Marketing Flashcards
(38 cards)
Marketing is …
The Activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large
- Value
- Beneficial Exchange
- Broad view of ‘customer’
Types of Marketing (3)
- Business to Business
- Business selling to consumer e.g. Razor company
- Consumer to consumer e.g. Ebay
Undifferentiated Marketing
One Marketing Mix -> the entire market
Differentiated Marketing
Marketing Mix A -> Market Segment A (e.g city car)
Marketing Mix B -> Market Segment B (e.g. sports car)
Marketing Mix C -> Market Segment C (e.g. people carrier)
(Ford Car Example)
Theres different wants and needs for each segment. Different products for different people.
Concentrated Marketing
Marketing Mix A -> Market Segment A
This is normally for a niche market and don’t produce a lot. Expensive but unique e.g. Ferrari
Micromarketing/Individualised Marketing
Marketing Mix A -> Customer A
Marketing Mix B -> Customer B
Marketing Mix C -> Customer C
Principal of treating each customer as an individual. One to one marketing.
So what is the marketing process?
- Understanding what your customers needs and wants (based on research and then analysing it)
- Giving it to them in a way they want it (think about customers and what they want, but also think about competitors, translate it to something customers will see value in over competitors)
- Telling them in a way and place that they will listen and act (tell people what you are offering.
Understanding your customers needs, wants and desires
Needs- Differences between a person’s actual state and his or her ideal state; they provide the basic motivation to make a purchase (20% of buying decisions are based on logic)
Wants- Specific goods, services, experiences, or other entities that are desirable in light of a person’s experiences, culture, and personality (80% of buying decisions are based on emotions)
e.g. a cheap ford could get you to work, but a lot of people drive BMWs as its what they want
Marketing Mix 4P’s
- Product (e.g. Brand name, variety, quantity, features, packaging, sizes, services, warranties, returns)
- Price (e.g. Discounts, allowances, payment period)
- Place (e.g. location, coverage, distribution channels, inventory, transport)
- Promotion (e.g. sales promotions, advertising, sales force, direct marketing)
7P’s of Marketing
-Product (product)
-Price (p)
-Place (p)
-Promotion (p)
-People (service)
-Process (s)
-Physical (s)
(-Evidence)
Tangible dominant (product from 4P’s)
Tangible- can touch
therefore tangible dominant means goods e.g. salt, shoes
Intangible dominant (product from 4P’s)
Intangible - can’t touch
therefore intangible dominant means services e.g. eduction, insurance.
The product lifecycle (product from 4P’s)
e.g. dvds
Videotapes -> DVDS -> online streaming
Everything moves on and develops so companies need to think ahead to keep up to date.
Strategic considerations (understanding market and pricing important) (price from 4P’s)
(Important)
- Customer Perceptions e.g. Gucci was going to sell a bag for 500, but asked people how much they thought it was worth and they said 1200
- Competition
- Costs
(Less Important)
- Marketing objectives
- Government regulations
- Market demand
Place (from 4P’s)
Need to decide where to sell product or offer
- Brick and Mortar e.g. Store
- Website
- Mobile - call centre and web (AI means you chat to robot online normally when you ask questions)
Place: Role of intermediaries (4P’s)
- Matching buyers and sellers
- Providing market information
- Providing promotional and sales support
- Gathering assortments of goods
- Assuming risks
- Providing financing
- Completing product solutions
- Facilitating transactions and supporting customers
- Transporting and storing products
Promtoion (4P’s)
- Loads of ads every where yo go. Though ad is v lucky to get 1% engagement.
- companies need to intergrate their customer communication efforts, to maximise efficiency and consistency
- new social model of customer communication over the convential promotion model
- content marketing e.g. coke putting little clips of coke in films
Content marketing has been proven to be more
effective then convential marketing
The Importance of Market Research: 5 Reasons
- Market research centers your business on your consumers
- It keeps the business focused on what will make it successful
- It allows the business to pursue the most lucrative growth strategy
- It keeps you relevant and future focused
- Enables robust decision-making; no assumptions
Market research (def)
the systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company
Market Research Process
- Define the problem and research objectives
- Develop the research plan
- Collect the information
- Analyse the information
- Present the findings
- Make the decision
Example of defining the problem in market research
Airlines had long check in time
So airlines researched this, and defined the problem
Brought in Priority check in, that yo have to pay more for, for shorter queques
Developing research plan
- data sources (primary or secondary)
- research approach (qualitative or quantitative)
- Research instruments (survey, interviews etc)
- sampling plan (random, representative etc)
- contact methods (phone, face to face, etc)
Primary Research
- Primary research consists of a collection of original primary data collected by the researcher. It is often undertaken after the researcher has gained some insight into the issue by reviewing secondary research
- It can be accomplished through various methods, including questionnaires and telephone interviews in market research, or experiments and direct observations
