Marketing Flashcards
(22 cards)
Define Marketing
Identifying and satisfying customer wants and needs in a profitable way
3 aspects of customer needs
What they want
How much they are prepared to pay for
How do they want it
4 roles of marketing
Identifying customer needs
Satisfying customer needs
Maintain customer loyalty
Anticipate change in the market
7 ways that define a successful marketing department
Raise consumer awareness Increase revenue/profitability Increase/ maintain market share Maintain or improve image of business Target new market Enter domestic and international markets Develop and improve products
4 stages of economic cycle
Peak, recession, trough, recovery…..
What is growth, 4 ways
Business activity increase
sales and profit increase
consumer income and employment rate increase
Marketing increase
What is peak, 4 ways
Demand, sales and profit peak
Unemloyment rate is low and wage increase
Business compete fiercely
Business look at strategies to maintain or entend peak
What is recession, 4 ways
Slow down in business activity
Profit demand start to fall
Businesses stop investing and start cost cutting
Longer recession, more the depression
What is recovery, 3 ways
Increase in sales and output
Business start to employ mre
increases budget for marketing
4 changes marketing department need to anticipate
Consumer taste
Technology
Incomes
Demographics( population)
3 ways markets become more competitive
Globalisation of markets
Transportation improvements
E-commerce
4 ways businesses respond to changes in market
Maintain customer relationship
Keep improving products
Bring out new products
Keep costs low
Mass marketing, 2 good pts and 1 bad
Large number of sales
Large in terms of profit growth and economies of scales
BUT, always competitive
Niche marketing, 2 features
Specialised segment of a large market
Usually small businesses
Niche marketing 1 good pt and 2 bad
Offer good personal service
BUT, if larger businesse enter to compete
OR, people’s taste change
Define Market segmentation
Identifying different groups within a market and targeting different products/services to them
Other name for market segmentation
differentiated marketing
Geographic segmentation (2 features)
- Targeting products to different regions
- Identifying trends in region which may alter marketing strategy
Demographic segmentation( 2 features)
- Based on characteristics such as age, gender, religion, education, family size, income etc.
- Research may suggest there’s a certain need for a product among demographic
Psychographic Segementation( 2 features)
- Based on traits, beliefs, values, attitudes, interests, lifestyle
- Might be popular with Niche marketing
4 advantages of market segmentation
- Save unnecessary cost for products that no one need
- Identify gaps in market
- Small business who can’t compete can specialise in 1 segment
- Price discrimination tactics can be used to maximise revenue
5 disadvantages of market segmentation
- Expensive to produce specialised product
- Price to produce and store various products can be high
- Changes in segment alter purchasing habits
- Time and money is required on extensive marketing research
- High marketing price as various methods are adopted to different segments
