Flashcards
HSC Marketing
Cards in this deck (29)
- 1ImplementationImplementing is the process of putting the marketing strategies into effect. It involves integrating the strategies will all aspects of the business, motivating employees and establishing lines of communication.
- 2MonitoringMonitoring is the actual checking and observing of the progress in the marketing plan. The marketing team gathers information to report on changes that occur during the implementation of the marketing plan.
- 3ControllingControlling is the comparison of planned performance against actual performance, and then taking corrective action to fix any issues and ensure marketing objectives are achieved. The first step of controlling is establishing a key performance indicator, which is a forecast level of performance to compare against actual performance.
- 4- Developing a financial forecastFirms must develop financial forecasts that detail the costs and revenues for each marketing strategy they're considering. By measuring it's sales potential, the firm is able to effectively allocate it's marketing resources. The firm must develop a cost estimate (costs of market research, product development, promotion and distribution), as well as a revenue estimate (expected purchases and net profit).
- 5- Comparing actual and planned resultsThe KPI's to measure the success of the firm are sales analysis, market-share analysis, marketing profitability analysis.
Sales analysis: comparing the actual sales with forecast sales to determine the effectiveness of the marketing strategy.
Market share analysis: allows the firm to evaluate their marketing strategies against their competitors. It can reveal whether sales changes have resulted from the firms marketing strategies or external factors.
Marketing profitability analysis: a method in which the business breaks down the total marketing costs into specific marketing activities. By comparing the costs and revenue of each specific activity, the firm is able to effectively allocate resources into specific activities. - 6- Revising the marketing strategyAs the firm is now in a position to assess which marketing objectives are being met, it can use this information to modify the marketing plan in order to more effectively achieve objectives. Changes in the marketing mix (4 P's) and new products developments are important for the firm to remain competitive and profitable.
- 7Market SegmentationThe process of breaking down a total market into specific groups based on their characteristics. The ultimate aim is to increase sales and market share by more appropriately addressing a specific target market. Markets are segmented based on four variables including demographic, geographic, psychographic and behavioural.
Demographic: the process of dividing the total market according to specific features such as age, sex, income, culture and family size.
Geographic: the process of dividing the total market according to geographic location. Firms often divide their total market according to different regions, as different regions often have different needs and wants.
Psychographic: the process of dividing the market according to personality characteristics, including motives, lifestyle, and opinions. When segmenting a market with this variable, it is important to research their personal interests and preferences are.
Behavioural: the process of dividing the target market according to their relationship with the product. This includes customer knowledge and benefits sought. - 8Product/service differentiation and positioningThe process of developing and promoting differences between the firm's product compared to competitors. There are four main aspects of differentiation including customer service, environment concerns, convenience and social and ethical issues. The technique in which marketers create an image of the firms products. Ultimately, positioning strategies are put in effect with the intent to make consumers perceive their product in a positive light.
- 9BrandingBranding refers to a name, term, symbol or logo associated with a product's brand, used to distinguish it from competitors. Firms aim to develop a distinctive brand name and logo, as effective branding allows firms to enjoy repeat sales. Effective branding also allows consumers to distinguish a product from competitors, reduce perceived risk from purchases, and encourage customer loyalty.
- 10PackagingPacking involves the development of a container, and the graphic design of a product. Effective packaging gives positive impressions, and encourages first time buyers. Additionally, packaging aims to make storage easier and preserve and protect the product.
- 11LabellingLabelling refers to the presentation of information on the package. It is most commonly used to describe the product and encourage proper use of it. All labels must be truthful, as government regulations specify certain information must be included on the label of the product.
- 12PriceRefers to the amount of money exchanged for a product. Selecting the correct price may be difficult, and requires specific assessment of different factors to most effectively price the product.
- 13Cost-based pricing methodA method derived from the cost of producing the product and then adding an additional mark up (%). This ensures there is profit earned on each sale. Determining an appropriate mark-up may be difficult, as a mark-up % too high may make the product overpriced, and vice versa.
- 14Market-based pricing methodRefers to the pricing of products in relation to the interaction between supply and demand. Basically, if demand > supply, price increases, and vice versa. The prices of products are constantly changing relative to the fluctuations of supply and demand.
- 15Competition-based pricing methodA pricing method that covers costs of production, and is then altered to in relation to competitors. It is often used when there is a high degree of competition in the market. A price leader refers to a business who is majorly influencing pricing decisions of other firms. Firms can either use undercut competition, equal to competitors, and above competitors when pricing their products relative to competition.
- 16Price SkimmingPricing strategy that prices the product at it's highest possible values. It is used when the product is first introduced, in order to quickly obtain costs spent in RnD and production. It is commonly implemented when there is a high degree of demand for the product, and when there is a lack of competition.
- 17Price PenetrationInvolves setting the price of a product to it's absolute minimum, with intent to obtain a large market share. The objective is to sell a large number of products during the early stages of the product lifecycle, thus discouraging potential competitors from entering the market. It is difficult to raise the price after using this strategy.
- 18Loss LeaderSetting a price at or below cost price with the hope that customers who purchase the product will also purchase additional products from the business, thus covering initial losses. Normally utilised when product is overstocked, when the firm wants to increase traffic flow and wants to build a reputation of having low prices. Firms must be cautious as some customers may not make additional purchases, thus leaving them with a loss.
- 19Price PointsSelling products at a certain, predetermined price. Normally utilised by retailers, specifically clothing stores and boutiques. Makes it easier for the firm to convince consumers to "trade up" to a more expensive model.
- 20Price and Quality InteractionConsumers assume that the higher the price, the higher the quality. Whilst this is often true, it may not be true in certain circumstances. Prestige pricing refers to when a high price is charged to give the product an aura of quality and status.
- 21PromotionPromotion describes the methods undertaken by a firm to inform, persuade and remind a target market about their product. Aims to attract new customers, increase brand loyalty, encourage existing customers and provide information about the product.
- 22Advertising (APRSP)The paid, non personal message communicated through a mass medium with the aim of increasing sales and profits. Main advantage is the flexibility to reach a mass market or a smaller segmented market. Difference types of media used include mass marketing, telemarketing, e-marketing, social media and billboards.
- 23Personal SellingInvolves activities of a sales representative directed to a customer in attempt to make a sale. Although expensive, it can prove advantageous as messages can be modified to suit the individual customer's circumstances, where this individualised assistance promotes customer loyalty and increases customer satisfaction.
- 24Relationship MarketingThe development of long term, cost effective and strong relationships with individual customers. The ultimate aim is to create customer loyalty by meeting the individualised needs of each customer, thus creating reasons for the customers to keep coming back.
- 25Sales PromotionThe use of activities or materials as direct inducements to customers. Sales promotion is often used in combination with other promotion activities to increase their effectiveness. Promotional techniques include...
Coupons: offer stated discounts on particular items at the time, and work best for new/improved products
Premiums: a gift offered to a customer by a firm in return for using the product.
Refunds: the firm offers a complete return of purchase price if the consumer is not satisfied
Samples: a free trial of a product - 26Publicity and Public RelationsPublicity is any free news story about a business' products. Public relations are activities aimed at creating and maintaining favourable relations between a business and it's customers. The four ways PR increases sales include: promoting a positive image, effective communication of messages, issue monitoring and crisis management.
- 27Opinion LeadersA person who influences others. Their opinions are respected, and therefore are used as information outlets for their products. E.g. Jeff Gordon in Test Drive Pepsi Ad.
- 28Word of MouthCommunication whereby people influence each other during conversation. If the product is of high quality, individuals often communicate it's positive features to their peers. Ultimately, this increases awareness of the product, free of price.
- 29Distribution ChannelsThe routes taken to get the product from the factory to the customer. Usually involves a number intermediaries, such as wholesalers and retailers.
Traditional distribution channels include:
Producer-Consumer
Producer-Retailer-Consumer
Producer-Wholesaler-Retailer-Consumer
Producer-Agent-Wholesaler-Retailer-Consumer
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- Flashcards on HSC Marketing, created by Paul Estephan on 08/07/2015.
- Created by
- Paul Estephan · Jul 2015
- Updated
- Feb 19, 2016
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