation in global marketing

A

standardised approach global marketing strat assumes way product used and need satisfies same
* marketing mix same in all markets (globalisation of MM) eg. mobile phone, music, movie
* cost savings (prod runs longer, ecos of scale, reduce R&D costs, simplify after-sales service, standardise promotion strategies, simpler to evalue & modify plan
* must appeal to international consumer base to succeed overseas

180
Q

customisation in global marketing aka local approach

A

global marketing strat assumes way product used and needs to satisfy diff between countries
* customise marketing plan according to eco, political, sociocultural characteristics of target country
* can also combine customised & standardished approach
* globalisation intensified, standardisation approach used more frequently rhan customised appraoch

181
Q

global pricing under global marketing + 3 global pricing strats

A

major challenge for TNCs is coordinating pricing policy across diff countries
* price only element marketing mix generates revenue and others involve costs
* global pricing strat major determinant of profits
* if bus overseas expansion successful, accurate pricing decisions must be made

  1. customised pricing
  2. market-customised pricing
  3. standard worldwide price
182
Q

customised (global) pricing

A

whenever consumers in diff countries charged diff prices for same product
* determine price for overseas market many global bus practice cost-plus method t cover added export costs eg. transportation, taxes, warehousing tariffs
* most commonly used bc of added expense of exporting

183
Q

market-customised (global) pricing

A

set prices according to local market conditions
* more flexibility than customised pricing strat
* avoid comp from domestic bus, global bus use this strat to allow marketers to vary price depdning on lvl demand & comp w/n overseas market
* in comp market price charged have to be lower than market where bus has monopoly
* price charged in other countries influenced by foreign currency exchange rates, and fluctuations change prices charged across countries, major risk for global bus

184
Q

standard worldwide (global) price + 2 major risks

A

standardised pricing charge customers same price for product anywhere in world
* succeed ONLY if foreign marketing costs low enough to not affect overall costs

  1. domestic bus can undercut standardised price
  2. changes in exchange rate can negatively impact exported price
185
Q

competitive positioning under global marketing

A

how bus differentiate products
* in comp marketing enviro
* domestic market global bus must show how products better than comp products
* w/o diff, takes mroe time, money, effort to encourage potential customers to purchase bus products
* diff successfully avoid competing on price only (hard to sustain LT) bus should develop product leadership, positive custoemr relationships, operational excellence
* to develop & maintain comp position in increasingly challenging enviro, gain deep understanding of dynamic enviros operating in, form strats according to evolving conditions

business y12 (6 decks)

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