Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
22 Cards in this Set
- Front
- Back
|
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. |
