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16 Cards in this Set
- Front
- Back
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ROLE OF MARKETING
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- Strategic Role
- Interdependance - Production, selling, marketing approaches - Types of markets |
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- Strategic Role
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- Profitability
- Choice - Brand awareness - Standards of living - Employment |
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- Interdependance
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- Operations: manufacture products that consumers respond positively to
- Human Resources: effective staff to develop marketing strategies - Finance: sell goods to be profitable, stick to budgets |
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- Production, selling, marketing approaches
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Production (1820-1910) - involved the theory that if the product was made it would sell.
Sales (1910-1960) - focus on advertising products that were produced. Focus on SELLING Marketing # 1: 1960-1980 - focus on needs/wants of customers Marketing # 2: 1980-now - focus on LOYALTY 3 components - CSR, Customer orientation, relationship marketing |
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- Types of markets
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- Resource: buying/selling of factors of production
- Industrial: sale of products that are components of other products - Intermediate - buy in bulk to resell in smaller quantity - Customer - purchase of goods by individual needs - Mass - standard products that don't change with individual needs - Niche - highly specialised, small no. consumers |
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INFLUENCES ON MARKETING
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- Factors influencing consumer choice
- Consumer laws - Ethical issues |
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- Factors influencing consumer choice
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- Psychological
- Sociocultural - Economic - Government |
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Psychological
Influence consumer behaviour and the way we think, feel and reason. |
- Perception: individuals sense of world
- Motives: reason why a person behaves or acts - Attitudes: a persons overall opinion or view - Personality: way people perceive themselves - Learning: ability/willingness of individual to change |
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Sociocultural
Those influences that come from society in which we live and are considered to be external sources |
- Social class: relative rank in society
- Culture: values, beliefs, behaviours, traditions - Family roles: influence what products match role - Reference groups: close identification with peers |
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Economic factors
Refers to cyclical changes in spending/income |
- BOOM: high spending, high confidence, discretionary
- RECESSION: low confidence, people are saving, difficult for discretionary businesses. |
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Government factors
Significant role to play in a wide range of areas that impact consumer choice. |
- Producer of goods/services
- Regulator of economic activity - budget/interest rates - Controls commercial activity - laws on promotion - Redistribute income - tax |
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- Consumer laws
(Legal influences) |
- Protect consumers from illegal business practices
- Competition and Consumers Act 2010 (Cth) - Australian Consumer Law, monitored by ACCC - Main objectives: protect consumers, regulate trade practices that restrict competition |
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Deceptive and misleading advertising
Involves the use of untrue statements by businesses when selling their products |
Australian Consumer Law states a business must not:
- falsely represent goods as new, state goods have features they dont, make false statement about price Examples: fine print, before/after, packaging, bait and switch, tests/surveys |
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Price Discrimination
Act of charging different prices for the same product to different people |
- Business need to provide reason
- Consumer law states a business must not change price for same goods UNLESS there is a difference in the cost of providing these goods. |
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Implied conditions
Basic entitlement a consumer has when purchasing a product which don't have to be stated, or written - created by law |
- Unspoken rights, basic conditions
TWO CONDITIONS - Merchantable quality - reasonable to price - Fit for purpose - exhibit/perform characteristics |
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Warranties
Promise made by business to repair/replace a faulty product |
- Business required to fulfil any promises
- Used as marketing strategy - quality/trust, can differentiate from competitors |
