Unit 7- Marketing Management Flashcards
What does marketing refer to?
Marketing refers to all activities the organisation does to promote & sell products & services
What does the marketing environment consist of?
The marketing environment consists of actors and forces that affect a company’s capability to operate efficiently in providing products & services to its customers. It includes 3 levels: Macro-environment, Micro-environment & Internal/Company Level
What does the macro-environment consist of?
Economic, Socio-cultural, Technological, Political Legal & Environmental Ecological Physical
What is environmental scanning?
Environmental scanning is the process of monitoring & analysing the marketing environment of a company & creates fit between company strategy, operations & environment
What does the micro-environment consist of?
Suppliers, Distributors, Customers, Competitors & Strategic Partners
What do companies have most influence & control over?
Companies have most influence and control over their micro-environment
What does the microenvironment also include?
The microenvironment includes the actors in the firm’s immediate environment that influence its capabilities to operate efficiently in its chosen market
What are the key actors in a market?
competitors, customers, suppliers, distributors, potential entrants & potential strategic partners
What is the final level of marketing environment?
Final level of marketing environment is the Internal level which entails employees, materials, infrastructure, company policy, company assets & cash flow
What is the key structure of internal level?
Key structure of internal level: accounts & finance, HRM, operations & marketing
What are Porter’s 5 forces?
rivalry among existing competitors, threat of new entrants, bargaining power of buyers, threat of substitute products & bargaining power of suppliers
What is SWOT analysis?
SWOT Analysis evaluates the strategic position of a business by identifying its strengths & weaknesses (internal), opportunities & threats (external).
What are conversion & marketing strategies?
converting strengths to weaknesses, converting threats to opportunities & transforming strengths to opportunities
What is consumer behaviour?
Consumer behaviour is the study of the processes involved when individuals purchase, use services etc. to satisfy needs & desires.
What are the dimensions of buyer behaviour?
why do they buy (needs, desires), how do they buy (distribution channels etc.), when do they buy (frequency, seasonal) & what is their choice criteria (consumer decision-making)
What is a buyer centre (decision-making unit)?
a group involved in the buying decision: initiator (considers a purchase), influencer (persuades others to buy ), decider (power & financial authority to make ultimate choice), buyer (conducts transaction) & user (consumer of the product)
What is reverse-socialisation?
children influence parents clothing consumption. Parents act as gatekeepers for inappropriate choices
What is the decision making process for consumers?
- problem recognition, 2.information search, 3.evaluation of alternatives, 4.purchase & 5.post-purchase evaluation of alternatives
What are the choice criteria/determinant attributes for consumers?
technical (reliability, durability, performance), economic (price, residual value, lifestyle costs), social (status, social belonging, fashion) & personal (self-image, ethics, emotions)
What are factors influencing consumer behaviour?
buying situation, social influences, personal influences & shopping environment
What are low-involvement products?
repeat purchases, passive receiver of information, decision based on habits etc.) (low risk)
What are high-involvement products?
beliefs measured against others perceived attitudes, active information seeker, decision based on well-reasoned decision (high risk)
What is cognitive dissonance?
post-purchase concerns
What is segmentation?
Segmentation is the identification of individuals or organisations with similar characteristics that have significant implications for the determination of marketing strategy by dividing a diverse market into a number of smaller, more similar sub-markets that better serve each sub-market effectively & profitably
What are the benefits of segmentation?
differentiation, target market, tailored marketing mix (meeting specific customer needs more effectively) and identify opportunities & threats
What is the process of segmentation?
the disaggregated market, the segmented market & the target market
What are the 4 methods of segmentation?
demographic (age-based, gender, education, occupation, relationship-status, household size, income, nationality, race, religion), geographic (location, urbanicity, size, density, climate, language), psychographic (personality, lifestyle, activities, interests, hobbies, habits, opinions, cultural values & norms) & behavioural (benefits sought, product use, decision process)
What are the 4 p’s of the marketing mix controlled by managers?
4 p’s of marketing mix controlled by managers: product, price, promotion & place to satisfy target market’s needs (extended marketing mix: physical, process & people 7p’s)
What is a brand?
a brand is a name, term, sign, symbol or design, intended to identify the goods or services of one seller from their competitors
What do brands give products?
Brands give a product a distinctive identity through the creation of a name & design & can generate positive or negative associations and brand name meaning is built over time through communications
What are brand types?
manufacturer brands (created by producers) & own-label brands (created & owned by distributors aka distributor brands and low-price supermarket own brands are called “fighter brands”)
What is brand equity?
Brand equity is a measure of the overall strength of a brand in the marketplace by adding tangible value to a company through resulting in sales & profits
What is customer-based brand equity?
Customer-based brand equity resides in the minds of consumers & consists of brand awareness, associations, brand image, quality & loyalty
What is proprietary-based equity?
Proprietary-based brand equity: company attributes that deliver value to the brand & consists of patents & channel relationships (with suppliers etc)
What is brand positioning?
Brand positioning is the process of creating a unique marketplace and position involves selecting the right target market & creating differential advantage
What does brand positioning include?
brand domain, brand reflection, brand personality, brand values, brand assets & brand heritage
What is the criteria of corporate social performance?
economic (making profit), legal (obey the law), societal (do what is right) & philanthropic (contribute to community)
What is a simple model of ethical decision making?
individuals factors (stages of moral development, ego strength, locus of control) & contextual factors (work-group norms, incentives, rules & regulations) - Feedback Loop
