topic 2 marketing Flashcards

Question

attitudes as psych infl affecting consumer choice

Answer 1

one's overall feeling abt object/activity * customer attitudes to bus & its products influence success/failure of bus' marketing strat (if neg , must change)

Answer 2

personality: collection of behaviours & charactersitcs that make up the individual self-image (within personality): how one views themself, reinforce through purchases * exploit one's desire to express identity through purchases by highlighting image of products, use celebrities to endorse product to be influential, important

Answer 3

changes in ind's behaviour caused by info and experiences * customers learn abt new products 1st time they have direct experience of product (eg. taste 1st time) or through indirect experiences (see ads of tasting) * much of customer behaviour is learned * successful marketing strats facilitate customer learning that encourage BRAND LOYALTY: when favourable attitudes towards brand result in repeated sales over time

Answer 4

forces exerted by other ppl (& groups) affecting one's buying behaviour * social class * culture & subculture * family & roles * reference group

Answer 5

aka socioeco status * edu * occupation * income * influence type, quality, quantity products bought

Answer 6

culture: learned values, beliefs, behaviours shared by society * determines what ppl wear, eat, living space eg. family background/occupation

Answer 7

* most women buy health products, food, laundr supplies * teens msot influence on clothes, shoes, books * pester power ability children to make parents buy something repetitively

Answer 8

group of ppl one closely identifies, adopt attitudes, values, beliefs * change to match rest of group's beliefs & attidues

Answer 9

influence bus capacity to compete & customers willingness & ability to spend * fluctuating eco activity boom & recession BOOM: * high emp & rising incomes * bus & ind optimistic abt future * bus ^ prod lines & market share (intensify promotional efforts) * ^ spend bc secure abt jobs & income source RECESSION * high lvl u/e, incomes fall * customers pessimistic abt future, low lvl spending * price conscious customers, lookg for value, functional and long lasting products * marketing plans need to stress value and usefulness of product, concentrate on MAINTAINING existing market share as survival main goal

Answer 10

influence in/directly * ^/cut gvt spending influence eco activity lvl --> bus activity & consumer spending * tax on products can discourage purchase/use * subsidies (grants/refunds from gvt encourage ppl to purchase products) * laws & regulations can discourage spending on some g&s

Answer 11

AUS Consumer Law intro 2011 (National) * to have a set of rules for all AUS bus regardless size/where operate * Comp & Consumer act 2010 (cwlth) * must be familiar with laws regulating marketing activities * must understand how applies to them, update w/ changes & ensure compliance, change marketing practices (ad promotions, product packaging)

Answer 12

ACL 2011 introduced applies to all aus consumers & bus * gives consumers same rights and protections everywhere in AUS * replaced several national, state & territory laws for consumer rights & bus obligations when selling g&s w/ single national set of rules * up to $50 mill for companies, $2.5mill for inds

Answer 13

1. protect consumers against undesirable practices * misrepresenting product contents * misleading/deceptive advertising 2. regulate trade practices restricting competition * ensure no. bus operate in each market to encourage comp *enforced & administered by ACCC, every state & territory's consumer agency, ASIC (for financial services)

Answer 14

* if breach Act, ACCC or other state consumer agency can initiate crimina proceedings against/sue bus/ind involved * largest fines for unconscionable conduct (conduct so harsh/unethical that against good conscience) * legal fees, fines, damages payouts & harm bus reputation (high costs) * over $1.1mill for companies $220k for inds if breach CCA

Answer 15

* illegal, direct/implied representation unture/false bait & switch advertising * advertise products at heavily discounted prices to attract customers but direct to similar higher price alterativecs bc advertised products unavailable * bus must ensure reasonable stocks of heavily ad items & if dont, ads must specify only limited stock availalbe dishonest advertising * ads cant use deceptive words/claim product has quality it doesnt * advertised price reductions, special offers, free-gift must be genuine (price must be discount to regular, special offer only available limited time, free gift available & cant be included with product) maybe: greenwashing * bus exaggerate/make false claims to persuade custoemrs that their products & PPs more sustainable/enviro friendly than are * hurts bus genuinely investing more sustainable practices & incurring costs --> comp disadv relative to false claims & consumers increasingly concerned abt sustainability & want account enviro impact of their purchases

Answer 16

charging customeers diff prices for same products in diff markets (eg. city vs country prices)/charging diff custoemrs diff prices (electricty for dom & bus users) * not illegal unless misuse market power that substantially reduces comp dunno if need: * can charge higher price due to higher cost delivering g&s to some locations/customers if diff price reasonable * offer discounts based on status (student) * charge diff price dependign on lvl service (low quality vs high & additional service)

Answer 17

any time purchase made, legal contract entered. law guarantees consumers protections even if havent mentioned/written into contract * offers consumers legal protection if products not reasonable sztandards/suitablef or intended use * use CONSUMER GUARANTEES: set of rights & remedies for consumers for defective g&s written into law * acceptable quality (most imp guarntee): product fit for purpose when sold, acceptable appearance, defect-free, safe, durable * goods reflect price charged & descriptions * match demonstration model/sample provided & repair facilities for reasonable time after purchase (unless consumer told otherwise) * services provded w acceptable care & skill, fit for purpose, delivered within reasonable time * consumers entitled to claim remedy from retailers (refund, repair, replace) if good purchased doesnt meet 1/+ consumer guarantees * retailers cant refuse to help by referring to manuf/importer * consumers entitled to claim remedy from supplier if services provided dont meet any consumer guarantees * also compensation for damages & loss

Answer 18

promise made by bus to correct defects in g/s they deliver (to repair/replace faulty products) [legally required] * since reassure customers that bus confident in product quality & will repair/replace faulty items, some bus offer mroe generous than legally obligated as marketing tool, * eg. offer longer warranties than competitors --> customers think superior quality * required by law to refund if products faulty, dont match descriptions/samples, fail to do what supposed to (but cant if customer changes their mind)

Answer 19

ethical behaviour: conduct beyond legal requirements ethical marketing not just acting socially responsible but impact success as unethical (dishonest) strats drive customers away even if persuade sales * truth * accuracy & good taste in advertising * products that may damage health * engaging in fair comp * sugging

Answer 20

1. creation of needs (materialism) [important] * materialism: desire to constantly acquire possessions * argue that big bus use powerful product promotion strats eg. ads to manipulate customers to buy whatever wanna selll 2. stereotype images of females & males * groups portrayed in ads not always represent reality * gender roles, racial stereotypes, children 3. product placement [important] * including ads in entertainment (eg. put products in TV shows) subtly reach ad-weary customers * can reach ad-weary consumers, concealed nature blurs entertainment and ads * AI tech --> virtual product placement where producers charge advertisers to insert products in scenes/change brand logos after production 4. invasion of privacy * consumers believe bus practices breach privacy act cwlth & consumers unaware that data collected on them to target w/ ads * track search history & online behaviour of web users, monitor buying habits of loyalty program members, facial recog tech in stores (argue to prevent theft)

Answer 21

paid, non personal message communicated through a mass medium

Answer 22

* false, misleading ads unethical & illegal * bus must ensure ads truthful & doesnt mislead consumers but higher sales revenue & diff enforcing ad laws bc ACCC cant scrutinise thousands of ads unless formal complaints made * ACCC responsible for administering laws for ads (small bus should prosper for g&s w/o powerful comp gaining unfair adv from dishonest representation, consumers right to accurate truthful info from bus abt purchase) * eg. 'special' interpreted many ways ambiguous, * consumers find out feel cheated stop buying, complain to gvt agencies, bad publicity long term damage bus reputation

Answer 23

1. untruths due to concealed facts * consumers aware ads arent believable but unethical practice of concealing facts purposely omitted from ad severly harm trust customers for bus (eg. coke harm teeth but cant say it doesnt rot your teeth) 2. exaggerated claims * **puffery!** promotional statements cant be proved (eg. superior to antoehr product) * acceptable as long as reasonable person wouldnt be deceieved eg. 'best coffee' 3. vague statements * deliberate misleading/ambiguous language allow marketers deny intention to mislead/deceive eg. 'HELPS fight against'

Answer 24

* highly subjective, offend viewers and complaints * ads targeting children, mass media sexualisation of children widespread publicity * premature sexualisation ^ depression, self esteem, identity disorders, premature sexual activity * fast food ads for children creates pester power, undermine efforts parents and schools to encourage healthy habits * children vulnmerable consumers, reduced capacity to understand commercial, persuasive intent behind ads * 'self regulation!' system where industry controls its own activities rather than policied bygvt (consumer thinks ad breaches code complain to AD Standards Bureau) which policies ethical standards but lacks authority to enforce (only request ad removed) & marketers can ignore guidelines (inadequate)

Answer 25

* products can daamge health if not used for purpose intended (eg cig) * consumer products must be safe, meet consumer guarantees under ACL * cant sell banned products, comply with standards before offered for sale * INTERNET ad products & largely unregulated bc few restrictions (eg. junk food ads to children)

Answer 26

ACCC fed gvt agency responsible for promoting comp & fair trade to benefit consumers, bus & community * intense comp in modern market tempts bus to exploit consumers!, unfair marketing that ignores consumer rights ( manipulate, mislead ads) requires fair comp 1. cartel conduct * bus act together instead of competing against each other eg. agree to fix, control, maintain prices 2. misuse market power * big bus w/ substantial control in market use power to damage comp/prevent bus entering market anti-competitive agreements: contracts/arrangements containing provisions that substantially lessen comp in market

Answer 27

if go beyond doing right thing eg. CSR, customers seek out & remain loyal to bus that adopt ethical marketing practices & avoid those acting unethically * positive publicity, favouralbe image w/ consumers * improve staff morale & reduces turnover, make more attractive to potential investors who avoid poor reputation

Answer 28

selling under the guise of a survey * sales technique disguised as market research * pretend to research into product, not to find customer attitudes abt it but encourage ppl to order product * legal but invasion of privacy, deception * LT negative consequences for market research * consumers supicious of survey as sugging and dont participate in surveys is it legitimate? (NOT IN GEORGEIOU) 1. are they selling anything 2. will participation end up in being contacted, sold product 3. will name, personal info provided to anyonw who'll contact and sell something

Answer 29

* PROTECt consumers & businesses (from otehrs) equal conditions by reducing power imbalances betw bus & consumer, large bus & small bus * encourage bus do right thing * ^ consumer confidence & trust in bus --> more spending on g&s (good for eco) * promtoe comp & fair trade --> benefit consumers, bus, community *if not, customers boycott products, negative publicity, less appealing to stakeholders

Answer 30

Situational Analysis Market research Establishing marketing objectives Identifying target markets Developing marketing strats Implementation, monitoring, controlling 1. realistic siutational analysis 2. achievable with bus resources & budgets

Answer 31

* undertake based on market research, management needs precise understanding of bus current position, where heading * up to date info that impacts bus --> analyse internal & ext factors affecting bus 1. SWOT analysis 2. Product life cycle 3. market analysis 4. competitor analysis

Answer 32

identification & analysis of internal strengths & weaknesses of bus & opp & threats from external enviro * constantly monitor changes in ext enviro, look for any opp to exploit, threats to avoid * internal forces from inside org, largely w/n control of bus, unique for each bus - by analysing, assess strengths & weaknesses * give bus position compared with comp, modify marketing plan to reflect info (conduct regularly) * when finished assess profuct's position on PLC STRENGTH (internal) * good at, popular product, loyal customers, financial position, skilled motivasted emps?? WEAKNESS (internal) * competent employees, past failure, upgraded facilities to pace w/ competitors OPPS (external) * new tech, eco activity, IRs, merge/acquire to expand, new markets possible??? THREATS (external) * tmarket trends, new comp, current comp on market share??

Answer 33

stages product passes through (intro, growth, maturity, decline) * after SWOT, assess product's position on PLC bc diff marketing strats at diff stages * bus must launch, modify, delete products responding to changes in PLC otherwise decline sales & profits * each stage of PLC need diff marketing strat

Answer 34

bus tries to increase consumer awareness & build market share for new product * product: brand & reliability msut be established * price: lower than comp * promotion: directed to early buyers & communication to educate potential customers abt merits of product * place: selective distribution (product sold by few retailers) so customers gradually accept it

Answer 35

established & growing sales --> strat to pursue branad acceptance & market share * product: quality improved, support services maybe added * price: rise to similar lvl to comp as ^ demand & market share * promotion: expand efforts bc seeks wider audience * place: increase distribution channels as product becomes more popular

Answer 36

growth slows, sales plateau as market becomes saturated w/ new products/comp force change strate * product: features & packaging try to differentiate product from competitors * price: adjusted downards to hold off competitors & maintian market share * promotion: suggest product is still best * place: incentives offered to retailers to stock product & encourage preference over rival products

Answer 37

sales being declining (new & improved products into market, changing taste, new tech, demand enviro friendly etc) new marketing strat to phase product out * product: maintained w/ some improvements/sold off to another bus * price reduced to sell remaining stock * promotion discontinued to save costs as minimal new revenue generated * place: reduced distribution channels, product offered to loyal segment of market only (maybe)

Answer 38

* management must be aware of current state of maket/industry & likely changes/trends in bus enviro eg. * customers: market size & potential growth areas (expand into new geographical areas/appeal to diff groups within market), needs & wants, income lvls, distribution channels (if opp to sell online, which stores product likely sell in) * eco enviro: inflation, IRs, ERs impact consumer spending habits & financial resources available to implement marketing plan * political & regulatory enviro: gvt poliesi impact consumer spending habits in/directly --> bus marketing * tech: adv allow bus improve & adopt new cost efficient methods --> understand tech to stay comp & gain comp adv

Answer 39

managmenet must analyse current & potential nature & capasbilites of bus' competitors to adequately prepare for comp * identify competitors (who provides same g/s to same customer base, indirect, potential future) * assess competitors: examine goals, strats, resources & compare * predict future competitor initiatives: potential activities to prepare comp

Answer 40

collection, analysis of info to identify what custemrs want & make marketing decisions based on wants * marketing strats perform best when based on accurate, up to date, relevant info * esp buying behaviour of existing & potential customers stronger bus position * main purpose minimising risk of market failure by collecting and assessing info abt customer needs & wants for responsive marketing plan\ * identify & outline marketing opps and problems, evaluate after implemtation of marketing plan * whether worht launching/promoting product at al

Answer 41

* info must be relevant to situation/problem * identify bus target market objective to obtain accurate info 1. determine info needs * problem clearly, accurately states to determine what needs to measure & issues involved 2. data collection * researchers know facts needed & those already available. * plans to gather missing data * info collected by telephone, online surveys, personal observation 3. data analysis & interpretation * analyse facts & interpret to determine what mean

Answer 42

* info collected must be relevant to issue/problem investigated by constantly ask questions - results in marketing strats meet needs of bus target market - assists bus to achieve marketing obj - can use to increase sales & profits * treat info in same way as other resources w/n bus, weight costs collecting info against benefits

Answer 43

marketing data is info relevant to marketing problem (usually facts & figures) * use primary & secondary

Answer 44

facts & figures collected by researcher/s for market problem * collected by bus time consuming & expensive, so many outsource * directed at solving marketing problem, what customer thinking 1. surveys * gather data by asking/interviewing ppl * personal interviews (face to face in public), focus groups (small groups meet w/ researchers), electronic (phone, internet), questionnaires (written questions) * gathers 1st hand info of customer opinions * but more diff bc respondent rates declining 2. observation * recording behaviour of customers via personal observations (customer) or electronic observation (cash register) * tech allows bus easily access data on consumer spending habits through loyalty program/custoemr database * highly accurate but only WHAT happens not WHY * ethical issues privacy 3.experiments * gather data by measuring & recording outcome achieved by using g/s under tightly controlled onciditions * eg. taste tests

Answer 45

info already collectd for another purpose eg. census data, HH expenditure surveys from gvt * obtain from within bus (internally) or other pppl/org (ext) * readily avaialble, relatively cheap > primary but not as specific to the research purpose 1. internal data * customer feedbac (past), sales, budgets , annual reports 2. external data * ABS census data, HH expenditure surveys, reports from competitors, internet

Answer 46

focusing on data that represents avg, typical/deviations from patterns * raw data needs analysis to have value * analysis & interpretation 1st step, display info in table * based on manager's judgement, experience, involve many ppl in participation to gain wider perspective avoid personal bias

Answer 47

realistic, measurable goals to be achieved through marketing plan * most important in marketing planning process, * need to closely align to bus goals, more customer oriented than goals, products, markets 1. ^ market share 2. expanding product range 3. maximising customer service can be measured, should include specific targets '^ MS 10% w/n 12 months'

Answer 48

bus share of total industry sales for product * develop extensive prod range sometimes use diff brand names * small market gains translate to largep profits

Answer 49

total range of products offered by bus * expand product mix, increase profits LT * customer tastes & preferences change over time, demand for product can decrease * must understand customers needs, develop ideal product range & each item should satisfy needs of diff target markets

Answer 50

respond to needs & problems of customer * improve customer satisfaction, establish sound customer base for repeat purchases strats: * ask customers what they want * train employees & reward for customer service * anticipate market trends by conducting market research * finding what competitors offering, reviewing product mix * establish, maintain LT relationships w/ customers * encourage employees to focus on customer needs (customer oriented) not sales oriented

Answer 51

group of present & potential customers bus wants to sell product * customers w/n target market share similar characteristics eg. age, income, lifestyle, location, spending patterns primary: market segment most marketing resources directed * generate most revenue * loyal customers making repeat purchases secondary: smaller, less important market segment

Answer 52

to direct marketing strats to group of customers to better satisfy wants & needs of targeted group, able to: * use makreting resources more efficiently, marketing campaigns more cost effective & time efficient * make promotion more relevant to customer's needs, likely noticed * understand consumer buying behaviour of target market * collect data effectively, compare w/ target market over time * refine marketing strats to influence customer choice choose 1. mass marketing approach, 2. market segmentation approach, 3. niche marketing approach when selecting target market

Answer 53

total market subdivided into groups of people who share 1/+ common characteristics * selects segment to become target market & design marketing plan to meet needs of relatively uniform group * increase sales, market share, profits by understanding & responding to desires of diff target customers

Answer 54

narrowly selected target market segment aka micromarket * customer in these markets often neglected by large bus, rarely profitable to alter marketing mix to cater for very small groups

Answer 55

combo of product, price, promotion, place/distribution * after situational analysis, conducting market research, est marketing obj, identify & select target market * use 4 Ps to reach target market, and control other resources (info, finance, emp) to achieve marketing objectives

Answer 56

actions to achieve bus marketing obj through marketing mix

Answer 57

where product positioned/stage in PLC

Answer 58

* what product * quality * packaging, labelling * design * brand name * guarantee * intangible benefits for customers to buy (prestige, satisfaction)

Answer 59

select amt money customer prepared to offer in exchange for product * set ABOVE BELOW, EQUAL to comp prices * consider prod costs, lvl consumer demand * METHOD to decide prices

Answer 60

methods to inform, persuade, remind customers abt products * advertisements * personal selling * relationship marketing * sales promotion * publicity * public relations tech changes (ICT) deliver msg to target market

Answer 61

ways to get product to customers (channels of distribution) * no. intermediaries eg. wholesaler, retailer * no. determien hwo widely product distributed * keep supply restricted to few specialised outlets (expensive products) * as wide as possible (retail stores, supermarkets, cafes, fast food outlets)

Answer 62

putting marketing strats into operation * daily, weekly, monthly decision to ensure plan effective * HOW, WHERE, WHEN done * difficult as unforeseen situations can arise

Answer 63

checking & observing progress of marketing plan * gather info & report on important changes, proble,s opp arise * to monitor which types marketing strats for best results, ask customers how they found out abt business

Answer 64

comapring planned against actual performance, taking corrective action to ensure objectives achieved 1. establish KPI, a forecast lvl of perf against actual can be compared eg. ^ monthly sales 5% 2. compare/evaluate actual perf against the KPI using budgets, sales, statistics, costs w/ results --> effectiveness

Answer 65

bus predictions abt future detailing costs & revenues for each strat and compare with anticipated expenditure (Costs) to allocate marketing resources using cost-benefit analysis * w/o analysing forecast, gut feelings inappropriate for comp enviro * analyse projected costs & revenues can forecast profit lvls 1. COST ESTIMATE * how much marketing plan expected to cost? ( market research, product development, promotion {ads, packaging} distribution) 4 major components * easier to forecast than revenue bc activities largely controlled by bus 2. REVENUE ESTIMATE * how many sales marketing plan expected to generate * 2 major components **how much consumers expected to buy for what price, what sales staff predict they'll sell) * diff cause ext enviro changes bus little/no control

Answer 66

1. sales analysis 2. market share analysis 3. marketing return on investment

Answer 67

comparing actual slaes w/ forecast sales to determine effectiveness of marketing strat * calculate % change: difference /sales quota x 100 * main strength relatively inexpensive to collect & process * weakness is data for sales rev dont reveal exact profit lvl, need to investigate total expenditure computerised sales makes collection, storage, retrieval, analysis of sales data easier * daily, weekly, monthly, quarterly, annual sales reports * product line sales * sales reports for ind sales representatives

Answer 68

evaluate marketing strats compared to competitors * whether changes in total sales inc/dec from bus marketing strat/uncontronllable ext factor * if total sales rev decline but market share stable, overall industry sales fallen eg. downturn in eco * total sales rev and market share declined, market strats need review

Answer 69

measures how much rev marketing campaign generating compared to cost running campaign * measure impact of marketing strats on rev growth * holsitic view, impact on bus, burdget for current & future calculate marketing ROI: (sales growth - marketing cost) / marketing cost x 100 good marketing ROI is 5:1

Answer 70

based on info from sales, market share, profitability analysis modify marketing plan 1. changes in the marketing mix 2. new product development 3. product deletion

Answer 71

* production modifications upgrade products to maintain comp adv * price modifications prices fluctuate often, respond to changes in ext bus enviro * promotion modifications (correspond to life cycle of product) promotion costs high when new product 1st launched onto market, and later stages PLC stabilise costs and fall during decline stage * place modifications expand distr channels as product's success increases to cater growing market - electronic comms, new distr channels can be used

Answer 72

PLC all products lfiespan 5-10 yrs * for LT growth, must continually intro new products * R&D to keep products innovative, assists comp adv

Answer 73

eliminate some lines of products * outdates products unfavourable image --> other products * decline stage, delete or redevelop product

Answer 74

combo of ppl, processes, physical evidence w/ 4 main elements of marketing mix * varies when reachgin diff target markets

Answer 75

characteristic of ind/group used by M managers to divide total market to segments consuemr market segmented * demographic * geographic * psychographic * behavioural

Answer 76

divide total market according to feautures of pop (size, age, sex, income, cultural bg, family size) * age & gender widely used * easily measure

Answer 77

dividing total market according to geographic locations * diff tastes, preferences and needs for countries, states, cities, claimte, cultural preferences,population, etc * marketing mix differ from 1 region to another, althought most common across all locations, modify to suit local culture *

Answer 78

dividing total market according to personality characteristics, motives, opinions, socioeco group, lifestlye * consumer's brand preferences, fav music, reading habits, personal interests, hobbies, values * why ppl behave a way * can use independently to segment market/combine w/ other seg variables * diff to measure accurately esp personality characteristics & lifestyle

Answer 79

divide total market according to customers' relationship to product * knowledge & attitudes towards, use, benefits sought from product * encourage light & moderate users to buy more products, may redesign, set special prices/promotion activities * customer loyalty eg. membership program * identify benefits customers seek from product

Answer 80

developing & promoting differences betw g/s and comp' * products same/similar made to appear diff from and/or better than competitors * more price control in marketplace

Answer 81

desire to obtain best quality, features, perf for price of product * quality service, conenience, , enviro friendly persuade consumers to perceive product as superior to similar

Answer 82

* desire personalised service - products tailored to ind needs & wants - diff before, during, after purchase * require 'caring' service - treat honestly, courteously -pre and after sales service esp for expensive items * high quality & value - est favourable conditions for service by offering fair prices & high quality products * also presentation of premises, range of products to capture interest otherwise lost sales, damage comp position. meeting basic needs < exceeding expectations

Answer 83

create pollution risk losing customers * produce enviro friendly products sales ^

Answer 84

busy, on-the-go lifestyles and choose most convenient to use eg. meal preparation

Answer 85

consumers ethically minded actively purchase products/brands believe dont exploit workers, producers, enviro **ethical consumerism** provides bus w/ opp to satisfy growing demands e * label genertically modified foods so producers label GM free * **Fair Trade mvoement** international trade alternative promotes enviro, fair wages, alleviate global poverty, fair price for farmers & workers pay more for guaranteed fair labour practices, sustainable, organic products * non animal alt for animal welfare

Answer 86

technique marketers try create image/identity for product compared with image of competing products * how potential buyers perceive product * highly comp markets diff to secure sales, create image diff product from others, invest considerable resources * use other elements of marketing mix to shape and maintain image * achieve through product name, price, packaging, promotion, channels of distr to create image * REPOSITIONING strategic decision to change what customers associate with brand and competing ones, declining sales, focus on new target market, new comp, overcome neg customer perceptions of brand

Answer 87

g/s offered in exchange to satisfy need/want *all are combo of tangible & intangible components eg. restaurant, car (**total product concept** where product possesses tangible and intangible attributes)

Answer 88

name, term, symbol, design or combo identifies product and distinguishes from competitors part of brand can be spoken (letters, numbers, both, pronounceable symbols)

Answer 89

CONSUMERS * identify products they like * evaluate quality of products esp if lack expertise to judge product features * reduce lvl risk of purchase (trusted brand reassure right choice) * psychological reward from purchasing brand symbolises prestige BUSINESSES * gain repeat sales bc consumers recognise their products * introduce new products onto market bc consumers familiar with bus existing brands * promotional activities, 1 product indirectly promotes similarly branded products * encourage customer loyalty, can charge higher price

Answer 90

signify brand name/symbol registered and bus has exclusive right of use * bus spend time, money, effort protecting eg. mcdonald's

Answer 91

graphic representation identifying bus/product 1. BRANDMARK LOGO * solitary graphic not expressed in words, pictorial mark w/ no text (apple) 2. WORDMARK LOGO * logo is bus name, no imagery, rely heavily on typography to stand out (coca cola) 3. LETTERMARK LOGO * typography based logo of few letters (initials) to represent brand 4. COMBO MARK LOGOS * brandmark and wordmark (pepsi) 5. EMBLEM * combine images w/ text * design features w/n frame/border (starbucks) unlike combo

Answer 92

manufacturer's brand (manuf owns brand name) have high appeal w/ customers bc recognised across country, widely available and offer reliability w/ constant quality **private/house brand** owned by retailer/wholesaler * cheaper bc retail/wholesaler can buy at lower costs **generic brands** products no brand name * name of product in plain packaging

Answer 93

development of container and graphci design for product * assist sales by promoting product, creating image , well designed gives positive impression of product and attract customers * preserves, protects (from tampering, damage), attracts, * display, easier transportation & storage * communication (consumers see colours and make conclusions nabt product before reading label) * shape consumers associate unique shape w/ specific product (cola cola)

Answer 94

presenting info on product/package * label part of package contains info (ingredients, shelf life, package size, country of origin) * labels can promote other products/ encourage proper use --> customer satisfaction * must be truthful, reduce confusion eg. food labelling clear where produced, grown, packed, % aus ingredients by aus gvt regulations to protect consumer from misleading/deceptive claims & unsafe use * easier to compare

Answer 95

operations determine hwo to make/provide product * produces g&s relies on marketing to carry market research to produce product satisfying customer needs * also to inform market, distribute products, determine price, persuade to purchase products * marketing determines appearance of product & functions, communicating w/ market

Answer 96

amt money customer prepared to offer in exchange for product * too high lose sales unless superior benefits * too low impression 'cheap & nasty' must be inbetween * control over price by differentiating products

Answer 97

influenced by int & ext factors * marketing obj, prod costs * amt comp market, gvt reg, stage in PLC, lvl eco activity 1. cost based 2. market based 3. comp based

Answer 98

most simple method * total prod costs for 1 unit + costs (overheads eg. interest payments, insurance, transport) & adequate profit margin (mark up, %) * mark up % can be determined using breakeven analysis * mainly used by wholesalers & retailers

Answer 99

1. diffcult to accurately determine markup % * too high overprices, not sell * too low, losing profit could easily obtain 2. * priiced after prod, associated costs incurred without accounting other marketing mix/market conditions

Answer 100

set prices according to interaction betw lvls supply & demand * demand > supply, SHORTAGE in market force rise in price * supply > demand SURPLUS in market --> price falls * price constantly changing relating to fluctuations in lvls supply & demand * basis for other prcing methods * diff to apply, bc lvl supply & demand constantly change

Answer 101

price covers costs (raw materials, operating bus) comparable to competitors price * bc consumers compare prices * when high deg comp w/ similar products establish base price, then * below competitors, undercut comp to break into established market * equal to comp following price leader (major bus in industry whose pricing decisions heavily influence pricing decisions of competitors) bc avoids undertaking market research to find what consumers pay avoids risk of comp * above competitors favoured by bus who think consumers perceive product as superior and appeals to status-conscious buyer

Answer 102

after base price set using pricing method/s * modify depending on changes w/n ext bus enviro esp tech * can use several at once for same product 1. price skimming 2. price penetration 3. loss leader 4. price points depends on * marketing obj * PLC * market for product * deg of product differentiation * lvl eco activity

Answer 103

customers gain package of g&s on top of tangible goods they purchased * telecommunications businesses use eg. mobile phone companies, internet providers

Answer 104

bus charges highest possible price for product during intro stace of PLC * customers willing pay high price for product's novelty features bc of prestigue, status of ownership * to recover costs of R&D asap before comp enters market * apple, launch with premium price (Popular with innovative electronic equipment) high price = higher revenue * larger profits, faster return on initial investment of new products to further expand w/ more innovative products * positioning target market of high end consumers, market position supported by higher prices primary target not price sensitive, higher prices signal higher quaity * suppress comp (from entering market) * branding develop strong brand reputation

Answer 105

bus charges lowest price possible for product * quickly achieve large market share for product (mass market pricing) * to sell large no products during early stages PLC, discourage comp from entering market/taking market share from existing bus * main disadv more diff to raise prices significiantly than to lower * low sales revenue until it substantially modifies product at later stage

Answer 106

product sold at/below cost price * retail stores/supermarkets deliberately sell product at loss to attract customers (heavily discounted items located next to higher priced, appealing products) * extra customers buy other products too * once consumers in store, buy other products & spend more than what attracted them into store * recover loss on low price item from selling other g/s * if done incorrectly, lose money used when bus: * overstocked/product slow to sell * increase traffic flow, expect gaining new custoemrs * built reputation of low prices

Answer 107

selling products at predetermined prices * mainly retailers use * choose limited no. price points for selected product lines * store wont apply fixed mark up to products * easier for custoemr to find type product they need * easier for bus to encourage customer to buy more expensive model eg. jeweller offer line of watches $55, $75 regardless how much costed at wholesale

Answer 108

higher manufacturing cost producing superior quality, sell at higher prices * to encourage status conscious consumers to buy, assume expensive products superior quality * if lowered price dramatically, damage reputation bc inconsistent w/ perception of products * common for service industries where consumer cant see product in advance, price indicates quality * doesnt apply to all products * sometimes believe reflect expensive packaging/market exploitation --> reduce sales * sometimes premium price set artificially high to imply prestigious image when quality not superior to cheaper alternatives * image customers have of products/brands * charging high price so product has status

Answer 109

* attract new customers by heightening awareness of product * ^ brand loyalty by reifnrocing image of product * encourage existing customers to purchase more of product * provide info so customers make informed decisions * encourage new & existing customers to purchase new products

Answer 110

promotion methods bus use in promotional campaign * advertising * personal selling & relationship marketing * sales promotion * publicity & public relations

Answer 111

* provides bus with flexibiltiy to reach extremely large audience/focus on small target market segment * video marketing one of fastest growing forms advertising * sometimes extensive ad campaign with many ad media to create saturated coverage of wide target market eg. release new movie many forms of electronic & print communication to reach an audience types: * television advertising (extensive reach, caters to large market in large area) * outdoor advertising (messages printed on billboards, posters, public transport) * window display (retailers display products in shop windoes to attract customers) * internet advertising * telemarketing (personally contact customer), radio, print publications (magazines, newspapers), direct mail (mail to HH)

Answer 112

* type product & positioning * size of target market & characteristics * marketing budget * cost of advertising medium * product position on PLC

Answer 113

activities of sales consultant directed to custoemr to make sale (human aspect of promotion) * main promotional strat if offer expensive, complex, ind products require personal contact of sales representative to familiarise customer with product * listen to customer needs & offer informed recommendations --> ^ customer satisfaction --> repeat business --> build good reputation expensive but offers 3 adv * message can be modified to suit ind custoemr circumstances * individualised assistance create LT relationship --> repeat sales * sales consultant can provide after sales custoemr service (installation, warranties)

Answer 114

ways to develop LT, cost effective relationships w/ ind customers * create customer loyalty by meeting needs on ind basis --> repeat * comp adv * LOYALTY PROGRAMS, rewards based program offered by bus to customers who frequently purchase, loyal customers who spend specified amts, repeat purchases

Answer 115

bus offer direct inducement to customers to sell more of product aims: * entice new customers * encourage trial purchase of new product * ^ sales to exisitng customers & repeat purchases * use sales promotion techniques to ^ effectiveess of other promotion activites esp ads - limited time offers (coupon, discount code incentives on particular items, drive urgency) - refunds (part of purchase price given back to customers who send voucher with proof of purchase) - samples (free item of product) - point of purchase displays (special signs installed by manufacturer in retail outlets for attention - deals (buy 1 get 1 free enticing to get mroe for less, unload overstocked inventory to still gave profit margin

Answer 116

any free news story abt bus products, free and timing not controlled by bus to: * enhance product image * raise awareness of product * highlight bus favourable features * reduce neg image created * but cant control whats said abt bus or product, need to ensure what they publicise can withstand public scrutiny * social media critics can disseminate opinion activities to create & maintain favourable relations betw business & its custmoers * exposes bud/idea to audience by using unpaid 3rd parties as outlets by working w/ media, attention seeking gesture eg. giveaway sale * often more effective than paid advertising, sometimes cheaper role of public relations personnel to design, implement, manage publicity events 4 ways: 1. promot positive image * reinforce favourable attitudes & perceptions consumers have regarding bus reputation 2. effective communication of messages * using ads, sales promotions, publicity, persoal selling to convey info abt business & its products 3. issues monitoring * protect sales by providing early warning of public trends could affect sales 4. crisis management * protect bus reputation from unfavourable rumours & adverse publicity if left unchecked lose sales

Answer 117

the promotions mix has varied effectiveness for (bus). advertising * paid non-personal message communicated on a mass-medium. through social media advertising, bus can raise awareness of new burger, generating demand & consequently effective in increasing sales revenue. however, advertising eg. TV commercial/billboard may be costly to B, detrimental as reduce profit maximisation from their drinks sales promotion * activities acting as direct inducements to purchase. indeed, SB can use coupons for their burgers eg. 1 free for every 10 bought leading to enticement to purchase hence beneficial bc ^sales revenue. however, use sales promotion negatively impacts B restoring profits, impacting profit maximisation. relationship marketing * activities to create LT cost effective relation w/ custoemrs. through B sending regular newsletters to consumers promoting its productions, can lead to custoemr loyalty & repeat sales, demonstrating effectiveness. however, relation markeitng focuses on exisitng customers, restricting SB's promotion of chips & sauces to new customers, limiting expansion of geographic markets. therefore, promotional mix for bus has varied effectiveness.

Answer 118

promotion wasted w/o effective communication * use **channel**, any method to carry message, usually promotional communication (print & electronic media ads) * **noise** interference affects any/all stages in promotional communication process eg. faulty printing, jargon, ppl conversating during commercial breaks (most common one) * customers more willing to purchase if message communicated through respected, trusted channel eg. **opinion leader/word of mouth**

Answer 119

person who influences others w/ respected opinons, advice * info outlets for new products/endorse existing one * actors, athletes, models --> celebrity endorsement * celebrities powerful when target audience align themselves w/ ambassador bc they have large social media following to gain instant engagement * if persons reputation tarnished, affect bus reputations

Answer 120

receiver places more trust in someone known than bus advertising products, influence each other during convos * friend, opinion leader more trusted than bus sponsored commercials

Answer 121

* must use mix to cater needs of everyone in target market as each element of mix has diff benefits * attract as man potantial customers possible, diff elements appeal to diff types * somem ore influential than others, better response adopt as many as possible * coordinate & complement each other to acheive marketing objectives

Answer 122

1. producer to customer * simplest, no intermediaries * all services 2. producer --> retailer --> customer * retailer intermediary buys from producers & resells to customers * bulky, perishable products eg. furniture, fruit 3. producer --> wholesaler --> retailer --> customer * msot COMMON for consumer goods * wholesaler intermediary buys in bulk from producer resells smaller quantities to retailers 4. producer --> agent --> wholesaler --> retailer --> customer * agent distributes products to wholesalers, never owns product * paid commission by producer * for inexpensive, frequently used products * for bus who dont have sales representatives

Answer 123

retailing activity conducted away from traditional store * rapid changes in electronic communication, exploit e-marketing * purchasing products from store/supplier oldest, common form distribution * modify trad distr channels, some retailers & wholesalers bypassed as customers directly deal with manufacturers 1. E-commerce * buy & sell g&s via internet * shop online for convenience * select from range, cheapest price 2. M-commerce (mobile commerce) * buy & sell g&s through wireless handheld devices eg. smartphones * larger market share (than e-commerce) as retailers ongoing efforts to provide smartphone-friendly checkout solutions to customers

Answer 124

no. outlets firm chooses for product 1. INTENSIVE distribution * bus wants to saturate market w/ product * customers can shop at local outlets and purchase product * many convenience goods (Distributed this way) 2. SELECTIVE * using only moderate prop of all possible outlets * customer prepared to seek specific retail outlet stocks certain brand 3. EXCLUSIVE * only 1 retail outlet for product in large geographic area * commonly for exclusive, expensive products difference is INTENSITY of coverage * clothes, furniture, electrical appliances (2) diff channelsused to get right product in right quantity to right location at right time

Answer 125

activities w/ efficient movement of products from producer --> customer * movement of products themselves through channels of distribution * combo of several interrelated functions 1. transportation 2. warehousing 3. inventory control

Answer 126

* intricate network of transportation to deliver products to customers * key supply chain management function for product manufacturer --> customer * mode depends on type product & degree service bus wants to provide * must meet customer needs, transportation program provides customer satisfaction and bus comp adv most common: 1. rail 2. road 3. sea 4. air

Answer 127

set of activities involved in receiving, storing, dispatching goods * central organising point for storing goods to distr later * small home based bus warehouse prods in spare room/garage whereas large bus own/rent space in building designed for storage basic warehousing to consider: * shelving system offering max storage capacity & easy access * inventory control software to inform bus abt quantities of each product & location in warehouse * access to transportation to bring products in/move out once orders placed * climate control system for products require refrigeration also increased warehouse automation use few key pieces of tech to move products to cut down manual tasks

Answer 128

* customers frustrated when product wanna purchase out of stock and if repeats, lose sales & market share * avoid using **inventory control** system * if carries too much stock on inventory, experience high storage costs * too little stock lost sales * should find correct balance

Answer 129

* 4 Ps for tangible products but service sector expanded for intangible products (tourism, entertainment, hospitality) to create extended marketing mix closer to HR and operations * goods also have service eg. after sales service

Answer 130

quality of interaction betw customer and w/n bus who deliver service * recruit right workers & train to perform service and leave good impression * consumers base perceptions and make judgements abt bus on how emp treat them * speak, deal with enquiries, handle complaints * est culture of customer focus, maintain reputation, positive attitude towards products selling * success of marketing campaign frontline/customer service staff and customers

Answer 131

flow of activities bus follows in delivery of service * delivery or how customer finds out product, selects, make purchase * ensure processes & procedures customer friendly and satisfy customer needs * purchasing experience important to achieve customer satisfaction (wait times, long queues, delivery reasonable time) * access various payment methods (cash, credit cards, deferred payments eg. Afterpay) * maximise benefit for customer not just convenience of bus/staff

Answer 132

everything customer sees when interacting with bus * physical enviro, materials to carry out service * positioning brand, attracting target market * diff for marketing to provide customers with sample unless free trial offered for services * customers buy services on trust and make judgements abt bus based on physical evidence * image of value & excellence using high quality physical evidence ALSO PHYSICAL STATE of bus premises, website, online presence * clean, presentable location reassures high standards * website simple to navigate, clear contact details, secure ordering system access FEEDBACK from customers can be way providing physical evidence to potential customers * encouraging satisfied customers to use independent review websites valuable evidence influence potential customers

Answer 133

using internet to perform marketing activities * tech --> market products to customers worldwide, access global markets by setting up websites to promote products & dispatch * exploit due to rapid changes in electronic communication * retailers slow to e-marketing offering product info but no opp for customers to purchase online (majorit aus bus dont have website) * trad marketing methods not enough most ppl search & shop online for products * convenience of online shopping, purchase from overseas retailers and bypass local businesses

Answer 134

* web pages * podcasts * electronic messages * blogs * location based marketing * social media advertising

Answer 135

convey info combining text, graphics, animation, video * many linked together = website * hoem page w/ basic info abt bus and links to other web pages w/n website for info abt location of bus premises (maps, photos), products, online ordering facilities majority bus aus dont have website most feel bus too small, then too expensive, then dont have time to manage/build

Answer 136

distributing digital audo/video files over internet * directed to no. users who subscribe to service and receive regular updates * marketing & advertising purposes * aimed at audence as target customers, effective to reach

Answer 137

email, SMS offers, advertises/promotes bus, g/s. * send newsletter, promote sale, send coupon to loyal customers for discount * SMS adv over email, delivered automatically to 1/+ recipients w/o logging on * also alert regular customers of special deals on offer, notify suppliers of arrival of goods shipment

Answer 138

online journal that can be added to by readers * ask questions, provide feedback, share opinions EXTERNAL BLOGS allow communication betw bus & existing + potential customers * announce new products gather feedback from stakeholders for PUBLIC RELATIONS: * owner & employees est reputation for expertise by providing detailed info on products * new ideas for products for public gain feedback * informal so build trust w/ customers

Answer 139

mobile devices can track & report one's location, bus can tailor marketing messages based on location * brands tap into daily habits & encourage consumers w relevant offers * customers receive by usign mobile to search for local bus on internet * eg. geotargeting based off IP addresses bc every connected device has unique IP address

Answer 140

* inespensive compared to trad ad methods * easy to use & monitor * effective method to gain exposure * marketers can accurately measure **reach** (no. ppl exposed to message) & **frequency** (avg no. times someone exposed) of SMA BUT dont have complete control over what online consumers write abt business w/ freedom to discuss, review, criticise product/bus * privacy, honesty, consumer trust issues online customers not just targeted for advertising but contribute to creation & distribution of advertising, constantly build relations with customers (expect expand rapidly next few years)

Answer 141

marketing plan must modify & adapt to suit overseas markets, each foreign market has target markets & marketing enviro diff from domestic - extended marketing mix adapted

Answer 142

any bus with prod facilities in 2/+ countries operating on worldwide scale * develop marketing strats as if entire globe 1 large market (standardised approach) * others customise marketing mix to account diff among cultures, religions tastes betw countries * uncertainty & ^ risk developing global marketing strats * if market global scale need market research to understand complexities of global marketing enviro before designing marketing mix * analyse overseas markets > domestic 1. info to make marketing decisions eg. price, packaging, dist channel, product characteristics to modify 2. info abt country's eco, political, social, cultural features

Answer 143

worldwide use of name, term, symbol, logo to identify seller's products increasingly use bc: * cost effective (use 1 ad in many locations) * provides uniform worldwide image * successful brand name linked to new products introduced into market global branding = global recognition irrespective of language barrier * after name, market brand globally keep same across multiple countries but sometimes change (carry logo tho)

Answer 144

**standardised approach** global marketing strat assumes way product used and need satisfies same * marketing mix same in all markets (globalisation of MM) eg. mobile phone, music, movie * cost savings (prod runs longer, ecos of scale, reduce R&D costs, simplify after-sales service, standardise promotion strategies, simpler to evalue & modify plan * must appeal to international consumer base to succeed overseas

Answer 145

global marketing strat assumes way product used and needs to satisfy diff between countries * customise marketing plan according to eco, political, sociocultural characteristics of target country * can also combine customised & standardished approach * globalisation intensified, standardisation approach used more frequently rhan customised appraoch

Answer 146

major challenge for TNCs is coordinating pricing policy across diff countries * price only element marketing mix generates revenue and others involve costs * global pricing strat major determinant of profits * if bus overseas expansion successful, accurate pricing decisions must be made 1. customised pricing 2. market-customised pricing 3. standard worldwide price

Answer 147

whenever consumers in diff countries charged diff prices for same product * determine price for overseas market many global bus practice **cost-plus method** t cover added export costs eg. transportation, taxes, warehousing **tariffs** * most commonly used bc of added expense of exporting

Answer 148

set prices according to local market conditions * more flexibility than customised pricing strat * avoid comp from domestic bus, global bus use this strat to allow marketers to vary price depdning on lvl demand & comp w/n overseas market * in comp market price charged have to be lower than market where bus has monopoly * price charged in other countries influenced by foreign currency exchange rates, and fluctuations change prices charged across countries, major risk for global bus

Answer 149

standardised pricing charge customers same price for product anywhere in world * succeed ONLY if foreign marketing costs low enough to not affect overall costs 1. domestic bus can undercut standardised price 2. changes in exchange rate can negatively impact exported price

Answer 150

how bus differentiate products * in comp marketing enviro * domestic market global bus must show how products better than comp products * w/o diff, takes mroe time, money, effort to encourage potential customers to purchase bus products * diff successfully avoid competing on price only (hard to sustain LT) bus should develop product leadership, positive custoemr relationships, operational excellence * to develop & maintain comp position in increasingly challenging enviro, gain deep understanding of dynamic enviros operating in, form strats according to evolving conditions

topic 2 marketing Flashcards

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