Unit 2 Flashcards
What is the definition of marketing?
Marketing is the activities of an organisation to promote the right products and services to the right people in the right place using the right promotion.
What is the main aim of marketing?
To generate income and to make a profit.
What are the components of the marketing mix?
Product
The goods and services an organisation offers. A product is a physical thing that a person pays for and can take away, for example a can of drink. Services is a general term for everything other than products that are sold by a leisure and tourism organisation, for example the hire of footwear when ten-pin bowling.
Price
This is what the customer pays for goods and services
Place
This refers to the location of products and services
Promotion
This refers to how an organisation encourages people to buy their products and services.
What is the definition of a marketing mix?
A dynamic concept that can change rapidly to help organisations market their products or services. It is often called the 4p’s that includes product, price, place and promotion.
How might the marketing mix change?
New products may replace older, less fashionable products.
Organisations will review prices regularly and alter them to meet the needs of the organisation and its customers.
The location where customers can have easy access to the product may change as an organisation opens new branches or simply moves to a new site.
Providing products or services to that customers do not want or providing them at the wrong price will do little to generate profits or customer satisfaction.
What mnemonic shows what factors cause an organisation’s marketing mix to change?
ARMPIT
Addressing the needs of the local community and social deprivation
Retaining market share
Maintaining profitability
Promoting healthy lifestyles
Increasing profitability
Targeting participation in a particular activity
What mnemonic shows how organisations can segment their market?
GALES
Gender
Age
Lifestyle
Ethnicity
Social group
How might marketing be targeted to people based on their gender?
Holidays or facilities specifically targeted to men and women.
Gender specific sports were a lot more common back in the day, but now there’s been a change in how man and women perceive their interest and participation in sports.
However, it still remains a significant market segment.
E.g fitness classes for females only, arts and entertainment market caters for gender specific market, home entertainment and magazine publications.
How might marketing be targeted to people based on their age?
Organisations target the ‘grey market’ by providing holidays aimed at the needs of retired people.
Nowadays elderly retirees are able to perform more strenuous pursuits such as cycling and water based activities.
Theme parks and water parks are often targeted to children and teenagers.
How might marketing be targeted to people based on their lifestyle?
Lifestyle means how we live our lives, e.g type of job, work patterns, family commitments, etc.
Varys enormously between people and plays a major role in helping decide what leisure travel and tourism services we purchase. Most important market segment.
Organisations could target people with high levels of disposable income, who may not make many purchases but spend large sums of money when doing so.
Fitness services offered to those with a busy lifestyle.
Lifestyle for married couples with a young family different to single adults or retired couples.
Lifestyle marketing often involves the use of social media in promoting these new products.
How might marketing be targeted to people based on their ethnicity?
Common national or cultural tradition.
Can be expressed in a verity of ways, such as food, entertainment, travel and sport.
Visits to NI from US and Canada often underpinned by the recognition of the cultural and ethnic links of both countries.
Events can be marketed to ethnic groups, e.g. annual world pipe band championships.
How might marketing be targeted to people based on their social group?
A collection of people who share similar interests.
In the past this would be defined as categorisation based on employment and income, but this is no longer used.
Holiday market is often specific to types of people with particular interests such as history and cultural enthusiasts, people interested in visiting sites that were apart of recent films or television series, or recreational cyclists.
What are the 4 P’s?
Product
Price
Place
Promotion
How does product affect a customers opinion of an LTT organisation?
Products include tangible items and intangible customer experiences.
Main products and services are the major features of any activity. E.g. when going on holiday the resort hotel is a main part of the service as are the flights to and fro.
Ancillary products are those you need to complete your holiday, such as travel insurance, car hire, tour guides, local Wi-Fi connections, airport parking, etc.
Most products are targeted to wider LTT markets, but can also be targeted to specific markets.
This is done by identifying unique selling points (USP) or by branding.
How does price affect a customers opinion of an LTT organisation?
How much a customer is willing to pay for a product or service.
The main purpose in applying a price to products and services is to make the cost to the customer profitable to the provider.
Pricing can be seasonal in nature, e.g. cheaper accommodation during off peak periods such as Tuesday to Thursday and in the low season during winter.
Accommodation can be more expensive when demand exceeds supply, usually during the summer, peak periods such as weekends, or when special events are staged at specific locations.
LTT organisations often use pricing strategies such as offering discounts or special offers to particular market segments, such as ‘two for the price of one’.
Organisations also utilise competitive pricing. That is, offering a price lower than other companies so they can sell more. This can be risky as if the price is too low the organisation may be offering the product at a loss.
How does place affect a customers opinion of an LTT organisation?
Can mean different things to different organisations. E.g. holiday destinations or where a customer purchases a holiday.
Can refer to the internet where products and services are sold.
Generally organisations provide a fixed geographical base that is easily accessible to a customer through transport links, adequate parking and signage.
Organisations recognise the importance of aesthetics in their buildings through spectacular reception areas in hotels or well lit, comfortable offices in travel agencies.
How does promotion affect a customers opinion of an LTT organisation?
The means by which a customer becomes aware of the products and services that are being sold.
The LTT organisational is often driven by seasonal trends. For example, tour operators are keen to promote their holidays in December and January for the following summer season.
Other times organisations promote their holidays throughout the year.
What mnemonic shows the five main promotional techniques an organisation uses?
DAPPS
Direct marketing
Advertising
Public relations
Personal selling
Sales promotion
What is direct marketing?
When an organisation sends promotional material to a customer using mail drops, either in hard copy or electronically.
This requires information on particular customers to be easily available, often through digital databases or marketing organisations.
Can be very effective at targeting a specific market segment, and is often used by organisations who may store information on past customers and is therefore able to email or post information to them about new products or services.
The increasing use of electronic marketing has left many customers bored with ‘junk mail’ which is often ignored.
What is advertising?
This involves paying for a space to promote a product or service.
This comes at a financial cost to an organisation, so care must be taken to ensure value for money. The revenue obtained from the campaign must be greater than the cost of advertising to be worth while.
Advertising can be conducted through different levels of coverage depending on the needs of the organisation, e.g. through a small area or an entire nation.
This can be achieved through television, newspapers, radio, billboards, magazines, or online.
What is public relations?
PR
A systematic approach to developing a positive image for the organisation.
This is often developed through positive relationships with journalists or other media outlets. Thus, it is often free.
What is personal selling?
This relies on skilful employees who are able to help customers make their own choices about which service to buy.
It is not about getting customers to buy things they don’t want, but providing honest and accurate information that supports their customers in their decision making process.
Effective personal selling can generate repeat business and increase sales.
What is sales promotion?
Perhaps the most common form of marketing.
Usually short term promotions used to encourage customers to purchase goods or services and to simulate demand for something new or fashionable.
Very flexible and effective at responding to the changing needs of both customers and the organisation.
This can include:
Discounted offers
Extra or increased quantity offers
Sales offers and price cuts
Competitions and prize draws
Free gifts or samples.
State the mnemonic for pricing strategies and what It stands for.
CODS
Competitive pricing
(Setting price lower than competition, must be careful not to go too low)
Off peak and peak pricing
(Charge more or less at most or least popular times)
Discounts
(E.g. booking for a certain date, or for groups)
Special rates
(Used for certain customers e.g. children)
What is the mnemonic used for choosing location?
GPS
Good car parking
Public transport links
Signs
What is the mnemonic for buying products or services at a location?
BAP
Booking online
Accessible website
Pleasant surroundings
What is the mnemonic for the main promotional techniques?
DAPPS
Direct marketing
Advertising
Public Relations
Personal selling
Sales promotions
