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57 Cards in this Set
- Front
- Back
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ADVERTISING |
- the transmission of paid messages about an organisation,brand or product to a mass audience (worth over $12billion/year in Australia) -Benefits – reaches many people at relatively low cost perperson -Limitation – difficult to measure effectiveness |
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COMPETITIVE ADVERTISING |
• Using advertisingto promote the features and benefits of a product relative to competingproducts |
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COMPARATIVE ADVERTISING |
• Using advertisingto directly compare a product against a competing product |
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CREATING AN ADVERTISING CAMPAIGN |
1. Understand themarket environment 2. Know the targetmarket (audience) 3. Set specificobjectives 4. Create the messagestrategy 5. Allocate resources 6. Select media 7. Produce theadvertisement 8. Place theadvertisement 9. Evaluate the campaign |
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PUBLIC RELATIONS |
- aimedat creating and maintaining relationships between the marketing organisationand its stakeholders -Effective PRmessages are timely, engaging, accurate and in the public interest - Promotional effortsdesigned to build and sustain good relations between an organisation and itsstakeholders |
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PUBLICITY |
unpaid exposure in the media |
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SPONSERSHIP |
a paid association with an event or a person |
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SALES PROMOTION |
- extra valueto resellers, salespeople and consumers in a bid to increase sales -Short-termincentives to encourage purchase of a product by either resellers or consumers -Rewards the sale ofcompany’s products - Limitations: can lose effectiveness if overused, easilycopied, public becoming increasingly cynical about whether they offer value |
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CONSUMER SALES PROMOTION |
Free samples Premium offers Loyalty programs Contests Coupons Discounts Rebates Points of purchase promotion Event sponsership |
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TRADE SALES PROMOTIONS |
Conventions and trade shows Gifts and premium money Trade allowances Cooperative advertising Dealer listings |
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PERSONAL SELLING |
-persuade consumers to buy products - use of personal communication with customers - benefits: tailored to individuals, has greatest influence - limitations: expensive, limited reach, labour intensive Models of selling: information- needs- product- leverage- commitment- following up. INPLCF |
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PUSH PULL POLICIES |
Push policy- An approach inwhich a product is promoted to the next institution in the marketing channel producer-> wholesalers-> retailers-> consumers Pull policy- an approach inwhich a product is promoted to consumers to create demand through the marketingchannel REFER TO TABLE |
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ADDITIONAL FORMS OF PROMOTION AMBUSH MARKETING |
• The presentation ofmarketing messages at an event that is sponsored by an unrelated business or acompetitor • Marketersconsidering sponsoring events need to take steps to defend themselves againstambush marketing, including assessing whether the risk is worth it |
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ADDITIONAL FORMS OF PROMOTION PRODUCT PLACEMENT |
• The paid inclusionof product in movies, television shows, songs, games and books |
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ADDITIONAL FORMS OF PROMOTION A PLUG |
• When the mediaovertly promotes a product within a program rather than as a separateadvertisement |
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ADDITIONAL FORMS OF PROMOTION GUERILLA MARKETING |
• The use of anaggressive and unconventional marketing approach |
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ADDITIONAL FORMS OF PROMOTION VIRAL MARKETING |
• The use of socialnetworks to spread a marketing message` |
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ADDITIONAL FORMS OF PROMOTION PERMISSION MARKETING |
• Marketing that aimsto build an ongoing relationship with customers |
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ADDITIONAL FORMS OF PROMOTION SPONSERSHIP |
• The paidassociation of a brand with an event or person o Potential issueswith sponsorship: ▪ Media fragmentation ▪ Consumer cynicism ▪ Socialconsciousness ▪ Environmentalawareness |
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MARKETING CHANNELS MARKETING INTERMEDIARIES |
• The individuals ororganisations that act in the distribution chain between the producer and theend user E.g: IndustrialBuyers, Wholesalers, Agents, Brokers and Retailers • The Distribution channel involvesa group of individuals and organisations directing products from producers toend user |
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MARKETING CHANNELS MARKETING INTERMEDIARIES TIME UTILITY |
Making products available at the time theconsumer wants to purchase them |
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PLACE UTILITY |
Making products available in the locations thatthe consumer wants them |
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FORM UTILITY |
Customising products to the consumer’sparticular needs |
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EXCHANGE EFFICIENCIES |
Making transactions as simple and cheap aspossible by establishing and managing efficient exchange processes. |
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MARKETS CAN CHOOSE FROM INTENSIVE DISTRIBUTION |
which distributes products via every suitableintermediary |
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MARKETS CAN CHOOSE FROM EXCLUSIVE DISTRIBUTION |
which distributes products through a singleintermediary for any given geographic region |
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MARKETS CAN CHOOSE FROM SELECTIVE DISTRIBUTION |
which distributes products throughintermediaries chosen for some specific reason. |
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SUPPLY CHAIN MANAGEMENT |
• Is the managing ofmarketing channels based on ongoing partnerships among marketing channelmembers that reduce costs, eliminate redundant processes and develop new waysto deliver value o Channel Captain and Channel power occurs when oneperson has greater control over others. |
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CHANNEL CONFLICT |
o Communicationdifficulties o Conflicts withdistributors and retailerso Intermediariesdiversifying ▪ There are methodsto improve Channels:• Unifying tomaintain market order • Agreeing to directefforts toward common objectives • Defining eachchannel member’s tasks |
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ORDER PROCESSING |
• Includes all of theactivities involved in managing the information required to receive, handle andfill a sales order o Efficient orderprocessing is important to minimise costs and ensure customer satisfaction |
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INVENTORY MANAGEMENT |
• Is the managementof stocks of products to ensure availability o Most businessmanage inventory by developing a trigger to reorder o Just in time (JIT) isholding stock which is about to be used or sold |
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WAREHOUSING |
o Effective warehouseoperations enable business to hold surplus and safety stock o Distribution Centre: Awarehouse focused on moving rather than storing products o Cross docking: Expediting themovement of goods from receipt to shipping o Materials handling:The physical handling of goods |
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TYPES OF INTERMEDIARIES RETAILING |
• Any exchange wherethe buyer is the ultimate consumer of the product o Excludestransactions in which the buyer intends to resell the product or use it to makeanother |
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TYPES OF INTERMEDIARIES DIRECT MARKETING |
• is non-storeretailing that promotes and sells products via mail, telephone or the webo Main types: telemarketing,catalogue marketing, television shopping and direct response |
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TYPES OF INTERMEDIARIES AGENTS |
• are marketingintermediaries engaged by buyers or sellers on an ongoing basis to representthem in negotiations with other parties in the marketing channel. o The main types of agentsare: ▪ Manufacturers’ agents ▪ Selling agents ▪ Buying agents▪ Commissionmerchants |
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TYPES OF INTERMEDIARIES BROKERS |
are marketing intermediaries engaged by buyersor sellers on a short-term or one-off basis to represent them in negotiationswith other parties in the marketing channel (e.g. insurance and mortgagebrokers, stockbrokers) |
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TYPES OF INTERMEDIARIES WHOLESALING |
are exchanges in which products are bought forresale, for use as inputs in other products, or for some other use in abusiness. |
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PRICE |
• Measure of value toboth buyers and sellers |
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PRICE LEADER |
is a high-volume product priced near cost toattract customers into the store, where it is expected they will buy other,normally priced products |
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LOSS LEADER |
is a high-volume product priced below cost toattract customers into the store, where it is expected they will buy other,normally priced, products. |
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MARGINAL ANALYSIS |
Is an analysis designed to determine the effecton costs and revenue when an organisation produces and sells one more unit ofproduct. |
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BREAK-EVEN ANALYSIS |
Designed to estimate the volume of sales neededto cover total costs |
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CONTRIBUTION MARGIN |
Difference between the price and variable cost per unit |
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NON-PRICE COMPETITION |
• A pricing stratergythat is not based on competition o Can build loyalty o Price based onfactors such as: ▪ Differentiation ofproduct ▪ Promotion ▪ Distribution |
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INTERNAL REFERENCE PRICE |
is the price expected by consumers, mostly basedon their past experience f the product |
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EXTERNAL REFERENCE PRICE |
is the a price comparison provided by themanufacturer or retailer |
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SERVICES |
• are activities,performances or benefits that are offered for sale but do not involve anexchange of a good or transfer of title. o Consumer services: Purchasedby an individual consumer or a household for private consumption ▪ Demand increasesduring an economic boom▪ Examples: Airline Travel,banking finance |
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SERVICE MARKETING MIX INTANGIBILITY |
o Services cannot beeasily perceived by the five sense, which increases customer feelings ofuncertainty and risk about the purchase ▪ Reduce anxietythrough: Tangible clues (Logos and uniforms) and guarantees (Testimonials |
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SERVICE MARKETING MIX INSEPARBLILITY |
o The characteristic of being produced and consumersimultaneously ▪ Greater concernwith technical skill and customer service delivery (Use of personal selling) |
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SERVICE MARKETING MIX HETEROGENEITY |
o Inevitable varitons in the quality of a serviceproduct Key Strategies: • Develop servicedelivery system • Manage customerexpectations • Invest heavily intraining |
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SERVICE MARKETING MIX PERISHABILITY |
o The inability to store services for use at alater date (Empty seats on a plane) ▪ Supply and demandcan be balanced by:• Stimulating demand(Cheap Tuesday) • Restricting demand(Moving table bookings) • Increasing ordecreasing supply capacity |
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SERVICE PEOPLE |
o Create and deliver the service and affect thevalue for the customer as they are involved in the service experience Staff is the mostcontrollable factor in service delivery, staff must be: • Competent• Able to deliver ahigh degree of service• Promote productsthrough: empathy, flexibility and integrity |
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SERVICE PROCESS |
All of the systems and procedures used to create,communicate and deliver and exchange an offering ▪ Functional expectations: expectations of the technical delivery of the service transaction▪ Customer service expectations: relate to the service experience |
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SERVICE PHYSICAL EVIDENCE |
Tangible cues that can be used as a means toevaluate service quality prior to purchase ▪ Physicalenvironment includes: Architectural design, furniture, background music andsmell |
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SERVICE CHALLANGES |
• The key issues inmarketing of services are:o Achievingsustainable differential advantage in marketing services o Managing profitablecustomer relationships o Deliveringconsistently high levels of customer service |
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SERVICE CHALLENGES MARKETING DIFFERENTIATION |
servies cannot beprotected by legal patents and are easily copied, sustain differentiationthrough loyalty cards • Developing andmaintaining profitable customer relationships is the key to long-term survival |
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SERVICE CHALLENGES PROFESSION SERVICE PROVIDERS |
each customer is different (lawyer) |
