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32 Cards in this Set
- Front
- Back
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Marketing |
A total system of interacting activities to plan the product, price the product, promote the product and distribute the product to current and future customers. |
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Target Market |
A group of customers with similar characteristics who currently purchase the product or may do so in the future. |
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Demographic Variables |
Age, gender, occupation, income, education level, religion, household size, ethnicity |
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Geographic Variables |
Where the customer lives/works. Region, city, suburban or rural, climate/temperature |
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Behavioural Variables |
-Purchasing frequency( regular user, occasional user, first time user) -Benefits sought( Quality, convenience, speed) -Loyalty status |
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Psychographic Variables |
-Socioeconomic status( upper class, middle class, lower class) -Personality( extroverted, introverted) -Lifestyle(Conservative, optimist, socially aware) -Motives(What drives them to buy a product) |
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The Four P's of Marketing |
To reach it's target market a business controls FOUR marketing elements- the product, price, place and promotion( also known as the marketing mix) |
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Element 1: Product |
7 types of products -Good -event -person -service -place -experience -Idea |
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Brand |
A particular type of product by a company under a particular name. A brand is anything that identifies a specific product and distinguishes it from its competition. |
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Product mix |
The full set of products being sold by the company eg. Coca cola has a product mix of 500 products |
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Product life cycle |
Introduction, growth, maturity and decline |
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Introduction |
The product is launched into the marketplace. The aim is to create consumer awareness of the product. Sales are usually low and profit is often small or non-existent |
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Growth |
Market share is actively sought for the product. Increased promotion which will hopefully see a fast increase in sales, competitors will enter the market, the availability of the product for sale may be increased. |
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Maturity |
Sales for the product will peak. Most consumers already own the product and market is not growing. Promotion is aimed selling the product as being reliable and still the best, with the aim to differentiate the product from competitors |
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Decline |
Decline in sales may see retail price reduce. Promotional activities will slowly end. |
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Cost Plus Margin |
Total cost of production determined and then the business adds an amount for profit. The extra amount is referred to as the mark-up |
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Market( Pricing method) |
Price is set based on demand and supply. If supply is high then prices will be low, if the supply is high, prices will be high. If demand is high prices will be high. If demand is low the price is low. |
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Competition Based |
Used when a number of businesses are selling similar products. A business can choose a price below equal or above the competitors. |
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Recommended Retail |
Prices that are recommended by the manufacturer but are not compulsory, rather strongly suggesting. |
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Penetration Pricing |
When the product is first introduced prices are set low and then slowly increase over time once a loyal customer base has been established. |
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Market Coverage |
Refers to the number of outlets a business chooses for its product to be sold from. |
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Intensive market coverage |
The business wishes to saturate the market with its product. Readily available very easy to access. |
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Selective Market coverage |
The business will sell it's products via a moderate proportion of all possible outlets. But makes strategic decisions on those outlets it chooses for its products, they must fit their 'image'. |
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Exclusive Market Coverage |
The use of only one retail outlet for a product in a large geographic area. Commonly used for exclusive/expensive products. |
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Producer to consumer |
The most direct, involves no intermediaries. Using all types of goods and services including plumbing or tax advice from an accountant. |
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Producer-retailer-consumer |
A retailer is an intermediary who buys from producers and resells to customers at a much higher price. |
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Producer-wholesaler-retailer-customer |
A wholesaler is an intermediary who buys in bulk from producer, the resells in smaller quantities to retailers. |
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Non-store retailing |
A way to purchase products away from the traditional retail store. Customers may deal with the manufacturer, eg. Vending machines, online shopping. |
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Promotion |
Anything that informs, persuades or reminds customers about a product. |
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Measuring performance |
Once a marketing plan is in place, the marketing manager needs to monitor its effectiveness in order to determine its level of success. |
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Key Performance Indicator (KPI) |
A KPI is a tool for comparison, will be comparing two points in time, used to measure/evaluate performance. |
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Revenue |
Is the money that is earned by a business. |
