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Business Management Unit 2 > Unit 2 AOS 2 (Exam Only) > Flashcards

Unit 2 AOS 2 (Exam Only) Flashcards

1
Q

what is internal environment?

A

The ability to establish a customer base and retain it is often related to the skills of the owner and staff of that business.

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2
Q

what is Operating environment?

A

How do local competing businesses differentiate their product or services.

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3
Q

what is Macro environment?

A

How have technological and social forces (particularly fashion) affected the marketing of well-known products?

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4
Q

what do all businesses seek?

A

All businesses seek to appeal to their customer base and to promote a positive brand identity

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5
Q

define brand identity

A

Brand identity is the message that customers receive about the business and its product

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6
Q

what can brand identify include?

A

These messages can include a name, term, symbol, design or any combination of these that identifies a specific product and distinguishes it from competitor products

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7
Q

what do businesses need to consider when promoting its brand?

A

In promoting its brand, a business will need to consider factors from the internal and external environments that could affect that strategy

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8
Q

factors of the internal environment?

A
  • Owners and managers
  • Employees
  • Culture and policies
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9
Q

what do Owners and managers need to do in the internal environment?

A

leaders need to recognise the need for any potential changes to marketing plan & implement them, need to know business objectives and work to achieve them, need skills in developing customer profile

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10
Q

what do Employees need to do in the internal environment?

A

details of the marketing strategy should be instilled in employees so they act with customers in a way that’s consistent with the marketing strategy eg friendly, polite and efficient service is essential in establishing a customer base

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11
Q

what do Culture and policies need to be in the internal environment?

A

the business reputation and values become part of the brand identity - needs to be positive to establish a sound customer base. Policies and culture needs to reflect the brand that is marketed

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12
Q

factors of the the external (operating) environment?

A
  • Customers
  • Suppliers
  • Competitors
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13
Q

what are consideration around Customers in the external (operating) environment?

A

the needs and preferences of customers are ESSENTIAL - marketing strategy must be customer focused

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14
Q

what are consideration around Suppliers in the external (operating) environment?

A

suppliers depend on the success of the businesses they supply to

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15
Q

what are consideration around Competitors in the external (operating) environment?

A

marketing strategy needs to distinguish the business from its competitors - must be more effective than the marketing strategy of its competitors

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16
Q

what are the factors of the external (macro) environment?

A
  • Legal forces
  • Technological forces
  • Social forces
  • Economic forces
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17
Q

what are consideration around Legal forces in the external (macro) environment?

A

The Competition and Consumer Act 2010 has made certain types of marketing practices illegal. Important to ensure marketing practices are ethical and socially responsible

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18
Q

what are consideration around Technological forces in the external (macro) environment?

A

website presence, phone app & social media to promote the business. Paywave can improve customer convenience

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19
Q

what are consideration around Social forces in the external (macro) environment?

A

tapping into social trends can be powerful in a marketing plan. Being aware of the demographics of the area in which the business is located. Being aware of social issues that affect potential customers

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20
Q

what are consideration around Economic forces in the external (macro) environment?

A

periods of strong economic growth can be favourable times to expand a customer base

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21
Q

what is market research?

A

Market research is the process of gathering information to assist business owners in making informed decisions about the marketing of the business

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22
Q

what does market research follow?

A

To obtain accurate info, marketers follow the following 3 steps

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23
Q

what are the steps of market research?

A
  1. Determining information needs
  2. Collecting data from primary and secondary sources
  3. Analysing and interpreting data
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24
Q

explain Determining information needs

A

The problem is clearly and accurately stated to determine what needs to be measured and the issues involved. This is a crucial step.

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25
Q

explain Collecting data from primary and secondary sources

A

At this stage the researchers know the facts that are needed and those that are already available. Plans must be made to gather missing data.
Information may be collected by mail, telephone and personal surveys, as well as by personal observation or from private data sources.

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26
Q

explain Analysing and interpreting data

A

Facts by themselves do not always provide a solution to the marketing problem. They need to be analysed and interpreted to determine what they mean.

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27
Q

Information is useful if it…?

A
  • Results in marketing strategies that meet the needs of the target market
  • Assists the business to achieve its marketing objectives
  • May be used to increase sales and profit
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28
Q

define Marketing data

A

are the information - usually expressed as facts and figures - relevant to the defined marketing problem

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29
Q

what data do market researchers use?

A

Market researchers use a combination of two types of data - primary and secondary data

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30
Q

define Primary data

A

are the facts and figures collected from original sources

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31
Q

define Secondary data

A

refers to information that some other person or business has already collected

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32
Q

features of Primary data?

A
  • Collected by the business itself
  • Info collected for the purpose of the specific research problem
  • Time consuming and expensive
  • Finds out exactly what the customer is thinking
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33
Q

features of Secondary data?

A
  • Info already collected by someone else
  • Info collected for some other purpose eg census data, computer databases, ABS, financial statistics, customer feedback and sales reports, annual reports
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34
Q

examples of primary data?

A
  • Surveys/questionnaires - phone, direct mail, electronic
  • Interviews - face to face
  • Direct observation - personal or electronic (researcher poses as a customer in a store, using cameras to watch and also cash registers and scanners record data)
  • Small group discussions eg focus groups
  • Experiments - lab tests, field tests
  • Email blasts - mass emails to family, friends, business associates
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35
Q

examples of secondary data?

A
  • Company records
  • Financial statements
  • Annual reports
  • Periodicals and trade/professional magazines
  • Internet searches
  • Computerised databases
  • Libraries
  • Advertising agencies
  • Newspapers
  • Trade associations
  • Government agencies eg ABS, Census
  • Private market research firms eg AC Nielsen, Roy Morgan Research Centre
  • Radio and tv stations
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36
Q

what are the Different methods to collect primary data?

A
  • SURVEY METHOD
  • Observation Method
  • Experimentation Method
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37
Q

features of the survey method?

A
  • Involves conducting a survey
    Can be carried out by:
  • Personal interviews (face-to-face interviews conducted in public places)
  • Focus groups (small groups of people who meet with the researchers
  • Electronic methods of collection (online surveys or data collected over the phone)
  • Questionnaires (a set of specific questions structured to obtain a response from the customer)
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38
Q

features of observation method?

A
  • Involves recording the behaviour of customers
  • Direct contact is avoided, instead the actions of the customers are observed
  • Can raise ethical issues regarding privacy
  • Info can be gathered through personal observation (a researcher posing as a customer in the store)
  • Info can be gathered through mechanical observation using cameras, video/voice recorder etc.
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39
Q

features of Experimentation Method?

A
  • Involve gathering data by altering factors under tightly controlled conditions to evaluate cause and effect
  • Do this to determine whether changing one of the factors (a cause) will alter the behaviour of what is being studied (the effect)
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40
Q

what methods to collect primary data will businesses typically use?

A

Most businesses will attempt to use a combination of these 3 methods

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41
Q

features of Analysis and interpretation?

A
  • Once the data has been gathered, it must be analysed
  • Can be done by displaying the information in table format or in a spreadsheet
  • Good to involve a number of people in the interpretation of data to gain wider perspective and avoid personal bias
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42
Q

what does a business have to to consider when marketing?

A

A business has to consider seven marketing elements to reach its target market

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43
Q

what are the The 7Ps of marketing?

A
  • Product
  • Price
  • Place
  • Promotion
  • People
  • Physical evidence
  • Process
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44
Q

what are the 7P’s of marketing?

A

They are referred to as the marketing mix

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45
Q

define Tangible

A

Physical- can be touched

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46
Q

define Intangible

A

Service- cannot be touched

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47
Q

what is the 7P of product?

A
  • Goods and services are both products
  • When customers purchase products, they buy both the tangible and intangible benefits. In other words, a product is a ‘collection of satisfactions’ that might include a variety of things such as the package, brand name, warranty and after-sales service.
  • Often, with mass-produced products, it is on the differences in the intangible benefits that product competition is based.
  • Eg: Cars…people choose particular cars based on intangibles such as safety features, reputation, style etc.
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48
Q

what is product development?

A

Product development can involve modifying an existing product or the way in which it is presented, or creating an entirely new product that meets the demands of a newly defined customer or market.

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49
Q

The process for new product development?

A
  1. Idea for a new product
  2. Design
  3. Create prototype/ mock-up
  4. Market testing
  5. Plan for technical needs
  6. Launch product
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50
Q

define Product positioning

A

is the development of a product image compared with the image of competing products.

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51
Q

features of Product positioning?

A
  • Some brand names, such as Rolex, Louis Vuitton and Ferrari can immediately evoke an image of the product’s quality. This image gives the product its position within the market. Product positioning refers to the way a product image is developed.
  • Whenever a new product is launched, the marketers need to have clearly determined the desired positioning of the product. This will be achieved through the product’s name, price, packaging, style, promotion and channels of distribution. Combined, these individual characteristics create the image of the product.
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52
Q

what is a brand?

A

A brand is a name, term, symbol, design or any combination of these that identifies a product.

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53
Q

what is a brand name?

A

A brand name is that part of the brand that can be spoken. It may include letters (BMW motor vehicles), numbers (308 Peugeot cars) or numbers and letters (PS3).

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54
Q

what is Product branding - symbols and logos features?

A

A brand symbol or logo does not have to duplicate the words in the brand name. The three-pointed star of the Mercedes-Benz symbol and Coke’s distinctive narrow-waisted bottle are famous brand symbols. Some businesses encourage the instant recognition of their brand symbol rather than their brand name.

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55
Q

features of Product - brand packaging ?

A

-Well-designed packaging will give a positive impression of the product and encourage first-time customers to purchase.
-Tasteful packaging can create an image of luxury, sensuality and exclusiveness, helping to promote the product. Also, packaging helps preserve, inform, protect and promote the product.
-With increasing community awareness of environmental pollution, marketers must also be sensitive to the problems caused by throw-away packaging.

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56
Q

what happens when price is too low or too high?

A
  • A price set too high could mean lost sales unless superior benefits are offered.
  • A price set too low may give customers the impression that the product is ‘cheap and nasty’.
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57
Q

what is the 7P of price?

A

In any market, businesses will attempt to gain some control over the price by differentiating their products. Once this happens, the business has more leverage over the price. Clothes with designer labels are the result of product differentiation strategies. Garments with these labels carry higher prices than clothing sold under Target or Kmart.

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58
Q

what are the Pricing strategies?

A
  • Recommended retail price
  • Percentage mark-ups
  • Price leadership and competition
  • Quotes
  • Premium pricing
  • Bundle pricing
  • Psychological pricing
  • Penetration pricing
  • What the market will bear
  • Price skimming
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59
Q

what is Recommended retail price?

A

This is the price recommended by either the wholesaler or manufacturer of the goods being sold by a retail business

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60
Q

what is Percentage mark-ups?

A

Commonly used by large retail stores. The cost price is increased by a fixed percentage to determine the selling price.
Price is usually calculated so that the cost price is covered and some profit is added.

61
Q

what is Price leadership and competition?

A

To follow the prices set by another seller. Eg in a shopping centre where there are many of the same businesses, the prices set by the most competitive store may be used as a guide by other shops. To remain competitive, business change prices through special promotions, sales or weekly specials

62
Q

what is Quotes?

A

When a job is unique and a fixed price can’t be attached eg a hair dresser (length of hair, type of cut and colour, wash and blow wave included etc, or a renovation or mechanic fixing your car)

63
Q

what is Premium pricing?

A

Setting an artificially high price to increase the prestige of the product (example Fyre Festival). Designed to suggest to potential customers that its of higher quality compared to competitors

64
Q

what is Bundle pricing?

A

When a business sells a package of goods or services for a lower total price than the individual price of each component of the bundle (eg meal deals, phone and internet deals)

65
Q

what is Psychological pricing?

A

Making the price look less than it is eg pricing a product at $19.98 instead of $20 is designed to appeal to the emotional rather than rational instincts of the consumer

66
Q

what is Penetration pricing?

A

When a new type of product is introduced into the market that is unfamiliar to a large number of consumers, a low price might be offered to attract new customers to try the product

67
Q

what is What the market will bear?

A

Most common example is an auction such as on a house, painting or racehorse. People bid what they are willing to pay after a reserve price is set.

68
Q

what is Price skimming?

A

Involves placing a high price on a new item knowing devoted customers will be willing to pay a high price for the new product. Price is then lowered after the initial sales to attract more customers. Often used when selling new technology. E.g. Smart TVs were expensive when they first came out but prices have since dropped since sales volumes have increased.

69
Q

what is place also known as?

A

‘Place’ is otherwise known as distribution channels

70
Q

what is the 7P of place?

A

It’s about making the product available to the customer, wherever they choose to purchase it eg such as in a shop, online or performing a service at a customer’s home

71
Q

what is a distribution channel?

A
  • A distribution channel is a way of getting the product to its customer
  • This process usually involves a number of intermediaries or ‘go betweens’, such as the wholesaler, broker, agent or retailer. Apart from the retailer, the other intermediaries are often invisible (the customer knows little about their role and operation).
72
Q

FOUR different types of distribution channels?

A
  • Producer to customer
  • Producer to retailer to customer
  • Producer to wholesaler to retailer to customer
  • Producer to agent to wholesaler to retailer to customer
73
Q

what is Producer to customer?

A

This is the simplest channel and involves no intermediaries. Virtually all services, from tax advice to car repairs, use this method.

74
Q

what is Producer to retailer to customer?

A

A retailer is an intermediary who buys from producers and resells to customers. This channel is often used for bulky or perishable products such as furniture or fruit.

75
Q

what is Producer to wholesaler to retailer to customer?

A

This is the most common method used for the distribution of consumer goods. A wholesaler is an intermediary who buys in bulk from the producer, then resells in smaller quantities to retailers.

76
Q

what is Producer to agent to wholesaler to retailer to customer?

A

An agent distributes products to wholesalers but never owns the product. Agents are paid a commission by the producer. Usually agents are used for inexpensive, frequently used products.

77
Q

what place is gaining popularity?

A

Non-store retailing is gaining in popularity.

78
Q

what methods are non-store retailing using to gain popularity

A
  • door-to-door selling
  • mail-order catalogues
  • vending machines
79
Q

what changes have impacted place?

A
  • Rapid changes in electronic communication has allowed businesses to exploit e-marketing (electronic marketing)
  • As more people shop online, the traditional distribution channels will be modified. Some retailers and wholesalers may be bypassed as customers deal directly with manufacturers. Electronic post and parcel delivery channels will be used more extensively to meet the increasing demand.
80
Q

what is distribution channel choice depend on?

A

The distribution channel a business chooses to use depends largely on the location of the business’s market or market coverage.

81
Q

what are the difference in market coverages?

A

the difference being the intensity of coverage

82
Q

what are the different market coverages?

A
  • Intensive distribution
  • Selective distribution
  • Exclusive distribution
83
Q

what is Intensive distribution?

A

Intensive distribution occurs when the business wishes to saturate the market with its product. Customers can shop at local outlets to purchase the product. Many convenience goods, such as milk and newspapers, are distributed in this way.

84
Q

what is Selective distribution?

A

Selective distribution involves using only a moderate proportion of all possible outlets. Clothing, furniture and electrical appliances are often distributed using this method. The customer is prepared to travel and seek out a specific retail outlet that stocks a certain brand.

85
Q

what is Exclusive distribution?

A

Exclusive distribution is the use of only one retail outlet for a product in a large geographic area. This method of distribution is commonly used for exclusive, expensive products.

86
Q

what is the 7P of promotion?

A

describes the methods used by a business to inform, persuade, and remind a target market about its products.

87
Q

A promotion campaign attempts to?

A
  • Attract new customers by raising awareness of a particular product
  • Increase brand loyalty by reinforcing the image of the product
  • Encourage existing customers to purchase more of the product
  • Provide info so customers can make informed decisions
  • Change individuals behaviour through information or persuasion
88
Q

what is promotion confused with and what is the difference?

A

Many people confuse promotion with advertising - advertising is just one of the four elements of the promotion mix which is the promotion methods a business uses in its promotional campaign.

89
Q

what are the methods of promotion?

A

Methods include personal selling, advertising, publicity and public relations.

90
Q

what is Personal selling?

A

Involves the activities of a sales representative directed to a customer in an attempt to make a sale (When a shop assistant tells you that you look gorgeous in a dress you tried on)

91
Q

what is Publicity?

A
  • Is any free news story about a business’s products or services (Big Sister Experience example)
  • Different from advertising as it is free and its timing is not controlled by the business
92
Q

what is Public relations?

A
  • Activities aimed at creating and maintaining favourable relations between a business and its publics
  • It is the role of public relations personnel to design, implement and manage the publicity events of the business
93
Q

what is Advertising?

A
  • Paid, non-personal message communicated through a mass medium
  • Reach an extremely large audience
  • Can by time on radio or tv, internet banner, leaflets, billboards, social networking sites, magazines, newspapers, appearing on tv shows such as The Project (advertising new release movies - they have interviews with the actors)
94
Q

what people in the 7P can impact a business?

A

All people involved in the business can have an impact on the marketing mix - staff, customers, owners/managers

95
Q

what do owners and managers do in the 7P of people?

A
  • Owners and managers establish a culture - usually attempt to establish a positive culture avoiding poor practices and poor service
  • Owners and managers want their business name, products, services and brand to have the highest possible reputation
96
Q

what do staff do in the 7P of people?

A

Essential staff are trained properly, motivated, provide good service and have a positive attitude about what they’re selling

97
Q

what do customers do in the 7P of people?

A
  • Customers judge the business by the staff who serve them
  • Satisfied customers become advocates for the business - talk to friends and recommend the business
98
Q

what is the 7P of physical evidence?

A

Physical evidence refers to the physical state of the business premises and the physical state of the website/online presence

99
Q

what does physical evidence involve?

A
  • A clean and well-presented location gives off a good impression and provides consumer confidence, as does an easy to navigate website with clear contact details and a secure ordering system
  • Providing access to customer feedback is beneficial
  • Having staff provide physical demonstrations of the features of a product, helping customers compare brands, providing them with information about a product etc provides physical evidence the potential customer needs to make the best choice
100
Q

what is the 7P of process?

A

The total purchasing experience is important in achieving customer satisfaction

101
Q

what does process involve?

A
  • All businesses need to set up operating systems and processes
  • Customers want access to a variety of payment methods eg eftpos, paywave, lay-by, credit card
  • Answering the phone promptly, a reliable message system, responding to messages/calls promptly, ensuring customers don’t have to wait long periods before being served, ensuring online goods are delivered in a timely manner and undamaged - all of this is the difference between gaining and losing a customer
102
Q

what is the purpose of PR?

A

The purpose of PR is to project a positive image of the business to the outside world through planned communications strategies and tactics

103
Q

PR involves?

A
  • Developing good relations with various stakeholders
  • Handling unfavourable stories or rumours which can damage the business’ image
  • Generating favourable publicity
  • Maintaining a positive public perception
  • Enhancing a particular image eg reliability, honesty, innovation
104
Q

what does PR do?

A
  • PR is capable of achieving favourable attitudes towards a business which influences consumer purchasing behaviour
  • This should then result in increased sales and the achievement of other business objectives such as improving profit and increasing market share
105
Q

process of PR?

A

Business Needs to Build and enhance a positive image (Public relations) In order to Maintain existing customer base and Attract new customers In order to Achieve business objectives.

106
Q

what does PR combine?

A

Public relations combines a number of marketing and sales techniques and presents one consistent public image

107
Q

4 major ways in which PR activities can assist a business in achieving its objectives include?

A
  • Promoting a positive image
  • Effective communication of messages
  • Issues monitoring
  • Crisis management
108
Q

what is Promoting a positive image?

A

reinforcing favourable attitudes consumers have regarding the business’s reputation

109
Q

what is Effective communication of messages?

A

using advertising, sales promotions, publicity and personal selling to convey info about the business and its products

110
Q

what is Issues monitoring?

A

protecting sales by providing an early warning of public trends that could affect sales

111
Q

what is Crisis management?

A

protecting reputation as a result of negative/unfavourable rumours and adverse publicity - if left unchecked, might result in loss of sales

112
Q

what is a successful image?

A

A successful image is when the public views the business the way it was intended eg a luxurious image

113
Q

what is The benefits associated with a successful business image?

A
  • Improved public recognition in the marketplace
  • Greater credibility
  • Improved marketability of the business’s products
  • Higher levels of sales, market share and profitability
  • Better brand recognition
114
Q

are Elements of the image separate?

A

It’s crucial that all elements work together to create a unified image - one dysfunctional element can result in a negative image

115
Q

Elements that make up a business’s image?

A
  • Business name
  • Business logo
  • Customer service
  • Behaviour and appearance of employees
  • Signage
  • Business layout
  • Range of products
  • Quality of products
  • Business appearance
  • Stationery
  • Publications
  • Advertising
  • Communications techniques
  • Use of technology
  • Delivery or appearance
  • Publicity
  • Colour scheme
  • Location
  • Customer service
116
Q

who does a business communicate with?

A

A business will communicate with and project its image to its publics (stakeholders)

117
Q

Publics can be grouped into 6 main types?

A
  • Internal publics
  • General publics
  • Local community publics
  • Citizens-action publics
  • Media publics
  • Government publics
118
Q

what is Internal publics?

A

employees and managers - expect fair pay and conditions, safe work environment, access to training, good morale helps develop a positive image

119
Q

what is General publics?

A

general public - their feelings toward a business can affect customers’ attitudes, expect fair and honest business practices, CSR decisions

120
Q

what is Local community publics?

A

local residents & organisations - expect a business to be a good corporate citizen, this public is crucial for a small business

121
Q

what is Citizens-action publics?

A

action groups e.g. environmental organisations - business practices may be scrutinised, expect business to operate in an environmentally sustainable

122
Q

what is Media publics?

A

print and electronic news reporting organisations - expect accurate information and access to informative sources

123
Q

what is Government publics?

A

3 levels of government, expect a business to abide by their laws

124
Q

what is Public relations campaign?

A

a series of public relations activities undertaken to achieve a specific objective

125
Q

steps of PR campaign?

A
  1. Establish the PR campaign’s objectives. (What do we want the PR campaign to achieve?)
  2. Identify the intended public. (Which groups will the PR campaign be directed towards?)
  3. Develop PR strategies and tactics. (How is the PR campaign going to achieve the objectives?)
  4. Implement the PR campaign. (Are we ready to commence the campaign?)
  5. Evaluate the results. (Is the PR campaign achieving what we thought it would? Does the PR campaign need changing?)
126
Q

what is establish public relations objectives?

A
  • Objectives outline what the campaign is trying to achieve
  • Objectives should be SMART
127
Q

what is Identify the intended publics?

A

The public relations campaign ‘target group’ is the publics towards whom the public relations strategies are directed.

128
Q

what is Develop specific PR strategies?

A
  • There’s a wide range of media which a business can choose to use
  • Important to select the most appropriate and effective media for the chosen publics
129
Q

what are types of media for PR?

A
  • electronic and/or print media advertising
  • media releases
  • competitions
  • news conferences
  • guest speakers
  • community involvement programs
  • letterbox drops
  • noticeboards and posters
  • brochures, pamphlets
  • notices on its website
  • information videos
  • social media such as Facebook and Twitter
  • direct mail
  • staged events and stunts.
  • email messages
130
Q

what is Implement the PR campaign?

A
  • Devise an action plan to ensure smooth implementation
  • Action plan would outline a schedule of the PR activities, areas of individual responsibility, media contact details etc.
131
Q

what is Evaluate Results?

A
  • A PR campaign’s success should be measured in terms of its original objectives, before, during and after the campaign ends.
  • A PR manager should be able to estimate whether any change occurred in the attitudes or behaviour of the publics
  • E.g. examining the quantity of sales before, during and after a campaign
132
Q

what are the types of PR?

A

Most PR is planned, such as campaigns to market the business however, some PR is unexpected and occurs in a crisis situation

133
Q

what is Unplanned Public Relations?

A

The way a business deals with a crisis is crucial to its ongoing customer relationships and overall success.

134
Q

Crises may be events such as?

A
  • Workplace accident
  • A dishonest employee
  • An unsafe product
  • Or some negative event
135
Q

what do crises cause?

A

These events will generate unfavourable publicity and must be handled smoothly

136
Q

A crisis communication plan should be followed which consists of?

A
  1. Bringing the crisis under control (limiting the damage)
  2. Dealing with intense media and public scrutiny
137
Q

Crisis communication plan steps?

A
  1. Determine the appropriate target publics
  2. Essential info should be communicated to all affected publics
  3. Get the facts
  4. Responses should be given as quickly as possible
  5. Be prepared to answer questions
  6. Provide regular updates
  7. Establish a chain of command - decisions should be clear and decision maker given authority to act
  8. Establish a crisis communication team
  9. Monitor the progress of the crisis communication plan
  10. Evaluate the effectiveness of the crisis communication plan
138
Q

what does PR ultimately contribute to?

A

Ultimately, successful PR contributes towards a positive relationship with the business’s identified customer base

139
Q

what happens if businesses fail to maintain a relationship with customers?

A

Failure to maintain this relationship will undermine customer loyalty

140
Q

how can customer relationship be tested?

A

The customer relationship can be tested when unplanned events occur that might damage the business’s reputation

141
Q

benefits of establishing positive public relations?

A
  • The development of a positive brand identity should result in the expansion and maintenance of a customer base, and growth in customer loyalty.
  • The improved marketability of the business’s products should result in higher levels of sales and improved market share as customers are more likely to trust communication coming from the business, resulting in the business building its credibility.
  • The large reach of public relations should improve public recognition of both the business as a whole and its products.
142
Q

costs of establishing positive public relations?

A
  • Establishing positive public relations can cost money - including the employment costs of specialist staff to manage the business’s public relations, the cost of any special events required to reinforce the positive brand identity sought, or the cost of hiring a specialist public relations firm to manage the image of the business.
  • A business may have little control over a public relations campaign - it can be very difficult to control how the business is perceived by the media, when the business’s message will appear and where publics will see the message.
143
Q

Criticisms of marketing - unethical?

A
  • Manipulate customers to buy products as they think they need them and plays on emotions
  • Product placement and blurring the lines of advertising and entertainment. Eg the shameful product placement in The Bachelor with cheese and chips
  • Stereotypical images of males and females eg males who are watching sport with their friends and women who are cleaning the kitchen or caring for their children
  • Use of sex to sell products
  • False or misleading advertising is unethical AND illegal, however the terms ‘special’, ‘great value’, ‘low fat’’, light’ and ‘once in a lifetime
    offer’ can be interpreted a number of ways
  • Invasion of privacy - tracking of web users and using this info to target them with advertisements
  • Sponsorship deals
  • Marketing of junk food to children
  • Gambling ads - encouraging?
144
Q

what is Socially responsible marketing?

A
  • Community sponsorships
  • Green marketing
145
Q

what is Community sponsorships?

A
  • Engaging with the local community
  • Sponsoring local sports team means they will display signage of your business while also benefiting from your donated money
  • Sponsoring activities at local schools and other community organisations
146
Q

what is Green marketing?

A
  • Using sustainable raw materials
  • Minimising waste in production
  • Changes to packaging to encourage recycling
  • Modified advertising practices such as not using junk mail pamphlets or flyers
147
Q

features of Protection of consumer privacy?

A
  • Businesses need to effective manage the data they gather from customers
  • This relates to business’ responsibility to collect, use and store customers’ personal data in such a way that customers feel their data is secure and their privacy is protected
148
Q

The Australian government’s Office of the Australian Information Commissioner (OAIC) provides the following tips for businesses in managing customer info?

A
  1. Become familiar with internal privacy policies, process, procedures
  2. Know is responsible for privacy
  3. Collect only the personal info you need
  4. Think about use and disclosure
  5. Access personal info on a need to know basis
  6. Keep personal info secure
  7. Get to know your data breach response plan
149
Q

who provides tips for managing customer info?

A

The Australian government’s Office of the Australian Information Commissioner (OAIC)

Business Management Unit 2 (3 decks)

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