Unit 2: AIM A :Developing A Marketing Campaign Flashcards
January External Exam
What is Marketing
Marketing is a fundamental strategy of any business to provide the needs and wants of customers, which allows us to compete with other business rivals
The Role of Marketing
-Without marketing customers will not be aware of the product or service a business offers
- Marketing aims to spread the word to the potential customers and turn them into potential customers
Principles and Purpose of Marketing
List Me 5
- Identifying Needs
- Promoting Products or Service or contributing brand development
- Pricing of the brand
- Promoting the brand by various means
- Distributing the brand in the right locations
List me 4 Principles and Purpose of Business
- Anticipating Demand
- Recognizing Demand
- Stimulating Demand
- Satisfying Demand
What is Anticipating Demand and Give me one example
Marketing aims to work out what customers might want in the future therefore Market Research is used to ask customers questions about products and services.
One Example: Farmers will need to anticipate the demands for salad during hot weather or a demand for Christmas
- Forecasting Sales
- Identifying needs
- do Primary and secondary research
What is Recognizing Demand and Give me one example
Market Research can help identify customers needs and wants that are not being meet now and a sort of product or service that might fulfil these needs and wants
One Example: Nike keeps up to date with what companies are selling in one way to recognize demand of the products and trends in customer behaviours
- Identifying the gap in the market
- Forecasting marketing Sales
-Understanding customer marketing and needs
What is Stimulating Demand and Give me one example
Business often use advertising and social media to persuade customers that they really want or need a product or service
For Example: Advertising on Bill boards, newspaper or online
- Informing Existing and potential Customers
- Generating interest
- Developing brand recognition
What is Satisfying Demand and Give me an Example
Business carry out market research to find out what customers think of their products and services so they can adopt and improve them
For Example: Making sure there is enough stock to cover popular toys leading up to Christmas
What are the 6 different marketing aims and objectives?
- Understanding Customer Wants and Needs
- Developing New Products
- Improving Profitability by reducing costs
- Increasing Market Share
- Diversification
- Increased Brand awareness and Loyalty
What is an objective?
A simple, short-term goal
What is an aim?
A more complicated, longer-term goal.
Why is it essential to understand customer wants and needs?
Example
Understanding customer behaviour enables a business to operate and develop to serve its customers.
For Example: Customers may think they want but in fact needs something different so lets say a customer may want to buy a tablet when they might just need a laptop. The one doing Marketing will need to differentiate between the needs and wants in order to promote their products effectively
Why is it essential to Develop new Products?
Example
When customers needs and demands are identified . The business may find that a new product or service is required. Being the first to offer a product or service can mean massive sales and profit.
For Example: Walkers Crisps may generate different flavours for customers
PLAYSTAION, the business may develop new games and accessories
Why is Improving Profitability by reducing costs essential?
Example
To Improve Profitability = More sales can mean more profit.
Marketing should be done to improve profit because greater profits can be made by setting the selling price much higher than the cost of making the products or delivering the service.
Therefore, Marketing should be done as it helps to convince customers that a higher price means a better quality product.
Why is Increasing Market share essential?
Example
All businesses have competitors and must fight for their share of the sales as business strive to become market leaders and starts achieve this by increasing their market share. Market share can be measured by the volume of good and the value of goods
For Example: In early 2015 Tesco was reported as having the greatest market share in the UK therefore market leadership is the position of a business with the largest market share in a given market with successful brand image
Why is Diversification essential?
Example
- A business does not want to rely on sales of one product in one market. Demand could fall; competitors might take their market share.
- Offering different products and services in different markets is a good way to make sure that the business survives and continues to grow.
For Example: a hybrid version of a tablet
Why Increased Brand Awareness and loyalty essential?
Example
-Brand loyalty is a measure of how likely a customer is to buy a brand compared to competing brands.
- Successful raising of brand awareness can increases sales because customers will constant seeking of purchasing an item
- Loyalty means the number of sales
2 Types of Markets
Mass and Niche
What is a Mass? Example
Mass Market means they cover different age groups
for example: Milk, sunglasses or cars
What is Niche? Example
Niche markets are smaller segments of the market. Consumers want something different from the mainstream and are not attracted to mass market products.
For Example: Jewish Community prefers kosher and Muslim community prefers Halal which represents the local demographic
Market Segmentation
Its a Marketing Strategy where business split the market for a product or service into different parts or segments
What are 4 Examples of Marketing Segmentation
- Demographic
- Age
- Income
- Behavioural
What is Demographic Segmentation?
Example
Identifies subgroups of the population based on their demographic profile or characteristics
They Include:
- Age
- Gender
- Level of Education
- Race
- Religion
What is Age Segmentation?
example
Marketers use age-based segmentation to target different age groups and their distinct needs and preferences. Different age groups,
For example: Infants, Young Adults, Adults and Old people
What is Income Segmentation?
Example
Income segmentation considers how much people earn and how much disposable income. they have. This is extremely important for certain products.
For example, a business selling high-end luxury cars or expensive jewellery would need to target people with a high level of income.
What is Behavioural Segmentation?
Example
Behavioural segmentation is a type of marketing strategy that filters and groups potential customers based on shared behavioural patterns. This strategy can offer valuable insights and help organizations develop effective ways to increase customer engagement, satisfaction and sales
What are the different aspects of branding?
Example
1) Brand personality
2) Brand Image
3) Unique Selling Point (USP)
4) Implications of business size on marketing Activity
5) Specialist staff
6) Budgetary Constrains
What is Branding?
Involves giving a product or service a recognisable identity. A brand will have is own colours, packaging and style.
What is Branding Personality
Example
The brand personality and image needs to be attractive to the target market. It must be relevant to them and reflects their own preferences, needs and wants.
For Example: Nike, Adidas and Dior
What is Brand Image?
Example
A strong brand image can stick into customers mind and helps link to products with a particular supplier or manufacture which makes it a strong brand image.
For example: Dolce & Gabbana or Ralph Lauren
What is Unique Selling Point?
There should be something special about the product or service that sets it apart from the competition. This should give it the edge when consumers are thinking about making a purchase.
For Example: Air India promoted their first business class flat beds and in First Class cabins and the giant A380 which announced their personal shower facilities
What is Implications of business size on marketing activity?
Example:
There are many implications for marketing that are influenced by business size such as:
1. Product development to meet customers needs
2. Eliminations of products and service which no longer meets the requirement of customers needs
3. Marketing Methods For promoting branding which are cost effective
Why is Budgetary Constrains essential ?
Example:
All Marketing should be based on a budget to ensure that business do not overspend and they can justify their expenditure based on their sales
For example: Coke Cola may afford to spend money on advertising on bill-bords or multi media where as a local sandwich shop may use to advertise via local newspaper
What is Availability of specialist Staff and Why is it essential and give me examples:
If a business does not have a specialist staff in the house to successfully market their brand, then they might need to source external support from specialist from specialist.
What are the two Influences on marketing activity?
Internal Influence and External Influence
What are the 4 Internal Influences?
- Cost Of Campaign
- Availability Of Finance
- Staff Expertise
- Size and Culture of the business
What are the 6 External Influences
1.Social Factors
2. Technological Factors
3. Economics Factors
4. Environmental Factors
5. Political Factors
6. Legal Factors affect Marketing Activities
7. Ethical Factors
What is Cost of Campaign?
Example:
The business decides how much money to spend on the campaign, but the cost should make sense for the size of the project.
So Business needs to make sufficient cuts if they try to overspend
For Example: If you’re running a small local ad for your neighbourhood, spending $10,000 might be too much, but $500 could be more reasonable.
What is Availability?
Example:
Different businesses manage their money in different ways. If the business is short on cash, it might not be able to afford marketing activities.
Example: If a business is struggling to pay its employees or rent, it might have to delay a big marketing campaign until they have more money available
What is Staff Expertise ?
Example:
The people working for the business may not have the skills needed to run the campaign.
Example: If you’re a small bakery and want to create a big online ad campaign, your staff might not know how to do that. You might have to hire a digital marketing expert.
What is Size & Culture?
Example:
The size and culture of the business affect how it handles marketing.
Example: A large company with thousands of employees might run global campaigns with a formal, structured approach. A small startup might use informal, creative ways to market their products.
Name me the External Influences…
1.Social Factors
2. Technological Factors
3. Economics Factors
4. Environmental Factors
5. Political Factors
6. Legal Factors affect Marketing Activities
7. Ethical Factors
What is Social Factors?
Example:
Social trends, behaviours, and events affect when and how much consumers want a product.
Example: If a company makes summer clothes but it rains a lot during the summer, fewer people will buy those clothes, which changes the demand.
What are Technological factors?
Example:
Technology impacts how businesses market their products and how fast they can do it. This can be good or bad.
Example: With social media, businesses can advertise instantly and reach millions, but they also need to keep up with fast-changing technology like AI marketing tools.
What are Economics Factors?
Example:
The health of the economy affects how businesses do marketing. If the economy is bad, people might spend less, and businesses need to adjust their marketing strategies.
Example: During a recession, a company may focus on cheaper products in their ads because people are trying to save money.
What are Environmental Factors?
Example:
Environmental issues or policies affect how businesses operate and market their products.
Example: If a company markets itself as eco-friendly, it must follow green practices like reducing plastic packaging to appeal to environmentally conscious customers.
What Are Political Factors?
Example:
Government laws and decisions can either limit or help marketing activities.
Example: A new law that bans certain ads for junk food might limit how a fast-food company can advertise. On the other hand, government programs supporting small businesses could help a company promote itself more easily.
What are Legal Factors affect Marketing Activities?
Example:
Different countries or markets have their own laws, which businesses must follow when marketing their products.
Example: In one country, there might be strict rules about advertising to children, while in another, the laws may be more relaxed.
What are Ethical Factors?
Example:
Businesses must consider what is morally right, based on the values of the business and its customers.
Example: A company that markets products using honest messaging without misleading consumers follows ethical standards, while one that exaggerates claims may lose trust.
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