Applied Marketing Flashcards
(103 cards)
1
Q
The 7 Ps
A
1) Product
2) Price
3) Place
4) Promotion
5) People
6) Process
7) Physical Evidence
2
Q
The Traditional P’s
A
1) Product
2) Price
3) Place
4) Promotion
For Products
3
Q
The Extended P’s
A
1) People
2) Process
3) Physical Evidence
For Services
4
Q
Product
A
The features of the product for sale
5
Q
Price
A
What pricing strategy is being employed?
6
Q
Place
A
What distribution channels are being utilised?
7
Q
Promotion
A
How are potential customers being informed about the product?
8
Q
People
A
How are people being employed in customer-facing roles
9
Q
Process
A
What does the customer journey look like?
10
Q
Physical Evidence
A
What tangible assets are part of the customer experience with the organisation?
11
Q
Price Skimming
A
A “pioneer” pricing strategy that involves pricing high in order to maximise per u it profit whilst competition in the market is still low
12
Q
Price Penetration
A
A “pioneer” pricing strategy employed to maximise volumes of units sold by setting the price low in order to grow market share and adoption rates rapidly
13
Q
A Pioneer Pricing Strategy
A
A pricing strategy employed by an organisation bringing a radically new product to market.
14
Q
Production Orientation
A
- 1800s+
- Cheap Production
- Low Prices
- Very Large Quantities Produced
- Economies of Scale are the Aim
15
Q
Product Orientation
A
- Products Full of Features
- “Something for Everyone” Mindset
- Profit from Boosted Sales as People Who may Not Otherwise Buy, Will Do
16
Q
Sales Orientation
A
- 1920s to 1950s
- Very Aggressive Sales
- Often Creates Artificial Demand
- “Sell what We Have, Not What They Want” Mindset
17
Q
Marketing Orientation
A
- Customer Needs Identified
- Build a Relationship with a Customer to Understand their Needs / Wants / Expectations
- “Give the Customer What They Want” Mindset
18
Q
Relationship Marketing Orientation
A
- Lifetime Customer Value > Transaction Value
- Relationship Building is Core to the Organisation
- Focus on Customer / Supplier Retention
19
Q
Market Orientation
A
- Customer Centric
- Decisions led by the Market
Never and Slater (1994):
- Long Term Profits
- Cross Functional Teams
20
Q
Marketing’s Contribution to Organisations
A
- Create Customer Value
- Provide Competitive Advantage
21
Q
Brand Value
A
The extra amount a customer is willing to pay for a branded product over a non-branded product.
22
Q
Ladder of Loyalty
A
1) Suspect
2) Prospect
3) Customer
4) Client
5) Advocate
6) Partner
23
Q
Mission Statement
A
A statement that define:
- Role of Profit / Service / Opportunity
- Business Definition
- Distinctive Competencies
- Indications of the Future
24
Q
Objectives
A
- Statement of specific aims to be achieved
- Help Achieve Larger Strategies
- Good Objectives are SMART
25
SMART
Definition of requirements for a good overdrive:
- Specific
- Measurable
- Achievable
- Relevant / Realistic
- Timebound
26
APIC
A planning process framework:
- Analysis
- Planning
- Implementation
- Control
27
Influences on Objectives
Internal:
- Culture
- Resources
- Staff Aspirations
- Company Strategy
- Departmental Objectives
External:
- Competitor Actions
- Customer Behaviour
- Government
- Technological Development
28
SOSTAC
A planning process framework developed by P. R. Smith:
- Situation Analysis
- Objectives
- Strategy
- Tactics
- Action
- Control
29
Customer Buyer Process
1) Needs Recognition
2) Information Search
3) Evaluation of Alternatives
4) Purchase Decision
5) Post-Purchase Evaluation
Speed of the Process is Affected by the Risk Associated with the Purchase and the Level of Personal Involvement a Customer has.
30
Stages of a Typical Customer Journey
1) Awareness
- Become aware of a product
2) Interest
- Become interested by the concept
3) Consideration
- Consider costs / benefits / alternatives
4) Purchase
- Buy the product
5) Retention
- Encouragement to repeat purchases
6) Advocacy
- Spread recommendations of a brand
31
Diffusion of Innovation
- Innovators (2.5%)
- Early Adopters (13.5%)
- Early Majority (34%)
- Late Majority (34%)
- Laggards (16%)
32
B2C Buying Influences (Pyschological)
- Motivations
- Perceptions
- Learned Knowledge
- Beliefs
- Attitudes
33
3 Types of Perception Biases
1) Selective Attention
2) Selective Distortion
3) Selective Retention
34
Selective Attention
A psychological perception bias.
Self-Selection of what information we deem necessary to pay attention to.
35
Selective Distortion
A psychological perception bias.
Self-Distortion of facts and figures that allow us to better fit them to fit our own perceptions.
36
Selective Retention
A psychological perception bias.
When we only remember information that we believe to be important.
Fundamental for the formation of other biases.
37
B2C Buying Influences (Social)
Culture:
- Influences values / beliefs / attitudes / behaviour
- History and Tradition
Reference Groups:
- Groups that we refer to for additional information
Family:
- Often the strongest and widest- preaching reference group
- Unconsciously guiding in many ways
Social Class:
- Often very vague
- Can be extremely influential
- Social mobility has blurred many traditional classes
38
U.K. Buyer Social Class Model
A - High Management, Leadership (Upper Middle Class)
B - Middle Management, Supervisory (Middle Class)
C1 - Junior Management, Administrative (Lower Middle Class)
C2 - Skilled Manual, Traditional Trades (Skilled Working Class)
D - Semi-Skilled Manual, Trade Apprentices (Working Class)
E - Unskilled or Casual Workers, Labourers (Lowest Subsistence)
39
B2C Buying Influences (Personal)
Ascribed status:
- Age
- Sex
- Race
Lifestyle:
- Interests
- Physical Behaviour
- Values
- Opinions
- Tends to be the most influential Personal Factor
Personality:
- Confidence
- Sociability
- Charisma
- Ambition
- Curiosity
40
B2B Organisational Buying Process
1) Problem Recognition
* 2) General Need Description
3) Product Specification
4) Supplier Search
5) Proposal Solicitation
6) Supplier Selection
* 7) Order-Routine Specification
8) Performance Review
* If necessary
41
B2B Buying Influences (Macro)
Environmental:
- Economic
- Technological
- Political
- Competitive
- Cultural
42
B2B Buying Influences (Micro)
Organisational:
- Objectives
- Policies
- Procedures
- Structure
- Systems
- Organisation Culture
43
B2B Buying Influences (Groups)
Influences on Groups of People:
- Authority
- Status
- Empathy
- Persuasiveness
- Culture
44
B2B Buying Influences (Individuals)
Influences on Individual People:
- Age
- Education
- Job Role
- Personality
- Risk Attitude
45
Types of Buyers
1) Customer - Those who purchase a product or service
2) Consumer - Those who use a product or service
3) Organisational Buyer - Those in charge of buying on behalf of an organisation
46
Importance of Customer Buying Behaviour
- Helps design marketing activities
- Develops a better understanding of customer needs and wants
- Boost customer satisfaction by better marching marketing activities with customer behaviour
- Better delivery of marketing can encourage repeat business
- May eventually be able to understand every single customer’s behaviour
47
Types of Business Models
1) Business to Business (B2B)
2) Business to Consumer (B2C)
3) Consumer to Consumer (C2C)
4) Government to Citizen (Public)
5) Not-For-Profit (NFPs / NGOs)
48
Differences between B2B and B2C
- Number and nature of Decision-Makers
- Balance of Promotional Mix elements
- Message Content
- Lead time for decisions
- Use of segmentation and research
- Complexity of budget allocation
49
Consumer Purchasing Behaviour
1) Routine Response - Toilet Paper
2) Limited Decision Making - Restaurant Choice
3) Extensive Decision Making - House Purchase
4) Impulse Buying - Chocolate Bar
50
B2B Purchasing Behaviour
1) Straight Rebuy
- Monthly Orders
- Often automatic
2) Modified Rebuy
- Adjustments to a Straight Rebuy
- Small number for approvals needed
3) New Task
- Full buying process necessary
51
Decision Making Unit
1) Initiator - Recognises Problem
2) Influencer - Provides Expertise
3) Decision Maker - Selects Choice
4) User - “Consumer”
5) Gatekeeper- Filters Information
52
Segmentation
The division of a market into different groups of customers with distinct needs and requirements for a product or service.
53
Segmentation Benefits
- Ensure Marketing mix elements are used appropriately for each target segment
- Leverage resources to maximise customer satisfaction more efficient
54
Segmentation Criteria
- Measurable
- Accessible
- Substantial
- Mutually Exclusive
- Homogenous in Response to Marketing Variables
55
Typical Consumer Segments
Geographic:
- Physical Location
Demographic:
- Ascribed Status
Psychographic:
- Personality
Behavioural:
- Lifestyle
56
Typical B2B Segments
- Industry Types
- Benefit Sought from a Product
- Purchase Potential
- Company Demographics
- Purchasing Process
- Situational Factors
- Operational Factors
- Personal Characteristics
57
Targeting
Targeting is the selection of the most attractive segments of a target market to become customers.
58
Targeting Attractiveness Factors
- Market Growth
- Segment Profitability
- Segment Size
- Competitive Intensity within Segment
- Cyclical Nature of the Industry
59
Positioning
The designing of an organisation’s offering and image so that they occupy a meaningful and distinct competitive position in a target customer’s mind.
60
PESTEL
The Macro Environment Factors:
```
Political
Economic
Social
Technological
Environmental
Legal
```
61
Micro Environment Factors
- Customers
- Competitors
- Intermediaries
- Suppliers
- Interest Groups
62
Porter’s Five Forces Model
Used to understand the intensity of competition in an environment:
1) Threat of New Entrants
2) Threat of Substitutes
3) Bargaining Power of Buyers
4) Bargaining Power of Suppliers
5) Rivalry Amongst Existing Competitors
63
Internal Environment Factors
- Resources
- Competencies
- Goals and Objectives
- Corporate Governance
- Risk Management
- Strengths and Weaknesses
64
Use of Internal Information Sources
Best when...
- Large organisation
- Data is available to in-house staff
- In-house staff understand the problem and audience
- Budget is very limited
- Confidentiality is critical
65
Use of External Information Sources
- Agencies have highly trained / experienced staff
- Objectivity to a problem
- Plausible deniability of research when dine through an agency
- Cost effective
66
Primary Data
Information that was previously unknown and which has been obtained directly by the researcher for a particular purpose.
67
Secondary Data
Information gathered for some previous purpose, different to the current research project.
68
Qualitative Data
- Unstructured Research Approach
- Interview / Focus Group
- Small Number of Carefully Selected Candidates
- Appropriate Sample is Essential
- Non-Quantifiable Insights
- Behaviour
- Motivation
- Insights
69
Quantitative Data
- Produces Information that can be Statistically Analysed
- Expressed Numerically
- Easier to Analyse than Qualitative Data
70
Primary Data Sources
2 Key types:
1) Observation
2) Surveys
71
Focus Group
- A group interview led by someone guiding discussion
| - Roughly 6 to 8 People
72
Panels
- Similar to a Focus Group but with repeated updates over a certain period of time
- Members don’t interact with each other
- Used for assessing change over time
- e.g. attitude changes towards something
73
Delphi Method
1) Individuals are interviewed
2) Resultsmtalked about in a group
3) Repeat
Helps mitigate “Group Think” phenomena
74
Real Time Data
- Very recent technological development
- Information displayed immediately after collection
- Allows insights and conclusions to be drawn very soon after data collection
- Must be careful not to be too reactive and keep in mind larger trends
75
Big Data
Refers to the mass volume, variety and complexity of information collection
76
Secondary Data Sources
Internal:
- Accounting Records
- Existing Research
- Marketing Database
External:
- Periodicals
- Government Publications
- Internet Publications
- Census Reports
77
Jury Technique
A “Focus a Group” of experts
78
Consumer Products
Durable Product:
- Any re-usable goods
Non-Durable Product:
- Any good that needs to be repurchased repeatedly.
- Fast Moving Consumer Goods (FMCGs)
79
Industrial Products
Raw Materials:
- An ingredient purchased to be turned into something else
Components:
- An existing product that is used as part of a final product
Supplies:
- Non-Durables
- Things an organisation needs to operate
- Stationary
- Software
Capital Equipment:
- Durables
- Buildings
- Machinery
80
Total Product Concept
The idea that a product is more than simply an object that satisfies a need
81
Product Classes
Core Product:
- The fundamental need fulfilment
- A transportation machine to get from point A to point B
Actual Product:
- An identifiably differentiated product
- Includes the design, packaging and specific features of the product
- A Ford Car
Extended / Augmented Product:
- The total provision of a product and the services that go along with it that exceeds the regular expectations for a product
- Includes after-sales service, guarantee, delivery, training, brand, returns policy, repairs
- Elements of an Extended / Actuated Product can become part of the Actual Product over time as consumer expectations change
- A Ford Car with a guarantee, extended warranty, delivery from the factory, free first MOT
82
Product Lifecycle
1) Development
2) Introduction
3) Growth
4) Maturity
5) Saturation
6) Decline
83
Product Breadth
The number of product lines a company offers
84
Product Depth
The number of variations available for a n individual product line
85
Boston Matrix
Matrix used to classify products based on market share and market growth:
1) 🌟 - High Share / High Growth
2) 🐄 - High Share / Low Growth
3) 🐶 - Low Share / Low Growth
4) ❓ - Low Share / High Growth
86
Pricing Influences (External)
Buyers Perceptions:
- Value for money
Competition:
- Intensity of competition
- Substitute availability
Sales Channels Expectations:
- Intermediaries payments
Environment Issues:
- Legal responsibilities
- Regulatory pressures
Elasticity if Demand:
- How elastic is demand?
87
Pricing Influences (Internal)
Organisational Objectives:
- What is the position being targeted?
Costs:
- Fundamentally affects the price regardless of objectives and strategy
Marketing Mix Variables:
- Direct Distribution Channel Costs
Pricing Objectives:
- Growth vs Profit
88
Standard Pricing Policies
General use pricing strategies for when an organisation is not a first entrant to a new market.
89
Psychological Pricing
A Standard Pricing Strategy.
- Placing the price just below a certain figure to make it feel like less than it is
- £9.99
90
Loss Leader
A Standard Pricing Strategy.
- Placing price very low, often losing money
- Used for rapidly growing a market or for attracting customers to other, more profitable, products
91
Promotional Pricing
A Standard Pricing Strategy.
- Making heavy and repetitive use of promotions in order to make prices seem artificially low when that is what the organisation expects to sell them for anyway
- DFS Summer Sale
92
Pricing Method
- Cost Oriented Pricing
- Mark Up / Cost Plus Pricing
- Absorption Costing (covers FC + VC)
- Cost Base / Marginal Costing (covers MC)
- Demand Oriented Pricing
- Competition Oriented Pricing
- Compete directly with competitor offerings
- Market Oriented Pricing
- Tends to be with Luxury Goods
93
Distribution Channels
A group of individuals and organisations that direct the flow of products from producers to customers
94
Marketing Intermediary
A middleman who links producers to other middlemen or to customers.
2 Types:
1) Merchants
- Buying / Selling agents
2) Functional Middlemen
- Add value by changing an input to an output
95
Functions of Intermediaries
1) Sorting Out
- Classifying different products into homogenous groups
2) Accumulation
- Developing a bank of stock to provide aggregate industry
3) Allocation
- Breaking down homogenous stock into smaller units
4) Assorting
- Combining products into collections that buyers want
96
Consumer Goods Distribution Channels
1) Manufacturer —> Customer
2) Manufacturer —> Retailer —> Customer
3) Manufacturer —> Wholesaler —> Retailer —> Customer
4) Manufacturer —> Agent / Broker —> Wholesaler —> Retailer —> Customer
97
Industrial Goods Distribution Channels
1) Manufacturer —> Customer
2) Manufacturer —> Distributor —> Customer
3) Manufacturer —> Agent —> Customer
4) Manufacturer —> Agent —> Distributor —> Customee
98
Promotional Cycle Model
⚡️Noise⚡️ ⚡️Noise⚡️
🏢 —Encoding—> Message —Decoding—> 👤 —> 🔁
Encoding:
How best to convey a message using a particular medium
Decoding:
How a receiver understands a particular message
Noise:
External influences that can confuse the encoding and decoding of a message’s meaning
99
DRIP Model
Promotional model developed by C. Fill
- Differentiate
- Remind
- Inform
- Persuade
100
Promotional Mix
- Sales Promotion
- Advertising
- Public Relations
- Direct Selling
- Personal Selling
- Sponsorship
- Digital Media
- Direct Response Advertising
101
5 Promotional Variables
1) Communicator if Message
2) Message Content
3) Audience of Message
4) Medium of Message
5) Audience Response
102
Features of Services
1) Intangible
- Not a physical object
2) Perishable
- Can’t be stored in advance of use
3) Inseparable
- Customers involved in production
- Centralised mass production very difficult
4) Heterogenous
- Lack of standardisation
- Difficult to control quality
103
Customer Value
The assessment of the product’s overall capacity to satisfy customer needs
