Week 1 - Introduction Flashcards
What is marketing?
Marketing involves creating, communicating, delivering & exchanging offerings that have value for customers, partners & society
What is customer value?
Customer value is the value perception of customers, based on what customers receive (benefits, quality, and reputation) vs what they give (price, effort)
What are the 4 types of utility (benefits)
The four types of utility are form, place, time, and possession
What is form utility
Form utility is transforming raw materials/knowledge into a usable product or service e.g. pre-cooked meals
What is place utility
Place utility is making offerings available and convenient for when customers need/want them e.g. shopping malls with various stores
What is time utility
Time utility ensures that a product or service is available when needed, e.g., express delivery. Additionally accounts for seasonal purchases such as ice-cream in summer.
What is possession utility
Possession utility is the amount of usefulness/value from owning a product and the ability to use it as soon as possible, e.g. car dealerships and leases, allowing cars to be financially accessible for consumers to use a vehicle even though that can’t pay it outright.
What is value?
Value is the total offering and is hard to measure or quantify. Value = Quality/Price
It can also change interpersonally or situationally
What is marketing exchange
Marketing exchange is a successful exchange between two parties with something valuable to each, mutual benefit and fulfilled expectations
Who is marketing for
Marketing is focused at meeting the needs and wants of various stakeholders
What is the marketing evolution
The marketing evolution is
- Trade Orientation
- Production Orientation
- Sales Orientation
- Market Orientation
-Social Market Orientation
Trade Orientation
Trading one product for another e.g. Farmers trading crops for stock/tools within the community
Production Orientation
Producing a lot of the product so there is high availability, e.g. Harry Ford’s Model T production line making cars more affordable and available
Sales Orientation
Selling a product through selling techniques and persuasion e.g. Door-to-door sales, heavy advertising campaigns
Market Orientation
Focusing on customers’ needs and preferences, e.g. Shoes for basketball, soccer, and running (need). Shoe customisation (preferences)
Social Market Orientation
Aiming to meet customer satisfaction and positive social impact, e.g. Incorporating social goals into products by using recycled materials in the product or packaging
What is the Triple bottom line
Corporate social responsibility: Businesses must act in the interest of societies that sustain them
Sustainability: Business philosophy that is needed to ensure our future
What is the marketing process?
Understand
Create
Communicate
Deliver
What is a market?
A market is a group of customers with different needs and wants e.g Geographic (Australian vs USA Market)
Product (Smartphone vs Tablet Market)
Demographic (University vs Highschool Market)
What is the Marketing Mix (4 P’s)
Product
Price
Promotion
Place
What is a Product?
Anything offered in the market can be a good, service or idea
What is Price
The amount of money in a business demands in exchange for its offerings
What is Promotion
The marketing activities that make potential customers, partners and society aware of the business
What is place(distribution)
The means of making the offering available at right place and right time
What is the marketing environment
The Marketing Environment is all of the external forces that affect a marketer’s ability to create, communicate, deliver and exchange offerings of value
What is environment analysis
Environment Analysis is a process that involves breaking the marketing environment into smaller parts in order to gain a better understanding
Factors under and not under control
Under Control
- Strengths
- Weakness
Not Under Control
- Opportunities
- Threats
What is the internal environment
The parts of the organisation, the people and the processes used to create, communicate, deliver and exchange offerings that have value
The organisation can directly control its internal environment
Strengths and Weaknesses are internal factors
What is the external environment
The people and processes that are outside of the business and can’t be controlled only influenced
Opportunities and Threats are external factors
It can be divided into micro and macro environment
What is Micro Environment
The forces within the organisation’s industry
Target markets (Customers)
Partners
Competitors
Target market (Customers)
Marketers must understand the current and future needs and wants of their customers
Partners
People who work with the organisations (Logistic Firms, Financiers, Retailers, Wholesalers and Suppliers)
Competitors
Marketers must ensure their offerings provide their target market with greater value than their competitor’s offerings
What are the types of competitors
Monopoly
Monopsony
Oligopoly
Monopolistic Competition
Pure Competition
Monopoly
One main supplier dominates the market e.g. Australia Post, sole provider of essential postal and mail services in the country
Monopsony
One main buyer dominates the market, e.g. deep sea fishermen collect large fish and have only one buyer setting the price, forcing fishermen to accept or not sell at all
Oligopoly
There are few main players; entry barriers high
Telecommunications brands in Australia, Telstra, Optus, Vodafone
Monopolistic Competition
Numerous competitors; striding to differentiate, Petrol stations, 7-Eleven, Ampol, Shell, BP are differentiating each other through price, offering unique services, loyalty programs, brand perception, and convenience
Pure Competition
Numerous competitors; undifferentiated products Agricultural markets for commodities like wheat, corn, and rice are examples of pure competition. Farmers sell these products at the market price, which is determined by supply and demand, and individual producers cannot set prices
What is the Macro Environments
Political Forces
Economic Forces
Sociocultural Forces
Technological Forces
Environmental Forces
Legal Forces
Political Forces
The influence of politics
Economic Forces
The factors affecting how people spend their money (interest rate, exchange rate, economic growth rate)
Sociocultural Forces
Social and cultural factors (attitudes, beliefs, behaviour, preferences customs and lifestyle)
Technological Forces
Improvement in technology
Environmental Forces
Natural disasters, weather and climate change
Legal Forces
Laws and Regulations
Situational Analysis
An ongoing process that combines organisational objectives and situational analyses to formulate plan that moves the organisation from where it currently is to where it wants to be
Situational analysis + Organisational objectives = Marketing place
Where we are now
Where senior management thinks we should be
How we plan to get to where management want us to be
Marketing Metrics (SWOT)
Strengths - Attributes of the organisation that help it achieve its objectives
Weaknesses - Attributes of the organisation that hinder it in trying to achieve its objectives
Opportunities - External factors that are potentially helpful to achieving objectives
Threats - External factors that are potentially harmful to achieving objectives
