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22 Cards in this Set

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Strategic role of marketing goods and services

The ability of a business to understand it's customers and be responsive to the changing wants and needs of its target market allowong for allocation of resources

Strategic role---identify changing envrionment---adapt the business and it's products

Interdependence of other key business functions

market research.

Operations: marketing conducts market research and operation maufacture a product based on market research.Human resources: ensures the right staff is employed to create the good or service that is desirable to customers.

Finance: Responsible for providing financial information needed for sound and viable decision making.

Product, selling and marketing approaches

Product (1850s-1920s): empahsis on producing goods.

- Limited products being produced.

- focus was make them and the customers will come.

- focus on mass production and no attention to customer preference.

Selling (1930s-1950s): post great depression that the customers could not buy everything. Therefore business needed to consider how to sell products.

- productivity and efficiency increased therefore more competition.

-sales people were imperative

Marketing: stage 1 (1960s-1980s)

-economic boom, society became more efficient, which lead to greater choice.

- producers now needed to satisfy customers needs and wants due to a high discretionary income.

- based on 4 principles:

1. Customer-oriented

2. Supported by integrated marketing

3. Aimed at satisfying customers.

4. Integrated into business plans.

Stage 2 (1980s-now):

- change in economic and social conditions lead to a modification in the marketing approach such as

1. CSR

2. customer orientation

3. Relationship marketing.

Types of markets

1. Resource market: business engaged in primary production.

- It's the production and sales of raw materials e.g. mining, agriculture, forestry and fishing.

2. Industrial market: where business buy and sell raw materials, components to each other.

- business to business e.g. factories

3. Intermediate market: business that buy goods and services and resell to other businesses.

- stage along the distribution change b/w producers and customers e.g. wholesalers.

4. Consumer market: individuals who plan to use and consume the products they buy. End of process. E.g. retailers.

6. Mass market: adv: opportunity for profitability as a result of greater market courage and cheaper to conduct. Dis: more difficult to appeal to an individual (cause only producing one style of product.

7. Niche market: adv: products are differentiated to tailor certain market needs and appeals to customers.

Dis: needs often change thus customisation of products will need to occure often

Factors influencing customer choice

Psychological: influences within an individual that effect his or her buying behaviour.

- perception

- attitude

- motive

- personality

- self image

- learning/habit

Sociocultural: Influences exerted by other people that affect his or her buying behaviour

- culture

- social status

- family

- peers

Economic: refers to an individuals capacity and willingness to purchase goods or services.

- boom: high levels of spending

- recession: low levels of spending

Government: policies that directly/indirectly influence business activity and spending habits.

- policy e.g. fiscal policy

- regulations

- tax

What is consumer competition act 2010 and australian consumer law 2011

Consumer competition act 2012: protects consumers against undesirable business practices and prohibits various unfair business practises.

Australian consumer law 2011: a single set of statutory consumer quarantees.

Consumer laws

Deceptive and misleading advertising: business must be truthful with their pricing claims, advertising and special offers. They can not advertise a claim for a product that they can not prove to be true e.g. fune print, dishonest packaging

Price discrimination: setting of different prices in different markets.

- possible because the markets are geographically separated e.g. city and country prices or different electricity prices for domestic and business.

Implied conditions: is an unspoken, unwritten term of contract. Assumes condition cease to exist regardless of whether thet were especially monitored or written into the contract.

Warranties: a promise to repair or replace a good or service if it fails.

- this assures that the business has confidence in the quality of its product.


Truth, accuracy and good taste in advertising: is where consumers have the right to expect truthful marketing of products and services. E.g. hidden fees not disclosed in advertising.

Products that may damage health: estimated in 2011 that an average person is exposed to over 2000 advertisements a day and some for products that could be considered unhealthy.

- 2011 over plain packagingfor cigarettes as young people will find it less appealing.

Engaging in fair competition:

- price fixing: where 2 or more business agree to control or fix proces for goods or services they produce.

- misrepresentation in advertising: false or misleading claims.

- bid rigging: when the tendering process is manipulated by the business induced.

- predatory pricing: where a business uses it's dominant position in the market to lower prices to drive out comp.

Sugging: involes selling under the guise of research.

- Illegal but very difficult to detect.

- e.g. surveying a household about primary school students may focus on selling programs to improve naplan testing.

Situational analysis

SWOT: involves the identification and analysis of the internal strengths and weaknesses of the business, and the opportunities in, and threats from the external envrionment.

- strengths: anything a business does better than competitors such as effective and efficient, excellent reputation, achieving and exceeding goals.

- weakness: things that competitiors to better.

- opportunities: changes in the external environment that business can exploit. Includes new fast growing markets, weak competition, research and reports.

- threats: changes on the external envrionment that make it difficult to achieve objectives. Includes market/product oversupply, new and increased competition and research and reports.

Product life cycle: consists of the stages a product passes through (introduction, growth, maturity and decline stage).

- introduction stage: business try to establish awareness of their products. Brand and reliability is established and distribution is selective.

- growth stage: brand acceptance and market share actively pursued. Price per unit is maintained. Distribution channels are increased.

- maturity stage: sales plateu as the market becomes saturated. Features and packagin try to dofferentoate the product from competitors. Incentives may need to decrease.

- decline stage: sales begin to decline, price is reduced to sell remaining stock, distriburion channels reduced and product offered to a loyal segment only

Market research

Success of the marketing plab can depend on the quality of research data about the target market.

1. Determine information needs

- results of marketing strategies meet the needs of the business.

- assists the business to meet target objectives.

- may be useful to increase sales and profits.

2. Data collection can be performed in two ways:

1. Primary data: direct source such as surveys.

2. Secondary data: indirect source such as research reports.

3. Data analysis and interpretation:

- focus on the data that is representative of the average consumers.

- allows management to gain a better understanding of the impact of the data on operations.

Establishing marketing objectives

They must be smart: smart, measurable, achievable and time based.

- increase market share: refers to total share of the total industry sales.

- expand the product range: having to expand due to the changing tastes and preferences of consumers

- maximise customer service: responding to the needs and problems of the customer.

- expanding existing markets: filter into new geographical markets to expand products.

Identify target markets

A target market is a group of people of whom you intend to sell your product to.

- the customers within this market will share similar characteristics such as age, income, lifestyle.

Why identify and select a traget market?

- because it uses marketing resources effectively.

- better understand the consumer buyer of the target market.

- defines marketing strategies used to influence customer choice.

Approache to identifying a target market:

Mass marketing: big market, one market.

Market segmentation: subdivided into a group of people who share common characteristics

Niche market approach: small selected market

4 variables:

1. Demographic: age, sex

2. Geographic: where you live

3. Psychographic: lifestyle, perceptions

4. Product related: fist time buyer

Implement, monitor, control

- Implementing means putting marketing strategies into operation.

- monitoring means checking and observibg the actual progress.

- controlling means comparing actual progress to planned results and taking corrective action if it dosent meet.

Developing a financial forcast: includes working out the expected costs and revenus of implementing the plan.

Comparing actual and planned results: sales analysis, market share analysis, market profitability analysis.

Revising marketing strategy: if not achieveing results corrective action should be taken e.g. changing the marketing mix and allocation of resources.

Market segmentation, product/service differentiation and positioning

Market segmentation occurs when the total market is subdivided into who shares one or more characteristics.

Product/sevice differentiation: the process of developing and promoting differences b/w the businesses product or service and those of its competitiors. 4 important points

1. Customer choice

2. Environmental concerns

3. Convenience

4. Social and ethical issues.

Positioning: the development of a product image in relation to competitors that sell a similar product. A business will attempt to create a product positioning that has a level of aura and quality in attempt to entice first time customers.

Pricing methods

Price skimming: refers to charging the highest possible price for a product that consumers are willing to pay.

Price penetration: refers to a business charging at the lowest possible price when entering a saturated market in attempt to cover the production costs but entice customers to purchase their product.

Loss leader: products are significantly discounted in order to entice customers inton the store and thus hopefully overcome the koss through the ourchase of other more expensive items.

Price points: is a psychological procing strategy that are based on the consumers perception of value for money. E.g. setting prices at a point, such as $19.95, where customers think they are not paying as much for the product as they really are.

Product: branding, packaging

Branding: a business will attempt to create a brand name that is unique from its competitiors in order to differentiate it's product and create a loyal customer base e.g. mcdonalds symbol

Packaging: 2 steps

1. Durability: the extent of packaging has to be sufficient to protect the goods during transportation and storage without being too excessive that it impacys the businesses incentory measurement.

2. Visual appeal: the design of the packaging will be modified around a businesses attempt to attract the interest of their target market and differentiate from competitors with similar products

Price and quality interaction

There is a general assumption among consumers that the higher the price of theboroduct, the better the quality. The quality relationship helos determine the image customers have of products or brands.

Promotion-elements of the promotion mix


- mass marketing: tv, newpaper

- direct marketing: catalogues mailed to individuals.

- telemarketing

- e-marketing

- social media and advertising

- billboards

Personal selling and relationship marketing: requires a sales assistant who outlines the features of a product to a potential customer in an attempt to persuade them to purchase it.

Sales promotion: is the use of activities or materials as direct inducements to customers to increase demands as well as sales e.g. coupons

Publicity: this is where the business is associated with a celebrity and/or a community event. A business will use publicity to reach a wide audience with less effort and give it's products a more favourable image in the community

Place/distribution (channels of distribution)

Distribution channels:

* produce - customer: e.g Bakers delight.

* produce - retailer - customer emgm used for perishable goods.

* produce - wholesaler - retailer - customer e.g. used for large consumer goods such as electrical appliances and motor vehicles

Channel choice:

- intensive: product is made as widely as possible.

- selective: only a few channels are used, so availability is limited. Used for more valuable goods.

- exclusive: where individuals are given an exclusive channel e.g. expensive products.

- exclusive:

Physical distribution issues:

- transport: type of transport will depend on the type of product. Speed, delivery of cost, warehousing,

- warehousing: storing of a product in a particular manner.

- inventory: ensures products ave available when needed, without the costly problem of holding stock.

People, processes and physical evidence

People: refers to quality interaction b/w customer and those within the business who will deliver the service

Physical evidence: envrionment in which the service will be delivered. Includes location where service is being produced and materials needed to carry out ther service.

Processes: the flow of activities that business wil follow in its delivery of a service.

E-marketing adv and dis


- easy to reach a large target market.

- easy for a consumer to research product.


- consumers cannot easily research the product.

- secure payment system.

Global marketing:

Global branding: refers to using a worldwide term, symbol or logo to identify it's products. Provides a worldwide image.

Standardised approach: it's a global marketing strategy that assumes the way the product is used and the needs it satisfies is the same all over the world.

Customised approach: it's also a global marketing strategy which assumes the way the product is used and the needs it satisfies are different b/w countries.

Global pricing: how businesses coordinate their pricing policy across different countries.

- customised pricing

- standardised pricing:

- market customised: charging prices according to different market conditions.

Competitive positioning: relates to how a business will differentiate it's product. It centres on how a business will carve out a place in the competitive marketing environment.