unit 2 aos2 Flashcards
marketing
the process of implementing strategies to price, promote, and distribute products to current and potential customers.
customer base
is a group of consumers who continuously purchase goods and services from a business.
customer profile
a specific description of the type of person a business is selling to, including their demographic, and geographic characteristics
business objectives (+4 examples)
are the goals a business intends to achieve. increasing sales, increasing market share, improving levels of customer satisfaction, increasing profit
brand identity
is the unique set of values a business seeks to portray to its customers.
internal environment
involves factors within a business that a business has control over
3 internal factors that affect marketing
owners and managers, employees, corporate culture
how do owners and managers affect marketing
they need to have the skills to build a customer profile and they must ensure marketing strategies will meet business objectives
how do employees affect marketing
being friendly and polite to customers is essential when expanding the customer base and enhancing brand identity.
how does corporate culture affect marketing
a sucessful marketing strategy will become an integral part of the way business is done
corporate culture
the shared values and beliefs of a business and its employees
operating factors
are the primary external factors impacting a business which it has some control over
3 operating factors that affect marketing
customers, suppliers and competitors
how do customers affect marketing
a marketing strategy that is not customer focused will fail.
how do suppliers affect marketing
choosing suppliers that will provide goods at a high quality will boost customer satisfaction and lead to stronger brand identity
how do competitors affect marketing
part of a marketing strategy is to distinguish the business from it’s competitors
macro factors
are social, legal, technological and economic conditions that a business operates in and has no control over
4 macro factors that affect marketing
economic, technological, legal, social
how do economic factors affect marketing
Periods of strong economic growth (Higher disposable income of customers) can be favourable times to establish a business or to expand the customer base.
how do legal factors affect marketing
Complying with legal regulations and being socially responsible = more loyal customers & Positive brand image.
how do technological factors affect marketing?
Making use of available technology to promote the business, through the use of a website presence, a dedicated phone app and the use of social media is essential in a global marketplace
how do social factors affect marketing
The business owner needs to be aware of the social issues that affect potential customers and ensure that the marketing plan takes account of these.
market dimensions
are an indication of the total number of potential customers who could purchase a product from a business in a particular market
market segmentation
is the process of dividng a market into different groups of consumers that share similar characteristics
4 types of market segments
demographic, geographic, psychographic, behavioural
target market
is a specific group of consumers that a business aims its marketing efforts towards. includes a primary and secondary target market.
consumer behaviour
is the actions of those who purchase goods and services for consumption
consumer trends
are developed patterns in consumer behaviours, attitudes and values
what are the 7Ps of marketing?
Product, Price, Place, Promotion, People, Physical Evidence and Process.
product
is a good or service that is offered to consumers to satisfy a need or want. could be a tangible or intangible product
3 marketing considerations relating to product
branding, packaging and quality
price
is the amount that a customer pays for a good or service.
3 types of pricing strategies
cost-plus pricing, competition based pricing, penetration pricing.
cost plus pricing
A business determines a product’s price by taking the unit cost and adding a percentage markup to determine the sale price.
competition based pricing
A business sets a price similar to its competitors’ price.
penetration pricing
A business sets a lower price than competitors when first entering a market in order to quickly gain market share.
place
is an element of the marketing mix relating to how a business distributes its product to customers
3 types of distribution channels
product to customer, product to retailer to customer, producer to wholesaler to retailer to customer
promotion
is the marketing communications used by a business to inform, promote, and remind its target market about its product.
3 promotional strategies
advertising, sales promotions, public relations
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
3 elements of a business’s physical evidence
facilities, interior design, ambience
process
is the procedure set in place throughout the entire customer purchasing experience at a business.
3 methods to improve a customer’s purchasing experience
information, efficient service, knowledgeable staff
technological developments
are the invention and innovation of tools that solve problems and enhance processes
3 advantages of using social media to market
cheaper, businesses can reach a wider audience, there is potential for businesses to collaborate with content creators to promote their brand
3 disadvantages of using social media to market
may be difficult to use for certain age groups (elderly), large risk of security breaches, business may recieve negative comments on posts which may damage its reputation.
3 advantages of using email marketing
The business can send emails containing surveys or questionnaires to collect customer feedback, can direct customers to a business’s website increasing website traffic, businesses can send emails out quickly because they are automated
3 disadvantages of email marketing
Customers may become frustrated by receiving constant emails, time-consuming for the business to design and implement the campaign, can be expensive for the
business as they need additional employees to manage the emails
6 ways a business can market using technology
social media, email marketing, search engine optimisation, AI, data analytics, management of data
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.
3 advantages of search engine optimisation
Websites that rank high on search engine result pages are often considered to be trustworthy, more website traffic, can increase sales
3 disadvantages of search engine optimisation
businesses that pay for a higher website rank will recieve priority, it takes time for it to be effective, it can be expensive to devise strategies
3 advantages of using AI to market
Customers who receive personalised messages may feel valued, An automated marketing process allows for faster business decisions, Chatbots increase productivity
3 disadvantages of using AI to market
not always reliable, customers may prefer to speak to humans, can be expensive
data analytics
is the process of examining information that has been collected by businesses in order to draw conclusions and make effective decisions.
management of data
is the practice of collecting, organising, using, and storing data securely so businesses can use this information to make effective decisions.
public relations (PR)
is communicating an intended message to the public to create and sustain a positive business reputation.
4 types of PR goals
improved business reputation, increase customer demand, improved public recognition, improve an unfavuorable business image
planned public relations
is a business proactively communicating intended messages to various publics
5 types of planned public relations strategies
media releases, publications, events, sponsorships, social media
crisis public relations
is a business reactively communicating to various publics in response to an issue that can negatively affect its reputation
corporate social responsibility
is the ethical conduct of a business beyond legal obligations, and the consideration of social, economic, and environmental impacts when making business decisions.
green marketing
is an advertising strategy that involves highlighting the environmental benefits of a good or service.
2 advantages of green marketing
Greater customer loyalty can be generated as the business is committed to promoting the wellbeing of the environment. Engaging in green marketing will allow businesses to gain access to new markets and a larger audience
2 disadvantages of green marketing
It may be considered greenwashing if the product is incorrectly advertised as being sustainable or eco-friendly by the business. It can be costly for a business to get certifications
customer privacy
is the administration and protection of sensitive, personal information that customers provide during their interactions and transactions with a business.
