Unit 1: Marketing Concepts and Principles Flashcards
What does PESTLE stand for?
- Political
- Economic
- Social
- Technological
- Legal
- Environmental
PESTLE analysis is a tool used by companies to track their operating environment and identify market structure.
How are traditional marketing channels still relevant?
Traditional marketing channels like TV, radio, print, and direct mail are still widely used despite the rise of digital marketing.
They provide local targeting and are familiar to many consumers.
What is a key advantage of traditional marketing?
Targeting local customers effectively.
Traditional marketing methods can reach specific geographic areas.
What is a disadvantage of traditional marketing?
Building an audience around your brand is difficult.
Traditional marketing focuses more on information delivery than customer interaction.
Define profit.
A financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.
What is the definition of revenue?
Revenue is simply the money coming into your company, not the amount left after expenditure. Businesses want to generate as much revenue as possible whilst not over extending their expenditure to ensure they generate a healthy profit that can be reinvested into the business.
What does turnover refer to in the United States?
An accounting concept that calculates how quickly a business conducts its operations, often relating to cash collection from accounts receivable or inventory sales.
What does turnover refer to in Europe?
Most often, turnover is used to understand how quickly a company collects cash from accounts receivable or how fast the company sells its inventory”.
In Europe, turnover is actually closer to the definition of revenue in terms of simply being money coming into the business.
What are the three commonly quoted moments of truth in marketing?
- FMOT (First Moment of Truth)
- SMOT (Second Moment of Truth)
- TMOT (Third Moment of Truth)
These moments relate to customer perceptions and experiences during the buyer journey.
What are tangible branding elements?
- The brand name
- The logo
- A slogan
- Fonts and colours
- A mission statement
- Products and product packaging
- Mascots
What are intangible branding elements?
- Stories
- Emotions
- Memories
- Loyalty
- Cultural Value
- Social Meaning
What characterizes the Introduction stage in the Product Lifecycle?
Sales grow slowly, profit is nominal, and the product is not competitive initially.
What happens during the Growth stage of the Product Lifecycle?
Sales start to climb exponentially after initial positive reviews, and companies invest profits into marketing.
What is the goal during the Maturity stage of the Product Lifecycle?
To hold onto market share and extend it as much as possible despite increased competition.
What occurs during the Decline stage of the Product Lifecycle?
Sales start to decline due to market saturation or consumer shift to new products or technology.
What are the 4 P’s of Traditional Marketing Mix?
- Product
- Price
- Place
- Promotion
What does the ‘Price’ element of the marketing mix involve?
Psychological pricing, costs, business targets, and brand impact.
What is the ‘Place’ element of the marketing mix?
The location where the product is sold and the distribution methods used to reach target customers.
What does the ‘Promotion’ element of the marketing mix focus on?
Techniques to raise awareness of products and services through advertising and public relations.
What is meant by the ‘People’ element in the Extended Marketing Mix?
The customer support and service available to customers, which affects their experience.
What does the ‘Process’ element in the Extended Marketing Mix refer to?
The customer journey from initial interaction to purchase and delivery.
What is the significance of ‘Physical Evidence’ in the Extended Marketing Mix?
It distinguishes a company from competitors and impacts customer experience.
What is STP in marketing?
Segmentation, Targeting, Positioning.
What are the four main strategies of segmentation?
- Geographic
- Demographic
- Psychographic
- Behavioral
