weeks 3 and 4 Flashcards
what is marketing
interactive process aimed at understanding, satisfying or exceeding customer needs
concerned with product design, branding, pricing, promotion, communication and accessability to goods/services
what is business to business marketing
exchange of goods/services between two companies
overlap with purchasing and procurement
companies are concerned with utility of goods as well as costs
more formal arrangement that involves contracts
what is marketing of services
most services do not have a physical product that can be seen/touched
consumption of services occurs at the same time as acquisition
many services are customised and the nature of personal relationship is important
most services cannot be stored for future use
usually by rights for a period, not ownership
what is marketing of images
idea of conveying a message about the type of person or brand you are selling
eg political elections
what is international marketing
adaptations of product and pricing for a different cultural audience
what is market research
collection and analysis of info to help marketing planning process
enables managers to make more effective decisions and be responsive to customer needs
what is segmentation, targeting and positioning
segmentation - dividing the market into distinct groups of buyers who have certain needs and characteristics
targeting - identifying market segments the organisation wishes to pursue and how best to do it
positioning - placing the product in the market so it meets customer expectations and perceptions
what is branding
giving the product a name, logo or symbol to distinguish it from products offered by competitors
can emphasise product, brand, personality etc
what is co-branding
two or more brands being presented in association to increase exposure and customer awareness
why do you have branding
differentiation and attraction
development of brand loyalty
what are the criticisms of branding
can draw false distinctions between products
causes status of goods
what are the 4Ps of marketing
product
price
promotion
place
what is a product line
total number of variations of the same basic product, differentiated by quality, cost or extra features
what is a product mix
total number of products offered by the firm
also called product portfolio
what is the product life cycle
induction phase - sales are slow as both consumers and distributors become aware of the product
growth phase - rapid acceptance of the product and a dramatic increase in sales, sustained by improved distribution, product improvements and price reduction
mature phase - sales and profits are high, needs to be an investment in maintaining sales
decline phase - falling off in sales, survival is from product diversification
what is pricing and strategy
influenced by:
cost - base point to set prices
consumer behaviour - perception of value, willing to pay
economic factors - like exchange rate, inflation etc
competition - base prices around competitor prices
management goals - optimising profit
organisation size - may have market power
promotion - allows for growth
what are the aims of advertising
differentiate products/services from others
reminds consumer of product and encourages repeat purchases
inform customer of new products
persuade the customer to buy this product rather than a rival product
what are the subgroups of marketing
sales promotion - including offers, freebies, loyalty schemes
direct marketing - such as direct mail/email, magazine ads
personal selling - builds relationship between seller and customer, expensive
public relations - helps credibility, eg specialist newspaper deals
how does place effect advertising
processes by which the advert reaches a consumer
intermediaries - transporters, agents, wholesalers and retailers can distribute goods in a more cost effective way, important area of market research, may offer after sale service
what are the 7Ps
people - staff in an organisation, provide customer satisfaction and loyalty
process - identification of customer needs eg handling orders
physical evidence - attractive environment to deliver good to customer
4Ps
what is buyer behaviour
categorised into five types:
innovators
early adopters
early majority
late majority
laggards
different types of people have different social and economic influences
how does economic activity affect marketing
prosperity - demand is high, price is less relevant
recession - money tight, utility and value for money
changing inflation rates - affects savings and credit availability
how does politics affect marketing
attempt to regulate marketing of private firms to maintain free competition
most govs have standards that must be complied by
how does consumerism affect marketing
people have certain rights eg privacy, ability to make informed choices etc that should be abided by
guarding against dishonest producers and making consumers more aware and better informed
