Unit 3 Marketing Flashcards
Marketing management function
Identifies and satisfies customer needs and wants in a profitable way
Roles of marketing department
1) Identify and satisfy customer needs
2) maintain loyalty
3) gain information about customer
4) anticipate changes in customer needs
*To memorise : “identity and satisfy customer needs and wants, making them loyal. When they become loyal, you can collect data about them and anticipate future behaviour. “
List the marketing management function objectives
1) Raise awareness about a product or service to increase sales revenue
2) maintain or increase market share
3) Improve brand image
4) target new market segment
5) expand into new markets
6) Improve existing products or develop new ones
Why do consumers’ spending patterns change
1) Prices
2) income
3) Taste
4) Population
5) technology
Maintain loaylty or attract new customers?
Maintain customers because it is more cost-effective
Cost effective : return worth expenditure
How to maintain loyalty
1) Customer loyalty cards
2) promotions
3) Ask for feedback
4) frequent communication with customers
5) Good customer service
6) Personalised marketing
Why did some markets become more competitive
1) Globalisation: more available products
2) Technology and Internet: more production technology and e commerce
3) Greater living standards
How can businesses respond to competition
1) Maintain loyalty
2) Understand and anticipate customer needs
3) developing new products or differentiating existing 1s
4) enter new markets
Mass and niche market products
1) Mass : making the same product for the whole market without trying to target a specific segment
2) Niche : identifying and satisfying a small segment of the market by developing products to suit it
Benefits of mass and niche markets
1) mass:
A- High sales
B- economy of scale
C- less risky
D- longer product life cycle
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2) Niche market:
A- Less competition
B- small business more likely to survive
C- more customer satisfaction as product designed for their needs
D- High added value
E- less spending on marketing
What’s market segmentation
Dividing the market into subgroups with similar characteristics
Benefits of market segmentation
1) Identify market gaps
2) It is easier to apply 4 P’s
3) More focused market research
4) It is easier to match customer requirements
5) reach the target audience more easily
6) Sometimes, there is little competition in a gap
Market gap definition
An area or a need where businesses currently don’t serve, but there is a demand
Market research definition
Process of collecting, recording, and analysing data about customers, competitors, and market conditions
Main purposes of market research
1) reduce the risk of product launch failure: like research potential demand
B- test product and packaging to predict market reaction
C- pre-test product image and ads
D- research needs and competition
2) Identify main market features
3) Identify consumer characteristics
4) predict future demand changes
5) Assess the most popular design choices
Define primary and secondary research
1) primary: collection of first-hand information that is directly related to the needs of the company
2) secondary: use of existing data that was originally collected for another purpose and maybe by external parties
State the sources of SECONDARY information
1) government
2) Market research agencies
3) Internet
4) University research data
5) Trade organisations
6) Internal company records
State the usefulness of secondary research
1) Provide general insight about the population
2) Identify key areas of market research
3) Baseline comparison to primary research
4) Quick and cheap access
5) Can check other sources for accuracy.
Primary research mehods
1) Questionnaire
2) interviews
3) surveys
4) test marketing
5) focus group
Benefits and limitations of primary research
1) benefits:
A- find out about completely new markets
B- collect data for specific business
C- Gather qualitative data
D- focus research on specific changes made by business
E- gain info about specific segment
F- up to date data
2) limitations:
A- selection of large groups is needed for accurate data
B- business start up may not have finance
C- time-consuming
D- research bias
What is marketing mix
Combination of 4P’s to achieve marketing objectives
4 P’s
Price, place, product, promotion
What makes a product successful
1) satisfy existing demand
2) very distinctive, different
3) Design consistent with brand image
4) capable of stimulating new wants
5) It’s not too expensive
6) new product of first to introduce new changes
Product development
When business frequently tries to improve its products to keep customers satisfied
Benefits of new products
1) spread risk
2) expand into new markets
3) expand into existing markets
4) USP
Benefits of good USP
1) promotions that focus on the USP
2) greater added value
3) free publicity
4) greater sales compared to UUSP
5) Competitive advantage
Cost development of new products
1) Market research
2) R&D
3) Cost of promoting
4) reputation if it fails
DIS of having wide product portfolio
1) Bad publicity if 1 product fails
2) The cost of developing and selling products is high
3) The product might fail if insufficient market research is done
4) focus might be lost
Which products might a business remove
1) Those which have low sales
2) those with bad reputation
3) in decline stage
4) most competitors
Brand
Identifying image, symbol, or name that distinguishes product from competitors
Benefits of effective branding
1) clearly differentiates products
2) increases brand recall
3) allows for the establishment of a product ecosystem
4) increases loyalty
5) decreases price elasticity
What is packaging, and what is its role
1)Packaging is the physical container of a product to protect it and promote the brand
2) Role:
A- protect product
B- promote
C- Give an impression of high-quality
D- Make product attractive
E- increase value added
F- Establich a brand Identity
What are extension strategies, and list them
They are strategies to extend the maturity stage of the product
1) sell in new markets
2) re package
3) Re launch with new features
4) re brand
Why is price a key part of marketing mix
1) determines added value
2) determines profit and revenue by changing demand
3) reflect marketing objectives and psychological image
State the different pricing strategies, and explain them
1) skimming: setting a high price for a new product
2) penetrative: low price to achieve high sales volumes
3) Cost plus: calculating total unit cost and adding a fixed markup
4) competitive: price that is close to competitors
5) Promotional: significancant reduction in price
Factors effecting price
1) Cost of production
2) new or existing product
3) prices of competitors
4) added value
5) Price elasticity
6) business and marketing objectives
Price elasticity
Responsiveness of demand to the change of the price of a product
Promotion
Activities used to communicate with customers to persuade and inform them about a product
Aims of promotion
1) sell sold inventory
2) increases sales in dead seasons
3) Create brand image
4) increase loaylty
5) Fix reputation
6) Raise awareness about a product
types of promotion (advertising)
1) print
2) broadcast
3) Billboard
4) sponsorship
5) telemarketing
6) Personal selling
Types of sales promotions
1) Price offers
2) BOGOF
3) Loyalty programs
4) point of sale displays
5) Money off coupons
6) free samples
7) gifts
advantges of sales promotion
1) increase loaylty
2) increases sales in dead seasons
3) encourages new customers to try a product
4) encourages old customers to try a new product
5) encourages customers to buy from them instead of another brand
What is distribution
Decision about how a product should pass from manufacturers to consumers
Types of distribution channels
1) Direct selling
3) Retailer
3) wholesaler
4) E commerce
Explain direct selling and list the advantages and disadvantages
1) No intermediary channel
2) i) advan:
A- No markup
B- complete control over 4P’s
C- quicker than other channels
D- direct customer contact
ii) dis:
A- storage costs on the business
B- no outlets for customers to try products beforehand
C- may not be convenient for customers
D- expensive to deliver each item
Explain e-commerce and state it’s advantages
1) marketing activities on the Internet
2) advantages;
a- inexpensive to set up
b- lower fixed costs
c- worldwide customer base
d- businesses can keep better records
e- convenient for many user
d- customers can interact with websites
c- dynamic pricing is easier
Explain retailers and list the advantages and disadvantages
1) Single intermediate
2) i) adv:
A- retailers incur costs of storage
B- Display prodcuts and after sale services
C- locations convenient for customers
D- producer will not lose focus
ii) Disadvantages:
A- intermediary take profit mark up
B- lose control over 4P’s
C- outlet may display competitors’ products as well
D- delivery cost on retailer which increases price of product
Explain wholesaler and list the advantages and disadvantages
1) 2nd intermediate
2) i) adv:
A- hold the goods and buy in bulk
B- Reduce producers’ inventory costs
C- wholesalers pay for the cost of transportation to retailers
ii) dis:
A- another intermediary takes profit mark up
B- Producers lose further control of 4P’s
C- slows down production chain
What are the factors to consider when choosing distribution channels
1) Cost
2) type of product
3) Brand image
4) The market
5) size of business
What is a Marketing strategy
Plan of action a business will take to achieve its objectives
What are the legal controls over marketing
1) No false info about product or packaging
2) sell a product that is fit to sell
3) Consumer protection
4) respond fairly to customer complaints
Opportunities and threats of entering new markets
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