Unit 4. Marketing Flashcards
What is the role of marketing?
- Managemen process of predicting, identifying, and meeting the needs and wants of customers in a profitable way.
What is market orientation?
- Making products that can sell by intensive market research to identify and supply products in demand.
Benefits of market orientation?
- Grater responsability to respond to market changes
. Lower risk as products will sel.
What are the disadvantages of market orientation?
- Market research can be very expensive.
What is product orientation?
- Selling products that can be produced effectively by the business and are high quality.
What are the benefits of product orientation?
- Qaulity is assured
- Firm control its operations
- Low market reserach costs.
What are the disdavantages of product orientation?
- Not all products are successful
- Lees responsive to market change.
What is commercial marketing?
- The use of marketing strategies too meet needs and wants of customers profitability.
what is social marketing?
Implementation and planning of programs designed to foster social welfare.
What are the market characteristics?
- Market size.
- Customer base.
- Barriers to entry.
- Competition.
- Market growth rate.
What is market share?
- The percentage of all sales in a market by a business
What is the formula for market share?
Firm’s sales revenue / Industry’s sales revenue x 100
What does a business look for by improving market share?
- Acquiring a higher proportion of industrie’s sales
What does a business look for by improving market leadership?
- Enjoying benefits of having the largest market share.
For what reason do marketing strategies evolve in a business?
- Changing consumer tates.
- Shorter product life cycles.
- Internet
- Globalization
What are ethical problems related with marketing?
- Pester power.
- Cunfusion marketing.
- Unsubstantionated claims.
- Information disclosure
- Bait adn switch.
What is pester power?
Using children to harrass their parents
What is confusion marketing?
giving excessive price information to swamp customers.
What is unsubstantiated marketing?
- making unproven claims.
what are the elements of marketing planning?
- Key marketing objectives
- Key marketing strategies to achieve them.
- Marketing budget.
- Marketing mix outline
What is the role of marketing planning?
process of devsing marketing obejectives and appropiates marketing strategies to achieve these obejectives.
What are the 7 p’s (marketing mix) ?
- Product
- Price
- Promotion
- Place
- People
- Physical evidence
7.Process
What are the factors that can limit the effectiveness of marketing objectives?
- Finance
- Costs of production
- Soacial issues
- Time logs
- Actions and reactions of competitors
- Political and legal enviroment.
What is market segment?
A distinct group opf customers with similar characteristics and similar needs and wants
What is target market?
Refers to each distinctive market segment having its own marketing mix.
- Helps identify needs and wants of different customers.
What is niche marketing?
- Targeting specific abd well-defined market segment.
What are the advanatges of niche marketing?
- Better marketing focus
- Less competition
- Higher profit margins
- Easier to gain customer loyalty.
What are the disadvantages of niche marketing?
- Limits custome rbase
- Few opportunities for EOS
- Profitable niche markets attract comeptition.
- Must do constant research.
What is Mass Marketing?
Undifferentiated marketing where individual markets segments are ignored.
What are the advantages of mass marketing?
- Economies of scale
- no need to modify merket strategies for different customer segments.
- Larger customer base, higher profits.
What are the disadvantages of mass marketing?
- Fierce competition
- High barriers to entry.
What is a product postion map?
Tool that reveals the customer’s peroception of a product in relation to others in the market.
What are premium products?
High quality and high price
Whata are Economy products
Low quality and low price
What are bargain products?
High quality with low prices (no sustainable)
What are cowboy products?
Poor quality and high price
What are the two marketing positioning methods?
- Cost leadership: excel as low-cost suppliers.
- Differentiation: distinct products produced for competitive edge.
What is unique selling point?
Any aspect of a business’s product that makes it stand out from its competitors.
What is differentiation?
- Act of distinguising a business and its products from rivals in the industry.
- Making a prodcut stand out.
What is market research?
Refers to marketing activities that are designed to discover the opinions and preferences of potential and existing customers.
Why business use market resarch?
- Reduces risks with new product launches.
- Predicts future demand changes.
- Gives business up to date information on new products and trends.
- Assits in improving the marketing strategy by developing the marketing mix
How to market resarch?
- Indentify consumer needs and tastes.
- For product ideas
- Pre testing
- Launch product and monitor sales
What are the methods of primary market research?
- Sureys.
- Interviews.
- Focus groups.
- Observations
What are the advantages of primary market research?
- Relevance, directly answer questions
- Up to date
- Confidential
- Unique
What are the disadvantages of Market research?
- Time consuming
- Costly
- Bias
- Not useful for long time.
What are the secondary market research methods?
- Market analyisis
- Academic journals
- Government publications
- Media articles.
what are the advantages of secondary market research methods?
- Cheaper and faster to collect
- Huge range of information
- Often based on large sample sizes
What are the disadvanatges of secondary market research?
- Oudated
- Partial information
- Widely available for competitors.
What is Qualitative research?
Refers to non-numerical answers and opinions from respondents and usually is part of primary research
What is Qualitative research?
Refers to factual and measurable information.
What are the 5 D’s of unethical marketing?
Damage: harmful questions
Deceitful: plagiarism
Deceptive: Misleading methods
Disclosure: invasion of privacy
Detachment: misleading questions
What is sampling?
Practice of selecting a small group of population for primary resarch purposes.
What is Quota sampling?
- Certain number of people selected from different market segments.
What is random sampling?
Giving evryone equal selection opportunity by randomly selecting them.
What is stratified sampling?
Involves segmentation with respondents based on proportion of the population.
What is Cluster sampling?
Select several geographical areas and randomly intervoew people in these cluster.
What is snowballing?
Research carried out with indiciduals who then suggest other firends and family therefore increasing sampe size.
What si convenience sampling?
respondents are selected according to their proximity and accessibility.
What is a product?
good or service that satisfy the needs and wants of customers.
What are the types of products?
- Fast moving consuming goods
- consumer perishable
- Consumer durables.
What is the product life cycle?
Refers to the different stages if a products life span in term of sales and growth.
What are the stages of the product life cycle?
- R&D
- Launch
- Maturity
- Decline
What are the extension strategies for the product life cycle?
- Price reduction
- Redesign
- Repackaging
- Brand extemsion
- Product differentiation.
What is the Boston Matrix
Marketing tool that helps managers plan for a balanced product portfolio.
What are question mark products?
- High market gorwth, low market share.
- Cash absortion products
- Cna become a star or a dog
What is a star product?
- High market growth, high market share
- Generates profit but needs marketing
- Can turn into cash cow or question mark
What is a cash cow product?
- Low market growt, high market share.
- Mature products
- Good cash flow and profits
- Little investment or extension strategies.
- Main source of finance.
- Can become a dog
What is a dog product?
- Low market growth, low market share
- Little revenues.
What si branding?
- Form of differentiating a product form his competitors.
What is a brand?
Name, symbol, or sign that represent a business.
What is the importance of branding?
- Legal instrument.
- gives the product better chance of survival.
- recognition
- Loyalty
- Distributiin adavantages.
What is the importance of packaging?
- Product differentiation
- Protects the product
- Helps promote brand and image
- Labelling provides information
What is the definition of price?
- Amount payed by customers for a good service
What are the pricning methods?
- Cost-plus pricing
- Penetration pricing
- Price skimimming
- Psycological pricing
- Loss- leader pricing
- Price discirimnation
- Price leadership
- Preadtory pricing
What is cost-plus pricing?
- Ading a percentage of predetermined mark-up to the average cost and using it as a selling price.
What is penetration pricing?
Setting low price initially to entire customers. Once the brand recognintion and market share increases, price is increased.
What is price skimming?
Initial launch price is high to recoup R&D costs.
Since no subtitues, can set high price and make profit, after competitors start coming it can lower the price.
What is psycological pricing?
Involves reducing number down to make seem the price lower.
What is loss leader pricing?
Selling below average costs. It attracts customers to buy other products of the business.
What is price discrimantion pricing?
When product is sold st different prices to different customers.
What is price leadership?
Firm sets the price for a dominat product snd competitors follow the same price.
What is Perdatory pricing?
Temporarily reducing price to force rivals out of the industry.
What is promotion?
Methods of communicating in the market to sell a firm’s products.
What is AIDA?
Atenttion
Interest
Desire
Action
What are the types of promotion?
- Above the line
- Below the line
- Promotional mix
What is above the line (ATL)?
- Any form of paid promorion through independent mass-media resources
What is below the line (BTL)?
Any form of non-mass media promotional activities website, where the business has direct control.
No extended media agencies.
What is promotiona mix?
- Consists of Both ATL & BTL
What is the impact of viral marketing?
Electronic spreading and transfer of promotional messages.
What is the impact of social media marketing?
refers to the practice of gaining internet traffic thorugh social media sites.
- encourage people to share the adverts.
What is social networking marketing?
- Any platform used for communicating and sharing instagram and Facebook.
What is Guerilla marketing?
The use of unconventionl and creative methods of promotion that communicate a product’s benefits.
- For low bufget businesses.
What is place?
How a product reaches the customer from the manufacturer.
- Is about getting the right product to the right place.
What are teh channels of distribution?
- The means used to get a product to the consumer.
What is e-commerce?
- The trading of goods and services via the internet and computer networks.
What are the features of e-commerce?
- Operates 24 hours a day.
- Growth in mobile devices gives opportunity for online trading
- global reach
- Easy access to information.
- Customer reviews.
- Reduced barrierrs to entry for business
What are the types of e-commerce?
- Business to business
- Business to consumer
- Consumer to consumer
What is business to business?
- E-commerce catered for needs of other businesses.
What is business to consumer?
- E-commerce directly centered to end-user.
What is consumer to consumer?
- E-commerce that enables customers to trade with eachother.
What are the benfits of e-commerce to businesses?
- Inexpensive
- Source of revenue
- Annother channel of distribution.
- Reduced packaging costs.
- Lower overhead costs.
What are the disadvanatges of e-commerce to businesses?
- Consumer’s can interact with product
- Product return can ruin reputation.
- Shipping charges and tax can turn consumers away
What are the advanages of e-commer for consumers?
- Convenient
- Prices are lower
- Opportunity to re-sell
What are the disadvanatges of e-commerce for consumers?
