UNIT 3 - Marketing Flashcards
Chapter 16 - What is marketing?
Marketing
The management task that links the business to the customer by identifying and meeting the needs of customers profitability. Getting the right product at the right time at the right place at the right price
Chapter 16 - What is marketing?
Asset-led marketing
an approach to marketing that bases strategy on the firm’s existing strengths and assets instead of purely what the customer wants
Chapter 16 - What is marketing?
4 types of marketing
- product orientation
- market orientation
- Asset-led marketing
- societal marketing
Chapter 16 - What is marketing?
societal marketing
Considers not only the demands of consumers but also the effects on all members of society involved in some way when the firm meets these demands
Chapter 16 - What is marketing?
Equilibrium price
The market price that equates supply and demand for a product
Chapter 16 - What is marketing?
features of markets (5)
- market size
- market growth
- market share
- competitors
- market location
Chapter 16 - What is marketing?
Market growth
- percentage change in total size of a market over a period of time
Chapter 16 - What is marketing?
Product differentiation
making a product distinctive so that it stands out from competitor’s products in consumers perception.
Chapter 16 - What is marketing?
Consumer profile
a quantified picture of consumers of a firm’s products, showing proportions of age groups, income levels, location, gender and social class
Chapter 16 - What is marketing?
3 different market segmentations
- demographic
- geographic
- psychographic
Chapter 17 - Market research
market research
the process of collecting, recording and analysing data about conusmers, competitors and the market
Chapter 17 - Market research
market research
the process of collecting, recording and analysing data about conusmers, competitors and the market
Chapter 17 - Market research
market research
the process of collecting, recording and analysing data about conusmers, competitors and the market
Chapter 17 - Market research
market research
the process of collecting, recording and analysing data about conusmers, competitors and the market
Chapter 17 - Market research
market research
the process of collecting, recording and analysing data about conusmers, competitors and the market
Chapter 17 - Market research
Sources of primary research
- focus groups
- surveys
- test marketing
- observations
Chapter 17 - Market research
Sources of secondary research
- government publications
- libraries
- internet
- internal company records
- market intelligence reports
Chapter 17 - Market research
Sample
a group of people selected to take part in market research to represent the wider population
Chapter 17 - Market research
random sampling
every member of the target population has equal chance of being selected
Chapter 17 - Market research
stratified sampling
specified sub-group + random sampling to select a number from each stratum
Chapter 17 - Market research
Quota sampling
Population has been stratified ad interviewer selects appropriate number from each stratum
Chapter 17 - Market research
Systematic sampling
every nth item in the target population is selected
Chapter 17 - Market research
Inter-quartile range
range of the middle 50% of the data
Chapter 18 - Product & price
4p’s and 4c’s
- product - customer solution
- price - cost to customer
- place - convenience to customer
- promotion - communication with customer
Chapter 18 - Product & price
Marketing mix
the 4 key decisions that must be taken in the effective marketing of a product
Chapter 18 - Product & price
CRM
Customer relationship management:
Using marketing activites to establish successful customer relationships so that existing loyalty can be maintained
Chapter 18 - Product & price
attributes of product
- intangable (opinions)
- tangible (comparison with measureable features)
Chapter 18 - Product & price
Product
the end result of production that is made to satisfy a consumer’s need
Chapter 18 - Product & price
Product positioning
the consumer perception of a product or service as comapred to its competitors
Chapter 18 - Product & price
Product portfolio analysis
Analysing the range of existing products of a business to help allocate resources effectively between them
Chapter 18 - Product & price
Product life cycle
the pattern of sales recorded by a product from lauch to withdrawl from the market and is one of the main forms of portfolio analysis
Chapter 18 - Product & price
Consumer durable
manufactured product that can be reused and is expected to have a reasonably long life, such as a car
Chapter 18 - Product & price
Price elasticity of demand
measures the responsivness of demand following a change in price
Chapter 18 - Product & price
How do managers determine the appropriate price? (6)
- whether its a new or existing product
- competitors prices
- competitive conditions in the market
- costs of production
- Objectives
- PeD
Chapter 18 - Product & price
Competition-based pricing methods
- market skimming (setting high)
- Market penetration (setting low)
Chapter 18 - Product & price
Cost-based pricing methods
- full cost pricing
- mark-up pricing
- target pricing
- contribution-cost
Chapter 18 - Product & price
Price reflects
- value added
- brand image
- profitability
Chapter 19 - Promotion and place
promotion
the use of advertising, sales promotion, personal selling, direct mail, trade fairs, sponsorship and public relations ro inform and persuade customers to buy
Chapter 19 - Promotion and place
Promotion mix
The combination of promotional techniques a firm uses to sell a product
Chapter 19 - Promotion and place
Above-the-line promotion
a form of promotion that is undertaken by a business by paying for communication with customers.
Eg. advertising
Chapter 19 - Promotion and place
Below-the-line promotion
promotion that is not directly paid-for means of communication, but based on short-term incentives to purchase
Chapter 19 - Promotion and place
Ways of below-the-line promotion (6)
- sponsorship
- merchandise
- personal selling
- direct mail
- sales promotionpublic relations
- branding
Chapter 19 - Promotion and place
Ways of below-the-line promotion (6)
- sponsorship
- merchandise
- personal selling
- direct mail
- sales promotionpublic relations
- branding
Chapter 19 - Promotion and place
Purposes of packaging (4)
- protect
- inform
- support image
- aid recognition
Chapter 19 - Promotion and place
Channel of distribution
refers to the chain of intermediaries a product passes through from producer to final consumer
Chapter 19 - Promotion and place
3 channels of distribution
- direct selling
- single-intermediary channel
- two-intermediaries channel
Chapter 19 - Promotion and place
Internet marketing
Referds to advertising and marketing activities that use the internet, email and mobile communications to encourage sales via e-commerce
Chapter 19 - Promotion and place
E-commerce
the buying and selling of goods and services via an eletronic medium
Chapter 19 - Promotion and place
Viral marketing
The use of social media sites or text messages to increase brand awareness or sell products
Chapter 19 - Promotion and place
Intergrated marketing mix
The key marketing decisions complement each other and work together to give consumers a consistent message about the product
Chapter 18 - Product & price
at what point does a product become elastic?
When it is more than 1
