U5 Ch.20 Marketing Flashcards
Marketing Concept
Philosophy that ensures that business always focuses on needs of consumers first before it develops g / s
Marketing Strategy
Examines overall business objectives and develops marketing activities to help business achieve them
Marketing Plan
Implements firm’s marketing strategy
should include:
-SWOT
-Market Segmentation
-Research Target Market
-Marketing Mix
Role of marketing plan
- Focus on business goals
- Persuade investors by showing in-depth analysis
- Benchmarking
Market segmentation
Dividing up market into clearly identifiable sections which have common characteristics. Allows firm to identify their target market and implement strategies to meet their needs and wants.
Types of segmentation
- Demographic
- Geographic
- Psychological
- Behavioural
Demographic Segmentation
Analyses according to characteristics like age, gender, income, occupation. One of the best for mass marketing since everyone has an age, gender and income. E.g. business often have different products for different age groups. Netflix has shows for adults and kids
Geographic Segmentation
Analyses consumers according to location. By using segments such as urban vs rural business can design strategy to satisfy chosen target market. E.g. Car manufacturers developing different products for people in very warm climates than those in cold climates
Behavioural Segmentation
Analyses consumers according to knowledge and attitudes towards use of / response to a product. People** Impulse buying**, getting value for money products or seasonal treats
Psychological Segmentation
Analyses consumers according to lifestyle, social status and personality.
Attitudes - Organic goods /Environment concerns
Lifestyle - Health conscious (sugar free goods)
Tastes - snacking while watching tv
Benefits of market segmentation
- Sales (ensures products meet needs)
- Market Share (easier to enter market when focused on small section)
- Low costs (doesn’t waste time trying to sell to different markets just focuses on smaller ones)
Target Market
Specific group of consumers who have common needs and wants that business aims its g + s at
Niche Market
small segment of a larger market who have different needs from the majority of consumers. It is a specialised market for specific products and services with only a few suppliers.
E.g. First-communion dresses / specialist transport wheelchairs
Implications of Niche Market
- Little to no competition (small market unlike general market where competition is stiff)
- HIgh cost base (specialization requires more expensive materials, skilled staff and personal service)
- HIgher price g/s (since production costs are higher for business)
- No economies of scale
- Less investment required (produce limited goods for a small market)
- Expansion potential (can establish name, build loyalty before expanding into different segments)
Product Positioning
Creates a positive image for product in consumers’ minds. Crafting a message that highlights the product’s USP. E.g. could emphasise that it saves money / makes life easier
Marketing Mix
4P’s
1. Product
2. Price
3. Place
4. Promotion
Product Portfolio
Range of products sold by business
4P’s: Product
good/service being sold to satisfy customer needs and wants relating to how it is designed, branded, packaged and its lifecycle
Product Design
should consider:
1. Function (how it will be used, feasible to produce and function correctly)
2. Cost of Production (materials, equipment, labour allows adequate profit margins)
3. Target Market (appeal + satisfy n+w + will pay?)
4. Competition (too similar? Is there a USP?)
5. Legal Requirements (consumer and safety E.g. SGSS Act)
Patent
Gives exclusive legal ownership rights to inventor of product or process. No other business/individual can use without agreement of patent owner
Brand Name
Distinctive name given to a busness and g + s it develops.
Importance of strong branding
- Creates Brand loyalty (good quality/consistency develops loyal consumers who are averse to other brands/ E.g. apple)
- Can charge higher prices (if associated with high quality, it allows higher prices than competitors E.g. apple > samsung)
- Brand Recognition (strong brand easy to identify against competitors e.g. apple)
- Easier to launch new products (under existing name, allows build up market share e.g. iPad)
- Helps advertising (Strong brand can be advertsied in various formats
Own-Brand Products
Products sold by retailer under own name and logo. E.g. tesco value and tesco finest. Can be sold at lower prices and is aided by retailer brand but may be perceived as lower quality
Packaging
Should protect from damage and persuade consumers to buy product. Should provide useful info and be attractive and recognisable