The role of Marketing - 3.1 Flashcards

1
Q

Marketing

A

The management task that links the business to the customer by identifying and meeting the needs of customers profitably - it does this by getting the right product at the right price to the right place at the right time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What management function does marketing include?

A

Market research

Product design

Pricing

Advertising

Distribution

Customer service

Packaging

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Marketing relationship with Finance

A

Needs to fund the increased promotion budget.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Marketing relationship with Human resources

A

Additional employees are likely to be required.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Marketing relationship with Operation

A

Market research data will be used by operations to determine the preferences of consumers for the future product mix.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

How can market be differentiated?

A

Market size

Market growth

Competitors and ease of entry

Differentiated or homogeneous products

Segmentation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Market size

A

The total level of sales of all producers within a market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Why is market size important?

A

A marketing manager can assess whether a market is worth entering or not

Businesses can calculate their own market share

Growth or decline of the market can be identified

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

How to measure market growth

A

By volume

By value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Market growth

A

The percentage change in the total size of a market over a period of time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Ease of entry

A

The lack of barriers for the establishment of new competitors in a market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What factors affect market growth?

A

Economic growth

Changes in consumer incomes

Development of new markets

Changes in consumer tastes

Technological change

Saturation of market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What makes it easier to join a market?

A

If there is more competitors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Issue with homogeneous products

A

Cannot be distinguished and therefore difficult for a business to charge higher prices

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Homogeneous products

A

Goods that are physically identical or viewed as identical by consumers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Segmentation

A

Dividing a market into distinct groups of consumers who share common tastes and requirements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Target marketing

A

Focusing marketing activity on particular segments of the market

18
Q

Mass marketing

A

Selling to the whole market using a standardised product and the same marketing activities

19
Q

What differences do managers responsible for selling services need to recognise between goods and services?

A

Consumed immediately - cannot be stored

Services cannot be repaired - services need to be good quality the first time

Consumers find it more difficult to compared services. Promotion has to be informative and detailed

People are very important to the successful marketing of services

20
Q

Important things to remember when selling services

A

Building trust

Time for delivering the service

Deliverability

Relationships

Services need a perceived value - emotional connection

21
Q

Market orientation

A

An outward looking approach basing product decisions on consumer demand, as established by market research

22
Q

Product orientation

A

An inward looking approach that focuses on making products that can be made - or have been made for a long time - and then trying to sell them

23
Q

Benefit of market orientation

A

Chances of new products failing is less likely

More likely to survive

Constant feedback from consumers

24
Q

Why is product orientation still being kept in some businesses?

A

Invent products in the belief that they will find consumers to purchase them.

Innovation

Concentrate their efforts on efficiently producing high quality goods

25
Q

Issue with market orientation

A

If a business tries to respond to every passing consumer trend then they will overstretch

26
Q

Social marketing

A

This approach considers not only the demands of consumers but also the effects on all members of the public involved in some way when firms meet these demands

27
Q

Example of social marketing

A

Body shop, which promises not to support animal testing of its products and purchases its supplies from sustainable sources produced in non environmentally damaging ways

28
Q

What implications does social marketing have?

A

It tries to to balance company profits, consumer wants and society’s interests

Social considers long term welfare (protecting the environment and paying workers reasonable wages

Give a competitive advantage, consumers prefer to purchase products from businesses that are seen t one socially responsible

Being able to charge higher prices

29
Q

Market share

A

The percentage of sales in the total market sold by one business

30
Q

Equation of market share

A

Firm’s sales in time period/total market sales in time period x 100

31
Q

Benefits of being the market leader

A

Sales are higher - higher profits

Retailers want to stock the best selling brands

Can be shown off in advertising

Strong bargaining position with suppliers and retailers

Easier to recruit him class employees

Finance can be easier with banks and investors

32
Q

Marketing objectives

A

The goals set for the marketing department to help the business achieve its overall objectives

33
Q

Examples of for profit organisation objectives

A

Market share - gain market leadership

Total sales (value or volume)

Average number of items purchased per customer visit

Frequency that a loyal customer shops

Percentage of customers who are returning customers

Number of new customers

Customer satisfaction

Brand identity

34
Q

What will a business with short term profits target?

A

Maximising sales at the highest price possible

35
Q

What will a business with long term profits target?

A

May include both profitability and achieving goals of social responsibility.

36
Q

To be effective, what should marketing objective be?

A

Fit in with the overall aims and mission of the business

Be determined by senior management

Be realistic, motivating, achievable, measurable and clearly communicated to all departments in the organisation

37
Q

Why are marketing objectives important?

A

They provide a sense of direction

Progress can be monitored against the targets

They can be broken down into regional and product sales targets to allow for management by objectives

They form the basis of marketing strategy.

38
Q

How does a not for profit organisation differ from a profit organisation?

A

Do not have external shareholders

Do not distribute dividends

Objectives include social or environment dimension

39
Q

What are the main marketing activities in a not for profit organisation?

A

Market research

Identifying the best ways to communicate effectively with donors

The need to assess the effectiveness of different promotions and companions to increase value for money in the future

40
Q

Difference in marketing for non profit making organisations compared t profit organisations?

A

Maintaining high ethical standards

Constant feedback on the success of charity campaigns

Free publicity

41
Q

Not for profit organisation marketing objectives

A

Maximise revenue from trading activities

Increase recognition of the organisation by society

Promote the work and aims of the organisation to a wide audience

42
Q

What 3 considerations can influence marketing practices and strategies?

A

Innovation

Ethics

Cultural differences