Flashcards
Marketing Terms
Cards in this deck (40)
- 1Political (PEST)Involves all laws, government agencies and groups that limit others.
e.g. ecological/environmental issues, government policies, trading policies, wars and conflicts. - 2Economic (PEST)Refers to the purchasing power of potential customers and the ways people spend their money. e.g.seasonality/weather trends, interest and exchange rates, international trade issues, home economy situations/trends.
- 3Social (PEST)The demographics of a population to help determine the different market segments
e.g. lifestyle trends, demographics, fashion and role models, ethinic and religious factors. - 4Technological (PEST)Includes all developments of technology which opens new markets and new users for products.
e.g. competing technological development, research funding, manufacturing maturity and capacity, access, licensing and patents. - 5Product (Marketing Mix)Defined as anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need e.g. car, book, pillow
- 6Place (Marketing Mix)Involves company logistics and marketing activities concerned with making and distributing the finished product to target customers.
- 7Price (Marketing Mix)The amount of money customers pay to obtain the product. This needs to be researched in order to ensure that it is reasonable and relevant to the market.
- 8Promotion (Marketing Mix)Actvities that communicate with target customers and inform, remind and/or persaude.
- 9People (Marketing Mix)Important in marketing services where the person providing the service is often crucial in providing the customer with a good experience. Must be polite, efficient as well as easy to contact and communicate with.
- 10Process (Marketing Mix)Includes both production and service processes. Both the product and the service experience involve the customer in consumption process. If they recieve a poor experience they are less likely to return or recommend the company.
- 11Product conceptProposes that the consumers will prefer products that have better quality, performance and features as opposed to a normal product.
- 12Production conceptThe basic proposition of the production concept is that customers will choose products and services that are widely avalable and are of low cost.
- 13Life time customer valueWhen a company creates value for target customers and builds strong relationships. By capturing the customer and continuing to offer quality products at a reasonable price in comparison to the markets, companies give themselves the best opportunity at gaining customer loyalty and ensuring the repurchase of the company's products.
- 14Psychographics segmentationsegments people by their lifestyle, traits, values and beliefs. e.g. car manufactueres can segment their market by social class as often they are a reflection of a consumer lifestyle and used as a social symbol of success:
- 15Demographic segmentationseperates a market by demogrpahic indicators including gender, age, household type, education level and income. e.g. cosmetics and perfumes segmented differently for males and females OR banks target different groups such as young families, students and older people.
- 16Geographic segmentationSeparates a market into different geographical boundaries which can impact the marketing mix e.g. summer items will be more profitable if sold in warmer regions than colder
- 17Behavioural segmentationSeparates the market by shopping and buying behaviours e.g. resturants- whether it is a regular, special occasions, business OR do you like shopping online or instore?
- 18Maslow's heirachy of needsA theory in psychology proposed by Abraham Maslow in his 1943 "A theory of human motivation", to describe the pattern that human motivations generally move through
Physiological: Physical requirements for human survival, if these arent met then the body cant function properly and will fail.
Safety: In the absence of safety people may experience post traumatic stress disorder. In the absence of economic safety these safety needs become important for job security, savings account etc.
Love and belonging: Humans need to feel loved and belonging among their social groups as well as by another- both sexually and non sexually.
Esteem: All humans need to feel respected-
Two parts= lower and higherLower= need for respect from others e.g. status, recognition, fame etc.
Higher= self respect e.g. strength, confidence, competence, independance and freedom
Self actualization: What a persons full potential is and the realisation of that. The desire to achieve everything that one can. - 19Position (of product)Refers to where a product fits in the mind of the consumer, based on: product attributes, needs it meets, benefits they offer, people that are associated with, compared with competitors and price/value.
- 20Re-position (of product)Sometimes a product is no longer required by the consumers within a certain market but can live on in a different position, if you change the target market and consumer position.
- 21Advertising (Promotional Mix)Any form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.
-Company engages in a one way communication to the prospect or customer e.g. magazines, newspapers, tv, websites etc. - 22Public Relations (Promotional Mix)Buliding good relations with the companys various publics by obtaining favourable publicity, building up a good corporate image and handling or heading off unfavourable rumours, stories and events. e.g. a campaign, donating to a cause
- 23Personal Selling (Promotional Mix)Personal presentation by the firms sale force for the purpose of making sales and building customer relationships
- one on one communication
- one of the most expensive forms of promotion e.g personal meetings, telemarketing, emails - 24Sales Promotion (Promotional Mix)Short term incentives to encourage the purchase or sale of a product or service.
-Increase sales, inform potential customers and create positive brand image e.g. coupons, product samples - 25Direct marketing (Promotional Mix)Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships e.g. direct mail, email
- 26New Product DevelopmentIdea generation, idea screening, concept developing and testing, marketing strategy development, business analysis, product development, test marketing, commercialisation
- 27Price elasticityHow responsive demand will be to a change in price
Inelastic demand: If demand hardly chages with a small change in price
Elastic demand: If demand changes greatly with a small price change
DIAGRAM + Equation : price elasticity of demand= % change in quantity demand/ % change in price - 28Intermediaries (types and strategies)3 types of intermedaries:
-Company sales force: Expand the company's direct sales force e.g. contact all prospects in that area
- Manufacturers agency: Hire manufacturers agencies, independant firms whose sales force handle related products from many companies in different regions/ industries
-Industrial distributors: Find distributors in the different regions or industries who will buy and carry the new line
3 strategies of marketing intermedaries:
-Intensive distribution: Producers of FMCG's and common raw materials typically seek intensive distribution, having their products in as many outlets as possible
-Exclusive distribution: Some producers delibrately limit the number of intermedaries handling their products. The extreme form of this practice is exclusive distribution, where a limited number of dealers are given the exclusive right to sell.
-Selective distribution: Lies between the 2 above. The use of more than one but fewer than all the intermedaries who are willing to carry a companies products - 29BrandA symbol that adds values to a product in a number of ways.
Represents:
- Familiarity
-Trust
-Reliability
-Consistency
-Social responsibility
-Patriosm
As consumers we define ourselves by the kind of brands we use however this must be maintained through brand equity by the company maintaining:
- Consistent high quality
- Trustworthiness
- Consistency
- Positive coroporate image - 30Stars (BCG)Stars: High growth, high share business or products. Often need heavy investments to finance rapid growth which will eventually slow before turning into a cash cow
- 31Cash Cows (BCG)Cash Cow: low growth, high share. Established and successful SBU's requires less investment. Produce a lot of cash
- 32Question marks (BCG)Question marks: low share in high growth markets. Require a lot of cash to hold their share, let alone increase it. Managment must think hard about which to develop
- 33Dogs (BCG)Dogs: low growth, low share. generate enough cash to maintain themselves but dont prmise large sources of cash
- 34For profit marketingLets potential customer know about a service/product
The business keeps the money, the customer enjoys the product/service
Focuses on development of new markets and products - 35NFP marketingMarkets the work it does or a cause it supports
Builds awareness and gains financial support from public
Customer gives money in exchange for opportunity to contribute - 36Buying CentreWhile multiple people may be involved in consumer purchase e.g. child influencing parent, it is usually an individual decision
The business market is significantly different and usually requires the input of many = buying centre
5 components
Buyer: responsible for dealing with suppliers and placing orders e.g. purchasing agents
Decider: has the power to make the final decision e.g. CEO
Influencer: has the ability to affect what is ordered such as setting order specifications e.g. engineers, product management
User: those who will actually use the product when it is received e.g. office staff
Gatekeeper: anyone who controls access to other buying centre members e.g. administrative assistant
Important as it identifies everyones role. The unique needs must be met of each member as everyone has different agendas which means a careful management approach must be implemented - 37Measure of marketing effortsProduct: Observe what they buy, ask them! What do they like/dislike?
Place: What market penetration do you have/aimed to have, what are the cause of variances
Price: What realised price did we achieve/aim to achieve, cause of variances
Price and Profitability: How does realised net revenue compare to budgeted net revenue
Promotion: What do people know in comparison to now and before advertising
What do people think of our product
ISSUES: Reach, frequency, cut through, relevance
Public Relations:
To what extent is publicity positive/negative
Personal Selling: How do net sales and value sales compare to budgeted and forecast sales
Market Share: How well your doing in the market place - 38Similarities of FP and NFP marketingBoth use:
- marketing mix
-target audience identification
- positioning
- branding
- advertising
- public relations
NFP use these to identify target sponsors and donors
Also use the same media platforms:
-online
-print
-radio
- possibly TV
Public relations work just as hard within NFP organisations in order to create favourable publicity to raise awareness, establish a positive corporate image and maintain its reputation - 39Differences of FP and NFP marketingMain one is the fulfilment of the customer need. A FP customer has a need of their own that they fulfil through the purchase of the product/service
A NFP customer recognises the need of others and their ability to help fulfil it through a donation - 40Product Lifecycle4 stages.
Introduction Stage: Most expensive for company. All costs in relation to competitors and the size of the market push these up
Growth Stage: Characterized by a strong growth in sales and profits. Makes it possible to invest more into promotional activity to maximise the potential of this stage
Maturity Stage: The product is established and the aim is to now maintain the market share they have built up. Time to consider the product modifications and improvements
Decline Stage: Market will start to shrink due to lack of customers or change in desire
Information
- Description
- Flashcards on Marketing Terms, created by tahliamoir on 10/06/2015.
- Created by
- tahliamoir
- Views
- 1
- Rating