unit 3 Flashcards
1
Q
4 functions of a business
A
operations
finance
HR
Marketing
2
Q
what is marketing
A
The process of identifying, anticipating(predicting) and satisfying customer needs profitably
3
Q
what are objectives
A
statements of specific outcomes that are to be achieved
4
Q
what are corporate objectives
A
those that relate to the business as a whole
5
Q
what are examples of functional change and how does it support marketing
A
raising finance-investment in new products
introduce quality assurance and lean production
6
Q
what is quantitative research
A
concerned with and based on data
addresses research questions such as ‘how many ?’,’who’,’when’,’where?’
7
Q
what is qualitative research
A
8
Q
what is sampling in market research
A
involves gathering data from a sample of respondents, the results of which should be representative of the population
9
Q
benefits of sampling in market research
A
even a relatively small sample size can provide useful research insights.
using sampling before making marketing decisions can reduce risks and costs
sampling is flexible and relatively quick
10
Q
drawbacks of sampling in market research
A
Biggest risk = sample is unrepresentative of population- leading to incorrect conclusions
risk of bias in research questions
Less useful in market segments where customer tastes and preferences are changing frequently.
11
Q
what is random sampling
A
-simple sampling method, useful if product has mass appeal
-not a completely unplanned method
12
Q
what is quota sampling
A
-chosen with the aim of representing the overall population
-may develop bias
-cannot be used to predict the behaviour of the whole population as accurately
13
Q
what is stratified sampling
A
- a group of respondents are selected randomly before the survey is carried out, from a list but within very specific sub-groups. e.g age, gender income levels. Survey is then carried out.
More suitable for mail, email and phone surveys
- less bias, because of randomness
14
Q
factors influencing the choice of sampling methods
A
-Time to complete research and make decisions
- costs involved and financial situation of the firm
-stage of life cycle for the firm and its product
- is it a new or existing firm- if existing, you know about the audience
-mass or niche market
mass- wide appeal
niche- smaller appeal e.g gluten free bread
-target audience
15
Q
what is market mapping
A
the process of using a graph to plot competitors and their products to understand competitor behaviour and spot a gap in the market.
16
Q
what are the aspects of the market which firms need to analyse in market research
A
size of the market- is it big enough!
growth in the market- Does the market have enough future potential?
market structure- what level of competition?
segmentation of the market-who will the company be targeting?
social trends- changing lifestyles, demographics and fashions?
17
Q
what are the reasons for analysing the market
A
-is the product viable
-identify future trends
-identify opportunities and threats
18
Q
what is correlation
A
A statistical technique which looks at the strength of the relationship between two variable and how they are related. For example, the relationship between advertising expenditure and sales increases.
19
Q
what are the types of correlation
A
positive, negative, no
20
Q
what is the difference between correlation and causation
A
correlation does not automatically mean that the change in one variable is the cause of the change in the values of the other variable. Causation indicates that one event is the result of the occurrence of the other event.
21
Q
what is the independent variable
A
The variable that causes a change in the other e.g increasing the investment in promotion
22
Q
what is the dependent variable
A
The variable that is impacted by the independent variable e.g The resulting rise in demand.
23
Q
what is the value of correlation
A
between -1 and +1
higher the value the stronger the correlation
24
Q
how can a negative correlation be good
A
increasing customer service- decrease in complaints
25
what is positive correlation
as one variable increases, so does the other
26
what is a confidence interval
help businesses to understand how reliable an estimate is and how confident they can be to act on the data when planning strategy and making decisions.
gives the percentage probabiliy that an estimated range of possible values includes the actual value being estimated
27
what is extrapolation
A method of forecasting that looks at what is happening in the past and to continue the trend into the future
28
what can extrapolation be used for
-Measuring performance, did they meet the forecast?
-workforce planning, how many staff will they need to satisfy demand?
-Marketing department can plan what strategies they will need to hit the forecast?
- plan production levels and schedules
29
methods of extrapolation
-Asking individual experts' views
-individual management hunches based on past experience
finish off
30
what are the advantages of extrapolation
Used to predict future sales, which can help in planning operations, workforce requirements, making efforts, etc.
Can be done relatively quickly at little cost
can be based on past years data
useful in steady predictable markets
31
disadvantages of extrapolation
Not reliable in dynamic fast changing markets, e.g technology
- does not factor in unexpected external changes, e.g economic changes
-Assumes past trends will continue
-Forecasts may result in a firm only achieving their forecasts rather than actual growth.
- data might be biased e.g a fast food company carrying out studies on health benefits of some of its ingredients.
- forecasts too far into the future will have little value
32
benefits of market analysis
finish off
to see opportunities/ gaps in the market.
to know what we should invest in to be successful, and how it will impact the business.
33
implications of incorrect forecasting
finish
will produce poor business planning therefore wasted resources if overestimated, for example raw materials.
34
What is test marketing
involves replicating all elements of a product launch, scubas the promotion, distribution and pice, to a specific planned smaller geographic region or demographic group to judge the viability of the product in the market before a full scalen launch.
35
what are the benefits test marketing
Actual sales results can be used to inform decisions
Minimises risk and firms do not wast high costs on a product launch if it is not going to be successful
can generate feedback to modify the product
36
what are the drawbacks of test marketing
Tastes in one area may not translate to the rest of the market
Can be costly and time consuming
Many Gove competitors time and opportunity to respond if test marketing delays the full launch
37
use a wide range of modern technology to gather data and analyse their market:
-Internet data including websites, social media, blogs
-CCTV in store
-store card, for example Tesco club card
-sales data using EPOS
-online questionnaires and internet surveys
38
what are the advantages of gathering and analysing data for marketing decision-making
-Data can be processed and analysed quickly and in a greater depth using ICT
-Customer database can be constructed using customer data collected. It can then be used as part of an effective direct marketing campaign ad to continue to modify and adapt the product portfolio to customers' changing tastes.
39
what are the disadvantages of gathering and analysing data for marketing decision-making
-Too much information, hard to analyse and may actually slow down decision making
-Trends can be misunderstood and mistakes can be made as data can be gathered too quickly
- can be costly to acquire the required technology to be able to gather the data
40
what is elasticity
measures the responsiveness of demand to a change in a relevant variable- such as price or income.
41
what is Price Elasticity of Demand
Price elasticity of demand measures the extend to which the quantity of a product demanded is affected by a change in price.
42
what is the price elasticity of demand (PED) formula
%change in quantity demanded
_________________________________
% change in price
43
How do you tell is the result is Elastic goods, Inelastic goods, Unitary elasticity.
Elastic goods= an answer greater than 1, where demand will change with a price change
Inelastic goods= Less than 1, where demand is relatively unresponsive to a change in price
Unitary elasticity= an elasticity of 1, any price change is cancelled out by the demand change.
remember to ignore signs e.g -
44
how do you calculate percentage change
change/ original x 100
45
what are the factor influencing PED
brand strength-
Necessity-
-Habit
-Availability of substitutes
-time
46
what is the formula for income elasticity of demand
%change in quantity demanded
_________________________________
%change in consumer income
47
what are inferior goods
negative income elasticity of demand, demand falls as incomee rise
48
examples of products that income elasticity is positive for
fine wines
consumer durable- 3G monile phones
sports and leisure facilities
49
examples of products that income elasticity negative for
Staple food products
mass transport
beer and takeaway pizza
50
what are luxury products
when income grows proportionally more money is spent on these products
51
what are necessities
As income grows, proportionally less is spent on these product.
52
what is income elasticity of demand
Measures the relationship between a change in quantity demanded for good and a change in real income.
53
what are the key elements of effective marketing
identifying customer needs
meeting customer needs
54
what is niche marketing
focusing on meeting the needs of a small number of customers
55
what is mass marketing
being able to meet the needs of a very large number of potential customers
e.g BP and O2
56
examples of nice marketing
anythinnglefthanded.co.uk
57
advantages of niche marketing
-The business can respond quickly if needs of customers change
-effective mareting expenditure
-less likely to be major competition, higher prices = more profitability
-easier to design marketing mix
58
disadvantages of niche marketing
-vulnerable to market changes
-A successful niche may attract competition, exploit advantages of scale. May be bought up by larger competitor, good and bad.
-Lower level of sales and risk of costs increases.- internet shopping allows niche businesses to function- less costs.
new arrivals could have a considerable impact
-changing consumer tastes will have a considerable impact-
59
advantages of mass market
Although the profit margin on each unit may be small, very high sales mean high profits overall
-less likely to be significant change in the market therefore more stable revenue
-economies of scale therefore lower costs per unit
60
disadvantages of mass marketing
likely to attract competition which may reduce profit margins
-less responsive to change in customer needs
61
what is meant by socio-economic groups
a persons position in society
measured by A,B,C1,C2,D,E
62
what is monopoly
when you only have a few companies operating in a market
63
advantages of monopoly
charge higher prices
64
why segment the market
Match customer needs
enhance profits for business
opportunities for growth
retain more customers
target marketing communications
gain share of the market segment
65
what are the different socio economic groups
A-Higher managerial or professional
B-Intermediate managerial or professional
C1-Supervisory, clerical, junior managers
C2-
D-
E-
66
what is the process of segmentation
income- certain goods/services are aimed at individuals with certain levels of disposable income. For example: Rolex, Porsche, Aldi
Geographical region- Firms can look at where particular consumer types live, what the income levels are like, whether it is rural or inner city.
Acorn ( a classification of residential neighbourhoods) is a system that segments markets according to a variety types of households.
Behavioural segmentation:
Lifestyle- hobbies, tastes and interests all influences buying behaviour
-level of brand loyalty
-benefits sought by costumers
-purchase occasion
-frequency of usage
67
Benefits of market segmentation
68
Difficulties of market segmentation
Firms can find it difficult to identify the most important segments for a product
-constant research is needed to keep up to date
-products may become too specific to one market segment not catering to the tastes of others thereby reducing sales
-companies may ignore potentially lucrative segments.
69
How did lego differentiate its market
(context)
realised demographics were too narrow; brought out new range of lego- pink blocks
-revenue increased dramatically
became to stereotypical
70
what is market targeting
Deciding the market segments the company will aim to sell their products/ services to; known as their target market.
71
what is concentrated marketing
A product is aimed at a very well defined and specific market segment (niche). It allows firms to focus and avoids the need for mass production
72
what is Differentiated marketing
Targeting several different market segments with different products.
73
what is undifferentiated marketing
Targeting the whole mass market with one product.
74
what is product proliferation
when a firm sell a range of products aimed at a different markets. For example Volkswagen motor company owns a range of different brands including Audi, Bentley, Bugatti, Lamborghini, Porsche, seat, Skoda and Volkswagen.
75
Market positioning
Where a firm's products/services are in a market in relation to its rivals. A firm will do this based on factors such as price, value, quality, product use.
Aim to creat a Unique selling point
76
What is unique selling point (USP)
something that differentiates it from its rivals to provide it with a sustainable competitive advantage.
77
what are economic brands
low quality
low price
78
what are cowboy brands
low quality
high price
79
what are bargain brands
high quality
low price
aldi
80
what are premium brands
high quality
high price
81
what are the 7 p's that a marketing team has to do + explanation
Product - product or service that the customer buys
price- how much the customer spends on the product
promotion- how the customer is found and persuaded to buy
place- how the product is distributed to the customer
physical environment- the elements of the physical environment the customer experiences
people- the people who make contact with customers. in delivering the product (customer service).
process- The systems and processes that deliver a product to a customer
82
what is a marketing mix
the elements of a firm's approach to marketing that enables it to satisfy and delight its customers. (7p's)
83
what are some key implications of an extended marketing mix
-Each of the businesses functions needs to work even more closely together- (customer service)
- Technology becomes increasingly important (e.g role of IT in e-commerce and customer communications)
-intangible elements such as branding play an enhanced role
84
how do businesses add physical, process and people to the mix connects marketing closer to HRM and operations
-Layout and design of premises; ambience, ease of movement
-transaction process; website design; operational support
-customer service; skills and experience; CRM
85
How is product used in premier inn hotels
Hotel accommodation and related services. proposition- 'a good night sleep guaranteed'
86
how is price used in premier inn hotels
Dynamic pricing; changes depending on night approx £69 per night
87
how is promotion used in premier inn hotels
TV advertising; online and social media
88
how is place used in premier inn hotels
Predominantly sold direct; emphasis on online booking
89
how is people used in premier inn hotels
Hotel reception staff; restaurant and bar
90
how is process used in premier inn hotels
Online booking
91
How is physical used in premier inn hotels
Branding, staff uniforms, hotel ambience, facilities
92
why is it called marketing mix
Because each element of the marketing mix is related to the others
Elements of the mix should work together to achieve the desired effect
93
what is the importance of the marketing mix
Business need to use all elements of the 7p's.
-if you do not take each of them into account the product is likely to fail.
94
How to use Marketing Mix
Although all P's must be present, the emphases, the emphasis will be different - depending on th product and target market.
95
which p would easy jet emphasise on
price
96
which p would magazines emphasis on
place
97
which p would Dyson emphasis on
poroduct
98
which p would BMW emphasis on
99
What are the key influences on marketing mix
Business resources- particuliarly finance- impacts what activities can be undertaken (e.g promotion, new product development)
Technology- rapid technological change impacting on all aspects of the marketing mix, not just product and promotion.
importance of Customer Relationships- need to generate repeat business and build customer loyalty increasingly important. Marketing mix needs to reflect this.
100
how does marketing mix help deliver marketing strategy
1choose which customer to serve- -----Market segmentation
-Targeting
2.Decide how to serve those customers
- product differentiation
-Marketing positioning
101
what is a product
A product is anything that is capable of satisfying customer needs
102
what are the layers of a product
middle-core product
actual product- (quality, features, packaging, design, brand name)
Augmented product- (warranty, Pre-sale support, After-scale service)
103
what are consumer products
-Bought by final consumers for personal consumption
-Differ in the way consumers buy them
104
what are industrial products
Bought for further processing or for use in conducting a business
- Brought by other businesses, not consumers
105
what are the 3 main kinds of industrial products
-material and parts
-capital items
-suppliers and services
106
what are the key features of marketing industrial products
-Specialist buyers and sellers- often dealing with professional 'buyers'
-Buyer- seller relationship- strong emphasis on customer relationship
-Transaction value- Purchase value often sustainable
-quality and price
-support
107
what is the product life cycle
A theoretical model which describes the stages a product goes through over its life.
108
what are the key uses of the product life cycle
Forecast future sales trend
Help with market targeting and positioning
Help analyse and manage the product portfolio
109
what are the stages of the product life cycle
Development (research)
introduction
growth
maturity
decline/end
110
what might business do if it has a lot of products that are declining in the product life cycle chart
Launch new products
111
why is time on the x axis and not individual times
because you do not know how long the product will last for. Different products last for different amount of time
112
what is the research and development stage
Market research is carried out, expensive period, no sales
113
what is the introduction/launch of the product life cycle stage
sales begin and start. slowly as customers are getting to know the product. This stage will involve a lot of expenditure on promotion and publicity. The firm will need to convince their distributions to stock the new product.
114
what is the growth stage of the product life cycle.
Sales are accelerating, people are beginning to buy more of it and it is becoming successful. More outlets for the product need to be found. Firm should start to break even on costs and begin making a profit.
115
what is the maturity stage of the product life cycle.
Sales rate begins to slow down. Perhaps a competitor has launched something similar that is impacting sales, or customers want something new. At this stage firms should consider introducing new versions of this product, to keep sales up.
116
what is a saturated market
when their is no more customers
117
what is a solution to saturation
bringing out new features/ versions of products (e.g apple bringing out new versions)
118
what is in the decline of the product life cycle
Sales begin to fall as the product becomes less popular. At this stage a firm will need to make a decision, sales should be boosted again by spending more on marketing or should the product be withdrawn from the market.
119
when should a business start reinvesting in other versions of the product
late growth/early maturity
120
How has CAD (computer aided design)helped with product development
speeds up the process, faster for the product to enter the market
121
why are products scrapped before launch
-inadequate demand
-action of competitors
-change in the external environment
-production problem
-high costs
-does not fit in the firms product range
-life cycle expected to be too short
122
what statergies does a business have at the introduction stage
-Aim- encourage customer adoption
-Higher promotional spending to create awareness and inform people
-Either skimming or penetration pricing
- limited focussed distribution
- demand initially from early adopters
123
strategies in the growth stage
-Advertising to promote brand awareness
-Increase in distribution outlets- intensive distribution
- target the early majority
- go for Market penetration
- continuing high promotional spending
124
strategies in maturity stage
- Manage capacity + production
- promotion focusses not differentiation
-persuasive advertising
-intensive distribution
-enter new segments (Tesla- drop prices)
-attract new users
-Repositioning
125
strategies for the decline stage
maintain market share
harvest by spending little on marketing the product
rationalise by weeding out product variations
price cutting to maintain competitiveness
promotion to retain loyal customers
distribution narrowed
126
why do products enter the decline stage
technological advance
changes in consumer tastes and behaviour
increased competition
failure to innovate and develop the product
127
what are extension strategies + example
strategies taken to extend the life of the product.
128
what are the extension strategies
-change packaging
-changing price - e.g Tesla
-change promotion (e.g promotional message)
-look for alternative distribution channels
-develop new market segment
-find new uses for the product.
-reposition the product- vinyl records- collectors
129
what are the weaknesses of the product life cycle model
The shape and duration of the cycle varies from product to product
130
what is conglomerate
business owned by one company which operates different sectors
131
what is product portfolio analysis
assesses the position of each product or brand in a firms portfolio to help determine the right marketing strategy for each
132
what is the Boston matrix
a product portfolio analysis tool used to plan the development of a product, a way of categorising products.
133
what stage of the Boston matrix who maturing of the product life cycle be at
cash cows- low market growth, high relative market share
134
categories of the Boston matrix
-stars high high
-cash cows low high
-question marks high low
-dogs low low
135
where would dog link to the product life cycle
decline
136
where would question mark link to the product life cycle
market entry
137
where would stars link to the product life cycle
growth
138
what is the difference between the product life cycle and Boston matrix
product life cycle is concerned with individual products, and concerned with sales over time
Boston matrix is concerned with the firms portfolio of product, focuses on cash flow of products
139
what does the relative market share mean on on the x axis of Boston matrix
measure of the firms strength in the market
140
what does the market growth mean on on the y axis of Boston matrix
measure of market attractiveness
141
strategy for question marks
invest to increase market share
substantial investment to achieve goth at the expense of powerful competitors
invest in promotion and other aspects of marketing
Build selectively
142
strategies for stars.
investment to sustain growth
build sales and/or market share
spend to keep competitors
at bay
investment to maintain or increase leadership position
repel challenges from competitors
143
strategies of cash cow products
Defend market share
sim for short term profits
little need for investment
little potential for further growth
reduce investment in order to maximise short term cash flow and profits
use profits from cash cows to invest in new products
144
strategies for dog products
phase out or sell off(divest)
not worth. investing in
any profit made has to be re-invested just to maintain market share
uses up more management time and resources than can be justifies
divest or, at most, focus on a defendable niche
145
what are dog products
product that have either failed or products that are in decline phase of their life cycle.
low share of a slowly growth market
not going anywhere and no real potential
146
147
148
149
how valuable is the Boston metrix model
a useful tool for analysing product portfolio decisions
-but it is only a snapshot of a current position
-has little to no predictive value
focus on market share and market growth ignores issues such as developing a sustainable competitive advantages
150
what is penetration as a pricing stratergy
lowering price of new product to compete with rivals then slowly increase product price
151
what is skimming as a pricing statergy
new version of a product, which has many loyal consumers. making customers pay a premium
152
what is predator pricing
pitch products at a low level- price can be matched at a short term, then not in a long term. Damaging rivals profit margins.
153
what is loss leading
picking key product offerings from portfolio of goods. sell products at not profitable prices. Making customers buy other products with loss leading profits. Increasing customers from other competitors.
154
psychological pricing
alon aside other strategies. Trying to give products appearance that they are cheaper that they really are. ending in odd number e.g £499 instead of £500. making customers feel as if they have made a steal.
155
what is discrimination pricing
charging different market segments at different amounts. cinemas- child seats are generally cheaper. also with genders.
156
what is dynamic pricing
charging different prices to different customers depending on the time at which the customer buys the product. depends on there willingness to pay the different prices. Hotels and airlines.
157
what is place also known as
distribution
158
what are channels of distribution
the journey of the product from the manufacturer to consumers
159
what are intermedieteries
anything that comes between the manufacturer and consumer
160
what is a wholesaler
a business that sells goods at a large quantity for low prices e.g costco
161
what are agents
act on behalf of the producer to accept payments, have specialist knowledge. E.g trailfinders
162
benefits of using intermediaries
increases product profit
efficiency of distribution costs
have specialist knowledge
163
negatives of using intermedieries
the intermediaries take money which lowers profit.
less exclusiveness
164
methods of distribution
direct to the consumer through various methods:
websites
catalogues and mail order
representatives and sales teams
vending machines
telesales-selling over the phone
165
what is the main function of a distribution channel
provide a link between production and consumption
166
key functions that organisations that form in a particular channel create
information
promotion
contact
negotiation
physical distribution
financing
risk taking
167
why is china so important to uk businesses
economy 50 x larger than in 1980
movement towards technology
168
what will influence they type of distribution method a business will use
-nature of the product
-the market
-the business
-legal issues
169
nature of the product
perishable, fragile
technical, complex
customised?
is it convenient
desired image for the product any intermediaries need to be suitable and relevant for the product.
170
the market
is it geographically spread
does it involve selling overseas
the extent and nature of the competition.
171
the business
size and scope- in-house sales force
marketing objectives
does it already have an established distribution network
how much control does it want over distribution
172
what are the factors that influence the choice of distribution method
profit margins- the more intermediaries in the distribution channel the lower the margin for the producer
distribution costs- retailers help firms to ensure their products are available in all destinations without having to pay their own distribution costs.
control required over display and brand image- for example Tesco and Levis court battle and high end fashion brands wanting to only be available in suitable retailers and their own stores.
proximity- how close does the firm need to be to its customers?
convenience for customers and type of product- for example, convenience goods must be easier for customers to access as they often rely on impulse purchases.
173
what is multi-channel distribution
involves a business using more than one type of distribution channel.
174
what is an example of a multi-channel distribution
apple customer electronic devices
450+ retail stores in 15 countries
online stores
multiple retail partners
175
benefits of multi channel distribution
176
drawbacks of multi channel distribution
177
what is promotion
178
main aims of promotion
to ensure that customers are aware of the existence and positioning of products
persuade customers. that the product is better than competing products
remind customers about why they want to buy
179
uses of promotion
-increase sales
-attract new customers
-encourage customer loyalty
-encourage trail
-create awareness
-inform
-remind potential customers
-reassure new customers
-change attitudes
-create an image
180
what does AIDA stand for
Awareness
interest
desire
action
181
what are the main aims of the promotional mix
-advertising
-sales promotion
-personal selling
public relations/publicity/sponsorship
-direct marketing
182
what are the key factors influencing promotional decisions and strategy
-stages of product life cycle
-nature of the product
-competition
-marketing objectives and budget
-target market
183
what are the advantages of advertisement
wide coverage
control of message
repetition means that the message can be communicated effectively
effective for building brand awareness and loyalty
184
what are the disadvantages of advertising
often expensive
impersonal
one way communication
lacks flexibility
limited ability to close a sale.
185
what is e-commerce
buying and selling goods and services through the internet
186
whit is m-commerce
purchasing goods through mobile devices
187
advantages of digital marketing
-larger global reach
-reduced costs through lower overheads
-24/7 availability
-faster buying process
-cheaper advertisement
188
disadvantages of digital marketing
-cannot try on clothes on use products (aftershave)
- security risks
-less customer service- personal touch that closes the sale. lack of direct contact with consumer
-increased and international competition.
189
what is digital marketing
involves anticipating and satisfying customer wants using technology, specifically social media, use of search engine marketing and digital display alerts such as leaderboards, banner, pop ups
190
what is social media marketing (SMM)
the use of social media websites and platforms to promote products and services and connect with audience.
191
reasons to utilise Social media social media
-helps to improve your brand
offers chance to engage audience, respond to posts, get immediate feedback on your company's offerings.
-$18 billion of products left in baskets
promotes customer service
impact on sales and conversion rates
-become a thought leader- trend at certain times- helps business to realise what the customers want
-study the competitions- you can see what they are doing and create a better product
-improve search engine result page (SERP)
-boost website traffic, funnels customers into your business
-attracts top-of-funnel leads, McCarthy and stone-face took ads 4.3x more
-Earn greater ROI
-helps to retarget missed customers
-keep up with industry trends
-inquire/hire talent
192
example of social media advertisement by a business
Cadbury worldwide hide
partnership with google maps- egg hunt
193
what is viral marketing
spread info about product between people by word of mouth or through internet based communication at an increasing rate
social media offers a perfect platform for viral marketing
194
advantages of viral marketing
allows businesses to reach customers that ordinarily would not be targeted by its traditional marketing campaigns
-extended reach allows the company to enter new markets and expand their growth.
, a fraction of traditional advertising campaigns, essentially free when customers infectiously share their positive experiences with a company's product.
195
disadvantages of viral marketing
consumers tend to share negative reviews than positive reviews.
horse meat in the beef burgers in supermarkets.
-effects of viral marketing is hard to measure as it is difficult to determine if a lead or sale resulted from it.
-if customers believe the viral campaign will compromise their security they will not share.
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examples of sales promotion
coupons
money off
competitions
demonstrations
free samples
loyalty points- traps customers, also provides data
free gifts
point of sale displays- brings your eyes to where the products sold
BOGOF- buy one get one free
merchandising
trade in offers
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advantages of sales promotion
effective at achieving a quick boost in sales
encourages customers to trail a product or switch brands
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disadvantages of sales promotion
sales effect may only be short-term
customers may come to expect or anticipate further promotions
may damage brand image
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what is personal selling
promotion on a person tot person basis
two way communications
meeting with potential customers to close a sale
by telephone, at meetings, in retail outlets and by knocking on doors
highly priced, low volume and highly technical
products rely heavily on personal selling
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benefits of personal selling
high customer attention
messages is customised
interactivity
persuasive impact
potential for development of relationship
adaptable
opportunity to close the sale
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drawbacks of personal selling
high costs
labour intensive
expensive
can only reach a limited number of customers.
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what is public relations
those that create goodwill toward an individual, business, cause or product
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what are the main aims of public relations
-to achieve favourable publicity about the business
-to build the image and reputation of the business and its products, particularly amongst customers
-to communicate effectively with customers and other stakeholders.
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what are typical PR activities
promoting new products
enhancing public awareness
projecting a business image
promote social responsibility
projecting business as a good employer
obtain favourable product reviews
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what is pr in relation to sponsership
sponsorship takes place when a payment for an event, person, organisation is given in return some consideration of benefit.
-a specialised form of public relations
- common in world of sport
-should benefit both sides
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what is direct marketing
promotional material directed through mail, email, social media or phone to individuals or businesses.
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why is direct marketing used
-allows businesses to generate a specific response from targeted groups of customers
-allows a business to focus on several marketing objectives
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