unit 2 aos 2 marketing a business Flashcards
marketing
is the process of implementing strategies to price, promote, and distribute products to current and potential customers.
market research
is the process of collecting information relating
to customer needs and preferences.
target market
A target market is a specific group of consumers that a business aims its marketing efforts towards
customer data base
is a group of consumers who continuously purchase goods and services from a business.
customer profile
is a specific description of the type of person a business is selling to, including
their demographic, psychographic, and geographic characteristics
Business objectives
are the goals a business intends to achieve.
how can a business successfully achieve its objectives
By identifying and meeting the needs of its customer base, a business can increase customer satisfaction, which can lead to the achievement of business objectives.
how can a business identify their customer data base
A business can identify its customer base by creating a customer profile, which is a specific description of the type of person a business is selling to, including their demographic, psychographic, and geographic characteristics.
how can a business improve their brand identity
By delivering high-quality customer service, a business can improve customer satisfaction, enhance its reputation, and help establish a strong brand identity.
how can a business expand its customer data base
Marketing campaigns can be used by businesses to inform customers of their goods and services to new customers, as well as encourage future sales by existing customers. This can help a business establish a strong customer base and improve its brand identity.
define corporate culture
Corporate culture is the shared values and beliefs of a business and its employees
The internal environment
involves factors within a business that a business has control over.
brand identity
is the unique set of values a business seeks to portray to its customers.
operating factors
are the primary external factors impacting a business which it has some control over.
Marco factors
the major uncontrollable, external forces (economic, demographic, technological, natural, social and cultural, legal and political) which influence a firm’s decision making and have an impact upon its performance.
The relationship between marketing, establishing a customer base and business objectives
the business objective of Increasing sales can be achieved by targeting a business’s customer base as this can increase the number of customers who will make repeat purchases, subsequently increasing the number of sales.
How marketing and establishing a customer base can achieve the business objective of to make a profit
Marketing strategies focused on targeting those within the business’s customer base can establish loyal customers who purchase products regularly. This can increase sales revenue and allow the business to increase its overall profit.
The effect of customers on a business’s customer base and brand identity
effect on customer base
- Customers are likely to continue purchasing from a business that treats them well and values their time and money, increasing the loyalty of the customer base.
effect on brand identity
- Businesses that are honest and treat customers well can improve customer perceptions of the business.
Customer value
is the satisfaction a consumer feels after purchasing
a product.
how economic factors affect business marketing
By understanding and analysing economic conditions, a business can determine the marketing strategies that it will implement to attract and retain customers. During periods of strong economic growth, disposable income is high, meaning consumers are more inclined to purchase goods or services that are offered by a business. This provides an opportunity for businesses to expand their customer base
how technological factors affect business making
Technological developments can increase a business’s ability to market its products. For example, social media can provide seamless communication and rapid response times when handling customer enquiries, improving overall customer satisfaction and increasing the likelihood of purchasing from the business again.
negatives of how technology affects business marketing
However, technological advancements
can also cause a business’s products to become outdated, which may lead to fewer customers returning to purchase a good or service, as they seek products with the most up-to-date features. Therefore, businesses must be aware of changes in technology and update their products in order to enhance their marketing strategies and maintain a strong customer bas
negatives of economic factors on business marketing
On the other hand, when economic growth and disposable income levels are low, consumer confidence decreases, meaning individuals are less likely to spend their money. Consequently, a business may implement fewer marketing strategies and emphasise its lower prices to attract price-conscious customers.
why a business should consider legal factors when marketing (positives)
it is crucial for a business to consider legal factors across all its activities and be aware of regulatory bodies and legislation that affect its operation. A business that complies with its legal obligations and markets itself in an ethical, socially-responsible manner is more likely
to establish a loyal customer base and positive brand identity
why a business should consider legal factors when marketing (negative)
failure to comply with legal regulations can result in negative consequences for a business, including fines, store closure, and negative brand identity. If customers believe a business is not adhering to its legal requirements, they may choose to purchase from competitors, which negatively affects the business’s ability to maintain its customer base and profitability.
why a business should consider social factors when marketing
a business should consider these factors when developing its marketing strategies to ensure they are targeting consumer wants and needs. For example, many businesses have been prompted to emphasise their commitment to sustainability through their marketing strategies, as societal concern for the environment has increased
Market research
Market research is the process of investigating and analysing the activities and behaviours of customers and competitors in a specific industry.
market research analyst
A market research analyst is a marketing specialist who gathers and investigates customer information.
what is valuable information that can be obtained from market research
Potential market changes and new trends, as Businesses can identify what competitors are offering in the market and new opportunities which have not been implemented to attract customers through market research
methods used to collect data (survey)
Survey is a research method that involves asking questions to collect data from a group
of people.
methods used to collect data (secondary data)
Secondary data is information that has already been collected for another purpose.
Market dimensions
Market dimensions
are an indication of the total number of potential customers who could purchase a product
from a business in a particular market.
niche market
A niche market is a small, specialised market for a particular product.
mass market
mass market is a large market for goods and services produced on a substantial scale, for a significant number of consumers.
Market segmentation
Market segmentation
is the process of dividing a market into different groups of consumers that share similar characteristics.
target market
A target market
is a specific group of consumers that a business aims its marketing efforts towards.
primary target market
A primary target market is a business’s main
target market, to which
it will exhaust most of its marketing efforts.
secondary target market
A secondary target market is a smaller segment
of the market that is the second-most likely group
of customers to purchase a business’s goods or services
why is marketing to a specific target market important
focus its marketing efforts on consumers who are likely to engage and respond to the product’s promotional material.
focus its marketing efforts on consumers who are likely to purchase the business’s product.
Consumer behaviour
Consumer behaviour
is the actions of those who purchase goods and services for consumption.
Factors influencing the purchasing decisions of consumers
Social factors
* Peer groups
* Family and friends
* Social class
Consumer trends
Consumer trends are developed patterns in consumer behaviours, attitudes, and values
product
A product is a good or service that is offered to consumers to satisfy a need or want.
tangible and non tangible
A tangible product is a physical product that has the ability to be touched and stored.
An intangible product is a non-physical product that cannot be touched or stored.
Marketing considerations relating to the product element of the marketing mix
packaging
Well-designed packaging can help improve a consumer’s perception of a product, as it can enable a business to stand out from competitors and can draw a consumer’s attention to the product.
Price
Price is the amount that a customer pays for a good or service.
identify and evaluate a beneficial price strategy
Competition-based pricing refers to when a business sets a price similar to its competitors’ price.
advantage
- A business is likely to generate sales as customers are already purchasing the product at similar prices.
disadvantage
-As a business’s product is similar
to competitors, the business will need to compete on variables other than cost, such as product quality
or features.
Penetration pricing
A business sets a lower price than competitors when first entering a market in order to quickly gain market share.
place
Place is an element of the marketing mix relating to how a business distributes its product to customers
identify and describe a distribution channel
Producer to customer (direct)
Products are sold directly from the business to consumers.
describe the distribution channel Producer to retailer to customer (indirect)
A producer sells its products to a retailer who then sells the products to customers.
describe the distribution channel Producer to wholesaler
to retailer to customer (indirect)
A producer sells large quantities of a product to a wholesaler, who then sells the products to retailers, where customers can purchase them.
Promotion
Promotion is the marketing communications used by a business to inform, promote, and remind its target market about its product.
a Promotional strategy that a business can use to form its promotional mix
Advertising
Advertising involves creating a message to publicly promote a business’s products.
people
are the individuals that influence a customer’s perception of a business and its products.
Physical evidence
is the environment in which the business and customer interact.
Elements of a business’s physical evidence
facilities, interior design, ambience, evidence of a service being preformed, digital word.
process
The process is the procedure set in place throughout the entire customer purchasing experience at a business.
methods to improve customers purchasing experience
Customers should be provided with a variety of ways to purchase the product, such as cash, EFTPOS, or ‘buy now pay later’ payment methods
the product lifecycle
The product life cycle
is a series of stages that a product will pass through from the moment it is introduced to the market until it becomes obsolete or replaced.
introduction phase of the product lifecycle
The introduction stage is the first stage of the product life cycle, where the product is initially introduced to the market. At this point, sales and market share are low as customer demand for the product needs to be built.
marketing mix
A company’s marketing mix is the combination of products, pricing, places and promotions it uses to differentiate itself from the competition
growth phase of the product lifecycle
The second stage of the product life cycle is the growth stage. During this stage, customers have accepted the product, resulting in rapid sales growth.
maturity phase of the product lifecycle
The third stage of the product life cycle is the maturity stage. During the maturity stage, a business will reach its peak level of product sales before they begin to plateau due to market saturation.
decline phase of the product lifecycle
The fourth stage of the product life cycle is the decline stage. During the decline stage, a business will experience a steady decrease in sales as its product becomes obsolete or outdated.
extension phase of the product lifecycle
a business can implement strategies to lengthen the product life cycle. There are a range of extension strategies that a business can pursue to prevent its product from becoming obsolete. This allows a business to reinvigorate the product life cycle and re-establish its products amongst its competitors
Customer relations
Customer relations is the way a business creates, builds, and maintains customer relationships.
Quality customer service
Quality customer service
is a business consistently going above and beyond expected performance to ensure customers
are satisfied with their experience.
Features and the value of quality customer service
feature- Process of dealing with customer complaints, refunds, and returns
-A business should have policies in place to promptly respond to customers who are dissatisfied with the goods or services
they receive.
value - Customers feel their concerns have been addressed and
are likely to come back to
the business.
Customer loyalty
are marketing initiatives that enable customers to gain benefits for frequently purchasing from a business.
Features and value of a customer loyalty program
feature - Rewards offered
A business should provide customers with various rewards, such as discounts, free shipping, exclusive access to new products, or a free birthday gift.
value - Customers feel recognised for their frequent purchases and are encouraged to make repeat purchases.
Technological developments
Technological developments are the invention and innovation of tools that solve problems and enhance processes.
-Technological developments that are widely used by businesses include social media, email marketing, search engine optimisation, artificial intelligence, data analytics, and management of data.
Social media
Social media is the online platforms that can be used to connect with others and share content.
Advantages and disadvantages of social media
adv.
Businesses can reach a wider audience and increase their brand awareness.
Businesses can easily connect, listen, and respond to customers, improving customer satisfaction.
dis.
Social media may be difficult to use for some age groups, such as elderly people.
A business may receive negative comments on its social media posts which may damage its reputation.
Email marketing
Email marketing is the process of sending personalised electronic messages to existing customers to promote a business’s goods and services.
Advantages and disadvantages of email marketing
adv.
Emails can be personalised to suit the individual wants and needs of customers.
The business can send
emails containing surveys
or questionnaires to collect customer feedback and improve its goods and services
dis.
It can be time-consuming for the business to design and implement the campaign.
It can be expensive for the business to implement as additional employees may need to be hired to manage the emails.
Search engine optimisation
Search engine optimisation
is a process used by businesses to ensure
their website ranks higher in search results when customers search for goods or services related to the business online.
Advantages and disadvantages of search engine optimisation
adv.
Websites that rank high on search engine result pages
are often considered to be
Search engine optimisation will likely save a customer’s time in finding the business online as
it is likely to be one of the first matches with a customer’s search
dis.
Businesses that partake in search engine optimisation have to compete with the rest of the internet
Businesses that pay for a higher website rank will receive priority on search results pages compared with businesses that solely focus on search engine optimisation.
Advantages and disadvantages of artificial intelligence
adv.
Artificial intelligence reduces the likelihood of a data breach by avoiding human errors.
- Customers who receive personalised messages may feel valued by the business, improving its reputation.
dis.
Software is not always reliable and may inaccurately interpret the data that is collected.
- Customers may prefer to speak
to a human rather than receive automated responses from chatbots.
Data analytics
Data analytics is the process of examining information that has been collected by businesses in order to draw conclusions and make effective decisions.
Advantages and disadvantages of data analytics
adv.
Businesses can send personalised messages to customers to ensure their individual needs are
met, enhancing the customer experience.
A customer’s time searching for products may be saved where the item they intended to purchase is recommended to them.
dis.
It can be time consuming to analyse the data that has been collected.
Customers may become annoyed if they receive too many advertisements or product recommendations.
Management of data
is the practice of collecting, organising, using, and storing data securely
so businesses can use this information to make effective decisions.
Advantages and disadvantages of management of data
adv.
The business can accurately advertise goods and services to customers by ensuring the correct information is collected and used.
The business can respond quickly to changing customer wants and needs due to receiving reliable and up-to-date data.
dis.
It can be time consuming to constantly maintain and update data management systems.
The software and hardware used to collect and organise data can be expensive.
Public relations (PR)
Public relations (PR)
is communicating an intended message to
the public to create and sustain a positive business reputation.
The relationship between public relations and business objectives
The main goal of public relations is to improve a business’s brand image and public reputation, as poor public relations can sometimes result in negative business performance. By meeting public relations goals, a business can enable the achievement of its overall business objectives (increasing sales)
Planned public relations
is a business proactively communicating intended messages to various publics.
Types of planned public relations strategies
Social media is using online platforms, such as Instagram and Twitter, to communicate
a message to both internal
and external publics. Social media enables businesses to respond quickly to issues and promote their brand in a cost-effective manner.
aim
Businesses use social media to directly inform internal and external publics of new business changes or activities and develop a positive image.
Maintaining a positive relationship with customers
A business’s reputation is often influenced by customer perceptions. Therefore, it is crucial for businesses to maintain positive relationships with their customers and continually develop and strengthen these connections. By doing so, businesses can influence customer purchasing decisions, encouraging them to buy new products, and establish a loyal customer base that provides a reliable source of revenue and financial stability.
Implications of not maintaining a positive relationship with customers
Failing to maintain a positive relationship with customers can be detrimental to a business
and threaten its long-term survival. Not only can a business endure a loss of customers but, depending on the intensity of the crisis, its reputation may be irreparably damaged, making
it even more difficult for the business to recover or attract customers.
Advantages and disadvantages of public relations strategies
adv.
Engaging in activities that benefit
the community may improve the business’s reputation.
Can reach a large audience, particularly if the media spreads intended messages.
dis.
Business information or news may not be picked up by the media, reducing exposure to the public.
The business will likely have no control over how individuals receive the message.
Corporate social responsibility (CSR)
Corporate social responsibility (CSR) is the ethical conduct of a business beyond legal obligations, and the consideration of social, economic, and environmental impacts when making business decisions.
CSR considerations in marketing
Materialism
A business may use marketing strategies that persuade consumers into unnecessarily believing
they should purchase a product. These strategies aim to create artificial needs amongst customers, resulting in materialism.
A well-known smartphone company may persuade consumers to buy a new mobile phone to be perceived as trendy despite their old phone still working.
Green marketing
Green marketing is an advertising strategy that involves highlighting the environmental benefits of a good or service.
Advantages and disadvantages of green marketing
adv.
Engaging in green marketing will allow businesses to gain access to new markets and a larger audience as eco-friendly consumers
are likely to be interested in a
business’s offerings.
- An increase in customers may allow
a business to compete with other businesses and gain a competitive advantage.
dis.
It may be considered greenwashing if the product is incorrectly advertised as being sustainable
or eco-friendly by the business.
It may be time-consuming to develop a marketing mix to effectively portray a business’s environmental initiatives.
Customer privacy
is the administration and protection of sensitive, personal information that customers provide during their interactions and transactions with a business.
Advantages and disadvantages of protecting customer privacy
adv.
The business’s public perception will likely improve as the business is committed to protecting customer data and preventing data breaches.
- If the business has greater customer protection policies compared to competitors, this may lead to an increase in customers.
dis.
Businesses are unable to predict data breaches, meaning they could happen despite the attempts to protect customer information.
Employees may feel overwhelmed by new security processes and software that are introduced to protect customer privacy.
one reason data analysis and interpretation is important
One reason data analysis and interpretation is important is that it enables businesses to transform their collected data into relevant information to make effective decisions and be used to solve a business problem.
consumer behaviour
Consumer behaviour is the actions of those who purchase goods and services for consumption
Consumer trends
Consumer trends are developed patterns in consumer behaviours, attitudes, and values.
crisis public relations
Crisis public relations is a business reactively communicating to various publics in response to an issue that can negatively affect its reputation.
