Unit 3- Marketing Flashcards
What is marketing?
The anticipation and satisfaction of consumers’ wants in a way that delights consumes and also meets the needs of the organisation
What are the influencing factors of market growth?
Economic growth Nature of the product Changes in taste Social changes Fashion
What is brand loyalty and branding?
Brand loyalty- A measure of the degree of attachment that a consumer has for a particular brand of product
Branding- A name, sign, symbol, design or slogan linked to a [articular product or service in order to differentiate it from its competitors
What is the net promoter score?
A measure of brand loyalty
Promotors= 9/10
Passives= 7/8
Detractors= 0-6
What are the benefits for setting clear marketing objectives?
Consistent decision making Enables a measure of success Helps to instil a team ethos Enables a review of strategy Helps motivate staff
What are the problems with setting clear marketing objectives?
External changes can undermine objectives Internal change Conflict of objectives Insufficient resources Too ambitious?
Why conduct market research?
Customers differ in different ways: Benefits they want Amount they are willing or able to pay Media they see Quantities they pay Time and place they pay
What is market mapping?
A technique that analyses markets by looking at the features that distinguish different products and firms
Helps identify the gap in the market
What are the 3 main sampling methods?
Random sampling- each member of the population with equal chance of being chosen
Quota sampling- group of selected respondents who share a common feature in proportion with their % in the population as a whole
Stratified sampling- selected according to a common feature but from a random unit of the population
What is a confidence interval?
The plus or minus figure used to show the accuracy of statistical results arising from sampling
What are the influencing factors of a confidence interval?
Sample size
Population size
% of population choosing a particular answer
What is the price elasticity of demand?
The degree to which the quantity demanded of a good or service is affected by a change in price
What are the factors affecting PeD?
Necessity Habit Availability of substitutes Brand loyalty Proportion of income spent on product Income of consumers Time taken to change
What are the limitations of YeD?
Can be inaccurate or misleading- assumes other things remain equal
Changes in the market affecting demand- consumer taste, new competitors, technological change
Rival reaction
Different consumer reactions
What are the types of market segmentation?
Demographic- age, gender, social class
Geographic- where you live
Income- how much earnt
Behavioural- lifestyle and useage/frequency of purchase
What are the advantages of niche marketing?
Less competition Costs Small-scale production Tailor made products Targeting customers
What are the disadvantages of niche marketing?
Lower profits
Changes in demand
Market entry- larger firms may join the market and squeeze out smaller players
What are the advantages of mass marketing?
Large scale production High revenues High barriers to entry Research and development Brand awareness
What are the disadvantages of mass marketing?
Fixed capital- high costs in factories and machinery
Chnages in demand
Effects of standardisation- difficult to appeal to individual needs
Competition- vulnerability to foreign competition
Adding value
What is the aim of market positioning?
To achieve a unique and beneficial perception of your product/ brand in the customers mind
What are the 2 different types of marketing?
Industrial- business to business
Consumer- business to consumer
What are the 3 different types of products?
Consumer products- purchased by habit
Shopping products- planned purchase
Speciality products- unique and more selective
In the Boston matrix, what is a star?
High market share and high market growth
Enjoy high sales revenue
Attracts competitors into the market
Investment in promotion needed to maintain profit
In the Boston matrix. what is a cash cow?
High market share and low market growth
Exist in established markets
Low growth discourages new businesses from entering
In the Boston matrix, what is a problem child/ question mark?
Low market share and high market growth
Compete in competitive, fast growing markets
Requires lots of market research and promotion
In the Boston matrix, what is a dog?
Low market share and low market growth
Likely to be withdrawn
Can still attract high revenue
What are the stages of the product life cycle?
Product development- core products or product proliferation?
Introduction- sales pick up slowly
Growth- Brand recognition
Maturity- introduce extension strategies
Decline- sales of product fall
What are the 6 different pricing strategies?
Price skimming- high price
Penetration pricing- low price to break into a market
Price leadership- large firms set a market price that smaller firms follow
Predator pricing- very low price in order to drive other firms out of the market
Loss leaders- low price for its product in order to encourage consumers to buy other products that provide profit for the firm
Psychological pricing- selling a good for £9.99 instead of £10 or provide a limited number of accessories as part of a price package but it is not enough
What are the main influences of the pricing decision-
cost of production Price elasticity of demand Exchange rates Regulation Cost of raw materials
What are the aims of promotion?
Attention- increase awareness
Interest- make customers want to find out more
Desire- provide specific reasons for purchasing
Action- encourage the consumer to act and buy
What are the 7 different promotional types?
Public relations- publicity
Merchandising - the way a product is displayed
Sales promotions
Direct selling- communicating directly to the consumer
Advertising
Sponsorship
Trade fairs and exhibitions
What are the influences on the choice of promotional mix?
Campaign objectives Costs and budgets The target market The balance of promotions in a campaign Legal factors External factors
What are the 4 main types of place?
The importance of location- convenience, accessibility, cost of access, reputation and localisation
Placement at point of sale
Number of outlets- more locations meaning a higher chance of sale
Distribution channels
What are the elements that the impression of a physical environment is based on?
Reception area Brochures Websites Signage Equipment Staff uniform
What are the elements that the impression of a physical environment is based on?
Reception area Brochures Websites Signage Equipment Staff uniform
What are the influences on the marketing mix?
Finance Technology Market research The power of buyers and suppliers Quality of production Elasticity Reputation Convenience of location
What is the key part of the promotional mix?
All have to be equally balanced and they have to support each other
Product may be considered to be key however
