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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.

Ethical

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

Advertising:


- 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

Advantages:


- easy to reach a large target market.


- easy for a consumer to research product.


Disadvantages:


- 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.