Marketing Flashcards
What are the 5 steps in the marketing process?
- Understand the marketplace and customer needs and wants
- Design a customer driven marketing strategy
- Construct an integrated marketing program that delivers superior value
- Build profitable relationships and create customer delight
- Capture value from customers to create profits and customer equity
Marketing definition
A process by which companies create value for customers and build strong customer relationships to capture value from customers in return.
Production concept
The idea that consumers will favour products that are highly available or affordable
Product concept
The idea that consumers will favour products that offer the most quality, performance, and features. Organisations should therefore devote energy to making continuous product improvements
Selling concept
The idea that consumers will not but enough of the firms products unless it undertakes a large scale selling and promotion effort
Marketing concept
The idea that achieving organisational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do
Societal marketing concept
The idea that a company should make good marketing decisions by considering consumers wants, the company’s requirements, consumers long term interests and society’s long-run interests
What are the 7 Ps of the marketing mix
Product Price Place Promotion People Process Physical evidence
What is cost-based pricing
Involves setting up prices based on the costs for producing,distributing, and selling the product plus a fair rate of return for its effort and risk
Pros and cons of cost based pricing
Pros - sellers are certain about costs - prices are similar in industry and price competition is minimised - consumers feel it is fair Cons -ignores demand and competitor pricing
What is value based pricing
Uses the buyers perception of value, not the sellers costs, as the key to pricing. Price is considered before the marketing program is set.
What are the 5 elements of the promotion mix
Advertising Public relations (publicity) Sales promotion Direct marketing Personal selling
What are the benefits of the promotion mix?
Consumers are better informed
More communication
Less mass marketing
Changing communications technology (DATA driven)
Steps in developing effective marketing communication
Identify the target audience (market) Determine the communication objectives Design the message Choose the media (explain adv & dis) Select the message source
Define brand and brand equity
Name, term, sign or design that identifies the maker or seller of a product or service
Brand equity is the differential effect that the brand name has on the customers response to the product and its marketing
