Unit 2 AOS 2 Flashcards
What is marketing
= process of implementing strategies 2 price, promote + distribute products 2 current + potential c’er appropriately
-> bus should also focus its marketing strategies directly 2 c’er with in c’er base b/c inc. likely 2 be most receptive 2 marketing strategies.
What is a customer base
= group of c’er continuously purchasing g/s from bus, identified through creating customer profiles ( description about type of person bus selling 2) and thus should aim 2 ensure c’er needs + wants are met by the product
What is market orientation
= A strategic focus on identifying c’er needs and wants in order to define new products to be developed
Types on external factors
- Operating
- Macro
External operating factors examples
Customers -> needs + wants = essential therefore marketing strategies must ne c’er focused
Suppliers -> providers of resources 4 bus 2 sell g/s
Competition -> bus must be aware of marketing strategies of comp 2 dev unique marketing plan + create p.o.d
-> Affect how bus establishes + maintains c’er base and brand identity
What are external macro factors and some examples
= things beyond the control of a business h/r still have impact on how bus deal with c’er base + brand identity
- Legal
- Economic
- Social
- Tech
What is branding
= refers 2 a bus + marketing concept that helps ppl identify a particular company, product or individual
Importance of a brand / branding
-> brand influences ppl’s perceptions of companies, products or individuals helping 2 create brand identity within marketplace
Brands provide enormous value 2 the company or individual, giving them a competitive edge over others in the same industry
What is corporate culture
= shared values + beliefs of ppl in organisation
( Culture = “personality” of organisation / “how we do things around here” )
The impact of corporate culture
-> +ve culture inc. prod, qual + employee engagement
(-> possible high levels of success contributing 2 c’er base growth)
The link between corporate culture and consumer base
-> bus values c’er therefore prioritise c’er service
- Bus able 2 conduct itself well + popular can reap rewards + get message out 2 community e.g via S.M
- If poor -> risk c’er base + brand identity b/c fail 2 live up 2 expectations
What is market research
= Process of finding and analysing info re c’er wants + needs + nature of market carried out 2 help bus make decisions that will appeal 2 c’er + compete in market
What’s the purpose of market research
Gather info re…
- size + comp structure of market
- products
- pricing in the market
- promotion in market
- c’er
When/ where can market research be used
1) 2 identify new opportunities
2) 2 assess feasibility of plans/ideas
3) 2 review success of plans/ideas once implemented
What is primary research + example
= collection of info 1st hand 4 specific purpose
e.g surveys, focus groups, c’er reviews
What is secondary research
= use of info that has already been collected 4 dif purpose
e.g ABS, reports, articles
What is qualitative data
= Info x able 2 be counted, measured or expressed using numbers
What is quantitative data
= inc. specific / can be counted, measured or expressed using numbers
3 ways 2 interpret marketing data
1) Confidence intervals -> indication of how certain researchers are of result
2) Correlation -> identifying relationship b/n 2 variables
-> expressed on a spectrum -1 – 1
3) Extrapolation -> using prev patterns of numerical data 2 predict values in the future
What is a target market
= specific group of c’er @ which bus product is aimed at
Market research process
1) research objectives
2) perform secondary research + analyse
3) decide on primary research methods
4) conduct primary research + analyse data
5) present data + produce report
6) adapt and implement new products 2 meet c’er needs
What is market segmentation
= classification of c’er / potential c’er into groups, each of which responds differently 2 different products or marketing approaches.
-> involves identifying particular groups that have broadly sim. needs + wants within a market + selling g/s 2 them profitably
t/f bus try 2 identify markets that have segments large enough to target.
Ways to segment a market
- Behavioural
- Demographic
- Geographical
- Income
Why use market segmentation
-> enables a bus 2…
1) Accurately define market(s)
2) Position products + services 2 match demands of particular segments
3) Identify gaps in the market
4) Make inc. efficient use of marketing resources
What is niche marketing ( benefits + drawbacks in notes book )
= When firms target a g/s at a small segment of a large market
What is mass marketing ( benefits and drawbacks in notes book )
= strat of selling goods with appeal + promoting them 2 all types of c’er
What is market positioning
= how a business’ products are perceived relative 2 comp
What is the marketing mix
= elements of a firm’s approach 2 marketing that enables it to satisfy and delight it’s c’er
-> Described as 7p’s = physical evidence, price, product, promotion, place, ppl, process
Marketing mix : product
-> includes physical features + specifications of product that should possess features that ensure it appeals 2 needs of target market
e.g functionally, appearance and aesthetic
Marketing mix : price
-> refer 2 way product is priced + rationale behind it
Possible strats = price skimming, penetration pricing, competition based pricing + cost plus pricing
Market mix : place
-> refers 2 where product will be sold
Market mix : promotion
(and aims + methods)
-> refers 2 how the product is advertised
Aim = inform c’er, create awareness, build brand image, create c’er loyalty, persuade c’er
Methods = Advertising, sponsorship, direct marketing, etc.
Marketing links
Segmentation -> Market research -> market mix -> Establish c’er base
What is price skimming
= setting high original price 4 a g/s then gradually decrease it based off c’er responses + reactions in the market
What is competition based pricing
= pricing g/s 2 be similar 2 competitors prices 2 ensure competitiveness
What is cost-plus pricing
= calculating the total cost of production of a g/s then adding a mark u 2 ensure a profit is made
What is penetration pricing
= offering a low price 2 increase c’er support + take c’er from competitors ( as prices are lower and more appealing ) then gradually increase as c’er base increase
Marketing mix: physical evidence
-> refers 2 non-human elements of bus that c’er interact with
e.g facilities / interior design / ambience / evidence of service performed / digital world
What are customer relationships
= refer 2 managing interactions with previous, current and future c’ers
Benefit of customer relations strategies
= encourage occasional c’er 2 become regular c’er through developing strong rep, being the difference b/n success and failure in a bus potentially
What is a proactive approach to customer service
= anticipating possible problems b4 they arise, + having all the systems + processes in place 2 prevent problems occuring
What will a successful complaint handling system include
- Ability 2 deal with complaints immediately + keep c’er informed
- Simple process 4 c’er 2 complete
- Clear communication that complaints will be welcomed
What will a successful complaint handling system include
- Ability 2 deal with complaints immediately + keep c’er informed
- Simple process 4 c’er 2 complete
- Clear communication that complaints will be welcomed
What are loyalty programs
= involves earning points based on amount of money they spend in a bus, designed 2 keep c’er coming back 2 bus -> build loyalty (inc. sales)
What is the purpose of public relations
= 2 project a +ve image of the bus 2 the outside world through planned communication strategies
-> can help bus achieve bus objectives e.g inc. sales 2 in.c profits + inc. market share
What is the purpose of public relations
= 2 project a +ve image of the bus 2 the outside world through planned communication strategies
-> can help bus achieve bus objectives e.g inc. sales 2 in.c profits + inc. market share
Function of public relations
1) promoting = reinforce familiar attitudes + c’er perceptions re bus rep
2) effective communications of messages = use advertising 2 convey info re bus + products
3) crisis monitoring = protect rep from neg press / rumours
4) issues monitoring = protect sales by prewarning of pub. trends affecting sales
What is the main difference b/n public relations + c’er relations management
= Audience
CMR aim 2 build strong + lasting relationships with past, future and present c’er
PR aim 2 create strong rep 4 bus + +ve perception in gen public
Types of customer relations strategies
- Customer loyalty schemes
- Proactive approaches
- Complaint/ review services
- Refund + returns services
CSR in marketing
= re ensuring bus provides most accurate info 2 c’er 2 enable them 2 make an accurate decision re whether g/s are suitable 2 meet needs
Types of marketing 2 benefit community
-> community sponsorships
= include supporting local org e.g sports teams, through donations of money, equipment or facilities -> return, bus can display signage + sponsorship certificate @ bus
Types of marketing 2 benefit community
-> Green marketing
Refer 2 selling g/s by highlighting environmentally friendly -> recognised by terms like “organic, eco friendly, recyclable or sustainable”
