Principles of Marketing Flashcards
(94 cards)
1
Q
What is DMU?
A
Decision-Making Unit
2
Q
How can businesses be categorised?
A
By their orientation
3
Q
What are the four orientations?
A
- Production Orientation
- Product Orientation
- Sales Orientation
- Market Orientation
4
Q
How would you define external marketing?
A
It is the customer-facing element of the marketing process
5
Q
How would you define internal marketing?
A
This deals with communication between the organisation and its internal stakeholders, including its employees
6
Q
What are the three key things internal marketing should do?
A
- Facilitate communication
- Engage employees
- Create a common view of the organisation
7
Q
Who does the buyer represent?
A
Consumers
8
Q
What is a customer?
A
A consumer from the seller’s perspective
9
Q
What is the consumer?
A
End-user
10
Q
What do consumers buy?
A
The BENEFITS of products and services
11
Q
What is an important P when it comes customers buying something?
A
Price
12
Q
What does DMP stand for?
A
Buying Decision-Making Process
13
Q
What are the five steps in DMP?
A
- Recognising needs
- Information search
- Valuation of alternatives
- The purchase decision
- Post-purchase evaluation
14
Q
Who does DMP refer to?
A
The customer
15
Q
Who does DMU refer to?
A
Outside influences, such as buyer, stakeholder, influencer…
16
Q
What are the three main influences on a customer’s behaviour?
A
Personal, social, cultural values (ethical as well!)
17
Q
What is Business Buyer Behaviour?
A
Business Buyer Behaviour is the concept of understanding a business’ needs and making purchases where appropriate, increasing the company’s profits.
18
Q
What factors influence Business Buyer Behaviour?
A
- Environmental
- Organisational
- Group
- Individual
- External factors like supplier of choice
19
Q
What is Consumer Buyer Behaviour?
A
It is the study of ways of buying and disposing of the consumer to help satisfy their needs/wants
20
Q
How is Business Buyer Behaviour different Consumer Buyer Behaviour?
A
- Behaviour is more rational than emotional
- Purchase size and value often greater
- More defined and formal DMUs
- Relationships important between organisation and buyer
- Different communication methods
21
Q
What is the PESTEL model?
A
It is a tool used to identify the macro (external) forces facing an organisation
22
Q
What does PESTEL stand for?
A
P - Political
E - Economic
S - Social
T - Technological
E - Environmental
L - Legal
23
Q
What do political factors determine?
A
The extent to which government and governmental policy may impact an organisation or specific industry. Examples include: trade, fiscal or taxation policies
24
Q
What do economic factors determine?
A
An economic factor has a direct impact on the economy and its performance, in turn, possibly impacting the organisation and profitability. Examples include recession, employment rates and inflation.
25
What do social factors determine?
Emerging trends and the changing social environment. This helps a marketer further understand consumer needs and wants in social settings. Examples include changing family dynamics, cultural trends and changes in attitude and lifestyle.
26
What do technological factors determine?
Technological factors determine the rate of innovation and development and how that could affect a market/industry. Examples include changes in digital technology and research and development
27
What do environmental factors determine?
This determines the business' sustainability, such as CSR and ESG. This element is becoming increasingly important to consumers
28
What do legal factors determine?
How organisations function. Companies must understand what is legal and allowed within the geographies they operate in. They must also be aware of any change in legislation an the impact this may have on business operations.
29
What processes monitor the marketing environment?
1. Collecting secondary data
2. Market scanning
30
Why is monitoring the marketing environment important?
It helps make the basis for making decisions, provides knowledge of situations and changes, aids in planning and helps assess strengths, weaknesses, opportunities and threats.
31
List reasons for changing customer needs
1. Technological advances
2. Ageing population
3. Movement of people
4. Single living
5. Climate change
32
What is a macro environment?
The set of external factors and forces, not controlled by the company, that influence its development. (PESTEL)
33
What is the micro environment?
The micro environment are internal factors that the business can control and influence to a degree
34
Who are the key players in the micro enviroment?
1. Customers
2. Competitors
3. Suppliers
4. Distributors
5. Intermidiaries
6. Market
35
Who are customers in the micro enviroment?
The ones who pays to acquire the product
36
Who is the organisation in a micro enviroment?
This is the owners and employers
37
Who are intermediaries in a micro enviroment?
The ones who act as bridge between the manufacturer and the marketer
38
What is an internal environment?
These are the elements of the organisation that the company can fully control
39
What analysis is commonly used in both macro and micro environments?
SWOT
S - Strengths
W - Weaknesses
O - Opportunities
T - Threats
40
In a SWOT analysis, which are of internal origin?
Strengths and weaknesses (of the organisation)
41
In a SWOT analysis, which are of external origin?
Opportunities and threats (of the environment)
42
What are the main factors to consider when analysing a business' internal environment?
1. Resources
2. Employee skills and mix
3. Capabilities and core competencies
4. Management values and corporate culture
5. Stakeholder goals
6. Current strategy and success
43
Define quantitative data
Quantitative data is measurable and is all about numbers. This is usually done to get stats on a market and is a large collection - Closed questions
44
Give an example of quantitative data collection
Surveys, questionnaires, polling methods
45
What is qualitative data?
Qualitative data are open-ended questions that rely heavily on innovative research methods. These are usually very small samples and analysis is subjective.
46
What are some qualitative research methods?
Focus groups, interviews.
47
What will closed questions produce?
Quantitative data
48
What will open questions produce?
Qualitative data
49
What are the four Ps?
Product, Price, Place and Promotion
50
Define Product
A bundle of benefits offered to customers intended to meet their needs
51
Define Price
The total of what the business expects in return from customers e.g. reviews, revenue
52
Define Place
The location where the exchange takes place e.g. online, in store
53
Define Promotion
How the total offer is communicated to the customer e.g. through email
54
What are the 3 other Ps?
People, Process, Physical evidence
55
Define People
The 'front line' staff who deliver the service benefits to the customer
56
Define Process
System by which the product benefits are delivered
57
Define Physical evidence
The tangible aspects of the service delivery
58
What are the 7 Ps?
Product, Price, Place, Promotion, People, Process and Physical Evidence
59
Define durable
'able to be kept; not perishable'
60
Define consumable
'a consumable commodity (intended to used up and replaced' eg bread
61
What does FMCG stand for?
Fast-moving consumer goods
62
Define FMCG
'frequently purchased products that usually sell in retail outlets and which, literally, sell quickly because they are highly consumable.'
63
Define product portfolio
A collection of products/services offered by the same company
64
Define brand
Unique identity/personality, product belongs to one producer
65
Why is Price unique in the marketing mix?
It's the only element that generates income
66
What do Price decisions affect?
1. Demand
2. Profit
3. Volume
4. Market share
5. Brand image
6. Positioning
67
What internal factors affect Price?
Costs and objectives
68
What external factors affect Price?
Competition and customer expectations
69
What is direct distrubtion?
The Product goes straight from the Manufacturer to the Consumer
70
What is indirect distribution?
The Product goes from the Manufacturer through the Intermediary and finally to the Consumer
71
What is intensive distribution?
This is a marketing strategy that involves making a company's products available to customers in as many places as possible
72
What is selective distribution?
This is a marketing strategy that focuses on selling certain types of products via a select network of retailers, resellers or wholesalers
73
What is exclusive distribution?
It is a level of product availability that limits the choice of outlets that customers can use to find a brand or product. - EXCLUSIVITY
74
Give three examples of channels of distribution
Direct sales, franchises, under licence, intermediaries, retail, wholesale, telephone, internet, mail order
75
What do Promotion tools include?
The ability to communicate with customers about a product/service
76
Define the Promotional Mix
A combination of marketing methods including advertising, sales, public relations and direct marketing to achieve a specific marketing goal
77
Give three Promotional Mix methods
Advertising, sales promotion, public relations, direct marketing and personal selling
78
Define white goods
Usually utility and kitchen goods, such as washing machines. Their name is taken from their white metallic casing covers
79
Define brown goods
A term - now largely outdated - to describe those domestic appliances that used to be encased in brown veneer
80
Define orange goods
The description of a type of consumer goods that the customer will replace regularly, such as clothes
81
Define red goods
Those food products that are consumed quickly, replaced frequently and have a low profit margin
82
Define People
The staff who have direct interaction with the customers
83
Define Process
The activities that occur to provide the service offered
84
Define Physical Evidence
The tangible outcome or clues of the service
85
What is intangibility?
These are services that are not tangible before purchase
86
What is inseparability?
These services cannot be sold or stored later, they cannot be separated from the provider
87
What is perishability?
These are services that cannot be stored, so a better management of demand is necessary
88
What is heterogeneity?
It is when the quality of the service is dependent on the person providing it (therefore it will vary)
89
What is non-ownership?
It is when the customer cannot own the service so there is no second hand value
90
What are the key features of a FMCG?
1. Fast selling
2. Competitive market
3. Regularly purchased
4. Regularly inexpensive
5. Non-durable
91
In business buying who controls the flow of information to decision-makers?
The gatekeeper
92
When making buying decisions, compared to the consumer, business buyers are likely to:
Be more qualified
93
Why might a marketer choose to use secondary research?
Because they have no budget
94
Which of the following elements of the marketing mix is the most important in FMCG marketing?
Product
