unit 3 Flashcards
1
Q
what are the 4 functions of a business
A
marketing
operations
HR
finance
2
Q
what are objectives
A
objectives are statements of specific outcomes that are to be achieved
3
Q
Whats marketing
A
The process of identifying, anticipating (predicting) and satisfying customer needs profitably
4
Q
what are corporate objectives
A
corporate objectives are those that relate to the business as a whole
5
Q
some potential problems with setting marketing objectives
A
fast changing external environment
potential conflict between marketing objectives
easy to be too ambitious with marketing objectives
6
Q
internal influences on marketing objectives
A
operational issues
business culture
corporate objectives
finance
human resources
7
Q
external influences on marketing objectives
A
economic environment
competitor actions
market dynamics
technological change
social and political change
8
Q
whats market size
A
the total volume of sales of a product or the value of the sales of a product
9
Q
whats sales volume
A
measures the number of items sold or produced - for example 2.26 million vehicles sold in 2013
10
Q
sales value
A
measures the financial worth of the items sold
11
Q
whats market growth
A
a key indicator for existing and potential market entrants
12
Q
what does market share explain
A
the overall market is split between the existing competitors
13
Q
whats marketing research
A
marketing research involves the gathering and analysis of research to help support the implementation of marketing strategy.
14
Q
primary research
A
gathering data that has not been collected before
15
Q
secondary research
A
a research method that uses data that was collected by someone else
16
Q
what is quantitive data
A
data represented numerically, including anything that can be counted, measured, or given a numerical value.
17
Q
what is qualitative data
A
non-numeric information, such as in-depth interview transcripts, diaries, anthropological field notes, answers to open-ended survey questions, audio-visual recordings and images.
18
Q
what does sampling in market research involve
A
sampling involves the gathering of data from a sample of respondents, the results of which should be representative of the population (eg target market) as a whole
19
Q
benefits of sampling in market research
A
is flexible and relatively quick
using sampling before making marketing decisions can reduce risk and costs
even a relatively small sample size can provide useful research insights
20
Q
drawbacks of sampling in market research
A
risk of bias in research questions
biggest risk = sample is unrepresentative of population - leading to incorrect conclusions
less useful in market segments where customers tastes and preferences are changing frequently
21
Q
whats random sampling
A
a part of the sampling technique in which each sample has an equal probability of being chosen. A sample chosen randomly is meant to be an unbiased representation of the total population.
useful if the product has mass appeal
22
Q
whats quota sampling
A
- where the population is divided into what you need (eg 50/50 men and women)
- has the aim of representing the overall population
- population is divided (by income, age etc)
- the sample are then surveyed as they pass the interviewer
- may be biased as its selected population
- therefore it cannot be used to predict the behaviour of the whole population. as accurately
23
Q
whats stratified sampling
A
- where a group of respondents are selected randomly before the survey is carried out from a list but within a very specific sub groups, for example gender, age or income levels. The survey is then carried out
- this is popular as it should be less biased and accurately reflect the views of the company’s target audience.
24
Q
factors influencing the choice of sampling methods
A
- time to complete research and make decisions
- costs involved and financial situation of the firm
- stage of life cycle for the firm and its product/services
- is it a new or existing product/firm
- target audience and their characteristics
25
whats market mapping
the process of using a graph to plot competitors and their products to undertstand competitor behaviour and spot the gap in the market
26
choosing the dimensions for a market positioning map
low price v high price
basic quality v high quality
low volume v high volume
light v heavy
27
whats a focus group
when a group of people come together to answer questions (primary)
28
whats a observation
there is no direct interaction between the researcher and the person being observed (primary)
29
whats a online survey
a cost effective method of sampling a large group of people through questions online (primary)
30
whats a telephone interview
a researcher method where the researcher surveys respondents over the telephone (primary)
31
what is test marketing
launching the product is a small part of the target market in order to gauge the viability of the product to see how a consumer responds to it (primary)
32
what are experiments
helps to test hypotheses, measure causal relationships and explore new phenomena (primary)
33
what is published market research reports
a type of research that has already been compiled, gathered, organised and published by others (secondary)
34
what is internal transaction
information that has been stored or organised by the organisation itself (secondary)
35
what is google official statists
google is vistited by 89.3 billion times a month and process over 8.5 billion searches a day (secondary)
36
what are trade associations
provide representative and other collective services to businesses, generally in a specific sector with common interests (secondary)
37
what are media reports
text books, news articles, reviews and journal entries (secondary)
38
what is competitor materials
the collection and analysis of information about a rival business (secondary)
39
what are the aspects of the market that firms need to analyse
size of the market
growth in the market
market structure
segmentation of the market
social trends
40
size of market
is it big enough? is it feasible for the firm to operate in?
41
growth in market
does the market have enough future potential?
42
market structure
what level of competition is there? how intense will competition be?
43
segmentation of the market
who will the company be targeting? what are their needs, wants and tastes?
44
social trends
changing lifestyle, demographics and fashions
45
reasons for analysing the market
identify future trends
is the product viable
identify opportunities and threats
46
what is correlation
a statistical technique which looks at the strength of the relationship between two variable and how they related. for example, the relationship between advertising expenditure and sales increases.
47
difference between correlation and causation
a correlation between variables does not automatically mean that the change in one viable is the cause of the change in the values of other variable. causation indicates that one event is the result of the occurrence of the other event.
48
whats independent variable
the variable that causes the change in the other
- increasing the investment in promotion
49
whats the dependant variable
the variable that is impacted by the change in the independent variable
- the resulting rise in demand
50
whats positive correlation
a direct relationship between two variables. as the independent variable increase the dependant variable increases.
- for example as more is spend on advertising sales increase
51
whats negative correlation
an inverse relationship between two variables, as the dependent variable falls the independent variable rises and vice versa.
- eg more staff training = less complaints
52
what are confidence intervals
how confident you are in your estimates
53
whats extrapolation
a method of forecasting sales is to look at what has been happening in the past and to continue the trend into the future
54
what can extrapolation be used for
measure performance of individuals/departments
plan production levels and schedules
workforce planning (how many staff will they need to satisfy demand)
produce realistic and motivating targets for a company
55
methods of extrapolation
- asking individuals experts views
- individual management hunches based on past experience
- basing predictions on market research data carried out before a product launch
56
advantages of extrapolations
- used to predict future sales
- can be done relatively quickly at a low cost
- can be based on past years data
- useful in steady predictable markets
57
disadvantages of extrapolations
- not reliable in dynamic fast changing markets eg technology
- does not factor unexpected external changes
- assumes past trends will continue
- forecasts too far into the future will have little value
- data may be biased eg a fast food company carrying out studies on health benefits of some of its ingredients.
58
benefits of market analysis
- see opportunities in market
- see what to invest in
- the priorities you need
- the influence on consumers
59
implications of incorrect forecasting
- waste money
- lose market share
- food could be perishable
- can the workforce adjust and be flexible
60
whats test marketing
involves replicating all elements of a product launch, such as the promotion, distribution and price to a specific planned smaller geographic region or demographic group to judge the viability of the product in the market before a full scale launch.
61
advantages of test marketing
- see if customers like your product
- minis risks and fries down waste high costs on a product launch if its not going to be successful
- actual sales results can be used to inform decisions
62
negatives of test marketing
- tastes in one area may not translate to the rest of the market
- could be costly and time consuming
- could give competitors time and opportunities to respond if test marketing delays a full launch
63
how to fries gather data from modern technology
- internet data, social media
- CCTV
- store cards (eg Tesco club card)
- sales data using EPOS
- online questionnaires and internet surveys
64
advantages of using technology for marketing decision making
- data can be processed and analysed and in greater depth using ICT
- Customer database can be constructed using consumer data collected
65
disadvantages of using technology for marketing decision making
- to much info can be hard to analyse and may actually slow down down decision making
- trends can be misunderstood
- trends can be mistaken as data is gathered to quickly
- can be costly to acquire and required technology to be able to gather data
66
what is elasticity
measures the responsiveness of demand to a change in a relevant variable such as price
67
price elasticity of demand
price elasticity of demand measures the extend to which the quantity of a product demanded is affected by a change in price
68
price elasticity of demand equation
% change in quantity demanded
--------------------------------------------
% change in price
69
if an answer from PED equation is greater than one what is it
elastic goods
70
do you ignore the + or - sign in PED calculation
yes
71
if the answer from PED equation is less than one what is it
inelastic goods
72
if the answer from the PED equation is one what is it
unitary elasticity
73
factors influencing PED
brand strength
necessity
habit
availability of substitutes
time
74
whats income elasticity of demand
measures the relationship between a change in quantity demanded fro good X and a change in real income.
75
income elasticity of demand equation
% change in quality demanded
---------------------------------------------
% change in consumer income
76
the income elasticity of demand is usually strongly positive for
- fine wine and spirits
- consumer durable, 3g mobile phones and designer kitchens
- sport and leisure facilities (including gym membership)
- luxury holidays
77
income elasticity demand is lower for
- staple food products such as bread, veg and frozen foods
- mass transports (bus and rail)
- beer and takeaway pizza
78
elements in effective marketing
- identifying customer needs
- meeting customer needs
79
what is a niche market
meeting the needs of a relatively small number of potential customers
80
advantages of niche market
- the business can respond quickly to the needs of the customers
- effective marketing expenditure
- less likely to be major competition
81
disadvantages of niche market
- vulnerable to market changes
- a successful niche may attract competition
- lower level of sales and risks of cost increase
82
whats mass marketing
meeting the needs of a very large number of potential customers
83
advantages of mass marketing
- although profit margin on each unit may be small, very high sales mean high profit overall
- less likely to be a significant change in the market therefore more stable revenue
- economies of scale therefore lower costs per unit
84
disadvantages of mass marketing
- likely to attract competition which may reduce profit margins
- less responsive to changes in customer needs
85
examples of mass market
cadburys, nike trainers, amazon, soft drink such as cola
86
examples of niche market
anythinglefthanded, hearing direct
87
what is meant bye socio-econmic groups
The socio-economic group refers to a person's position in society.
88
how to classify socio-economic groups
A, B, C1, C2, D, E
eg, A being the best, Higher & intermediate managerial, administrative, professional occupations
89
advantages of niche market
- lower levels of competition result in higher market share and possible monopoly power
- possible to build intense customer loyalty. for example games workshop
90
disadvantages of niche market
- lower profits may be made as firms operate on smaller scales and cannot reduce their unit costs through economics of scale
- new rivals entering the market will have a considerable impact particulary as the barriers to entry are relartivly small
- larger rivals may enter the market if it becomes very profitable
91
why segment the market?
- match customer needs
- enhanced profit for business
- opportunities for growth
- retain more customers
- target market communications
- gain share of the market segment
92
what are the process of segmentation
- income
- geographical region (where they live, what are the income levels like in the area)
- ACORN (a classification of residential neighbourhoods)
93
what is behavioural segmentation
consumers can be divided into groups based on the way they respond to us, us or know of a product
94
examples of behavioural segmentation
- lifestyle
- level of brand loyalty
- benefits sought by consumers
- purchase occasion
- frequency of usage
95
difficulties with market segmentation
- firms can find it difficult to identify the most important segments for a product
- constant research is needed to keep up to date with consumer tastes and anticipate consumer taste changes
- products may become too specific to one market segment not catering to the tastes of others thereby reducing sales.
- companies may ignore potentially lucrative segments
96
whats market targeting
deciding the market segments the company will aim to sell their products/services to their target market
97
examples of a company changing market segment to make more sales
- lego originally was mainly a boys toy
- then started to release lego for girls to increase amount of sales
- in 2020 started making gender natural lego
98
whats concentrated marketing
a product is aimed at a very well defined and specific market segment (Niche) It allows firms to focus and avoids the needs for mass production
99
whats differentiated marketing
targeting several different market segments with different products
100
whats undifferentiated marketing
targeting the whole mass market with one product
101
whats product proliferation
when a firm sell a range of products aimed at different markets. for example Volkswagen motor company owns a range of different brans including Audi, Bentley, Lamborghini, Porsche, seat, Skoda and Volkswagen
102
whats market positioning
where a firms products/services are in a market in relation to its rivals. a firm will do this based on factors such as price, value, quality, product use, features etc
103
what is a cowboy brand
low quality, high price 'rip off'
104
what are economy brands
low price, low quality
105
what are bargain brands
high quality, low price
106
what are premium brands
high quality, high price
107
what mapping is economy, cowboy, bargain and premium brands part of
positioning maps
108
what are the elements of the marketing mix
the 7 P's
109
what are the 7 P's
- product
- price
- promotion
- place
- people
- process
- physical environment
110
whats product (7 p's)
the product or service that the customer buys
111
whats price (7 p's)
how much customers pays for the product
112
whats place (7 p's)
how the product is distributed to the customer
113
whats promotion (7 p's)
how the customer is found and persuaded to buy
114
whats people (7 p's)
the people who make contact with customers in delivering the product
115
whats process (7 p's)
the systems and processes that deliver a product to a customer
116
whats physical environment (7 p's)
the elements of the physical environment the customer experiences
117
what is marketing mix
the elements of a firms approach to marketing the enables it to satisfy and delights its customers
commonly described as the 7 p's
118
why are so 7 p's used
- maximise sales + profit
- create brand
- customer loyalty
- create USP
119
why is it called marketing mix
because each element of the the marketing mic is related to the others.
elements of the mix should work together to achieve the desired effect.
120
the importance off marketing mic
- firms need to use all elements of the 7Ps when launching a product
121
key influences on the marketing mix
- business resources
- technology
- importance of customer relationships
122
order of marketing strategy
research -> segmentation -> targeting -> positioning -> marketing mix
123
what is a product
is anything that is capable of satisfying customer needs
124
what are consumer products
- brought by final consumers for personal consumption
- differ in the way consumers by them
125
what are industrial products
- bought for further processing or for use in conducting a business
- bought by other businesses, not consumers
126
what are the three main kinds of industrial products
- materials and parts
- capital items
- supplies and services
127
what are the key features of marketing industrial products
- specialists buyers and sellers
- buyer seller relationships
- transaction value
- quality and price
- support
128
whats product life cycle
a theoretical model which describes the stages a product goes through over its life
129
key uses of the product life cycle model
- forcast future sales trends
- help with market targeting and positioning
- help analyse and manage the product portfolio
130
stages of the product life cycle
- development
- introduction
- growth
- maturity
- decline/end
131
what happens in the development stage of the product life cycle
- market research is carried out
- the idea for the product is developed and prototypes produced
- this is an expensive period for the company as no sales are made because the product is not yet available
132
what happens in the introduction stage of the product life cycle
- sales begin and start slowly as consumers are getting to know the product.
- this stage will involve a lot of expenditure on promotion and publicity.
- the firm will need to convince their distributors to stock the new product
133
what happens in the growth stage of the product life cycle
- at this stage sales are accelerating (if well advertised).
- people are beginning to buy more of it and it is becoming successful.
- more outlets for the product need to be found.
- the firm should stay to break even on costs and begin making profit
134
what happens in the maturity stage of the product life cycle
- at this stage the sales rate begins to slow down. perhaps a competitor has launched something similar that is impacting sales, or customers want something new.
- at this stage the firm should consider introducing some different cessions of the product to keep sales up.
135
what happens in the decline stage of the product life cycle
- sales begin to fall as the product is becoming less popular
- at this stage a firm will need to make a decision, should sales be boosted again by spending more on marketing or should the product be withdrawn from the market
136
when should companies start to research a new product
at the end of the growth or start of maturity as they have enough money from the current product
137
why do new products get scrapped before launch
- inadequate demand
- action of competitors
- change in the external environment
- production problem
- high costs
- does not fit in the firms product range
- life cycle expected to be too short
138
what are the strategies at the introduction stage
- aim, encourage customer adoption
- high promotional spending to create awareness and inform people
- either skimming or penetration pricing
- limited, focused distribution
- demand initially form "early adopters"
139
strategies in the growth stage
- advertising to promote brand awareness
- increase in distribution outlets, intensive distribution
- go for market penetration and (if possible) price leadership
- target the early majority of potential buyers
- continuing high promotional spending
- improve the product, new features improved styling, more options
140
startergies fot mature products
- manage capacity
- promotion focuses on differentiation
- persuasive advertising
- intensive distribution
- enter new segments
- attract new users
- repositioning
- develop new uses
141
whats product portfolio analysis
product portfolio analysis assesses the position of each product or brand in a firms portfolio to help determine the right marketing strategy for each
142
whats conglomerate
business owned by one company which operate in different sectors
143
whats the Boston matrix
a product portfolio analysis tool used to plan the development of products measured with market share and growth
144
what are the categories in the Boston matrix
question marks(problem child)
stars
cash cow
dogs
145
where are dogs in the bottom matrix diagram
low market share
low growth
146
where are stars in the bottom matrix diagram
high market share
high growth
147
where are question marks in the bottom matrix diagram
low market share
high growth
148
where are cash cows in the bottom matrix diagram
high market share
low growth
149
whats the link for dogs with the product life cycle and the Boston matrix
decline
150
whats the link for question marks with the product life cycle and the Boston matrix
intro
151
whats the link for star with the product life cycle and the Boston matrix
growth
152
whats the link for cash cow with the product life cycle and the Boston matrix
maturity
153
whats on the axes of Boston matrix
relative market share on the X
market growth on the Y
154
what are question mark products
- low share of a rapidly
- cash flow is negative
- have potential but furniture is uncertain
- could become a star or dog
155
strategy for question marks
- invest to increase market share
- substantial investment to achieve growth at expense of powerful competitors
- invest in promotion and other aspects of marketing
- build selectively
156
what are star products
- high share of rapidly growing market
- position of leadership in high growth market
- the product/business is relatively strong and the market is growing
- require high marketing spending
- net cash inflow is neutral or at best modestly positive
157
strategy for stars
- investment to sustain growth
- build sales and/or market share
- spend to keep competitors at bay
- invest to maintain or increase leadership position
- repel challenges from competitors
158
what are cash cow products
- high share of a slowly growing market
- mature stage in the product life cycle
- mature, successful product
- dominant share
- little potential for growth
- large positive cash inflow
159
strategy for cash cow
- defend market share
- aim for short term profits
- little need for investment
- little potential for further growth
- reduce investment in order to maximise short term cash flow and profits
- use profits from cash cows to invest in new products
160
what are dog products
- dogs are either:
- products that have failed
- products that are in the decline
phase of their life cycle
- low share of a slowly growing market
- not going anywhere and no real potential
161
strategy for dogs
- phase out to sell off
- not worth investing in
- any profit made has to be reinvested just to maintain market share
- uses up more management time and resources than can be justified
- divest or, at most, focus on a defendable niche
162
how valuable is the Boston matrix model
- a useful tool for analysing product portfolio decisions
- but it is only a snapshot of the current position
- has little or no predictive value
- focus on market share and market growth ignores issues such as developing a sustainable competitive advantage
163
what is price
- the money charged for a product or service
- everything that a customer has to give up in an order to acquire a product or service
- usually expressed in terms £
164
the stages of price setting
- develop pricing objective
- assess of targets markets ability to purchase
- determine demand for product
- analyse demand, cost and profit relationship
- evaluate competitors prices
- select pricing strategy and tactics
- decide on price
165
what are possible business objectives that will influence pricing (financial)
- maximise profit
- achieve a target level of profits
- achieve a target rate of return
- maximise sales revenue
- improve cash flow
166
what are possible business objectives that will influence pricing (marketing)
- maintain/improve market share
- beat/prevent competition
- increase sales
- build a brand
167
whats pricing method
the method used to calculate the actual price set
168
whats pricing strategies
adopted over the medium to long term to achieve marketing objectives. have a significant impact on marketing strategy
169
pricing tactics
adopted in the short run to suit particular situations
limited impact beyond the product itself
170
what are price takers
have no option to charge the ruling market price
171
what are price makers
able to fix their own price
172
what are price leaders
market leaders who's prices changes are followed by rivals
173
what are price followers
follow the price changing lead of the market leader
174
what are factors impacting on price charged
- competitors products and prices
- costs of productions, promotions etc
- market conditions for example demand levels, accepted prices, market share etc
- the state of the economy and its impact on consumers disposable
175
what are factors impacting on price charged
- the bargaining power of customers in the target market - Do they sell to consumers or business
- location of the business
- brand image reputation and customer loyalty
- product quality and packaging
- price elasticity of demand, is the product elastic or inelastic
176
penetration pricing
the aim of penetration pricing is usually to increase market share of a product, providing the opportunity to increase price once this objective has been achieved
177
price skimming strategy
setting prices higher than the competition while providing better quality, service and brand imag
178
early adopters
people who adopt new products early, choose new products carefully, and are viewed as "the people to check with" by later adopters
179
price leadership and price taking
sets the price that smaller firms follow
180
predator/destroyer pricing
predatory pricing is a commercial pricing strategy which involves the use of large scale undercutting to eliminate competition
181
premium pricing
pricing the highest quality or most versatile products higher that the other models in the product line
182
seasonal pricing
different prices charged depending on the level of demand (eg Christmas)
183
loss leadership pricing
setting the price of a small number of products at below cost to attract customers into the outlet in the hope that they will buy other products priced to earn profit
184
psychological pricing
pricing the considers the psychological of prices and not simply the economics the price is used to say something about the product
185
price discrimination
the business practice of selling the same good at different pieces to different customers
186
cost - plus pricing
summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price
187
mark up pricing
adding a fixed mark up for profit to the unit price of a product
188
channels of distribution
the network of businesses or intermediaries through which a good or service passes until it reaches the final buyer to the end consumer
189
whats a retailer
a business that finds, buys and gathers products or services from multiple suppliers and sells them to consumers
190
whats a wholesaler
a company that sources, buys or stores products and services from multiple suppliers and sells them to other businesses such as retailers, merchants or other wholesalers.
191
what are agents
when the business appoints a person to act on its behalf for a specified purpose
192
multi channel distribution
involves a business using more than one type of distribution channel.
193
what are intermediaries
a person who acts as a link between people in order to try and bring about an agreement.
194
why use intermediaries
- efficiency of distribution costs
- intermediaries are specialists in selling
- they have contacts, experience and scale of operation
195
methods of distribution
- websites
- catalogues and mail order
- representatives and sales teams
- vending machines
- telesales, selling over the phone
using retailers
selling to retailers through wholesalers
using agents
196
organisations that form any particular distribution channel perform many key functions
- information
- promotion
- contact
- negotiation
- physical distribution
- financing
- risk taking
197
what will influence the types of distribution method a business may use?
nature of the product
the market
the business
198
what does it mean by nature of the product
- perishable/fragile
- technical/complex
- customised?
- desired image for the product
199
factors influencing the choice of distribution method
- profit margins
- distribution costs
- control required over display and brand image
- proximity
- convenience for customers and type of product
200
what are profit margins
the more intermediaries in the distribution channel the low the profit margin for the producer.
201
what are distribution costs
retailers help firms to ensure their products are available in all destinations without having to pay their own distribution costs
202
whats control required over display and brand image
for example Tesco and Levis court battle and high end fashion brands wanting to be available in suitable retailers and their own stores
203
whats proximity
how close does the firm need to be to its customers?
204
whats convenience for customers and type of product
for example, convenience goods must be easier for consumers to access as they often rely on impulse purchases
205
example of multi channel distribution
apple consumer electronics devices
retail stores
online stores
multiple retail partners
206
benefits of multi channel distribution
- can reach out to more customers
- enables higher revenue
- customers increasingly expect products to be available via more than one channel
207
drawbacks of multi channel distribution
- potential for channel conflict
- can be complex to manage
- danger than pricing strategy becomes confused
208
what are the main aims of promotion
- to ensure that customers are aware of the existence and positioning of products
- persuade customers that the product is better than competing products
- remind customers about why they may want to buy
209
what are the uses of promotion
- increase sales
- attract new customers
- encourage customer loyalty
- encourage trial
- create awareness
- inform
- remind potential customers
- reassure new customers
210
whats Aida used for
marketing
211
whats AIDA stand for
Awareness
Interest
Desire
Action
212
key factors influencing promotional decisions and strategy
- stage in the products life cycle
- nature of the product
- competition
- marketing objectives and budget
- target market
213
advantages of advertising
- wide coverage
- control of message
- repetition means that the message can be communicated effectively
- effective for building brand awareness and loyalty
214
disadvantages of advertising
- often expensive
- impersonal
- one way communication
- lacks flexibility
- limited ability to close a sale
215
whats e-commerce
buying and selling goods and services through the internet
216
whats m-commerce
purchasing goods through mobile devices
217
advantages of digital marketing
- reduced costs through lower overheads eg rents
- less stock needs to be held
- improved cash flow and liquidity
- able to compete internationally
- cheaper to target consumers
- able to target wide range of consumers quickly
218
disadvantages of digital marketing
- potential security risks
- consumers cant try before they buy
- cost of set ups
- security of personal details and data
- difficulty reaching some market segments
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reasons to utilise social media
- improve your brand
- engage audience
- promote customer service
- impact sales ad conversion rate
- become a thought leader
- study the competition
- improve search engine result page presence
- boost website traffic
- attract top-of-funnel leads
- earn greater ROI
- retarget missed customers
- learn about your audience
- keep up on industry trends
- build partnerships
- acquire talent
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advantages of viral marketing
- viral marketing costs are a fraction of traditional advertising campaigns.
- and advertising is essentially free when consumers infectiously share their positive experiences with a companies products and services with others.
- internet allows content to be shared easily and quickly
- viral marketing can also trigger exponential and rapid growth.
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disadvantages of viral marketing
- consumers tend to share negative news more often than positive news
- negative buzz can be detrimental to business and sometimes hard to recover from
- the effect of viral marketing are hard to measure as it is difficult to determine if a lead or sale resulted from it.
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example of sales promotion
- coupons
- money off
- competitions
- demonstrations
- free samples
- loyalty points
- free gifts
- points of sale display
- BOGOF (buy one get one free)
- merchandising
- trade in offers
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benefits of sales promotion
- effective at achieving a quick boost to sales
- encourages customers to trial a product or switch brands
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disadvantages of sales promotion
- sales effect only be short term
- customers may come to expect or anticipate further promotions
- may damage brand image
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whats personal selling
- promotion on a person to person basis
- two way communications
- meeting with potential customers to close a sale
- by telephone, at meetings, in retail outlets and by knocking on doors
- highly priced, low volume and high technical products rely heavily on personal selling
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benefits of personal selling
- higher customer attentions
- message is customised
- interactivity
- persuasive impact
- potential for development of relationship
- adaptable
- opportunity to close a sale
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disadvantages of personal selling
- high cost
- labour intensive
- expensive
- can only reach a limited number of customers
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whats public relations
public relations activities are those that create goodwill toward and individual, business, cause or product
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what are the main aims of PR
- to achieve favourable publicity about the bsuiness
- to build the image and reputation of the business and its products, particularly amongst customers
- to communicate effectively with customers and other stakeholders
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typical PR activities
- promoting new products
- enhancing public awareness
- projecting a business image
- promote social responsibility
- projecting business as a good employer
- obtain favourable product reviews/recommedations
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how do PR and sponsorship link
- sponsorship takes place when a payment for an event, person, organisation is given in return some consideration of benefit
- a specialised form of PR
- common in the worlds or arts and sports
- sponsorships should benefit both sides
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whats direct marketing
promotional material directed through mail, email, social media or phone to individuals or businesses
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why use direct marketing
- allows a business to generate a specific repose from targeted groups of customers
- allows a business to focus on several marketing objectives:
- increasing sales to existing customers
- building customer loyalty
- reestablishing lapsed customer relationships
- generating new business
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advantages of direct marketing
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