Chapter 10 Flashcards Preview

Business Management Unit 2 > Chapter 10 > Flashcards

Flashcards in Chapter 10 Deck (29)
Loading flashcards...

What is marketing

Marketing is a total system of interacting activities designed to plan, price, promote and distribute products to present to potential products


Define marketing

Marketing is 'the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives


How does marketing allow business to meet objectives

To translate the business objective into reality, a marketing plan must be prepared that sets out a series of action or strategies that can be used in order to achieve greater sales.
To achieve objectives, the marketing plan should be the focus of planning because
- it outlines strategies to be used to bring the buyer and seller together
- marketing is used to satisfy existing customer wants, which should lead to repeat sales
- it is the revenue- generating activity of any business


Marketing Plan

Is a document that lists activities aimed at achieving particular marketing outcomes in relation to a good or service. The plan provides a template for a future action aimed at reaching marketing objectives, such as establishing a customer base


Marketing Concept

The marketing concept is that a customers needs and wants are met while achieving the business's objectives


What are the principles of the marketing concept

The marketing is based on four principles. It must be:
1- a customer-orientated approach
2- supported by integrated marketing strategies
3- aimed at satisfying customers
4- integrated into the business plan so as to achieve the business objectives


Market research

Is the process of systemically collecting, recording and analysing information concerning a specific marketing problem


What are the steps of the market research process

1- determining information needs - problem is clearly and accurately stated to determine what needs to be measured and issues involved
2- collecting data from primary and secondary sources - plans are made to gather missing data. Information may be collected by mail, telephone, and personal surveys, as well as personal observation or from private data sources
3- analysing and interpreting data - facts by themselves do not always provide a solution to the marketing problem. They need to be analysed and interpreted to determine what they mean


Determining information needs

Information must be relevant to the situation or the problem.
Information is useful if it
- results in marketing strategies that meet the needs of the business's target market
- assists the business to achieve it's marketing objects
- may be used to increase sales and profit


Marketing Data

Are the information- usually expressed as facts and figures- relevant to the defined marketing problem


Collecting data : What are the two types of data?

Primary Data
Secondary Data


Primary Data

Are the facts and figures collected from original sources
Three main methods used to gather information
- survey - gather information by asking questions or interviewing people
- observation - recording behaviours of customer
- experimentation - gathering data by altering factors under controlled conditions to evaluate cause and effect.


Secondary Data

Refers to information that some other person or organisation has already collected
Two types of secondary information
Internal data - refers to information that has been collected from inside the business
External data - refers to published data from outside the business eg Australian Bureau of Statistics


Market segmentation

When the total market is divided into groups who share on or more common characteristics
Four dimensions are
Demographics - age, gender, occupation etc
Geographic- urban, surburban, regional etc
Psychographic - lifestyle, motives, personality
Behavioural - regular user, first time user, brand loyalty etc


Target market

Is a group of customers with Similiar characteristics who currently purchase the product or may do so in the future


Customer buying behaviour

Refers to the decisions and actions of consumers when they purchase goods and services for personal or household


Factors influencing customer behaviour

Psychological influences
Sociocultural influences
Economic influences
Government influences


Psychological factors

Are influences within an individual that affect his/her buying behaviour
- perception
-motives - reasons that individuals do something
- attitude - persons overall feeling about an object or activity
- personality - behaviours and characteristics that make up a person


Sociocultural Influences

Are forces exerted by other people that affect customer behaviour
- family and roles
- peer groups
- social class
- culture and subculture


Economic Influences

Have an impact on the consumers willingness and ability to spend. Eg during a boom and during a recession


Government Influences

Use a number of economic policy measures to influence the level of economic activity. These policies directly or indirectly influence consumers spending habits


Two features of a marketing plan

- They should be realistic, given the business' present situation
- They should be achievable within the business's resources and budget


Three most common marketing objectives

The marketing objectives should be closely aligned to the overall business objectives, but more customer orientated than the objectives for the entire business. They are also concerned with the products and markets. Three common marketing objectives include
- Increasing Market Share
- Expanding the product range - total range of products offered
- Maximising Customer Servicee


WHat should the market description include?

The main purpose of preparing a market description is that it determines a clear direction for the marketing efforts.A marketing description will include the following
1- Details of the target customers. Who? located? How much will the buy and from where? At what price will they buy the product? income?
2- Details of competitors -Who? Level of competition? Where? Product range, Price and Marketing Strategies? Strengths and Weaknesses?


The four elements of the Marketing Mix



The product element of the marketing mix

Product is a good or service that can be offered in an exchange for the purpose of satisfying a need or want
- Tangible and Intangible Products - eg tangible (food or drink) and intangible (efficient service, live music and pleasant atmosphere)
- Product Positioning - os the development of the product image compared to the image of existing products
-Product Branding - symbols and logos
- Packaging- graphic design for a product


The price element of the marketing mix

Many factors affect the price of a product ed- quantity, size of demand.
A price to high could mean lost sales, a price to low may make the customers think it is cheap and nasty.
Pricing Methods - Mark Up, Market (supply and demand, Competition Based


The place element of the marketing mix

Distribution Channels - way of getting product to customers. Four types of distribution channels:
1- Producer to customer
2- Producer to retailer to customer
3 - Producer to wholesaler to retailer to customer
4- Producer to agent to wholesaler to retailer to customer
Three types of intensity of market coverage
- Intensive Distribution - business wishes to saturate market with the product eg- coke
- Selective Distribution - using moderate proportion of all possible outlets eg- clothing
- Exclusive Distribution -only one retail outlet for a product within a region. Usually for exclusive, expensive products


The promotion element of the marketing mix

Promotion descibes the methods used by a business to inform, persuade and remind a target market about its products
Promotion attempts to
-attract, increase brand loyalty, encourage, provide information
Three Methods to promote
- Personal Selling
- Publicity and public relations
- Advertising