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business studies > Topic 2- Marketing > Flashcards

Topic 2- Marketing Flashcards

1
Q

What is the strategic role of marketing?

A

Develop and implement a plan to enhance sales, hence increasing profits

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2
Q

How is finance interdependent on each of the key business functions?

A
  • Operations- ensuring product is ready by marketed date
  • Finance- ensuring there are adequate funds to advertise products
  • Human resource- ensuring people are employed with marketing skills
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3
Q

What was the first approach of marketing?

A

Production approach

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4
Q

When was the production approach practiced?

A

1820-1920s

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5
Q

Name the main aspects of the production approach

A
  • Taking orders and delivering products
  • “If we make it, they will. buy it” ideology
  • Production orientate
  • Caused by industrial revolution which saw demand exceed production capabilities
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6
Q

What is the name of the next approach?

A

Selling approach

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7
Q

When was the selling approach practiced?

A

1920- 1960s

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8
Q

Name the main aspects of the production approach

A
  • No longer could a business rely on selling all that it produced
  • Sales orientated to beat competition and gain customers
  • Sales representatives went door knocking
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9
Q

What is the name of the final approach?

A

Marketing approach

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10
Q

What is unique about this approach?

A

There are two stages;

  • Stage one- 1960-1980s
  • Stage two- 1980- present
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11
Q

Name the aspects of stage one

A
  • Placing the customer at the centre of all marketing activities
  • Satisfying customer needs became the responsibility of businesses
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12
Q

Name and define the aspects of stage two

A
  • CSR- marketing plans appeal to consumer values of environment
  • Customer orientation- basing decisions on customer wants
  • Customer satisfaction- measuring how products meet of exceed customer expectations
  • Relationship marketing- development of long-term and hence cost- effective relationships with employees
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13
Q

Name, define and provide one example of the types of markets

A
  • Resource- primary production, mining
  • Industrial- secondary or tertiary, Sony buys plastics to produce their products
  • Intermediate- purchase finished product, adjust, and sell them again, Subway
  • Consumer- use the product as it comes, cotton on (clothes)
  • Mass- standard product, Target
  • Niche- small market segment, Gucci
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14
Q

Name the three influences on marketing

A
  • Factors influencing customer choice
  • Consumer laws
  • Ethics
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15
Q

What are the factors influence consumer choice?

A
  • Psychological
  • Sociocultural
  • Economic
  • Government
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16
Q

Name and define the six main factors which influence psychological buying

A
  • Perception- how individuals select and organise information to get a meaning
  • Motives- mostly comfort, health, safety, ambition, pleasure, fear, amusement, approval of others
  • Attitudes- overall feeling about a product and business
  • Personality and attitudes- how one views themselves
  • Learning- changes in an individual’s behaviour caused by information and experiences
  • Brand loyalty- favourable attitude towards a single brand results in repeat sales over time
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17
Q

Name and define the four main factors which influence sociocultural buying

A
  • Social class- (education, occupation, income) higher income earners are willing to buy ‘prestigious’ products to symbolise their class
  • Culture and subculture- learned values, beliefs, behaviours and traditions of a society; influence lifestyle choices hence products
  • Family and roles- children will greatly influence selection of products as well as individuals purchasing on behalf of their role
  • Reference (peer) group- group of people to whose individuals closely identifies, adopts beliefs and values. Customer’s buying behaviour changes with the groups.
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18
Q

Name and briefly describe the two main factors which influence economic buying

A
  • Boom- low unemployment and rising incomes. Businesses and customers willing to spend and optimistic about the future. Increase production, intensified promotion. Customer security leads to greater spending, higher end purchases
  • Recession- high unemployment, low incomes, lack of financial confidence. Cautious spending from customers and businesses, high price-consciousness, demand for valuable, long lasting products - marketing focus on retaining market share and highlighting demands
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19
Q

Name the three types of consumer laws

A
  • Deceptive and misleading advertising
  • Price discrimination
  • Implied conditions
  • Warranties
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20
Q

Define fiscal policy

A

Raising revenue from taxes, spending on welfare and services for the community

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21
Q

Define monetary policy

A

Level of interest rates and money supply

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22
Q

Define microeconomic policy

A

Aimed at promoting greater competition and restructuring key industries

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23
Q

What is the meaning of consumer laws?

A

Relates to dealings between consumers and businesses

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24
Q

Name and explain the purpose of a consumer law

A

The Australian Consumer law. Purpose is to give Australian consumers the same rights and protection wherever they are in Australia

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25
Q

Name and define the two types of deceptive and misleading advertising

A
  • Bait and switch- advertising a few products at reduced and, therefore, enticing prices to attract customers. When the advertised products quickly run out, customers are directed to higher priced items
  • Dishonest advertising- when an advertisement uses words that are deceptive or claims that a product has some specific quality when it does not
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26
Q

Define price discrimination

A

Setting different prices for the same products in seperate markets

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27
Q

Name and define an act which fights price discrimination

A

The Competition and Consumer Act prohibits price discrimination

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28
Q

What are implied conditions?

A

The unspoken and unwritten terms of a contract

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29
Q

What are consumer guarantee?

A

Consumer guarantees are rights to remedies from where goods purchased fail to comply with the consumer guarantee provisions

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30
Q

What is accapetable quality?

A

Means that products must be safe, lasting and with no faults

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31
Q

What is a warranty?

A

A promise made by a business that they will correct any defects in the goods they produce or services they deliver

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32
Q

Name the aspects of ethics

A
  • Truth
  • Accuracy and good taste in advertising
  • Products that may damage health
  • Engaging in fair competition
  • Sugging
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33
Q

Name the main criticisms of ethical marketing

A
  • Creation of needs
  • Stereotypical images of males and females
  • Use of sex to sell products
  • Product placement
  • Invasion of privacy
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34
Q

What are the three ways which truth and accuracy may not be included in advertising?

A
  • Concealed facts
  • Exaggerated claims
  • Vague statements
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35
Q

What is good taste in advertising?

A

A subjective term which determines whether an advertisement is offensive or not

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36
Q

Name an example of unethically advertising products that may damage health

A

Advertising junk food on kids television shows

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37
Q

Name an example of ethically advertising products that may damage health

A

Not advertising cigarettes at all, packets containing graphic images and health warnings

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38
Q

What is an advantage of engaging in fair competition?

A

Attraction of customers means an increase in sales and profits

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39
Q

What Act ensures businesses compete fairly?

A

Competition and Consumer Act

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40
Q

Name and define three example of anti-competitive conduct

A
  • Cartel conduct- businesses act together instead of against each other
  • Anti competitive agreements- lessening competition in a market
  • Misuse of market power- businesses which have market power, taking advantage of such to damage a competitor
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41
Q

Define the term sugging

A

Selling under the guise of a survey

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42
Q

Why does it have a long term negative consequence on the market?

A

more difficult with response rates to surveys and questionnaires steadily declining

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43
Q

Name three reasons as to why ethical behaviour is important

A
  • Leads to marketing and business opportunities
  • Attract customers and increase customer satisfaction
  • Attract more investors
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44
Q

Name three reasons as to why government regulations are important?

A
  • Protect consumers
  • Protect businesses
  • Increase customer trust and confidence in business
45
Q

Name and define the three unfair competitive behaviours?

A
  • Price fixing- two businesses agreeing not to sell products below a certain price
  • Long-term loss leader- undercutting smaller competitors
  • Misleading advertising- regarding products
46
Q

What is the ACCC and what does it do?

A

The Australian Competition and Consumer Commission regulates the level of competition within a range of industries. It promotes fair and ethical behaviour in businesses competition and allows businesses to lodge complaints against competitors regarding behaviour that they deem to be unfair and against the Acts.

47
Q

Name the six marketing processes

A
  • Situational analysis
  • Market research
  • Establishing marketing objectives
  • Identifying target markets
  • Developing marketing strategies
  • Implementation, controlling, monitoring
48
Q

Name the two aspects of situational analysis

A
  • SWOT

- Product life cycle

49
Q

Name what SWOT stands for, and whether it is an internal or external influence

A
  • Strengths- internal
  • Weaknesses- internal
  • Opportunities- external
  • Threats- external
50
Q

Why is SWOT a useful tool in monitoring a businesses progress?

A

It provides an indication of the business’s position compared with its competitors and how to improve.

51
Q

Name each of the four stages within the product life cycle

A
  • Introduction
  • Growth
  • Maturity
  • Decline
52
Q

What is market research?

A

Collecting, recording, analysing information concerning a specific marketing problem

53
Q

Name the three steps of market research

A
  • Collecting data
  • Analysing and interpreting that data
  • Implementing information
54
Q

Name three examples of primary data

A

Primary- survey, observation of customer behaviours, word of mouth

55
Q

What two categories can secondary data be divided into? Name an example fo each

A

Internal- statistics

External- magazines

56
Q

What is statistical interpretation analysis?

A

Data that represents average, typical or deviations from typical patterns.

57
Q

What approach should be adopted when determining marketing objectives?

A

SMART approach- specific, measurable, achievable, realistic and time-bound

58
Q

Name four areas in which a business may establish objectives for

A
  • Increasing market share
  • Expanding the product range
  • Expanding existing markets
  • Maximising customer service
59
Q

What is a target market?

A

A particular group of consumers at which a product or service is aimed

60
Q

Distinguish between a primary and secondary target market

A

Primary- most resources are directed to this market

Secondary- smaller market

61
Q

Name and define the three approaches in identifying and selecting a target market

A
  • Mass marketing approach- range of customers, mass produced and promoted to all buyers
  • Market segmentation approach- total market is subdivided into groups of people who share common characteristics
  • Niche marketing approach- narrowly selected
62
Q

What four elements does the marketing mix consist of when developing marketing strategies?

A
  • Product
  • Price
  • Promotion
  • Place
63
Q

name the two aspects of implementation, monitoring and controlling

A
  • Developing a financial forecast- comparing actual and planned results
  • Revising the marketing strategy
64
Q

What two elements must be included in a financial forecast?

A

Cost estimate

Revenue estimate

65
Q

name and define the three performance indicators used to measure the success of the marketing plan?

A

Sales analysis- comparison of actual sales with forecast sales
Market share analysis- evaluating marketing strategies compared to competitors
Marketing profitability analysis- breaking down of total marketing costs into specific activities

66
Q

Name three things which may done when revising the marketing strategy

A
  • Changes in the marketing mix
  • New product development
  • Product deletion
67
Q

What is market segmentation?

A

Breaking down a total market into small markets based on characteristics

68
Q

Name and define the four major segments

A
  • Demographic- age, sex, income, cultural background and family size
  • Geographic- dividing market according to locations
  • Psychographic- personality characteristics, motives, opinions, socioeconomic group and lifestyles
  • Behavioural segmentation- customers’ relationship to the product
69
Q

Name three factors of behavioural segmentation

A
  • Usage rate
  • User loyalty
  • Benefits sought
70
Q

Name two factors in product differentiation

A

Price and quality

71
Q

Name one factor in service differentiation

A

After-sales service

72
Q

What is central to product and service positioning?

A

Marketing mix

73
Q

Name, define and provide an example of the three different types of branding strategies

A
  • Manufacturers brand: owned by the manufacturer. E.g. Kraft Foods
  • House (private) brand: owned by a retailer or wholesaler. E.g. Myer brand Miss Shop
  • Generic brands: products with no brand name at all. E.g. Home brand/Select (Woolies)
74
Q

Distinguish between labelling and a label

A

Labelling is the presentation of information on a product or its package. Whereas, a label is part of the package that contains information

75
Q

Name and define the three pricing methods

A
  • Cost based- cost of producing or purchasing a product and then adding a mark-up
  • Market based- interaction between supply and demand- whatever the market is prepared to pay
  • Competition based- price covers costs (cost of raw materials and the cost of operating the business) and is comparable to the competitor’s price
76
Q

What is a price leader?

A

A business whose pricing decisions influence pricing decisions of competitors

77
Q

Name and define the four pricing strategies

A
  • Skimming- charges the highest possible price for the product during the introduction stage of its life cycle
  • Penetration- charges lowest price possible for a product to achieve large market share
  • Loss leaders- product sold at or below cost price, influencing customers to buy other products as well
  • Price points- selling products only at certain predetermined prices
78
Q

Name the two aspects of promotion

A

Elements of promotion mix

Communication process

79
Q

What is the role of promotion?

A

Inform, persuade and remind a target market about its products.

80
Q

Name the four elements of the promotion mix

A
  • Advertising
  • Personal selling and relationship marketing
  • Sales promotion
  • Publicity and public relations
81
Q

Define and state the purpose of advertising

A

Paid, message communicated through a mass medium, Purpose is to allow businesses to reach large audiences or niche markets

82
Q

Distinguish between personal selling and relationship marketing

A

Personal selling is the process of directing a sales member to a customer, whereas, relationship marketing is developing a strong, long-term relationship with a customer leading to loyalty

83
Q

What is sales promotion?

A

Use of activities or materials as direct inducements to customers

84
Q

Distinguish between publicity and public relations

A

Publicity is free news about a businesses product, whereas, public relations is creating and maintaining favourable relations between customers and businesses

85
Q

Name the two aspects of the communication process

A
  • Opinion leaders

- Word of mouth

86
Q

Define ‘channel’ in regards to the communication process

A

Methods used for carrying a message

87
Q

What is an opinion leader? Name an example

A

Someone who influences others, like an actor or social media influencer

88
Q

What is word of mouth?

A

People influencing each other during conversations

89
Q

Name the three aspects of place/ distribution

A
  • Distribution channels
  • Channel choice
  • Physical distribution issues
90
Q

Name the four distribution methods

A
  • Producer to customer- simplest channel and involves no intermediaries
  • Producer to retailer to customer- retailer is an intermediary who buys from producers and resells to customers
  • Producer to wholesaler to retailer to customer- buys in bulk, from producer, then resells in smaller quantities to retailers
  • Producer to agent to wholesaler to retailer to customer- agent distributes products to wholesalers but never owns the product
91
Q

Name and define the three fields of channel choice

A
  • Intensive- many outlets, product is readily available to a wide selection of stores or locations
  • Selective- limited number of stores/locations to sell or distribute a product
  • Exclusive- one retail outlet for a product
92
Q

Name the three physical distribution issues

A
  • Transport
  • Warehousing
  • Inventory
93
Q

What are the four P’s considered appropriate for?

A

Tangible products

94
Q

Name the other three P’s, which are applicable for intangible products

A
  • People
  • Processes
  • Physical evidence
95
Q

Define how people have an impact on services

A

Consumers base perceptions and make judgements on how employees treat them

96
Q

Define how processes have an impact on services

A

Flow of activities that a business will follow in its delivery of a service

97
Q

Define how physical evidence have an impact on services

A

Businesses should provide high quality physical evidence (environments) in order to create an image of value and excellence

98
Q

What is E-marketing?

A

The practice of using internet to perform marketing activities

99
Q

Why may it be beneficial?

A

Internet allows businesses to interact with customers faster, cheaply and personally

100
Q

Name three types of e-marketing technologies

A
  • Social media
  • Text messages
  • Website
101
Q

Name one advanatge and one disadvantage of social media advertising

A
  • Advantage- effective in gaining cheap exposure

- Disadvantage- difficult to measure success

102
Q

Name the five aspects of global marketing

A
  • Global branding
  • Standardisation
  • Customisation
  • Global pricing
  • Competitive positioning
103
Q

What is global marketing?

A

The application of marketing strategies for the global market

104
Q

What is a TNC?

A

A Transnational Corporation is any business that operates on a worldwide scale

105
Q

Define global branding

A

Worldwide use of a name, term or logo to identify the seller’s products.

106
Q

What is an advantage of standardisation in terms of global brands?

A

Marketing mix can be the same in all countries

107
Q

What is one consideration when making products customisable?

A

Customise according to economic, political and sociocultural characteristics of the target country

108
Q

Distinguish between the three global pricing techniques

A
  • Customised pricing- charging different countries differing prices for the same product
  • Market customised pricing- setting prices according to the local market conditions
  • Standard worldwide pricing- charging different countries the same price for the same product
109
Q

What is competitive positioning?

A

It relates to how a business will differentiate its products

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