Bm Chapter 4 Marketing

Front 1

The 4 P's

Back 1

Part of the marketing mix

Front 2

Marketing mix

Back 2

The 7P's

Front 3

Product

Back 3

The product, shape, showing of the product, functionality

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Price

Back 4

Promotions (Buy 3 pay for 2), Price compared to competitors, terms and conditions,Price fitting the product

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Promotion

Back 5

Advertising, product placement (subtle influence through TV show etc...)

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Process

Back 6

How is the service

Front 7

People

Back 7

How well do the people know the service or the product

Front 8

Physical evidence

Back 8

Contract on phone

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Goods

Back 9

Are tangible can be touched, can be returned, ownership of the product, Physical products or consumables, Iphone, coke etc..

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Services

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Are intangible cannot be touched, cannot be taken back, cannot be stored and will need to be consumed timidity, there is ownership of the product.

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Product orientated approach

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Inwards looking and focused on making the product first and then trying to sell it

Examples of product oriented organizations, Microsoft,Ferrari,Dyson and Apple.

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Market oriented approach

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Outward looking and focused on carrying out market research first and then making products that can sell

many organizations are now market orientated businesses, including Ford Samsung and Nokia.

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Social media marketing [SMM]

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Doesn't cost anything except someone updating it sometime.

Enables firms to get direct feedback from is customer while still appealing to them personally. Provides customers the opportunity to ask questions and raise complaints Low cost way to reach a large target audience It can enhance a firm's brand firms can get exposure by just joining communities online

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Commercial marketing

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Market research is carried out to establish consumer demand and businesses will supply what is demanded. The strategies used in commercial marketing need to be tailored specifically to the type of product the commercial is selling. These strategies may include:billboards,television advertisement, or local print media online marketing campaigns: google ad sense or emails

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Social marketing

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“The use of commercial marketing concepts and tools in programmes designed to influence individuals behaviour to improve their well being and that of society”

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Market growth

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An increase in the demand for a particular product or service over time. Market growth can be slow if consumers do not adopt a high demand or rapid if consumers find the product or service useful for the price level.

Front 17

Market share

Back 17

The percentage of an industry or markets total sales that is earned by a particular company

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Market leader

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Increased sales

gain economies of scale leading brand can act as a promotional tool for consumers who would like to associate with popular brands

However

Market share can be measured in different ways, by value and volume,different results may be obtained in the same time period Changes in the time period and market can influence market share results the type of product included may also influence calculations of market share

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Culture differences

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Mcdonald's and KFC have intrude halal foods to cater for customer of the muslim faith.

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Marketing segment

Back 20

A segment refers to a subgroup of consumers with similar characteristics in a given market.

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Marketing

Back 21

the action or business of promoting and selling products or services, including market research and advertising.

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Demographic segmentation - the varying characteristics of the human population

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Age

Gender

religion

family

characteristics

Ethnic groups

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Geographic segmentation

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Where the market is divided

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Psychographic segmentation

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divided based on people's life styles

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The advantage of segmentation

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Helps business identify gaps and new opportunities

Designed products fit for a demographic can increase sales

Minimizes waste of resources identifying the right consumers Can diversify

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Targeting

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Consists of a group with common needs and wants that a business decides to serve or sell to.

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Mass marketing

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Ignores differences in specific marketing segments and targets the entire market.

Ex: Dell, Hp, Coca cola, Fallout 4

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Differentiated marketing

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Development of a proper marketing mix for each segment of marketing.

Toyota which designs cars for socioeconomic statuses

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Concentrated marketing

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Niche marketing appeals to a small and more specific market segment, good strategy for small businesses

Front 30

Positioning

Back 30

Analyzes how consumers define or perceive product compared to other products in the market, as consumer are sometimes faced with an overload of information, in an effort to simplify their purchasing process they categorize products and position them accordingly

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Position map

Back 31

Establishes competitors and threats

Identifies gaps

Simple and quick

can be specific

Front 32

USP Unique selling point

Back 32

Helps establish firms competitive advantage in its product offering and as a result helps to attract more customers

Leads

Leads to consumer loyalty as customers can identify something about the product in comparison to rivals

Example apple and its products

Front 33

Sales forecast

Back 33

Predicting what a firm's future sales will be

Front 34

Trends

Back 34

This is visible pattern noted after inputting the past sales data, this meant indicate the rise and fall of sales

Front 35

Seasonal fluctuations

Back 35

Changes in demand because of the varying seasons of year.

Front 36

Cyclical fluctuations

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Variations tied to the business cycle in an economy for example sales could be on the rise during growth phase but declining during recession

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Random fluctuations

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Notable changes or fluctuations that stand out from a given tend for example: there may be a sudden increases in the demand for ice cream during a rare warm day in winter

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Moving averages

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Useful indicator in sales forecasting for identifying and emphasizing the direction of a tend

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Marketing research

Back 39

Identification of consumers, needs and wants as well as consumer satisfaction levels and patterns of behavior.

To help a business plan for the future for example: an upcoming recession will decrease in overall spending patterns because of possible decline in consumer income

To reduce the risk of a product failing by effectively carrying out research

To measure the effectiveness of a marketing strategy to provide current or the latest information regarding activity in the market

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Primary market research

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Field research which involves Mailing, telephone, online , surveys,interviews, observation, focus groups

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Secondary market research

Back 41

Collection of second hand info, desc info such as media articles, Government publications, market analysis

Front 42

Sampling

Back 42

Is simply the process of selecting the appropriate sample

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Quota sampling

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segmenting the population into groups that share certain characteristics such as gender or age.

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Random sampling

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Every member of the population has an equal chance of being selected as part of the sample

Front 45

Cluster sampling

Back 45

Selecting a group from each region (cluster) and the talking a random sample from the clusters, for example a multinational wishing to set up a plant in a certain town may carry out research on just a few areas around the location and the opinions of the clusters selected will be assumed to represent them.

Front 46

Snowballing

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This is a process of sampling that involves surveying the first group or individual who then suggests other groups or individuals.

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Convenience sampling

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Groups are selected based on their easy access and proximity to the researcher for example a teacher doing research on the school canteen could conduct a study by being physically present and directly interviewing students purchasing items from the canteen.

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The product life cycle

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Front 49

Development stages

Back 49

Stage 1 development In this step the product is designed, brainstorming session where a number of stakeholders are consulted to come up with anything that may help satisfy consumer needs and wants.

2 Screening ideas The stage which ideas are denied or further researched,

3 Creating a prototypeA first or trial for of a product form which others are developed, allows for physical and visual examination, it could also be given out to customer for trial and feedback.

4 Carrying out test marketing Samples of the developed product are launched in a small but representative part of the market to asses its potential demand and sales.

5 Commercializing Full launch of the product, this will involve the use of all element of the market mix.At this point cash flow is negative and costs are very high.

Front 50

Extension strategies

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An attempt by firms to stop sales from falling by lengthening or extending the product's life by lengthening its life cycle.

Front 51

Methods of extending a products life cycle

Back 51

Sell existing product into new markets, country Finding new uses for the product: for example the cell phone, first used to communicate now so much more.

change product packaging, this includes design appearance and color, for example washing detergent OMO.

Target different market segments, one example is banks having different accounts that customer may open based on their income levels.

some also have accommodated customers with various religious beliefs and have special accounts for them.

Develop new promotional strategies. for example firms could create new advertising campaigns to encourage customers to continue using their products.

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Boston consulting group matrix

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Holding strategy

Back 53

The focus is on products with high market share to ensure that they maintain their current position in the market´.investments will be needed to ensure sustained consumer demand

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Building strategy

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This centres on turning problems child into a star, money from the cash cow could be invested in promoting or distributing the product so as to increase market share

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Harvesting strategy

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The focus here is on milking the benefit of products with positive cash flow there products provide the necessary finance which could be used in investing in the other portfolio products.

Front 56

divesting strategy

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This is where the poor-performing dogs are phased out or sold off. the resource freed up from this will need to be used well in boosting the performance of the other products in the portfolio.

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Branding

Back 57

a brand may be defined as a name, symbol,sign or design that differentiates a firm's products from its competitors.

Branding is the process of distinguishing one business products from another and adding great value to a product.

Front 58

Penetration pricing

Back 58

Setting a low initial price for a product with the aim of attracting a large number of customers quickly and gaining a high market share is known as penetration pricing. As a firm gains market share its price slowly raises

Front 59

Price skimming

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Is when firms set high prices when introducing new product to the market. Used to gain as high revenue as possible widely used in the tech market.

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Psychological pricing

Back 60

Refers to when firms consider how pricing affects consumers perception of the value of their products. for example pricing a product at 9.99 instead of 10.

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The loss leader

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Businesses that charge a low price for a product, usually below its average cost refer to that product as a loss leader. The aim of this strategy is to attract many customers.

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Price discrimination

Back 62

Charging different prices to different groups of consumers for the same product is referred to as price discrimination. AKA pricing for adults and children.

Front 63

Competitive pricing

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a pricing strategy which takes into account what the competitors charge for their products.

Front 64

Promotion

Back 64

Concerned with communicating information about the firm's products to consumers the idea is to obtain new consumers and keep existing ones.

Front 65

Above the line promotion

Back 65

Paid form of communication that uses independent mass media to promote a firm's products including, radio, tv, news, social media and so on.

Another organization is usually hired or put in charge of the promotion.

Front 66

Reassuring advertising

Back 66

Focus on existing customers to remind them that they made the right purchase decisions when they choose to buy the firm's product and that they should continue purchasing it. Coca-cola promotional campaigns are well known examples of this strategy.

Front 67

Below the line promotion

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A form of communication which gives the business full control over their advertising and its promotional activities. below the line promotion can focus the promotional activities on customers they know or no those who are interested in their products.

Front 68

Direct marketing

Back 68

This ensures that the product is aimed directly at the consumers. it eliminates the use of intermediates and therefore can save the business money, Such as sign up Emails etc...

Front 69

Personal selling

Back 69

This involves the sale of a firm's products through personal contact aka Phone, sales representatives and face to face, this is commonly done with expensive products as it is important to give the customer the attention which he needs.

Front 70

Public relations

Back 70

aimed at enhancing the image of the business and its products, it uses the use of publicity or sponsorship, this includes press conferences where media is invited and provides information about a social responsibility project in its product and gain free publicity for them.

Front 71

Sales promotions

Back 71

Short term incentives with the aim of increasing or boosting its sales. Which includes the following:Money off coupons

Point of sale displays Free offers or free gifts Competitions

BOGOF ( Buy one get one free)

Front 72

The impact of new technology on promotional strategies

Back 72

Wider reachengagement - allows for users to rate,review and express their concerns Market information - good place for measurable data

Cost saving - very low costs Brand recognition SPEED

Front 73

Limitations of technology on promotional strategies

Back 73

Limitations of technology on promotional strategies Accessibility problems - regions with limited tech may not receive the promotion from a companyDistraction - reason for adblockLurkers - Don’t do nothing

Front 74

Guerrilla marketing

Back 74

nontraditional activities that help companies weaken their rivals and stay successfully on the market even with limited resources.

Front 75

distribution channel

Back 75

A distribution channel or channel of distribution the path taken by product from the producer to the customer.

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Zero intermediary channel

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This is when a product is sold directly from the producer to the consumer. for example agricultural products can be sold through this method.

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One intermediary channel

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This involves the use of one intermediary such as retailer or an agent to sell the products from the producer to the consumer. In most cases it is used where the retailer is operating on a larger scale or where the products are expensive.

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Two intermediaries channel

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In this case two intermediaries which usually include wholesaler and retailers are used by producers to sell the product to the consumer.

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E - Commerce

Back 79

E-commerce (electronic commerce or EC) is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the Internet.